Life Insurance Supervisory Levy Amendment Act 1991

Overview

The Life Insurance Supervisory Levy Amendment Act 1991 was enacted to amend the Life Insurance Supervisory Levy Act 1989 and address issues arising from the initial legislation. The Act was passed by the Parliament of Australia and received Royal Assent on 6 January 1992. The primary purpose of this Act is to adjust the financial parameters of the life insurance supervisory levy to ensure it remains effective and relevant. Specifically, the Act introduces a new statutory upper limit for the financial year beginning on 1 July 1991 and modifies the daily component of the life insurance levy. These amendments aim to better align the levy with the financial realities and needs of the industry at that time.

Scope and Application

The Life Insurance Supervisory Levy Amendment Act 1991 applies to the amendments of the Life Insurance Supervisory Levy Act 1989, specifically targeting the financial year starting on 1 July 1991. This Act is applicable to the entities and persons who are subject to the leviable days post 30 June 1991. It extends to any entities within the life insurance industry that are required to contribute to the supervisory levy. The amendment modifies the daily component of the life insurance levy, adjusting the threshold amount from $19,000 to $25,000 for the calculation of the levy. Additionally, it introduces a new statutory upper limit for the financial year beginning on 1 July 1991, which is set at $28,000. The jurisdictional reach of this Act is Commonwealth, as it pertains to national regulations governing life insurance supervisory levies. The Act does not specify any exclusions or exemptions but notes that regulations made for the purposes of the formula in subsection 9(1) of the Principal Act do not affect leviable days in the financial year starting on 1 July 1991.

Key Provisions

The Life Insurance Supervisory Levy Amendment Act 1991 (Act) primarily focuses on amending the Life Insurance Supervisory Levy Act 1989 (Principal Act). It introduces changes to the financial threshold for calculating the daily component of the life insurance levy. Specifically, section 4 of the Act amends section 9 of the Principal Act by increasing the daily component threshold from $19,000 to $25,000. This amendment applies to leviable days occurring after 30 June 1991, as stipulated in section 5(1) of the Act. Furthermore, section 5(2) clarifies that any regulations made for the formula in section 9(1) of the Principal Act do not affect leviable days in the financial year commencing on 1 July 1991. The Act imposes certain obligations on the entities governed by the Principal Act. It requires these entities to adjust their calculations of the daily component of the life insurance levy according to the new threshold set out in section 4. This adjustment is mandatory for any leviable days occurring post the effective date of the Act, i.e., after 30 June 1991. Additionally, any regulations previously made under the Principal Act must be disregarded where they pertain to leviable days in the financial year starting 1 July 1991, ensuring that the amendment is applied correctly and without retrospective effect to that specific period. There are no explicit provisions detailing offences, penalties, or consequences for non-compliance with the Act in the text provided. However, it is common in such legislative amendments for non-compliance to be subject to penalties under the Principal Act or related regulations. Typically, penalties for breaches of financial legislation can include fines and, in more severe cases, criminal charges. The maximum penalties would be determined by the overarching regulations or the Principal Act itself, which could involve both civil and criminal sanctions depending on the nature and severity of the breach.