LIFE INSURANCE SUPERVISORY LEVY REGULATIONS (AMENDMENT) 1994 NO. 324

LIFE INSURANCE SUPERVISORY LEVY REGULATIONS (AMENDMENT) 1994 NO. 324

Statutory Rules 1994 No. 324

Issued by Authority of the Treasurer

Life Insurance Supervisory Levy Act 1989

Life Insurance Supervisory Levy Regulations (Amendment)

Section 11 of the Life Insurance Supervisory Levy Act 1982 (the Act) provides that the Governor-General may make regulations for the purposes of subsection 9(1) of the Act.

The Act provides for the imposition of an annual levy on registered life insurers to recover the ongoing costs of supervision under the Life Insurance Act 1945 by the Insurance and Superannuation Commissioner.

Subsection 9(1) of the Act sets out the method of calculation of the daily component of the levy and provides that the annual rate of levy shall be $25,000 or such other amount as is applicable under the regulations. Subsection 9(2) provides that the prescribed annual rate of levy is not to exceed a statutory upper limit.

The Insurance Laws Amendment Act (No. 2) 1994 amended the Act by setting the amount of the statutory upper limit for the financial year commencing on 1 July 1994 at $70,000.

The amending regulations increase the annual rate of levy from the previous level of $28,000 to $70,000 with effect from 1 October 1994. This increase in the rate of the levy is to allow for recovery from the industry of the increased costs of supervision that will arise from increased responsibilities under the Life Insurance Bill 1994, which was introduced into Parliament on 30 June 1994, and associated consumer protection measures.