Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2016 was enacted to provide a framework for the levy imposed on providers of retirement savings accounts under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This Act was introduced to address the need for a structured regulatory levy system to ensure the financial stability and oversight of entities managing retirement savings accounts. The enactment of this legislation is a responsibility of the Australian Government, as indicated by the legislative instrument. The policy objective is to facilitate effective supervision and regulation of retirement savings accounts while considering the financial impacts on levy payers, as evidenced by consultations with industry stakeholders. For the 2016-17 financial year, this determination established that both the restricted and unrestricted components of the levy would be set at zero per cent, effectively suspending the levy for that year.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2016 applies to entities that provide retirement savings accounts, referred to as RSA providers. It specifies the parameters for the levy imposed on these entities under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. The determination, which commenced on 1 July 2016, relates to the 2016–17 financial year and repealed the previous year's levy determination. The levy is structured with both restricted and unrestricted components, but for the 2016–17 financial year, the determination sets both the restricted and unrestricted levy percentages at zero, meaning RSA providers are not directly levied for that year. This approach was informed by consultation with the finance sector through a Treasury and Australian Prudential Regulation Authority discussion paper. While the determination is a legislative instrument under the Legislative Instruments Act 2003, it does not disadvantage any person and is compatible with human rights as confirmed in the accompanying statement under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2016 (the Determination) specifies the levy imposed on providers of retirement savings accounts (RSA providers) under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 (the Act). It applies to the 2016-17 financial year and sets out the percentages for both restricted and unrestricted levies, which in this case are both calculated at zero per cent (subsection 7(3)(c) and (ca)). This means that RSA providers will not be subject to any levy for this financial year. The Determination also explains the method for calculating an RSA provider’s levy base, although specific details on this calculation are not provided in the text. RSA providers must adhere to the percentages and methods specified in the Determination for calculating their levies. The Determination clarifies that there is no direct levy on RSA providers for the 2016-17 financial year, but providers must still comply with the statutory requirements for levy calculation and reporting as stipulated in the Act. RSA providers are also required to ensure they maintain accurate records of their assets and any related calculations to satisfy any future levy requirements should they change. Breaches of the obligations under the Act can lead to civil and criminal penalties. For example, failure to comply with the requirements to report or pay the levy when it is applicable could result in significant penalties. The Act does not specify exact penalties in the provided text, but it is likely that penalties would be outlined in the Act itself or in related legislation. Non-compliance could also lead to investigations and enforcement actions by the relevant authorities, potentially resulting in additional financial or legal consequences for the RSA providers. In summary, the Determination sets forth the levy for RSA providers for the 2016-17 financial year as zero per cent for both restricted and unrestricted components, meaning no direct levy is imposed. RSA providers must still ensure they are prepared to comply with any future levy requirements and maintain accurate records as necessary. Failure to comply with the Act’s requirements can result in civil or criminal penalties, although the exact penalties are not detailed in the provided text.