{"id":"C2004A00312","name":"Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998","slug":"authorised-non-operating-holding-companies-supervisory-levy-imposition-act-1998","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"52 of 1998","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":5936,"registerId":"commonwealth-C2004A00312-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 Non‑operating Holding Companies Supervisory Levy Imposition Act 1998.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  (1) This Act commences on the commencement of the Australian Prudential Regulation Authority Act 1998.\n  (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.","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> authorised NOHC means:\n\n    (a) an authorised NOHC within the meaning of the Banking Act 1959 or the Insurance Act 1973; or\n    (b) a registered NOHC within the meaning of the Life Insurance Act 1995.\n\n> Note: NOHC is short for non‑operating holding company.\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 authorised NOHC for a financial year, means:\n\n    (a) if the authorised NOHC is an authorised NOHC 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 authorised NOHC becomes an authorised NOHC.\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 non‑operating holding companies supervisory levy","content":"#### 6 Imposition of authorised non‑operating holding companies supervisory levy\n\n  Levy payable in accordance with subsection 8(2) 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 authorised NOHC for a financial year is:\n    (a) if the authorised NOHC is an authorised NOHC within the meaning of the Banking Act 1959—the amount determined, by legislative instrument, by the Treasurer for the purpose of this paragraph in relation to the financial year; or\n    (b) if the authorised NOHC is an authorised NOHC within the meaning of the Insurance Act 1973—the amount determined, by legislative instrument, by the Treasurer for the purpose of this paragraph in relation to the financial year; or\n    (c) if the authorised NOHC is a registered NOHC within the meaning of the Life Insurance Act 1995—the amount determined, by legislative instrument, by the Treasurer for the purpose of this paragraph in relation to the financial year.\n  The amount determined under paragraph (a), (b) or (c) in relation to a financial year must not exceed the statutory upper limit for the financial year.\n  (2) If the levy imposition day for the authorised NOHC for the financial year is later than 1 July in the financial year, the amount of levy payable by the authorised NOHC for the financial year is the amount worked out using the following formula:\n  ![](image.002.png)","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(1) of an amount in relation to 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(2).","sortOrder":8}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: imposing a supervisory levy on non-operating holding companies in the financial sector. The 2020 amendment updating the statutory upper limit from the original $2 million to $10 million and adjusting the indexation base year represents a routine monetary update rather than scope creep. The Act has not expanded to cover new types of entities or purposes beyond its initial remit."},"complexity_factors":["Short statute (9 sections, approximately 2 pages)","Only 5 defined terms in the interpretation section","Simple conditional logic limited to pro-rata calculations in section 7(2)","Cross-references to 3 other Acts (Banking Act 1959, Insurance Act 1973, Life Insurance Act 1995) but only for definitions","Mathematical formula for indexation is explicit and contained within single section (section 8)","No nested exceptions or complex deeming provisions","Primary complexity lies in the indexation calculation (CPI + 3% margin) and the delegation of rate-setting to the Treasurer"],"plain_english_summary":"This law sets up a system for charging fees (called a 'levy') to financial companies known as 'authorised non-operating holding companies' or NOHCs. These are companies that own banks or insurance companies but don't do banking or insurance business themselves—they just hold the shares of those operating companies.\n\n**What it does:**\n- **Imposes a supervisory levy**: Requires these holding companies to pay an annual fee to help fund the Australian Prudential Regulation Authority (APRA), which supervises them.\n- **Sets the amount**: The Treasurer decides exactly how much each company pays each year (by issuing a 'legislative instrument'—basically an official order), but there's a cap that starts at $10 million for 2020-21 and goes up with inflation each year.\n- **Pro-rata for late starters**: If a company becomes a NOHC part-way through the financial year, it only pays for the part of the year it was regulated.\n- **Inflation adjustment**: The $10 million cap increases each year based on the Consumer Price Index (CPI) plus an extra 3%.\n\n**Who it affects:**\n- Holding companies authorised under the Banking Act 1959 (banking groups)\n- Holding companies authorised under the Insurance Act 1973 (general insurance groups)  \n- Holding companies registered under the Life Insurance Act 1995 (life insurance groups)\n\n**Why it matters:**\nThis is part of Australia's 'user pays' system for financial regulation. Instead of taxpayers funding the supervision of big financial groups, the groups themselves pay fees based on their size or risk. This particular Act is the 'imposition' Act—it legally creates the obligation to pay. A separate Act (the Financial Institutions Supervisory Levies Collection Act 1998) handles the actual collection of the money."},"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"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"No. The Act does not alter which entities are NOHCs; it applies to those defined in the referenced Acts (s5) and simply imposes a supervisory levy mechanism (ss6–8). Levy levels, caps and indexation are set or adjusted through the Treasurer's legislative instruments and the CPI‑based indexation formula (s7, s8)."},"complexity_factors":["Definitions and liability depend on cross‑references to three other Acts that define 'authorised NOHC' (Banking Act 1959, Insurance Act 1973, Life Insurance Act 1995) (s5).","Levy amounts are not set in the Act but by legislative instrument made by the Treasurer, creating delegated rulemaking and external dependence (s7(1)).","A statutory upper limit is specified and thereafter adjusted annually by an indexation factor that uses CPI numbers and precise rounding rules, adding calculation complexity (s5 definition of 'statutory upper limit'; s8).","Mid‑year authorisations are charged on a pro‑rata basis requiring application of a formula in the Act, which adds computational and administrative steps (s7(2)).","The Act delegates collection mechanics to the Financial Institutions Supervisory Levies Collection Act 1998 (s6), so enforcement/timing details are located in another instrument.","Commencement is tied to the Australian Prudential Regulation Authority Act 1998 and allows regulatory modification if commencement occurs mid‑year, creating an implementation dependency (s2).","The Act provides limited procedural or enforcement detail, increasing reliance on subordinate instruments and other statutes for practical compliance obligations (ss6–9)."],"plain_english_summary":"This Act requires authorised non‑operating holding companies (NOHCs) regulated under the Banking, Insurance and Life Insurance Acts to pay an annual supervisory levy. The Treasurer sets levy amounts by legislative instrument (subject to an indexed statutory upper limit), indexation adjusts the cap for inflation, and a pro‑rata formula applies if a company becomes authorised mid‑year."},"summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act remains tightly focused on its original purpose: imposing a supervisory levy on authorised non-operating holding companies to fund APRA oversight. The statutory upper limit mechanism and CPI indexation are administrative refinements consistent with the original intent rather than expansions of scope."},"complexity_factors":["Cross-references multiple other Acts (Banking Act 1959, Insurance Act 1973, Life Insurance Act 1995, Financial Institutions Supervisory Levies Collection Act 1998, APRA Act 1998), requiring readers to consult external legislation to fully understand scope","The levy amount itself is not fixed in the Act but delegated to the Treasurer via legislative instrument, meaning the actual financial obligation cannot be determined from this Act alone","Indexation formula for the statutory upper limit involves a modified CPI calculation with a 3% uplift added, which is non-standard and requires careful reading","Pro-rata formula for mid-year entrants is referenced but not reproduced in text (contained in an image), creating a gap in readable content","Distinguishes between three different categories of NOHCs with potentially different levy amounts, adding a layered determination structure","Commencement provisions include a contingency for mid-financial-year commencement with regulatory modifications, adding a procedural complexity layer"],"plain_english_summary":"This Act imposes an annual supervisory levy on Authorised Non‑Operating Holding Companies — the parent companies above banks, general insurers and life insurers — to fund APRA’s oversight. The Treasurer determines the yearly fee subject to a statutory cap (indexed by CPI, e.g. ~$10M for 2020–21), and levies are prorated if an entity becomes a NOHC mid‑year. It targets large financial conglomerates, not ordinary consumers."}},"importantCases":[],"_links":{"self":"/api/acts/authorised-non-operating-holding-companies-supervisory-levy-imposition-act-1998","history":"/api/acts/authorised-non-operating-holding-companies-supervisory-levy-imposition-act-1998/history","analysis":"/api/acts/authorised-non-operating-holding-companies-supervisory-levy-imposition-act-1998/analysis","conflicts":"/api/acts/authorised-non-operating-holding-companies-supervisory-levy-imposition-act-1998/conflicts","importantCases":"/api/acts/authorised-non-operating-holding-companies-supervisory-levy-imposition-act-1998/important-cases","documents":"/api/acts/authorised-non-operating-holding-companies-supervisory-levy-imposition-act-1998/documents"}}