Authorised Deposit‑taking Institutions Supervisory Levy Imposition Amendment Act 2020
No. 55, 2020
An Act to amend the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedules
Schedule 1—Amendments
Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998
Authorised Deposit-taking Institutions Supervisory Levy Imposition Amendment Act 2020
No. 55, 2020
An Act to amend the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998, and for related purposes
[Assented to 19 June 2020]
The Parliament of Australia enacts:
1 Short title
This Act is the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Amendment Act 2020.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this Act | The day after this Act receives the Royal Assent. | 20 June 2020 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998
1 Section 5 (paragraph (a) of the definition of statutory upper limit)
Repeal the paragraph, substitute:
(a) for the financial year commencing on 1 July 2020—$10,000,000; or
2 Section 5 (paragraph (b) of the definition of statutory upper limit)
Omit “in relation to”, substitute “for”.
3 Subsection 7(4)
Omit “maximum restricted levy amount must not exceed the statutory upper limit as at the time when the determination is made”, substitute “maximum restricted levy amount for a financial year must not exceed the statutory upper limit for the financial year”.
4 Subsection 8(1)
Repeal the subsection, substitute:
(1) The indexation factor for a financial year is the number worked out by:
(a) ascertaining the index number for the most recent quarter for which the Australian Statistician has published an index number, as at the start of the day on which the Treasurer makes the first determination under subsection 7(3) of an amount or percentage for the financial year; and
(b) dividing that index number by the index number for the quarter 12 months before the quarter mentioned in paragraph (a); and
(c) adding 0.030 to the number worked out under paragraph (b).
5 Subsection 8(3)
Omit “paragraph (1)(a)”, substitute “subsection (1)”.
6 Application of amendments
The amendments made by this Schedule apply in relation to a determination under subsection 7(3) of the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998 that is made on or after the commencement of this Act.
[Minister’s second reading speech made in—
House of Representatives on 13 May 2020
Senate on 12 June 2020]
Overview
The Authorised Deposit-taking Institutions Supervisory Levy Imposition Amendment Act 2020 was enacted by the Parliament of Australia to amend the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998. This legislation was introduced to address certain gaps and improve the regulatory framework concerning the supervisory levy imposed on authorised deposit-taking institutions. The Act received Royal Assent on 19 June 2020 and commenced on 20 June 2020. Its primary objective is to modify the statutory upper limit for the supervisory levy, adjust the indexation factor used to determine the levy, and refine the calculation and application of the levy to ensure it remains effective and relevant in the financial sector. The amendments outlined in this Act are intended to apply to any determinations made under the original Act on or after the commencement date of this amending legislation.
Scope and Application
The Authorised Deposit-taking Institutions Supervisory Levy Imposition Amendment Act 2020 amends the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998 to alter certain aspects of the supervisory levy imposed on authorised deposit-taking institutions. This Act applies to the institutions that are authorised deposit-taking institutions as defined in the original Act, and its provisions extend to the Commonwealth of Australia. The amendments made by this Act include changes to the definition of the statutory upper limit, adjustments to the maximum restricted levy amount, and modifications to the indexation factor used for determining the levy. Notably, the changes are effective for financial years commencing on or after 1 July 2020. The amendments are applied to any determinations made under the original Act on or after the commencement of this Act, ensuring that the new provisions are prospectively effective. There are no exclusions or exemptions specified in the text, and the Act itself does not extend or restrict its application through subordinate instruments; however, the original Act may provide for such mechanisms.
Key Provisions
The Authorised Deposit-taking Institutions Supervisory Levy Imposition Amendment Act 2020 amends the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998. Key provisions include the repeal and substitution of section 5, paragraph (a) of the definition of the statutory upper limit (section 1), the omission of "in relation to" and substitution with "for" in section 5, paragraph (b) of the definition of the statutory upper limit (section 2), the amendment of subsection 7(4) to specify the maximum restricted levy amount for a financial year must not exceed the statutory upper limit for that financial year (section 3), and the repeal and substitution of subsection 8(1) to redefine the indexation factor for a financial year (section 4). Additionally, subsection 8(3) is amended by omitting "paragraph(1)(a)" and substituting "subsection(1)" (section 5). The application of these amendments applies to determinations made under subsection 7(3) of the 1998 Act on or after the commencement of this Act (section 6).
The Act imposes specific obligations on the entities it governs, including ensuring that the maximum restricted levy amount for any financial year does not exceed the statutory upper limit for that year. The statutory upper limit is defined by the new provisions in section 5, paragraph (a) and (b), which require entities to adhere to the updated definition. Additionally, the new calculation method for the indexation factor, as outlined in subsection 8(1), must be applied in any relevant financial year. The application of these amendments means that any determinations made under subsection 7(3) of the 1998 Act on or after the commencement date of this Act must comply with the updated statutory framework.
The Act does not explicitly state any offences or penalties for breaches. However, the amendments and the specific requirements for compliance suggest that failure to adhere to the updated statutory upper limits, maximum restricted levy amounts, or the revised indexation factor calculation could result in non-compliance with the Act. While the specific consequences of such non-compliance are not detailed within the Act, they may be subject to administrative or regulatory actions by the relevant authorities, including potential financial penalties or other enforcement measures as prescribed by the 1998 Act or other related legislation.