Overview

The Superannuation Supervisory Levy Imposition Determination 2014 was enacted to provide a framework for the imposition of a levy on superannuation entities, as mandated by the Superannuation Supervisory Levy Imposition Act 1998. This legislative instrument, issued by the Parliament of Australia, seeks to establish the parameters for calculating the restricted and unrestricted components of the levy for the 2014-15 financial year, addressing the need for a transparent and fair system of financial oversight within the superannuation sector. The determination ensures that different types of superannuation funds, including Pooled Superannuation Trusts, are levied according to their specific circumstances, while also considering the policy objectives of maintaining regulatory integrity and financial stability within the industry.

Scope and Application

The Superannuation Supervisory Levy Imposition Determination 2014 applies to superannuation entities, specifically targeting the imposition of a levy as outlined under the Superannuation Supervisory Levy Imposition Act 1998. This legislation is applicable on a Commonwealth level, affecting entities such as self-managed superannuation funds, industry super funds, and retail super funds, excluding only small APRA funds, which are subject to a flat levy. The determination sets out the parameters for calculating both restricted and unrestricted levy components for the 2014-15 financial year, with varying percentages and caps based on the type of superannuation entity. Notably, for non-small APRA funds, the restricted levy is calculated at 0.00513 per cent of assets held, subject to a minimum of $590 and a maximum of $260,000, while the unrestricted component is at 0.009841 per cent of assets. Small APRA funds, however, face a flat levy of $590 per fund. Pooled Superannuation Trusts are levied separately, with the restricted component at 0.00257 per cent and the unrestricted component at 0.001758 per cent of assets held, subject to different minimum and maximum thresholds. The determination does not disadvantage any person and is compliant with human rights as it does not engage any of the rights or freedoms under the applicable international instruments.

Key Provisions

The Superannuation Supervisory Levy Imposition Determination 2014 (the Determination) provides the specifics for the levy imposed by the Superannuation Supervisory Levy Imposition Act 1998 (the Act) on superannuation entities for the 2014-15 financial year. It commences on 1 July 2014, replacing the Superannuation Supervisory Levy Imposition Determination 2013, and specifies the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and the methodology for calculating a superannuation entity's levy base (subsection 7(3) of the Act). The Determination is consistent with the Legislative Instruments Act 2003, allowing for commencement prior to registration without affecting the rights of any person adversely. Under the Determination, for superannuation funds other than small APRA funds (SAFs), the restricted component of the 2014-15 levy will be calculated at 0.00513 per cent of assets held by the entity, subject to a minimum of $590 and a maximum of $260,000. The unrestricted component will be calculated at 0.009841 per cent of assets held by the entity (subsection 7(3)(a) and (b) of the Act). For SAFs, the restricted component of the 2014-15 levy will be calculated at zero per cent of assets held by the entity, subject to a minimum of $590 and a maximum of $590, effectively levying a flat amount of $590 per fund (subsection 7(3)(a) and (b) of the Act). Pooled Superannuation Trusts (PSTs) are levied separately, with the restricted component calculated at 0.00257 per cent of assets held by the entity, subject to a minimum of $590 and a maximum of $130,000, and the unrestricted component calculated at 0.001758 per cent of assets held by the entity (subsection 7(3)(a) and (b) of the Act). The Determination imposes obligations on superannuation entities to calculate and pay the specified levies based on their asset values. Entities must ensure compliance with the prescribed percentages and limits set out in the Determination. Failure to comply with these obligations can lead to financial penalties and legal consequences. Although the Act does not explicitly outline specific offences, penalties, or consequences for breach, it is reasonable to infer that non-compliance with the levy requirements could result in enforcement actions under the Act or related legislation. Given the nature of the Act and the regulatory framework, penalties could potentially include fines or other financial sanctions, as is common in similar regulatory contexts. The Determination also includes a statement of compatibility with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011, asserting that the instrument is compatible with the human rights and freedoms recognised in international instruments. This statement concludes that the Determination does not engage any applicable rights or freedoms and is therefore compatible with human rights. This aspect underscores the legislative intent to align the financial obligations with broader human rights considerations, ensuring that the levy imposition does not unduly infringe on any recognised human rights.