Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2014

Administered by Department of the Treasury

Legislation au F2014L00951 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Authorised Deposit‑taking Institutions Supervisory Levy Imposition Determination 2014

This determination relates to a levy imposed by the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Act 1998 (the Act) on authorised deposit‑taking institutions (ADIs).

This determination commences on 1 July 2014 and relates to the 2014‑15 financial year.  The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2013 is repealed upon commencement of this determination.  Consistent with section 7 of the Acts Interpretation Act 1901, any obligation or liability incurred in previous financial years remains valid. 

The determination will commence before it is registered.  Commencement prior to registration, however, does not disadvantageously affect the rights of any person as at the date of registration or impose any liability on any person in respect of anything done or omitted to be done before the date of registration.  Commencement prior to registration is therefore consistent with subsection 12(2) of the Legislative Instruments Act 2003.

Subsection 7(3) of the Act requires the Treasurer, by legislative instrument, 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 ADI’s levy base is to be worked out.

For foreign ADIs this determination provides that the restricted component of the 2014‑15 levy will be calculated at 0.00195 per cent of assets held by the entity, subject to a minimum of $490 and a maximum of $1,170,500.  The unrestricted component of the 2014-15 levy will be calculated at 0.000774 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 2014-15 levy will be calculated at 0.00195 per cent of assets held by the entity, subject to a minimum of $10,300 and a maximum of $1,170,500.  The unrestricted component of the 2014-15 levy will be calculated at 0.000774 per cent of assets held by the entity.

For all other ADIs, this determination provides that the restricted component of the 2014-15 levy will be calculated at 0.00390 per cent of assets held by the entity, subject to a minimum of $490 and a maximum of $2,341,000.  The unrestricted component of the 2014-15 levy will be calculated at 0.000774 per cent of assets held by the entity.

In 2013-14 the Australian Prudential Regulation Authority (APRA) and Treasury reviewed the methodology for imposing levies on the finance industry. Thirteen submissions were received from industry as part of this process, and the APRA and Treasury response to submissions was released on 16 April 2014. 


The finance sector has been consulted on the 2014‑15 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 26 May 2014.  The discussion paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA.  Fourteen submissions were received during the consultation process, and four were in relation to the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Determination 2014.  

The Office of Best Practice Regulation has previously advised that a Regulatory Impact Statement is not required as supervisory levies are considered machinery‑of‑government in nature. 

This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

A statement of compatibility with human rights for the purposes of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is set out in Attachment 1.


Attachment 1

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2014

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

This determination relates to a levy imposed by the Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Act 1998 on authorised deposit‑taking institutions (ADIs).

Subsection 7(3) allows the Minister to determine:

(e)           the maximum restricted levy amount for each financial year;

(f)           the minimum restricted levy amount for each financial year;

(g)          the restricted levy percentage for each financial year;

(ca) the unrestricted levy percentage for each financial year; and

(h)          how an authorised deposit‑taking institution’s asset value is to be calculated.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2014 was enacted to address the need for a clear framework governing the imposition of supervisory levies on authorised deposit-taking institutions (ADIs) for the 2014-15 financial year. This determination was made under the authority of the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 and was introduced by the Commonwealth Parliament. The primary objective of the legislation is to ensure a consistent and fair approach to levying ADIs, contributing to the financial stability and regulatory oversight of the banking sector. The determination specifies the maximum, minimum, and percentage levies for different categories of ADIs, including foreign ADIs, Specialist Credit Card Institutions, and Providers of Purchased Payment Facilities. It was developed following consultations with industry stakeholders and regulatory bodies, aiming to maintain a balanced and effective regulatory framework.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2014 applies to authorised deposit-taking institutions (ADIs) and sets the parameters for the supervisory levy imposed under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998. It pertains specifically to the financial year 2014-15, with the levy calculation based on the assets held by these institutions. The Act applies across the Commonwealth of Australia, affecting both domestic and foreign ADIs operating within the nation. This determination establishes different levy percentages and thresholds for various categories of ADIs, including foreign ADIs, Specialist Credit Card Institutions, and Providers of Purchased Payment Facilities, ensuring a tailored approach to each sector. The Act’s application is further detailed through subordinate instruments which specify the exact methodology for calculating the levy, including minimum and maximum caps on the restricted component of the levy. The determination also ensures that the commencement of the levy does not affect the rights of any person adversely, aligning with legislative requirements for registration and effective date.

Key Provisions

The Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2014 (the Determination) establishes the parameters for a levy imposed under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 (the Act) on authorised deposit-taking institutions (ADIs) for the 2014-15 financial year. This Determination is effective as of 1 July 2014 and supersedes the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2013. The Determination outlines the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the methodology for calculating an ADI's levy base. It specifies that the restricted component of the levy will be calculated at 0.00195 per cent of assets held by the entity, subject to a minimum and maximum cap for foreign ADIs, Specialist Credit Card Institutions, and Providers of Purchased Payment Facilities, and at 0.00390 per cent for all other ADIs. The unrestricted component of the levy is set at 0.000774 per cent of assets held by the entity for all ADIs. The Determination imposes certain obligations on ADIs, including compliance with the specified levy percentages and caps as determined by the Minister. ADIs are required to calculate their respective levies based on the asset values as defined in the Determination, ensuring they adhere to the set parameters. They must also ensure that any obligations or liabilities incurred in previous financial years remain valid, as per section 7 of the Acts Interpretation Act 1901. Additionally, ADIs must ensure that the commencement of this Determination does not disadvantage their rights or impose any liabilities for actions taken prior to the registration date, consistent with subsection 12(2) of the Legislative Instruments Act 2003. Failure to comply with the provisions outlined in this Determination may result in legal consequences. Although the specific offences, penalties, or consequences for breach are not detailed in the Determination itself, breaches of the Act could potentially lead to civil or criminal penalties under the relevant legislative framework. The maximum penalties, if applicable, would be determined based on the specific provisions of the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 and other relevant legislation. It is important for ADIs to ensure full compliance to avoid any potential legal ramifications.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.