Overview

The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2010 was introduced to specify the amount of levy revenue to be allocated to the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO) for the 2010-11 financial year. This determination was enacted under subsection 50(1) of the Australian Prudential Regulation Authority Act 1998, which empowers the Minister to determine the retainable amount of levy revenue needed to cover the Commonwealth's costs for market integrity and consumer protection functions related to prudentially regulated institutions. The enactment body was the Minister for Finance, and the policy objective was to ensure that the necessary funds were allocated to ASIC and the ATO to effectively undertake these functions on behalf of the Commonwealth. The determination revoked the Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2009 upon its commencement on 1 July 2010.

Scope and Application

The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2010 applies to the allocation of funds from various financial sector levies to cover the Commonwealth’s costs in providing market integrity and consumer protection functions for prudentially regulated institutions. This determination, made under the authority of the Australian Prudential Regulation Authority Act 1998, specifies the retainable amounts from these levies to be allocated to the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO) for the 2010-11 financial year. The determination applies nationally and revokes the previous year's determination upon its commencement on 1 July 2010. The funds allocated from these levies, as detailed in the accompanying table, are intended to support the specified activities of ASIC and the ATO in their roles of regulating and protecting consumers within the financial sector. This includes the allocation of funds from the various financial sector levy imposition Acts such as the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998 and the Superannuation Supervisory Levy Imposition Act 1998, among others. The allocation process was informed by consultations with the finance sector as outlined in the Treasury and Australian Prudential Regulation Authority Consultation Paper released on 27 May 2010. This determination is considered a legislative instrument under the Legislative Instruments Act 2003.

Key Provisions

The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2010 (sections 1 and 3) specifies the allocation of levy revenue to cover the costs incurred by the Commonwealth for market integrity and consumer protection functions related to prudentially regulated institutions. This determination applies to the 2010-11 financial year and revokes the previous determination from 2009. The amounts allocated to the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO) under various financial sector levy imposition Acts are detailed in the determination. These funds support the activities of ASIC and the ATO in performing these functions on behalf of the Commonwealth. The obligations and requirements imposed by this Act are primarily concerned with the allocation and distribution of levy revenues among the relevant authorities. Section 3 of the Determination outlines the specific amounts allocated to ASIC and the ATO under each of the financial sector levy imposition Acts. This includes detailed allocations from the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998, the General Insurance Supervisory Levy Imposition Act 1998, and the Superannuation Supervisory Levy Imposition Act 1998, among others. These allocations ensure that the necessary funds are directed towards supporting the regulatory activities of ASIC and the ATO. The consequences of breaching this legislation are not explicitly detailed within the text provided. However, as a legislative instrument under the Legislative Instruments Act 2003, any non-compliance with the provisions of the Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2010 could potentially lead to civil or criminal penalties. Given the nature of the Act and its role in funding regulatory activities, failure to adhere to the specified allocations and obligations might result in legal ramifications, including financial penalties or other enforcement actions as deemed appropriate by the relevant authorities. The exact penalties would depend on the specific nature of the breach and the discretion of the courts or regulatory bodies.