General Insurance Supervisory Levy Imposition Act 1998
No. 56, 1998
Compilation No. 6
Compilation date: 20 June 2020
Includes amendments up to: Act No. 57, 2020
Registered: 25 June 2020
About this compilation
This compilation
This is a compilation of the General Insurance Supervisory Levy Imposition Act 1998 that shows the text of the law as amended and in force on 20 June 2020 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
1 Short title
2 Commencement
3 Act binds the Crown
4 External Territories
5 Application of Act to Lloyd’s
6 Definitions
7 Imposition of general insurance supervisory levy
8 Amount of levy
9 Calculation of indexation factor
10 Regulations
Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
An Act to impose a levy on bodies to which the Insurance Act 1973 applies
1 Short title
This Act may be cited as the General Insurance Supervisory Levy Imposition Act 1998.
2 Commencement
(1) This Act commences on the commencement of the Australian Prudential Regulation Authority Act 1998.
(2) If this Act commences during a financial year (but not on 1 July of that financial year), this Act has effect in relation to that financial year subject to the modifications specified in the regulations.
3 Act binds the Crown
This Act binds the Crown in each of its capacities.
4 External Territories
This Act extends to each external Territory.
5 Application of Act to Lloyd’s
(1) This Act applies to Lloyd’s (within the meaning of section 3 of the Insurance Act 1973), at all times after the commencement of this Act, as if Lloyd’s were a body corporate authorised under that Act to carry on insurance business.
(2) For the purpose of this Act, Lloyd’s assets, at a particular time, are taken to be the amounts standing to the credit of all designated security trust funds (within the meaning of Part VII of the Insurance Act 1973) at that time.
(3) Nothing in this Act imposes levy on any Lloyd’s underwriter.
6 Definitions
In this Act, unless the contrary intention appears:
general insurance company means a body corporate that is authorised under the Insurance Act 1973 to carry on insurance business within the meaning of that Act.
indexation factor means the indexation factor calculated under section 9.
index number, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.
levy imposition day, in relation to a general insurance company for a financial year, means:
(a) if the general insurance company is a general insurance company on 1 July of the financial year—that day; or
(b) in any other case—the day, during the financial year, on which the general insurance company becomes a general insurance company.
special statutory upper limit means:
(a) for the financial year commencing on 1 July 2006—$500,000; or
(b) for a later financial year—the amount calculated by multiplying the special statutory upper limit for the previous financial year by the indexation factor for the later financial year.
statutory upper limit means:
(a) for the financial year commencing on 1 July 2020—$10,000,000; or
(b) for a later financial year—the amount calculated by multiplying the statutory upper limit for the previous financial year by the indexation factor for the later financial year.
7 Imposition of general insurance supervisory levy
Levy payable in accordance with subsection 8(3) of the Financial Institutions Supervisory Levies Collection Act 1998 is imposed.
8 Amount of levy
(1AA) The amount of levy payable by a general insurance company for a financial year is the sum of the general component and the special component for the general insurance company for the financial year.
Note: For general component, see subsections (1) to (2). For special component, see subsection (2A).
(1) Subject to subsection (2), the general component for a general insurance company for a financial year is the sum of the restricted levy component and the unrestricted levy component for the financial year.
Note: For restricted levy component, see subsection (1A). For unrestricted levy component, see subsection (1B).
(1A) The restricted levy component for the financial year is:
(a) unless paragraph (b) or (c) applies—the amount that, for the financial year, is the restricted levy percentage of the general insurance company’s levy base; or
(b) if the amount worked out under paragraph (a) exceeds the maximum restricted levy amount for the financial year—the maximum restricted levy amount; or
(c) if the amount worked out under paragraph (a) is less than the minimum restricted levy amount for the financial year—the minimum restricted levy amount.
Note: The restricted levy percentage, maximum restricted levy amount, minimum restricted levy amount and the method of working out the general insurance company’s levy base are as determined under subsection (3).
(1B) The unrestricted levy component for the financial year is the amount that, for the financial year, is the unrestricted levy percentage of the general insurance company’s levy base.
Note: The unrestricted levy percentage is as determined under subsection (3).
(2) If the levy imposition day for the general insurance company for the financial year is later than 1 July in the financial year, the general component for the general insurance company for the financial year is the amount worked out using the following formula:
(2A) The special component for a general insurance company for a financial year is:
(a) nil, if the general insurance company belongs to a class of general insurance company for which no provision is made in the Treasurer’s determination under paragraph (3)(h); or
(b) if the general insurance company belongs to a class of general insurance company for which provision is made in the Treasurer’s determination under paragraph (3)(h):
(i) unless subparagraph (ii) or (iii) applies—the amount that, for the financial year, is the special levy percentage of the general insurance company’s eligible premium income; or
(ii) if the amount worked out under subparagraph (i) exceeds the special maximum levy amount for the financial year—the special maximum levy amount; or
(iii) if the amount worked out under subparagraph (i) is less than the special minimum levy amount for the financial year—the special minimum levy amount.
Note: The special levy percentage, the special maximum levy amount and the special minimum levy amount are as determined under subsection (3).
(3) The Treasurer is, by legislative instrument, to determine:
(a) the maximum restricted levy amount for each financial year; and
(b) the minimum restricted levy amount for each financial year; and
(c) the restricted levy percentage for each financial year; and
(ca) the unrestricted levy percentage for each financial year; and
(d) how a general insurance company’s levy base is to be worked out; and
(e) the special maximum levy amount for each financial year; and
(f) the special minimum levy amount for each financial year; and
(g) the special levy percentage for each financial year; and
(h) how a general insurance company’s eligible premium income is to be worked out.
(4) An amount determined under subsection (3) as the maximum restricted levy amount for a financial year must not exceed the statutory upper limit for the financial year.
(4A) An amount determined under subsection (3) as the special maximum levy amount for a financial year must not exceed the special statutory upper limit for the financial year.
(5) The Treasurer’s determination under paragraph (3)(d) of how a general insurance company’s levy base is to be worked out is to include, but is not limited to, a determination of the day as at which the general insurance company’s levy base is to be worked out. That day must be:
(a) if the general insurance company was a general insurance company at all times from and including 17 March of the previous financial year to and including the following 30 June—a day in the period from and including that 17 March to and including the following 14 April; or
(b) if the general insurance company was not a general insurance company at all times from and including 17 March of the previous financial year to and including the following 30 June—the day after that 17 March when the general insurance company became, or becomes, a general insurance company.
(6) The Treasurer’s determination under paragraph (3)(h) of how a general insurance company’s eligible premium income is to be worked out is to include, but is not limited to, a determination of:
(a) that part of the premium income of a company that is eligible premium income; and
(b) the period for which the eligible premium income is to be worked out.
(7) A determination under subsection (3) may make different provision for different classes of general insurance company.
9 Calculation of indexation factor
(1) The indexation factor for a financial year is the number worked out by:
(a) ascertaining the index number for the most recent quarter for which the Australian Statistician has published an index number, as at the start of the day on which the Treasurer makes the first determination under subsection 8(3) of an amount or percentage for the financial year; and
(b) dividing that index number by the index number for the quarter 12 months before the quarter mentioned in paragraph (a); and
(c) adding 0.030 to the number worked out under paragraph (b).
(2) The indexation factor is to be calculated to 3 decimal places, but increased by .001 if the 4th decimal place is more than 4.
(3) Calculations under subsection (1):
(a) are to be made using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and
(b) are to be made disregarding index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).
10 Regulations
The Governor‑General may make regulations for the purposes of subsection 2(2).
Endnotes
Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.
Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.
Editorial changes
The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.
If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.
Misdescribed amendments
A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.
If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.
Endnote 2—Abbreviation key
ad = added or inserted | o = order(s) |
am = amended | Ord = Ordinance |
amdt = amendment | orig = original |
c = clause(s) | par = paragraph(s)/subparagraph(s) |
C[x] = Compilation No. x | /sub‑subparagraph(s) |
Ch = Chapter(s) | pres = present |
def = definition(s) | prev = previous |
Dict = Dictionary | (prev…) = previously |
disallowed = disallowed by Parliament | Pt = Part(s) |
Div = Division(s) | r = regulation(s)/rule(s) |
ed = editorial change | reloc = relocated |
exp = expires/expired or ceases/ceased to have | renum = renumbered |
effect | rep = repealed |
F = Federal Register of Legislation | rs = repealed and substituted |
gaz = gazette | s = section(s)/subsection(s) |
LA = Legislation Act 2003 | Sch = Schedule(s) |
LIA = Legislative Instruments Act 2003 | Sdiv = Subdivision(s) |
(md) = misdescribed amendment can be given | SLI = Select Legislative Instrument |
effect | SR = Statutory Rules |
(md not incorp) = misdescribed amendment | Sub‑Ch = Sub‑Chapter(s) |
cannot be given effect | SubPt = Subpart(s) |
mod = modified/modification | underlining = whole or part not |
No. = Number(s) | commenced or to be commenced |
Endnote 3—Legislation history
Act | Number and year | Assent | Commencement | Application, saving and transitional provisions |
General Insurance Supervisory Levy Imposition Act 1998 | 56, 1998 | 29 June 1998 | 1 July 1998 (s 2) |
|
Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 | 44, 1999 | 17 June 1999 | Sch 6 (item 20) and Sch 8 (items 22, 23): 17 June 1999 (s 3(1)) | Sch 8 (items 22, 23) |
General Insurance Supervisory Levy Imposition Amendment Act 2005 | 15, 2005 | 22 Feb 2005 | 22 Feb 2005 (s 2) | Sch 1 (item 7) |
General Insurance Supervisory Levy Imposition Amendment Act 2006 | 42, 2006 | 22 May 2006 | 23 May 2006 (s 2) | Sch 1 (item 10) |
Financial Sector Legislation Amendment (Prudential Refinements and Other Measures) Act 2010 | 82, 2010 | 29 June 2010 | Sch 5 (items 13–17): 1 July 2010 (s 2(1) item 16) | — |
Statute Law Revision Act (No. 2) 2015 | 145, 2015 | 12 Nov 2015 | Sch 4 (item 16): 10 Dec 2015 (s 2(1) item 7) | — |
General Insurance Supervisory Levy Imposition Amendment Act 2020 | 57, 2020 | 19 June 2020 | 20 June 2020 (s 2(1) item 1) | Sch 1 (item 8) |
Endnote 4—Amendment history
Provision affected | How affected |
s 6..................... | am No 15, 2005; No 42, 2006; No 57, 2020 |
s 8..................... | am No 15, 2005; No 42, 2006; No 82, 2010; No 57, 2020 |
s 9..................... | am No 44, 1999; No 15, 2005; No 145, 2015; No 57, 2020 |