Commonwealth Consolidated Acts

GENERAL INSURANCE SUPERVISORY LEVY IMPOSITION ACT 1998 - SECT 8

       (1AA)  The amount of levy payable by a general insurance company for a financial year is the sum of the general component and the special component for the general insurance company for the financial year.

Note:          For general component , see subsections (1) to (2). For special component , see subsection (2A).

             (1)  Subject to subsection (2), the general component for a general insurance company for a financial year is the sum of the restricted levy component and the unrestricted levy component for the financial year.

Note:          For restricted levy component , see subsection (1A). For unrestricted levy component , see subsection (1B).

          (1A)  The restricted levy component for the financial year is:

                     (a)  unless paragraph (b) or (c) applies—the amount that, for the financial year, is the restricted levy percentage of the general insurance company’s asset value; or

                     (b)  if the amount worked out under paragraph (a) exceeds the maximum restricted levy amount for the financial year—the maximum restricted levy amount; or

                     (c)  if the amount worked out under paragraph (a) is less than the minimum restricted levy amount for the financial year—the minimum restricted levy amount.

Note:          The restricted levy percentage, maximum restricted levy amount, minimum restricted levy amount and the method of working out the general insurance company’s asset value are as determined under subsection (3).

          (1B)  The unrestricted levy component for the financial year is the amount that, for the financial year, is the unrestricted levy percentage of the general insurance company’s asset value.

Note:          The unrestricted levy percentage is as determined under subsection (3).

             (2)  If the levy imposition day for the general insurance company for the financial year is later than 1 July in the financial year, the general component for the general insurance company for the financial year is the amount worked out using the following formula:

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          (2A)  The special component for a general insurance company for a financial year is:

                     (a)  nil, if the general insurance company belongs to a class of general insurance company for which no provision is made in the Treasurer’s determination under paragraph (3)(h); or

                     (b)  if the general insurance company belongs to a class of general insurance company for which provision is made in the Treasurer’s determination under paragraph (3)(h):

                              (i)  unless subparagraph (ii) or (iii) applies—the amount that, for the financial year, is the special levy percentage of the general insurance company’s eligible premium income; or

                             (ii)  if the amount worked out under subparagraph (i) exceeds the special maximum levy amount for the financial year—the special maximum levy amount; or

                            (iii)  if the amount worked out under subparagraph (i) is less than the special minimum levy amount for the financial year—the special minimum levy amount.

Note:          The special levy percentage, the special maximum levy amount and the special minimum levy amount are as determined under subsection (3).

             (3)  The Treasurer is, by legislative instrument, to determine:

                     (a)  the maximum restricted levy amount for each financial year; and

                     (b)  the minimum restricted levy amount for each financial year; and

                     (c)  the restricted levy percentage for each financial year; and

                    (ca)  the unrestricted levy percentage for each financial year; and

                     (d)  how a general insurance company’s asset value is to be worked out; and

                     (e )  the special maximum levy amount for each financial year; and

                      (f)  the special minimum levy amount for each financial year; and

                     (g)  the special levy percentage for each financial year; and

                     (h)  how a general insurance company’s eligible premium income is to be worked out.

             (4)  An amount determined under subsection (3) as the maximum restricted levy amount must not exceed the statutory upper limit as at the time when the determination is made.

          (4A)  An amount determined under subsection (3) as the special maximum levy amount must not exceed the special statutory upper limit as at the time when the determination is made.

             (5)  The Treasurer’s determination under paragraph (3)(d) of how a general 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 general insurance company’s asset value is to be worked out. That day must be:

                     (a)  if the general insurance company was a general insurance company at all times from and including 17 March of the previous financial year to and including the following 30 June—a day in the period from and including that 17 March to and including the following 14 April; or

                     (b)  if the general insurance company was not a general insurance company at all times from and including 17 March of the previous financial year to and including the following 30 June—the day after that 17 March when the general insurance company became, or becomes, a general insurance company.

             (6)  The Treasurer’s determination under paragraph (3)(h) of how a general insurance company’s eligible premium income is to be worked out is to include, but is not limited to, a determination of:

                     (a)  that part of the premium income of a company that is eligible premium income; and

                     (b)  the period for which the eligible premium income is to be worked out.

             (7)  A determination under subsection (3) may make different provision for different classes of general insurance company.