Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Determination 2012 (No. 1)

Overview

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Determination 2012 (No. 1) was enacted to provide clarity and certainty for entities liable to pay the supervisory cost recovery levy as part of the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Act 2011. This Act was introduced to give effect to the 2010-11 Budget announcement that AUSTRAC would begin recovering the costs of its supervisory activities from 1 July 2011. The levy is payable by a leviable entity, which is a reporting entity that has provided a designated service within the previous financial year and is enrolled on the designated 'census day'. The Determination specifies the census day for the 2011-12 financial year as 10 February 2012, providing a clear reference point for entities to determine their liability for the levy. This legislative instrument, created under the authority of the AUSTRAC CEO, 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, as affirmed by the Statement of Compatibility included in the Explanatory Statement.

Scope and Application

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Determination 2012 (No. 1) applies to entities designated as 'leviable entities' under the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Act 2011. These are reporting entities that have provided a designated service within the previous financial year and are or must have been enrolled on the 'census day', which for the 2011-12 financial year is 10 February 2012. The act imposes a levy on these leviable entities, making them responsible for paying the supervisory cost recovery levy, as outlined in conjunction with the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy (Collection) Act 2011. The scope of the act is national, given its origin in Commonwealth legislation, and its application extends to all entities within Australia that meet the criteria for being a leviable entity. The act does not specify any exclusions or exemptions but relies on mandatory enrolment to ensure that only relevant entities are subject to the levy. The AUSTRAC CEO's role in determining the census day through legislative instruments allows for flexibility in setting these dates for future financial years.

Key Provisions

The Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Determination 2012 (No. 1) sets out the details for the collection of the supervisory cost recovery levy under the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Act 2011. According to section 1 of the Explanatory Statement, this levy is intended to enable AUSTRAC to recover the costs associated with its supervisory activities, as announced in the 2010-11 Budget. Section 3 of the Determination specifies that the census day for the 2011-12 financial year is 10 February 2012, a date determined by the AUSTRAC CEO. This date is crucial as it is the reference point for establishing the liability of reporting entities to pay the levy. The obligation to enroll in the levy system falls on entities that have provided designated services in the previous financial year and must be enrolled by the census day to ensure accurate calculation of their levy liabilities. The Act imposes specific obligations on entities subject to the levy. As per section 7 of the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy (Collection) Act 2011, leviable entities must enrol in the levy system and remain enrolled on the census day to ascertain their levy liabilities. This enrolment process is mandatory and ensures that AUSTRAC can accurately determine the amount of levy payable by each entity. The entities must also comply with any additional requirements or reporting obligations set out in the legislative instruments governing the levy. This includes providing any necessary information or documentation to AUSTRAC to facilitate the accurate calculation and collection of the levy. Breach of the obligations imposed by the Act can lead to various consequences. While the Explanatory Statement does not detail specific penalties or offences, it is understood that failure to comply with the enrolment requirements or other obligations under the Act may result in legal action by AUSTRAC. This could include the imposition of fines or other penalties as stipulated in the relevant legislative instruments. Additionally, non-compliance may result in civil or criminal consequences, depending on the nature and severity of the breach. The maximum penalties for such breaches are not explicitly stated in the provided text but are typically outlined in the relevant Acts or regulations.