Superannuation Supervisory Levy Imposition Determination 2004
I, HELEN LLOYD COONAN, Minister for Revenue and Assistant Treasurer, make this Determination under subsection 7 (3) of the Superannuation Supervisory Levy Imposition Act 1998.
Dated 25 June 2004
HELEN COONAN
Minister for Revenue and Assistant Treasurer
1 Name of Determination
This Determination is the Superannuation Supervisory Levy Imposition Determination 2004.
2 Commencement
This Determination commences on 1 July 2004.
3 Revocation
The Superannuation Supervisory Levy Imposition Determination 2003 is revoked.
4 Definitions
In this Determination:
2004–2005 financial year means the financial year beginning on 1 July 2004.
Act means the Superannuation Supervisory Levy Imposition Act 1998.
asset, for a superannuation entity, means an item described as an asset in the balance sheet of the superannuation entity.
5 Amount of levy (Act s 7)
For paragraphs 7 (3) (a), (b) and (c) of the Act:
(a) the maximum levy amount for the 2004–2005 financial year is $99 000; and
(b) the minimum levy amount for the 2004–2005 financial year is $600; and
(c) the levy percentage for the 2004–2005 financial year is 0.042%.
6 Asset value (Act s 7)
(1) For paragraph 7 (3) (d) of the Act, a superannuation entity’s asset value is to be worked out:
(a) if the superannuation entity consists entirely of the life insurance policies of individual members of the fund — in the same way as the current value of the policies is assessed by the insurer; and
(b) in any other case — by determining the net balance of the superannuation entity based on the audited accounts of the entity.
(2) For subsection (1), the day as at which the superannuation entity’s asset value for the 2004–2005 financial year is to be worked out is 30 June 2004.
(3) For subsection (1), if the financial year of a superannuation entity does not end on 30 June in a year, the superannuation entity may use unaudited accounts.
Overview
The Superannuation Supervisory Levy Imposition Determination 2004 was enacted to provide specific details on the implementation of the Superannuation Supervisory Levy Imposition Act 1998, addressing the need for clear guidelines on the imposition of levies on superannuation entities. This legislative instrument was made by HELEN LLOYD COONAN, Minister for Revenue and Assistant Treasurer, under subsection 7(3) of the Act. It aims to ensure that the levy is applied correctly by setting out the amount and method of calculating the levy for the 2004–2005 financial year, thus facilitating the oversight and management of superannuation funds.
This Determination specifies the maximum and minimum levy amounts and the percentage for the 2004–2005 financial year, and provides methods for calculating the asset value of superannuation entities, ensuring a transparent and consistent application of the levy. By revoking the previous year's determination, it also aims to streamline the regulatory framework for the imposition of the levy.
Scope and Application
The Superannuation Supervisory Levy Imposition Determination 2004 applies to superannuation entities under the purview of the Superannuation Supervisory Levy Imposition Act 1998. The Act imposes a levy on these entities for the 2004–2005 financial year, with the levy calculated either as a percentage of the entity's asset value or at a fixed rate, whichever is greater. The levy amount ranges between a minimum of $600 and a maximum of $99,000 for this financial year, with the percentage set at 0.042%. The asset value for determining the levy is assessed based on the entity’s audited accounts, or in the case of entities consisting entirely of life insurance policies, as assessed by the insurer. The Determination revokes its predecessor from the same year and sets out specific rules for calculating the asset value and levy amount, effective from 1 July 2004. The scope of the levy is nationally consistent, applying across the Commonwealth of Australia to all superannuation entities subject to the Act.
Key Provisions
The Superannuation Supervisory Levy Imposition Determination 2004 (section 1) sets out the specifics of the levy imposed on superannuation entities, effective from 1 July 2004. It revokes the previous year's determination, establishing the new financial framework for the levy. The maximum levy amount for the 2004-2005 financial year is set at $99,000, with a minimum levy of $600, and a levy percentage of 0.042% (section 5). The determination outlines how a superannuation entity's asset value is calculated, either through the assessment of life insurance policies by the insurer or by determining the net balance from audited accounts (section 6).
Superannuation entities governed by this Act must comply with the specified levy amounts and asset valuation methods. They are required to assess their asset values as of 30 June 2004, and if their financial year ends on a different date, they may use unaudited accounts for the calculation (section 6). The entities must also ensure that they meet the levy percentage requirement, which is applied based on the asset value determined.
Breaches of the requirements set out in this Determination may result in penalties. Although specific penalties are not detailed in the provided text, under the Superannuation Supervisory Levy Imposition Act 1998, entities failing to comply with the levy provisions could face civil or criminal consequences. The penalties could include fines or other sanctions, which would be determined by the relevant courts or tribunals based on the severity and nature of the breach.