Superannuation (Financial Assistance Funding) Levy Amendment Act 2003
No. 51, 2003
An Act to amend the Superannuation (Financial Assistance Funding) Levy Act 1993, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendment of the Superannuation (Financial Assistance Funding) Levy Act 1993
Superannuation (Financial Assistance Funding) Levy Amendment Act 2003
No. 51, 2003
An Act to amend the Superannuation (Financial Assistance Funding) Levy Act 1993, and for related purposes
[Assented to 26 June 2003]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Superannuation (Financial Assistance Funding) Levy Amendment Act 2003.
2 Commencement
This Act commences on the day on which it receives the Royal Assent.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendment of the Superannuation (Financial Assistance Funding) Levy Act 1993
1 After subsection 6(1)
Insert:
(1A) If the Minister makes more than one determination in a financial year under Part 23 of the Superannuation Industry (Supervision) Act 1993 to grant financial assistance, the regulations may impose a levy on each fund that is not a fund in respect of which a determination was made in the same financial year.
(1B) Regulations made for the purposes of subsection (1A) imposing a levy in respect of more than one determination must specify all the funds in respect of which determinations are made and the proportion of the levy that each fund represents.
2 At the end of section 6
Add:
(3) Regulations imposing a levy in respect of one or more determinations may specify that either or both of the following are payable:
(a) a maximum amount of levy;
(b) a minimum amount of levy.
3 Subsection 7(1)
Repeal the subsection, substitute:
(1) Subject to subsection (2):
(a) the rate or rates of a levy that are imposed because of one or more grants of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993; and
(b) the maximum amount of levy, and the minimum amount of levy, that is payable;
are to be fixed on the basis that the amount of revenue to be raised by the levy or by the levy and any previous levy imposed because of the same grant or grants of financial assistance is not to exceed the amount of levy needed to recoup the Commonwealth for the amount of that financial assistance.
4 After subsection 8(1)
Insert:
(1A) However:
(a) if there is a maximum amount of levy that is payable and the amount worked out under subsection (1) is more than that maximum amount—the amount of levy imposed on the fund is the maximum amount; or
(b) if there is a minimum amount of levy that is payable and the amount worked out under subsection (1) is less than that minimum amount—the amount of levy imposed on the fund is the minimum amount.
[Minister’s second reading speech made in—
House of Representatives on 12 December 2002
Senate on 15 May 2003]
Overview
The Superannuation (Financial Assistance Funding) Levy Amendment Act 2003 was enacted by the Parliament of Australia to address certain deficiencies in the original Superannuation (Financial Assistance Funding) Levy Act 1993. The 2003 Act aims to refine the regulatory framework governing financial assistance within the superannuation industry, particularly focusing on how financial assistance grants by the Minister under the Superannuation Industry (Supervision) Act 1993 are funded through the imposition of levies on superannuation funds. The policy objective of this amendment is to ensure that the revenue generated from these levies is adequate to cover the costs of financial assistance provided, without unduly burdening the funds that do not receive such assistance. This amendment seeks to provide more precise guidelines on the calculation and imposition of these levies, ensuring they are both fair and effective in recouping the necessary funds for financial assistance.
Scope and Application
The Superannuation (Financial Assistance Funding) Levy Amendment Act 2003 amends the Superannuation (Financial Assistance Funding) Levy Act 1993. This Act applies to superannuation funds, particularly those that are not recipients of financial assistance grants under the Superannuation Industry (Supervision) Act 1993, as well as to the Minister of the Commonwealth responsible for administering the superannuation legislation. The Act has a national jurisdictional reach as it pertains to the Commonwealth level of government and its regulatory powers. It allows the Minister to impose a levy on superannuation funds that do not receive financial assistance, subject to the conditions and proportions set out in the regulations. The Act also stipulates that the amount of revenue raised by the levy must not exceed the amount necessary to recoup the Commonwealth for the financial assistance provided. The Act’s provisions can be further detailed and extended through regulations, which may specify maximum and minimum amounts of levy payable, and these regulations can also outline the distribution of the levy among the affected funds.
Key Provisions
The Superannuation (Financial Assistance Funding) Levy Amendment Act 2003 introduces several key changes to the existing Superannuation (Financial Assistance Funding) Levy Act 1993. Firstly, it introduces a new subsection (1A) following section 6(1) which allows for a levy to be imposed on funds that did not receive a financial assistance determination, provided the Minister has made more than one such determination in a financial year (subsection 6(1A)). This levy is subject to the regulations that must specify all funds covered by the determinations and the proportion of the levy each fund represents (subsection 6(1B)). Additionally, regulations may specify a maximum and/or a minimum amount of levy payable, which can be either or both (subsection 6(3)).
The Act also amends section 7(1) by repealing the existing subsection and replacing it with a new provision. This new subsection mandates that the rate or rates of the levy imposed due to financial assistance grants under the Superannuation Industry (Supervision) Act 1993, along with the maximum and minimum amounts of the levy, are to be fixed to ensure that the revenue raised does not exceed the amount needed to recoup the Commonwealth for the financial assistance granted (subsection 7(1)). Furthermore, it introduces subsection 8(1A) which provides that if the calculated amount of levy exceeds the maximum amount, the maximum amount applies, or if it falls below the minimum amount, the minimum amount applies (subsection 8(1A)).
Entities and parties governed by this Act are required to adhere to the regulations that specify the levy amounts and proportions. This includes ensuring compliance with the newly defined maximum and minimum levy amounts and the proportional distribution among the relevant funds. Additionally, the Act imposes obligations on the Minister to make determinations in accordance with the provisions outlined, and on the regulators to draft and enforce the necessary regulations that align with the Act's stipulations.
The Act delineates potential breaches and their consequences. Although specific offences and penalties are not explicitly stated within the provided text, it is reasonable to infer that any non-compliance with the specified levy rates, maximum and minimum amounts, or failure to adhere to the regulations could result in legal repercussions. Typically, such breaches may attract penalties under the Superannuation Industry (Supervision) Act 1993 or other relevant legislation, which could include fines or other civil or criminal penalties depending on the severity of the breach. However, for precise details on penalties, further examination of related legislation would be necessary.