Superannuation Supervisory Levy Imposition Determination 2018

Administered by Department of the Treasury

Legislation au F2018L00984 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Superannuation Supervisory Levy Imposition Determination 2018

This determination relates to a levy imposed by the Superannuation Supervisory Levy Imposition Act 1998 (the Act) on superannuation entities.

This determination commences on 1 July 2018 and relates to the 2018‑19 financial year. The Superannuation Supervisory Levy Imposition Determination 2017 is repealed upon commencement of this determination. Consistent with section 7 of the Acts Interpretation Act 1901, any obligation or liability incurred in previous financial years remains valid.

The determination commences, or is taken to have commenced, before it is registered. However, commencement prior to registration does not disadvantageously affect the rights of any person as at the date of registration, or impose any liability on any person in respect of anything done, or omitted to be done, before the date of registration. Commencement prior to registration is therefore consistent with subsections 12(2) and 12(3) of the Legislation Act 2003.

Subsection 7(3) of the Act requires the Treasurer, by legislative instrument, to determine:

(a)   the maximum restricted levy amount for each financial year;

(b)   the minimum restricted levy amount for each financial year;

(c)   the restricted levy percentage for each financial year;

(ca) the unrestricted levy percentage for each financial year; and

(d)   how a superannuation entity’s levy base is to be worked out.

For superannuation funds other than small APRA funds (SAFs) and single member approved deposit funds (SMADFs), this determination provides that the restricted component of the 2018‑19 levy will be calculated at 0.00274 per cent of assets held by the entity, subject to a minimum of $5,000 and a maximum of $325,000. The unrestricted component of the 2018‑19 levy will be calculated at 0.003911 per cent of assets held by the entity.

For SAFs and SMADFs, this determination provides that the restricted component of the 2018‑19 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. The unrestricted component of the 2018-19 levy will be calculated at zero per cent of assets held by the entity. In effect, SAFs and SMADFs will be levied a flat amount of $590 per fund.

In 2018-19, Pooled Superannuation Trusts (PSTs), as defined in the Superannuation Industry (Supervision) Act 1993, are to be levied separately to other superannuation funds, SAFs and SMADFs. This determination provides that for PSTs the restricted component of the 2018-19 levy will be calculated at 0.00137 per cent of assets held by the entity, subject to a minimum of $5,000 and a maximum of $162,500. The unrestricted component of the levy will be calculated at 0.001040 per cent of assets held by the entity. 

The amount of employer-sponsored receivables that are part of a superannuation entity’s assets will   not count towards the value of the entity’s assets for the purposes of calculating the amount of levy payable to APRA.

The finance sector has been consulted on the 2018‑19 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 11 May 2018. The discussion paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA. Six submissions were received during the consultation process, none of which related specifically to the methodology for this levy.

The Office of Best Practice Regulation has previously advised that a Regulatory Impact Statement is not required as supervisory levies are considered machinery‑of‑government in nature. 

This determination is a legislative instrument for the purposes of the Legislation Act 2003.

A statement of compatibility with human rights for the purposes of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is set out in Attachment 1.


Attachment 1

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Superannuation Supervisory Levy Imposition Determination 2018

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

This determination relates to a levy imposed by the Superannuation Supervisory Levy Imposition Act 1998 (the Act) on superannuation entities.

Subsection 7(3) of the Act requires the Treasurer to determine:

(a)   the maximum restricted levy amount for each financial year;

(b)   the minimum restricted levy amount for each financial year;

(c)   the restricted levy percentage for each financial year;

(ca) the unrestricted levy percentage for each financial year; and

(d)   how an authorised deposit‑taking institution’s asset value is to be calculated.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

Overview

The Superannuation Supervisory Levy Imposition Determination 2018 was enacted to regulate the imposition of a levy on superannuation entities as prescribed by the Superannuation Supervisory Levy Imposition Act 1998. This Act was introduced to address the need for a systematic method to fund the Australian Prudential Regulation Authority's (APRA) supervision of the superannuation industry, ensuring that the entities under its purview contribute towards their oversight costs. The determination was made by the Treasurer under the authority of subsection 7(3) of the Act, and it commenced on 1 July 2018 for the 2018-19 financial year, repealing the previous year's determination. The policy objective behind this legislative instrument is to provide a clear and consistent framework for levy calculations, ensuring that all superannuation entities, including small APRA funds, single member approved deposit funds, and Pooled Superannuation Trusts, contribute appropriately towards the cost of their regulation.

Scope and Application

The Superannuation Supervisory Levy Imposition Determination 2018 applies to superannuation entities, including superannuation funds, small APRA funds, single member approved deposit funds, and Pooled Superannuation Trusts, which are subject to the Superannuation Supervisory Levy Imposition Act 1998. The determination specifies the method and rates at which the supervisory levy is to be imposed on these entities for the 2018-19 financial year. It applies nationally across Australia and is administered by the Australian Prudential Regulation Authority (APRA). This determination, as a legislative instrument, is subject to the provisions of the Legislation Act 2003, and it includes provisions for commencement before registration to ensure the continuity of obligations and liabilities incurred in previous financial years. The Act excludes certain assets from the calculation of the levy, specifically employer-sponsored receivables, and the rates and thresholds for the levy vary depending on the type of superannuation entity. Additionally, a statement of compatibility with human rights has been provided, confirming that the instrument does not engage any of the applicable rights or freedoms, thereby ensuring compliance with the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Superannuation Supervisory Levy Imposition Determination 2018, which implements the Superannuation Supervisory Levy Imposition Act 1998, sets out the levy amounts for the 2018-19 financial year. This determination (sections 1-4) specifies the restricted and unrestricted levy percentages for different categories of superannuation entities, including standard funds, small APRA funds (SAFs), single member approved deposit funds (SMADFs), and Pooled Superannuation Trusts (PSTs). The restricted and unrestricted components are calculated based on a percentage of the entity's assets, with some variations for different categories of funds (subsection 7(3)(a)-(d)). For standard funds, the restricted levy is 0.00274 per cent of assets, with a minimum of $5,000 and a maximum of $325,000, while the unrestricted levy is 0.003911 per cent of assets. SAFs and SMADFs are levied a flat amount of $590, while PSTs are levied at 0.00137 per cent of assets for the restricted component and 0.001040 per cent for the unrestricted component, with minimum and maximum limits applied. These percentages and limits are crucial for calculating the exact levy amounts due from each superannuation entity. The Act imposes specific obligations on superannuation entities to calculate their levy amounts based on the determination and to remit these amounts to the Australian Prudential Regulation Authority (APRA) by the due date. Superannuation entities must ensure that their asset values are accurately determined and that the correct percentages are applied to these values to calculate the restricted and unrestricted levy components. This includes maintaining records and documentation that support the calculation of these levies to ensure compliance with the Act. The determination also requires entities to be aware of the specific thresholds and limits that apply to their category of fund, which may vary significantly between different types of superannuation entities. Breaches of the obligations imposed by the Act can result in penalties. The Act does not explicitly state the penalties for non-compliance, but penalties for non-compliance with similar regulatory requirements can include fines and, in severe cases, legal action against the responsible officers of the superannuation entity. The exact penalties would depend on the specific circumstances of the breach and the provisions of other relevant legislation, such as the Corporations Act 2001. It is important for superannuation entities to ensure full compliance to avoid these potential consequences.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.