Overview

The Superannuation Supervisory Levy Imposition Determination 2016 was enacted to address the need for regulatory oversight and funding within the superannuation industry in Australia. This legislation was introduced by the Parliament of Australia and operates under the framework of the Superannuation Supervisory Levy Imposition Act 1998. The primary policy objective of this determination is to establish the financial parameters for the supervisory levy that applies to superannuation entities for the 2016-17 financial year. By setting specific percentages and caps for both restricted and unrestricted levies, the determination aims to ensure that adequate resources are available for the supervision of superannuation funds, thereby maintaining the integrity and stability of the superannuation system. This legislative instrument ensures that the levy is calculated based on the assets held by the entities, with differentiated rates for various types of superannuation funds, including small APRA funds and single member approved deposit funds, while also separately accounting for Pooled Superannuation Trusts.

Scope and Application

The Superannuation Supervisory Levy Imposition Determination 2016 applies to superannuation entities as defined under the Superannuation Supervisory Levy Imposition Act 1998, including various types of superannuation funds such as small APRA funds (SAFs), single member approved deposit funds (SMADFs), and Pooled Superannuation Trusts (PSTs). This legislative instrument sets out the specific levy percentages for the 2016-17 financial year, varying by the type of superannuation fund, and outlines the methodology for calculating these levies based on the assets held by these entities. The determination is applicable nationally as it pertains to entities operating within the Australian financial and superannuation sectors, governed by the Commonwealth. There are no exclusions or exemptions outlined in the determination itself, though specific thresholds and caps on the minimum and maximum levy amounts are prescribed for different categories of superannuation funds. The Act may be extended or restricted through subordinate instruments as deemed necessary by the Minister, in line with the provisions of the Superannuation Supervisory Levy Imposition Act 1998.

Key Provisions

The Superannuation Supervisory Levy Imposition Determination 2016 (the Determination) is a legislative instrument that sets out the specifics of the levy imposed by the Superannuation Supervisory Levy Imposition Act 1998 on superannuation entities for the 2016-17 financial year. The main operative sections of this Determination, as per subsection 7(3) of the Act, require the Treasurer to determine the maximum and minimum restricted levy amounts, the restricted and unrestricted levy percentages, and how a superannuation entity’s levy base is to be calculated. Section 7(3)(a) specifies that for the 2016-17 financial year, the maximum restricted levy for superannuation funds (excluding small APRA funds and single member approved deposit funds) is $260,000, while the minimum is $2,500. The restricted levy percentage for these funds is set at 0.00324 per cent of the fund's assets. Section 7(3)(b) states that the unrestricted levy percentage for these funds is 0.007075 per cent of assets. For small APRA funds and single member approved deposit funds, both the restricted and unrestricted levy percentages are zero, with a flat levy amount of $590 applied. Section 7(3)(c) and (d) detail that Pooled Superannuation Trusts have a restricted levy percentage of 0.00162 per cent, with a maximum levy of $130,000 and a minimum of $2,500, and an unrestricted levy percentage of 0.001641 per cent. The Determination imposes several obligations on the entities it governs. Superannuation entities must calculate their levy based on the percentages and amounts specified in the Determination. Specifically, entities need to determine their levy base by calculating the applicable percentage of their assets, ensuring they do not exceed the maximum or fall below the minimum levy amounts as specified. The Determination also requires entities to report and remit the calculated levy to the relevant authorities by the specified deadlines. The Determination’s provisions are designed to ensure compliance with the supervisory levy requirements, thereby maintaining the integrity and oversight of superannuation entities within the regulatory framework. Breaches of the obligations set out in the Determination can lead to civil and criminal consequences. While the Determination does not explicitly detail penalties for non-compliance, the Superannuation Supervisory Levy Imposition Act 1998 and other related legislation may impose penalties. For instance, failure to remit the required levy can result in civil penalties, including fines. In more severe cases, non-compliance may lead to criminal charges, potentially resulting in imprisonment, depending on the specific breaches and the applicable laws. It is important for entities to adhere to the requirements to avoid these potential consequences.