Overview

The Superannuation Supervisory Levy Imposition Determination 2008, enacted under the Superannuation Supervisory Levy Imposition Act 1998, was introduced to address the need for clear guidelines on the calculation and imposition of supervisory levies on superannuation entities for the 2008-09 financial year. This legislative instrument, determined by the Minister, sets out specific percentages and thresholds for both restricted and unrestricted components of the levy for different types of superannuation funds, including a differentiated approach for small APRA funds (SAFs). The determination also revokes the previous year's levy determination, ensuring that the most current financial year's levy structure is in effect. The policy objective, as outlined in the Explanatory Statement, was to provide certainty and clarity to superannuation entities regarding their financial obligations for the specified financial year.

Scope and Application

The Superannuation Supervisory Levy Imposition Determination 2008 applies to superannuation entities, specifically targeting their assets to determine the applicable levy for the 2008-09 financial year. This determination, made under the Superannuation Supervisory Levy Imposition Act 1998, specifies the levy rates for both restricted and unrestricted components, tailored differently for small APRA funds and other superannuation funds. It applies across the Commonwealth, with the levy rates set for the financial year beginning on 1 July 2008, replacing the previous year's determination. Notably, any liabilities or obligations incurred before the commencement of this determination remain valid. The Act mandates the calculation of asset values for levy purposes and outlines thresholds for both minimum and maximum levy amounts, with small APRA funds being levied a flat fee of $500. This legislative instrument is subject to consultation with the finance sector and is issued under the authority of the Legislative Instruments Act 2003.

Key Provisions

The Superannuation Supervisory Levy Imposition Determination 2008, under the Superannuation Supervisory Levy Imposition Act 1998, sets out the specific rates and calculations for the 2008-09 financial year levy on superannuation entities (sections 1, 7(3)). The key provisions of this determination include the maximum and minimum restricted levy amounts, the restricted levy percentage, and the unrestricted levy percentage for the specified financial year (section 7(3)(a)-(d)). For superannuation funds other than small APRA funds (SAFs), the restricted component of the levy for the 2008-09 financial year is calculated at 0.01348 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 0.000844 per cent of the assets held by the entity. For SAFs, the restricted component is set at 0 per cent, with a flat levy of $500, which serves as both the minimum and maximum levy for these funds. The obligations imposed by this determination on superannuation entities include the calculation and payment of the specified levy amounts for the 2008-09 financial year. Superannuation funds other than SAFs must calculate their restricted and unrestricted levies based on the asset values, adhering to the minimum and maximum thresholds set out in the determination. SAFs, on the other hand, must ensure they pay the flat levy amount of $500. The determination also requires entities to maintain records and documentation demonstrating compliance with these levy calculations and payments. Failure to comply with the requirements of this determination may result in various consequences. Although the specific penalties are not detailed in the text, breaches of the Superannuation Supervisory Levy Imposition Act 1998 could potentially lead to enforcement actions by the relevant authorities. These actions might include fines, legal proceedings, or other administrative penalties. The precise nature and extent of these penalties would depend on the specific circumstances of the breach and the applicable provisions of the Act. It is important for superannuation entities to ensure full compliance to avoid any adverse legal or financial repercussions.