EXPLANATORY STATEMENT

Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2008

This determination relates to a levy imposed by the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998 on authorised non‑operating holding companies in the general insurance and authorised deposit‑taking institution sectors.

This determination commences on 1 July 2008 and relates to the 2008‑09 financial year.  The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2007 is revoked upon commencement of this determination.  Consistent with section 50 of the Acts Interpretation Act 1901, any obligation or liability incurred in previous financial years remains valid.

Subsection 7(1) of the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998 allows the Minister to determine the amount of levy payable by an authorised non‑operating holding company for a financial year.

The determination provides that the amount of levy payable by an authorised non‑operating holding company in relation to the 2008‑09 financial year is $10,000.

The finance sector has been consulted on the 2008‑09 supervisory levies through a Treasury and Australian Prudential Regulation Authority Consultation Paper released on 28 May 2008 and a number of follow-up meetings to discuss the issues in the paper.

This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.