The $55 million grant to the victims of the Trio collapse will be recouped from APRA regulated superannuation funds following new regulations announced by Assistant Treasurer Bill Shorten.
The Assistant Treasurer said on 13 April 2011 that a grant of approximately $55 million in financial assistance would be provided to benefit the members of four superannuation funds that were formerly under the trusteeship of Trio.
The regulations impose a levy on APRA regulated superannuation funds and approved deposit funds to recoup that grant. The levy will not apply to self managed superannuation funds or levy-exempt funds.
The regulations set a maximum and minimum levy amount and an applicable rate for the levy.
Following consultation with industry stakeholders, the Assistant Treasurer announced the Government will increase the maximum levy amount from $500,000 to $750,000.
"This will result in funds with less than $5.57 billion in assets paying a smaller proportion of the levy, as the applicable rate will fall from 0.01977 per cent to 0.01347 per cent. Funds with more than $5.57 billion in assets will pay the maximum levy of $750,000 while funds with assets below $371,195 will pay the minimum levy of $50," Mr Shorten said.
The impact of the levy on a member of an average sized fund with an account of $33,000 is expected to be under $4.50.
Both the Association of Superannuation Funds of Australia and the Australian Institute of Superannuation Trustees have expressed support for increasing the maximum levy amount, as this will ensure fairer distribution of the levy across funds of different sizes.
Another issue raised during consultation was whether funds could have longer than 28 days to pay. The Australian Prudential Regulation Authority (APRA) has indicated that it will allow a 60 day payment term following the issue of the invoice.
APRA will notify all trustees shortly providing further information regarding the levy.
In cases of hardship where a fund would be unable to meet the payment in time, it can apply to APRA for consideration of waiving, either fully or partially, any late payment penalties that have been incurred. APRA has advised that it will assess the applications on a case by case basis.
"I would like to thank all stakeholders who have contributed to the development of the levy regulations," Mr Shorten said.
The changes are contained in Superannuation (Financial Assistance Funding) Levy and Collection Amendment Regulations 2011 (No. 1).