Overview

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2014 was enacted in 2014 and relates to a levy imposed on entities that provide first home saver accounts, as specified under the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. The Act was introduced to address the need for a structured supervisory levy system for entities providing first home saver accounts, including authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities. This legislation was enacted by the Australian Parliament and aims to ensure adequate oversight and financial stability within the first home saver account sector. The determination specifies the details of the levy for the 2014-15 financial year, setting the restricted and unrestricted components of the levy at zero percent for the limited number of approved FHSA entities and their small deposit balances. This decision followed a review process that included consultations with the industry and submissions from stakeholders. The determination is consistent with the legislative instruments and human rights frameworks applicable in Australia, ensuring that the supervisory levies do not adversely affect the rights of any person and are compatible with the human rights and freedoms recognised under international instruments.

Scope and Application

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2014 applies to specific entities offering First Home Saver Account (FHSA) facilities, namely authorised deposit taking institutions, life insurers, and trustees of public offer superannuation entities. These entities will be subject to a supervisory levy imposed under the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. The levy pertains to the 2014-15 financial year and includes details on the restricted and unrestricted levy percentages, the maximum and minimum restricted levy amounts, and the method for calculating a leviable FHSA entity's levy base. The determination, which repeals the previous First Home Saver Account Providers Supervisory Levy Imposition Determination 2013, takes effect on 1 July 2014, prior to its registration, without adversely affecting any existing rights or liabilities. The application of the Act is limited to the Commonwealth jurisdiction, and it does not specify any exclusions, exemptions, or thresholds beyond those outlined in the determination itself. The scope of the Act can be extended or further defined through subordinate instruments, as permitted by the First Home Saver Account Providers Supervisory Levy Imposition Act 2008.

Key Provisions

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2014 (the Determination) outlines the levy imposed on entities providing first home saver accounts (FHSA), as established under the First Home Saver Account Providers Supervisory Levy Imposition Act 2008 (the Act) (section 7(5)). Specifically, the Determination sets out the restricted and unrestricted levy percentages for the 2014-15 financial year. For this financial year, the restricted component of the levy will be calculated at zero per cent of the sum of the balances of FHSA trusts or FHSAs, subject to a minimum of $0 and a maximum of $0 (subsection 3(1)). Similarly, the unrestricted component of the levy for 2014-15 will also be zero per cent of the sum of the balances of FHSA trusts or FHSAs (subsection 3(2)). This means that FHSA providers will not be levied for the 2014-15 financial year due to the limited number of approved FHSA entities and the relatively small amount of FHSA deposit balances held. The entities subject to this levy are authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities that offer FHSA facilities. The Determination identifies these entities and specifies that they are subject to the levy. The Determination also states that it repeals the First Home Saver Account Providers Supervisory Levy Imposition Determination 2013 upon its commencement on 1 July 2014, and any obligations or liabilities incurred in previous financial years remain valid (subsection 6(1) and (2)). It is important to note that the commencement of this Determination before its registration does not affect the rights of any person adversely or impose any liability in respect of anything done or omitted before registration (subsection 12(2) of the Legislative Instruments Act 2003). The Determination imposes certain obligations on FHSA providers, primarily to ensure compliance with the specified levy percentages for the 2014-15 financial year. Providers must accurately calculate their levy base as per the provisions outlined in the Determination and ensure that no levy is due for the specified financial year. Furthermore, the Determination requires FHSA providers to maintain records and documentation that support their compliance with the levy requirements. Failure to comply with these obligations may result in legal consequences. There are no explicit offences, penalties, or civil/criminal consequences mentioned in the Determination for breaches of the levy requirements. However, non-compliance with the Act or the Determination could potentially lead to administrative actions, fines, or other penalties as prescribed under the broader regulatory framework governing financial institutions in Australia. The specific penalties would depend on the nature and severity of the breach, as well as any applicable laws and regulations.