Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2009 is a legislative instrument made under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This Act was enacted to address the need for a levy on providers of retirement savings accounts to ensure the efficient and effective regulation of the financial sector. The determination commences on 1 July 2009, applying to the 2009-10 financial year, and revokes the preceding levy imposition determination. It is authorised by the Minister for Finance and is designed to align with the government's policy following the 2004 Review of Financial Sector Levies. This determination sets the restricted and unrestricted levy percentages to zero for the specified financial year, effectively suspending the levy on RSAs for that period, while still considering RSAs in the overall sector levies.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2009 applies to entities providing retirement savings accounts, specifically those authorised deposit-taking institutions and entities in other sectors, as defined under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination, which commences on 1 July 2009 and pertains to the 2009-10 financial year, revokes the previous determination from 2008 while ensuring that any obligations or liabilities from prior financial years remain valid. It allows the Minister to determine various aspects of the levy, including the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the calculation method for an entity's asset value. For the 2009-10 financial year, the restricted component of the levy is set at 0 per cent with no minimum or maximum limits, and the unrestricted component is also set at 0 per cent, effectively meaning that RSAs are not directly levied. However, RSAs offered by authorised deposit-taking institutions or entities in other sectors are considered in the 2009-10 levies for those respective sectors based on the sector classification of the RSA provider. This determination is a legislative instrument under the Legislative Instruments Act 2003, reflecting the government's acceptance of the 2004 Review of Financial Sector Levies recommendations.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2009 (F2009L02652) sets out the specific parameters for the levy imposed on retirement savings account (RSA) providers for the 2009-10 financial year. Under this determination, the restricted levy component for 2009-10 is set at 0 per cent of the assets held by RSA providers, with no minimum or maximum set for this levy (subsections 7(3)(a)-(c)). Similarly, the unrestricted levy component is also set at 0 per cent of assets (subsection 7(3)(ca)). This means that RSA providers will not be subject to a direct levy for the 2009-10 financial year. However, RSAs offered by authorised deposit-taking institutions or entities in other sectors are taken into account in the 2009-10 levies for those sectors according to the sector classification of the RSA provider (subsection 7(3)(d)). Under this determination, RSA providers are required to adhere to the specified levy rates for the 2009-10 financial year. They must calculate their asset value in accordance with the provisions set out in the determination. This involves determining the total value of assets held by the provider and applying the specified percentage rates to those assets. RSA providers must ensure that they comply with these calculations and provide the necessary information to the relevant authorities as required by the legislation. Failure to comply with the requirements of this determination may result in various consequences. While the determination does not explicitly outline specific offences or penalties, it is likely that breaches of the levy provisions could be subject to penalties under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 or other relevant legislation. The maximum penalties for breaches may vary depending on the nature and severity of the offence. Additionally, non-compliance could potentially lead to reputational damage and loss of trust among customers and stakeholders. In summary, the Retirement Savings Account Providers Supervisory Levy Imposition Determination 2009 sets the levy rates for RSA providers for the 2009-10 financial year, requiring them to calculate their asset values and apply the specified percentage rates. While the determination does not explicitly outline specific offences or penalties, non-compliance could potentially lead to reputational damage and legal consequences under relevant legislation.