Superannuation 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.

if the superannuation entity is a superannuation entity on 1 July of the financial year—that day; or

in any other case—the day, during the financial year, on which the superannuation entity becomes a superannuation entity.

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.

is a superannuation entity within the meaning of the Superannuation Industry (Supervision) Act 1993; and

is not a self managed superannuation fund within the meaning of that Act.

a fund, trust or scheme that, at that time, is not a superannuation entity within the meaning of the Superannuation Industry (Supervision) Act 1993; or

a fund or scheme that, at that time, is a self managed superannuation fund within the meaning of that Act.

Subject to subsection (2), the amount of levy payable by a trustee of a superannuation entity for a financial year is the sum of the restricted levy component and the unrestricted levy component for the financial year.

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:

except where the superannuation entity was an unregulated entity on 30 June of the previous financial year—the superannuation entity’s levy base on that day; or

if the superannuation entity was an unregulated entity, or was not in existence, on 30 June of the previous financial year—the entity’s levy base on the day when the entity became a superannuation entity; 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.

The restricted levy percentage, maximum restricted levy amount, minimum restricted levy amount and the method of working out the superannuation entity’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:

if the superannuation entity was an unregulated entity, or was not in existence, on 30 June of the previous financial year—the entity’s levy base on the day when the entity became a superannuation entity; or

otherwise—the superannuation entity’s levy base on 30 June of the previous financial year.

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

If the levy imposition day for the trustee of a superannuation entity for the financial year is later than 1 July in the financial year, the amount of levy payable by the trustee 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 superannuation entity’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.

A determination under subsection (3) may make different provision for different classes of superannuation entity.

Without limiting subsection (3), the Treasurer may make more than one determination, for a financial year, about any or all of the matters referred to in that subsection.

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).