Financial Claims Scheme (ADIs) Levy Act 2008

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

the start of the day on which this Act receives the Royal Assent; and

the commencement of Schedule 1 to the Financial System Legislation Amendment (Financial Claims Scheme and Other Measures) Act 2008.

This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

entitlements under that Subdivision relating to the ADI; and

the costs of the following:

the administration of that Division in relation to the ADI;

the exercise of APRA's powers under that Division in relation to the ADI;

the performance of APRA's functions under that Division in relation to the ADI; and

the costs of any borrowing under section 54E of the Australian Prudential Regulation Authority Act 1998 connected with the application of that Subdivision in relation to the ADI.

In connection with the application of Subdivision C of Division 2AA of Part II of the Banking Act 1959 in relation to an ADI, the regulations may impose levy on the liabilities that:

are liabilities of ADIs in a class prescribed by the regulations to their depositors; and

exist at the end of a financial year or other 12‑month accounting period used instead of a financial year.

The regulations must prescribe the class for the purposes of paragraph (1)(a) so as to exclude all ADIs in relation to which that Subdivision applies.

The amount of levy is the amount worked out in accordance with the regulations.

However, the amount of levy on an ADI's liabilities to its depositors cannot be more than 0.5% of the amount, worked out in accordance with the regulations, of those liabilities.

The regulations may prescribe:

different ways of working out for the purposes of subsection (1) the amount of levy on liabilities of ADIs in different classes prescribed by the regulations; and

different ways of working out for the purposes of subsection (2) the amounts of liabilities of ADIs in different classes prescribed by the regulations.

The Governor‑General may make regulations prescribing matters required or permitted by this Act to be prescribed.

Before the Governor‑General makes a regulation affecting the imposition or amount of a levy connected with the application of Subdivision C of Division 2AA of Part II of the Banking Act 1959 in relation to an ADI, the Minister must be satisfied the regulation will help achieve the objective in subsection (3) of this section.

The objective is that the total amount of levy connected with the application of that Subdivision in relation to the ADI equal the excess of APRA's financial claims scheme costs for the ADI over the sum of amounts paid to APRA by the ADI in connection with that Division or in the winding up of the ADI.