Overview

The Life Insurance Supervisory Levy Imposition Determination 2010 was enacted to impose a levy on life insurance entities, specifically addressing the need to generate revenue for the supervision of the life insurance sector. This determination is made under the authority of the Life Insurance Supervisory Levy Imposition Act 1998, which was enacted by the Parliament of Australia. The primary objective of this Act is to ensure that the regulatory framework governing life insurance entities is adequately funded, thereby maintaining the integrity and efficiency of the supervisory processes. This determination applies to the 2010-11 financial year and establishes the parameters for calculating the levy, including the restricted and unrestricted components based on the entities' asset values. Friendly societies, which are registered under the Life Insurance Act 1995, are also subject to this levy as they fall within the definition of 'life insurance company' in the Financial Institutions Supervisory Levies Collection Act 1998.

Scope and Application

The Life Insurance Supervisory Levy Imposition Determination 2010 applies to life insurance entities, including entities that fall under the definition of 'life insurance company' as per the Financial Institutions Supervisory Levies Collection Act 1998. This encompasses entities such as friendly societies registered under the Life Insurance Act 1995. The determination sets out the maximum and minimum restricted levy amounts, as well as the restricted and unrestricted levy percentages, for the 2010-11 financial year. It specifies that the restricted component of the levy is calculated at 0.00562 per cent of the entity's assets, subject to a minimum of $470 and a maximum of $940,000, while the unrestricted component is calculated at 0.001633 per cent of the entity's assets. This determination revokes the previous 2009 determination and applies to entities operating within the Commonwealth of Australia, thereby ensuring the geographic reach of the levy is national. The determination is a legislative instrument under the Legislative Instruments Act 2003 and does not explicitly state any exclusions or thresholds beyond those provided in the determination itself.

Key Provisions

The Life Insurance Supervisory Levy Imposition Determination 2010 outlines the levy imposed on life insurance entities by the Life Insurance Supervisory Levy Imposition Act 1998 for the 2010-11 financial year. Section 7(3) of the Act allows the Minister to determine the levy rates, and this determination sets the restricted levy at 0.00562 per cent of the entity’s assets, with a minimum of $470 and a maximum of $940,000. The unrestricted levy is set at 0.001633 per cent of the entity’s assets. Friendly societies, registered under the Life Insurance Act 1995, are also subject to these levies. The obligations imposed by this determination on life insurance entities include the calculation and payment of both restricted and unrestricted levies based on their asset values. Entities must ensure they accurately determine their asset values and apply the correct percentages as specified in the determination to calculate the applicable levies. This includes submitting any required documentation and making payments within the stipulated timeframes. The entities are also expected to maintain records of their asset values and levy calculations for compliance and audit purposes. Failure to comply with the provisions of this determination can result in penalties. While the specific penalties are not detailed in the text, breaches of similar legislative instruments can typically lead to financial penalties. These penalties may include fines or additional levies. In severe cases, ongoing non-compliance could result in further regulatory action, including the possibility of investigations or legal proceedings. It is important for entities to adhere to the requirements to avoid any adverse consequences.