Overview

The Superannuation Supervisory Levy Imposition Determination 2011 is a legislative instrument that establishes the supervisory levy rates for superannuation entities for the 2011-12 financial year, as authorised by the Superannuation Supervisory Levy Imposition Act 1998. This Act was introduced to address the need for a structured and regulated approach to the imposition of supervisory levies on superannuation funds, thereby ensuring adequate oversight and accountability within the superannuation sector. Enacted by the Parliament of Australia, the policy objective behind this determination is to maintain a stable and efficient regulatory environment for superannuation entities by setting specific levy rates that reflect the varying sizes and complexities of these entities. This approach ensures that the financial burden of supervision is appropriately distributed across the sector, while also providing sufficient resources for the Australian Prudential Regulation Authority to effectively carry out its regulatory functions.

Scope and Application

The Superannuation Supervisory Levy Imposition Determination 2011 applies to superannuation entities as defined under the Superannuation Supervisory Levy Imposition Act 1998. This legislation imposes a levy on these entities to cover the costs of regulating the superannuation industry. The determination specifies the rates and calculations for the restricted and unrestricted components of the levy for the 2011-12 financial year. Notably, the determination differentiates between standard superannuation funds and small APRA funds (SAFs), with SAFs being subject to a flat levy of $500 per fund. The determination revokes the previous year's levy rates on 1 July 2011 but ensures that any obligations incurred under the previous rates remain valid. The application of this determination is governed by the provisions of the Acts Interpretation Act 1901 and is a legislative instrument under the Legislative Instruments Act 2003, allowing for further refinement and specification through subordinate instruments if necessary.

Key Provisions

The Superannuation Supervisory Levy Imposition Determination 2011 (F2011L01331) sets out the specifics of a levy imposed by the Superannuation Supervisory Levy Imposition Act 1998 on superannuation entities for the 2011-12 financial year. It revokes the previous year's determination, effective from 1 July, but ensures that any obligations or liabilities incurred under the previous determination remain valid (subsection 50, Acts Interpretation Act 1901). This determination allows the Minister to set the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and how the asset value of a superannuation entity is to be calculated (subsection 7(3), Superannuation Supervisory Levy Imposition Act 1998). Superannuation entities, excluding small APRA funds (SAFs), are required to calculate their restricted component of the 2011-12 levy at 0.01264 per cent of their assets held, with a minimum of $570 and a maximum of $260,000. The unrestricted component of the levy is set at 0.001534 per cent of the entity's assets. For SAFs, the restricted component is set at zero per cent, with a flat levy of $500 applied per fund, which serves as both the minimum and maximum levy amount. The obligations imposed on superannuation entities by this determination include the accurate calculation of the levy based on the specified percentages and asset values, with compliance being mandatory for the 2011-12 financial year. These entities must ensure that their asset values are correctly determined as per the guidelines set out in the determination, and that the appropriate levy amounts are calculated and remitted to the relevant authorities. Breach of the provisions outlined in this determination may lead to various consequences, though the specific offences, penalties, or civil/criminal consequences are not detailed within this text. However, generally, failure to comply with such legislative instruments can result in fines, legal action, or other penalties as prescribed under the relevant Acts. The exact penalties would depend on the specifics of the breach and any related statutory provisions.