First Home Saver Account Providers Supervisory Levy Imposition Determination 2015

Administered by Department of the Treasury

Legislation au F2015L01105 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

First Home Saver Account Providers Supervisory Levy Imposition Determination 2015

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 2015 and relates to the 2015‑16 financial year.  The First Home Saver Account Providers Supervisory Levy Imposition Determination 2014 is repealed upon commencement of this determination.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 2015‑16 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 2015-16 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 2015‑16 financial year.

The finance sector has been consulted on the 2015‑16 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 20 May 2015.  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.  Eight 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 2015.

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 2015

 

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 2015 is a legislative instrument that concerns the levy imposed on providers of first home saver accounts, as stipulated in the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. Enacted by the Australian government, the 2008 Act sought to address the need for regulatory oversight and financial stability within the entities offering first home saver accounts, namely authorised deposit-taking institutions, life insurers, and trustees of public offer superannuation entities. The 2015 determination specifies the levy parameters for the 2015–16 financial year, setting both the restricted and unrestricted components of the levy at zero percent, thereby exempting FHSA providers from any levy for that year. This measure was communicated to the finance sector through a discussion paper, and no specific concerns were raised regarding this particular determination. The legislative instrument adheres to the requirements of the Legislative Instruments Act 2003 and is deemed compatible with human rights as per the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The First Home Saver Account Providers Supervisory Levy Imposition Determination 2015 applies to entities that offer first home saver accounts (FHSA), which include authorised deposit taking institutions, life insurers, and trustees of public offer superannuation entities. This determination specifies the levy percentages for the 2015-16 financial year, setting both the restricted and unrestricted components of the levy at zero per cent, effectively exempting FHSA providers from the levy for this period. The application of the Act is nationwide, as it falls under the Commonwealth jurisdiction. This determination does not specify any exclusions or exemptions, and it is made pursuant to the First Home Saver Account Providers Supervisory Levy Imposition Act 2008. The Act allows the Treasurer to establish the levy parameters through legislative instruments, and any obligations or liabilities from previous years remain valid. The determination commenced before its registration to ensure consistency with relevant legislative practices, without adversely affecting any rights or imposing liabilities prior to registration.

Key Provisions

The main operative sections of the First Home Saver Account Providers Supervisory Levy Imposition Determination 2015 (subsection 7(5) of the First Home Saver Account Providers Supervisory Levy Imposition Act 2008) allow the Treasurer to determine the levy percentages for financial year 2015-16. This determination specifies that for the 2015-16 financial year, the restricted component of the levy is set at zero per cent and the unrestricted component is also zero per cent. Therefore, for this financial year, First Home Saver Account (FHSA) providers will not be subject to any levy. 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. These entities offering FHSA facilities will be subject to the supervisory levy. The obligations imposed on the parties governed by this Act primarily revolve around compliance with the specified levy amounts. The entities subject to the levy must ensure they adhere to the financial year-specific levy percentages set out in the determination. Although the 2015-16 levy amounts to zero per cent, entities must still report and maintain accurate records of their FHSA balances as required. There are no specific actions required from entities in this financial year due to the zero levy rate, but they must remain compliant with the legislative framework in anticipation of future levy impositions. The determination does not explicitly outline penalties or civil/criminal consequences for breach as the levy for the 2015-16 financial year is zero per cent. However, under the First Home Saver Account Providers Supervisory Levy Imposition Act 2008, failure to comply with the levy requirements could result in penalties as prescribed by the Act. These penalties may include fines or other sanctions, depending on the nature and severity of the breach. The Act mandates that any obligation or liability incurred in previous financial years remains valid, ensuring entities are held accountable for compliance even if current levies are temporarily suspended.

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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.