House of Representatives
Financial Sector Legislation Amendment Bill (No. 1) 2002
Explanatory Memorandum
(Circulated by authority of the Treasurer,the Hon Peter Costello, MP)2 - Outline and financial impact statement
Outline
2.1 This Bill continues the legislative amendments required to facilitate the Governments response to the recommendations of the Financial System Inquiry.
2.2 The Financial Sector Legislation Amendment Bill (No.1) 2002 (FSLAB) continues the reform process of enhancing the operation of existing financial sector legislation. Specifically, this Bill contains key measures designed to:
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- ensure that outstanding levies are recognised on an accrual basis and clarify that the Treasurers determination is specific to each levy in the Australian Prudential Regulation Authority Act 1998;
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- amend the Financial Institutions Supervisory Levies Collection Act 1998 to address concerns raised by the Australian National Audit Office (ANAO), and to ease the administration of the Australian Prudential Regulation Authoritys (APRA) collection of financial institutions supervisory levies;
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- amend the Financial Sector (Transfers of Business) Act 1999 so that APRA must consult with the Commissioner of Taxation on the taxation implications of a proposed transfer before approving transfers between regulated bodies;
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- amend the Insurance Act 1973 to complement proposed changes in the Banking Act 1959 to be included in the proposed Financial Sector Legislation Amendment Bill (No.2) 2002 ;
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- remove the 30 day time limit for the Minister to make a decision in the Insurance Acquisition and Takeovers Act 1991 to allow APRA to undertake necessary investigations prior to allowing a merger or acquisition to proceed;
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- remove sunset clauses in the Life Insurance Act 1995 on appeals to the Administrative Appeals Tribunal (AAT);
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- to simplify the procedures for Reserve Bank Board and Payments System Board (PSB) appointments, terminations and resignations, and repeal unnecessary service provisions in the Reserve Bank Act 1959 ;
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- clarify the application of section 121A of the Superannuation Industry (Supervision) Act 1993 to superannuation funds being wound up and to align the secrecy provisions applying to the Australian Tax Office with equivalent provisions applying to APRA; and
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- remove uncertainty in the Superannuation Supervision Levy Imposition Act 1998 about the levy payable by a superannuation entity that becomes a superannuation entity during a fiscal year, but was unregulated the previous year.
Financial Impact Statement
2.3 It is not envisaged that the Bill will have a significant financial impact on the operations of Government.