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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
Life Insurance
Supervisory Levy Imposition Bill 1998
No.
, 1998
(Treasury)
A
Bill for an Act to impose a levy on companies registered under the Life
Insurance Act 1995
9803620—787/24.3.1998—(36/98)
Cat. No. 97 2821 X ISBN 0644 518715
Contents
A Bill for an Act to impose a levy on companies
registered under the Life Insurance Act 1995
The Parliament of Australia enacts:
This Act may be cited as the Life Insurance Supervisory Levy
Imposition Act 1998.
(1) This Act commences on the commencement of the Australian Prudential
Regulation Authority Act 1998.
(2) If this Act commences during a financial year (but not on 1 July of
that financial year), this Act has effect in relation to that financial year
subject to the modifications specified in the regulations.
This Act binds the Crown in each of its capacities.
This Act extends to each external Territory.
In this Act, unless the contrary intention appears:
indexation factor means the indexation factor calculated
under section 8.
index number, in relation to a quarter, means the All Groups
Consumer Price Index number, being the weighted average of the 8 capital cities,
published by the Australian Statistician in respect of that quarter.
levy imposition day, in relation to a life insurance company
for a financial year, means:
(a) if the life insurance company is a life insurance company on 1 July of
the financial year—that day; or
(b) in any other case—the day, during the financial year, on which
the life insurance company becomes a life insurance company.
life insurance company means a company that is registered
under the Life Insurance Act 1995.
statutory upper limit means:
(a) in relation to the first financial year that ends after this Act
commences—$500,000; or
(b) in relation to a later financial year—the amount calculated by
multiplying the statutory upper limit for the previous financial year by the
indexation factor for the later financial year.
Levy payable in accordance with subsection 8(4) of the Financial
Institutions Supervisory Levies Collection Act 1998 is imposed.
(1) Subject to subsection (2), the amount of levy payable by a life
insurance company for a financial year is:
(a) unless paragraph (b) or (c) applies—the amount that, for the
financial year, is the levy percentage of the life insurance company’s
asset value; or
(b) if the amount worked out under paragraph (a) exceeds the maximum levy
amount for the financial year—the maximum levy amount; or
(c) if the amount worked out under paragraph (a) is less than the minimum
levy amount for the financial year—the minimum levy amount.
Note: The levy percentage, maximum levy amount, minimum levy
amount and the method of working out the life insurance company’s asset
value, are as determined under subsection (3).
(2) If the levy imposition day for the life insurance company for the
financial year is later than 1 July in the financial year, the amount of levy
payable by the life insurance company for the financial year is the amount
worked out using the following formula:
(3) The Treasurer is, in writing, to determine:
(a) the maximum levy amount for each financial year;
and
(b) the minimum levy amount for each financial year;
and
(c) the levy percentage for each financial year;
and
(d) how a life insurance company’s asset value is to
be worked out.
(4) An amount determined under subsection (3) as the maximum levy amount
must not exceed the statutory upper limit as at the time when the determination
is made.
(5) The Treasurer’s determination under paragraph (3)(d) of how a
life insurance company’s asset value is to be worked out is to include,
but is not limited to, a determination of the day as at which the life insurance
company’s asset value is to be worked out. That day must be:
(a) if the life insurance company was a life insurance company on 1 July
of the financial year—a day between 17 March and 14 April of the previous
financial year; or
(b) if the life insurance company was not a life insurance company on 1
July of the financial year—the day after 31 March of the previous
financial year on which the life insurance company became or becomes a life
insurance company.
(6) A determination under subsection (3) may make different provision for
different classes of life insurance companies.
(7) A determination under subsection (3) is a disallowable instrument for
the purposes of section 46A of the Acts Interpretation Act
1901.
(1) The indexation factor for a financial year is the number worked out by
dividing the index number for the March quarter immediately preceding that
financial year by the index number for the March quarter immediately preceding
that first-mentioned March quarter.
(2) The indexation factor is to be calculated to 3 decimal places, but
increased by .001 if the 4th decimal place is more than 4.
(3) Calculations under subsection (1):
(a) are to be made using only the index numbers published in terms of the
most recently published reference base for the Consumer Price Index;
and
(b) are to be made disregarding index numbers that are published in
substitution for previously published index numbers (where the substituted
numbers are published to take account of changes in the reference
base).
The Governor-General may make regulations for the purposes of subsection
2(2).