Overview

The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2011 was enacted to impose a levy on authorised deposit-taking institutions (ADIs) for the 2011-12 financial year under the Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998. This legislation was introduced to address the need for financial support for the supervision of ADIs by the Australian Prudential Regulation Authority (APRA). The determination was issued by the Minister for Finance and establishes the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating an institution's asset value, in accordance with the Act. The policy objective is to ensure sufficient funding for the oversight of ADIs, thereby maintaining financial stability and protecting depositors. This determination revokes the 2010 version and is a legislative instrument under the Legislative Instruments Act 2003.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2011 applies to authorised deposit-taking institutions (ADIs) as defined under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998. This includes both domestic and foreign entities that are authorised to accept deposits, such as banks, credit unions, and other financial institutions involved in deposit-taking activities. The determination sets out the methodology for calculating the supervisory levy for the 2011-12 financial year, distinguishing between restricted and unrestricted components of the levy based on the type of institution and its asset value. The jurisdictional reach of this determination is governed by the Commonwealth, and it supersedes the 2010 determination, while ensuring that any obligations or liabilities from previous financial years remain valid. The determination is subject to the provisions of the Legislative Instruments Act 2003 and allows for adjustments and calculations to be made through subordinate instruments as necessary.

Key Provisions

The main sections of the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2011 (subsection 7(3) of the Act) provide specific details regarding the levy amounts imposed on authorised deposit-taking institutions (ADIs) for the 2011-12 financial year. The determination outlines the restricted and unrestricted levy percentages applicable to different categories of ADIs. For foreign ADIs, the restricted levy is set at 0.00198 per cent of the institution's assets, with a minimum of $470 and a maximum of $850,000. The unrestricted levy is calculated at 0.000573 per cent of assets. For Specialist Credit Card Institutions and Providers of Purchased Payment Facilities, the restricted levy is similarly 0.00198 per cent of assets, but with a higher minimum of $10,000 and a maximum of $850,000. The unrestricted levy remains at 0.000573 per cent of assets. For all other ADIs, the restricted levy is set at 0.00396 per cent of assets, with a minimum of $470 and a maximum of $1,700,000. The unrestricted levy is again 0.000573 per cent of assets. This determination imposes specific obligations on ADIs to calculate and pay the prescribed supervisory levies based on the asset values as defined. The institutions must determine their asset values accurately and apply the correct percentages to calculate both the restricted and unrestricted components of the levy. The calculation and payment of these levies are mandatory and must be done in accordance with the determination's provisions. The determination also revokes the previous levy imposition for the 2010-11 financial year, effective from 1 July 2011, while ensuring that any pre-existing obligations or liabilities remain valid. Failure to comply with the provisions of the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2011 may result in penalties. Although the determination does not explicitly state penalties for non-compliance, breaches of the Act generally may incur civil or criminal penalties, depending on the nature and severity of the breach. The penalties can include fines and, in severe cases, criminal charges. The exact penalties would be determined by the relevant courts or tribunals when adjudicating on specific instances of non-compliance.