Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2013 pertains to the levy imposed on providers of retirement savings accounts (RSA providers) under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination, which commenced on 1 July 2013, applies to the 2013-14 financial year and revokes the previous levy imposition determination. The determination outlines the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the methodology for calculating an RSA provider’s levy base. Notably, for the 2013-14 financial year, the restricted levy component is set at zero per cent of assets, subject to a minimum and maximum amount of $0, and the unrestricted levy is also set at zero per cent, effectively exempting RSA providers from any direct levy for that year. The determination was developed following consultations between the Treasury, the Australian Prudential Regulation Authority, and industry stakeholders, ensuring that the impacts of the levy on the finance sector were thoroughly considered. This legislative instrument is compatible with human rights, as confirmed by the Office of Best Practice Regulation, which found no adverse impact on human rights and freedoms.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2013 is a legislative instrument that applies to providers of retirement savings accounts (RSA providers). It operates under the framework established by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 and is concerned with the imposition of a levy on RSA providers. For the 2013-14 financial year, the determination specifies that both the restricted and unrestricted components of the levy will be set at zero percent of assets held by the RSA provider, effectively imposing no levy for that financial year. This determination is applicable on a Commonwealth level and is designed to be reviewed periodically by the Australian Prudential Regulation Authority (APRA) and the Treasury, with further consultations expected as part of the review process for subsequent financial years. The instrument does not disadvantage any individual upon its registration and is compatible with human rights as it does not engage any of the rights or freedoms recognised in relevant international instruments.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2013 (the Determination) provides details on the levy imposed on retirement savings account providers (RSA providers) under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 (the Act). Section 7(3) of the Act mandates the Treasurer to determine specific aspects of the levy, which the Determination outlines for the 2013-14 financial year. For this financial year, the restricted component of the levy is set at zero per cent of the assets held by RSA providers, with both a minimum and maximum amount of zero. Similarly, the unrestricted component of the levy is also zero per cent of assets. This effectively means that RSA providers will not be subject to any levy for the 2013-14 financial year. The Determination also details how RSA providers must calculate their levy base. By setting both the restricted and unrestricted components of the levy at zero per cent, the Determination removes any financial burden on RSA providers for the specified financial year. This decision likely reflects the outcomes of consultations with industry stakeholders, as evidenced by the discussion paper released by the Treasury and the Australian Prudential Regulation Authority (APRA) on 31 May 2013. The consultation process considered potential impacts of the levies on the finance sector and institutions regulated by APRA. The Determination revokes the previous year’s levy imposition, namely the Retirement Savings Account Levy Imposition Determination 2012, upon its commencement on 1 July 2013. The Determination imposes specific obligations on RSA providers, primarily regarding the calculation and payment of the levy. For the 2013-14 financial year, RSA providers are not required to pay any levy, as both the restricted and unrestricted components are set at zero per cent. Providers must, however, comply with the methodology for calculating their levy base as stipulated in the Determination. The Determination ensures that any obligations or liabilities incurred in previous financial years remain valid, consistent with section 7 of the Acts Interpretation Act 1901. The commencement of the Determination before its registration does not adversely affect any person's rights or impose any liabilities for actions taken before registration, as per subsection 12(2) of the Legislative Instruments Act 2003. In terms of penalties or consequences for non-compliance, the Determination does not specify any particular offences or penalties for the 2013-14 financial year, as the levy is set at zero per cent. RSA providers, however, must ensure they adhere to the methodology outlined for calculating their levy base to avoid any potential non-compliance issues. The Determination's compatibility with human rights is affirmed in Attachment 1, which states that it does not engage any applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011. This compatibility ensures that the Determination does not raise any human rights issues and aligns with the international instruments listed in section 3 of the Act.