Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013

Administered by Department of the Treasury

Legislation au F2013L01310 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013

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

This determination commences on 1 July 2013 and relates to the 2013‑14 financial year.  The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2012 is revoked upon commencement of this determination.  Consistent with section 7 of the Acts Interpretation Act 1901, any obligation or liability incurred in previous financial years remains valid.

The determination will commence before it is registered.  Commencement prior to registration, however, does not disadvantageously affect the rights of any person as at the date of registration or impose any liability on any person in respect of anything done or omitted to be done before the date of registration.  Commencement prior to registration is therefore consistent with subsection 12(2) of the Legislative Instruments Act 2003.

Subsection 7(1) of the Act requires the Treasurer to determine, by legislative instrument, the amount of levy payable by a NOHC for a financial year.

The determination provides that the amount of levy payable by a NOHC in relation to the 2013‑14 financial year is $10,000.

The finance sector has been consulted on the 2013‑14 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 31 May 2013.  The paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA.  Four submissions were received during the consultation process, and no submission specifically raised issues in relation to the Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013.

APRA and Treasury periodically review the methodology for imposing levies on the finance industry with submissions received from industry.  The full range of issues raised in the methodology review will be considered and a formal response and position paper prepared by Treasury.  As part of the review, further consultation will be undertaken with stakeholders, with a view to responding to identified issues in the context of the 2014-15 levies process.

The Office of Best Practice Regulation has previously advised that a Regulatory Impact Statement is not required as supervisory levies are considered machinery‑of‑government in nature. 

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

A statement of compatibility with human rights for the purposes of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is set out in Attachment 1.


Attachment 1

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

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.

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.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013 was enacted to implement the levy on authorised non-operating holding companies (NOHC) in the general insurance and authorised deposit-taking institution sectors as required by the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. This Act was introduced to address the need for regulatory oversight and financial support for the supervision of NOHCs, which are companies that hold shares or interests in other companies but do not engage in the primary business activities of those companies. The levy serves to fund the supervision of these entities by the Australian Prudential Regulation Authority (APRA) and Treasury. The determination was made by the Minister for Finance, in accordance with subsection 7(1) of the Act, and sets the levy amount for the 2013-14 financial year at $10,000. The policy objective is to ensure adequate funding for the regulatory oversight of NOHCs, thereby maintaining financial stability and protecting the interests of consumers and the broader financial system.

Scope and Application

The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013 applies to authorised non-operating holding companies (NOHC) within the general insurance and authorised deposit-taking institution sectors. This legislation imposes a levy on these entities for the 2013-14 financial year, and the amount of the levy has been set at $10,000 as determined by the Treasurer under the provisions of the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. The scope of this Act is limited to financial institutions and entities that meet the criteria of being a non-operating holding company within these sectors. The Act operates on a Commonwealth level, with its provisions binding across the nation, as it is a legislative instrument under the Legislative Instruments Act 2003. The determination does not include specific exclusions or exemptions, and the levy applies uniformly to all eligible entities without thresholds. The Act’s reach is governed by subordinate instruments and any future amendments will be determined through similar legislative processes.

Key Provisions

The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013, under the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998 (the Act), outlines the specific levy amount for authorised non-operating holding companies (NOHC) in the general insurance and authorised deposit-taking institution sectors for the 2013-14 financial year. Section 7(1) of the Act mandates the Treasurer to determine the levy amount by legislative instrument, and this determination sets the levy at $10,000 for the specified financial year (subsection 7(1)). This determination commences on 1 July 2013, and it replaces the previous year's levy determination. Authorised non-operating holding companies within the prescribed sectors must comply with the levy requirements set out in this determination. These companies are obligated to pay the specified levy amount to the relevant authorities by the deadlines stipulated in the Act. Compliance involves ensuring accurate financial reporting and timely payment of the levy to avoid any penalties or legal consequences. Breach of the levy payment obligations under the Act can lead to various consequences. The Act does not explicitly state the penalties for non-compliance; however, generally, failure to meet these obligations can result in financial penalties or legal actions. The exact penalties would be determined by the relevant authorities based on the specific circumstances of the breach. It is crucial for authorised non-operating holding companies to adhere to the requirements to avoid any adverse legal or financial repercussions.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.