The Minister for Revenue and Assistant Treasurer, Senator the Hon Helen Coonan, today announced the financial sector levies for 2003-04.
The financial sector levies are imposed on the financial services sector to support the operations of the Australian Prudential Regulation Authority (APRA), and certain activities undertaken by the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO).
The levy rates and maximum and minimum amounts applicable to institutions in the relevant industry sectors for 2003-04 are set out in the table below.
| Industry sector |
Levy rate (%)
|
Maximum amount
($'000) |
Minimum amount
($) |
|||
|
2002-03
|
2003-04
|
2002-03
|
2003-04
|
2002-03
|
2003-04
|
|
|
Conventional ADIs |
0.010 |
0.011 |
1,121.28 |
1,159 |
500 |
500 |
|
Foreign bank branches |
0.005 |
0.0055 |
562.5 |
579.5 |
500 |
500 |
|
Specialist credit card institutions |
na |
0.0055 |
na |
579.5 |
na |
500 |
|
Superannuation |
0.030 |
0.035 |
66 |
85 |
400 |
600 |
|
Life insurance/ Friendly societies |
0.020 |
0.020 |
364 |
414 |
500 |
500 |
|
General insurance |
0.030 |
0.030 |
330 |
414 |
5,000 |
5,000 |
|
Retirement savings accounts |
0.020 |
0.020 |
18.5 |
18.5 |
5,000 |
5,000 |
|
Non-operating holding companies |
Flat rate charge of $10,000 |
|||||
Total levy revenue required has increased from around $75 million in 2002-03 to $84.8 million in 2003-04.
The bulk of the increase reflects APRA's plan to employ additional technical experts and attract and retain appropriately skilled front-line supervisory staff to enhance its supervisory and information technology capabilities and an increase in base funding for the Superannuation Complaints Tribunal to meet increasing demands on its services.
The revenue collected from each sector of the industry through the 2003-04 levies is expected to cover the cost of supervising that sector.
Industry has been consulted on the levies for 2003-04. In addition, it has been consulted extensively as part of the broader Review of Financial Sector Levies that has been evaluating the arrangements for the determination of levies from 2004-05 and which will report shortly.
For authorised deposit-taking institutions (ADIs), other than foreign bank branches and specialist credit card institutions, the maximum amount payable increases to $1,159,000 and the rate payable on assets increases to 0.011 per cent.
Within the ADI sector, foreign bank branches and specialist credit card institutions (a new form of ADI from 2003-04) will be levied at a rate of 0.0055 per cent up to a maximum levy amount of $579,500. This levy rate reflects that their supervision in Australia is less intensive than for other ADIs. In the case of foreign bank branches, it also reflects their ineligibility to accept retail deposits and the additional supervision provided by their home country supervisor.
For the superannuation sector, the maximum and minimum levy amounts and the levy rate all increase. The minimum levy amount increases to $600, the maximum levy amount to $85,000 and the rate of levy on the value of assets to 0.035 per cent. These increases reflect the higher intensity of supervision anticipated over the coming period in conjunction with continuing significant restructuring in the superannuation sector.
For life insurers and friendly societies, there is no change in the levy rate of 0.020 per cent or the minimum levy amount of $500, but the maximum levy amount increases to $414,000 from $364,000.
General insurers also pay a new maximum levy amount of $414,000, while the levy rate and minimum levy amount remain unchanged at 0.030 per cent and $5,000 respectively.
Retirement savings account providers and non-operating holding companies have had no change to their levy obligations.