The Minister for Revenue and Assistant Treasurer, Senator the Hon Helen Coonan, today announced the 2002-03 financial sector levies.
Total levy revenue required has increased from $67.1 million in 2001-02 to $74.2 million in 2002-03. The bulk of the increase reflects the increased cost of supervision, especially in the superannuation and general insurance sectors.
The need for an increase in levy revenue reflects the call by both industry and the public for greater supervision of the financial sector, especially in the sectors of superannuation and general insurance. The 2002-03 levies have been determined so that revenue collected from each sector of the industry will cover the cost of supervising that sector.
Industry were consulted extensively on the levies. Industry is also encouraged to become involved in the review of the levies scheduled for late 2002. The levy rates and the amounts applicable to the relevant industry sectors for 2002-03 are set out in the table below.
| Industry sector |
Year
|
Levy on value of assets
|
Minimum amount payable
|
Maximum amount payable
|
| Authorised deposit-taking institutions |
2002-03 2001-02 |
0.010% 0.012% |
no change $500 |
$1,125,000 $1,005,000 |
| Foreign bank branches |
2002-03 2001-02 |
0.005% 0.006% |
no change $500 |
$562,500 $500,000 |
| Superannuation funds |
2002-03 2001-02 |
0.030% 0.025% |
no change $400 |
$66,000 $53,000 |
| Life insurers and friendly societies |
2002-03 2001-02 |
no change 0.020% |
no change $500 |
no change $364,000 |
| General insurers |
2002-03 2001-02 |
0.030% 0.025% |
no change $5,000 |
$330,000 $240,000 |
| Retirement savings account providers |
2002-03 2001-02 |
no change 0.020% |
no change $5,000 |
no change $18,500 |
| Non-operating holding companies |
2002-03 2001-02 |
no change flat rate charge of $10,000 |
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The authorised deposit-taking institution sector has an increase in the maximum amount payable from $1,005,000 to $1,125,000, with a decrease in the rate payable on the value of assets falling from 0.012 per cent to 0.010 per cent.
Within the authorised deposit-taking institutions sector, foreign bank branches have received a reduced levy rate from 0.006 per cent to 0.005 per cent and an increased maximum from $500,000 to $562,500, which still reflects their less intensive supervision in Australia because of their ineligibility to accept retail deposits and the additional supervision provided by their home country supervisor.
The superannuation sector continues to undergo significant restructuring with an increased need for supervision reflected in the maximum amount payable increasing from $53,000 to $66,000, with no increase in the minimum amount payable of $400, and an increase in the rate of levy on the value of assets from 0.025 per cent to 0.030 per cent.
There is no change in the amount of levies payable by life insurers and friendly societies, with the maximum remaining at $364,000 and the minimum remaining at $500. The levy rate remains at 0.020 per cent.
General insurers pay a new maximum levy amount of $330,000 in 2002-03 up from $240,000 in 2001-02, and an increase in the rate from 0.025 per cent to 0.030 per cent. This increase results from APRA significantly increasing its supervisory work in the sector, including additional policy development work. APRA has been heavily involved in ongoing major general insurance policy reforms.
Retirement savings account providers and non-operating holding companies have had no change to their levy obligations.