Overview

The Superannuation Supervisory Levy Imposition Determination 2005 was enacted to provide the specific details of the levy imposed on superannuation entities under the Superannuation Supervisory Levy Imposition Act 1998. This determination applies to the 2005-06 financial year and commences on 1 July 2005, revoking the Superannuation Supervisory Levy Imposition Determination 2004 upon commencement. The enactment body for this determination is the Australian Parliament, as the determination relates to federal legislation. The primary objective of this determination is to set the levy rates for superannuation entities, ensuring compliance with the legislative framework established by the Act. The determination also outlines a transitional arrangement for the implementation of the new levy framework, with adjustments in levy components expected to reach full implementation from the 2006-07 financial year.

Scope and Application

The Superannuation Supervisory Levy Imposition Determination 2005 applies to superannuation entities, specifically targeting the imposition of a levy on these entities as per the Superannuation Supervisory Levy Imposition Act 1998. This determination is operative from 1 July 2005, covering the 2005-06 financial year, and supersedes the 2004 determination upon its commencement. The legislation applies to all superannuation entities, but distinctions are made between standard entities and small APRA funds (SAFs). For entities other than SAFs, the restricted levy is set at 0.0420 per cent of assets, with a minimum levy of $570 and a maximum of $99,000, while the unrestricted levy is calculated at 0.000956 per cent of assets. Conversely, SAFs are subject to a flat levy of $500, with both restricted and unrestricted components being zero per cent. The Treasurer, through this determination, has the authority to adjust the levy percentages and asset calculations, thereby impacting the financial obligations of superannuation entities. This determination is subject to disallowance under section 46A of the Acts Interpretation Act 1901.

Key Provisions

The Superannuation Supervisory Levy Imposition Determination 2005 sets out the key provisions for the 2005-06 financial year, as authorised by subsection 7(3) of the Superannuation Supervisory Levy Imposition Act 1998. This includes the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and how an entity’s asset value is to be calculated (s 7(3)). For superannuation funds other than small APRA funds, the restricted component of the levy is 0.0420 per cent of assets, with a minimum of $570 and a maximum of $99,000. The unrestricted component is 0.000956 per cent of assets. Small APRA funds are subject to a flat levy of $500. The determination imposes specific obligations on superannuation entities. These entities must calculate their levy liabilities in accordance with the specified percentages and thresholds. They must also ensure that their asset values are accurately determined for the purpose of calculating the levy. For small APRA funds, this involves a straightforward calculation based on the flat $500 levy. For other funds, the calculation is more complex, involving the application of the specified percentages to the entity’s asset value. Breach of the obligations outlined in the determination may result in various consequences. The Superannuation Supervisory Levy Imposition Act 1998 and related regulations likely include provisions for penalties or enforcement actions for non-compliance. Although the specific penalties are not detailed in this determination, they may include fines or other civil or administrative penalties for failure to correctly calculate or pay the levy. The severity of the penalties would depend on the nature and extent of the breach. The determination also notes that it is a disallowable instrument under section 46A of the Acts Interpretation Act 1901. This means that the determination can be subject to review and potential disallowance by Parliament. Any obligation or liability incurred under the previous financial year remains valid, as per section 50 of the Acts Interpretation Act 1901.