Overview

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2011, enacted by the Commonwealth of Australia, was introduced to address the need for a levy on authorised non-operating holding companies in the general insurance and authorised deposit-taking institution sectors for the 2011-12 financial year. This determination, which revokes the 2010 version and takes effect the day after its registration, is grounded in the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998, enabling the Minister to set the levy amount. The determination stipulates a $10,000 levy for the specified financial year, following consultations with the finance sector via a Treasury and Australian Prudential Regulation Authority Discussion Paper. The intent behind this determination aligns with the broader policy objective of ensuring the financial stability and regulatory oversight of the financial sector.

Scope and Application

The Authorised Non-Operating Holding Companies Supervisory Levy Imposition Determination 2011 applies to authorised non-operating holding companies within the general insurance and authorised deposit-taking institution sectors, as defined under the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998. This determination sets the levy for the 2011-12 financial year and comes into effect the day after its registration. It revokes the previous levy determination from 1 July 2011, although any obligations or liabilities incurred in earlier financial years remain valid under section 50 of the Acts Interpretation Act 1901. The levy amount is determined by the Minister under subsection 7(1) of the Act, with the 2011-12 levy set at $10,000. This determination is made in accordance with the Legislative Instruments Act 2003, following consultation with the finance sector as outlined in a Treasury and Australian Prudential Regulation Authority Discussion Paper released on 18 May 2011.

Key Provisions

The primary operative sections of this determination (sections 7(1) and the explanatory statement) specify that the Minister has the authority to set the amount of levy payable by authorised non-operating holding companies for the 2011-12 financial year. Specifically, section 7(1) of the Authorised Non-Operating Holding Companies Supervisory Levy Imposition Act 1998 provides the basis for this determination, which sets the levy amount at $10,000 for that financial year. This levy applies to authorised non-operating holding companies in the general insurance and authorised deposit-taking institution sectors. The determination becomes effective the day after it is registered, marking the start of its application for the specified financial year. The obligations imposed by this Act on the parties it governs include the payment of the specified levy by authorised non-operating holding companies within the stipulated financial year. These companies must ensure compliance with the requirements set out in the determination to avoid any legal repercussions. Furthermore, the Act mandates that any obligation or liability incurred in previous financial years remains valid, ensuring continuity and clarity in financial obligations for these entities. The consultation process, as mentioned in the explanatory statement, also implies an obligation on the part of these companies to be aware of and respond to any regulatory changes or discussions impacting their sector. In terms of consequences for breach, the legislation does not explicitly detail specific offences or penalties within the determination itself. However, the nature of the Act suggests that failure to comply with the levy payment obligations could lead to enforcement actions by regulatory authorities. Although the exact penalties are not stated, non-compliance could potentially result in civil or criminal consequences depending on the severity and intent of the breach. The imposition of penalties would likely be in line with the broader legislative framework governing financial obligations and regulatory compliance in Australia.