Overview

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2005, enacted in 2005, establishes the parameters for a levy on authorised deposit-taking institutions (ADIs) as mandated by the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998. This legislation was introduced to address the need for a systematic and equitable method of funding the supervision and regulation of ADIs, ensuring the stability and integrity of the financial system. The determination, made by the Treasurer under the authority granted by the Act, outlines the specific percentages and limits for both restricted and unrestricted levies applicable to different categories of ADIs for the 2005-06 financial year. The objective of this legislation is to provide a clear framework for levy imposition that aligns with the policy goals of maintaining financial system stability and ensuring adequate supervisory resources are available. This determination revokes the previous year’s levy imposition and ensures continuity in obligations and liabilities incurred prior to its commencement.

Scope and Application

The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2005 applies to authorised deposit-taking institutions (ADIs) as defined under the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Act 1998. This includes domestic ADIs as well as foreign ADIs and specialist credit card institutions that have assets in Australia. The determination specifies the levy rates for the 2005-06 financial year, distinguishing between restricted and unrestricted components of the levy for different types of ADIs. For foreign ADIs and specialist credit card institutions, the restricted levy is set at 0.00245 percent of assets, with a minimum of $470 and a maximum of $700,000, while the unrestricted levy is set at 0.000507 percent of assets. For all other ADIs, the restricted levy is 0.00490 percent of assets, with a minimum of $470 and a maximum of $1,400,000, and the unrestricted levy remains at 0.000507 percent of assets. The determination also outlines how the asset value of an ADI is to be calculated, providing a clear framework for the imposition of the levy. The Act applies nationally within Australia and the levy calculation methodology is prescribed by the Treasurer under the Act, allowing for adjustments in subsequent years through subordinate instruments.

Key Provisions

The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2005 sets out the specific parameters for the levy imposed on authorised deposit‑taking institutions (ADIs) for the 2005-06 financial year, under the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Act 1998. Section 7(3) of the Act allows the Treasurer to determine various aspects of the levy, including the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method of calculating an ADI's asset value. For the specified financial year, the determination establishes that for foreign authorised deposit‑taking institutions and specialist credit card institutions, the restricted component of the levy is calculated at 0.00245 per cent of assets, subject to a minimum of $470 and a maximum of $700,000. The unrestricted component is calculated at 0.000507 per cent of assets. For other ADIs, the restricted component is calculated at 0.00490 per cent of assets, with the same minimum and maximum thresholds, while the unrestricted component remains at 0.000507 per cent of assets. The Act imposes clear obligations on the ADIs to ensure they calculate and remit the correct amount of the levy based on the specified percentages and asset values. The calculation methods must be applied consistently and accurately, and any levy due must be remitted to the relevant authorities by the specified deadlines. Furthermore, ADIs must maintain records and documentation to demonstrate compliance with the levy requirements. The determination also specifies that any obligations or liabilities incurred in previous financial years remain valid, ensuring continuity and clarity in levy obligations. Breach of the obligations under the Act can result in significant consequences. The Act does not explicitly state the offences, penalties, or civil/criminal consequences for non-compliance, but it is reasonable to infer that failure to accurately calculate and remit the levy could be considered a breach of statutory obligations. Typically, such breaches may result in financial penalties, interest on unpaid amounts, or even legal action to enforce compliance. The severity of the penalties would depend on the extent and duration of the non-compliance, as well as any mitigating factors considered by the relevant authorities.