Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2005, enacted in 2005, addresses the need to regulate and impose supervisory levies on retirement savings account providers. This determination was made pursuant to the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 and commenced on 1 July 2005 for the 2005-06 financial year. Its primary objective is to provide the Treasurer with the authority to determine specific aspects of the levy, such as the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the calculation of a retirement savings account provider’s asset value. Notably, for the 2005-06 financial year, the determination set both the restricted and unrestricted levy percentages at 0 per cent, effectively exempting retirement savings accounts from direct levy imposition. However, the Government’s acceptance of the Review of Financial Sector Levies recommendations meant that retirement savings accounts offered by authorised deposit-taking institutions or entities in other sectors were still considered in the 2005-06 levies for those sectors. This determination is classified as a disallowable instrument under section 46A of the Acts Interpretation Act 1901.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2005 applies to entities that provide retirement savings accounts (RSA) and it is established under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination applies nationally across Australia and is effective from 1 July 2005 for the 2005-06 financial year. It specifies the calculation of the levy on RSA providers, including the restricted and unrestricted levy percentages, as well as the method for determining the asset value of these entities. Notably, for the 2005-06 financial year, the restricted component of the levy is set at 0 per cent, with both minimum and maximum amounts fixed at $0, while the unrestricted component is also set at 0 per cent, resulting in no direct levy on RSAs for that year. However, RSAs offered by authorised deposit-taking institutions or entities from other sectors are considered in the overall sector levies according to the provider's sector classification. This determination revokes the previous levy determination for the same financial year and is subject to parliamentary disallowance under the Acts Interpretation Act 1901.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2005 (the Determination) is a legislative instrument that outlines the application of the supervisory levy imposed on providers of retirement savings accounts (RSAs) for the 2005-06 financial year. This Determination, which commenced on 1 July 2005, revokes the previous year's Determination and specifies the levy parameters as outlined in subsection 7(3) of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 (the Act). The Determination sets the restricted levy percentage at 0 per cent, with a minimum amount of $0 and a maximum amount of $0, and the unrestricted levy percentage at 0 per cent. This effectively means that RSAs will not be directly levied in relation to the 2005-06 financial year; however, RSAs offered by authorised deposit-taking institutions or entities in other sectors are still considered in the sector-specific levies according to the classification of the RSA provider. The Determination imposes several obligations on RSA providers. Firstly, they must comply with the specified levy percentages and thresholds set forth in the Determination. Secondly, they must ensure that their RSAs are classified correctly in accordance with the sector classification of the RSA provider to facilitate the correct application of sector-specific levies. Providers must also maintain accurate records and calculations of their asset values to ensure they meet their levy obligations. Additionally, they must notify the relevant authorities of any changes in their asset values or business operations that could affect their levy liabilities. Failure to comply with the obligations imposed by the Determination may result in various consequences. While the Determination itself does not explicitly state offences or penalties, breaches of the Act or the Determination may result in legal action being taken against the RSA providers. The maximum penalties for such breaches may include fines and other civil or criminal penalties as prescribed by the Act or any other applicable legislation. It is important for RSA providers to adhere to the requirements of the Determination to avoid any potential legal repercussions.