EXPLANATORY STATEMENT
Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2018
Subsection 50(1) of the Australian Prudential Regulation Authority Act 1998 (APRA Act) requires the Minister, by legislative instrument, to make a determination on the amount of levy (as defined under subsection 50(6) of the APRA Act) 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
• governing and maintaining the superannuation transaction network.
This can be done either by specifying one retainable amount (under paragraph 50(1)(a) of the APRA Act) or by specifying a retainable amount for each class of levy (under paragraph 50(1)(b) of the APRA Act).
This determination commences on 1 July 2018 and relates to the 2018‑19 financial year. The Australian Prudential Regulation Authority (Commonwealth Costs) Determination 2017 (Revised) is repealed upon commencement of this determination. Consistent with section 7 of the Acts Interpretation Act 1901, any obligation or liability incurred in previous financial years remains valid.
The determination commences, or is taken to have commenced, before it is registered. However, commencement prior to registration does not disadvantageously affect the rights of any person as at the date of registration or impose any liability on any person in respect of anything done or omitted to be done before the date of registration. Commencement prior to registration is therefore consistent with subsections 12(2) and 12(3) of the Legislation Act 2003.
This determination states the amount of levy revenue for 2018-19 that is allocated under each of the various levy imposition Acts to:
• the Australian Securities and Investments Commission (ASIC);
• the Australian Taxation Office (ATO);
• the Australian Competition and Consumer Commission (ACCC); and
• The Gateway Network Governance Body Ltd (GNGB).
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; to ACCC in investigating specific competition issues in Australia’s financial system; and to GNGB in promoting the efficiency and effectiveness of the Superannuation Transaction Network. The funds will contribute towards the costs of ASIC, ATO, ACCC and GNGB undertaking those functions.
The following table details the amounts allocated to activities undertaken by ASIC, ATO, ACCC and GNGB under each of the financial sector levy imposition Acts.
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 | $13 800 000 | $10 600 000 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 $3 200 000 of the amount is for the Australian Competition and Consumer Commission to investigate specific competition issues in Australia's financial system |
2 | Amount of the levy money payable to the Commonwealth under the General Insurance Supervisory Levy Imposition Act 1998 | $4 800 000 | 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 | $3 600 000 | 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 | $49 600 000 | $16 500 000 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 $31 000 000 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 |
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| $600 000 of the amount is for the Gateway Network Governance Body Ltd measure $1 500 000 of the amount is for prior year under-collection |
The finance sector has been consulted on the 2018‑19 supervisory levies, through a Treasury and APRA discussion paper released on the Treasury website on 11 May 2018. Six submissions were received during the consultation process, none of which related specifically to the methodology for this determination.
The Office of Best Practice Regulation has previously advised that a Regulatory Impact Statement is not required as supervisory levies are considered machinery‑of‑government in nature.
This determination is a legislative instrument for the purposes of the Legislation Act 2003.
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 2018
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 requires 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
• governing and maintaining the superannuation transactions network.
This can be done either by specifying one retainable amount or by specifying a retainable amount for each class of levy.
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.