Federal Register of Legislation - Australian Government

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Determinations/Other as made
This determination relates to a levy imposed on providers of retirement savings accounts (RSA provider) by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998.
Administered by: Treasury
Registered 04 Jul 2016
Tabling HistoryDate
Tabled HR30-Aug-2016
Tabled Senate30-Aug-2016
Date of repeal 01 Jul 2017
Repealed by Retirement Savings Account Providers Supervisory Levy Imposition Determination 2017

EXPLANATORY STATEMENT

Retirement Savings Account Providers Supervisory Levy Imposition Determination 2016

This determination relates to a levy imposed on providers of retirement savings accounts (RSA provider) by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 (the Act).

This determination commences on 1 July 2016 and relates to the 2016‑17 financial year.  The Retirement Savings Account Levy Imposition Determination 2015 is repealed upon commencement of this determination.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 will commence before it is registered.  Commencement prior to registration, however, 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 an RSA provider’s levy base is to be worked out.

This determination provides that the restricted component for the 2016‑17 levy will be calculated at zero per cent of assets held by the entity, subject to a minimum amount of $0 and a maximum amount of $0.  The unrestricted component of the 2016-17 levy will be calculated at zero per cent of assets held by the entity. 

In effect, this means that an RSA provider will not be levied directly in relation to the 2016‑17 financial year.   

The finance sector has been consulted on the 2016‑17 supervisory levies through a Treasury and Australian Prudential Regulation Authority (APRA) discussion paper released on the Treasury website on 6 May 2016.  The paper discusses potential impacts of the levies on each industry sector and institution regulated by APRA.  Eight submissions were received during the consultation process, and no submission specifically raised issues in relation to the Retirement Savings Account Levy Imposition Determination 2016.

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 Legislative Instruments 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

 

Retirement Savings Account Providers Supervisory Levy Imposition Determination 2016

 

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 on providers of retirement savings accounts by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998.

Subsection 7(3) allows the Minister to determine:

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

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

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

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

(h)          how a retirement savings account provider’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.