Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2006 was enacted to address the need for setting supervisory levies on providers of retirement savings accounts. This determination is an implementation of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998, which allows the Treasurer to determine various aspects of the levy, including its percentage and the calculation of asset values for levy purposes. The determination specifies that for the 2006-07 financial year, the restricted levy component will be set at 0 per cent of the entity's assets, with no minimum or maximum amounts, while the unrestricted levy component will also be 0 per cent, effectively meaning no direct levy will be imposed on RSAs for that year. This determination revokes the previous Retirement Savings Account Providers Supervisory Levy Imposition Determination 2005 upon its commencement on 1 July 2006, and it incorporates the Government's acceptance of recommendations from the Review of Financial Sector Levies, taking into account RSAs offered by authorised deposit-taking institutions or entities in other sectors. The determination was developed through consultation with the finance sector and is a legislative instrument under the Legislative Instruments Act 2003.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2006 applies to entities providing retirement savings accounts and is made under the authority of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination, which commences on 1 July 2006 and pertains to the 2006-07 financial year, revokes the preceding Retirement Savings Account Providers Supervisory Levy Imposition Determination 2005 while preserving any obligations or liabilities incurred during earlier financial years. The determination is focused on the calculation of the supervisory levy, establishing the restricted and unrestricted levy percentages, and the method for calculating the asset value of retirement savings account providers. For the 2006-07 financial year, the determination sets the restricted levy at 0 per cent of the entity's assets, with a minimum of $0 and a maximum of $0, effectively exempting retirement savings accounts from direct levy for that year. The unrestricted component is also set at 0 per cent of assets. However, retirement savings accounts provided by authorised deposit-taking institutions or entities in other sectors are included in the levies for those sectors according to the classification of the retirement savings account provider. This determination is a legislative instrument under the Legislative Instruments Act 2003, reflecting the government's acceptance of the recommendations from the Review of Financial Sector Levies.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2006 (F2006L02161) outlines the key provisions related to the levy imposed on providers of retirement savings accounts (RSAs). As per section 7(3) of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998, the determination specifies the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating a provider’s asset value for the 2006-07 financial year. According to this determination, the restricted component of the 2006-07 levy will be calculated at 0 per cent of assets held by the entity, with a minimum amount of $0 and a maximum amount of $0. Similarly, the unrestricted component of the levy will also be calculated at 0 per cent of assets. This effectively means that RSAs will not incur a levy directly for the 2006-07 financial year. However, RSAs offered by authorised deposit-taking institutions or entities in other sectors are considered in the 2006-07 levies for those sectors, based on the sector classification of the RSA provider. Entities subject to this Act are required to comply with the specified levy percentages and asset calculation methods as outlined in the determination. They must ensure that their RSAs are correctly classified and accounted for in the overall sector levies. The determination mandates that providers of RSAs adhere to the prescribed asset valuation methods to determine their levy obligations accurately. This includes maintaining proper records and documentation to support the asset values reported for levy purposes. Failure to comply with the provisions of this determination may result in penalties. Although the specific civil or criminal consequences are not detailed in the text, it is reasonable to infer that breaches could lead to financial penalties or other legal actions as stipulated by the overarching Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. The maximum penalties would be determined according to the relevant sections of that Act. The determination ensures that the financial sector adheres to the prescribed levy structure to support the supervisory and regulatory frameworks governing retirement savings accounts.