Overview

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2006 is a legislative instrument that implements the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998, which was enacted to address the need for a supervisory levy on authorised non-operating holding companies within the general insurance and authorised deposit-taking institution sectors. This determination, which commenced on 1 July 2006 and applies to the 2006-07 financial year, was made by the Treasurer under subsection 7(1) of the aforementioned Act. The purpose of this legislation is to establish the specific amount of the levy to be charged, which, as per this determination, is set at $10,000 for the relevant financial year. The determination also revokes the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2005, ensuring that the newer provisions take precedence. This process involved consultation with the finance sector, culminating in the release of a Treasury and Australian Prudential Regulation Authority consultation paper on 12 May 2006 and subsequent meetings. The determination is considered a legislative instrument under the Legislative Instruments Act 2003.

Scope and Application

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2006 applies to authorised non-operating holding companies within the general insurance and authorised deposit-taking institution sectors, imposing a levy for the 2006-07 financial year. This levy is a direct consequence of the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998, which empowers the Treasurer to determine the levy amount. The Act applies nationally across Australia, with the levy applying to all authorised non-operating holding companies in the specified sectors, regardless of their specific location within the country. This determination revokes the previous Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2005, effective from its commencement on 1 July 2006, while ensuring that any existing obligations or liabilities from prior financial years remain in force. The levy amount for the 2006-07 financial year is set at $10,000, as specified under the authority granted by subsection 7(1) of the Act.

Key Provisions

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2006, commencing on 1 July 2006, specifies the amount of levy payable by authorised non-operating holding companies in the general insurance and authorised deposit-taking institution sectors for the 2006-07 financial year. Section 7(1) of the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998 mandates that the Treasurer determines the levy amount. Accordingly, this determination sets the levy at $10,000 for the specified financial year. This determination revokes the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2005, but any obligations or liabilities incurred before its commencement remain valid under section 50 of the Acts Interpretation Act 1901. The Act imposes several obligations on authorised non-operating holding companies. Primarily, they must pay the supervisory levy as determined by the Treasurer. This levy is a financial charge designed to fund the supervision and regulation of these entities. The determination requires compliance with the specified levy amount for the 2006-07 financial year. Additionally, authorised non-operating holding companies must ensure accurate and timely reporting of their financial information to relevant authorities. This reporting obligation is crucial for the oversight bodies to monitor and regulate these companies effectively. Breach of the obligations outlined in the Act can lead to various consequences. For instance, failure to pay the supervisory levy as required can result in civil penalties. The Act does not specify the exact penalties for non-compliance; however, the consequences typically include fines and interest on the unpaid amount. Additionally, persistent non-compliance can lead to more severe regulatory actions, including potential restrictions on the company's operations or even revocation of the authorisation to operate as a non-operating holding company. These measures are intended to ensure that authorised non-operating holding companies adhere to the regulatory framework and contribute to their supervision.