Overview

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2008 was enacted to address the need for financial oversight and regulatory compliance within the general insurance and authorised deposit-taking institution sectors. This legislation implements a supervisory levy as authorised under the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998. The levy is designed to ensure that authorised non-operating holding companies contribute to the costs associated with their supervision, thereby supporting the stability and integrity of the financial system. The determination was issued by the Minister for Finance and establishes that the levy amount for the 2008–09 financial year is $10,000. This legislative instrument, which revokes the previous year's determination upon its commencement, reflects a policy objective to maintain effective regulatory oversight while ensuring that the financial burden is fairly distributed among the entities involved.

Scope and Application

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2008 applies to authorised non-operating holding companies within the general insurance and authorised deposit-taking institution sectors, imposing a levy on these entities for the 2008-09 financial year. This determination commences on 1 July 2008 and supersedes the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2007. The levy amount for each authorised non-operating holding company for the specified financial year is set at $10,000, as determined by the Minister under subsection 7(1) of the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998. This levy is a Commonwealth legislative instrument, consistent with the Legislative Instruments Act 2003, and does not alter any obligations or liabilities incurred in previous financial years, in line with section 50 of the Acts Interpretation Act 1901. The determination follows consultations with the finance sector, as outlined in a Treasury and Australian Prudential Regulation Authority Consultation Paper released on 28 May 2008.

Key Provisions

The key provisions of the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2008 (subsection 7(1)) specify the levy amount for authorised non-operating holding companies in the general insurance and authorised deposit-taking institution sectors for the 2008-09 financial year. Specifically, the determination sets the levy amount at $10,000. This levy is imposed in accordance with the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998, which grants the Minister the authority to determine the amount of the levy for a given financial year. This determination takes effect from 1 July 2008 and supersedes the 2007 determination. In terms of obligations, authorised non-operating holding companies within the specified sectors are required to pay the levy as determined by the Minister. The determination mandates that these companies must comply with the financial year's levy requirements, ensuring timely payment of the $10,000 levy for the 2008-09 financial year. The determination also revokes the previous Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2007 upon its commencement, though it clarifies that any obligations or liabilities incurred under the previous determination remain valid. The legislation also outlines the consequences of non-compliance with the levy requirements. While the specific penalties or consequences for breach are not detailed within the determination itself, the Act generally provides for enforcement actions which can include fines and other penalties. Typically, breaches of such legislative instruments can lead to civil or criminal penalties, depending on the severity and intent of the non-compliance. In practice, authorised non-operating holding companies must ensure they meet the levy requirements to avoid potential enforcement actions and associated penalties.