Authorised Non-operating Holding Companies Supervisory Levy Imposition Amendment Act 2020

Overview

The Authorised Non-operating Holding Companies Supervisory Levy Imposition Amendment Act 2020 was enacted by the Parliament of Australia to amend the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. This amendment was introduced to address issues surrounding the statutory upper limit for authorised non-operating holding companies and the indexation factor used in calculating these limits. The policy objective behind this amendment is to ensure the continued effectiveness of the supervisory levy in monitoring and regulating the activities of authorised non-operating holding companies. The Act commenced on 20 June 2020, the day after receiving Royal Assent, and applies to determinations made under the 1998 Act on or after this date. The amendments include the repeal and substitution of certain definitions, changes to the statutory upper limit calculation, and modifications to the indexation factor formula.

Scope and Application

The Authorised Non-operating Holding Companies Supervisory Levy Imposition Amendment Act 2020 amends the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998, which imposes a levy on certain authorised non-operating holding companies. This amendment applies to financial years commencing on or after 1 July 2020, with the entire Act coming into effect the day after receiving Royal Assent, which was 20 June 2020. The Act primarily affects authorised non-operating holding companies, imposing specific statutory upper limits and adjusting the methodology for calculating indexation factors for the supervisory levy. The amendments apply to any determinations made under the original Act on or after the commencement of this Act, thereby extending its application to financial years affected by the new provisions.

Key Provisions

The primary operative sections of the Authorised Non-operating Holding Companies Supervisory Levy Imposition Amendment Act 2020 (sections 1 to 3) provide the short title, commencement date, and the schedules of amendments to the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998 (the "1998 Act"). The Act commenced on 20 June 2020, the day after receiving Royal Assent. The Schedule to the Act sets out specific amendments to the 1998 Act, particularly affecting the definition of "statutory upper limit" in section 5 and the calculation of the indexation factor in section 8. Section 7(1) is also amended to clarify the application of the statutory upper limit to financial years. The Act imposes several obligations and requirements on the parties governed by it. Most notably, it mandates that the statutory upper limit be adhered to when making determinations under section 7(1) of the 1998 Act. The definition of "statutory upper limit" in section 5 is revised to specify a fixed amount for the financial year commencing on 1 July 2020, and subsequent years will have this limit indexed according to the formula provided in section 8. This ensures that the upper limit is adjusted for inflation, maintaining its relevance over time. Additionally, the Act requires the Treasurer to use the most recent Australian Statistician's index number to calculate the indexation factor for each financial year. Breaching the provisions of the Act can lead to various consequences. The Act itself does not explicitly detail offences, penalties, or civil/criminal consequences for breaches, but violations of the amended 1998 Act could result in penalties as prescribed in that Act. Typically, penalties for non-compliance with supervisory levy imposition acts can include fines, imprisonment, or both, depending on the severity and intent of the breach. The exact penalties would be found in the 1998 Act, which the amendments are designed to refine and update.