EXPLANATORY STATEMENT
Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2014
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 2014 and relates to the 2014-15 financial year. The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013 is repealed upon commencement of this determination.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 2014-15 financial year is $10,000.
In 2013-14 APRA and Treasury reviewed the methodology for imposing levies on the finance industry. Thirteen submissions were received from industry as part of this process, and the APRA and Treasury response to submissions was released on 16 April 2014.
The finance sector has been consulted on the 2014-15 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 26 May 2014. The paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA. Fourteen 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 2014.
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 2014
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 2014 was enacted to impose a levy on authorised non-operating holding companies (NOHC) in the general insurance and authorised deposit-taking institution sectors. This determination, which was made under the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998, was introduced to address the need for funding the supervisory activities of the Australian Prudential Regulation Authority (APRA) for these sectors. The determination was issued by the Minister for Finance and was effective for the 2014-15 financial year. It replaced the previous year's determination and set the levy amount at $10,000 per NOHC, reflecting the outcome of consultations and reviews conducted by APRA and Treasury. The determination also ensures compliance with human rights by confirming its compatibility with the rights and freedoms outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2014 applies to authorised non-operating holding companies (NOHC) in the general insurance and authorised deposit-taking institution sectors, imposing a levy as mandated by the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. This determination, which specifies a levy amount of $10,000 for the 2014-15 financial year, is applicable Commonwealth-wide, reflecting the national scope of the legislation. The Act’s jurisdiction extends to all authorised non-operating holding companies within the specified sectors, ensuring a uniform application across different states and territories. The determination is effective from 1 July 2014, and while it supersedes the 2013 determination, any obligations or liabilities incurred prior to this date remain valid. Notably, the determination does not include specific exclusions or exemptions, applying broadly to the defined entities unless otherwise specified through subordinate instruments.
Key Provisions
The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2014, made under the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998, sets out the levy amount for authorised non-operating holding companies (NOHC) in the general insurance and authorised deposit-taking institution sectors for the 2014-15 financial year. According to subsection 7(1) of the Act, the determination specifies that the levy payable by a NOHC is $10,000 for that financial year. This determination replaces the Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2013 and applies from 1 July 2014, with any obligations or liabilities incurred in previous financial years remaining valid. Importantly, the commencement of this determination before its registration does not disadvantage any person or impose any liability for actions taken prior to registration.
The obligations imposed by this determination on the relevant parties, primarily authorised non-operating holding companies within the specified sectors, include the payment of the specified levy amount for the 2014-15 financial year. These companies must ensure compliance with the Act and the determination by making the required payment in a timely manner. The determination also entails adherence to any related reporting and documentation requirements that may be stipulated in other parts of the Act or in further legislative instruments.
In terms of potential consequences for non-compliance, the Act does not explicitly detail offences, penalties, or specific consequences within the determination itself. However, the overarching Act may encompass provisions that address breaches, including the imposition of fines or other penalties as deemed appropriate by the relevant authorities. For precise information on penalties, one would need to refer to the relevant sections of the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998, where such details would be outlined. It is also noteworthy that the determination is considered compatible with human rights as it does not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.