SUPERANNUATION (FINANCIAL ASSISTANCE FUNDING) LEVY ACT 1993

SECTION 1  SHORT TITLE   1 

This Act may be cited as the Superannuation (Financial Assistance Funding) Levy Act 1993.

SECTION 2  COMMENCEMENT   2 

This Act commences on the same day as Part 23 of the Superannuation Industry (Supervision) Act 1993.

SECTION 3  OBJECT OF ACT   3 

The object of this Act is to impose levies on superannuation funds and approved deposit funds for the purpose of funding financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 to certain funds that have suffered loss as a result of fraudulent conduct or theft.

SECTION 4  APPLICATION OF THE SUPERANNUATION INDUSTRY (SUPERVISION) ACT   4 

Section 9, and Division 2 of Part 1, of the Superannuation Industry (Supervision) Act 1993 apply in relation to this Act in a corresponding way to the way in which they apply in relation to that Act.

SECTION 5  INTERPRETATION   5 

In this Act, unless the contrary intention appears:

``fund'' means a regulated superannuation fund or an approved deposit fund, but does not include a self managed superannuation fund;

``levy'' means levy imposed by regulations under section 6 of this Act.

SECTION 6  REGULATIONS MAY IMPOSE LEVIES  

6(1)  [Imposition of levy]  

If the Minister makes a determination under Part 23 of the Superannuation Industry (Supervision) Act 1993 to grant financial assistance to a fund, the regulations may impose a levy or levies on each fund other than:

(a)  the first-mentioned fund; or

(b)  another fund in respect of which such a determination was made in the same financial year.

6(1A)  [Levy in respect of more than one determination]  

If the Minister makes more than one determination in a financial year under Part 23 of the Superannuation Industry (Supervision) Act 1993 to grant financial assistance, the regulations may impose a levy on each fund that is not a fund in respect of which a determination was made in the same financial year.

6(1B)  [Regulations for levy in respect of more than one determination]  

Regulations made for the purposes of subsection (1A) imposing a levy in respect of more than one determination must specify all the funds in respect of which determinations are made and the proportion of the levy that each fund represents.

6(2)  [Identification]  

Each levy must be identified in the regulations by a unique number.

6(3)  [Maximum and minimum amount]  

Regulations imposing a levy in respect of one or more determinations may specify that either or both of the following are payable:

(a)  a maximum amount of levy;

(b)  a minimum amount of levy.

SECTION 7  BASIS FOR PRESCRIBING AMOUNT OF LEVY  

7(1)  [Limit on amount]  

Subject to subsection (2):

(a)  the rate or rates of a levy that are imposed because of one or more grants of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993; and

(b)  the maximum amount of levy, and the minimum amount of levy, that is payable;

are to be fixed on the basis that the amount of revenue to be raised by the levy or by the levy and any previous levy imposed because of the same grant or grants of financial assistance is not to exceed the amount of levy needed to recoup the Commonwealth for the amount of that financial assistance.

7(2)  [Limit on rates]  

The rate or rates of a levy imposed in a financial year are not to be such that the total of the amounts payable in respect of the levy, or the total of those amounts and any amounts payable in respect of a previous levy imposed in the same financial year, would exceed 0.05% of the sum of the values at the end of the previous financial year of all the assets of the funds on which the levy or levies are imposed.

7(3)  [Effect of exceeding limits]  

In making regulations fixing the rate or rates of a levy, regard is to be had to subsections (1) and (2) but the validity of a regulation is not affected merely because it fixes a rate or rates of levy in excess of the maximum rate or rates required because of those subsections.

SECTION 8  AMOUNT OF LEVY  

8(1)  [Formula]  

The amount of a levy imposed on a fund is worked out using the formula:

                      Applicable rate x Value of assets

      

where: CMPT ``Applicable rate'' means the rate (expressed as a decimal fraction) that, under the regulations, is the rate of the levy applicable to the fund; CMPT ``Value of assets'' means the value of the assets of the fund at the end of the last financial year of the fund before the day on which the regulation imposing the levy took effect.

8(1A)  [Maximum and minimum amounts]  

However:

(a)  if there is a maximum amount of levy that is payable and the amount worked out under subsection (1) is more than that maximum amount - the amount of levy imposed on the fund is the maximum amount; or

(b)  if there is a minimum amount of levy that is payable and the amount worked out under subsection (1) is less than that minimum amount - the amount of levy imposed on the fund is the minimum amount.

8(2)  [Maximum rate]  

The applicable rate must not exceed 0.0005.

SECTION 9  LEVIES MAY DISCRIMINATE BETWEEN CLASSES OF FUNDS  

9(1)  [When different rates allowed]  

Regulations imposing a levy:

(a)  may provide different rates of the levy for different classes of funds; but

(b)  must not otherwise discriminate between different funds.

9(2)  [Definition of class of funds]  

Regulations imposing a levy may define what constitutes a class of funds for the purposes of the levy but must not define a class in such a way that the levy would discriminate between States or parts of States.

SECTION 10  REGULATIONS   10 

The Governor-General may make regulations prescribing matters:

(a)  required or permitted by this Act to be prescribed; or

(b)  necessary or convenient to be prescribed for carrying out or giving effect to this Act.