Overview

The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2008 was enacted to provide a mechanism for the imposition of a supervisory levy on authorised deposit-taking institutions (ADIs) for the financial year 2008-09. This determination was made under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 by the Minister for Finance and Deregulation, in accordance with section 7(3) of that Act. The primary purpose of this legislative instrument is to ensure that ADIs contribute to the cost of their supervision, thereby supporting the financial stability and integrity of the banking system. The determination sets out the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating an institution’s asset value for levy purposes. The levy rates were established following consultation with the finance sector, reflecting the need to balance the costs of supervision with the stability and reliability of the ADIs.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2008 applies to authorised deposit-taking institutions, which include both domestic and foreign entities that are authorised to accept deposits from the public. This determination, which commenced on 1 July 2008 and pertains to the 2008-09 financial year, revokes the previous Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2007. The determination sets out the methodology for calculating the supervisory levy on these institutions, distinguishing between restricted and unrestricted components. For foreign authorised deposit-taking institutions and specialist credit card institutions, the restricted levy is calculated at 0.00189 per cent of their assets, subject to a minimum of $470 and a maximum of $700,000, while the unrestricted levy is set at 0.000447 per cent of assets. For all other authorised deposit-taking institutions, the restricted levy is calculated at 0.00377 per cent of assets, subject to a minimum of $470 and a maximum of $1,400,000, with the unrestricted levy remaining at 0.000447 per cent of assets. This determination is made under the authority granted by the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 and is considered a legislative instrument under the Legislative Instruments Act 2003.

Key Provisions

The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2008 (subsection 7(3) of the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Act 1998) outlines the specific details for the levy on authorised deposit‑taking institutions for the 2008‑09 financial year. This determination sets out the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating an institution's asset value. The levy for foreign authorised deposit‑taking institutions and specialist credit card institutions is calculated at 0.00189 per cent of their assets, with a minimum levy of $470 and a maximum of $700,000 for the restricted component, and 0.000447 per cent of their assets for the unrestricted component. For all other authorised deposit‑taking institutions, the restricted component of the levy is 0.00377 per cent of assets, with a minimum of $470 and a maximum of $1,400,000, while the unrestricted component remains at 0.000447 per cent of assets. The Act imposes several obligations and requirements on the parties it governs. Authorised deposit‑taking institutions must calculate their levy based on the specified percentages and asset values as outlined in the determination. They must also ensure compliance with the minimum and maximum levy amounts for the restricted levy. Additionally, institutions must report their asset values accurately to the relevant authorities for the levy calculation. Failure to comply with these requirements could result in legal consequences. The determination also sets out the consequences for non‑compliance. While the determination itself does not specify particular offences or penalties, breaches of the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Act 1998 may result in civil or criminal penalties as prescribed by other sections of the Act or related legislation. These could include fines and other enforcement actions by the relevant authorities. The specific penalties would depend on the nature and severity of the breach, and could be subject to review and adjustment by the courts or regulatory bodies.