Overview

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2010, enacted in 2010, is a legislative instrument under the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. This Act was introduced to address a need for regulatory oversight and funding in relation to the provision of first home saver accounts (FHSA) by specified entities, including authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities. The determination imposes a levy on these entities to support the supervision of FHSA facilities. The levy for the 2010–11 financial year, however, was set at zero per cent for both the restricted and unrestricted components, reflecting the limited number of entities offering FHSA facilities and the relatively low volume of FHSA deposits at that time. This decision was made following consultations with the finance sector and in accordance with the Legislative Instruments Act 2003.

Scope and Application

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2010 applies to entities that offer First Home Saver Account facilities, specifically authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities. This determination, which commenced on 1 July 2010 for the 2010-11 financial year, establishes the supervisory levy imposed on these entities under the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. The levy is calculated based on the entities' asset values, with both restricted and unrestricted components set at 0 per cent for the specified financial year. This determination effectively means that no levy will be imposed on FHSA providers for the 2010-11 financial year due to the limited number of approved entities and the relatively small amount of FHSA deposit balances held as at December 2009. The determination revokes the previous First Home Saver Account Providers Supervisory Levy Imposition Determination 2009 upon commencement but maintains any existing obligations or liabilities from prior financial years.

Key Provisions

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2010 (F2010L01907) sets out the specific levy details for the 2010-11 financial year on entities providing first home saver accounts (FHSA). According to section 7(5) of the First Home Saver Account Providers Supervisory Levy Imposition Act 2008, the Minister is authorised to determine several key aspects of the levy, including the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating the asset value of leviable FHSA entities. This determination specifies that for the 2010-11 financial year, the restricted component of the levy will be 0 per cent of assets held by the entity, with a minimum of $0 and a maximum of $0. Similarly, the unrestricted component will also be 0 per cent of the assets held by the entity. Essentially, this means that FHSA providers will not be subject to any levy for the 2010-11 financial year due to the limited number of approved FHSA entities (19 authorised deposit taking institutions and one superannuation trustee) and the relatively small amount of FHSA deposit balances held ($60 million) as at December 2009. The obligations imposed on the entities governed by this Act primarily involve ensuring they comply with the specified levy percentages and calculation methods for the 2010-11 financial year. These entities must accurately calculate their FHSA assets and ensure they adhere to the 0 per cent levy requirement. Given the specifics of this determination, the entities will not need to remit any levy for the specified financial year. This is a significant departure from previous years where a levy was in place, and entities were required to submit their levy payments accordingly. In terms of potential breaches and consequences, the Explanatory Statement does not detail specific penalties or consequences for non-compliance with the levy requirements for the 2010-11 financial year, as no levy is imposed. However, under the general provisions of the First Home Saver Account Providers Supervisory Levy Imposition Act 2008 and other relevant financial regulations, failure to comply with financial obligations could lead to civil or criminal penalties. These may include fines or legal action, depending on the severity and intent of the non-compliance. It is important for entities to stay informed about their obligations and ensure accurate reporting and compliance to avoid any adverse consequences.