Overview

The Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2016 was enacted to establish the levy rates for authorised deposit-taking institutions (ADIs) for the 2016-17 financial year, as required under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998. This Act was introduced to address the need for a mechanism to fund the supervision of ADIs, ensuring that these institutions are properly regulated to maintain financial stability and protect consumers. The determination was made by the Treasurer and provides the specific percentages for both restricted and unrestricted levies for different types of ADIs, including foreign ADIs and providers of purchased payment facilities. The determination was preceded by consultations with the finance sector and considers the potential impacts of the levies on the regulated institutions. Additionally, the determination includes a statement of compatibility with human rights, confirming that the legislation does not engage any of the applicable rights or freedoms.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2016 pertains to a levy imposed by the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 on authorised deposit-taking institutions (ADIs). This determination applies to the 2016-17 financial year and outlines the methodology for calculating the levy for different categories of ADIs, including foreign ADIs and Providers of Purchased Payment Facilities. The levy is calculated based on a percentage of the institution's assets, with specific minimum and maximum thresholds set for each category. The determination also specifies the restricted and unrestricted levy percentages for the financial year. The geographic reach of this legislation is national, as it applies across Australia and is overseen by the Commonwealth. The determination does not specify any exclusions or exemptions, but the application may be extended or restricted through subordinate instruments. The levy aims to fund the supervisory activities of the Australian Prudential Regulation Authority (APRA) and is consistent with human rights, as affirmed by the Statement of Compatibility with Human Rights.

Key Provisions

The Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2016 (subsection 7(3) of the Act) specifies the maximum, minimum, and percentage amounts of the levy for the 2016-17 financial year. For foreign authorised deposit-taking institutions (ADIs), the restricted component of the levy is set at 0.00196 per cent of assets held, with a minimum of $6,000 and a maximum of $1,225,000, and the unrestricted component is 0.001012 per cent of assets held. For providers of purchased payment facilities, the restricted component is similarly 0.00196 per cent of assets held, with a minimum of $10,300 and a maximum of $1,225,000, while the unrestricted component is 0.001012 per cent of assets held. For all other ADIs, the restricted component is 0.00392 per cent of assets held, with a minimum of $6,000 and a maximum of $2,450,000, and the unrestricted component remains at 0.001012 per cent of assets held. This determination replaces the Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2015 upon its commencement on 1 July 2016. The determination imposes specific obligations on ADIs, including the calculation and payment of the levy based on their asset values as defined by the determination. The minimum and maximum caps ensure that the levy remains within a specified range, while the percentage rates provide a consistent basis for the levy across different types of ADIs. The requirement to calculate the levy based on the institution's asset values ensures that the levy is proportionate to the size and scope of the institution's operations. The Act imposes several obligations on the ADIs, including the calculation of their levy base as outlined in the determination, ensuring the payment of the levy within the specified timeframe, and maintaining accurate records of the levy paid. These obligations are critical for the proper functioning of the supervisory levy system and for ensuring that the Australian Prudential Regulation Authority (APRA) can effectively oversee and regulate the activities of ADIs. There are no specific offences, penalties, or civil/criminal consequences outlined in this determination for failing to comply with the levy requirements. However, failure to comply with the obligations under the Act and the determination could potentially lead to regulatory action by APRA, including enforcement actions, fines, or other penalties as provided under the broader legislative framework governing ADIs. The maximum penalties for breaches of the Act or the determination would be determined by the specific provisions of the Act and any related regulations or guidelines issued by APRA.