First Home Saver Account Providers Supervisory Levy Imposition Determination 2013

Administered by Department of the Treasury

Legislation au F2013L01303 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

First Home Saver Account Providers Supervisory Levy Imposition Determination 2013

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).  The Act refers to three types of entities that provide First Home Saver Account (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 2013 and relates to the 2013‑14 financial year.  The First Home Saver Account Providers Supervisory Levy Imposition Determination 2012 is revoked 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 subsection 12(2) of the Legislative Instruments Act 2003.

Subsection 7(5) of the Act requires the Treasurer, by legislative instrument, 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 levy base is to be worked out.

This determination provides that the restricted component for the 2013‑14 levy will be calculated at zero per cent of the sum of the balances of FHSA trusts or FHSAs held by the entity, subject to a minimum amount of $0 and a maximum amount of $0.  The unrestricted component of the 2013-14 levy will be calculated at zero per cent of the sum of the balances of FHSA trusts or FHSAs. 

In effect, this means that FHSA providers will not be levied in relation to the 2013‑14 financial year, considering the limited number of approved FHSA entities (18 ADIs and one superannuation trustee) and the small amount of FHSA deposit balances held ($401 million) as at 31 December 2012. 

The finance sector has been consulted on the 2013‑14 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 31 May 2013.  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.  Four submissions were received during the consultation process, and no submission specifically raised issues in relation to the First Home Saver Account Providers Supervisory Levy Imposition Determination 2013.

APRA and Treasury periodically review the methodology for imposing levies on the finance industry with submissions received from industry.  The full range of issues raised in the methodology review will be considered and a formal response and position paper prepared by Treasury.  As part of the review, further consultation will be undertaken with stakeholders, with a view to responding to identified issues in the context of the 2014-15 levies process.

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 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 2013

 

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 2013, enacted to implement the First Home Saver Account Providers Supervisory Levy Imposition Act 2008, addresses the need to impose a levy on specific entities that offer first home saver accounts. The Act was introduced to ensure that authorised deposit taking institutions, life insurers, and trustees of public offer superannuation entities are subject to a levy aimed at supervising their operations. This levy aims to manage and monitor the financial activities related to first home saver accounts effectively. The determination was made by the Treasurer under the authority of the Act and is intended to provide clarity and structure for the 2013-14 financial year, effectively revoking the previous determination. The policy objective is to maintain a stable financial environment while ensuring that the entities involved are adequately supervised.

Scope and Application

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2013 applies to providers of first home saver accounts, specifically authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities. The levy, as outlined in the First Home Saver Account Providers Supervisory Levy Imposition Act 2008, imposes a financial obligation on these entities that offer FHSA facilities. The scope of the legislation is national, given its Commonwealth reach, affecting financial entities across Australia. This determination, which commences on 1 July 2013 and pertains to the 2013-14 financial year, revokes the previous year's levy imposition determination, ensuring continuity while allowing for adjustments based on new fiscal year data and regulatory insights. The determination is made under the authority of the Act and does not disadvantage any person, aligning with legislative practices that allow for commencement prior to registration. Notably, this specific determination sets both the restricted and unrestricted components of the levy at zero per cent for the 2013-14 financial year, reflecting the low number of FHSA entities and the minimal FHSA balances at the end of 2012.

Key Provisions

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2013 (subsection 7(5)) specifies the levy parameters for the 2013–14 financial year. It sets both the restricted and unrestricted components of the levy at zero percent, effectively exempting providers from any levy for that year. This decision aligns with the limited number of entities offering FHSA facilities (18 authorised deposit-taking institutions and one superannuation trustee) and the relatively small FHSA deposit balance of $401 million as of 31 December 2012. The determination revokes the 2012 version and commences on 1 July 2013, though it is registered later without affecting existing obligations or liabilities. Consistent with the Acts Interpretation Act 1901, any pre-existing obligations or liabilities remain valid. The entities governed by this determination, which include authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities offering FHSA facilities, must adhere to the specified levy rates. For the 2013–14 financial year, they are exempt from any levy. These entities are required to maintain records and calculations in accordance with the provisions outlined in the determination, ensuring that their FHSA balances are accurately reported and that any potential levy amounts are correctly calculated, though none are due for 2013–14. The calculation method for the levy base is detailed, although no levy is applicable for the specified period. Breach of the requirements under this determination could lead to financial penalties, although none are applicable for the 2013–14 financial year due to the zero percent levy. Typically, failure to comply with the Act’s provisions could result in civil or criminal penalties, depending on the nature and severity of the breach. The Act does not specify maximum penalties in this context but implies that non-compliance could result in enforcement actions by the relevant authorities. The human rights compatibility statement confirms that the determination does not engage any rights or freedoms, ensuring that it is consistent with international human rights standards.

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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.