Overview

The First Home Saver Account Providers Supervisory Levy Imposition Act 2008 was enacted by the Australian Parliament on 30 September 2008 and came into effect on 1 July 2009. The Act was introduced to address the need for a regulatory framework to oversee the provision of first home saver accounts, which are designed to assist first home buyers in saving for a deposit on their first home. This legislation applies to authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities that offer first home saver account facilities. The Act was developed in consultation with the finance sector, as indicated by the Treasury and Australian Prudential Regulation Authority Consultation Paper released on 10 June 2009, and it is intended to establish a supervisory levy on these entities to support the regulation of first home saver accounts. The Explanatory Statement for the First Home Saver Account Providers Supervisory Levy Imposition Determination 2009 explains that this legislative instrument is made under the Legislative Instruments Act 2003 and sets out the details of the levy for the 2009-10 financial year, including the restricted and unrestricted levy percentages, which were set at 0 per cent for that year.

Scope and Application

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2009 applies to entities providing First Home Saver Account (FHSA) facilities within the Australian finance sector. Specifically, it targets authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities that offer FHSA facilities. This legislation is effective from 1 July 2009 and pertains to the 2009-10 financial year, imposing a levy on entities offering FHSAs. However, for the specified financial year, the determination sets both the restricted and unrestricted levy percentages at 0 per cent, effectively imposing no levy as the sector is in its developmental stage. The Act allows for the determination of levy amounts and percentages by the Minister, providing flexibility for future financial years. The scope of the Act is national, applying across the Commonwealth of Australia, and it operates under the legislative framework established by the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. The Act does not explicitly state exclusions, exemptions, or thresholds within this determination, though it is subject to legislative amendments and subordinate instruments that could alter its application in subsequent years.

Key Provisions

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2009 (the Determination) outlines the provisions for the levy imposed on providers of First Home Saver Accounts (FHSAs) under the First Home Saver Account Providers Supervisory Levy Imposition Act 2008 (the Act). The Determination specifies the calculation of the levy for the 2009-10 financial year. Section 7(5) of the Act allows the Minister to determine various aspects of the levy, including the restricted and unrestricted levy percentages, and the method for calculating an entity's asset value (subsection 7(5)(a)-(e)). Entities subject to this levy include authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities that offer FHSA facilities. For the 2009-10 financial year, the Determination sets the restricted component of the levy at 0 per cent of assets, with a minimum of $0 and a maximum of $0. The unrestricted component is also set at 0 per cent of assets. Consequently, FHSA providers are not subject to a levy for this financial year, reflecting the early stage of FHSA entity development and their asset sizes. Under the Act, FHSA providers must comply with the levy calculations specified in the Determination. They are required to accurately determine their asset values as per the methodology outlined in the Determination and ensure that any levies calculated are correctly reported and paid, if applicable. Additionally, these entities must maintain records and documentation that substantiate their asset values and levy calculations, as these may be subject to review by the relevant authorities. Failure to comply with the provisions of the Act or the Determination may result in legal consequences. While specific offences and penalties are not detailed in the provided text, breaches of similar financial regulations typically result in civil or criminal penalties. These may include fines, restitution payments, or other financial penalties. In serious cases, there could be potential for criminal prosecution, depending on the nature and extent of the breach. It is essential for FHSA providers to adhere strictly to the requirements set out in the Determination to avoid any legal repercussions.