{"id":"C2004A00311","name":"Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998","slug":"authorised-deposit-taking-institutions-supervisory-levy-imposition-act-1998","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"51 of 1998","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":5933,"registerId":"commonwealth-C2004A00311-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  (1) Subject to subsection (2), this Act commences on a day to be fixed by Proclamation.\n  (2) If this Act does not commence under subsection (1) within the period of 24 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.\n  (3) 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.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Act binds the Crown","content":"#### 3 Act binds the Crown\n\n  This Act binds the Crown in each of its capacities.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"External Territories","content":"#### 4 External Territories\n\n  This Act extends to each external Territory.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Definitions","content":"#### 5 Definitions\n\n  In this Act, unless the contrary intention appears:\n\n> ADI has the same meaning as in the Banking Act 1959.\n\n> Note: ADI is short for authorised deposit‑taking institution.\n\n> indexation factor means the indexation factor calculated under section 8.\n\n> 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.\n\n> levy imposition day, in relation to an ADI for a financial year, means:\n\n    (a) if the ADI is an ADI on 1 July of the financial year—that day; or\n    (b) in any other case—the day, during the financial year, on which the ADI becomes an ADI.\n\n> statutory upper limit means:\n\n    (a) for the financial year commencing on 1 July 2020—$10,000,000; or\n    (b) for 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.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Imposition of authorised deposit‑taking institutions supervisory levy","content":"#### 6 Imposition of authorised deposit‑taking institutions supervisory levy\n\n  Levy payable in accordance with subsection 8(1) of the Financial Institutions Supervisory Levies Collection Act 1998 is imposed.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Amount of levy","content":"#### 7 Amount of levy\n\n  (1) Subject to subsection (2), the amount of levy payable by an ADI for a financial year is the sum of the restricted levy component and the unrestricted levy component for the financial year.\n\n> Note: For restricted levy component, see subsection (1A). For unrestricted levy component, see subsection (1B).\n\n  (1A) The restricted levy component for the financial year is:\n    (a) unless paragraph (b) or (c) applies—the amount that, for the financial year, is the restricted levy percentage of the ADI’s levy base; or\n    (b) if the amount worked out under paragraph (a) exceeds the maximum restricted levy amount for the financial year—the maximum restricted levy amount; or\n    (c) if the amount worked out under paragraph (a) is less than the minimum restricted levy amount for the financial year—the minimum restricted levy amount.\n\n> Note: The restricted levy percentage, maximum restricted levy amount, minimum restricted levy amount and the method of working out the ADI’s levy base are as determined under subsection (3).\n\n  (1B) The unrestricted levy component for the financial year is the amount that, for the financial year, is the unrestricted levy percentage of the ADI’s levy base.\n\n> Note: The unrestricted percentage is as determined under subsection (3).\n\n  (2) If the levy imposition day for the ADI for the financial year is later than 1 July in the financial year, the amount of levy payable by the ADI for the financial year is the amount worked out using the following formula:\n  ![](image.002.png)\n  (3) The Treasurer is, by legislative instrument, to determine:\n    (a) the maximum restricted levy amount for each financial year; and\n    (b) the minimum restricted levy amount for each financial year; and\n    (c) the restricted levy percentage for each financial year; and\n    (ca) the unrestricted levy percentage for each financial year; and\n    (d) how an ADI’s levy base is to be worked out.\n  (4) An amount determined under subsection (3) as the maximum restricted levy amount for a financial year must not exceed the statutory upper limit for the financial year.\n  (5) The Treasurer’s determination under paragraph (3)(d) of how an ADI’s levy base is to be worked out is to include, but is not limited to, a determination of the day as at which the ADI’s levy base is to be worked out. That day must be:\n    (a) if the ADI was an ADI at all times from and including 17 March of the previous financial year to and including the following 30 June—a day in the period from and including that 17 March to and including the following 14 April; or\n    (b) if the ADI was not an ADI at all times from and including 17 March of the previous financial year to and including the following 30 June—the day after that 17 March when the ADI became, or becomes, an ADI.\n  (6) A determination under subsection (3) may make different provision for different classes of ADIs.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Calculation of indexation factor","content":"#### 8 Calculation of indexation factor\n\n  (1) The indexation factor for a financial year is the number worked out by:\n    (a) ascertaining the index number for the most recent quarter for which the Australian Statistician has published an index number, as at the start of the day on which the Treasurer makes the first determination under subsection 7(3) of an amount or percentage for the financial year; and\n    (b) dividing that index number by the index number for the quarter 12 months before the quarter mentioned in paragraph (a); and\n    (c) adding 0.030 to the number worked out under paragraph (b).\n  (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.\n  (3) Calculations under subsection (1):\n    (a) are to be made using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and\n    (b) are to be made disregarding index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Regulations","content":"#### 9 Regulations\n\n  The Governor‑General may make regulations for the purposes of subsection 2(3).","sortOrder":8}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose of imposing a supervisory levy on ADIs. While the 2020 amendment added the 'unrestricted levy component' (previously only restricted levy existed), this represents an expansion of the funding mechanism rather than a scope creep beyond financial institution supervision. The statutory upper limit structure and indexation provisions maintain the original intent of cost recovery with inflation protection."},"complexity_factors":["Nested conditional logic in levy calculation: subsection 7(1A) contains three-tiered conditional structure (default → cap → floor) for restricted levy component","Formula-based calculation with multiple variables: levy base × percentage, subject to min/max constraints, plus separate unrestricted percentage calculation","Pro-rata adjustment formula in subsection 7(2) for mid-year entrants (though formula itself is simple, its interaction with other provisions adds complexity)","Indexation mechanism in section 8 requires CPI calculations with specific rounding rules and reference period adjustments","Delegated legislative power: Treasurer determines 5 key variables annually via legislative instrument (subsection 7(3))","Cross-references to Banking Act 1959 for ADI definition and Financial Institutions Supervisory Levies Collection Act 1998 for collection mechanism","Temporal complexity: multiple date-dependent rules including levy imposition day, levy base calculation dates (17 March to 14 April window), and financial year transitions","Class-based differentiation permitted: subsection 7(6) allows different rates for different classes of ADIs"],"plain_english_summary":"This law sets up a system for charging Australia's banks and other deposit-taking institutions an annual fee to help pay for government supervision of their operations.\n\n**What it does:**\n- **Imposes a levy** (a mandatory fee) on authorised deposit-taking institutions (ADIs) — these are banks, building societies, credit unions and other financial institutions licensed to accept deposits from customers.\n- **Splits the levy into two parts:**\n  - A **restricted levy component** — this has a minimum and maximum cap, calculated as a percentage of the institution's size (called its 'levy base'), but it can't go above or below set limits.\n  - An **unrestricted levy component** — this is simply a percentage of the institution's size with no caps.\n- **Adjusts for inflation:** The maximum possible levy amount increases each year based on the Consumer Price Index (CPI) plus an extra 3%.\n- **Handles new entrants:** If an institution becomes an ADI part-way through a financial year, it pays a pro-rata (reduced) amount based on how much of the year it was operating.\n\n**Who it affects:**\n- All ADIs operating in Australia (banks, credit unions, building societies).\n- The Treasurer, who sets the specific percentages and dollar amounts each year through a legislative instrument (a formal government decision).\n\n**Why it matters:**\nThis ensures that financial institutions — not taxpayers — bear the cost of their own regulation. The Australian Prudential Regulation Authority (APRA) supervises these institutions to keep them stable and protect depositors. This law creates the legal mechanism to recover those supervision costs from the industry itself. The 'restricted' portion is capped to protect smaller institutions from disproportionate costs, while the 'unrestricted' portion ensures larger institutions pay their fair share."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The Act applies to entities defined as ADIs in the Banking Act 1959 and does not itself redefine which entities are ADIs (s5). It establishes a levy mechanism (who pays, how amounts are calculated and who decides rates) rather than expanding or narrowing the statutory class of regulated entities. The Act binds the Crown and extends to external Territories (s3–s4). Practical coverage and amounts depend on the Treasurer’s annual determinations and class‑differentiation powers (s7(3), s7(6))."},"complexity_factors":["Executive determination of key parameters (restricted/unrestricted percentages, caps, levy‑base method) by legislative instrument introduces ongoing administrative discretion and annual changes (s7(3)).","Restricted levy component has floor and ceiling rules that require comparing calculated amounts to minimum and maximum limits (s7(1A)–(1B)).","Pro‑rata formula when an ADI’s levy imposition day is after 1 July requires an arithmetic adjustment (s7(2)).","Indexation uses the All Groups CPI with an added 0.030 and specific rounding rules, creating a multi‑step numerical procedure (s8(1)–(2)).","Cross‑link to levy collection provisions in the Financial Institutions Supervisory Levies Collection Act 1998 means enforcement and timing depend on external legislation (s6).","Ability to make different provision for different ADI classes increases rule complexity and segmentation (s7(6)).","Commencement and mid‑year effect modifications are subject to proclamation and regulations, adding implementation uncertainty (s2(1)–(3), s9).","Statutory upper limit anchored to a 2020 base and indexed annually constrains caps but requires tracking of indexation factor (s5 definition, s7(4))."],"plain_english_summary":"This Act imposes an annual supervisory levy on authorised deposit‑taking institutions (ADIs). The levy is the sum of a restricted component (subject to a minimum and a capped maximum) and an unrestricted component, both calculated from each ADI’s levy base; the Treasurer determines percentages, caps and the levy‑base method by legislative instrument (s7(1A), s7(3)). The statutory upper limit is indexed using the Consumer Price Index plus 3% (s5, s8). ADIs pay; the Treasurer’s determinations create the primary administrative discretion and compliance obligations."},"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act remains focused on its original, narrow purpose: imposing a supervisory levy on licensed deposit-taking institutions to fund prudential regulation. The 2020 amendment adding the 'unrestricted levy component' (subsection 1B) broadened the levy calculation mechanism somewhat, but this is consistent with the Act's core intent of cost recovery for APRA supervision rather than a departure from it."},"complexity_factors":["Dual-component levy structure (restricted and unrestricted) with different calculation rules for each","Statutory upper limit calculated via an indexation formula referencing CPI with an additional 3% loading","Pro-rata calculation for mid-year entrants references a formula contained in an image, not readable as text","Key operational details (percentages, minimums, maximums, levy base methodology) are delegated to annual Treasurer determinations rather than fixed in the Act itself","Interaction with and cross-references to two other Acts: the Banking Act 1959 and the Financial Institutions Supervisory Levies Collection Act 1998","Specific date windows for determining the levy base (17 March to 14 April of the previous financial year) add technical complexity","Indexation factor calculation requires identifying the correct CPI quarter relative to when the Treasurer makes determinations, with rounding rules"],"plain_english_summary":"This Act requires Authorised Deposit‑taking Institutions (ADIs) — banks, credit unions, building societies and similar licensed deposit takers — to pay an annual supervisory levy that funds APRA’s prudential supervision. Levy amounts combine a restricted component (percentage of an ADI’s levy base subject to a floor and an annual cap) and an unrestricted component (a straight percentage), with exact rates set yearly by the Treasurer. New ADIs pay pro‑rata, the statutory cap is indexed (CPI plus 3%), and costs may be passed on indirectly to consumers."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/authorised-deposit-taking-institutions-supervisory-levy-imposition-act-1998","history":"/api/acts/authorised-deposit-taking-institutions-supervisory-levy-imposition-act-1998/history","analysis":"/api/acts/authorised-deposit-taking-institutions-supervisory-levy-imposition-act-1998/analysis","conflicts":"/api/acts/authorised-deposit-taking-institutions-supervisory-levy-imposition-act-1998/conflicts","importantCases":"/api/acts/authorised-deposit-taking-institutions-supervisory-levy-imposition-act-1998/important-cases","documents":"/api/acts/authorised-deposit-taking-institutions-supervisory-levy-imposition-act-1998/documents"}}