EXPLANATORY STATEMENT
Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2015
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 2015 and relates to the 2015-16 financial year. The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2014 is repealed upon commencement of this determination.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 2015-16 financial year is $10,000.
The finance sector has been consulted on the 2015-16 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 20 May 2015. The paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA. Eight 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 2015.
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 2015
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 2015 was enacted to address the need for a supervisory levy on authorised non-operating holding companies (NOHC) within the general insurance and authorised deposit-taking institution sectors. This levy is imposed under the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. The determination was made by the Minister for Finance in accordance with the authority provided by the Act and commenced on 1 July 2015, applicable to the 2015-16 financial year. It supersedes the previous Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2014. The policy objective behind this determination is to ensure that authorised NOHCs contribute to the supervisory costs associated with their operations, thereby supporting the regulatory oversight and stability of the financial sector. The levy amount was set at $10,000, following consultations with the finance sector and regulatory authorities.
Scope and Application
The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2015 applies to authorised non-operating holding companies within the general insurance and authorised deposit-taking institution sectors. These companies are subject to a levy imposed under the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. The determination specifies the amount of levy payable by these entities for the 2015-16 financial year, which is $10,000. The Act and its subsequent determinations are applicable on a Commonwealth level, with the levy applying uniformly across the relevant sectors without regard to state or territory boundaries. The determination does not create any exclusions, exemptions, or thresholds beyond what is specified within the Act itself, and its application can be extended or restricted through subordinate instruments as necessary. The determination comes into effect on 1 July 2015, with any obligations or liabilities incurred in previous financial years remaining valid, and is designed to ensure that the rights of any person are not disadvantageously affected by its early commencement.
Key Provisions
The primary operative section of the Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2015 is subsection 7(1) of the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. This subsection allows the Minister to determine the amount of the levy payable by authorised non-operating holding companies (NOHC) for a financial year. According to the determination, for the 2015-16 financial year, the levy payable by a NOHC is set at $10,000. This levy is specifically targeted at authorised NOHCs within the general insurance and authorised deposit-taking institution sectors, as outlined in the Act.
The Act imposes several obligations and requirements on the parties it governs. Firstly, it mandates that the Minister, under subsection 7(1), must determine the levy amount for each financial year. The determination for the 2015-16 financial year was made in accordance with this provision and is specified in the legislative instrument. Additionally, the Act ensures that any obligation or liability incurred in previous financial years remains valid, as per section 7 of the Acts Interpretation Act 1901. This ensures continuity and predictability for the regulated entities.
In terms of potential consequences for non-compliance, the determination does not explicitly outline offences or penalties for breach. However, the nature of the Act implies that failure to pay the specified levy could result in legal and financial repercussions. While the exact penalties are not detailed in the determination, breaches of financial regulations typically carry significant civil and potentially criminal penalties under Australian law. The specific consequences would depend on the relevant provisions of the Act and other applicable legislation.