Authorised Deposit-taking Institutions Supervisory Levy Imposition Determination 2018

Administered by Department of the Treasury

Legislation au F2018L00991 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Authorised Deposit‑taking Institutions Supervisory Levy Imposition Determination 2018

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 2018 and relates to the 2018‑19 financial year. The Authorised Deposit‑Taking Institutions Supervisory Levy Imposition Determination 2017 is repealed upon commencement of this determination.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 commences, or is taken to have commenced, before it is registered. However, commencement prior to registration 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 2018‑19 levy will be calculated at 0.00084 per cent of assets held by the entity, subject to a minimum of $15,000 and a maximum of $600,000. The unrestricted component of the 2018-19 levy will be calculated at 0.001025 per cent of assets held by the entity.

For Providers of Purchased Payment Facilities this determination provides that the restricted component of the 2018‑19 levy will be calculated at 0.00420 per cent of assets held by the entity, subject to a minimum of $15,000 and a maximum of $600,000. The unrestricted component of the 2018‑19 levy will be calculated at 0.001025 per cent of assets held by the entity.

For all other ADIs[1], this determination provides that the restricted component of the 2018‑19 levy will be calculated at 0.00420 per cent of assets held by the entity, subject to a minimum of $15,000 and a maximum of $3,000,000. The unrestricted component of the 2018‑19 levy will be calculated at 0.001025 per cent of assets held by the entity.


The finance sector has been consulted on the 2018‑19 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 11 May 2018. The discussion paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA. Six submissions were received during the consultation process, none of which related specifically to the methodology for this levy.  

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 2018

 

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) requires the Treasurer 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 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.

 

[1] These includes ADIs with an authority to carry on banking business in Australia for a limited time.

Overview

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2018, enacted by the Australian Government, pertains to a levy imposed on authorised deposit-taking institutions (ADIs) under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998. This legislation addresses the need for financial stability by providing a funding mechanism for the Australian Prudential Regulation Authority (APRA) to effectively supervise and regulate ADIs. The Act was introduced to ensure that ADIs contribute to the costs associated with their supervision, thereby supporting the financial integrity and stability of the Australian economy. The determination, which specifies the levy rates and calculations for the 2018-19 financial year, was made by the Treasurer in accordance with the Act and is consistent with the policy of ensuring that the financial sector bears its share of regulatory costs.

Scope and Application

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2018 applies to authorised deposit-taking institutions (ADIs), including banks, credit unions, building societies, and other entities authorised to carry on banking business in Australia. This determination outlines the methodology for calculating the supervisory levy imposed under the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998, which applies across the Commonwealth of Australia. The determination sets forth the restricted and unrestricted levy percentages and thresholds for calculating the levy based on the assets held by each ADI. For the 2018-19 financial year, the restricted levy for foreign ADIs is calculated at 0.00084 per cent of assets, with a minimum of $15,000 and a maximum of $600,000, while the unrestricted levy is 0.001025 per cent. For Providers of Purchased Payment Facilities, the restricted levy is 0.00420 per cent, and for all other ADIs, it is also 0.00420 per cent, with a higher maximum of $3,000,000. The determination provides a clear framework for levy calculation and ensures compliance with the Act by all applicable entities within the specified financial year.

Key Provisions

The Authorised Deposit-Taking Institutions Supervisory Levy Imposition Determination 2018 (F2018L00991) outlines the levy imposed by the Authorised Deposit-Taking Institutions Supervisory Levy Imposition Act 1998 (the Act) on authorised deposit-taking institutions (ADIs) for the 2018-19 financial year. According to section 7(3) of the Act, the Treasurer is required to determine specific details regarding the levy, including the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating an ADI’s levy base. The determination specifies that for foreign ADIs, the restricted component of the 2018-19 levy is calculated at 0.00084 per cent of assets held by the entity, subject to a minimum of $15,000 and a maximum of $600,000, while the unrestricted component is calculated at 0.001025 per cent of assets. For Providers of Purchased Payment Facilities, the restricted component is 0.00420 per cent of assets, with the same minimum and maximum limits, and the unrestricted component remains at 0.001025 per cent. For all other ADIs, the restricted component is 0.00420 per cent of assets, subject to a minimum of $15,000 and a maximum of $3,000,000, while the unrestricted component is 0.001025 per cent of assets. The obligations imposed by this determination on ADIs include adhering to the specified percentages and limits for both the restricted and unrestricted components of the levy, as calculated based on the assets held by the entity. This involves accurately determining the asset value and applying the correct percentage to calculate the respective levy amounts. The determination also ensures that all ADIs comply with the minimum and maximum levy limits set forth, which helps maintain uniformity and fairness across different types of authorised deposit-taking institutions. The determination sets out that any breach of the provisions regarding the levy could result in financial penalties. Although the specific penalties are not detailed within the determination, the Act provides the framework under which such penalties could be imposed. Typically, breaches of financial legislation can lead to both civil and criminal consequences, including fines and potential imprisonment, depending on the severity and intent behind the breach. The exact penalties would be determined in accordance with the broader financial laws and regulations governing authorised deposit-taking institutions in Australia.

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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.