Overview

The Retirement Savings Account Levy Imposition Determination 2007, enacted in 2007, is a legislative instrument designed to regulate the supervisory levy imposed on providers of retirement savings accounts under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination, made by the Minister, addresses the need for a structured approach to levy imposition on retirement savings account providers, ensuring consistency and fairness in the application of the levy across different financial years. It specifies the methodology for calculating the restricted and unrestricted levy percentages for the 2007-08 financial year, effectively setting both components at 0 per cent, meaning no direct levy on RSAs for that year. The policy objective aligns with the Government’s acceptance of the Review of Financial Sector Levies, which seeks to balance the financial sector’s obligations with the operational realities of retirement savings account providers.

Scope and Application

The Retirement Savings Account Levy Imposition Determination 2007 applies to providers of retirement savings accounts and is governed under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. The Act stipulates the specific parameters for the levy imposed on these providers for the 2007-08 financial year, which includes the maximum, minimum, and percentage for restricted and unrestricted levies, as well as the methodology for calculating an entity's asset value. This determination specifically sets the restricted levy at 0 per cent and the unrestricted levy at 0 per cent, effectively resulting in no direct levy on RSAs for that financial year. However, RSAs offered by authorised deposit-taking institutions or entities from other sectors are considered in the 2007-08 levies for their respective sectors. The Act applies nationally and the determination revokes the previous year's levy imposition, although any obligations or liabilities incurred prior to the commencement of this determination remain valid. Any further extensions or restrictions on the application of the Act are managed through subordinate instruments, which adhere to the legislative framework established by the Legislative Instruments Act 2003.

Key Provisions

The Retirement Savings Account Levy Imposition Determination 2007, which commences on 1 July 2007, sets out the key provisions for the 2007-08 financial year as outlined in the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination revokes the 2006 version, ensuring that the latest provisions are in effect, while any obligations or liabilities from previous financial years remain valid under section 50 of the Acts Interpretation Act 1901. The primary sections of the determination (sections 7(3)(a) to (d)) address the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating a provider’s asset value. The Act imposes specific obligations on providers of retirement savings accounts. For the 2007-08 financial year, the restricted component of the levy is set at 0 per cent of assets held by the entity, with no minimum or maximum amounts specified. Similarly, the unrestricted component is also set at 0 per cent. This essentially means that during this financial year, retirement savings accounts (RSAs) will not be subjected to any direct levy. However, RSAs offered by authorised deposit-taking institutions or entities in other sectors are taken into account in the 2007-08 levies for their respective sectors, according to the sector classification of the RSA provider. Furthermore, the determination includes a provision for how a provider’s asset value is calculated, although the specifics of this calculation method are not detailed within the excerpt provided. Given the government’s acceptance of the Review of Financial Sector Levies recommendations, the calculation method likely aims to ensure accurate and fair assessment of levies across different sectors. In terms of consequences, the determination does not specify any particular offences, penalties, or civil/criminal consequences for breach within the provided excerpt. However, as this is a legislative instrument under the Legislative Instruments Act 2003, non-compliance with the determination could potentially lead to legal actions or penalties as prescribed by the governing Act and relevant regulations. The exact penalties would depend on the specific nature of the breach and the provisions of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998.