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  • Trends and latest findings

    The net tax gap for small super funds has increased over the estimated years, from 1.6% in 2014–15 to 2.5% in 2017–18.

    The gap is mostly the result of errors in reporting:

    • contributions
    • net capital gains
    • trust distributions
    • exempt current pension income.

    However, when extrapolated over a large population the result produces a relatively small tax gap.

    The non-lodging population contributes to the gap with the percentage of total funds not lodging a SMSF annual return continuing to increase each year.

    Table 1 shows the dollar values at the various elements involved in calculating the gap for 2014–15 to 2017–18. The gross and net gaps are also shown as percentages.

    Table 1: Income tax gap – small super funds, 2014–15 to 2016–17

    Element

    2014–15

    2015–16

    2016–17

    2017–18

    Population

    519,977

    530,389

    538,718

    526,460

    Gross gap ($m)

    36

    36

    54

    53

    Adjustments ($m)

    12

    12

    18

    12

    Net gap ($m)

    24

    24

    36

    41

    Tax paid ($m)

    1,487

    1,328

    1,433

    1,647

    Theoretical liability

    1,512

    1,351

    1,468

    1,689

    Gross gap (%)

    2.4

    2.6

    3.7

    3.2

    Net gap (%)

    1.6

    1.8

    2.4

    2.5

    Figure 1 shows the gross gap and net gap as a percentage over the same period.

    Figure 1: Gross and net tax gap percentage – small super funds, 2014–15 to 2017–18

    Figure 1: Graph showing the gross and net gap in percentage terms as outlined in Table 1.

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      Last modified: 19 Oct 2020QC 56336