EXPLANATORY STATEMENT

Superannuation Supervisory Levy Imposition Determination 2008

This determination relates to a levy imposed by the Superannuation Supervisory Levy Imposition Act 1998 on superannuation entities.

This determination commences on 1 July 2008 and relates to the 2008‑09 financial year.  The Superannuation Supervisory Levy Imposition Determination 2007 is revoked upon commencement of this determination.  Consistent with section 50 of the Acts Interpretation Act 1901, any obligation or liability incurred in previous financial years remains valid.

Subsection 7(3) of the Superannuation Supervisory Levy Imposition Act 1998 allows the Minister to determine;

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

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

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

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

(d)          how a superannuation entity’s asset value is to be calculated.

For superannuation funds other than small APRA funds (SAFs), this determination provides that the restricted component of the 2008‑09 levy will be calculated at 0.01348 per cent of assets held by the entity, subject to a minimum of $570 and a maximum of $200,000.  The unrestricted component of the 2008-09 levy will be calculated at 0.000844 per cent of assets held by the entity.

For SAFs, this determination provides that the restricted component of the 2008‑09 levy will be calculated at 0 per cent of assets held by the entity, subject to a minimum of $500 and a maximum of $500.  The unrestricted component of the 2008-09 levy will be calculated at 0 per cent of assets held by the entity.  In effect, SAFs will be levied a flat amount of $500.

The finance sector has been consulted on the 2008‑09 supervisory levies through a Treasury and Australian Prudential Regulation Authority Consultation Paper released on 28 May 2008 and a number of follow-up meetings to discuss the issues in the paper.

This determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.