Overview

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2005 was enacted to implement a levy on authorised non-operating holding companies as stipulated by the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998. This legislative instrument was introduced by the Australian Parliament to address the need for additional regulatory oversight and funding for the supervision of authorised non-operating holding companies within the financial sector. The policy objective behind this levy is to ensure that these entities contribute to the costs associated with their oversight and regulation. The 2005 determination expands the scope of the levy to include companies in the general insurance sector, in addition to those in the authorised deposit-taking institutions sector. This broader application aims to capture a more comprehensive range of financial entities under the levy, thus enhancing the overall regulatory framework and ensuring a more equitable distribution of supervisory costs.

Scope and Application

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2005 applies to authorised non-operating holding companies within the general insurance sector and the authorised deposit-taking institutions sector in Australia for the 2005-06 financial year. This levy is imposed under the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998, and the determination specifies that the amount of levy payable by such companies for this financial year is $10,000. The determination revokes the previous Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2004 upon its commencement on 1 July 2005, while ensuring that any obligations or liabilities incurred in prior financial years remain valid. The scope of the levy is limited to authorised non-operating holding companies in the designated sectors, and the levy amount is determined by the Treasurer under the authority of subsection 7(1) of the 1998 Act. This instrument is a disallowable one under section 46A of the Acts Interpretation Act 1901.

Key Provisions

The main operative sections of this determination pertain to the levy imposed by the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998 (section 7(1)) on authorised non-operating holding companies. According to this determination, which applies to the 2005-06 financial year, the levy for each such company is set at $10,000. This levy is applicable to authorised non-operating holding companies in both the general insurance sector and the authorised deposit-taking institutions sector, expanding its scope compared to previous years. This determination also revokes the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2004 and comes into effect on 1 July 2005. The obligations and requirements imposed by this Act on the parties it governs include the necessity for authorised non-operating holding companies to pay the specified levy for the 2005-06 financial year. This levy must be settled by the companies within the prescribed timeframe, which is typically aligned with the financial year end. The Act ensures that any obligations or liabilities incurred in previous financial years remain valid, as per section 50 of the Acts Interpretation Act 1901. Additionally, companies must comply with any administrative or reporting requirements stipulated by the Treasurer to facilitate the collection and oversight of these levies. The determination outlines several consequences for non-compliance with the provisions of the Act. Any authorised non-operating holding company that fails to pay the specified levy within the designated period may face penalties, which could include financial fines or other administrative sanctions. The exact nature and extent of these penalties are not detailed in the determination itself but would be subject to the broader legal framework governing financial levies and compliance in Australia. The determination also specifies that it is a disallowable instrument under section 46A of the Acts Interpretation Act 1901, meaning it can be subject to review and potential disallowance by Parliament.