2008 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time First Home Saver Account Providers Supervisory Levy Imposition Bill 2008 No. , 2008 (Treasury) A Bill for an Act to impose a levy in relation to the provision of first home saver accounts [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Act binds the Crown .......................................................................... 1 4 External Territories ............................................................................ 2 5 Definitions ......................................................................................... 2 6 Imposition of first home saver account providers supervisory levy .................................................................................................... 3 7 Amount of levy .................................................................................. 3 8 Calculation of indexation factor......................................................... 5 i First Home Saver Account Providers Supervisory Levy Imposition Bill 2008 No. , 2008 [Page Break] 2 provision of first home saver accounts 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the First Home Saver Account Providers 6 Supervisory Levy Imposition Act 2008. 7 2 Commencement 8 This Act commences on 1 July 2009. 9 3 Act binds the Crown 10 This Act binds the Crown in each of its capacities. First Home Saver Account Providers Supervisory Levy Imposition Bill 2008 No. , 2008 1 [Page Break] 1 4 External Territories 2 This Act extends to every external Territory. 3 5 Definitions 4 In this Act: 5 ADI has the same meaning as in the First Home Saver Accounts 6 Act 2008. 7 APRA means the Australian Prudential Regulation Authority. 8 FHSA has the same meaning as in the First Home Saver Accounts 9 Act 2008. 10 FHSA trust has the same meaning as in the First Home Saver 11 Accounts Act 2008. 12 indexation factor means the indexation factor calculated under 13 section 8. 14 index number, in relation to a quarter, means the All Groups 15 Consumer Price Index number, being the weighted average of the 8 16 capital cities, published by the Australian Statistician in respect of 17 that quarter. 18 leviable FHSA entity means: 19 (a) a body corporate that has notified APRA in accordance with 20 section 123 of the First Home Saver Accounts Act 2008 and 21 has not revoked that notice under section 123A of that Act; or 22 (b) a trustee that is authorised under section 92 of that Act. 23 levy imposition day, in relation to a leviable FHSA entity for a 24 financial year, means: 25 (a) if the leviable FHSA entity is a leviable FHSA entity on 26 1 July of the financial year--that day; or 27 (b) in any other case--the day, during the financial year, on 28 which the leviable FHSA entity becomes a leviable FHSA 29 entity. 2 First Home Saver Account Providers Supervisory Levy Imposition Bill 2008 No. , 2008 [Page Break] 1 life insurance company has the same meaning as in the First 2 Home Saver Accounts Act 2008. 3 statutory upper limit means: 4 (a) in relation to the financial year commencing on 1 July 5 2009--$1,500,000; or 6 (b) in relation to a later financial year--the amount calculated by 7 multiplying the statutory upper limit for the previous 8 financial year by the indexation factor for the later financial 9 year. 10 6 Imposition of first home saver account providers supervisory levy 11 Levy payable in accordance with subsection 8(7) of the Financial 12 Institutions Supervisory Levies Collection Act 1998 is imposed. 13 7 Amount of levy 14 (1) Subject to subsection (4), the amount of levy payable by a leviable 15 FHSA entity for a financial year is the sum of the restricted levy 16 component and the unrestricted levy component for the financial 17 year. 18 Note: For restricted levy component, see subsection (2). For unrestricted 19 levy component, see subsection (3). 20 (2) The restricted levy component for the financial year is: 21 (a) unless paragraph (b) or (c) applies--the amount that, for the 22 financial year, is the restricted levy percentage of the leviable 23 FHSA entity's asset value; or 24 (b) if the amount worked out under paragraph (a) exceeds the 25 maximum restricted levy amount for the financial year--the 26 maximum restricted levy amount; or 27 (c) if the amount worked out under paragraph (a) is less than the 28 minimum restricted levy amount for the financial year--the 29 minimum restricted levy amount. 30 Note: The restricted levy percentage, maximum restricted levy amount, 31 minimum restricted levy amount and the method of working out the 32 leviable FHSA entity's asset value are as determined under 33 subsection (5). First Home Saver Account Providers Supervisory Levy Imposition Bill 2008 No. , 2008 3 [Page Break] 1 (3) The unrestricted levy component for the financial year is the 2 amount that, for the financial year, is the unrestricted levy 3 percentage of the leviable FHSA entity's asset value. 4 Note: The unrestricted levy percentage is as determined under 5 subsection (5). 6 (4) If the levy imposition day for the leviable FHSA entity for the 7 financial year is later than 1 July in the financial year, the amount 8 of levy payable by the provider for the financial year is the amount 9 worked out using the following formula: The amount worked out The number of days in under subsection (1) 10 × 1 + the financial year after The number of days the levy imposition day in the financial year 11 (5) The Treasurer must, by legislative instrument, determine: 12 (a) the maximum restricted levy amount for each financial year; 13 and 14 (b) the minimum restricted levy amount for each financial year; 15 and 16 (c) the restricted levy percentage for each financial year; and 17 (d) the unrestricted levy percentage for each financial year; and 18 (e) how a leviable FHSA entity's asset value is to be worked 19 out. 20 (6) An amount determined under paragraph (5)(a) as the maximum 21 restricted levy amount must not exceed the statutory upper limit as 22 at the time when the determination is made. 23 (7) The Treasurer's determination under paragraph (5)(e) of how a 24 leviable FHSA entity's asset value is to be worked out must: 25 (a) in the case of a leviable FHSA entity that is the trustee of a 26 trust--specify that the value is to be worked out using the 27 total value of the assets of FHSA trusts provided by the 28 entity; and 29 (b) in the case of a leviable FHSA entity that is an ADI or a life 30 insurance company--specify that the value is to be worked 31 out using the balances of all FHSAs provided by the entity. 4 First Home Saver Account Providers Supervisory Levy Imposition Bill 2008 No. , 2008 [Page Break] 1 (8) The Treasurer's determination under paragraph (5)(e) of how a 2 leviable FHSA entity's asset value is to be worked out must 3 include, but is not limited to, a determination of the day as at which 4 the leviable FHSA entity's asset value is to be worked out. That 5 day must be: 6 (a) if the leviable FHSA entity was a leviable FHSA entity at all 7 times from and including 17 March of the previous financial 8 year to and including the following 30 June--a day in the 9 period from and including that 17 March to and including the 10 following 14 April; or 11 (b) if the leviable FHSA entity was not a leviable FHSA entity at 12 all times from and including 17 March of the previous 13 financial year to and including the following 30 June--the 14 day after that 17 March when the leviable FHSA entity 15 became, or becomes, a leviable FHSA entity. 16 (9) A determination under subsection (5) may make different provision 17 for different classes of leviable FHSA entity. 18 8 Calculation of indexation factor 19 (1) The indexation factor for a financial year is the number worked 20 out by: 21 (a) dividing the index number for the March quarter immediately 22 preceding that financial year by the index number for the 23 March quarter immediately preceding that first-mentioned 24 March quarter; and 25 (b) adding 0.030 to the number worked out under paragraph (a). 26 (2) The indexation factor is to be calculated to 3 decimal places, but 27 increased by .001 if the 4th decimal place is more than 4. 28 (3) Calculations under paragraph (1)(a) are to be made: 29 (a) using only the index numbers published in terms of the most 30 recently published reference base for the Consumer Price 31 Index; and 32 (b) disregarding index numbers published in substitution for 33 previously published index numbers (except where the 34 substituted numbers are published to take account of changes 35 in the reference base). 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