Government Releases 2007-08 Financial Sector Levy Rates

The Minister for Revenue and Assistant Treasurer, the Hon Peter Dutton MP, today announced the financial sector levy rates for 2007-08. 

The levy rates are used to calculate annual levies for the financial services sector to fund the operational costs of the Australian Prudential Regulation Authority, and certain market integrity and consumer protection functions undertaken by the Australian Securities and Investments Commission, including the Superannuation Complaints Tribunal and the Australian Taxation Office. 

Next year APRA is planning to collect $100.9 million to fund its own levy-related activities and those of ASIC and the ATO. This compares to $111.5 million collected in this financial year. 

“This reduction in levies will benefit each of the APRA-regulated sectors.  In 2007-08, the levy amounts and rates will decrease in relation to 2006-07 for all sectors,” Mr Dutton said.

During the 2005-06 and 2006-07 financial years, in recognition of the significant structural changes experienced by the superannuation sector, the Government decided to grant a transitional levy arrangement to superannuation entities.  For the 2007-08 financial year the Government is implementing the full levies framework which will particularly benefit funds with assets lower than $1 billion.  

“The full application of the levies framework ensures the burden of funding regulation is shared in a fair and efficient way,” Mr Dutton said. 

“The lower levies will be complemented by a drawn-down on reserves from previous periods.  This will allow the APRA to respond effectively to the increase in both workload volumes and complexity of the financial market,” Mr Dutton said.

An overview of the 2006-07 levy rates for ADIs, general insurance, life insurance and superannuation is provided at Attachment A.

Attachment A