Explanatory Memorandum
(Circulated by authority of the Treasurer,the Hon Peter Costello, MP)5 - Schedule 2 Amendment of the Financial Institutions Supervisory Levies Collection Act 1998
Item 1
5.1 This amendment provides for the supervisory levy to be payable on a date specified in a notice sent by APRA, on or after 1 July of that year, to the leviable body. The date specified cannot be earlier than 28 days after the day on which the notice is given. Previously, institutions were only provided with two weeks to pay which has caused a negative reaction from industry and resulted in institutions not paying their late penalty payments. This amendment enables APRA to provide leviable bodies with the standard commercial terms-of-trade.
Item 2
5.2 This amendment provides for a date of payment to be specified in a notice sent by APRA to a superannuation entity on or after the day the return was received by APRA, or the day the fund was established. The date for payment can be no earlier than six weeks after the day on which the notice is given. This will allow APRA to more easily calculate the six weeks after a return is lodged.
5.3 This amendment corrects a drafting error. Section 9(2) of the Act does not cover those entities that become superannuation entities under the Superannuation Industry (Supervision) Act 1993 on 1 July of a financial year. The section is to be amended to cover those entities that become regulated on 1 July of a financial year.
Item 3
5.4 This amendment will ensure that late payment penalties can be calculated and invoiced on a specified calculation day. Currently invoices which incur late payment penalties must have the penalties calculated daily, making invoicing difficult.
Item 4
5.5 This amendment clarifies the application of Item 3.
Item 5
5.6 This amendment clarifies that APRA is authorised as the Commonwealths agent to recover financial sector levy debts. In addition, should a costs order be made against the Commonwealth, then the costs would be borne by APRA.
Commencement
5.7 These amendments will commence on the day after the day on which this Act receives the Royal Assent.