House of Representatives

Financial Sector Reform (Amendments and Transitional Provisions) Bill 1998

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Honourable Peter Costello MP)

22 Schedule 18: Amendment and repeal of other Acts

Schedule 18 provides for miscellaneous amendments and repeals of Acts consequent upon legislation proposed in the schedules to this Bill and other Bills included in the financial system reform package.

Commencement

22.1 Except for items 41 and 42, Schedule 17 commences on the commencement of the proposed Australian Prudential Authority Act 1998. If the proposed Public Service Act 1998 commences before the proposed Australian Prudential Regulation Authority Act, items 41 and 42 of Schedule 18 come into effect at the time of the commencement of the proposed Australian Prudential Regulation Authority Act. If the proposed Public Service Act commences after or at the same time as the proposed Australian Prudential Regulation Authority Act, items 41 and 42 come into effect immediately after the commencement of the proposed Public Service Act.

Part 1 - Amendment and repeal of levy acts

Items 1 to 39

22.2 The existing Life Insurance Supervisory Levy Act 1989, General Insurance Supervisory Levy Act 1989, Insurance Supervisory Levies Collection Act 1989 and Retirement Savings Accounts Supervisory Levy Act 1997 will all be repealed (items 1 4). These Acts are to be replaced by the proposed levy imposition and collection Bills.

22.3 References in the Superannuation Supervisory Levy Act 1991 and the Superannuation Entities (Taxation) Act 1987 to "the Commissioner" are to be substituted with "APRA". References in these Acts to "RSA providers" are to be deleted as these entities are to be levied under the new imposition Act (items 7 14, 19 33).

22.4 The Superannuation Supervisory Levy Act 1991 will be amended so that only excluded superannuation funds are liable for a levy under this Act (items 37 39). This will require a reference to excluded superannuation funds in Part IIIAA of the Superannuation Entities (Taxation) Act 1987 (items 16 - 18).

22.5 To reflect this change in those bodies subject to levies, the title of the imposition Act is to be amended to "Superannuation (Excluded Funds) Supervisory Levy Imposition Act 1991 (item 36). The title of the collection Act is also to be amended to "Superannuation (Excluded Funds) Taxation Act 1987 (items 5, 6 and 15).

22.6 Section 21 of the Superannuation Entities (Taxation) Act 1987 has been repealed as reasonable benefits limit calculations are now included in the Income Tax Assessment Act 1936 (item 34).

Part 2 - Amendment of other Acts

Item 40

22.7 Item 40 amends a reference in section 40A of the Acts Interpretation Act 1901 to the "Australian Securities Commission Act", so that the provision refers instead to the "Australian Securities and Investments Commission Act".

Items 41 and 42

22.8 These items are designed to incorporate relevant provisions of the proposed Public Service Act 1998 into the proposed Australian Prudential Regulation Authority Act 1998.

Items 43 and 44

22.9 Items 43 and 44 amend references in subsections 4(1) and 39(1) of the Corporations Act 1989 to the "Australian Securities Commission Act", so that the provisions refer instead to the "Australian Securities and Investments Commission Act".

Item 45

22.10 Item 45 amends a reference in paragraph 4AB(3)(b) of the Crimes Act to the "Australian Securities Commission Act", so that the provision refers instead to the "Australian Securities and Investments Commission Act".

Item 46

22.11 The Financial Corporations (Transfer of Assets and Liabilities) Act 1993, describes the Treasurer's power to approve the transfer of assets and liabilities following the granting of a banking authority. Item 46 will allow the Treasurer to delegate this power to APRA and APRA staff members.

Item 47

22.12 Item 47 amends a reference in paragraph 27(9)(b) of the Financial Transactions Reports Act 1988 to the "Australian Securities Commission Act", so that the provision refers instead to the "Australian Securities and Investments Commission Act".


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