Overview

The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2012 was enacted by the Australian Parliament and came into effect on 1 July 2012. This legislation was introduced to establish the amount of levy payable by authorised non-operating holding companies in the general insurance and authorised deposit-taking institution sectors for the 2012-13 financial year. The Act addresses the need to regulate and supervise these companies through a financial levy, which is consistent with the provisions of the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. The policy objective behind this levy is to ensure that authorised non-operating holding companies contribute to the costs of their supervision, thereby supporting the financial stability and integrity of the sectors they operate within. The determination revokes the previous Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2011 and ensures that any obligations or liabilities incurred in previous financial years remain valid.

Scope and Application

The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2012 applies to authorised non-operating holding companies within the general insurance and authorised deposit-taking institution sectors, imposing a specific levy amount for the 2012-13 financial year. This determination is made under the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998, which empowers the Minister to determine the levy payable by these entities. The levy amount is set at $10,000 for the specified financial year, and this determination supersedes the Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2011 upon its commencement on 1 July 2012. The legislation applies on a Commonwealth level, and any obligations or liabilities incurred in prior financial years remain valid. This determination is a legislative instrument under the Legislative Instruments Act 2003, and it has been assessed for compatibility with human rights, finding no adverse implications under the Human Rights (Parliamentary Scrutiny) Act 2011. The determination has undergone consultation processes with relevant industry stakeholders, including the Treasury and the Australian Prudential Regulation Authority (APRA), ensuring that the views and impacts on the regulated sectors were considered.

Key Provisions

The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2012 sets out the levy payable by authorised non-operating holding companies in the general insurance and authorised deposit-taking institution sectors for the 2012-13 financial year (subsection 7(1) of the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998). Specifically, the determination fixes the levy at $10,000 for the 2012-13 financial year. The determination was developed following consultation with the finance sector, including a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper and feedback from fifteen submissions. The Office of Best Practice Regulation advised that a Regulation Impact Statement was not required as the proposals were machinery-of-government in nature. The determination also states that the previous determination for the 2011-12 financial year is revoked upon its commencement but any obligations or liabilities incurred under that determination remain valid (section 50 of the Acts Interpretation Act 1901). The determination imposes an obligation on authorised non-operating holding companies to pay the specified supervisory levy for the 2012-13 financial year. This levy is an annual charge imposed to fund the costs of supervision and regulation of these companies by APRA. Companies must calculate their levy liability based on the provisions of the determination and make the payment by the due date specified in the Act or any regulations made under it. APRA will oversee compliance with the levy requirements and may take enforcement action against companies that fail to meet their obligations. There are no specific offences, penalties, or consequences outlined in the determination itself, but the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998 likely includes provisions for enforcement and penalties for non-compliance. Typically, such legislation may provide for financial penalties for late payment or non-payment of the levy, as well as potential legal action against companies that persistently fail to comply with their obligations. The exact penalties would be detailed in the Act or any subsidiary legislation, but could include fines or other sanctions designed to ensure compliance with the levy requirements.