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Every SMSF pays an annual supervisory levy to the Australian Taxation Office (ATO), which regulates SMSFs. It’s $259 for most funds, but new funds generally pay twice that in their first year because of the way the levy is charged. The government has also proposed increasing it.
How much is the ATO levy?
The annual SMSF levy is $259. It has remained unchanged at this level since the 2014–15 financial year.
The levy is charged in advance. The levy you pay through each annual return covers the following financial year, not the year the return is for.
That’s why a newly registered SMSF that continues into the following financial year generally pays $518 through its first annual return. That’s $259 for the year in which it registers, plus $259 for the following year. This applies even if your fund was only registered part-way through its first financial year. A new fund that is wound up in the same year it registers pays $259.
An SMSF is classed as being legally established (and therefore must be registered with the ATO) in the year in which it first has assets set aside for its members. That is, when your fund first receives member contributions or rollovers.
At the other end, an existing fund has already paid the levy for the year it’s wound up, so no levy is generally payable through its final annual return.
| Fund’s situation in the year covered by the annual return | Levy payable through that return |
|---|---|
| Newly registered and continuing | $518 |
| Existing and continuing | $259 |
| Existing and wound up | Nil |
| Newly registered and wound up in the same year | $259 |
Source: ATO, Self-managed superannuation fund annual return instructions
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Find out moreProposed changes to the levy
In August 2026 the government proposed increasing the levy from $259 to $295, the first increase since 2014–15. It also proposed changing when new funds pay their first-year levy, so it’s collected when the fund is set up rather than with its first annual return.
These changes are part of a wider package of measures for people setting up an SMSF. A start date hasn’t been announced, the details are still to be confirmed and the changes aren’t law yet.
How and when is it charged?
The levy is calculated in your fund’s annual return and paid by the fund’s payment due date. SMSF trustees are responsible for lodging an annual return on behalf of their fund as part of their compliance obligations.
The levy is added to any tax your SMSF owes (or deducted from any refund it’s entitled to). It’s payable even if your fund has no tax to pay.
If you lodge the return yourself, it’s generally due by 28 February the following financial year. New funds lodging their first return themselves, and funds with an overdue return, must lodge by 31 October and pay by 1 December. If you use a registered tax agent, they’ll give you the due dates.
Lodging or paying late can attract penalties, so it’s worth knowing your fund’s due dates.
Why is the levy charged?
Money raised by the levy helps the ATO to:
- Educate SMSF members and trustees about their legal compliance obligations
- Regulate the sector. SMSFs must be audited each year by an ASIC-registered auditor, who is then required to report certain contraventions to the ATO. The ATO can impose financial and non-financial penalties for breaches of superannuation law.
Is the ATO SMSF supervisory levy tax deductible?
Yes. The levy is tax deductible to your SMSF, as are the costs of preparing and lodging the fund’s annual return. The deduction belongs to the fund, not to members personally.
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