Overview

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2018 was enacted to address the need for a regulatory framework governing the supervisory levy imposed on providers of retirement savings accounts, as outlined in the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998. This legislation was developed by the Australian government to provide a structured approach to the financial oversight of RSA providers. The Act is overseen by the Treasurer, who is responsible for determining various aspects of the levy through legislative instruments. For the 2018-19 financial year, this determination sets the restricted and unrestricted levy percentages at zero, effectively suspending the levy for that year. The policy objective, as articulated in the explanatory statement, is to maintain a stable regulatory environment while allowing for potential adjustments in future financial years as necessary. The determination ensures compliance with legislative requirements and affirms that it does not infringe upon any human rights as recognised by relevant international instruments.

Scope and Application

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2018 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 applies to RSA providers, which are entities that provide retirement savings accounts, and it concerns the levy for the 2018-19 financial year. The Act applies to all RSA providers within the Commonwealth of Australia, encompassing both the restricted and unrestricted components of the levy. Notably, this determination establishes that for the 2018-19 financial year, the restricted levy will be set at zero per cent of the assets held by the entity, with no minimum or maximum amounts, and the unrestricted levy will also be zero per cent. Consequently, RSA providers will not be subjected to any direct levy for this financial year. The determination also clarifies that obligations and liabilities incurred in previous financial years remain valid, and its commencement does not adversely affect any person's rights or impose any liabilities for actions taken before its registration.

Key Provisions

The Retirement Savings Account Providers Supervisory Levy Imposition Determination 2018 (the Determination) outlines the specific details of the levy imposed on retirement savings account providers (RSA providers) as required under section 7(3) of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 (the Act). The Determination specifies the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the method for calculating an RSA provider's levy base for the 2018-19 financial year. For the specified period, it sets the restricted levy component at zero per cent of assets held by the entity, with no minimum or maximum limits, and the unrestricted levy component also at zero per cent of assets held by the entity. This effectively means that RSA providers will not be subject to a direct levy for the 2018-19 financial year (subsection 7(3)(a), (b), (c), (ca), and (d)). The Determination imposes specific obligations on RSA providers, primarily centred around the calculation and reporting of their levy base in accordance with the provisions outlined in the Determination. RSA providers must ensure their asset values are calculated in the specified manner and report these values to the relevant authorities as required (subsection 7(3)(d)). Additionally, the Determination is consistent with the legislative framework set out in the Legislation Act 2003, allowing for commencement prior to registration without affecting the rights of any person or imposing any liability for actions taken before the registration date (subsections 12(2) and 12(3)). In terms of penalties and consequences for breach, the Determination itself does not explicitly state any specific offences, penalties, or civil or criminal consequences for non-compliance. However, the Act under which this Determination is made, the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998, may include provisions for penalties and enforcement actions in the event of non-compliance with the requirements set out in the Act and the Determination. As such, RSA providers should be aware of any potential penalties or enforcement actions that may apply under the overarching legislative framework.