Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2010, made under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998, was enacted to regulate the imposition of levies on retirement savings account providers for the 2010-11 financial year. This determination addresses the need to impose and adjust supervisory levies on financial sector entities, ensuring that these entities contribute appropriately to the oversight and regulation of the financial services industry. The determination was made by the Minister for Finance and Deregulation and is aimed at ensuring that the financial sector remains well-regulated and stable. For the 2010-11 financial year, the determination specifies that the restricted component of the levy will be 0 per cent of assets held, with a minimum and maximum amount of $0, effectively meaning no direct levy was imposed on RSAs during this period. However, RSAs were still considered in the broader sector levies, reflecting the government’s policy to take a comprehensive approach to financial sector regulation.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2010 applies to providers of retirement savings accounts (RSAs) within the Australian financial sector. It operates under the authority granted by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 and specifically pertains to the 2010-11 financial year. This legislation does not impose a levy directly on RSAs for the specified financial year, but it takes into account RSAs offered by authorised deposit-taking institutions or entities in other sectors when calculating the 2010-11 levies for those sectors. The Act allows the Minister to determine various parameters such as the restricted and unrestricted levy percentages and the calculation method for an RSA provider's asset value. The determination revokes the previous Retirement Savings Account Levy Imposition Determination 2009 upon its commencement on 1 July 2010, although any obligations or liabilities incurred in previous financial years remain valid. The determination is a legislative instrument under the Legislative Instruments Act 2003.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2010 (sections 7(3)) outlines the specifics of the levy imposed on retirement savings account (RSA) providers for the 2010-11 financial year. Under this determination, both the restricted and unrestricted components of the levy are set at 0 per cent of the assets held by RSA providers. This effectively means that RSAs will not be directly levied for this financial year. However, it is important to note that RSAs offered by authorised deposit-taking institutions or entities in other sectors are still considered in the 2010-11 levies for those respective sectors, based on the sector classification of the RSA provider. This approach aligns with the recommendations from the 2004 Review of Financial Sector Levies, which were accepted by the government. The obligations imposed by this determination include the requirement for RSA providers to ensure that their asset values are calculated in accordance with the provisions outlined in the determination. This means that RSA providers must adhere to the specified method of asset valuation as stipulated by the determination. Additionally, authorised deposit-taking institutions and entities in other sectors must ensure that their RSAs are appropriately classified and factored into the relevant sector's levy calculation. This determination also revokes the previous levy imposition determination, the Retirement Savings Account Levy Imposition Determination 2009, which will no longer apply from the commencement of this new determination. The determination does not specify any particular obligations or requirements for RSA providers beyond the calculation of their asset values and the classification of RSAs for levy purposes. It is important to note that any obligations or liabilities incurred under the previous financial year's levy remain valid, in accordance with section 50 of the Acts Interpretation Act 1901. RSA providers must ensure that they comply with all relevant provisions of the determination to avoid any potential liabilities. There are no specific offences, penalties, or consequences outlined in this determination for breaches of its provisions. However, RSA providers who fail to comply with the asset valuation requirements or misclassify their RSAs may face scrutiny from regulatory authorities, which could result in corrective actions or further regulatory measures. While the determination itself does not prescribe maximum penalties, any regulatory breaches may lead to additional consequences as determined by the relevant authorities, such as the Australian Prudential Regulation Authority.