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This is a Bill, not an Act. For current law, see the Acts databases.
1996-97-98
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
General Insurance
Supervisory Levy Imposition Bill 1998
No.
, 1998
(Treasury)
A
Bill for an Act to impose a levy on bodies to which the Insurance Act
1973 applies
9803720—24.3.1998—(37/98) Cat. No. 97 2822
8 ISBN 0644 518723
Contents
A Bill for an Act to impose a levy on bodies to which the
Insurance Act 1973 applies
The Parliament of Australia enacts:
This Act may be cited as the General Insurance Supervisory Levy
Imposition Act 1998.
(1) This Act commences on the commencement of the Australian Prudential
Regulation Authority Act 1998.
(2) If this Act commences during a financial year (but not on 1 July of
that financial year), this Act has effect in relation to that financial year
subject to the modifications specified in the regulations.
This Act binds the Crown in each of its capacities.
This Act extends to each external Territory.
(1) This Act applies to Lloyd’s (within the meaning of section 3 of
the Insurance Act 1973), at all times after the commencement of this Act,
as if Lloyd’s were a body corporate authorised under that Act to carry on
insurance business.
(2) For the purpose of this Act, Lloyd’s assets, at a particular
time, are taken to be the amounts standing to the credit of all designated
security trust funds (within the meaning of Part VII of the Insurance Act
1973) at that time.
(3) Nothing in this Act imposes levy on any Lloyd’s
underwriter.
In this Act, unless the contrary intention appears:
general insurance company means a body corporate that is
authorised under the Insurance Act 1973 to carry on insurance business
within the meaning of that Act.
indexation factor means the indexation factor calculated
under section 9.
index number, in relation to a quarter, means the All Groups
Consumer Price Index number, being the weighted average of the 8 capital cities,
published by the Australian Statistician in respect of that quarter.
levy imposition day, in relation to a general insurance
company for a financial year, means:
(a) if the general insurance company is a general insurance company on 1
July of the financial year—that day; or
(b) in any other case—the day, during the financial year, on which
the general insurance company becomes a general insurance company.
statutory upper limit means:
(a) in relation to the first financial year that ends after this Act
commences—$500,000; or
(b) in relation to a later financial year—the amount calculated by
multiplying the statutory upper limit for the previous financial year by the
indexation factor for the later financial year.
Levy payable in accordance with subsection 8(3) of the Financial
Institutions Supervisory Levies Collection Act 1998 is imposed.
(1) Subject to subsection (2), the amount of levy payable by a general
insurance company for a financial year is:
(a) unless paragraph (b) or (c) applies—the amount that, for the
financial year, is the levy percentage of the general insurance company’s
asset value; or
(b) if the amount worked out under paragraph (a) exceeds the maximum levy
amount for the financial year—the maximum levy amount; or
(c) if the amount worked out under paragraph (a) is less than the minimum
levy amount for the financial year—the minimum levy amount.
Note: The levy percentage, maximum levy amount, minimum levy
amount and the method of working out the general insurance company’s asset
value, are as determined under subsection (3).
(2) If the levy imposition day for the general insurance company for the
financial year is later than 1 July in the financial year, the amount of levy
payable on the general insurance company for the financial year is the amount
worked out using the following formula:
(3) The Treasurer is, in writing, to determine:
(a) the maximum levy amount for each financial year;
and
(b) the minimum levy amount for each financial year;
and
(c) the levy percentage for each financial year;
and
(d) how a general insurance company’s asset value is
to be worked out.
(4) An amount determined under subsection (3) as the maximum levy amount
must not exceed the statutory upper limit as at the time when the determination
is made.
(5) The Treasurer’s determination under paragraph (3)(d) of how a
general insurance company’s asset value is to be worked out is to include,
but is not limited to, a determination of the day as at which the general
insurance company’s asset value is to be worked out. That day must
be:
(a) if the general insurance company was a general insurance company on 1
July of the financial year—a day between 17 March and 14 April of the
previous financial year; or
(b) if the general insurance company was not a general insurance company
on 1 July of the financial year—the day after 31 March of the previous
financial year on which the general insurance company became or becomes a
general insurance company.
(6) A determination under subsection (3) is a disallowable instrument for
the purposes of section 46A of the Acts Interpretation Act
1901.
(1) The indexation factor for a financial year is the number worked out by
dividing the index number for the March quarter immediately preceding that
financial year by the index number for the March quarter immediately preceding
that first-mentioned March quarter.
(2) The indexation factor is to be calculated to 3 decimal places, but
increased by .001 if the 4th decimal place is more than 4.
(3) Calculations under subsection (1):
(a) are to be made using only the index numbers published in terms of the
most recently published reference base for the Consumer Price Index;
and
(b) are to be made disregarding index numbers that are published in
substitution for previously published index numbers (where the substituted
numbers are published to take account of changes in the reference
base).
The Governor-General may make regulations for the purposes of subsection
2(2).