Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011
as amended
made under paragraph 50 (1) (b) of the
Australian Prudential Regulation Authority Act 1998
This compilation was prepared on 9 January 2012
taking into account amendments up to Australian Prudential Regulation Authority (Commonwealth Costs) Amendment Determination 2011 (No. 1)
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
Contents
1 Name of Determination [see Note 1]
2 Commencement [see Note 1]
3 Revocation
4 Definitions
5 Commonwealth costs
Notes
1 Name of Determination [see Note 1]
This Determination is the Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011.
2 Commencement [see Note 1]
This Determination commences on the day after it is registered.
3 Revocation
The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2010 is revoked on 1 July 2011.
4 Definitions
In this Determination:
2011–2012 financial year means the financial year commencing on 1 July 2011.
Act means the Australian Prudential Regulation Authority Act 1998.
levy money has the meaning given by subsection 50 (6) of the Act.
5 Commonwealth costs
For paragraph 50 (1) (b) of the Act, the table sets out the amount of levy money payable to the Commonwealth in respect of the relevant class of levy for the 2011–2012 financial year, to cover the costs to the Commonwealth of:
(a) providing market integrity and consumer protection functions for prudentially regulated institutions; and
(b) administering the function of making determinations about the release, on compassionate grounds, of benefits that are in a superannuation entity.
Item | Matter | Amount ($) | Purpose of amount |
1 | Amount of the levy money payable to the Commonwealth under the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998 | 4 100 000 | For the Australian Securities and Investments Commission, in so far as it provides, on behalf of the Commonwealth, market integrity and consumer protection functions for prudentially regulated institutions |
2 | Amount of the levy money payable to the Commonwealth under the General Insurance Supervisory Levy Imposition Act 1998 | 3 700 000 | For the Australian Securities and Investments Commission, in so far as it provides, on behalf of the Commonwealth, market integrity and consumer protection functions for prudentially regulated institutions |
3 | Amount of the levy money payable to the Commonwealth under the Life Insurance Supervisory Levy Imposition Act 1998 | 2 100 000 | For the Australian Securities and Investments Commission, in so far as it provides, on behalf of the Commonwealth, market integrity and consumer protection functions for prudentially regulated institutions |
4 | Amount of the levy money payable to the Commonwealth under the Superannuation Supervisory Levy Imposition Act 1998 | 20 710 000 | $10 800 000 of the amount is for the Australian Securities and Investments Commission, in so far as it provides, on behalf of the Commonwealth, market integrity and consumer protection functions for prudentially regulated institutions $7 200 000 of the amount is for the Australian Taxation Office, in so far as it provides, on behalf of the Commonwealth, market integrity and consumer protection functions for prudentially regulated institutions |
| | | $2 710 000 of the amount is for the Department of Human Services, in so far as the Chief Executive Medicare administers, on behalf of the Commonwealth, the function of making determinations about the release, on compassionate grounds, of benefits that are in a superannuation entity |
Notes to the Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011
Note 1
The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011 (in force under paragraph 50 (1) (b) of the Australian Prudential Regulation Authority Act 1998) as shown in this compilation is amended as indicated in the Tables below.
Table of Instruments
Title | Date of FRLI registration | Date of
commencement | Application, saving or
transitional provisions |
Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011 | 29 June 2011 (see F2011L01329) | 30 June 2011 | |
Australian Prudential Regulation Authority (Commonwealth Costs) Amendment Determination 2011 (No. 1) | 21 Dec 2011 (see F2011L02777) | 22 Dec 2011 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 5................. | am. 2011 No. 1 |
Overview
The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011, enacted under the Australian Prudential Regulation Authority Act 1998, was introduced to address the financial costs incurred by the Commonwealth in relation to the regulatory functions of the Australian Prudential Regulation Authority (APRA). This legislative instrument was made by the Australian Government, specifically the Australian Prudential Regulation Authority, to ensure that the financial burden associated with providing market integrity and consumer protection functions for prudentially regulated institutions, as well as administering the release of benefits on compassionate grounds for superannuation entities, is properly allocated. The policy objective of this determination is to establish the amounts of levy money payable by APRA to the Commonwealth for the financial year 2011–2012 to cover these specified functions.
Scope and Application
The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011 applies to the costs associated with providing market integrity and consumer protection functions for prudentially regulated institutions and administering the function of making determinations about the release, on compassionate grounds, of benefits that are in a superannuation entity. The determination outlines the amount of levy money payable to the Commonwealth in respect of the relevant class of levy for the 2011-2012 financial year. This determination is made under paragraph 50(1)(b) of the Australian Prudential Regulation Authority Act 1998 and applies to the Commonwealth. The costs are intended to cover expenses incurred by the Australian Securities and Investments Commission, the Australian Taxation Office, and the Department of Human Services. The costs are divided into four categories, each corresponding to a different type of levy: Authorised Deposit-taking Institutions Supervisory Levy, General Insurance Supervisory Levy, Life Insurance Supervisory Levy, and Superannuation Supervisory Levy. The amounts specified in the determination are intended to cover the Commonwealth's costs for providing market integrity and consumer protection functions for prudentially regulated institutions and administering the function of making determinations about the release, on compassionate grounds, of benefits that are in a superannuation entity. The determination revokes the Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2010 on 1 July 2011.
Key Provisions
The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011, made under the Australian Prudential Regulation Authority Act 1998, specifies the levy money payable to the Commonwealth for the 2011–2012 financial year. Section 5 of the Determination sets out the amounts payable under various supervisory levy imposition acts, which cover the costs of providing market integrity and consumer protection functions for prudentially regulated institutions, as well as the administration of compassionate release of benefits from superannuation entities. For example, $4,100,000 is payable under the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998, and $20,710,000 under the Superannuation Supervisory Levy Imposition Act 1998, with different portions allocated to the Australian Securities and Investments Commission, the Australian Taxation Office, and the Department of Human Services.
The obligations imposed by this Determination primarily involve the payment of specified amounts of levy money to the Commonwealth, as outlined in the table within section 5. These payments are to cover the Commonwealth's costs related to the oversight of prudentially regulated institutions and the administration of certain functions within superannuation entities. The entities subject to these obligations include those regulated under the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998, the General Insurance Supervisory Levy Imposition Act 1998, the Life Insurance Supervisory Levy Imposition Act 1998, and the Superannuation Supervisory Levy Imposition Act 1998.
Failure to comply with the requirements of this Determination may result in legal consequences. Although the Determination itself does not explicitly state penalties for non-compliance, non-payment of the specified levy money could be subject to penalties under the respective supervisory levy imposition acts. These penalties could include fines or other financial penalties as stipulated in the relevant legislation. Additionally, ongoing non-compliance might lead to further regulatory actions or enforcement measures by the Australian Prudential Regulation Authority.