Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2017

Administered by Department of the Treasury

Legislation au F2017L00906 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Authorised Deposit‑taking Institutions Supervisory Levy Imposition Determination 2017

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 2017 and relates to the 2017‑18 financial year. The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2016 is repealed upon commencement of this determination.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 subsections 12(2) and 12(3) of the Legislation 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 2017‑18 levy will be calculated at 0.00130 per cent of assets held by the entity, subject to a minimum of $10,000 and a maximum of $1,000,000. The unrestricted component of the 2017-18 levy will be calculated at 0.001092 per cent of assets held by the entity.

For Providers of Purchased Payment Facilities this determination provides that the restricted component of the 2017‑18 levy will be calculated at 0.00196 per cent of assets held by the entity, subject to a minimum of $10,300 and a maximum of $1,500,000. The unrestricted component of the 2017‑18 levy will be calculated at 0.001092 per cent of assets held by the entity.

For all other ADIs, this determination provides that the restricted component of the 2017‑18 levy will be calculated at 0.00391 per cent of assets held by the entity, subject to a minimum of $10,000 and a maximum of $3,000,000. The unrestricted component of the 2017‑18 levy will be calculated at 0.001092 per cent of assets held by the entity.


The finance sector has been consulted on the 2017‑18 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 26 May 2017. The discussion paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA. Five submissions were received during the consultation process, and two were in relation to the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Determination 2017.  

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 Legislation 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 2017

 

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 2017 was enacted to specify the levy rates for the 2017-18 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 stable and predictable funding source to support the regulatory activities of the Australian Prudential Regulation Authority (APRA). The determination was made by the Minister for Finance and is consistent with the policy objective of providing a transparent and equitable framework for levying authorised deposit-taking institutions. The determination sets out specific percentages and thresholds for both restricted and unrestricted levies, tailored to different types of ADIs, including foreign ADIs and providers of purchased payment facilities. This legislative instrument ensures that the supervisory levies remain a crucial element in maintaining financial stability and consumer protection within the Australian finance sector.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2017 applies to authorised deposit-taking institutions (ADIs) across Australia, governing the calculation of the supervisory levy for the 2017-18 financial year. The determination, which commences on 1 July 2017, is made under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 and specifies the maximum, minimum, and percentage rates for both restricted and unrestricted levies based on the assets held by the ADIs. Different percentages and thresholds apply to foreign ADIs and providers of purchased payment facilities compared to other ADIs. The calculation method for the levy base is also outlined, ensuring consistency in how the assets of each institution are valued for levy purposes. This legislative instrument has been developed following consultations with the finance sector, and while it does not necessitate a Regulatory Impact Statement, it includes a statement of compatibility with human rights as required by the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main operative sections of this determination, as specified in section 7(3) of the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998, provide for the calculation of the restricted and unrestricted components of the supervisory levy for authorised deposit-taking institutions (ADIs) for the 2017-18 financial year. These sections detail the levy percentages for different categories of ADIs and the formulae used to calculate the levy base, which is based on the assets held by the entity. For instance, for foreign ADIs, the restricted component of the levy is calculated at 0.00130% of the assets held, with a minimum of $10,000 and a maximum of $1,000,000. The unrestricted component is calculated at 0.001092% of the assets held. Similar calculations apply for other categories of ADIs, with variations in the restricted levy percentages and caps on the levy amounts. The determination imposes specific obligations and requirements on ADIs. These include the calculation of their levy base based on the prescribed formulae, ensuring compliance with the specified minimum and maximum levy amounts, and the timely payment of the calculated levies. ADIs must also ensure that their assets are accurately reported to facilitate the correct calculation of the levy. The determination applies to all ADIs operating within Australia and requires them to adhere to the prescribed levy structure and payment obligations for the financial year in question. Breach of the obligations and requirements set out in this determination can result in civil and criminal consequences. While the specific offences and penalties are not detailed in the explanatory statement, breaches of the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 can typically result in significant fines and other penalties as prescribed by the relevant legislation. The maximum penalties for such offences can be substantial, reflecting the importance of compliance with financial regulatory requirements. Failure to comply with the levy payment obligations could also lead to legal action being taken against the ADI, potentially resulting in further financial and reputational damage.

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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.