Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2011, made under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998, was introduced to regulate the imposition of a levy on providers of retirement savings accounts for the 2011-12 financial year. This legislation was enacted to address the need for financial oversight and regulation within the retirement savings sector. The policy objective of this determination is to ensure that retirement savings account providers contribute to their supervision in a manner consistent with the government's financial sector policy, as recommended by the 2004 Review of Financial Sector Levies. The determination was made by the Minister and is effective from the day after it is registered, superseding the previous levy determination from 1 July 2011. This approach reflects a commitment to the ongoing review and adjustment of financial sector levies to align with broader economic and regulatory objectives.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2011 applies to entities providing retirement savings accounts, specifically those authorised deposit-taking institutions and entities from other sectors as classified under the sector-specific levies. The legislation is enacted under the authority of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 and applies nationally across Australia. This determination sets the levy rates for the 2011-12 financial year, effectively imposing no direct levy on retirement savings accounts but considering them within the broader sector-specific levies. It is noteworthy that any obligations or liabilities incurred under previous financial years remain valid as per the Acts Interpretation Act 1901. The determination revokes the previous levy imposition from the Retirement Savings Account Levy Imposition Determination 2010, effective from 1 July 2011. The Minister’s power to determine the levy percentages and asset calculations is exercised through this legislative instrument, which also adheres to the requirements of the Legislative Instruments Act 2003.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2011 (F2011L01334) outlines the levy imposed on providers of retirement savings accounts (RSAs) for the 2011-12 financial year under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. The levy's key provisions are detailed in subsection 7(3), which allows the Minister to determine the restricted and unrestricted levy percentages, the maximum and minimum restricted levy amounts, and the method for calculating a provider’s asset value. For the 2011-12 financial year, the determination sets the restricted levy at zero percent, with a minimum of $0 and a maximum of $0, while the unrestricted levy is also set at zero percent. This effectively means that RSAs will not be levied directly in this financial year. However, RSAs provided by authorised deposit-taking institutions or entities in other sectors are included in the 2011-12 levies for those sectors based on the sector classification of the RSA provider. The determination imposes specific obligations on RSA providers, including the requirement to calculate their asset values in accordance with the method specified in the determination. The obligation to comply with the levy determination is paramount, as failure to do so can lead to legal consequences. RSA providers must ensure they accurately calculate their asset values and apply the specified levy rates as per the determination. Additionally, the determination revokes the Retirement Savings Account Levy Imposition Determination 2010, effective from 1 July 2011, ensuring that all RSA providers are operating under the most current legislative requirements. Any breach of the provisions outlined in the Retirement Savings Account Providers Supervisory Levy Imposition Determination 2011 may lead to both civil and criminal consequences. While the specific penalties are not detailed in the determination itself, under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998, penalties for non-compliance can include fines and potential legal action. The exact financial penalties would be determined based on the severity of the breach and relevant legal provisions, but the Act allows for significant penalties to enforce compliance and ensure the integrity of the supervisory levy system.