Superannuation (Financial Assistance Funding) Levy Regulations 2003 2003 No. 182
EXPLANATORY STATEMENT
Statutory Rules 2003 No. 182
Minute No. of 2003 - Minister for Revenue and Assistant Treasurer
Subject - Superannuation (Financial Assistance Funding) Levy Act 1993
Financial Institutions Supervisory Levies Collection Act 1998
Superannuation (Financial Assistance Funding) Levy Regulations 2003
The Superannuation (Financial Assistance Funding) Levy Act 1993 (the Levy Act) provides for the imposition of levies on regulated superannuation funds and approved deposit funds to recoup the amount of grants of financial assistance made under Part 23 of the Superannuation Industry (Supervision) Act 1993 (the SIS Act) to superannuation funds that have suffered loss as a result of fraudulent conduct or theft. The Financial Institutions Supervisory Levies Collection Act 1998 (the Levies Collection Act) provides for the collection of levies imposed under the Levy Act and certain other Acts.
Section 10 of the Levy Act and section 29 of the Levies Collection Act provide that the Governor-General may make regulations prescribing matters required or permitted by the Acts to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Acts.
In the 2001-02 financial year, I made 180 determinations to grant financial assistance. The total amount of financial assistance granted was $11,071,977.
Section 6 of the Levy Act provides that in such circumstances the regulations may impose a levy or levies on each fund other than those to which grants under Part 23 of the SIS Act were made during the year in question. Such regulations must specify the funds in respect of which determinations to grant assistance were made and the proportion of the levy that each fund represents. Each levy must be identified in the regulations by a unique number and the regulations may specify a maximum and/or a minimum amount of levy.
Section 7 of the Levy Act provides that the rate, minimum amount and maximum amount of a levy or levies are to be fixed on the basis that the amount of revenue to be raised because of the same grants of financial assistance is not to exceed the amount needed for the Commonwealth to recoup the amount of that financial assistance. Section 7 of the Levy Act also provides that the levy rate of a levy or levies should not exceed 0.05% of the sum of the values at the end of the previous financial year of all the assets of the funds on which the levy or levies are imposed.
Section 8 of the Levy Act specifies the formula to be used in working out the amount of a levy imposed on a fund. The applicable rate must not exceed 0.0005.
Section 19 of the Levies Collection Act provides that a levy payable by a fund is due on a date specified in the regulations and that the date must not be earlier than the 28th day after the day on which those regulations took effect.
The purpose of the regulations is to impose a levy on regulated superannuation funds and approved deposit funds, other than self managed superannuation funds and levy exempt funds, to recoup the total amount of financial assistance granted under Part 23 of the SIS Act in the 2001-02 financial year. The regulations specify the funds for which determination was made to grant financial assistance in 2001-02 and the proportion of the levy that each fund represents, and exempt those funds from the levy. The unique number of the regulations is Superannuation (Financial Assistance Funding) Levy No. 2001-2002: 1.
In the regulations, the applicable rate (0.000083), the maximum amount of levy ($33,000) and the minimum amount of levy ($100) are fixed on the basis that the amount of revenue that would be raised by the levy would not exceed the amount needed for the Commonwealth to recoup the amount of financial assistance granted in the 2001-02 financial year.
The Levy and Levies Collection Acts do not impose any conditions that need to be met before the power to make the regulations may be exercised.
The regulations commenced on gazettal and provide for the levy to be due and payable on 31 August 2003.
Authority: Section 10 of the Superannuation (Financial Assistance Funding) Levy Act 1993
Section 29 of the Financial Institutions Supervisory Levies Collection Act 1998
Overview
The Superannuation (Financial Assistance Funding) Levy Regulations 2003 were enacted by the Parliament of Australia to provide for the imposition of levies on regulated superannuation funds and approved deposit funds, other than self-managed superannuation funds and levy exempt funds, in order to recoup the amount of financial assistance granted under Part 23 of the Superannuation Industry (Supervision) Act 1993 to funds that have suffered loss as a result of fraudulent conduct or theft. These regulations were made under the authority of section 10 of the Superannuation (Financial Assistance Funding) Levy Act 1993 and section 29 of the Financial Institutions Supervisory Levies Collection Act 1998. The regulations specify the funds for which a determination to grant financial assistance was made in the 2001-02 financial year and the proportion of the levy that each fund represents. The regulations also exempt those funds from the levy. The applicable rate of the levy (0.000083), the maximum amount of levy ($33,000) and the minimum amount of levy ($100) are fixed on the basis that the amount of revenue that would be raised by the levy would not exceed the amount needed for the Commonwealth to recoup the amount of financial assistance granted in the 2001-02 financial year. The regulations commenced on gazettal and provide for the levy to be due and payable on 31 August 2003.
Scope and Application
The Superannuation (Financial Assistance Funding) Levy Regulations 2003 apply to regulated superannuation funds and approved deposit funds, with specific exclusions for self-managed superannuation funds and levy-exempt funds. These regulations are made under the authority of the Superannuation (Financial Assistance Funding) Levy Act 1993 and the Financial Institutions Supervisory Levies Collection Act 1998, and they operate within the Commonwealth jurisdiction. The regulations aim to impose a levy on eligible funds to recoup the financial assistance granted under Part 23 of the Superannuation Industry (Supervision) Act 1993 for the 2001-02 financial year. The rate, minimum and maximum amounts of the levy are specified in the regulations, which also detail the proportion of the levy each fund represents. Notably, the funds for which financial assistance was granted in 2001-02 are exempt from the levy. The levy is due and payable on 31 August 2003, with the applicable rate set at 0.000083, the maximum levy at $33,000, and the minimum levy at $100. These regulations were made to ensure that the revenue raised does not exceed the amount necessary for the Commonwealth to recoup the financial assistance granted.
Key Provisions
The Superannuation (Financial Assistance Funding) Levy Regulations 2003 (No. 182) establish the framework for imposing a levy on regulated superannuation funds and approved deposit funds to recoup the financial assistance granted in the 2001-02 financial year. According to section 6 of the Superannuation (Financial Assistance Funding) Levy Act 1993 (the Levy Act), these regulations specify the funds for which financial assistance was granted during that year and the proportion of the levy each fund represents. This includes identifying each levy by a unique number and setting a maximum and/or minimum amount for each levy. The regulations also ensure that the levy rate, minimum, and maximum amounts are calculated so that the revenue raised does not exceed the amount needed for the Commonwealth to recoup the financial assistance granted.
Section 7 of the Levy Act mandates that the levy rate should not exceed 0.05% of the sum of the values at the end of the previous financial year of all the assets of the funds on which the levy is imposed, with a further constraint in section 8 that the applicable rate must not exceed 0.0005. These regulations also detail the payment terms of the levy, in line with section 19 of the Financial Institutions Supervisory Levies Collection Act 1998 (the Levies Collection Act), stipulating that the levy is due on a date specified in the regulations, not earlier than 28 days after the regulations took effect.
The entities governed by these regulations—regulated superannuation funds and approved deposit funds, excluding self-managed superannuation funds and levy-exempt funds—have specific obligations. They must comply with the levy requirements by paying the specified amount by the due date. The regulations also require these entities to provide any necessary information to the Commonwealth for the purpose of calculating and collecting the levy. The Commonwealth, in turn, is responsible for ensuring the correct application of the levy formula and for the collection process.
Failure to comply with the Superannuation (Financial Assistance Funding) Levy Regulations 2003 can result in legal consequences. Under the Levy Act and the Levies Collection Act, penalties for non-compliance may include fines and other financial penalties. The exact penalties are not detailed in the regulations but are subject to the general penalty provisions in the relevant Acts. These penalties aim to ensure that the funds comply with the levy requirements and that the Commonwealth can recoup the financial assistance effectively.