Overview

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2007 was enacted to address the need for a structured and transparent method for imposing a supervisory levy on authorised deposit-taking institutions in Australia. This legislation was introduced by the Parliament of Australia in accordance with the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998, which established the framework for levying such institutions to cover the costs associated with their supervision. The policy objective of this determination is to ensure that authorised deposit-taking institutions contribute towards their oversight expenses in a fair and consistent manner, thereby supporting the stability and integrity of the financial system. This determination sets forth the specific percentages and limits for the restricted and unrestricted components of the levy for the 2007-08 financial year, following consultations with relevant stakeholders as outlined in a discussion paper released by the Treasury and the Australian Prudential Regulation Authority.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2007 applies to authorised deposit-taking institutions and governs the levy imposed under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 for the 2007-08 financial year. This determination establishes the methodology for calculating the levy for different classes of authorised deposit-taking institutions, including foreign authorised deposit-taking institutions and specialist credit card institutions, as well as other authorised deposit-taking institutions. The levy is calculated based on a percentage of the institution’s assets, with specific percentages and thresholds for restricted and unrestricted components outlined in the determination. The legislation is applicable on a national level, covering all authorised deposit-taking institutions within Australia, and supersedes the previous determination for the financial year in question. This determination also revokes the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2006, effective from its commencement date. The calculation of the levy is further defined by subordinate instruments and the determination takes into account consultation with the finance sector as outlined in a Treasury and Australian Prudential Regulation Authority discussion paper.

Key Provisions

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2007 (F2007L02068) details the specific levy imposed on authorised deposit-taking institutions for the 2007-08 financial year, pursuant to the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998 (section 7(3)). This determination sets out the levy rates and thresholds for both restricted and unrestricted components of the levy. For foreign authorised deposit-taking institutions and specialist credit card institutions, the restricted component of the levy is set at 0.00184 per cent of their assets, with a minimum levy of $470 and a maximum of $700,000 (subsection 7(3)(a)). The unrestricted component is calculated at 0.000450 per cent of their assets. For all other authorised deposit-taking institutions, the restricted component is set at 0.00367 per cent of their assets, with a minimum levy of $470 and a maximum of $1,400,000, while the unrestricted component remains at 0.000450 per cent of their assets. The determination imposes specific obligations on authorised deposit-taking institutions, requiring them to calculate their levy liabilities based on the asset values as specified in the determination (subsection 7(3)(d)). It is the responsibility of these institutions to ensure their assets are correctly valued and the appropriate levy is calculated and paid to the relevant authority. The determination also requires institutions to maintain accurate records of their assets and levy calculations, ensuring compliance with the set thresholds and percentages. The institutions must report these figures to the Australian Prudential Regulation Authority and Treasury as part of their regulatory obligations. Breach of the provisions outlined in this determination can lead to significant legal and financial consequences. Institutions failing to comply with the levy requirements may be subject to penalties, fines, and legal action under the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998. The specific penalties for non-compliance are not detailed in the determination itself but are governed by the broader legislative framework. Institutions that underpay or fail to pay their levies on time may face civil and criminal penalties, which can include substantial fines and potential legal sanctions. The severity of the penalties underscores the importance of strict adherence to the levy requirements.