EXPLANATORY STATEMENT
Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2012
Subsection 50(1) of the Australian Prudential Regulation Authority Act 1998 (APRA Act) enables the Minister to make a determination on the amount of levy (as defined under subsection 50(6)) that is to be available to cover the costs to the Commonwealth of providing market integrity and consumer protection functions for prudentially regulated institutions, administering the function of making determinations about the release on compassionate grounds of benefits that are in a superannuation entity or retirement savings account and implementing the SuperStream measures. This can be done either by specifying one retainable amount or by specifying a retainable amount for each class of levy. Under subsection 50(1A) the Minister may also specify the proportion of levy revenue paid to the Australian Prudential Regulation Authority (APRA) that is to be credited to the APRA Special Account.
This determination commences on the day of registration and relates to the 2012‑13 financial year. The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2011 and Australian Prudential Regulation Authority (Commonwealth Costs) Amendment Determination 2011 is revoked on 1 July 2012. The retrospective application does not cause detriment to any person or contravene subsection 12(2) of the Legislative Instruments Act 2003 (LIA).
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), Department of Human Services (DHS) and for the implementation of the SuperStream measures in 2012‑13. 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; and DHS in administering the function of making determinations about the release on compassionate grounds of benefits that are in a superannuation entity or retirement savings account. They will contribute towards the costs of ASIC, ATO and DHS undertaking those functions.
The following table details the amounts allocated to activities undertaken by ASIC, ATO, DHS and the implementation of the SuperStream measures under each of the financial sector levy imposition Acts.
Legislation | Allocated to ASIC ($) | Allocated to ATO ($) | Allocated to DHS ($) | Allocated to implementing the SuperStream measures ($) |
Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998 | 3,400,000 | _ | _ | _ |
General Insurance Supervisory Levy Imposition Act 1998 | 2,900,000 | _ | _ | _ |
Life Insurance Supervisory Levy Imposition Act 1998 | 2,300,000 | _ | _ | _ |
Superannuation Supervisory Levy Imposition Act 1998 | 12,100,000 | 7,100,000 | 4,200,000 | 121,500,000 |
Total | 20,700,000 | 7,100,000 | 4,200,000 | 121,500,000 |
This determination states that under subsection 50(1A) of the APRA Act, the proportion of amounts of levy money paid to Australian Prudential Regulation Authority (APRA), on behalf of the Commonwealth for 2012-13, that is to be credited to the APRA Special Account on an ongoing basis is 42 per cent.
ASIC, ATO and DHS have been consulted on the amounts of levy revenue allocated.
The finance sector has been consulted on the 2012‑13 supervisory levies, through a Treasury and APRA discussion paper released on the Treasury website on 1 June 2012.
The Office of Best Practice Regulation has also been consulted on the 2012-13 supervisory levies and has advised that a Regulation Impact Statement is not required as the proposals are machinery‑of‑government in nature. As was noted in the 2012-13 supervisory levies discussion paper, APRA has a regular review process to monitor the implementation of the levies. In 2012‑13, the current levy review process will be merged with the development of a comprehensive Cost Recovery Impact Statement (CRIS). Industry will continue to be consulted on the development of the CRIS.
This determination is a legislative instrument for the purposes of the LIA.
A statement of compatibility with human rights for the purposes of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is set out in Attachment 1.
Attachment 1
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2012
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
Subsection 50(1) of the Australian Prudential Regulation Authority Act 1998 enables the Minister to make a determination on the amount of levy (as defined under subsection 50(6)) that is to be available to cover the costs to the Commonwealth of:
• providing market integrity and consumer protection functions for prudentially regulated institutions;
• administering the function of making determinations about the release on compassionate grounds of benefits that are in a superannuation entity or retirement savings account; and
• implementing the SuperStream measures.
This can be done either by specifying one retainable amount or by specifying a retainable amount for each class of levy.
Under subsection 50(1A) the Minister may also specify the proportion of levy revenue paid to the Australian Prudential Regulation Authority (APRA) that is to be credited to the APRA Special Account.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.