Superannuation Supervisory Levy Imposition Amendment Act 2005

Administered by Department of the Treasury

Legislation au C2005A00018 In force Act

Legislation content

 

 

 

 

 

 

Superannuation Supervisory Levy Imposition Amendment Act 2005

 

No. 18, 2005

 

 

 

 

 

An Act to amend the Superannuation Supervisory Levy Imposition Act 1998, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendment of the Superannuation Supervisory Levy Imposition Act 1998

 

 

 

Superannuation Supervisory Levy Imposition Amendment Act 2005

No. 18, 2005

 

 

 

An Act to amend the Superannuation Supervisory Levy Imposition Act 1998, and for related purposes

[Assented to 22 February 2005]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Superannuation Supervisory Levy Imposition Amendment Act 2005.

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  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 Supervisory Levy Imposition Act 1998

 

1  Section 5 (paragraph (a) of the definition of statutory upper limit)

Repeal the paragraph, substitute:

 (a) in relation to the financial year commencing on 1 July 2005—$1,500,000; or

2  Subsection 7(1)

Repeal the subsection, substitute:

 (1) Subject to subsection (2), the amount of levy payable by a trustee of a superannuation entity for a financial year is the sum of the restricted levy component and the unrestricted levy component for the financial year.

Note: For restricted levy component, see subsection (1A). For unrestricted levy component, see subsection (1B).

 (1A) The restricted levy component for the financial year is:

 (a) unless paragraph (b) or (c) applies—the amount that, for the financial year, is the restricted levy percentage of:

 (i) except where the superannuation entity was an unregulated entity on 30 June of the previous financial year—the superannuation entity’s asset value on that day; or

 (ii) if the superannuation entity was an unregulated entity on 30 June of the previous financial year—the unregulated entity’s asset value on that day; or

 (b) if the amount worked out under paragraph (a) exceeds the maximum restricted levy amount for the financial year—the maximum restricted levy amount; or

 (c) if the amount worked out under paragraph (a) is less than the minimum restricted levy amount for the financial year—the minimum restricted levy amount.

Note: The restricted levy percentage, maximum restricted levy amount, minimum restricted levy amount and the method of working out the superannuation entity’s asset value are as determined under subsection (3).

 (1B) The unrestricted levy component for the financial year is the amount that, for the financial year, is the unrestricted levy percentage of the superannuation entity’s asset value.

Note: The unrestricted levy percentage is as determined under subsection (3).

3  Paragraphs 7(3)(a), (b) and (c)

Repeal the paragraphs, substitute:

 (a) the maximum restricted levy amount for each financial year; and

 (b) the minimum restricted levy amount for each financial year; and

 (c) the restricted levy percentage for each financial year; and

 (ca) the unrestricted levy percentage for each financial year; and

4  Subsection 7(4)

Omit “maximum levy amount”, substitute “maximum restricted levy amount”.

5  After subsection 7(4)

Insert:

 (4A) A determination under subsection (3) may make different provision for different classes of superannuation entity.

6  Subsection 8(1)

Repeal the subsection, substitute:

 (1) The indexation factor for a financial year is the number worked out by:

 (a) dividing the index number for the March quarter immediately preceding that financial year by the index number for the March quarter immediately preceding that first‑mentioned March quarter; and

 (b) adding 0.030 to the number worked out under paragraph (a).

7  Subsection 8(3)

Omit “subsection (1)”, substitute “paragraph (1)(a)”.

8  Application and transitional

The amendments made by this Schedule apply in relation to levy payable for:

 (a) the financial year commencing on 1 July 2005; and

 (b) each succeeding financial year.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 9 December 2004

Senate on 9 February 2005]

(240/04)

 

Overview

The Superannuation Supervisory Levy Imposition Amendment Act 2005, enacted by the Parliament of Australia, is an amendment to the Superannuation Supervisory Levy Imposition Act 1998. This legislation was introduced to refine the regulatory framework governing superannuation entities, particularly in relation to the levy imposed on trustees of these entities. The Act aims to ensure that the supervisory levy remains effective and relevant in light of changing economic conditions and the evolving landscape of superannuation management. The amendments address the calculation and application of the levy, including adjustments to the statutory upper limit, levy components, and indexation factors. These changes are designed to maintain the balance between adequate regulatory oversight and the practical needs of superannuation trustees. The Superannuation Supervisory Levy Imposition Amendment Act 2005 introduces amendments that affect the financial year commencing 1 July 2005 and subsequent years. Key modifications include the replacement of certain definitions and percentages, the introduction of new percentages for unrestricted levies, and adjustments to the indexation factor used in levy calculations. The policy objective behind these amendments is to enhance the efficiency and fairness of the levy system, ensuring it continues to support effective regulation without unduly burdening superannuation trustees.

Scope and Application

The Superannuation Supervisory Levy Imposition Amendment Act 2005 is a Commonwealth Act that amends the Superannuation Supervisory Levy Imposition Act 1998. This Act applies to trustees of superannuation entities and pertains to the calculation and payment of the supervisory levy imposed on these entities. The Act sets out new definitions and formulas for determining the restricted and unrestricted levy components, as well as the percentages and maximum and minimum levy amounts applicable to superannuation entities. The amendments made by this Act apply to the financial year commencing on 1 July 2005 and each succeeding financial year. The Act does not specify any exclusions or exemptions, nor does it extend or restrict application through subordinate instruments, as those details are contained within the Superannuation Supervisory Levy Imposition Act 1998 and its subsequent amendments.

Key Provisions

The Superannuation Supervisory Levy Imposition Amendment Act 2005 amends the Superannuation Supervisory Levy Imposition Act 1998. It makes specific changes to the definition of the statutory upper limit (section 5), the method for calculating the levy payable by a trustee of a superannuation entity (subsection 7(1)), and the percentages for the restricted and unrestricted levy components (subsections 7(3)(a), (b), (c), and (ca); subsection 8(1)). The Act also introduces the ability to set different provisions for different classes of superannuation entities (subsection 7(4A)) and modifies the indexation factor calculation (subsection 8(3)). The Act imposes obligations on trustees of superannuation entities to accurately calculate the levy payable based on the amended definitions and percentages. Trustees must ensure that the restricted and unrestricted levy components are calculated correctly using the specified percentages, and that any variations for different classes of entities are properly applied. The indexation factor must also be calculated as per the new formula provided in the Act. Breaching the provisions of this Act may result in incorrect calculations of the superannuation levy, potentially leading to either overpayment or underpayment of the levy. Such errors could result in financial discrepancies and may attract penalties under the Superannuation Supervisory Levy Imposition Act 1998. Although the specific penalties are not detailed in the amendment Act, the original Act may impose fines or other penalties for non-compliance with the levy requirements. Trustees who fail to comply with the new provisions could be subject to these penalties, which could include financial penalties or other administrative consequences.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.