EXPLANATORY STATEMENT
Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2017
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 2017 and relates to the 2017-18 financial year. The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2016 is repealed upon commencement of this determination.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 subsections 12(2) and 12(3) of the Legislation 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 2017-18 financial year is $30,000.
The finance sector has been consulted on the 2017-18 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 26 May 2017. The paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA. Five 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 2017.
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 Legislation 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 2017
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 2017 was enacted to impose a levy on authorised non-operating holding companies within the general insurance and authorised deposit-taking institution sectors, as stipulated under the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998. This Act was introduced to address the need for regulatory oversight and financial contribution from non-operating holding companies, ensuring that they contribute to the costs associated with their supervision. The determination, made by the Treasurer under the authority of the Act, sets the levy amount for the 2017-18 financial year at $30,000. The objective of this levy, as communicated through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper, is to manage the financial burden associated with the supervision of these companies while consulting with relevant industry stakeholders to ensure balanced regulation. The determination is consistent with the existing legislative framework and does not disadvantage any party as per the Legislation Act 2003.
Scope and Application
The Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2017 applies to authorised non-operating holding companies within the general insurance and authorised deposit-taking institution sectors, imposing a levy for the 2017-18 financial year. This legislative instrument is made under the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998, which allows the Treasurer to determine the amount of the levy payable by these entities for a financial year. The determination sets the levy at $30,000 and specifies that it commences on 1 July 2017, replacing the previous year's determination. Notably, any obligations or liabilities incurred under the repealed determination remain valid. The determination is consistent with legislative processes, including commencement before registration without adversely affecting rights or imposing liabilities for actions taken before registration. This legislative instrument is subject to the Legislation Act 2003 and does not require a Regulatory Impact Statement as it pertains to machinery-of-government activities. Additionally, it has been assessed for compatibility with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011, finding no engagement with applicable rights or freedoms.
Key Provisions
The main operative sections of this determination (subsection 7(1) of the Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998) allow the Minister to determine the amount of levy payable by an authorised non-operating holding company (NOHC) for a financial year. This determination specifies that the levy for the 2017-18 financial year is $30,000. The levy is imposed on authorised NOHCs in the general insurance and authorised deposit-taking institution sectors. The determination also repeals the previous levy imposition determination (Authorised Non-operating Holding Companies Supervisory Levy Imposition Determination 2016) and makes clear that any obligations or liabilities incurred in previous financial years remain valid.
The Act imposes obligations on authorised NOHCs to pay the supervisory levy as determined by the Minister for the specified financial year. The authorised NOHCs must ensure they comply with the levy requirements by making the necessary payments within the timeframe stipulated by the Act. The determination provides a clear and specific amount for the levy, facilitating compliance by the NOHCs.
The Act does not explicitly outline specific offences or penalties for non-compliance with the levy requirements. However, the general legal framework under which the Act operates implies that failure to comply with the levy requirements could result in civil or administrative penalties. These penalties might include fines or other enforcement actions as deemed appropriate by the relevant authorities. The precise nature and extent of penalties would be determined in accordance with other applicable laws and regulations, but they could potentially include significant financial penalties or other enforcement measures to ensure compliance with the supervisory levy requirements.