1Short title
This Act may be cited as the Life Insurance Supervisory Levy Imposition Act 1998.
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Bill homepage (APH)This Act may be cited as the Life Insurance Supervisory Levy Imposition Act 1998.
This Act commences on the commencement of the Australian Prudential Regulation Authority Act 1998.
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:
if the life insurance company is a life insurance company on 1 July of the financial year—that day; or
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 section 21 of the Life Insurance Act 1995.
statutory upper limit means:
for the financial year commencing on 1 July 2020—$10,000,000; or
for 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.
Subject to subsection (2), the amount of levy payable by a life 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).
The restricted levy component for the financial year is:
unless paragraph (b) or (c) applies—the amount that, for the financial year, is the restricted levy percentage of the life insurance company’s levy base; or
if the amount worked out under paragraph (a) exceeds the maximum restricted levy amount for the financial year—the maximum restricted levy amount; or
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 life insurance company’s levy base are as determined under subsection (3).
The unrestricted levy component for the financial year is the amount that, for the financial year, is the unrestricted levy percentage of the life insurance company’s levy base.
Note: The unrestricted levy percentage is as determined under subsection (3).
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:
The Treasurer is, by legislative instrument, to determine:
the maximum restricted levy amount for each financial year; and
the minimum restricted levy amount for each financial year; and
the restricted levy percentage for each financial year; and
the unrestricted levy percentage for each financial year; and
how a life insurance company’s levy base is to be worked out.
An amount determined under subsection (3) as the maximum restricted levy amount for a financial year must not exceed the statutory upper limit for the financial year.
The Treasurer’s determination under paragraph (3)(d) of how a life insurance company’s levy base 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 levy base is to be worked out. That day must be:
if the life insurance company was a life 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
if the life insurance company was not a life 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 life insurance company became, or becomes, a life insurance company.
A determination under subsection (3) may make different provision for different classes of life insurance companies.
The indexation factor for a financial year is the number worked out by:
ascertaining the index number for the most recent quarter for which the Australian Statistician has published an index number, as at the start of the day on which the Treasurer makes the first determination under subsection 7(3) of an amount or percentage for the financial year; and
dividing that index number by the index number for the quarter 12 months before the quarter mentioned in paragraph (a); and
adding 0.030 to the number worked out under paragraph (b).
The indexation factor is to be calculated to 3 decimal places, but increased by .001 if the 4th decimal place is more than 4.
Calculations under subsection (1):
are to be made using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and
are to be made disregarding index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).
The Governor‑General may make regulations for the purposes of subsection 2(2).