It appears that in a Super Fund, when there is no assessable income, (in my case due to exempt pension income) that the supervisory levy doesn’t appear as deductible. I note that in the Knowledge Centre it does state: ‘Note: Where the fund has no assessable income Simple Fund 360 will automatically treat the levy as non-deductible.’ However shouldn’t this be deductible even if there is no assessable income?
It can’t be deductible if there is no income to offset it. From Guide to the ATO SMSF supervisory levy
"The levy is added to the tax payable by the SMSF for member contributions and fund earnings (or deducted from any tax refund that an SMSF may be entitled to receive). It’s important to note that the levy is payable even if the SMSF has no tax payable on member contributions or fund earnings."
So if there is no assessable income, but there are refundable franking credits, the total refund will be reduced by the amount of the ATO super levy. If there is no income, and no refundable franking credits, the $259 super levy is still payable on lodgement of the ITR.
SCruick so a you saying we should take up a tax loss carried forward for the amount of the levy every year?
I think the answer is that (in the case of ECPI) if you carried forward the loss of $259, it would first be offset against exempt income (which will typically be more than the levy). So you lose the benefit of the loss.