Overview

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2010, enacted to address the need for funding the supervision of authorised deposit-taking institutions (ADIs) in Australia, was introduced by the Minister for Finance under the authority of the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998. This legislation aims to ensure adequate resources for the supervision of ADIs by imposing a levy on these institutions. The determination, which commenced on 1 July 2010, revokes the previous year's determination and specifies the restricted and unrestricted levy percentages for the 2010-11 financial year, ensuring that ADIs contribute to the costs of their oversight in a structured and equitable manner. The determination was made following consultations with the finance sector as outlined in the Treasury and Australian Prudential Regulation Authority Consultation Paper released on 27 May 2010.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2010 applies to authorised deposit-taking institutions (ADIs) and establishes the levy imposed by the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998 for the 2010-11 financial year. The determination outlines the calculation of the restricted and unrestricted components of the levy based on the asset value of the ADIs. It applies to both domestic and foreign ADIs, with specific parameters for different categories of institutions, including foreign authorised deposit-taking institutions, Specialist Credit Card Institutions, and Providers of Purchased Payment Facilities. The restricted levy percentages vary, with foreign institutions and Specialist Credit Card Institutions subject to a lower percentage than other ADIs, while the unrestricted levy percentage remains consistent across all ADIs. The determination specifies a minimum and maximum levy amount for the restricted component, which differs based on the type of institution. This legislative instrument revokes the previous determination and applies nationally, covering all authorised deposit-taking institutions within Australia.

Key Provisions

The main sections of the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2010, as referenced in the Explanatory Statement, focus on the specifics of the levy imposed on authorised deposit-taking institutions (ADIs) for the 2010-11 financial year. The determination sets out the maximum and minimum restricted levy amounts, the restricted levy percentage, and the unrestricted levy percentage for different categories of ADIs, including foreign ADIs, Specialist Credit Card Institutions, and Providers of Purchased Payment Facilities. It also details the method for calculating an ADI's asset value, which is a crucial element in determining the applicable levy. The obligations under this Act require authorised deposit-taking institutions to calculate their levies based on the asset values as stipulated in the determination. For foreign ADIs, the restricted component of the levy is set at 0.00207 per cent of their assets, with a minimum of $470 and a maximum of $825,000, while the unrestricted component is calculated at 0.000501 per cent of their assets. For Specialist Credit Card Institutions and Providers of Purchased Payment Facilities, the restricted component is 0.00207 per cent of assets, with a minimum of $10,000 and a maximum of $825,000, and the unrestricted component is 0.000501 per cent of assets. For all other ADIs, the restricted component is 0.00415 per cent of assets, with a minimum of $470 and a maximum of $1,650,000, while the unrestricted component remains at 0.000501 per cent of assets. The Act imposes strict requirements on ADIs to accurately determine and report their levies to the relevant authorities. Failure to comply with these requirements can result in significant consequences. The Explanatory Statement does not specify the exact offences or penalties for breach, but it is implied that non-compliance could lead to civil or criminal penalties, as typically outlined in the overarching Act (the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998). The maximum penalties for such breaches would be determined by the provisions of the primary Act, which may include fines or other legal repercussions.