EXPLANATORY STATEMENT
Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2009
Subsection 50(1) of the Australian Prudential Regulation Authority Act 1998 enables the Minister to make a determination on the amount of levy revenue that is to be available to cover the costs to the Commonwealth of providing market integrity and consumer protection functions for prudentially regulated institutions. This can be done either by specifying one retainable amount or by specifying a retainable amount for each class of levy.
This determination commences on 1 July 2009 and relates to the 2009‑10 financial year. The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2008 is revoked upon commencement of this determination.
This determination states the amount of levy revenue allocated under each of the various levy imposition Acts to the Australian Securities and Investments Commission (ASIC) and to the Australian Taxation Office (ATO) in 2009‑10. These funds are allocated to ASIC and ATO activities in so far as those agencies provide, on behalf of the Commonwealth, relevant market integrity and consumer protection functions for prudentially regulated institutions. They will contribute towards the costs of ASIC and the ATO undertaking those functions.
The following table details the amounts allocated to activities undertaken by ASIC and the ATO under each of the financial sector levy imposition Acts.
Legislation | Allocated to ASIC ($) | Allocated to ATO ($) |
Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998 | 3,600,000 | 0 |
Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998 | 0 | 0 |
General Insurance Supervisory Levy Imposition Act 1998 | 3,200,000 | 0 |
Life Insurance Supervisory Levy Imposition Act 1998 | 2,200,000 | 0 |
Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 | 0 | 0 |
Superannuation Supervisory Levy Imposition Act 1998 | 9,500,000 | 7,300,000 |
Total | 18,500,000 | 7,300,000 |
The finance sector has been consulted on the 2009‑10 supervisory levies, including the allocation of costs to ASIC and the ATO, through a Treasury and Australian Prudential Regulation Authority Consultation Paper released on 10 June 2009.
This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.