Retirement Savings Account Providers Supervisory Levy Imposition Determination 2004
I, HELEN LLOYD COONAN, Minister for Revenue and Assistant Treasurer, make this Determination under subsection 7 (3) of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998.
Dated 25 June 2004
HELEN COONAN
Minister for Revenue and Assistant Treasurer
1 Name of Determination
This Determination is the Retirement Savings Account Providers Supervisory Levy Imposition Determination 2004.
2 Commencement
This Determination commences on 1 July 2004.
3 Revocation
The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2003 is revoked.
4 Definitions
In this Determination:
2004–2005 financial year means the financial year beginning on 1 July 2004.
Act means the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998.
asset, for an RSA provider, means an item described as an asset in the balance sheet of the RSA provider.
5 Amount of levy (Act s 7)
For paragraphs 7 (3) (a), (b) and (c) of the Act:
(a) the maximum levy amount for the 2004–2005 financial year is $18 500; and
(b) the minimum levy amount for the 2004–2005 financial year is $5 000; and
(c) the levy percentage for the 2004–2005 financial year is 0.020%.
6 Asset value (Act s 7)
(1) For paragraph 7 (3) (d) of the Act, an RSA provider’s asset value is to be worked out by adding together each amount held in an RSA by the RSA provider.
(2) For subsection (1), the day as at which the RSA provider’s asset value for the 2004–2005 financial year is to be worked out is:
(a) for an RSA provider mentioned in paragraph 7 (5) (a) of the Act — 31 March 2004; and
(b) for an RSA provider mentioned in paragraph 7 (5) (b) of the Act — the day after 17 March 2004 on which the RSA provider became, or becomes, an RSA provider.
Overview
The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2004 was enacted in response to the need for a regulatory framework governing the supervisory levy on retirement savings account providers. This legislative instrument was introduced by HELEN LLOYD COONAN, the Minister for Revenue and Assistant Treasurer, under the provisions of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. The primary objective of this Determination is to establish the levy amount for the 2004–2005 financial year, setting a maximum of $18,500 and a minimum of $5,000, alongside a levy percentage of 0.020%. This Determination also outlines the method for calculating an RSA provider’s asset value and specifies the effective dates for levy calculations and the revocation of the previous year’s Determination.
Scope and Application
The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2004 applies to entities defined as RSA (Retirement Savings Account) providers under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. It sets out the specific parameters for the levy imposed on these providers, including the maximum and minimum levy amounts for the 2004-2005 financial year, which are $18,500 and $5,000 respectively, as well as the levy percentage of 0.020%. This Determination revokes the previous 2003 Determination and establishes the method by which RSA providers' asset values are calculated for levy purposes. The Determination applies nationally as it is made under the Commonwealth Act, and its scope is limited to financial entities involved in the retirement savings industry. Subordinate instruments may further detail or adjust the application of this levy, but no such exclusions or exemptions are explicitly stated in this Determination.
Key Provisions
The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2004 (the "Determination") establishes the supervisory levy for Retirement Savings Account (RSA) providers for the 2004-2005 financial year under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 (the "Act"). The Determination sets out the maximum and minimum levy amounts for RSA providers for that financial year, as well as the percentage rate of the levy. Specifically, the maximum levy amount is $18,500, the minimum levy amount is $5,000, and the levy percentage is 0.020%.
The Determination also specifies how RSA providers should calculate their asset value for the purposes of determining their levy amount. RSA providers must add together the amounts held in RSAs to arrive at their asset value. The date on which the asset value is to be calculated differs depending on whether the RSA provider is already providing RSAs or is newly commencing RSA provision. For existing RSA providers, the asset value is calculated as at 31 March 2004. For new RSA providers, the asset value is calculated on the day after the provider becomes an RSA provider.
RSA providers are obligated to comply with the Determination by calculating their levy amount based on their asset value as per the specified date and paying the levy to the Commissioner of Taxation by the due date. Failure to comply with these obligations may result in penalties and interest charges.
The Act provides for various civil and criminal penalties for non-compliance with the levy requirements. Civil penalties include the imposition of a penalty equal to the unpaid levy amount plus interest. Criminal penalties include fines of up to $22,000 for individuals and $110,000 for bodies corporate, as well as potential imprisonment for up to two years for serious or repeated breaches.