Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2012 was enacted to regulate the imposition of a levy on providers of retirement savings accounts, as authorised by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination commenced on 1 July 2012 and applies to the 2012-13 financial year. The primary objective of this legislative instrument is to outline the financial parameters for the levy, including the restricted and unrestricted components, and to revoke the preceding levy determination. The determination was developed following consultations with the finance sector and the Australian Prudential Regulation Authority (APRA), as well as advice from the Office of Best Practice Regulation. The determination specifies that the restricted and unrestricted components of the 2012-13 levy will both be zero percent, effectively suspending the levy for that financial year. The enactment body responsible for this determination is the Minister for Finance, in accordance with the authority granted under section 7(3) of the Act.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2012 is a legislative instrument that applies to entities providing retirement savings accounts, specifically those subject to the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination outlines the calculation of the levy for the 2012-13 financial year, including the restricted and unrestricted levy percentages and asset values. It commences on 1 July 2012, and revokes the 2011 determination. The Act, which is applicable at the Commonwealth level, allows the Minister to set various levy parameters each financial year. Notably, for the 2012-13 financial year, the restricted component of the levy is set at zero per cent of assets, with a minimum and maximum amount of $0. The unrestricted component is also set at zero per cent. The determination was developed after consultations with the finance sector and the Australian Prudential Regulation Authority, and no submissions raised specific concerns regarding the levy on First Home Saver Account providers. Additionally, this determination is considered compatible with human rights as it does not engage any rights or freedoms as per the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2012 specifies the levy imposed on providers of retirement savings accounts as per the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 (sections 7(3)). For the 2012-13 financial year, the restricted component of the levy is set at zero 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 for the same financial year is also zero per cent of the entity's assets. Essentially, this means that Retirement Savings Account (RSA) providers will not be levied directly for the 2012-13 financial year. The determination also specifies that the method for calculating a retirement savings account provider's asset value is to be determined by the Minister, ensuring compliance with the relevant financial regulations and standards. The Act imposes several obligations on RSA providers, primarily ensuring they comply with the specified levy percentages and asset calculations as determined by the Minister. RSA providers must adhere to the calculation methods and reporting requirements stipulated in the Act. They must also ensure accurate and timely reporting of their asset values to the relevant authorities, which is essential for levy assessment and compliance purposes. Additionally, the Act requires RSA providers to maintain records and documentation that substantiate their asset values and levy calculations, enabling transparency and facilitating audits or reviews by regulatory bodies. Failure to comply with the provisions of the Act can result in various penalties and consequences. While the specific penalties are not detailed in the determination, under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998, breaches of the Act can lead to both civil and criminal penalties. Civil penalties may include fines, while criminal penalties could result in imprisonment, depending on the severity and nature of the breach. The exact penalties are usually outlined in the primary Act or in associated regulations. It is crucial for RSA providers to understand and comply with the Act to avoid these potential penalties and maintain their regulatory standing.