Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2015

Administered by Department of the Treasury

Legislation au F2015L01106 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Authorised Deposit‑taking Institutions Supervisory Levy Imposition Determination 2015

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 2015 and relates to the 2015‑16 financial year.  The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2014 is repealed upon commencement of this determination.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 2015‑16 levy will be calculated at 0.00204 per cent of assets held by the entity, subject to a minimum of $3,000 and a maximum of $1,225,000.  The unrestricted component of the 2015-16 levy will be calculated at 0.000718 per cent of assets held by the entity.

For Providers of Purchased Payment Facilities this determination provides that the restricted component of the 2015-16 levy will be calculated at 0.00204 per cent of assets held by the entity, subject to a minimum of $10,300 and a maximum of $1,225,000.  The unrestricted component of the 2015-16 levy will be calculated at 0.000718 per cent of assets held by the entity.

For all other ADIs, this determination provides that the restricted component of the 2015-16 levy will be calculated at 0.00408 per cent of assets held by the entity, subject to a minimum of $3,000 and a maximum of $2,450,000.  The unrestricted component of the 2015-16 levy will be calculated at 0.000718 per cent of assets held by the entity.


The finance sector has been consulted on the 2015‑16 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 20 May 2015.  The discussion paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA.  Eight submissions were received during the consultation process, and one was in relation to the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Determination 2015.  

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 2015

 

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 2015 was enacted to impose a levy on authorised deposit-taking institutions (ADIs) in accordance with the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998. This determination sets the parameters for the 2015-16 financial year, replacing the previous determination for that year and ensuring continuity in financial obligations incurred prior to its commencement. The enactment of this legislation addresses the need for a structured and consistent method to impose supervisory levies on ADIs, thereby ensuring effective supervision and regulation of these institutions. The determination was made by the Minister under the authority of the Act and is consistent with the policy objectives outlined in the related discussion paper released by the Treasury and the Australian Prudential Regulation Authority (APRA). The consultation process included feedback from the finance sector, ensuring that the levy imposition is practical and considerate of industry impacts.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2015 applies to authorised deposit-taking institutions (ADIs) in Australia, and it specifies the method of calculating the supervisory levy for the 2015-16 financial year. The determination is made under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 and is applicable to all ADIs, including foreign ADIs and providers of purchased payment facilities. The levy is calculated based on a percentage of the assets held by each entity, with different percentages and thresholds applied to foreign ADIs, providers of purchased payment facilities, and other ADIs. This determination sets out the restricted and unrestricted components of the levy for each category of ADI and provides for a minimum and maximum levy amount for each financial year. The determination also includes a statement of compatibility with human rights, confirming that the legislation does not engage any applicable rights or freedoms. The geographic reach of this legislation is national, as it applies to all ADIs operating within Australia. Any obligations or liabilities incurred in previous financial years remain valid, and the commencement of this determination does not adversely affect the rights of any person.

Key Provisions

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2015 outlines the specific requirements and calculations for the levy imposed on authorised deposit-taking institutions (ADIs) for the 2015-16 financial year under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 (the Act). According to the determination, the levy is calculated based on a percentage of the assets held by the ADIs. For foreign ADIs, the restricted component of the levy is set at 0.00204 per cent of assets, with a minimum of $3,000 and a maximum of $1,225,000, while the unrestricted component is calculated at 0.000718 per cent of assets. For Providers of Purchased Payment Facilities, the restricted component is also 0.00204 per cent of assets, but with a minimum of $10,300 and a maximum of $1,225,000, and the unrestricted component remains at 0.000718 per cent of assets. For all other ADIs, the restricted component is set at 0.00408 per cent of assets, with a minimum of $3,000 and a maximum of $2,450,000, and the unrestricted component remains at 0.000718 per cent of assets. The determination imposes obligations on ADIs to accurately calculate their levy based on the prescribed percentages and asset values, ensuring compliance with the specified minimum and maximum thresholds. It also mandates that ADIs must report and pay the calculated levy to the relevant authorities within the stipulated timeframes. Failure to comply with these obligations may result in penalties or other enforcement actions as prescribed under the Act. In terms of consequences for non-compliance, the Act stipulates penalties and enforcement measures for entities that fail to meet their obligations under the determination. The specific penalties for non-compliance or late payment of the levy are not detailed in the determination but may include fines, interest on unpaid levies, or other administrative actions as outlined in the Act. The Act may also provide for civil or criminal proceedings in cases of serious or repeated non-compliance, with potential penalties that could include substantial fines or other sanctions.

Legal classification tags

Area of Law
Finance & Banking Law
Taxation Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Commencement Provisions
Regulatory Standards
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

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.