Overview

The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2009 was enacted in 2009 to address the allocation of levy revenue to cover the Commonwealth's costs for providing market integrity and consumer protection functions for prudentially regulated institutions. This legislation was introduced by the Minister under the authority provided by subsection 50(1) of the Australian Prudential Regulation Authority Act 1998. The determination specifies the retainable amounts of levy revenue for the 2009-10 financial year, to be allocated between the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO) for their relevant activities. This allocation aims to ensure that these agencies can effectively carry out their mandated functions on behalf of the Commonwealth, thereby contributing to the oversight and stability of the financial sector. The determination was made following consultation with the finance sector, as detailed in the Treasury and Australian Prudential Regulation Authority Consultation Paper released on 10 June 2009. This legislative instrument, which revokes the 2008 determination upon its commencement, is intended to streamline the allocation of funds and support the efficient operation of ASIC and the ATO in fulfilling their roles in the prudential regulation framework.

Scope and Application

The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2009 applies to the allocation of levy revenue collected from prudentially regulated institutions to cover the Commonwealth’s costs of providing market integrity and consumer protection functions. This allocation is specified for the 2009-10 financial year and pertains to various financial sector levy imposition Acts. The funds are allocated to the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO) to support their respective roles in ensuring market integrity and consumer protection for these institutions. The determination revokes the 2008 determination upon its commencement on 1 July 2009, and it includes specific allocations under different Acts, such as the Superannuation Supervisory Levy Imposition Act 1998 and the Life Insurance Supervisory Levy Imposition Act 1998. This determination is a legislative instrument under the Legislative Instruments Act 2003.

Key Provisions

The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2009 (sections 1–4) specifies the amount of levy revenue to be retained for the financial year 2009-10 to cover the Commonwealth's costs associated with market integrity and consumer protection functions for prudentially regulated institutions. This determination outlines the allocation of funds under various levy imposition Acts to the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO), detailing how these funds will support their activities in providing these functions on behalf of the Commonwealth. The determination revokes the previous 2008 version upon its commencement on 1 July 2009. This Act imposes specific financial allocations on the levy imposition Acts listed, distributing funds to ASIC and the ATO based on the nature of their functions. For instance, the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998 allocates $3,600,000 to ASIC, while the Superannuation Supervisory Levy Imposition Act 1998 allocates $9,500,000 to ASIC and $7,300,000 to the ATO. These allocations ensure that the funds are used effectively to support the regulatory functions of ASIC and the ATO, contributing to the oversight of prudentially regulated institutions. The legislation does not explicitly outline specific obligations for the parties or entities it governs. However, it implicitly requires ASIC and the ATO to utilise the allocated funds for the specified market integrity and consumer protection functions. These entities must ensure that the funds are used efficiently and effectively to cover the costs associated with providing these functions for prudentially regulated institutions. There are no direct offences, penalties, or civil/criminal consequences mentioned in this determination for non-compliance with the financial allocations. However, failure to use the allocated funds for the intended functions could potentially lead to scrutiny and oversight by the Australian Prudential Regulation Authority, with implications for future funding allocations. The primary focus of this determination is on the financial management and allocation of funds rather than punitive measures for non-compliance.