Federal Register of Legislation - Australian Government

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SLI 2005 No. 82 Regulations as made
These Regulations impose levies on certain superannuation funds to recoup grants of financial assistance made under Part 23 of the Superannuation (Industry) Supervision Act 1993.
Administered by: Treasury
Registered 12 May 2005
Tabling HistoryDate
Tabled HR23-May-2005
Tabled Senate14-Jun-2005
Date of repeal 09 Aug 2013
Repealed by Treasury (Spent and Redundant Instruments) Repeal Regulation 2013

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2005 No. 82

 

Subject -     Superannuation (Financial Assistance Funding) Levy Act 1993

Financial Institutions Supervisory Levies Collection Act 1998

                   The Superannuation (Financial Assistance Funding) Levy and Collection Regulations                2005

The Superannuation (Financial Assistance Funding) Levy Act 1993 (the Levy Act) provides for the imposition of levies on regulated superannuation funds and approved deposit funds to recoup the amount of grants of financial assistance made under Part 23 of the Superannuation Industry (Supervision) Act 1993 (the SIS Act) to superannuation funds that have suffered loss as a result of fraudulent conduct or theft.  The Financial Institutions Supervisory Levies Collection Act 1998 (the Levies Collection Act) provides for the collection of levies imposed under the Levy Act and certain other Acts.

Section 10 of the Levy Act and section 29 of the Levies Collection Act provide that the Governor-General may make regulations prescribing matters required or permitted by the Acts to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Acts.

In the 2002-03 financial year, the Minister for Revenue and Assistant Treasurer made 543 determinations to grant financial assistance. The total amount of financial assistance granted was $22.6 million.  A further 79 determinations, granting $6.4 million were made in the 2003-04 financial year.

The Superannuation (Financial Assistance Funding) Levy and Collection Regulations 2005 will recoup these amounts as well as the outstanding $3.5 million shortfall in levy collections under the Superannuation (Financial Assistance Funding) Levy Regulations 2003 (2003 FAL Regulations) which recouped grants of assistance made in 2001-02.

Section 6 of the Levy Act provides that regulations may impose a levy or levies on each fund other than those to which grants under Part 23 of the SIS Act were made during the year in question.  Such regulations must specify the funds in respect of which determinations to grant assistance were made and the proportion of the levy that each fund represents. Each levy must be identified in the regulations by a unique number and the regulations may specify a maximum and/or a minimum amount of levy.

Section 7 of the Levy Act provides that the rate, minimum amount and maximum amount of a levy or levies are to be fixed on the basis that the amount of revenue to be raised does not exceed the amount needed for the Commonwealth to recoup the amount of that financial assistance.  Section 7 of the Levy Act also provides that the levy rate of a levy or levies should not exceed 0.05% of the sum of the values at the end of the previous financial year of all the assets of the funds on which the levy or levies are imposed.

Section 8 of the Levy Act specifies the formula to be used in working out the amount of a levy imposed on a fund.  The applicable rate must not exceed 0.005 per cent of a fund’s assets in the previous financial year.

Section 19 of the Levies Collection Act provides that a levy payable by a fund is due on a date specified in the regulations and that the date must not be earlier than the 28th day after the day on which those regulations took effect.

The purpose of the proposed regulations is to impose levies on regulated superannuation funds and approved deposit funds, other than self managed superannuation funds and levy exempt funds, to recoup the total amount of financial assistance granted under Part 23 of the SIS Act in the 2002-03 and 2003-04 financial years as well as $3.5 million of financial assistance granted in 2001-02 but not recouped by the Superannuation (Financial Assistance Funding) Levy Regulations 2003.  

The regulations specify the funds for which a determination was made to grant financial assistance and the proportion of the levy that each fund represents and exempts those funds from the levies.  The unique numbers of the levies are Superannuation (Financial Assistance Funding) Levy No. 2001-2002:2, Superannuation (Financial Assistance Funding) Levy No. 2002-2003:1 and Superannuation (Financial Assistance Funding) Levy No. 2003-2004:1.

The applicable rates and the maximum and minimum levy amounts have been fixed on the basis that the amount of revenue that would be raised by each levy would not exceed the amount needed for the Commonwealth to recoup the $3.5 million of outstanding financial assistance granted in the 2001-02 financial year and the total amount of assistance granted in the 2002-03 and 2003-04 financial years. 

In finalising the levy amounts, the draft regulations and explanatory memorandum was released on the Department of the Treasury web-site in April 2004 for public comment.  Peak industry bodies were also contacted via email for their comment.

The Levy and Levies Collection Acts do not impose any conditions that need to be met before the power to make the proposed regulations may be exercised.

The regulations are legislative instruments for the purposes of the Legislative Instruments Act 2003.

The proposed regulations will commence on registration and provide for the levy to be due and payable on 14 June 2005 or, where APRA so permits, within 30 days of that date.

                                                                            Authority:       Section 10 of the Superannuation (Financial Assistance Funding) Levy Act 1993

                                                                                                 Section 29 of the Financial Institutions Supervisory Levies Collection Act 1998