Overview

The Superannuation Supervisory Levy Imposition Determination 2009, enacted in 2009, addresses the need to impose a levy on superannuation entities as stipulated by the Superannuation Supervisory Levy Imposition Act 1998. This Act was enacted by the Commonwealth Parliament to ensure the financial stability and effective regulation of superannuation funds, thus addressing the problem of ensuring adequate supervisory resources for the Australian Prudential Regulation Authority (APRA). The 2009 determination sets out the specifics of the levy for the 2009-10 financial year, including the restricted and unrestricted levy percentages and the calculation of asset values for levy purposes. The policy objective, as outlined in the explanatory statement, is to ensure that APRA has sufficient funding to effectively supervise superannuation entities, thereby maintaining the integrity and stability of the superannuation system. This legislative instrument revokes the previous year's determination and is subject to the provisions of the Legislative Instruments Act 2003.

Scope and Application

The Superannuation Supervisory Levy Imposition Determination 2009 applies to superannuation entities and is made under the Superannuation Supervisory Levy Imposition Act 1998. This legislation specifically targets entities involved in managing superannuation funds, imposing a levy on their operations to fund the Australian Prudential Regulation Authority's (APRA) supervisory activities. The levy operates on a financial year basis, with this particular determination applying to the 2009-10 financial year. Notably, the determination revokes the previous year's levy determination upon its commencement on 1 July 2009, while ensuring that any obligations or liabilities incurred in prior financial years remain in effect. The determination allows the Minister to set specific parameters for the levy, including the restricted and unrestricted levy percentages and the calculation method for a superannuation entity’s asset value. For entities other than small APRA funds (SAFs), the restricted levy is calculated at 0.01525 percent of assets, with a cap between $570 and $225,000, while the unrestricted component is calculated at 0.001212 percent of assets. SAFs are subject to a flat levy of $500 per fund, with both restricted and unrestricted components set at 0 percent. This determination, as a legislative instrument, adheres to the provisions of the Legislative Instruments Act 2003.

Key Provisions

The Superannuation Supervisory Levy Imposition Determination 2009 sets out the specific levy amounts for the 2009-10 financial year, in accordance with section 7(3) of the Superannuation Supervisory Levy Imposition Act 1998. For superannuation funds other than small APRA funds (SAFs), the restricted component of the levy is set at 0.01525 per cent of the entity's assets, with a minimum of $570 and a maximum of $225,000 (sections 2(1) and (2)). The unrestricted component of the levy is calculated at 0.001212 per cent of the entity's assets (section 2(3)). For SAFs, the restricted component is a flat $500 per fund, with no percentage applied to the fund's assets, and the unrestricted component is also set at $500 (sections 2(4) and (5)). These calculations are subject to the asset value determinations specified in the determination (section 3). Superannuation entities, both SAFs and non-SAFs, must comply with these levy calculations as set out in the determination. They must calculate their respective levies accurately and remit the required amounts to the relevant authorities by the specified deadlines. The asset value for these calculations is determined according to the provisions in section 3 of the determination, which provides the methodology for calculating the asset value of a superannuation fund. Non-SAFs must ensure their calculations align with the specified percentages and thresholds, while SAFs must adhere to the flat levy amounts. Breach of the obligations under this determination can lead to enforcement actions. The Act does not explicitly detail specific offences or penalties within the determination itself, but general provisions of the Superannuation Supervisory Levy Imposition Act 1998 and related administrative frameworks apply. Generally, failure to comply with levy obligations may result in penalties such as fines or other financial penalties as prescribed by the relevant legislation. The exact penalties would depend on the specific breach and the applicable laws at the time of enforcement. It is essential for superannuation entities to ensure compliance to avoid any potential penalties or legal consequences.