Superannuation associations have come out in support of the Government’s $55 million levy to assist victims of the Trio Capital collapse, but question the fairness of the proposed calculation.
Earlier this month, the Government announced the levy on regulated funds would be calculated by multiplying the rate of 0.0001977 by a fund’s assets, with a maximum levy set at $500,000.
Both the Association of Superannuation Funds of Australia (ASFA) and the Australian Institution of Superannuation Trustees (AIST) have queried this calculation, stating it creates inequity between larger and smaller funds.
In a submission to the Government, ASFA stated that very large funds would pay comparatively less than smaller balance funds, which would impact greatly on members’ balances.
“A fund with $5 billion in funds under management would have their levy (calculated as $988,500) capped at $500,000. If this fund has 750,000 members, the levy payable by each member would be $0.67.
“In contrast, a fund with $1 billion in funds under management would be subject to a total levy of $197,700. If this fund has 15,000 members, the levy payable by each member would be $13.18,” said the submission.
ASFA stated that greater equity could be reached by increasing the maximum levy and decreasing the applicable rate, so as to spread the burden across fund members.
One thing the associations disagreed on, however, was the amount of time given to funds to pay the levy.
AIST said the Government’s proposed time limit of 28 days from the commencement date of the regulations would be enough time for funds to meet the payment.
ASFA stated it believed the payment date should be set at a minimum of six months from the start of the regulations.
