Insurance Supervisory Levies Collection Regulations (Amendment) 1994 No. 323
EXPLANATORY STATEMENT
Statutory Rules 1994 No. 323
Issued by Authority of the Treasurer
Insurance Supervisory Levies Collection Act 1989
Insurance Supervisory Levies Collection Regulations (Amendment)
Section 12 of the Insurance Supervisory Levies Collection Act 1989 (the Act) provides that the Governor-General may make regulations for the purposes of the Act and in particular, to provide for exemptions from levy and for remissions of levy.
The Act provides for the collection of annual supervisory levies imposed on authorised general insurers and Lloyd's, and registered life offices by the General insurance Levies Act 1989 and the Life Insurance supervisory Levy Act 1989 respectively. The Act is aimed at recovering the ongoing cost of supervision of such bodies under the Insurance Act 1973 and the Life Insurance Act 1945 by the Insurance and Superannuation Commissioner.
Regulation 3 of the Insurance Supervisory Levies Collection Regulations allows for remission from the full amount of levy for insurers authorised under section 37 of the Insurance Act 1973.
The amendment to the regulation increases the amount of remission applicable to such insurers from $11,000 to $13,800. The amendment raises the annual rate of levy payable by insurers authorised under section 37 of the Insurance Act 1973 to $2,500, following an increase in the annual rate of the supervisory levy imposed under the General Insurance Supervisory Levy Act 1989 from $13,000 to $16,300. The amendments to the levy structure ensure that section 37 companies have a similar proportional increase in their levy as that prescribed by the increase in the annual rate imposed under the General Insurance Supervisory Levy Act 1989.
Overview
The Insurance Supervisory Levies Collection Regulations (Amendment) 1994 No. 323 were enacted to amend the existing regulations under the Insurance Supervisory Levies Collection Act 1989. This legislative amendment was introduced to address the need for updating the remission and levy structures for certain authorised general insurers. The policy objective is to ensure that the supervisory levies collected from these insurers reflect the proportional increase in the overall supervisory costs as mandated by the General Insurance Supervisory Levy Act 1989. The amendment increases the remission amount from $11,000 to $13,800 and raises the annual rate of the levy from $2,500 to $3,800, aligning the proportional increases with the updated supervisory costs. This amendment was issued by authority of the Treasurer and is intended to maintain the integrity and effectiveness of the supervisory framework for general insurance companies in Australia.
Scope and Application
The Insurance Supervisory Levies Collection Regulations (Amendment) 1994 No. 323 applies to entities authorised under section 37 of the Insurance Act 1973, specifically general insurance companies, and it is an amendment to the existing regulations under the Insurance Supervisory Levies Collection Act 1989. This Act is designed to facilitate the collection of annual supervisory levies imposed on authorised general insurers and registered life offices, which are regulated under the General Insurance Supervisory Levy Act 1989 and the Life Insurance Supervisory Levy Act 1989. The Act operates at the Commonwealth level, overseen by the Insurance and Superannuation Commissioner, and its primary purpose is to recover the ongoing costs of supervision in accordance with the Insurance Act 1973 and the Life Insurance Act 1945. The amendment to the regulation increases the remission amount applicable to certain insurers from $11,000 to $13,800 and adjusts the annual rate of levy to $2,500, aligning it with the increased annual rate imposed under the General Insurance Supervisory Levy Act 1989. This ensures that section 37 companies experience a proportional increase in their levy corresponding to the increased supervisory costs.
Key Provisions
The main operative sections of the Insurance Supervisory Levies Collection Regulations (Amendment) 1994 No. 323 involve amendments to Regulation 3 of the principal regulations. Section 12 of the Insurance Supervisory Levies Collection Act 1989 empowers the Governor-General to make regulations concerning the collection of supervisory levies on authorised general insurers and registered life offices. Regulation 3 specifically allows for remissions from the full amount of levy for insurers authorised under section 37 of the Insurance Act 1973. The amendment increases the remission amount from $11,000 to $13,800 and adjusts the annual rate of levy for these insurers to $2,500, reflecting the increase in the annual rate of the supervisory levy from $13,000 to $16,300 under the General Insurance Supervisory Levy Act 1989.
The obligations imposed by these regulations primarily concern authorised general insurers under section 37 of the Insurance Act 1973. They must comply with the amended remission and levy rates set forth in the regulations. The amendments ensure that the proportion of the levy paid by these insurers aligns with the increased supervisory levy rate, maintaining a consistent proportionality in their financial contributions relative to the overall supervisory costs.
Offences and penalties for non-compliance with these regulations are not explicitly detailed in the explanatory statement. However, under the Insurance Supervisory Levies Collection Act 1989, breaches of the regulations may result in civil or criminal consequences, depending on the nature and severity of the non-compliance. The Act provides for fines and potential criminal penalties, although the specific maximum penalties are not outlined in the explanatory statement. Generally, penalties for non-compliance with such regulatory frameworks can include substantial fines, enforcement actions, or even criminal charges for serious breaches, reflecting the importance of adhering to these supervisory levy requirements.