Commonwealth Numbered Regulations - Explanatory Statements
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SUPERANNUATION (FINANCIAL ASSISTANCE FUNDING) LEVY AND COLLECTION AMENDMENT REGULATIONS 2011 (NO. 1) (SLI NO 82 OF 2011)
EXPLANATORY STATEMENT
Select Legislative Instrument 2011 No. 82
Issued by authority of the Assistant Treasurer
Superannuation (Financial Assistance Funding) Levy Act 1993
Superannuation (Financial Assistance Funding) Levy and Collection Amendment Regulations 2011 (No. 1)
Section 10 of the Superannuation (Financial Assistance Funding) Levy Act 1993 (the Levy Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. The Levy Act provides that regulations may be made to recoup the amount of grants of financial assistance to superannuation funds that have suffered loss as a result of fraudulent conduct or theft made under Part 23 of the Superannuation Industry (Supervision) Act 1993 (SIS Act).
Specifically, the Levy Act provides for the imposition of levies on regulated superannuation funds and approved deposit funds.
The purpose of the amending Regulations was to impose a levy on regulated superannuation funds and approved deposit funds, but not including 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 2010-11 financial year.
The Regulations amended the Superannuation (Financial Assistance Funding) Levy and Collection Regulations 2005, and the total amount of financial assistance granted under Part 23 of the SIS Act was expected to be recouped in the 2011-12 financial year.
Section 6 of the Levy Act provides that the 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. Each levy must be identified in the regulations by a unique number and the regulations may specify a maximum and/or a minimum amount. The unique number of this levy was the Superannuation (Financial Assistance Funding) Levy No. 2010-2011: 1.
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 is not to exceed the amount needed for the Commonwealth to recoup the amount of that financial assistance. Under section 7 of the Levy Act, the total amount of the levy and other such levies imposed under the Levy Act in the same financial year should not exceed 0.05 per cent 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 calculating the amount of a levy imposed on a fund. The applicable rate must not exceed 0.0005.
Regulations set an applicable rate of 0.0001347 and a maximum and minimum levy amount of $750,000 and $50 respectively. The applicable rate, maximum and minimum levy amounts have been fixed so that the amount of revenue that was raised would not exceed the amount needed for the Commonwealth to recoup the $54,994,079 amount of assistance granted in the 2010-11 financial year.
Section 19 of the Financial Institutions Supervisory Levies Collection Act 1998 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 Regulations provided for the levy to be due and payable a minimum of 28 days after registration.
In order to allow funds sufficient time and advanced notification of the levy payable by each fund, the Australian Prudential Regulation Authority provided funds with 60 days from the date of the invoice to pay the levy.
Public consultation on the Regulations was undertaken in mid-May 2011.
The Regulations commenced the day after they were registered on the Federal Register of Legislative Instruments.
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