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This is a Bill, not an Act. For current law, see the Acts databases.
1996-97-98
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Financial
Institutions Supervisory Levies Collection Bill
1998
No. ,
1998
(Treasury)
A Bill
for an Act to make provision for the collection of levies imposed in respect of
various financial institutions, and for related purposes
9803520—787/24.3.1998—(35/98)
Cat. No. 97 2820 1 ISBN 0644 518707
Contents
A Bill for an Act to make provision for the collection of
levies imposed in respect of various financial institutions, and for related
purposes
The Parliament of Australia enacts:
This Act may be cited as the Financial Institutions Supervisory Levies
Collection Act 1998.
This Act commences on the commencement of the Australian Prudential
Regulation Authority Act 1998.
This Act binds the Crown in each of its capacities.
This Act extends to each external Territory.
(1) This Act applies to Lloyd’s (within the meaning of section 3 of
the Insurance Act 1973), at all times after the commencement of this Act,
as if Lloyd’s were a body corporate authorised under that Act to carry on
insurance business.
(2) Nothing in this Act makes any Lloyd’s underwriter liable to pay
levy under this Act.
In this Act, unless the contrary intention appears:
APRA means the Australian Prudential Regulation
Authority.
In this Part, unless the contrary intention appears:
ADI has the same meaning as in the Banking Act
1959.
Note: ADI is short for authorised deposit-taking
institution.
authorised NOHC has the same meaning as in the Banking Act
1959.
Note: NOHC is short for non-operating holding
company.
business day means a day that is not a Saturday, a Sunday, a
public holiday or a bank holiday in the place concerned.
general insurance company means a body corporate that is
authorised under the Insurance Act 1973 to carry on insurance business
within the meaning of that Act.
late payment penalty means penalty payable under section
10.
leviable body means any of the following types of
bodies:
(a) an ADI;
(b) an authorised NOHC;
(c) a life insurance company;
(d) a general insurance company;
(e) an RSA provider;
(f) a superannuation entity.
levy means:
(a) in respect of a leviable body that is an ADI—levy imposed by the
Authorised Deposit-taking Institutions Supervisory Levy Imposition Act
1998; or
(b) in respect of a leviable body that is an authorised NOHC—levy
imposed by the Authorised Non-operating Holding Companies Supervisory Levy
Imposition Act 1998; or
(c) in respect of a leviable body that is a life insurance
company—levy imposed by the Life Insurance Supervisory Levy Imposition
Act 1998; or
(d) in respect of a leviable body that is a general insurance
company—levy imposed by the General Insurance Supervisory Levy
Imposition Act 1998; or
(e) in respect of a leviable body that is an RSA provider—levy
imposed by the Retirement Savings Account Providers Supervisory Levy
Imposition Act 1998; or
(f) in respect of a leviable body that is a superannuation
entity—levy imposed by the Superannuation Supervisory Levy Imposition
Act 1998.
levy imposition day, in relation to the imposition of a levy
in respect of a leviable body of a particular type for a financial year,
means:
(a) if the leviable body is that type of leviable body on 1 July of the
financial year—that day; or
(b) if the leviable body becomes that type of leviable body on a day
during the financial year that is after 1 July of the financial year—the
day, during the financial year, on which the leviable body becomes that type of
leviable body.
levy paying entity means:
(a) a leviable body, other than a superannuation entity; or
(b) the trustee of a superannuation entity.
life insurance company means a company that is registered
under the Life Insurance Act 1995.
RSA provider has the same meaning as in the Retirement
Savings Accounts Act 1997.
superannuation entity means an entity that:
(a) is a superannuation entity within the meaning of the Superannuation
Industry (Supervision) Act 1993; and
(b) is not an excluded superannuation fund within the meaning of that
Act.
trustee, in relation to a superannuation entity, means the
person who is the trustee of the entity for the purposes of the
Superannuation Industry (Supervision) Act 1993.
ADIs
(1) A body corporate that is an ADI at any time during a financial year
that ends after the commencement of the Authorised Deposit-taking
Institutions Supervisory Levy Imposition Act 1998 is liable to pay a levy in
respect of that financial year.
Authorised NOHCs
(2) A body corporate that is an authorised NOHC at any time during a
financial year that ends on or after the commencement of the Authorised
Non-operating Holding Companies Supervisory Levy Imposition Act 1998 is
liable to pay a levy in respect of that financial year.
General insurance bodies corporate
(3) A body corporate that is a general insurance company at any time
during a financial year that ends after the commencement of the General
Insurance Supervisory Levy Imposition Act 1998 is liable to pay a levy in
respect of that financial year.
Life Insurance companies
(4) A body corporate that is a life insurance company at any time during a
financial year that ends after the commencement of the Life Insurance
Supervisory Levy Imposition Act 1998 is liable to pay a levy imposed in
respect of that financial year.
RSA providers
(5) A body corporate that is an RSA provider at any time during a
financial year that ends after the commencement of the Retirement Savings
Account Providers Supervisory Levy Imposition Act 1998 is liable to pay a
levy imposed in respect of that financial year.
Superannuation entities
(6) A trustee of a superannuation entity that is a superannuation entity
at any time during a financial year that ends after the commencement of the
Superannuation Supervisory Levy Imposition Act 1998 is liable to pay a
levy in respect of that financial year.
(1) Levy payable by a leviable body (other than a superannuation entity)
for a financial year under section 8 is due and payable on:
(a) if the levy imposition day relating to the levy payable by the
leviable body is 1 July of that financial year—that day, or if that day is
not a business day, the first business day following that 1 July; or
(b) if the levy imposition day relating to the levy payable by the
leviable body is a day of that financial year after 1 July—by:
(i) the day that is 6 weeks after the day on which the leviable body
becomes that type of leviable body; or
(ii) if the day applicable under subparagraph (i) is not a business day,
the first business day following that day.
(2) Levy payable under subsection 8(6) for a financial year by a trustee
of a superannuation entity is due and payable:
(a) if the superannuation entity is a superannuation entity on 1 July of
that financial year—6 weeks after the lodgment of a return under section
36 of the Superannuation Industry (Supervision) Act 1993 that relates to
the previous financial year; or
(b) if the superannuation entity becomes a superannuation entity after 1
July of that financial year—by:
(i) the day that is 6 weeks after the day on which the superannuation
entity becomes a superannuation entity; or
(ii) if the day applicable under subparagraph (i) is not a business day,
the first business day following that day.
If any levy payable by a levy paying entity is unpaid after the time when
it becomes due and payable, the levy paying entity is liable to pay, by way of
penalty, an amount worked out at the rate of 20% per year on the amount unpaid,
computed from that time.
(1) Levy and late payment penalty are payable to APRA on behalf of the
Commonwealth.
(2) APRA must pay into the Consolidated Revenue Fund any amounts of levy
or late payment penalty received by it.
APRA, on behalf of the Commonwealth, may, if APRA considers it is
appropriate to do so, waive the payment of the whole or a part of an amount of
levy or late payment penalty that is payable by a levy paying entity.
Note: For example, if levy is payable by a body corporate
which has ceased to be authorised under the Insurance Act 1973 to carry
on an insurance business and has ceased to be a life company, APRA may waive the
payment of the levy if APRA considers it appropriate to do so because payment of
the levy would prevent payment in full of claims under contracts of insurance
made with the body corporate.
The following amounts may be recovered by the Commonwealth as debts due
to the Commonwealth:
(a) levy that is due and payable;
(b) late payment penalty that is due and payable.
(1) Nothing in a law passed before the commencement of this section
exempts a levy paying entity from liability to pay levy.
(2) If a law (including a provision of a law) passed after the
commencement of this section purports to exempt a levy paying entity
from:
(a) liability to pay taxes under laws of the Commonwealth; or
(b) liability to pay certain taxes under laws of the Commonwealth that
would otherwise include levy;
the law does not operate to exempt the levy paying entity from liability to
pay levy unless the exemption expressly refers to levy under this Act.
If an Act mentioned in section 8 that imposes levy in respect of a
particular type of leviable body commences during a financial year (but not on 1
July of that financial year), this Act has effect in relation to that financial
year and that type of leviable body subject to the modifications specified in
the regulations.
In this Part, unless the contrary intention appears:
Account means the Superannuation Protection Account
established by section 234 of the Superannuation Industry (Supervision) Act
1993.
approved deposit fund has the same meaning as in the
Superannuation Industry (Supervision) Act 1993.
fund means a superannuation fund or an approved deposit
fund.
late payment penalty means penalty payable under section
20.
levy means levy imposed by regulations under the
Superannuation (Financial Assistance Funding) Levy Act 1993.
levy month means one of the 12 months of the calendar
year.
superannuation fund has the same meaning as in the
Superannuation Industry (Supervision) Act 1993.
trustee, in relation to a fund, has the same meaning as in
the Superannuation Industry (Supervision) Act 1993.
unpaid
levy means the amount of levy unpaid by the trustee of a fund as at the
beginning of a levy month.
(1) This section applies if:
(a) accounts of a fund were prepared for a financial year; and
(b) an amount is shown on those accounts as the value of an asset of the
fund as at the end of that financial year.
(2) For the purposes of this Part, the accounts are prima facie evidence
of the value of the asset at the end of that financial year.
(3) The Minister may certify that a document is a copy of the
accounts.
(4) This section applies to the certified copy as if it were the
original.
The trustee of a fund is liable to pay a levy imposed on the
fund.
(1) A levy payable by the trustee of a fund is due and payable on such
date as is specified in the regulations imposing the levy.
(2) The date to be so specified must not be earlier than the 28th day
after the day on which the regulation imposing the levy took effect.
(1) If any levy payable by the trustee of a fund remains unpaid as
at:
(a) the beginning of the first levy month after the time when it became
due for payment; or
(b) the beginning of a later levy month;
the trustee is liable to pay to the Commonwealth, in respect of that levy
month, by way of penalty, the amount worked out using the formula:
(2) Late payment penalty for a levy month is due and payable at the end of
the levy month.
Levy and late payment penalty are payable to the Minister.
The Minister may waive the whole or a part of an amount of late payment
penalty.
The following amounts may be recovered by the Commonwealth as debts due
to the Commonwealth:
(a) levy that is due and payable;
(b) late payment penalty that is due and payable.
(1) If a levy is imposed as a result of a determination by the Minister to
make a grant of financial assistance out of the Consolidated Revenue
Fund:
(a) any amounts of that levy, and of late payment penalty in respect of
that levy, that are received by the Minister; and
(b) any repayments of that financial assistance;
must be paid into the Consolidated Revenue Fund.
(2) If a levy is imposed as a result of a determination by the Minister to
make a grant of financial assistance out of the Account:
(a) any amounts of that levy, and of late payment penalty in respect of
that levy, that are received by the Minister; and
(b) any repayments of that financial assistance;
must be paid into the Consolidated Revenue Fund.
(3) There must be paid into the Account amounts equal to amounts paid into
the Consolidated Revenue Fund under subsection (2).
(4) The Consolidated Revenue Fund is appropriated for the purposes of
subsection (3).
(1) Nothing in a law passed before the
commencement of this section exempts a trustee of a fund from liability to pay
levy.
(2) If a law (including a provision of a law) passed after the
commencement of this section purports to exempt a trustee of a fund
from:
(a) liability to pay taxes under laws of the Commonwealth; or
(b) liability to pay certain taxes under laws of the Commonwealth that
would otherwise include levy;
the law does not operate to exempt the trustee from liability to pay levy
unless the exemption expressly refers to levy under this Act.
The Minister may, by signed writing, delegate to APRA all or any of his
or her powers under this Part.
(1) A levy paying entity that is affected by a reviewable decision of the
decision maker may, if dissatisfied with the decision, request the decision
maker to reconsider the decision.
(2) The request must:
(a) be made by notice given to the decision maker within:
(i) the period of 21 days after the day on which the levy paying entity
first receives notice of the decision; or
(ii) the further period that the decision maker allows; and
(b) set out the reasons for making the request.
(3) When the decision maker receives the request the decision maker must
reconsider the decision.
(4) The decision maker may confirm or revoke the decision or vary the
decision in the manner that the decision maker thinks fit. However, if the
decision maker does not confirm, revoke or vary the decision within the period
of 21 days after the day on which the decision maker received the request, the
decision maker is taken to have confirmed the decision immediately after the end
of that period.
(5) If the decision maker confirms, revokes or varies the decision during
the period of 21 days after the day on which the decision maker received the
request, the decision maker is to give a notice in writing to the levy paying
entity that made the request. The notice must set out the result of the
reconsideration of the decision and the reasons for confirming, varying or
revoking the decision, as the case may be.
(6) Applications may be made to the Administrative Appeals Tribunal for
review of:
(a) decisions of the decision maker that have been confirmed or varied
under subsection (4); and
(b) decisions of the decision maker to revoke reviewable
decisions.
(7) If a decision is taken to be confirmed under subsection (4), section
29 of the Administrative Appeals Tribunal Act 1975 applies as if the
prescribed time for making application for review of the decision were the
period commencing on the day on which the decision is taken to be confirmed and
ending on the 28th day after that day.
(8) If a request is made under subsection (1) in respect of a reviewable
decision, section 41 of the Administrative Appeals Tribunal Act 1975
applies as if the making of the request were the making of an application to the
Administrative Appeals Tribunal for a review of that decision.
(9) The hearing of a proceeding relating to a reviewable decision is to
take place in private and the Administrative Appeals Tribunal may, by
order:
(a) give directions as to the persons who may be present; and
(b) give directions of a kind referred to in paragraph 35(2)(b) or (c) of
the Administrative Appeals Tribunal Act 1975.
(10) In this section:
decision maker, in relation to a reviewable decision,
means:
(a) if the reviewable decision is a decision of APRA under section
12—APRA; or
(b) if the reviewable decision is a decision of the Minister under section
22—the Minister.
levy paying entity means:
(a) an entity that is a levy paying entity as defined in section 7;
or
(b) a trustee of a fund as defined in section 16.
reviewable decision means:
(a) a decision of APRA under section 12; or
(b) a decision of the Minister under section 22.
(1) If notice in writing is given to a levy paying entity affected by a
reviewable decision that the reviewable decision has been made, that notice must
include words to the effect that:
(a) the levy paying entity may seek a reconsideration of the reviewable
decision by the decision maker in accordance with subsection 27(1) if the levy
paying entity is dissatisfied with the decision; and
(b) the levy paying entity may, subject to the Administrative Appeals
Tribunal Act 1975, apply to the Administrative Appeals Tribunal for review
of a reviewable decision that is confirmed or varied under subsection 27(4), or
for review of a decision to revoke a reviewable decision.
(2) If:
(a) the decision maker confirms or varies a reviewable decision under
subsection 27(4), or makes a decision to revoke a reviewable decision under that
subsection; and
(b) gives the levy paying entity affected by the decision notice in
writing of the confirmation or variation of the decision, or of the revocation
of the decision;
that notice must include words to the effect that the levy paying entity
may, subject to the Administrative Appeals Tribunal Act 1975, apply to
the Administrative Appeals Tribunal for review of the reviewable decision as
confirmed or varied, or for review of the decision to revoke the reviewable
decision.
(3) A failure to comply with the requirements of subsections (1) and (2)
in relation to a reviewable decision or a decision under subsection 27(4) does
not affect the validity of that decision.
(4) In this section:
decision maker, in relation to a reviewable decision, has the
same meaning as in section 27.
levy paying entity has the same meaning as in section
27.
reviewable decision has the same meaning as in section
27.
(1) The Governor-General may make regulations, not inconsistent with this
Act, prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving
effect to this Act.
(2) Without limiting subsection (1), the regulations may, in
particular:
(a) provide for the manner of payment for levy, late payment penalty and
other amounts payable under this Act; and
(b) provide for the refund (or other application) of
overpayments.