Commonwealth Numbered Regulations - Explanatory Statements

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INSURANCE SUPERVISORY LEVIES COLLECTION REGULATIONS (AMENDMENT) 1994 NO. 323

Statutory Rules 1994 No. 323

Issued by Authority of the Treasurer

Insurance Supervisory Levies Collection Act 1989

Insurance Supervisory Levies Collection Regulations (Amendment)

Section 12 of the Insurance Supervisory Levies Collection Act 1989 (the Act) provides that the Governor-General may make regulations for the purposes of the Act and in particular, to provide for exemptions from levy and for remissions of levy.

The Act provides for the collection of annual supervisory levies imposed on authorised general insurers and Lloyd's, and registered life offices by the General insurance Levies Act 1989 and the Life Insurance supervisory Levy Act 1989 respectively. The Act is aimed at recovering the ongoing cost of supervision of such bodies under the Insurance Act 1973 and the Life Insurance Act 1945 by the Insurance and Superannuation Commissioner.

Regulation 3 of the Insurance Supervisory Levies Collection Regulations allows for remission from the full amount of levy for insurers authorised under section 37 of the Insurance Act 1973.

The amendment to the regulation increases the amount of remission applicable to such insurers from $11,000 to $13,800. The amendment raises the annual rate of levy payable by insurers authorised under section 37 of the Insurance Act 1973 to $2,500, following an increase in the annual rate of the supervisory levy imposed under the General Insurance Supervisory Levy Act 1989 from $13,000 to $16,300. The amendments to the levy structure ensure that section 37 companies have a similar proportional increase in their levy as that prescribed by the increase in the annual rate imposed under the General Insurance Supervisory Levy Act 1989.