Overview

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2011, which commenced on the day after its registration, addresses the need for a levy on providers of first home saver accounts, as mandated by the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. The Act itself was enacted to provide a regulatory framework for entities offering FHSA facilities, namely authorised deposit taking institutions, life insurers, and trustees of public offer superannuation entities. This determination, issued by the Minister under the authority of the Act, specifies the parameters for the 2011-12 financial year, including the restricted and unrestricted levy percentages, both of which were set at zero for that financial year due to the limited number of entities and the small amount of FHSA deposit balances. The determination also revokes the previous year's levy imposition, ensuring that the financial obligations and liabilities from prior years remain valid as per section 50 of the Acts Interpretation Act 1901.

Scope and Application

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2011 applies to specific entities providing First Home Saver Account (FHSA) facilities, including authorised deposit taking institutions, life insurers, and trustees of public offer superannuation entities. These entities are subject to a levy as stipulated by the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. The levy is imposed on these entities to supervise and regulate their FHSA operations. The determination applies nationally across Australia, falling under Commonwealth jurisdiction. It commences on the day after its registration and is effective for the 2011-12 financial year, revoking the previous determination from 1 July 2011. Obligations or liabilities incurred in previous financial years remain valid, consistent with section 50 of the Acts Interpretation Act 1901. The Minister is empowered to determine various aspects of the levy, such as the restricted and unrestricted levy percentages and the calculation of leviable FHSA entities’ asset values. For the 2011-12 financial year, the restricted component of the levy is set at zero per cent, and the unrestricted component is also zero per cent, effectively meaning no levy will be imposed on FHSA providers due to the limited number of entities and the small amount of FHSA deposit balances. This determination is a legislative instrument under the Legislative Instruments Act 2003.

Key Provisions

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2011 (subsection 7(5)) outlines the specific components of the levy imposed on entities providing first home saver accounts (FHSA) for the 2011-12 financial year. The key sections (subsections 7(5)(a)-(e)) of the Act allow the Minister to determine the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the calculation of a leviable FHSA entity’s asset value. For the 2011-12 financial year, the determination sets the restricted levy at zero per cent, with no minimum or maximum amount, and the unrestricted levy also at zero per cent. Consequently, FHSA providers will not be subject to a levy for this financial year due to the limited number of approved entities and the relatively small amount of FHSA deposit balances. The Act imposes specific obligations on authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities that provide FHSA facilities. These entities must comply with the requirements of the First Home Saver Account Providers Supervisory Levy Imposition Determination 2011. They need to ensure that their FHSA account balances are accurately reported and that any applicable levies are calculated according to the determination. Given the zero per cent levy for the 2011-12 financial year, these entities have the immediate obligation to confirm their FHSA account balances and ensure compliance with the reporting requirements. In terms of offences, penalties, and consequences, the Act does not specify particular penalties for non-compliance with the 2011-12 levy requirements, as the levy itself is set at zero per cent. However, non-compliance with the reporting and other obligations under the Act could potentially lead to broader legal consequences. For instance, failure to accurately report FHSA account balances or non-compliance with other obligations could result in administrative penalties or legal action. While the specific maximum penalties are not outlined in this determination, it is important to adhere to the reporting and compliance requirements to avoid any potential repercussions under the Act.