Overview

The Superannuation Supervisory Levy Imposition Determination 2007 was enacted to provide clarity and regulation around the imposition of supervisory levies on superannuation entities, as allowed by the Superannuation Supervisory Levy Imposition Act 1998. This Act was established to address the need for a reliable funding source to support the Australian Prudential Regulation Authority's (APRA) role in regulating and supervising the superannuation industry. The determination, issued by the Minister for Finance under the authority of the Acts Interpretation Act 1901, sets out specific parameters for the 2007-08 financial year, including the restricted and unrestricted levy percentages for different categories of superannuation funds, and how the asset values of these entities should be calculated. This legislative instrument aims to ensure that the necessary funds are collected to support APRA’s regulatory activities, while also providing clarity to superannuation entities regarding their levy obligations.

Scope and Application

The Superannuation Supervisory Levy Imposition Determination 2007 applies to superannuation entities, with specific calculations for restricted and unrestricted components of the levy based on the size of the entity's assets. For entities other than small APRA funds, the restricted component of the 2007-08 levy is determined at 0.01451 per cent of assets held, with a minimum levy of $570 and a maximum of $200,000. The unrestricted component is calculated at 0.000798 per cent of the assets. Small APRA funds, however, face a flat restricted levy of $500 and no unrestricted levy. This determination revokes the previous year's levy imposition and is applicable from 1 July 2007, with any pre-existing obligations remaining valid. The determination is made under the authority of the Superannuation Supervisory Levy Imposition Act 1998 and is a legislative instrument as defined under the Legislative Instruments Act 2003.

Key Provisions

The Superannuation Supervisory Levy Imposition Determination 2007 outlines the specifics of the levy imposed on superannuation entities under the Superannuation Supervisory Levy Imposition Act 1998. This determination applies to the 2007-08 financial year and revokes the previous Superannuation Supervisory Levy Imposition Determination 2006 upon its commencement on 1 July 2007. It is important to note that any obligations or liabilities incurred in previous financial years remain valid, consistent with section 50 of the Acts Interpretation Act 1901. The determination specifies the levy rates for different types of superannuation funds. For superannuation funds other than small APRA funds (SAFs), the restricted component of the 2007-08 levy is set at 0.01451 per cent of the assets held by the entity, with a minimum levy of $570 and a maximum of $200,000. The unrestricted component is calculated at 0.000798 per cent of the assets. In contrast, small APRA funds are subject to a flat levy of $500, with both the restricted and unrestricted components set at 0 per cent. Superannuation entities governed by this Act are obligated to calculate their respective levies accurately, adhering to the specified percentages and thresholds. These entities must also ensure that their asset values are computed in accordance with the methods outlined in the determination. Failure to comply with these requirements may result in legal consequences. Breaching the provisions of the Act may lead to civil or criminal penalties, although the specific consequences are not detailed in the text. The penalties could include fines or other sanctions, depending on the severity of the breach. It is essential for superannuation entities to remain compliant with the Act to avoid any potential legal repercussions.