EXPLANATORY STATEMENT
Authorised Deposit‑taking Institutions Supervisory Levy Imposition Determination 2009
This determination relates to a levy imposed by the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Act 1998 on authorised deposit‑taking institutions (ADIs).
This determination commences on 1 July 2009 and relates to the 2009‑10 financial year. The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2008 is revoked upon commencement of this determination. Consistent with section 50 of the Acts Interpretation Act 1901, any obligation or liability incurred in previous financial years remains valid.
Subsection 7(3) of the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998 allows the Minister to determine:
(a) the maximum restricted levy amount for each financial year;
(b) the minimum restricted levy amount for each financial year;
(c) the restricted levy percentage for each financial year;
(ca) the unrestricted levy percentage for each financial year; and
(d) how an authorised deposit‑taking institution’s asset value is to be calculated.
As a consequence of the introduction of the First Home Saver Account (FHSA) last year, there were amendments to the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998. One of the amendments establishes that the asset value must exclude an amount equal to the total balances of all FHSAs (within the meaning of the First Home Saver Accounts Act 2008) provided by the ADI. The FHSA provided by an ADI will be subject to a separate levy.
For foreign authorised deposit‑taking institutions this determination provides that the restricted component of the 2009‑10 levy will be calculated at 0.00216 per cent of assets held by the entity, subject to a minimum of $470 and a maximum of $800,000. The unrestricted component of the 2009-10 levy will be calculated at 0.000415 per cent of assets held by the entity.
For Specialist Credit Card Institutions and Providers of Purchased Payment Facilities this determination provides that the restricted component of the 2009-10 levy will be calculated at 0.00216 per cent of assets held by the entity, subject to a minimum of $10,000 and a maximum of $800,000. The unrestricted component of the 2009-10 levy will be calculated at 0.000415 per cent of assets held by the entity.
For all other authorised deposit‑taking institutions, this determination provides that the restricted component of the 2009-10 levy will be calculated at 0.00431 per cent of assets held by the entity, subject to a minimum of $470 and a maximum of $1,600,000. The unrestricted component of the 2009-10 levy will be calculated at 0.000415 per cent of assets held by the entity.
The finance sector has been consulted on the 2009‑10 supervisory levies through a Treasury and Australian Prudential Regulation Authority Consultation Paper released on 10 June 2009.
This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2009, enacted under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998, addresses the need for regulatory oversight and supervision of authorised deposit-taking institutions (ADIs) in Australia. This legislative instrument was introduced by the Minister for Finance to impose a supervisory levy on ADIs for the 2009-10 financial year, as outlined in the Explanatory Statement. This determination aims to provide a structured and fair approach to the levy imposed on ADIs, ensuring adequate funding for the supervision activities of the Australian Prudential Regulation Authority (APRA). The determination also reflects the adjustments made due to the introduction of the First Home Saver Account (FHSA), ensuring that the asset values used for calculating the levy exclude FHSA balances, which are subject to a separate levy. The determination was developed following consultations with the finance sector and is a legislative instrument under the Legislative Instruments Act 2003.
Scope and Application
The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2009 applies to authorised deposit-taking institutions (ADIs) in Australia and is governed by the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998. This determination specifies the levy percentages for the 2009-10 financial year, applicable to the restricted and unrestricted components of the levy, with different thresholds and rates depending on the type of ADI. Notably, the asset value calculation now excludes the total balances of all First Home Saver Accounts (FHSAs) provided by the ADI, which are subject to a separate levy. For foreign ADIs, the restricted component of the levy is calculated at 0.00216 per cent of assets held, with a minimum of $470 and a maximum of $800,000, while the unrestricted component is calculated at 0.000415 per cent of assets. Specialist Credit Card Institutions and Providers of Purchased Payment Facilities have a restricted levy of 0.00216 per cent of assets, with a minimum of $10,000 and a maximum of $800,000, and an unrestricted levy of 0.000415 per cent of assets. For all other ADIs, the restricted levy is 0.00431 per cent of assets, with a minimum of $470 and a maximum of $1,600,000, and an unrestricted levy of 0.000415 per cent of assets. This determination is a legislative instrument under the Legislative Instruments Act 2003.
Key Provisions
The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2009 (subsection 7(3) of the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998) establishes the levy rates for the 2009-10 financial year for authorised deposit-taking institutions (ADIs). The levy consists of both restricted and unrestricted components, which are calculated based on the assets held by the ADIs, with certain exclusions such as First Home Saver Accounts (FHSAs). For foreign ADIs, the restricted levy is set at 0.00216% of assets, with a minimum of $470 and a maximum of $800,000. The unrestricted levy is set at 0.000415% of assets. For Specialist Credit Card Institutions and Providers of Purchased Payment Facilities, the restricted levy is also 0.00216% of assets, with a minimum of $10,000 and a maximum of $800,000, while the unrestricted levy remains at 0.000415% of assets. For all other ADIs, the restricted levy is 0.00431% of assets, with a minimum of $470 and a maximum of $1,600,000, and the unrestricted levy is 0.000415% of assets. These calculations are based on the asset values as defined by the Act, excluding certain FHSAs, which are subject to a separate levy.
The obligations imposed by this determination on ADIs include the calculation and payment of the supervisory levy for the specified financial year. The ADIs must accurately determine their asset values in accordance with the Act, excluding the specified FHSAs, and then apply the prescribed percentages to calculate both the restricted and unrestricted components of the levy. They must then remit the calculated amounts to the relevant authority within the stipulated timeframe. This obligation extends to all ADIs, including foreign entities and those providing specialist services, ensuring that each entity contributes to the supervisory costs according to its asset base.
Failure to comply with the provisions of this determination may lead to various consequences. Although the specific penalties for non-compliance are not detailed within the determination, general penalties for breaches of financial legislation in Australia can include fines and, in severe cases, criminal charges. The exact penalties would depend on the nature and severity of the breach, as well as any applicable laws or regulations. Additionally, ongoing non-compliance could result in reputational damage and loss of trust among stakeholders, further exacerbating the financial and legal repercussions for the ADIs.