Overview

The Life Insurance Supervisory Levy Imposition Determination 2011 is a legislative instrument enacted to impose a levy on life insurance entities for the 2011-12 financial year. This determination, which is governed by the Life Insurance Supervisory Levy Imposition Act 1998, establishes the framework for calculating the levy based on the assets held by the entity. Specifically, the restricted component of the levy is set at 0.00644 per cent of assets, with a minimum of $470 and a maximum of $1,070,000, while the unrestricted component is set at 0.001945 per cent of assets. This determination revokes the previous year's levy imposition and ensures that any obligations or liabilities incurred remain valid. The enactment follows consultations within the finance sector and adheres to the policy objectives outlined in the Life Insurance Supervisory Levy Imposition Act 1998.

Scope and Application

The Life Insurance Supervisory Levy Imposition Determination 2011 applies to life insurance entities, including those registered under the Life Insurance Act 1995, such as friendly societies, which are considered as leviable bodies. This determination governs the calculation and imposition of the supervisory levy for the 2011-12 financial year and revokes the previous determination, the Life Insurance Supervisory Levy Imposition Determination 2010, from 1 July 2011. The levy comprises a restricted component and an unrestricted component, calculated at specific percentages of the entity’s assets. The restricted component is set at 0.00644 per cent of the entity's assets, with a minimum levy of $470 and a maximum of $1,070,000, while the unrestricted component is calculated at 0.001945 per cent of the entity's assets. The Minister has the authority to determine these percentages and asset calculations under the Life Insurance Supervisory Levy Imposition Act 1998. This determination operates within the Commonwealth jurisdiction, aligning with the legislative framework established by the Financial Institutions Supervisory Levies Collection Act 1998.

Key Provisions

The Life Insurance Supervisory Levy Imposition Determination 2011 (F2011L01337) outlines the specific levy rates and calculation methods for the 2011-12 financial year, as authorised by the Life Insurance Supervisory Levy Imposition Act 1998. Section 7(3) of the Act allows the Minister to determine various components of the levy, which this determination sets for the year in question. Specifically, the restricted levy is calculated at 0.00644% of assets held by the entity, with a minimum of $470 and a maximum of $1,070,000, while the unrestricted levy is set at 0.001945% of assets held by the entity (sections 1 and 2). Friendly societies, which are registered under the Life Insurance Act 1995, are also subject to these levies, as they fall under the definition of 'life insurance company' within the Financial Institutions Supervisory Levies Collection Act 1998. The Act imposes clear obligations on life insurance entities to calculate and remit the specified levies. Each entity must determine its asset value in accordance with the methods prescribed by the Minister, and remit the appropriate amounts for both restricted and unrestricted components of the levy. The determination provides specific percentages and thresholds to guide these calculations, ensuring consistency and fairness in the imposition of the levy across the sector. Furthermore, entities must maintain accurate records of their assets and calculations to substantiate their compliance with the Act. Failure to comply with the requirements of the Act can result in significant penalties. The determination does not explicitly state the penalties for non-compliance, but given the nature of the Act, breaches could potentially incur both civil and criminal consequences. Typically, breaches of such legislative instruments can result in fines or other civil penalties, and in severe cases, criminal charges may be pursued. The exact penalties would depend on the specific provisions of the Life Insurance Supervisory Levy Imposition Act 1998 and other relevant legislation.