First Home Saver Account Providers Supervisory Levy Imposition Determination 2012

Administered by Department of the Treasury

Legislation au F2012L01446 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

First Home Saver Account Providers Supervisory Levy Imposition Determination 2012

This determination relates to a levy imposed on providers of first home saver accounts by the First Home Saver Account Providers Supervisory Levy Imposition Act 2008.  The Act refers to three types of entities that provide FHSA facilities: authorised deposit taking institutions, life insurers and trustees of public offer superannuation entities.  Those entities offering FHSA facilities will be subject to a separate levy.

This determination commences on 1 July 2012 and relates to the 2012‑13 financial year.  The First Home Saver Account Providers Supervisory Levy Imposition Determination 2011 is revoked upon commencement of this determination.  Consistent with section 50 of the Acts Interpretation Act 1901, any obligation or liability incurred in previous financial years remains valid.

Subsection 7(5) of the First Home Saver Account Providers Supervisory Levy Imposition Act 2008 allows the Minister to determine:

a)      the maximum restricted levy amount for each financial year;

b)     the minimum restricted levy amount for each financial year;

c)      the restricted levy percentage for  each financial year;

d)     the unrestricted levy percentage for each financial year; and

e)      how a leviable FHSA entity’s asset value is to be calculated.

This determination provides that the restricted component for the 2012‑13 levy will be calculated at zero per cent of the sum of the balances of FHSA trusts held by the entity, subject to a minimum amount of $0 and a maximum amount of $0.  The unrestricted component of the 2012-13 levy will be calculated at zero per cent of the sum of the balances of FHSA trusts. 

In effect, this means that FHSA providers will not be levied in relation to the 2012‑13 financial year, considering the limited number of approved FHSA entities (17 ADIs and one superannuation trustee) and the small amount of FHSA deposit balances held ($278 million) as at 31 December 2011. 

The finance sector has been consulted on the 2012‑13 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 1 June 2012.  The paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA, and sought industry views on a range of proposed scenarios.  Fifteen submissions were received during the consultation process, and no submissions specifically raised issues in relation to the First Home Saver Account Providers Supervisory Levy Imposition Determination 2012.

The Office of Best Practice Regulation has also been consulted on the 2012-13 supervisory levies and has advised that a Regulation Impact Statement is not required as the proposals are machinery‑of‑government in nature.  As was noted in the 2012-13 supervisory levies discussion paper, APRA has a regular review process to monitor the implementation of the levies.  In 2012‑13, the current levy review process will be merged with the development of a comprehensive Cost Recovery Impact Statement (CRIS).  Industry will continue to be consulted on the development of the CRIS.

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

 

First Home Saver Account Providers Supervisory Levy Imposition Determination 2012

 

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 on providers of first home saver accounts by the First Home Saver Account Providers Supervisory Levy Imposition Act 2008.  The Act refers to three types of entities that provide FHSA facilities: authorised deposit taking institutions, life insurers and trustees of public offer superannuation entities.  Those entities offering FHSA facilities will be subject to a separate levy.

Subsection 7(5) of the First Home Saver Account Providers Supervisory Levy Imposition Act 2008 allows the Minister to determine:

a)      the maximum restricted levy amount for each financial year;

b)     the minimum restricted levy amount for each financial year;

c)      the restricted levy percentage for  each financial year;

d)     the unrestricted levy percentage for each financial year; and

e)      how a leviable FHSA entity’s asset value is to be calculated.

 

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 First Home Saver Account Providers Supervisory Levy Imposition Determination 2012, enacted by the Australian Government, addresses the need for regulatory oversight and supervision of entities providing first home saver accounts. This legislation, which came into effect on 1 July 2012 for the 2012-13 financial year, is a response to the requirements set forth in the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. The Act establishes a supervisory levy on authorised deposit taking institutions, life insurers, and trustees of public offer superannuation entities that offer first home saver accounts. The objective of this levy is to ensure that these entities are adequately regulated and supervised to protect the interests of account holders. The determination is made by the Minister under the authority granted by the Act and specifies the restricted and unrestricted levy percentages for the specified financial year, ultimately leading to the conclusion that no levy will be imposed on these entities for the 2012-13 financial year due to the small number of entities involved and the relatively low balances held.

Scope and Application

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2012 applies to entities providing first home saver accounts, specifically authorised deposit taking institutions, life insurers, and trustees of public offer superannuation entities. This determination is an implementation of the First Home Saver Account Providers Supervisory Levy Imposition Act 2008 and governs the levy imposed on these entities. It applies across the Commonwealth of Australia and specifically relates to the 2012-13 financial year. The determination provides for the calculation of the restricted and unrestricted components of the levy, setting both at zero percent for the specified financial year, effectively imposing no levy on FHSA providers for that year. The determination also revokes the previous year's levy imposition upon its commencement on 1 July 2012, although any obligations or liabilities incurred in previous financial years remain valid. The Minister's authority under subsection 7(5) of the Act to determine the levy percentages and asset value calculation methods is exercised by this determination. The legislation does not specify exclusions or exemptions, but the practical impact is that no levy is imposed for the 2012-13 financial year due to the limited number of entities and the small amount of FHSA deposit balances.

Key Provisions

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2012 (F2012L01446) governs the imposition of a levy on entities that provide First Home Saver Account (FHSA) facilities. Section 7(5) of the First Home Saver Account Providers Supervisory Levy Imposition Act 2008 grants the Minister the authority to determine various aspects of the levy, including the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating a leviable FHSA entity’s asset value for the specified financial year. For the 2012-13 financial year, this determination specifies that the restricted component of the levy will be zero percent of the sum of FHSA trust balances, with no minimum or maximum amount, while the unrestricted component will also be zero percent of the same sum. This effectively means that no levy will be imposed on FHSA providers for the 2012-13 financial year, considering the small number of approved entities and the limited FHSA deposit balances held as of December 31, 2011. Entities subject to this determination—authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities offering FHSA facilities—are required to comply with the specified levy rates for the financial year. These entities must ensure that their FHSA trust balances are accurately reported and that any calculations for levy purposes adhere to the prescribed methodology outlined in the determination. They must also be prepared to provide relevant data and documentation to the relevant authorities upon request, as part of the oversight and compliance processes. The legislation does not outline specific offences, penalties, or consequences for non-compliance in the determination itself. However, general provisions under the First Home Saver Account Providers Supervisory Levy Imposition Act 2008 may apply, which could include fines or other penalties for failure to comply with the Act's requirements. The Act empowers the Australian Prudential Regulation Authority (APRA) to take enforcement actions against entities that do not comply with the supervisory levy requirements. While the determination does not specify maximum penalties, entities are expected to adhere strictly to the legislative requirements to avoid potential enforcement actions by APRA or other relevant authorities.

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Definitions & Interpretation
Levy Imposition
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.