Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2017 was enacted to address the need for a levy on providers of retirement savings accounts, as stipulated by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This Act was introduced to provide a framework for imposing a supervisory levy on RSA providers, ensuring they contribute to the costs of their supervision. The determination, which commenced on 1 July 2017, specifies the parameters for the 2017-18 financial year, including setting both the restricted and unrestricted levy components at zero percent of assets held by the entity, effectively resulting in no levy being imposed for that financial year. The enactment body for this determination is the Australian government, with the objective being to maintain a stable and regulated environment for retirement savings accounts without imposing a financial burden on the providers during the specified period.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2017 applies to providers of retirement savings accounts (RSA providers) within the Australian financial sector. These entities are subject to a levy under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998, and the determination sets out specific parameters for the 2017-18 financial year. Notably, for this financial year, both the restricted and unrestricted components of the levy are set at zero per cent of assets held by the RSA providers, effectively exempting them from any direct levy. The determination also repeals the previous levy imposition for the 2016-17 financial year. The scope of the Act extends to the Commonwealth, with any obligations or liabilities incurred in previous financial years remaining valid. The determination is a legislative instrument under the Legislation Act 2003 and is compatible with human rights, as it does not engage any of the applicable rights or freedoms. The determination does not disadvantage any person and does not impose any liability on anyone for actions taken before the registration date.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2017 (sections 1-3) provides for the implementation of the levy on providers of retirement savings accounts (RSA providers) under the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This determination outlines the details for the 2017-18 financial year, including the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method of calculating an RSA provider's levy base. For the specified financial year, the restricted component of the levy is set at zero per cent of assets, with a minimum of $0 and a maximum of $0, while the unrestricted component is also set at zero per cent of assets. This effectively means that RSA providers are not subject to any levy for the 2017-18 financial year. The determination imposes specific obligations on RSA providers, requiring them to adhere to the provisions set out in the Act. These obligations include ensuring that their asset values are calculated in accordance with the methodology outlined in the determination. Additionally, RSA providers must comply with the provisions regarding the calculation and payment of any applicable levies, even though for the 2017-18 financial year, no levy is imposed. There are no specific offences, penalties, or civil/criminal consequences outlined in the determination for breaches of the levy provisions, as no levy is imposed for the 2017-18 financial year. However, RSA providers must still comply with the overall framework established by the Act and the determination to ensure they meet their obligations. Failure to comply with the requirements could potentially result in penalties under the Act, although no specific penalties are mentioned in this determination. The determination also addresses the commencement of the levy provisions, clarifying that it will commence before registration but without disadvantaging any person's rights or imposing any liabilities for actions taken before the registration date. This approach is consistent with the relevant subsections of the Legislation Act 2003. Furthermore, the determination mentions that consultation with the finance sector was conducted through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper, and no specific issues were raised regarding the 2017-18 determination.