Life Insurance Supervisory Levy Imposition Amendment Act 2005

Administered by Department of the Treasury

Legislation au C2005A00016 In force Act

Legislation content

 

 

 

 

 

 

Life Insurance Supervisory Levy Imposition Amendment Act 2005

 

No. 16, 2005

 

 

 

 

 

An Act to amend the Life Insurance Supervisory Levy Imposition Act 1998, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendment of the Life Insurance Supervisory Levy Imposition Act 1998

 

 

 

Life Insurance Supervisory Levy Imposition Amendment Act 2005

No. 16, 2005

 

 

 

An Act to amend the Life Insurance Supervisory Levy Imposition Act 1998, and for related purposes

[Assented to 22 February 2005]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Life Insurance Supervisory Levy Imposition Amendment Act 2005.

2  Commencement

  This Act commences on the day on which it receives the Royal Assent.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Amendment of the Life Insurance Supervisory Levy Imposition Act 1998

 

1  Section 5 (paragraph (a) of the definition of statutory upper limit)

Repeal the paragraph, substitute:

 (a) in relation to the financial year commencing on 1 July 2005—$1,500,000; or

2  Subsection 7(1)

Repeal the subsection, substitute:

 (1) Subject to subsection (2), the amount of levy payable by a life 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 life insurance company’s asset value; 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 life insurance company’s asset value 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 life insurance company’s asset value.

Note: The unrestricted levy percentage is as determined under subsection (3).

3  Paragraphs 7(3)(a), (b) and (c)

Repeal the paragraphs, substitute:

 (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

4  Subsection 7(4)

Omit “maximum levy amount”, substitute “maximum restricted levy amount”.

5  Subsection 8(1)

Repeal the subsection, substitute:

 (1) The indexation factor for a financial year is the number worked out by:

 (a) dividing the index number for the March quarter immediately preceding that financial year by the index number for the March quarter immediately preceding that first‑mentioned March quarter; and

 (b) adding 0.030 to the number worked out under paragraph (a).

6  Subsection 8(3)

Omit “subsection (1)”, substitute “paragraph (1)(a)”.

7  Application and transitional

The amendments made by this Schedule apply in relation to levy payable for:

 (a) the financial year commencing on 1 July 2005; and

 (b) each succeeding financial year.

 

 

[Minister’s second reading speech made in—

House of Representatives on 9 December 2004

Senate on 9 February 2005]

(242/04)

 

Overview

The Life Insurance Supervisory Levy Imposition Amendment Act 2005, enacted by the Parliament of Australia, aims to amend the Life Insurance Supervisory Levy Imposition Act 1998. This amendment came into force on the day of receiving Royal Assent, which was 22 February 2005. The primary objective of this Act is to revise the levy impositions on life insurance companies, adjusting the calculation and application of the levy components for financial years commencing from 1 July 2005. The Act modifies the statutory upper limit, introduces new definitions and calculations for restricted and unrestricted levy components, and updates indexation factors to ensure the levy remains relevant and effective in regulating the life insurance sector.

Scope and Application

The Life Insurance Supervisory Levy Imposition Amendment Act 2005 amends the Life Insurance Supervisory Levy Imposition Act 1998. It applies to life insurance companies subject to the levy for financial years commencing on or after 1 July 2005. The Act modifies the calculation of the levy by introducing new components and percentages, and it repeals and substitutes various provisions to align with the updated framework. The amendments also include changes to indexation factors used in calculating the levy. The Act does not explicitly state any exclusions or exemptions, implying that it applies broadly to all life insurance companies within its defined scope. The jurisdictional reach of this Act is federal, applying across Australia as it is enacted by the Parliament of Australia.

Key Provisions

The Life Insurance Supervisory Levy Imposition Amendment Act 2005 amends the Life Insurance Supervisory Levy Imposition Act 1998, introducing several key changes. Firstly, Section 5 now defines the statutory upper limit for the financial year commencing 1 July 2005 as $1,500,000 (Schedule 1, item 1). This amendment specifies the threshold above which certain conditions apply to the levy payable by life insurance companies. Secondly, Subsection 7(1) modifies the calculation of the levy payable, now comprising a restricted and an unrestricted levy component (Schedule 1, item 2). The restricted levy component is calculated based on a percentage of the company’s asset value, subject to maximum and minimum thresholds, while the unrestricted levy component is based on a different percentage of the asset value. Further details on the restricted and unrestricted levy components are provided in Subsections 7(1A) and 7(1B) respectively (Schedule 1, items 2 and 3). The Act imposes specific obligations on life insurance companies, primarily concerning the calculation and payment of the supervisory levy. Companies must determine their asset values and apply the prescribed percentages to calculate the restricted and unrestricted levy components (Section 7(1A) and 7(1B)). Additionally, the companies are required to adhere to the maximum and minimum thresholds for the restricted levy component as outlined in Subsection 7(3)(a) to (c) (Schedule 1, item 4). These obligations ensure that the companies comply with the statutory requirements for levy payments, which are crucial for the regulatory oversight of the life insurance sector. Breach of the obligations stipulated in this Act may result in civil or criminal consequences. While the Act does not explicitly state the penalties for non-compliance, under the general principles of Australian law, failure to comply with statutory requirements can lead to fines, legal action, or other regulatory sanctions. The exact penalties would depend on the specific nature and severity of the breach, as well as any additional provisions within the broader legal framework governing financial institutions.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Repeal & Amendment
Regulatory Standards

Interactions

Authorises

All Versions

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.