{"id":"C2023A00044","name":"Financial Services Compensation Scheme of Last Resort Levy Act 2023","slug":"financial-services-compensation-scheme-of-last-resort-levy-act-2023","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"44 of 2023","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":44606,"registerId":"commonwealth-C2023A00044-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act is the Financial Services Compensation Scheme of Last Resort Levy Act 2023.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this Act

The day after this Act receives the Royal Assent.

4 July 2023

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Act to bind Crown","content":"#### 3 Act to bind Crown\n\n This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not bind the Crown in right of the Commonwealth.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Extension to external Territories","content":"#### 4 Extension to external Territories\n\n This Act extends to the external Territories.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Extra‑territorial application","content":"#### 5 Extra‑territorial application\n\n This Act extends to acts, omissions, matters and things outside Australia.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Act does not impose levy on property of a State","content":"#### 6 Act does not impose levy on property of a State\n\n (1) This Act does not impose a tax on property of any kind belonging to a State.\n (2) In this section:\n\n> property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.","sortOrder":6},{"sectionNumber":"7","sectionType":"section","heading":"Definitions","content":"#### 7 Definitions\n\n (1) In this Act:\n\n> accumulation recovery day has the same meaning as in the Corporations Act 2001.\n\n> AFCA (short for the Australian Financial Complaints Authority) has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s accumulated unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> AFCA scheme has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> amount includes a nil amount.\n\n> ASIC means the Australian Securities and Investments Commission.\n\n> body regulated by APRA has the same meaning as in the Australian Prudential Regulation Authority Act 1998.\n\n> claims, fees and costs estimate means:\n\n (a) an initial claims, fees and costs estimate; or\n (b) a revised claims, fees and costs estimate.\n\n> Commissioner means the Commissioner of Taxation.\n\n> first levy period means the period that:\n\n (a) starts on the day specified in a determination in force under subsection (2); and\n (b) ends on 30 June 2024.\n\n> income year has the same meaning as in the Income Tax Assessment Act 1997.\n\n> initial claims, fees and costs estimate, for a levy period and a sub‑sector, means an estimate determined under subsection 9(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> levy means levy imposed by this Act (see Division 1 of Part 2).\n\n> Levy Collection Act means the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.\n\n> levy period means:\n\n (a) the first levy period; or\n (b) a financial year starting after the end of the first levy period.\n\n> person has a meaning affected by section 18.\n\n> qualifying period, for a levy period, means the 12‑month period starting 24 months before the start of the levy period.\n\n> revised claims, fees and costs estimate, for a levy period and a sub‑sector, means a revised estimate determined under subsection 10(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> scheme levy cap means the cap specified in subsection 17(1).\n\n> sub‑sector has the same meaning as in the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n> Note: A person may form part of more than one sub‑sector.\n\n> sub‑sector levy cap, for a levy period and a sub‑sector, means the cap worked out under subsection 17(2) for the levy period and the sub‑sector.\n\n (2) The Minister may, by notifiable instrument, determine a specified day to be the day that the first levy period starts (which must not be before the day the determination commences).","sortOrder":7},{"sectionNumber":"Part 2","sectionType":"part","heading":"Levy","content":"An Act to impose levy on persons relating to the AFCA scheme, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act is the Financial Services Compensation Scheme of Last Resort Levy Act 2023.\n\n#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this Act

The day after this Act receives the Royal Assent.

4 July 2023

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.\n\n#### 3 Act to bind Crown\n\n This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not bind the Crown in right of the Commonwealth.\n\n#### 4 Extension to external Territories\n\n This Act extends to the external Territories.\n\n#### 5 Extra‑territorial application\n\n This Act extends to acts, omissions, matters and things outside Australia.\n\n#### 6 Act does not impose levy on property of a State\n\n (1) This Act does not impose a tax on property of any kind belonging to a State.\n (2) In this section:\n\n> property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.\n\n#### 7 Definitions\n\n (1) In this Act:\n\n> accumulation recovery day has the same meaning as in the Corporations Act 2001.\n\n> AFCA (short for the Australian Financial Complaints Authority) has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s accumulated unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> AFCA scheme has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> amount includes a nil amount.\n\n> ASIC means the Australian Securities and Investments Commission.\n\n> body regulated by APRA has the same meaning as in the Australian Prudential Regulation Authority Act 1998.\n\n> claims, fees and costs estimate means:\n\n (a) an initial claims, fees and costs estimate; or\n (b) a revised claims, fees and costs estimate.\n\n> Commissioner means the Commissioner of Taxation.\n\n> first levy period means the period that:\n\n (a) starts on the day specified in a determination in force under subsection (2); and\n (b) ends on 30 June 2024.\n\n> income year has the same meaning as in the Income Tax Assessment Act 1997.\n\n> initial claims, fees and costs estimate, for a levy period and a sub‑sector, means an estimate determined under subsection 9(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> levy means levy imposed by this Act (see Division 1 of Part 2).\n\n> Levy Collection Act means the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.\n\n> levy period means:\n\n (a) the first levy period; or\n (b) a financial year starting after the end of the first levy period.\n\n> person has a meaning affected by section 18.\n\n> qualifying period, for a levy period, means the 12‑month period starting 24 months before the start of the levy period.\n\n> revised claims, fees and costs estimate, for a levy period and a sub‑sector, means a revised estimate determined under subsection 10(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> scheme levy cap means the cap specified in subsection 17(1).\n\n> sub‑sector has the same meaning as in the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n> Note: A person may form part of more than one sub‑sector.\n\n> sub‑sector levy cap, for a levy period and a sub‑sector, means the cap worked out under subsection 17(2) for the levy period and the sub‑sector.\n\n (2) The Minister may, by notifiable instrument, determine a specified day to be the day that the first levy period starts (which must not be before the day the determination commences).\n\n## Part 2—Levy\n\n### Division 1—Imposition of levy\n\n#### 8 Imposition of levy—main cases\n\n Annual levy\n (1) Levy is imposed on a person for the second levy period or a later levy period if, at any time during the qualifying period for the levy period:\n (a) the person is a member of a sub‑sector of a kind prescribed by the regulations for the purposes of this paragraph; and\n (b) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n Further levy for a sub‑sector—total levy does not exceed the sub‑sector levy cap\n (2) Further levy is imposed on the person for the levy period and the sub‑sector if:\n (a) immediately before a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector, the sub‑sector levy cap for the levy period and the sub‑sector has not been exceeded; and\n (b) the revised claims, fees and costs estimate specifies that further levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: The total amount of further levy imposed under this subsection cannot cause the sub‑sector levy cap to be exceeded, but can be imposed up to that cap (see subsection 13(2)).\n\n> Note 2: Alternatively, further levy may be imposed by subsection (3) or section 9 if the Minister acts under section 1069H of the Corporations Act 2001. This alternative levy can be based on the full revised claims, fees and costs estimate and cause the sub‑sector levy cap to be exceeded.\n\n> Note 3: Further levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector.\n\n Special levy for a sub‑sector—total levy exceeds the sub‑sector levy cap\n (3) Levy is imposed on the person for the levy period if both of the following have come into force for the levy period and the sub‑sector:\n (a) a revised claims, fees and costs estimate;\n (b) as a result of that estimate, a determination under section 1069H of the Corporations Act 2001 that, under subsection 1069H(4) of that Act, specifies that levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across just this sub‑sector when the revised claims, fees and costs estimate causes the sub‑sector levy cap to be exceeded.\n\n> Note 2: Special levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period and the sub‑sector.\n\n#### 9 Imposition of special levy—revised estimate of claims, fees and costs exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n Levy is imposed on a person for the second levy period or a later levy period if:\n (a) a revised claims, fees and costs estimate comes into force for the levy period and a sub‑sector; and\n (b) as a result of that estimate, a determination comes into force under section 1069H of the Corporations Act 2001 that, under subsection 1069H(5) of that Act, specifies that levy needs to be imposed by this section:\n (i) for the levy period; and\n (ii) across all members of one or more specified sub‑sectors (which need not include the sub‑sector to which that estimate relates); and\n (c) at any time during the levy period or the previous levy period, the person is a member of one of the sub‑sectors specified in that determination; and\n (d) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across one or more other sub‑sectors to deal with a revised claims, fees and costs estimate for a particular sub‑sector that causes the sub‑sector levy cap for that sub‑sector to be exceeded.\n\n> Note 2: Such a determination could be made instead of a determination that, under subsection 1069H(4) of the Corporations Act 2001, specifies that special levy needs only to be imposed by subsection 8(3) of this Act for the levy period and the sub‑sector to which the revised claims, fees and costs estimate relates.\n\n> Note 3: Special levy can be imposed under this section more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period.\n\n#### 10 Imposition of levy—unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n Levy is imposed on a person for the first levy period if:\n (a) at any time during the 12 months before the start of the first levy period, the person is a body regulated by APRA, other than:\n (i) a private health insurer covered by paragraph 3(2)(ea) of the Australian Prudential Regulation Authority Act 1998; or\n (ii) a trustee covered by paragraph 3(2)(f) of that Act; and\n (b) section 3C of the Taxation Administration Act 1953 applies to the person for the 2021‑2022 income year; and\n (c) the person’s total income for that income year (for the purposes of paragraph 3C(3)(b) of that Act) is one of the 10 highest of all the persons to whom both paragraphs (a) and (b) apply.\n\n#### 11 By whom levy payable\n\n Levy imposed on a person for a levy period is payable by the person.\n\n### Division 2—Amount of levy\n\n#### 12 Amount of annual levy\n\n (1) The amount of levy imposed by subsection 8(1) on a person for a levy period and a sub‑sector is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of annual levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(1) across all members of a sub‑sector for a levy period:\n (a) does not exceed the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 13 Amount of further levy—total levy does not exceed the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(2) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector;\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out further amounts of levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(2) across all members of a sub‑sector for a levy period and a revised claims, fees and costs estimate:\n (a) does not exceed the difference between:\n (i) the revised claims, fees and costs estimate; and\n (ii) the total amount of levy paid that was earlier imposed by section 8 across all members of the sub‑sector for the levy period; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 14 Amount of special levy—total levy exceeds the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(3) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because the following have come into force for the levy period and the sub‑sector:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(3) across all members of the sub‑sector for the levy period:\n (a) does not exceed the total amount specified, under paragraph 1069H(4)(b) of the Corporations Act 2001, in the Minister’s determination; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 15 Amount of special levy—total levy exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n (1) The amount of levy imposed by section 9 on a person:\n (a) for a levy period; and\n (b) because the following have come into force for the levy period:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) An objective is that the total amount of levy imposed by section 9:\n (a) for the levy period; and\n (b) across all members of a sub‑sector specified, under paragraph 1069H(5)(b) of the Corporations Act 2001, in the Minister’s determination;\n does not exceed the total amount specified, under that paragraph, for that sub‑sector in the Minister’s determination.\n (3) Another objective is that the sum of the total amounts of levy imposed by section 9:\n (a) for the levy period; and\n (b) specified, under paragraph 1069H(5)(c) of the Corporations Act 2001, in the Minister’s determination;\n does not cause the scheme levy cap to be exceeded.\n Regulations\n (4) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsections (2) and (3).\n (5) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 16 Amount of levy for unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n (1) The amount of levy imposed by section 10 on a person for the first levy period is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n\n> Note: This levy is payable in 2 equal instalments (see subsection 13(1) of the Levy Collection Act).\n\n Objectives for working out amounts of levy\n (2) The objectives are that the total amount of levy imposed by section 10 across all persons for the first levy period:\n (a) does not exceed the estimate determined under section 11 of the Levy Collection Act for the first levy period; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for the first levy period may have regard to a determination under section 11 of the Levy Collection Act for the first levy period.\n\n### Division 3—Caps on levy\n\n#### 17 Total caps on levy\n\n Scheme levy cap\n (1) The total amount of levy that may be imposed for any levy period across all persons across all sub‑sectors must not exceed $250 million.\n\n> Note: This cap is the absolute maximum amount of levy that may be imposed for a levy period across all persons for all sub‑sectors.\n\n Sub‑sector levy cap\n (2) The total amount of levy that may be imposed for the second levy period, or a later levy period, across all members of a particular sub‑sector must not exceed the cap (the sub‑sector levy cap) that is the highest of the following:\n (a) $20 million;\n (b) the amount prescribed (or the amount worked out in accordance with a method prescribed) for the levy period and the sub‑sector by the regulations for the purposes of this paragraph;\n unless the cap is exceeded (or further exceeded) because of a determination under section 1069H of the Corporations Act 2001 for the levy period and a sub‑sector specifying that levy needs to be imposed by subsection 8(3) or section 9 of this Act.\n\n> Note 1: Unless the Minister makes such a determination, this sub‑sector levy cap is an absolute maximum amount of levy that may be imposed for a levy period across all members of the sub‑sector.\n\n> Note 2: Subsection 8(3) and section 9 of this Act are about special levy. The Minister’s determination can specify that special levy needs to be imposed by section 9 on either or both of the following:\n\n (a) all members of the sub‑sector;\n (b) all members of one or more other sub‑sectors.\n\n> Note 3: Special levy imposed by section 9 of this Act on members of a sub‑sector only counts towards the sub‑sector levy cap for that sub‑sector.\n\n (3) Subsection (2) has effect subject to subsection (1).\n\n## Part 3—Other matters\n\n#### 18 Treatment of partnerships, unincorporated associations and multiple trustees\n\n Application to partnerships\n (1) This Act applies to a partnership as if the partnership were a person. However, obligations that would be imposed on the partnership are imposed instead on each partner, but may be discharged by any of the partners.\n Application to unincorporated associations\n (2) This Act applies to an unincorporated association as if the unincorporated association were a person. However, an obligation that would otherwise be imposed on the association:\n (a) is imposed on each member of the association’s committee of management instead; but\n (b) may be discharged by any of the members.\n Application to RSE licensee that is a group of individual trustees\n (3) This Act applies to an RSE licensee that is a group of individual trustees as if the group were a person. However, an obligation that would otherwise be imposed on the group is imposed on each individual, but may be discharged by any of the individuals.\n Application to multiple trustees treated as single entity\n (4) Subsections (5), (6) and (7) apply if a trustee or trustees of a trust are treated during a period as constituting:\n (a) a single legal entity (the notional entity) under section 761FA of the Corporations Act 2001; or\n (b) a single person (also the notional entity) under section 15 of the National Consumer Credit Protection Act 2009.\n (5) This Act applies to the notional entity during the period as if the notional entity were a person, but with the changes set out in subsections (6) and (7).\n (6) During the period, or any part of the period, that the trust has 2 or more trustees, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on each trustee, but may be discharged by any of the trustees.\n (7) During the period, or any part of the period, that the trust has only one trustee, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on that single trustee.\n\n#### 19 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed by the regulations; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":8},{"sectionNumber":"Division 1","sectionType":"division","heading":"Imposition of levy","content":"An Act to impose levy on persons relating to the AFCA scheme, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act is the Financial Services Compensation Scheme of Last Resort Levy Act 2023.\n\n#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this Act

The day after this Act receives the Royal Assent.

4 July 2023

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.\n\n#### 3 Act to bind Crown\n\n This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not bind the Crown in right of the Commonwealth.\n\n#### 4 Extension to external Territories\n\n This Act extends to the external Territories.\n\n#### 5 Extra‑territorial application\n\n This Act extends to acts, omissions, matters and things outside Australia.\n\n#### 6 Act does not impose levy on property of a State\n\n (1) This Act does not impose a tax on property of any kind belonging to a State.\n (2) In this section:\n\n> property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.\n\n#### 7 Definitions\n\n (1) In this Act:\n\n> accumulation recovery day has the same meaning as in the Corporations Act 2001.\n\n> AFCA (short for the Australian Financial Complaints Authority) has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s accumulated unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> AFCA scheme has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> amount includes a nil amount.\n\n> ASIC means the Australian Securities and Investments Commission.\n\n> body regulated by APRA has the same meaning as in the Australian Prudential Regulation Authority Act 1998.\n\n> claims, fees and costs estimate means:\n\n (a) an initial claims, fees and costs estimate; or\n (b) a revised claims, fees and costs estimate.\n\n> Commissioner means the Commissioner of Taxation.\n\n> first levy period means the period that:\n\n (a) starts on the day specified in a determination in force under subsection (2); and\n (b) ends on 30 June 2024.\n\n> income year has the same meaning as in the Income Tax Assessment Act 1997.\n\n> initial claims, fees and costs estimate, for a levy period and a sub‑sector, means an estimate determined under subsection 9(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> levy means levy imposed by this Act (see Division 1 of Part 2).\n\n> Levy Collection Act means the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.\n\n> levy period means:\n\n (a) the first levy period; or\n (b) a financial year starting after the end of the first levy period.\n\n> person has a meaning affected by section 18.\n\n> qualifying period, for a levy period, means the 12‑month period starting 24 months before the start of the levy period.\n\n> revised claims, fees and costs estimate, for a levy period and a sub‑sector, means a revised estimate determined under subsection 10(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> scheme levy cap means the cap specified in subsection 17(1).\n\n> sub‑sector has the same meaning as in the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n> Note: A person may form part of more than one sub‑sector.\n\n> sub‑sector levy cap, for a levy period and a sub‑sector, means the cap worked out under subsection 17(2) for the levy period and the sub‑sector.\n\n (2) The Minister may, by notifiable instrument, determine a specified day to be the day that the first levy period starts (which must not be before the day the determination commences).\n\n## Part 2—Levy\n\n### Division 1—Imposition of levy\n\n#### 8 Imposition of levy—main cases\n\n Annual levy\n (1) Levy is imposed on a person for the second levy period or a later levy period if, at any time during the qualifying period for the levy period:\n (a) the person is a member of a sub‑sector of a kind prescribed by the regulations for the purposes of this paragraph; and\n (b) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n Further levy for a sub‑sector—total levy does not exceed the sub‑sector levy cap\n (2) Further levy is imposed on the person for the levy period and the sub‑sector if:\n (a) immediately before a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector, the sub‑sector levy cap for the levy period and the sub‑sector has not been exceeded; and\n (b) the revised claims, fees and costs estimate specifies that further levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: The total amount of further levy imposed under this subsection cannot cause the sub‑sector levy cap to be exceeded, but can be imposed up to that cap (see subsection 13(2)).\n\n> Note 2: Alternatively, further levy may be imposed by subsection (3) or section 9 if the Minister acts under section 1069H of the Corporations Act 2001. This alternative levy can be based on the full revised claims, fees and costs estimate and cause the sub‑sector levy cap to be exceeded.\n\n> Note 3: Further levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector.\n\n Special levy for a sub‑sector—total levy exceeds the sub‑sector levy cap\n (3) Levy is imposed on the person for the levy period if both of the following have come into force for the levy period and the sub‑sector:\n (a) a revised claims, fees and costs estimate;\n (b) as a result of that estimate, a determination under section 1069H of the Corporations Act 2001 that, under subsection 1069H(4) of that Act, specifies that levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across just this sub‑sector when the revised claims, fees and costs estimate causes the sub‑sector levy cap to be exceeded.\n\n> Note 2: Special levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period and the sub‑sector.\n\n#### 9 Imposition of special levy—revised estimate of claims, fees and costs exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n Levy is imposed on a person for the second levy period or a later levy period if:\n (a) a revised claims, fees and costs estimate comes into force for the levy period and a sub‑sector; and\n (b) as a result of that estimate, a determination comes into force under section 1069H of the Corporations Act 2001 that, under subsection 1069H(5) of that Act, specifies that levy needs to be imposed by this section:\n (i) for the levy period; and\n (ii) across all members of one or more specified sub‑sectors (which need not include the sub‑sector to which that estimate relates); and\n (c) at any time during the levy period or the previous levy period, the person is a member of one of the sub‑sectors specified in that determination; and\n (d) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across one or more other sub‑sectors to deal with a revised claims, fees and costs estimate for a particular sub‑sector that causes the sub‑sector levy cap for that sub‑sector to be exceeded.\n\n> Note 2: Such a determination could be made instead of a determination that, under subsection 1069H(4) of the Corporations Act 2001, specifies that special levy needs only to be imposed by subsection 8(3) of this Act for the levy period and the sub‑sector to which the revised claims, fees and costs estimate relates.\n\n> Note 3: Special levy can be imposed under this section more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period.\n\n#### 10 Imposition of levy—unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n Levy is imposed on a person for the first levy period if:\n (a) at any time during the 12 months before the start of the first levy period, the person is a body regulated by APRA, other than:\n (i) a private health insurer covered by paragraph 3(2)(ea) of the Australian Prudential Regulation Authority Act 1998; or\n (ii) a trustee covered by paragraph 3(2)(f) of that Act; and\n (b) section 3C of the Taxation Administration Act 1953 applies to the person for the 2021‑2022 income year; and\n (c) the person’s total income for that income year (for the purposes of paragraph 3C(3)(b) of that Act) is one of the 10 highest of all the persons to whom both paragraphs (a) and (b) apply.\n\n#### 11 By whom levy payable\n\n Levy imposed on a person for a levy period is payable by the person.\n\n### Division 2—Amount of levy\n\n#### 12 Amount of annual levy\n\n (1) The amount of levy imposed by subsection 8(1) on a person for a levy period and a sub‑sector is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of annual levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(1) across all members of a sub‑sector for a levy period:\n (a) does not exceed the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 13 Amount of further levy—total levy does not exceed the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(2) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector;\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out further amounts of levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(2) across all members of a sub‑sector for a levy period and a revised claims, fees and costs estimate:\n (a) does not exceed the difference between:\n (i) the revised claims, fees and costs estimate; and\n (ii) the total amount of levy paid that was earlier imposed by section 8 across all members of the sub‑sector for the levy period; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 14 Amount of special levy—total levy exceeds the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(3) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because the following have come into force for the levy period and the sub‑sector:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(3) across all members of the sub‑sector for the levy period:\n (a) does not exceed the total amount specified, under paragraph 1069H(4)(b) of the Corporations Act 2001, in the Minister’s determination; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 15 Amount of special levy—total levy exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n (1) The amount of levy imposed by section 9 on a person:\n (a) for a levy period; and\n (b) because the following have come into force for the levy period:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) An objective is that the total amount of levy imposed by section 9:\n (a) for the levy period; and\n (b) across all members of a sub‑sector specified, under paragraph 1069H(5)(b) of the Corporations Act 2001, in the Minister’s determination;\n does not exceed the total amount specified, under that paragraph, for that sub‑sector in the Minister’s determination.\n (3) Another objective is that the sum of the total amounts of levy imposed by section 9:\n (a) for the levy period; and\n (b) specified, under paragraph 1069H(5)(c) of the Corporations Act 2001, in the Minister’s determination;\n does not cause the scheme levy cap to be exceeded.\n Regulations\n (4) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsections (2) and (3).\n (5) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 16 Amount of levy for unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n (1) The amount of levy imposed by section 10 on a person for the first levy period is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n\n> Note: This levy is payable in 2 equal instalments (see subsection 13(1) of the Levy Collection Act).\n\n Objectives for working out amounts of levy\n (2) The objectives are that the total amount of levy imposed by section 10 across all persons for the first levy period:\n (a) does not exceed the estimate determined under section 11 of the Levy Collection Act for the first levy period; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for the first levy period may have regard to a determination under section 11 of the Levy Collection Act for the first levy period.\n\n### Division 3—Caps on levy\n\n#### 17 Total caps on levy\n\n Scheme levy cap\n (1) The total amount of levy that may be imposed for any levy period across all persons across all sub‑sectors must not exceed $250 million.\n\n> Note: This cap is the absolute maximum amount of levy that may be imposed for a levy period across all persons for all sub‑sectors.\n\n Sub‑sector levy cap\n (2) The total amount of levy that may be imposed for the second levy period, or a later levy period, across all members of a particular sub‑sector must not exceed the cap (the sub‑sector levy cap) that is the highest of the following:\n (a) $20 million;\n (b) the amount prescribed (or the amount worked out in accordance with a method prescribed) for the levy period and the sub‑sector by the regulations for the purposes of this paragraph;\n unless the cap is exceeded (or further exceeded) because of a determination under section 1069H of the Corporations Act 2001 for the levy period and a sub‑sector specifying that levy needs to be imposed by subsection 8(3) or section 9 of this Act.\n\n> Note 1: Unless the Minister makes such a determination, this sub‑sector levy cap is an absolute maximum amount of levy that may be imposed for a levy period across all members of the sub‑sector.\n\n> Note 2: Subsection 8(3) and section 9 of this Act are about special levy. The Minister’s determination can specify that special levy needs to be imposed by section 9 on either or both of the following:\n\n (a) all members of the sub‑sector;\n (b) all members of one or more other sub‑sectors.\n\n> Note 3: Special levy imposed by section 9 of this Act on members of a sub‑sector only counts towards the sub‑sector levy cap for that sub‑sector.\n\n (3) Subsection (2) has effect subject to subsection (1).\n\n## Part 3—Other matters\n\n#### 18 Treatment of partnerships, unincorporated associations and multiple trustees\n\n Application to partnerships\n (1) This Act applies to a partnership as if the partnership were a person. However, obligations that would be imposed on the partnership are imposed instead on each partner, but may be discharged by any of the partners.\n Application to unincorporated associations\n (2) This Act applies to an unincorporated association as if the unincorporated association were a person. However, an obligation that would otherwise be imposed on the association:\n (a) is imposed on each member of the association’s committee of management instead; but\n (b) may be discharged by any of the members.\n Application to RSE licensee that is a group of individual trustees\n (3) This Act applies to an RSE licensee that is a group of individual trustees as if the group were a person. However, an obligation that would otherwise be imposed on the group is imposed on each individual, but may be discharged by any of the individuals.\n Application to multiple trustees treated as single entity\n (4) Subsections (5), (6) and (7) apply if a trustee or trustees of a trust are treated during a period as constituting:\n (a) a single legal entity (the notional entity) under section 761FA of the Corporations Act 2001; or\n (b) a single person (also the notional entity) under section 15 of the National Consumer Credit Protection Act 2009.\n (5) This Act applies to the notional entity during the period as if the notional entity were a person, but with the changes set out in subsections (6) and (7).\n (6) During the period, or any part of the period, that the trust has 2 or more trustees, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on each trustee, but may be discharged by any of the trustees.\n (7) During the period, or any part of the period, that the trust has only one trustee, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on that single trustee.\n\n#### 19 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed by the regulations; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Imposition of levy—main cases","content":"#### 8 Imposition of levy—main cases\n\n Annual levy\n (1) Levy is imposed on a person for the second levy period or a later levy period if, at any time during the qualifying period for the levy period:\n (a) the person is a member of a sub‑sector of a kind prescribed by the regulations for the purposes of this paragraph; and\n (b) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n Further levy for a sub‑sector—total levy does not exceed the sub‑sector levy cap\n (2) Further levy is imposed on the person for the levy period and the sub‑sector if:\n (a) immediately before a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector, the sub‑sector levy cap for the levy period and the sub‑sector has not been exceeded; and\n (b) the revised claims, fees and costs estimate specifies that further levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: The total amount of further levy imposed under this subsection cannot cause the sub‑sector levy cap to be exceeded, but can be imposed up to that cap (see subsection 13(2)).\n\n> Note 2: Alternatively, further levy may be imposed by subsection (3) or section 9 if the Minister acts under section 1069H of the Corporations Act 2001. This alternative levy can be based on the full revised claims, fees and costs estimate and cause the sub‑sector levy cap to be exceeded.\n\n> Note 3: Further levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector.\n\n Special levy for a sub‑sector—total levy exceeds the sub‑sector levy cap\n (3) Levy is imposed on the person for the levy period if both of the following have come into force for the levy period and the sub‑sector:\n (a) a revised claims, fees and costs estimate;\n (b) as a result of that estimate, a determination under section 1069H of the Corporations Act 2001 that, under subsection 1069H(4) of that Act, specifies that levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across just this sub‑sector when the revised claims, fees and costs estimate causes the sub‑sector levy cap to be exceeded.\n\n> Note 2: Special levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period and the sub‑sector.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Imposition of special levy—revised estimate of claims, fees and costs exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.","content":"#### 9 Imposition of special levy—revised estimate of claims, fees and costs exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n Levy is imposed on a person for the second levy period or a later levy period if:\n (a) a revised claims, fees and costs estimate comes into force for the levy period and a sub‑sector; and\n (b) as a result of that estimate, a determination comes into force under section 1069H of the Corporations Act 2001 that, under subsection 1069H(5) of that Act, specifies that levy needs to be imposed by this section:\n (i) for the levy period; and\n (ii) across all members of one or more specified sub‑sectors (which need not include the sub‑sector to which that estimate relates); and\n (c) at any time during the levy period or the previous levy period, the person is a member of one of the sub‑sectors specified in that determination; and\n (d) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across one or more other sub‑sectors to deal with a revised claims, fees and costs estimate for a particular sub‑sector that causes the sub‑sector levy cap for that sub‑sector to be exceeded.\n\n> Note 2: Such a determination could be made instead of a determination that, under subsection 1069H(4) of the Corporations Act 2001, specifies that special levy needs only to be imposed by subsection 8(3) of this Act for the levy period and the sub‑sector to which the revised claims, fees and costs estimate relates.\n\n> Note 3: Special levy can be imposed under this section more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Imposition of levy—unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day","content":"#### 10 Imposition of levy—unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n Levy is imposed on a person for the first levy period if:\n (a) at any time during the 12 months before the start of the first levy period, the person is a body regulated by APRA, other than:\n (i) a private health insurer covered by paragraph 3(2)(ea) of the Australian Prudential Regulation Authority Act 1998; or\n (ii) a trustee covered by paragraph 3(2)(f) of that Act; and\n (b) section 3C of the Taxation Administration Act 1953 applies to the person for the 2021‑2022 income year; and\n (c) the person’s total income for that income year (for the purposes of paragraph 3C(3)(b) of that Act) is one of the 10 highest of all the persons to whom both paragraphs (a) and (b) apply.","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"By whom levy payable","content":"#### 11 By whom levy payable\n\n Levy imposed on a person for a levy period is payable by the person.","sortOrder":13},{"sectionNumber":"Division 2","sectionType":"division","heading":"Amount of levy","content":"An Act to impose levy on persons relating to the AFCA scheme, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act is the Financial Services Compensation Scheme of Last Resort Levy Act 2023.\n\n#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this Act

The day after this Act receives the Royal Assent.

4 July 2023

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.\n\n#### 3 Act to bind Crown\n\n This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not bind the Crown in right of the Commonwealth.\n\n#### 4 Extension to external Territories\n\n This Act extends to the external Territories.\n\n#### 5 Extra‑territorial application\n\n This Act extends to acts, omissions, matters and things outside Australia.\n\n#### 6 Act does not impose levy on property of a State\n\n (1) This Act does not impose a tax on property of any kind belonging to a State.\n (2) In this section:\n\n> property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.\n\n#### 7 Definitions\n\n (1) In this Act:\n\n> accumulation recovery day has the same meaning as in the Corporations Act 2001.\n\n> AFCA (short for the Australian Financial Complaints Authority) has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s accumulated unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> AFCA scheme has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> amount includes a nil amount.\n\n> ASIC means the Australian Securities and Investments Commission.\n\n> body regulated by APRA has the same meaning as in the Australian Prudential Regulation Authority Act 1998.\n\n> claims, fees and costs estimate means:\n\n (a) an initial claims, fees and costs estimate; or\n (b) a revised claims, fees and costs estimate.\n\n> Commissioner means the Commissioner of Taxation.\n\n> first levy period means the period that:\n\n (a) starts on the day specified in a determination in force under subsection (2); and\n (b) ends on 30 June 2024.\n\n> income year has the same meaning as in the Income Tax Assessment Act 1997.\n\n> initial claims, fees and costs estimate, for a levy period and a sub‑sector, means an estimate determined under subsection 9(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> levy means levy imposed by this Act (see Division 1 of Part 2).\n\n> Levy Collection Act means the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.\n\n> levy period means:\n\n (a) the first levy period; or\n (b) a financial year starting after the end of the first levy period.\n\n> person has a meaning affected by section 18.\n\n> qualifying period, for a levy period, means the 12‑month period starting 24 months before the start of the levy period.\n\n> revised claims, fees and costs estimate, for a levy period and a sub‑sector, means a revised estimate determined under subsection 10(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> scheme levy cap means the cap specified in subsection 17(1).\n\n> sub‑sector has the same meaning as in the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n> Note: A person may form part of more than one sub‑sector.\n\n> sub‑sector levy cap, for a levy period and a sub‑sector, means the cap worked out under subsection 17(2) for the levy period and the sub‑sector.\n\n (2) The Minister may, by notifiable instrument, determine a specified day to be the day that the first levy period starts (which must not be before the day the determination commences).\n\n## Part 2—Levy\n\n### Division 1—Imposition of levy\n\n#### 8 Imposition of levy—main cases\n\n Annual levy\n (1) Levy is imposed on a person for the second levy period or a later levy period if, at any time during the qualifying period for the levy period:\n (a) the person is a member of a sub‑sector of a kind prescribed by the regulations for the purposes of this paragraph; and\n (b) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n Further levy for a sub‑sector—total levy does not exceed the sub‑sector levy cap\n (2) Further levy is imposed on the person for the levy period and the sub‑sector if:\n (a) immediately before a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector, the sub‑sector levy cap for the levy period and the sub‑sector has not been exceeded; and\n (b) the revised claims, fees and costs estimate specifies that further levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: The total amount of further levy imposed under this subsection cannot cause the sub‑sector levy cap to be exceeded, but can be imposed up to that cap (see subsection 13(2)).\n\n> Note 2: Alternatively, further levy may be imposed by subsection (3) or section 9 if the Minister acts under section 1069H of the Corporations Act 2001. This alternative levy can be based on the full revised claims, fees and costs estimate and cause the sub‑sector levy cap to be exceeded.\n\n> Note 3: Further levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector.\n\n Special levy for a sub‑sector—total levy exceeds the sub‑sector levy cap\n (3) Levy is imposed on the person for the levy period if both of the following have come into force for the levy period and the sub‑sector:\n (a) a revised claims, fees and costs estimate;\n (b) as a result of that estimate, a determination under section 1069H of the Corporations Act 2001 that, under subsection 1069H(4) of that Act, specifies that levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across just this sub‑sector when the revised claims, fees and costs estimate causes the sub‑sector levy cap to be exceeded.\n\n> Note 2: Special levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period and the sub‑sector.\n\n#### 9 Imposition of special levy—revised estimate of claims, fees and costs exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n Levy is imposed on a person for the second levy period or a later levy period if:\n (a) a revised claims, fees and costs estimate comes into force for the levy period and a sub‑sector; and\n (b) as a result of that estimate, a determination comes into force under section 1069H of the Corporations Act 2001 that, under subsection 1069H(5) of that Act, specifies that levy needs to be imposed by this section:\n (i) for the levy period; and\n (ii) across all members of one or more specified sub‑sectors (which need not include the sub‑sector to which that estimate relates); and\n (c) at any time during the levy period or the previous levy period, the person is a member of one of the sub‑sectors specified in that determination; and\n (d) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across one or more other sub‑sectors to deal with a revised claims, fees and costs estimate for a particular sub‑sector that causes the sub‑sector levy cap for that sub‑sector to be exceeded.\n\n> Note 2: Such a determination could be made instead of a determination that, under subsection 1069H(4) of the Corporations Act 2001, specifies that special levy needs only to be imposed by subsection 8(3) of this Act for the levy period and the sub‑sector to which the revised claims, fees and costs estimate relates.\n\n> Note 3: Special levy can be imposed under this section more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period.\n\n#### 10 Imposition of levy—unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n Levy is imposed on a person for the first levy period if:\n (a) at any time during the 12 months before the start of the first levy period, the person is a body regulated by APRA, other than:\n (i) a private health insurer covered by paragraph 3(2)(ea) of the Australian Prudential Regulation Authority Act 1998; or\n (ii) a trustee covered by paragraph 3(2)(f) of that Act; and\n (b) section 3C of the Taxation Administration Act 1953 applies to the person for the 2021‑2022 income year; and\n (c) the person’s total income for that income year (for the purposes of paragraph 3C(3)(b) of that Act) is one of the 10 highest of all the persons to whom both paragraphs (a) and (b) apply.\n\n#### 11 By whom levy payable\n\n Levy imposed on a person for a levy period is payable by the person.\n\n### Division 2—Amount of levy\n\n#### 12 Amount of annual levy\n\n (1) The amount of levy imposed by subsection 8(1) on a person for a levy period and a sub‑sector is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of annual levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(1) across all members of a sub‑sector for a levy period:\n (a) does not exceed the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 13 Amount of further levy—total levy does not exceed the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(2) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector;\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out further amounts of levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(2) across all members of a sub‑sector for a levy period and a revised claims, fees and costs estimate:\n (a) does not exceed the difference between:\n (i) the revised claims, fees and costs estimate; and\n (ii) the total amount of levy paid that was earlier imposed by section 8 across all members of the sub‑sector for the levy period; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 14 Amount of special levy—total levy exceeds the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(3) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because the following have come into force for the levy period and the sub‑sector:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(3) across all members of the sub‑sector for the levy period:\n (a) does not exceed the total amount specified, under paragraph 1069H(4)(b) of the Corporations Act 2001, in the Minister’s determination; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 15 Amount of special levy—total levy exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n (1) The amount of levy imposed by section 9 on a person:\n (a) for a levy period; and\n (b) because the following have come into force for the levy period:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) An objective is that the total amount of levy imposed by section 9:\n (a) for the levy period; and\n (b) across all members of a sub‑sector specified, under paragraph 1069H(5)(b) of the Corporations Act 2001, in the Minister’s determination;\n does not exceed the total amount specified, under that paragraph, for that sub‑sector in the Minister’s determination.\n (3) Another objective is that the sum of the total amounts of levy imposed by section 9:\n (a) for the levy period; and\n (b) specified, under paragraph 1069H(5)(c) of the Corporations Act 2001, in the Minister’s determination;\n does not cause the scheme levy cap to be exceeded.\n Regulations\n (4) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsections (2) and (3).\n (5) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 16 Amount of levy for unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n (1) The amount of levy imposed by section 10 on a person for the first levy period is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n\n> Note: This levy is payable in 2 equal instalments (see subsection 13(1) of the Levy Collection Act).\n\n Objectives for working out amounts of levy\n (2) The objectives are that the total amount of levy imposed by section 10 across all persons for the first levy period:\n (a) does not exceed the estimate determined under section 11 of the Levy Collection Act for the first levy period; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for the first levy period may have regard to a determination under section 11 of the Levy Collection Act for the first levy period.\n\n### Division 3—Caps on levy\n\n#### 17 Total caps on levy\n\n Scheme levy cap\n (1) The total amount of levy that may be imposed for any levy period across all persons across all sub‑sectors must not exceed $250 million.\n\n> Note: This cap is the absolute maximum amount of levy that may be imposed for a levy period across all persons for all sub‑sectors.\n\n Sub‑sector levy cap\n (2) The total amount of levy that may be imposed for the second levy period, or a later levy period, across all members of a particular sub‑sector must not exceed the cap (the sub‑sector levy cap) that is the highest of the following:\n (a) $20 million;\n (b) the amount prescribed (or the amount worked out in accordance with a method prescribed) for the levy period and the sub‑sector by the regulations for the purposes of this paragraph;\n unless the cap is exceeded (or further exceeded) because of a determination under section 1069H of the Corporations Act 2001 for the levy period and a sub‑sector specifying that levy needs to be imposed by subsection 8(3) or section 9 of this Act.\n\n> Note 1: Unless the Minister makes such a determination, this sub‑sector levy cap is an absolute maximum amount of levy that may be imposed for a levy period across all members of the sub‑sector.\n\n> Note 2: Subsection 8(3) and section 9 of this Act are about special levy. The Minister’s determination can specify that special levy needs to be imposed by section 9 on either or both of the following:\n\n (a) all members of the sub‑sector;\n (b) all members of one or more other sub‑sectors.\n\n> Note 3: Special levy imposed by section 9 of this Act on members of a sub‑sector only counts towards the sub‑sector levy cap for that sub‑sector.\n\n (3) Subsection (2) has effect subject to subsection (1).\n\n## Part 3—Other matters\n\n#### 18 Treatment of partnerships, unincorporated associations and multiple trustees\n\n Application to partnerships\n (1) This Act applies to a partnership as if the partnership were a person. However, obligations that would be imposed on the partnership are imposed instead on each partner, but may be discharged by any of the partners.\n Application to unincorporated associations\n (2) This Act applies to an unincorporated association as if the unincorporated association were a person. However, an obligation that would otherwise be imposed on the association:\n (a) is imposed on each member of the association’s committee of management instead; but\n (b) may be discharged by any of the members.\n Application to RSE licensee that is a group of individual trustees\n (3) This Act applies to an RSE licensee that is a group of individual trustees as if the group were a person. However, an obligation that would otherwise be imposed on the group is imposed on each individual, but may be discharged by any of the individuals.\n Application to multiple trustees treated as single entity\n (4) Subsections (5), (6) and (7) apply if a trustee or trustees of a trust are treated during a period as constituting:\n (a) a single legal entity (the notional entity) under section 761FA of the Corporations Act 2001; or\n (b) a single person (also the notional entity) under section 15 of the National Consumer Credit Protection Act 2009.\n (5) This Act applies to the notional entity during the period as if the notional entity were a person, but with the changes set out in subsections (6) and (7).\n (6) During the period, or any part of the period, that the trust has 2 or more trustees, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on each trustee, but may be discharged by any of the trustees.\n (7) During the period, or any part of the period, that the trust has only one trustee, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on that single trustee.\n\n#### 19 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed by the regulations; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":14},{"sectionNumber":"12","sectionType":"section","heading":"Amount of annual levy","content":"#### 12 Amount of annual levy\n\n (1) The amount of levy imposed by subsection 8(1) on a person for a levy period and a sub‑sector is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of annual levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(1) across all members of a sub‑sector for a levy period:\n (a) does not exceed the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.","sortOrder":15},{"sectionNumber":"13","sectionType":"section","heading":"Amount of further levy—total levy does not exceed the sub‑sector levy cap","content":"#### 13 Amount of further levy—total levy does not exceed the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(2) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector;\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out further amounts of levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(2) across all members of a sub‑sector for a levy period and a revised claims, fees and costs estimate:\n (a) does not exceed the difference between:\n (i) the revised claims, fees and costs estimate; and\n (ii) the total amount of levy paid that was earlier imposed by section 8 across all members of the sub‑sector for the levy period; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.","sortOrder":16},{"sectionNumber":"14","sectionType":"section","heading":"Amount of special levy—total levy exceeds the sub‑sector levy cap","content":"#### 14 Amount of special levy—total levy exceeds the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(3) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because the following have come into force for the levy period and the sub‑sector:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(3) across all members of the sub‑sector for the levy period:\n (a) does not exceed the total amount specified, under paragraph 1069H(4)(b) of the Corporations Act 2001, in the Minister’s determination; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.","sortOrder":17},{"sectionNumber":"15","sectionType":"section","heading":"Amount of special levy—total levy exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.","content":"#### 15 Amount of special levy—total levy exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n (1) The amount of levy imposed by section 9 on a person:\n (a) for a levy period; and\n (b) because the following have come into force for the levy period:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) An objective is that the total amount of levy imposed by section 9:\n (a) for the levy period; and\n (b) across all members of a sub‑sector specified, under paragraph 1069H(5)(b) of the Corporations Act 2001, in the Minister’s determination;\n does not exceed the total amount specified, under that paragraph, for that sub‑sector in the Minister’s determination.\n (3) Another objective is that the sum of the total amounts of levy imposed by section 9:\n (a) for the levy period; and\n (b) specified, under paragraph 1069H(5)(c) of the Corporations Act 2001, in the Minister’s determination;\n does not cause the scheme levy cap to be exceeded.\n Regulations\n (4) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsections (2) and (3).\n (5) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.","sortOrder":18},{"sectionNumber":"16","sectionType":"section","heading":"Amount of levy for unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day","content":"#### 16 Amount of levy for unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n (1) The amount of levy imposed by section 10 on a person for the first levy period is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n\n> Note: This levy is payable in 2 equal instalments (see subsection 13(1) of the Levy Collection Act).\n\n Objectives for working out amounts of levy\n (2) The objectives are that the total amount of levy imposed by section 10 across all persons for the first levy period:\n (a) does not exceed the estimate determined under section 11 of the Levy Collection Act for the first levy period; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for the first levy period may have regard to a determination under section 11 of the Levy Collection Act for the first levy period.","sortOrder":19},{"sectionNumber":"Division 3","sectionType":"division","heading":"Caps on levy","content":"An Act to impose levy on persons relating to the AFCA scheme, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act is the Financial Services Compensation Scheme of Last Resort Levy Act 2023.\n\n#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this Act

The day after this Act receives the Royal Assent.

4 July 2023

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.\n\n#### 3 Act to bind Crown\n\n This Act binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not bind the Crown in right of the Commonwealth.\n\n#### 4 Extension to external Territories\n\n This Act extends to the external Territories.\n\n#### 5 Extra‑territorial application\n\n This Act extends to acts, omissions, matters and things outside Australia.\n\n#### 6 Act does not impose levy on property of a State\n\n (1) This Act does not impose a tax on property of any kind belonging to a State.\n (2) In this section:\n\n> property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.\n\n#### 7 Definitions\n\n (1) In this Act:\n\n> accumulation recovery day has the same meaning as in the Corporations Act 2001.\n\n> AFCA (short for the Australian Financial Complaints Authority) has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s accumulated unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> AFCA scheme has the same meaning as in the Corporations Act 2001.\n\n> AFCA’s unpaid fees has the same meaning as in the Corporations Act 2001.\n\n> amount includes a nil amount.\n\n> ASIC means the Australian Securities and Investments Commission.\n\n> body regulated by APRA has the same meaning as in the Australian Prudential Regulation Authority Act 1998.\n\n> claims, fees and costs estimate means:\n\n (a) an initial claims, fees and costs estimate; or\n (b) a revised claims, fees and costs estimate.\n\n> Commissioner means the Commissioner of Taxation.\n\n> first levy period means the period that:\n\n (a) starts on the day specified in a determination in force under subsection (2); and\n (b) ends on 30 June 2024.\n\n> income year has the same meaning as in the Income Tax Assessment Act 1997.\n\n> initial claims, fees and costs estimate, for a levy period and a sub‑sector, means an estimate determined under subsection 9(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> levy means levy imposed by this Act (see Division 1 of Part 2).\n\n> Levy Collection Act means the Financial Services Compensation Scheme of Last Resort Levy (Collection) Act 2023.\n\n> levy period means:\n\n (a) the first levy period; or\n (b) a financial year starting after the end of the first levy period.\n\n> person has a meaning affected by section 18.\n\n> qualifying period, for a levy period, means the 12‑month period starting 24 months before the start of the levy period.\n\n> revised claims, fees and costs estimate, for a levy period and a sub‑sector, means a revised estimate determined under subsection 10(1) of the Levy Collection Act for the levy period and the sub‑sector.\n\n> scheme levy cap means the cap specified in subsection 17(1).\n\n> sub‑sector has the same meaning as in the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n> Note: A person may form part of more than one sub‑sector.\n\n> sub‑sector levy cap, for a levy period and a sub‑sector, means the cap worked out under subsection 17(2) for the levy period and the sub‑sector.\n\n (2) The Minister may, by notifiable instrument, determine a specified day to be the day that the first levy period starts (which must not be before the day the determination commences).\n\n## Part 2—Levy\n\n### Division 1—Imposition of levy\n\n#### 8 Imposition of levy—main cases\n\n Annual levy\n (1) Levy is imposed on a person for the second levy period or a later levy period if, at any time during the qualifying period for the levy period:\n (a) the person is a member of a sub‑sector of a kind prescribed by the regulations for the purposes of this paragraph; and\n (b) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n Further levy for a sub‑sector—total levy does not exceed the sub‑sector levy cap\n (2) Further levy is imposed on the person for the levy period and the sub‑sector if:\n (a) immediately before a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector, the sub‑sector levy cap for the levy period and the sub‑sector has not been exceeded; and\n (b) the revised claims, fees and costs estimate specifies that further levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: The total amount of further levy imposed under this subsection cannot cause the sub‑sector levy cap to be exceeded, but can be imposed up to that cap (see subsection 13(2)).\n\n> Note 2: Alternatively, further levy may be imposed by subsection (3) or section 9 if the Minister acts under section 1069H of the Corporations Act 2001. This alternative levy can be based on the full revised claims, fees and costs estimate and cause the sub‑sector levy cap to be exceeded.\n\n> Note 3: Further levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector.\n\n Special levy for a sub‑sector—total levy exceeds the sub‑sector levy cap\n (3) Levy is imposed on the person for the levy period if both of the following have come into force for the levy period and the sub‑sector:\n (a) a revised claims, fees and costs estimate;\n (b) as a result of that estimate, a determination under section 1069H of the Corporations Act 2001 that, under subsection 1069H(4) of that Act, specifies that levy needs to be imposed by this subsection for the levy period and the sub‑sector.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across just this sub‑sector when the revised claims, fees and costs estimate causes the sub‑sector levy cap to be exceeded.\n\n> Note 2: Special levy can be imposed under this subsection more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period and the sub‑sector.\n\n#### 9 Imposition of special levy—revised estimate of claims, fees and costs exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n Levy is imposed on a person for the second levy period or a later levy period if:\n (a) a revised claims, fees and costs estimate comes into force for the levy period and a sub‑sector; and\n (b) as a result of that estimate, a determination comes into force under section 1069H of the Corporations Act 2001 that, under subsection 1069H(5) of that Act, specifies that levy needs to be imposed by this section:\n (i) for the levy period; and\n (ii) across all members of one or more specified sub‑sectors (which need not include the sub‑sector to which that estimate relates); and\n (c) at any time during the levy period or the previous levy period, the person is a member of one of the sub‑sectors specified in that determination; and\n (d) the general conditions (if any) prescribed by the regulations for the purposes of this paragraph are met for the person and the levy period.\n\n> Note 1: Such a determination will only come into force if the Minister decides that special levy needs to be imposed across one or more other sub‑sectors to deal with a revised claims, fees and costs estimate for a particular sub‑sector that causes the sub‑sector levy cap for that sub‑sector to be exceeded.\n\n> Note 2: Such a determination could be made instead of a determination that, under subsection 1069H(4) of the Corporations Act 2001, specifies that special levy needs only to be imposed by subsection 8(3) of this Act for the levy period and the sub‑sector to which the revised claims, fees and costs estimate relates.\n\n> Note 3: Special levy can be imposed under this section more than once for the levy period and the sub‑sector if more than one of these estimates, and determinations, come into force for the levy period.\n\n#### 10 Imposition of levy—unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n Levy is imposed on a person for the first levy period if:\n (a) at any time during the 12 months before the start of the first levy period, the person is a body regulated by APRA, other than:\n (i) a private health insurer covered by paragraph 3(2)(ea) of the Australian Prudential Regulation Authority Act 1998; or\n (ii) a trustee covered by paragraph 3(2)(f) of that Act; and\n (b) section 3C of the Taxation Administration Act 1953 applies to the person for the 2021‑2022 income year; and\n (c) the person’s total income for that income year (for the purposes of paragraph 3C(3)(b) of that Act) is one of the 10 highest of all the persons to whom both paragraphs (a) and (b) apply.\n\n#### 11 By whom levy payable\n\n Levy imposed on a person for a levy period is payable by the person.\n\n### Division 2—Amount of levy\n\n#### 12 Amount of annual levy\n\n (1) The amount of levy imposed by subsection 8(1) on a person for a levy period and a sub‑sector is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of annual levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(1) across all members of a sub‑sector for a levy period:\n (a) does not exceed the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the initial claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 13 Amount of further levy—total levy does not exceed the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(2) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because a revised claims, fees and costs estimate comes into force for the levy period and the sub‑sector;\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out further amounts of levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(2) across all members of a sub‑sector for a levy period and a revised claims, fees and costs estimate:\n (a) does not exceed the difference between:\n (i) the revised claims, fees and costs estimate; and\n (ii) the total amount of levy paid that was earlier imposed by section 8 across all members of the sub‑sector for the levy period; and\n (b) does not cause the sub‑sector levy cap for the levy period and the sub‑sector to be exceeded; and\n (c) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 14 Amount of special levy—total levy exceeds the sub‑sector levy cap\n\n (1) The amount of levy imposed by subsection 8(3) on a person:\n (a) for a levy period and a sub‑sector; and\n (b) because the following have come into force for the levy period and the sub‑sector:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) The objectives are that the total amount of levy imposed by subsection 8(3) across all members of the sub‑sector for the levy period:\n (a) does not exceed the total amount specified, under paragraph 1069H(4)(b) of the Corporations Act 2001, in the Minister’s determination; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate for the levy period and the sub‑sector; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 15 Amount of special levy—total levy exceeds the sub‑sector levy cap and is to be spread across several sub‑sectors etc.\n\n (1) The amount of levy imposed by section 9 on a person:\n (a) for a levy period; and\n (b) because the following have come into force for the levy period:\n (i) a revised claims, fees and costs estimate;\n (ii) a determination under section 1069H of the Corporations Act 2001 (the Minister’s determination);\n is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n Objectives for working out amounts of special levy\n (2) An objective is that the total amount of levy imposed by section 9:\n (a) for the levy period; and\n (b) across all members of a sub‑sector specified, under paragraph 1069H(5)(b) of the Corporations Act 2001, in the Minister’s determination;\n does not exceed the total amount specified, under that paragraph, for that sub‑sector in the Minister’s determination.\n (3) Another objective is that the sum of the total amounts of levy imposed by section 9:\n (a) for the levy period; and\n (b) specified, under paragraph 1069H(5)(c) of the Corporations Act 2001, in the Minister’s determination;\n does not cause the scheme levy cap to be exceeded.\n Regulations\n (4) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsections (2) and (3).\n (5) Without limiting subsection (1), the method prescribed by the regulations for a levy period and a sub‑sector may have regard to:\n (a) the revised claims, fees and costs estimate; and\n (b) the Minister’s determination; and\n (c) one or more determinations by ASIC under regulations made for the purposes of section 9 of the ASIC Supervisory Cost Recovery Levy Act 2017.\n\n#### 16 Amount of levy for unpaid claims, and AFCA’s unpaid fees, for complaints given to AFCA before the accumulation recovery day\n\n (1) The amount of levy imposed by section 10 on a person for the first levy period is the amount worked out in accordance with a method prescribed by the regulations for the purposes of this subsection.\n\n> Note: This levy is payable in 2 equal instalments (see subsection 13(1) of the Levy Collection Act).\n\n Objectives for working out amounts of levy\n (2) The objectives are that the total amount of levy imposed by section 10 across all persons for the first levy period:\n (a) does not exceed the estimate determined under section 11 of the Levy Collection Act for the first levy period; and\n (b) does not cause the scheme levy cap to be exceeded.\n Regulations\n (3) Before the Governor‑General makes regulations for the purposes of subsection (1), the Minister must be satisfied that the regulations are consistent with the objectives stated in subsection (2).\n (4) Without limiting subsection (1), the method prescribed by the regulations for the first levy period may have regard to a determination under section 11 of the Levy Collection Act for the first levy period.\n\n### Division 3—Caps on levy\n\n#### 17 Total caps on levy\n\n Scheme levy cap\n (1) The total amount of levy that may be imposed for any levy period across all persons across all sub‑sectors must not exceed $250 million.\n\n> Note: This cap is the absolute maximum amount of levy that may be imposed for a levy period across all persons for all sub‑sectors.\n\n Sub‑sector levy cap\n (2) The total amount of levy that may be imposed for the second levy period, or a later levy period, across all members of a particular sub‑sector must not exceed the cap (the sub‑sector levy cap) that is the highest of the following:\n (a) $20 million;\n (b) the amount prescribed (or the amount worked out in accordance with a method prescribed) for the levy period and the sub‑sector by the regulations for the purposes of this paragraph;\n unless the cap is exceeded (or further exceeded) because of a determination under section 1069H of the Corporations Act 2001 for the levy period and a sub‑sector specifying that levy needs to be imposed by subsection 8(3) or section 9 of this Act.\n\n> Note 1: Unless the Minister makes such a determination, this sub‑sector levy cap is an absolute maximum amount of levy that may be imposed for a levy period across all members of the sub‑sector.\n\n> Note 2: Subsection 8(3) and section 9 of this Act are about special levy. The Minister’s determination can specify that special levy needs to be imposed by section 9 on either or both of the following:\n\n (a) all members of the sub‑sector;\n (b) all members of one or more other sub‑sectors.\n\n> Note 3: Special levy imposed by section 9 of this Act on members of a sub‑sector only counts towards the sub‑sector levy cap for that sub‑sector.\n\n (3) Subsection (2) has effect subject to subsection (1).\n\n## Part 3—Other matters\n\n#### 18 Treatment of partnerships, unincorporated associations and multiple trustees\n\n Application to partnerships\n (1) This Act applies to a partnership as if the partnership were a person. However, obligations that would be imposed on the partnership are imposed instead on each partner, but may be discharged by any of the partners.\n Application to unincorporated associations\n (2) This Act applies to an unincorporated association as if the unincorporated association were a person. However, an obligation that would otherwise be imposed on the association:\n (a) is imposed on each member of the association’s committee of management instead; but\n (b) may be discharged by any of the members.\n Application to RSE licensee that is a group of individual trustees\n (3) This Act applies to an RSE licensee that is a group of individual trustees as if the group were a person. However, an obligation that would otherwise be imposed on the group is imposed on each individual, but may be discharged by any of the individuals.\n Application to multiple trustees treated as single entity\n (4) Subsections (5), (6) and (7) apply if a trustee or trustees of a trust are treated during a period as constituting:\n (a) a single legal entity (the notional entity) under section 761FA of the Corporations Act 2001; or\n (b) a single person (also the notional entity) under section 15 of the National Consumer Credit Protection Act 2009.\n (5) This Act applies to the notional entity during the period as if the notional entity were a person, but with the changes set out in subsections (6) and (7).\n (6) During the period, or any part of the period, that the trust has 2 or more trustees, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on each trustee, but may be discharged by any of the trustees.\n (7) During the period, or any part of the period, that the trust has only one trustee, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on that single trustee.\n\n#### 19 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed by the regulations; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":20},{"sectionNumber":"17","sectionType":"section","heading":"Total caps on levy","content":"#### 17 Total caps on levy\n\n Scheme levy cap\n (1) The total amount of levy that may be imposed for any levy period across all persons across all sub‑sectors must not exceed $250 million.\n\n> Note: This cap is the absolute maximum amount of levy that may be imposed for a levy period across all persons for all sub‑sectors.\n\n Sub‑sector levy cap\n (2) The total amount of levy that may be imposed for the second levy period, or a later levy period, across all members of a particular sub‑sector must not exceed the cap (the sub‑sector levy cap) that is the highest of the following:\n (a) $20 million;\n (b) the amount prescribed (or the amount worked out in accordance with a method prescribed) for the levy period and the sub‑sector by the regulations for the purposes of this paragraph;\n unless the cap is exceeded (or further exceeded) because of a determination under section 1069H of the Corporations Act 2001 for the levy period and a sub‑sector specifying that levy needs to be imposed by subsection 8(3) or section 9 of this Act.\n\n> Note 1: Unless the Minister makes such a determination, this sub‑sector levy cap is an absolute maximum amount of levy that may be imposed for a levy period across all members of the sub‑sector.\n\n> Note 2: Subsection 8(3) and section 9 of this Act are about special levy. The Minister’s determination can specify that special levy needs to be imposed by section 9 on either or both of the following:\n\n (a) all members of the sub‑sector;\n (b) all members of one or more other sub‑sectors.\n\n> Note 3: Special levy imposed by section 9 of this Act on members of a sub‑sector only counts towards the sub‑sector levy cap for that sub‑sector.\n\n (3) Subsection (2) has effect subject to subsection (1).","sortOrder":21},{"sectionNumber":"Part 3","sectionType":"part","heading":"Other matters","content":"## Part 3—Other matters","sortOrder":22},{"sectionNumber":"18","sectionType":"section","heading":"Treatment of partnerships, unincorporated associations and multiple trustees","content":"#### 18 Treatment of partnerships, unincorporated associations and multiple trustees\n\n Application to partnerships\n (1) This Act applies to a partnership as if the partnership were a person. However, obligations that would be imposed on the partnership are imposed instead on each partner, but may be discharged by any of the partners.\n Application to unincorporated associations\n (2) This Act applies to an unincorporated association as if the unincorporated association were a person. However, an obligation that would otherwise be imposed on the association:\n (a) is imposed on each member of the association’s committee of management instead; but\n (b) may be discharged by any of the members.\n Application to RSE licensee that is a group of individual trustees\n (3) This Act applies to an RSE licensee that is a group of individual trustees as if the group were a person. However, an obligation that would otherwise be imposed on the group is imposed on each individual, but may be discharged by any of the individuals.\n Application to multiple trustees treated as single entity\n (4) Subsections (5), (6) and (7) apply if a trustee or trustees of a trust are treated during a period as constituting:\n (a) a single legal entity (the notional entity) under section 761FA of the Corporations Act 2001; or\n (b) a single person (also the notional entity) under section 15 of the National Consumer Credit Protection Act 2009.\n (5) This Act applies to the notional entity during the period as if the notional entity were a person, but with the changes set out in subsections (6) and (7).\n (6) During the period, or any part of the period, that the trust has 2 or more trustees, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on each trustee, but may be discharged by any of the trustees.\n (7) During the period, or any part of the period, that the trust has only one trustee, an obligation that would otherwise be imposed on the notional entity by this Act is imposed instead on that single trustee.","sortOrder":23},{"sectionNumber":"19","sectionType":"section","heading":"Regulations","content":"#### 19 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed by the regulations; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":24}],"analysis":{"summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"The Act remains focused on its stated purpose: imposing a levy on financial services industry participants to fund the Compensation Scheme of Last Resort. The inclusion of a special first-period levy on the 10 largest APRA-regulated institutions to cover historical unpaid complaints represents a transitional mechanism consistent with establishing the scheme, rather than a departure from original intent. The extensive delegation to regulations for calculating levy amounts is a design choice, not a scope change."},"complexity_factors":["Multiple distinct levy types (annual levy, further levy, special levy within sub-sector, special levy spread across sub-sectors, and first-period historical levy) each with separate triggering conditions and calculation methods","Heavy reliance on cross-references to other legislation — Corporations Act 2001 (especially s.1069H), APRA Act, ASIC Supervisory Cost Recovery Levy Act 2017, Taxation Administration Act 1953, National Consumer Credit Protection Act 2009 — making the Act incomprehensible without those companion statutes","Levy amounts are not specified in the Act itself but delegated to regulations, meaning the full picture requires reading subordinate legislation","Layered cap system: sub-sector caps that can be overridden by Ministerial determination, all subject to an overarching scheme cap, with different rules for when caps can be breached","Complex temporal qualifying rules (liability assessed based on membership status up to 24 months before the levy period)","Sophisticated treatment of non-standard legal entities: partnerships, unincorporated associations, RSE licensees as groups of trustees, and multiple trustees treated as notional single entities under different statutory frameworks","Dual-function Act structure (imposing levy) that operates alongside a companion Collection Act, splitting the operative scheme across two pieces of legislation","Significant ministerial discretion (e.g., determining when the first levy period starts, approving special levy determinations) that affects legal obligations but is not fully defined on the face of the Act","The document itself is formatted with significant repetition of the full Act text under each heading, creating structural confusion for the reader"],"plain_english_summary":"This Act creates a compulsory levy on financial services firms to fund a Compensation Scheme of Last Resort (CSLR) that pays customers when firms cannot meet compensation obligations. Liability is industry‑wide (based on membership two years before a levy period) so firms can’t evade charges; for the initial period only the 10 largest APRA‑regulated institutions pay to cover historical unpaid complaints.\n\nLevy amounts are set by regulation but capped at $250 million overall and normally $20 million per sub‑sector. The aim: industry, not taxpayers, funds consumer compensation."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"The text defines a new, self‑contained levy regime: who is liable, levy triggers, calculation to be prescribed by regulation, caps and special first‑levy rules. Nothing in the provided text indicates the Act narrows or broadens an earlier stated scope; it consistently frames scope (extra‑territorial reach, Crown and State exemptions, treatments for partnerships/trustees) within the Act itself."},"complexity_factors":["Multiple levy types and conditional triggers (annual, further, special; ss 8–10) increase conditional complexity.","Interlocking caps and hierarchies ($250m scheme cap; sub‑sector caps with $20m floor or regulatory amount; s17) create arithmetic and allocation edge cases.","Delegation of core calculation methods to regulations (ss 12(1), 13(1), 14(1), 15(1), 16(1)) means substantive detail is outside the Act.","Cross‑references to other instruments and statutes (Corporations Act s1069H, Levy Collection Act estimates and collection mechanics, ASIC determinations) multiply legal dependencies (definitions and ss 8–10, 12(4), 14(4), 16(4)).","Ministerial discretion via determinations under Corporations Act s1069H (ss 8(3), 9 and notes to s17) permits special levies that can exceed sub‑sector caps.","Targeted first levy criteria for large APRA‑regulated bodies (s10) use income‑ranking rules tied to Taxation Administration Act provisions, adding bespoke eligibility rules.","Wide application rules (extra‑territorial reach, binding State Crown but not Commonwealth; ss 3–5) and special treatments for partnerships, unincorporated associations and trustee groups (s18) complicate taxpayer identity and liability.","Reliance on AFCA estimates (initial and revised) and timing concepts (qualifying period, accumulation recovery day) introduces operational timing and forecasting risk (definitions, ss 7, 8–10, Levy Collection Act references).","Installment and collection mechanics are implemented in the separate Levy Collection Act, splitting legal responsibility across Acts and increasing compliance coordination needs."],"plain_english_summary":"Creates a statutory levy framework to fund a ‘scheme of last resort’ connected to AFCA by imposing levies on members of specified financial sub‑sectors. The Act sets out annual, further and special levies triggered by AFCA cost estimates and Minister/Corporations Act determinations, leaves calculation methods to regulations, and imposes hard caps ($250m scheme cap; $20m sub‑sector floor) plus a narrowly targeted first levy on certain large APRA‑regulated bodies. Who pays: the liable person (s11). Who decides: Minister, ASIC and regulations."},"issue_detection":{"absurdities":[{"type":"retroactive_impossibility","section":"7(1) - definition of 'qualifying period'","severity":"high","reasoning":"The qualifying period for the second levy period runs from 1 July 2022 to 30 June 2023 — entirely before the Act commenced on 4 July 2023. Persons subject to levy under s.8(1) for the second levy period are identified by their membership status during a period when the levy did not exist and could not have been anticipated under this Act. While retrospective levy is not constitutionally impermissible per se, it creates an impossible compliance scenario: a person cannot retroactively become or cease to be a sub-sector member to avoid liability.","confidence":0.82,"description":"The qualifying period for a levy period is defined as the 12-month period starting 24 months before the start of the levy period. For the second levy period (the first full financial year after the first levy period, i.e., FY2024-25 starting 1 July 2024), the qualifying period would be the 12 months starting 1 July 2022 — a period entirely in the past at the time the Act commenced (4 July 2023). A person must have been a sub-sector member during this already-elapsed period to be liable, meaning liability is determined by historical status the person could not have known would be relevant."},{"type":"impossible_compliance","section":"7(1) - definition of 'first levy period' read with s.7(2)","severity":"medium","reasoning":"There is no obligation on the Minister to make the determination. The definition of 'first levy period' in s.7(1) is entirely dependent on a discretionary notifiable instrument under s.7(2). If the Minister does not act, the 'first levy period' cannot exist as a defined period, rendering sections 10 and 16 (and associated Levy Collection Act provisions) inoperative. The Act provides no fallback or deemed start date.","confidence":0.85,"description":"The first levy period is defined as starting on a day specified in a Ministerial determination, but that day 'must not be before the day the determination commences.' The Act commenced 4 July 2023 and the first levy period ends 30 June 2024. If the Minister never makes the determination, the first levy period never starts, yet section 10 imposes levy specifically 'for the first levy period' and section 16 prescribes how that levy is calculated. The entire first-levy-period regime is contingent on a discretionary Ministerial act with no obligation to act."},{"type":"impossible_compliance","section":"10 - Imposition of levy for first levy period","severity":"medium","reasoning":"The provision selects exactly 'the 10 highest' without any tie-breaking mechanism. In a real-world scenario where two or more entities have identical total income and both compete for the 10th position, the legislation provides no basis for choosing between them. This creates an administrative impossibility that cannot be resolved from the face of the Act.","confidence":0.78,"description":"Levy under s.10 is imposed on only the 10 persons with the highest total income for the 2021-2022 income year among APRA-regulated bodies who also had a body-regulated-by-APRA connection in the 12 months before the first levy period. The number '10' is arbitrary and fixed in primary legislation, meaning that if two persons tie for 10th place, the provision provides no mechanism for resolution — it is literally impossible to determine which of two equally-ranked persons is the 10th highest."},{"type":"other","section":"8(1) - Annual levy applies only from second levy period","severity":"low","reasoning":"This appears intentional as a transitional measure but creates a structural gap: the broad industry membership that funds the scheme ongoing is not levied at all in the inaugural period. The scheme's compensation obligations begin immediately, but only 10 entities bear the levy burden initially. This may be a policy choice but is a notable structural oddity.","confidence":0.7,"description":"The main annual levy mechanism under s.8(1) explicitly applies only from 'the second levy period or a later levy period,' meaning there is no annual levy for the first levy period at all. The first levy period relies exclusively on s.10, which is limited to 10 large APRA-regulated bodies. All other financial services entities that are AFCA members are entirely exempt from levy in the first levy period, despite the scheme being fully operational from that period."},{"type":"other","section":"17(1) - Scheme levy cap as absolute maximum vs. s.17(3) subject to s.17(1)","severity":"low","reasoning":"While internally consistent at a mechanical level, the description of the scheme levy cap as 'absolute' in the Note to s.17(1) is misleading when read with the special levy provisions. Special levy can cause the aggregate to approach $250 million from a single sub-sector, potentially denying any levy capacity for all other sub-sectors in that levy period. This is not strictly a contradiction but is a structural absurdity in the scheme design.","confidence":0.65,"description":"Section 17(1) states the $250 million scheme levy cap 'must not exceed' that amount, and its Note describes it as 'the absolute maximum.' However, s.17(2) allows the sub-sector levy cap to be exceeded by special levy under s.8(3) or s.9, subject only to s.17(1). The interaction means the absolute cap can theoretically be reached solely through special levy on one or two sub-sectors, leaving other sub-sectors with zero remaining capacity. The 'absolute' cap is therefore not absolute in practical effect for individual sub-sectors — it merely caps the aggregate, which can be entirely consumed by a single sub-sector's special levy."},{"type":"other","section":"Entire Act - Massive structural duplication","severity":"high","reasoning":"The document as presented contains the full text of the Act repeated multiple times. If this reflects the enrolled Act, it would create genuine interpretive chaos as to which version of duplicated provisions governs. More likely this is a document rendering artefact, but as presented for analysis it is a critical flaw.","confidence":0.95,"description":"The entire text of the Act appears to be reproduced multiple times in the document provided. Parts 1, 2, and 3, and their Divisions and sections, are repeated verbatim at least three full times within the document, with each Division heading (e.g., 'Division 1 Imposition of levy', 'Division 2 Amount of levy', 'Division 3 Caps on levy') followed by a full re-statement of the entire Act from Part 1. This is a severe structural defect in the document, though it may be a rendering/formatting error rather than a drafting error in the enrolled Act."}],"contradictions":[{"severity":"low","section_a":"17(1) - Scheme levy cap described as absolute maximum in Note","section_b":"17(2) and 17(3) - Sub-sector levy cap subject to special levy exception","confidence":0.6,"description":"The Note to s.17(1) describes the $250 million scheme levy cap as 'the absolute maximum amount of levy that may be imposed for a levy period across all persons for all sub-sectors.' However, s.17(2) expressly permits the sub-sector levy cap to be 'exceeded (or further exceeded)' by reason of special levy determinations under s.1069H of the Corporations Act 2001, and s.17(3) provides s.17(2) has effect subject to s.17(1). The scheme levy cap can also theoretically be approached entirely by special levy from one sub-sector. The characterisation as 'absolute' sits in tension with the legislated exceptions to sub-sector caps that can drive aggregate levy toward (but not past) $250 million from a single source."},{"severity":"medium","section_a":"8(1) - Annual levy requires membership during 'qualifying period' (24 months before levy period)","section_b":"9(c) - Special levy requires membership 'at any time during the levy period or the previous levy period'","confidence":0.8,"description":"Annual levy under s.8(1) uses the qualifying period (12 months starting 24 months before the levy period) as the membership test window. Special levy under s.9 uses a different, broader and more current window: membership at any time during the levy period itself or the immediately previous levy period. This creates an inconsistency where a person who was a member 2 years ago (but not recently) pays annual levy, while a person who recently joined (but was not a member 2 years ago) may be subject to special levy under s.9 but not annual levy under s.8(1). The two regimes use incompatible temporal tests for the same concept of sub-sector membership."},{"severity":"medium","section_a":"8(2) - Further levy condition: sub-sector levy cap 'has not been exceeded' immediately before revised estimate comes into force","section_b":"8(3) - Special levy condition: triggered when revised estimate causes sub-sector levy cap to be exceeded","confidence":0.72,"description":"Subsections 8(2) and 8(3) are presented as mutually exclusive pathways — s.8(2) applies when the cap has not been exceeded, s.8(3) when it has. However, both subsections require the same trigger event (a revised claims, fees and costs estimate coming into force). The Act does not address the scenario where the revised estimate is so large that it simultaneously satisfies the condition in s.8(2) (cap not yet exceeded before the estimate) and triggers the Minister to make a s.1069H(4) determination (cap will be exceeded after the estimate). It is possible for both subsections to be engaged by the same estimate, potentially resulting in double-counting of levy obligations from a single triggering event."},{"severity":"medium","section_a":"12(2) - Objectives: annual levy must not exceed initial claims, fees and costs estimate","section_b":"13(2)(a) - Objectives: further levy must not exceed difference between revised estimate and levy already paid","confidence":0.75,"description":"The objectives in s.12(2) cap annual levy by reference to the initial estimate. The objectives in s.13(2)(a) cap further levy by reference to the revised estimate minus levy already paid. However, if the revised estimate is lower than the initial estimate (i.e., costs turn out to be less than anticipated), the formula in s.13(2)(a) could produce a negative number (revised estimate minus levy already paid = negative), which is not addressed. The definition of 'amount' in s.7(1) includes 'a nil amount' but does not expressly address negative amounts, leaving uncertainty about whether further levy could be zero (creating an overpayment situation with no refund mechanism in this Act)."}]},"kimi_summary":{"_metrics":{"completionTokens":621},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its stated purpose of establishing a levy-funded compensation scheme of last resort. The various levy mechanisms (annual, further, special) and spreading provisions are designed to achieve the core objective of ensuring AFCA can pay claims against failed firms, with the Ministerial override powers serving as a necessary flexibility mechanism rather than scope creep."},"complexity_factors":["Multiple levy types (annual, further, special) with different triggering conditions","Extensive cross-referencing to other legislation (Corporations Act 2001, ASIC Supervisory Cost Recovery Levy Act 2017, Levy Collection Act, Taxation Administration Act 1953)","Nested conditional logic: caps apply unless Minister makes determination under s 1069H of Corporations Act","Regulations-dependent framework — actual levy amounts and methods prescribed by delegated legislation","Dual-layer caps (scheme-wide $250m cap and sub-sector caps) with exception mechanisms","Complex entity treatment rules for partnerships, unincorporated associations, and multiple trustees","Temporal complexity with 'qualifying periods' starting 24 months before levy periods","Multiple defined terms imported by reference from other Acts"],"plain_english_summary":"This Act creates a **Compensation Scheme of Last Resort Levy** — essentially a financial safety net funded by industry contributions.\n\n**What it does:**\n- **Imposes a levy** (a type of tax) on financial services businesses to fund compensation payments when financial firms fail and can't pay what they owe to consumers\n- Creates a **backstop** for the Australian Financial Complaints Authority (AFCA) scheme, ensuring people can still get paid even when the firm they're complaining about is broke\n\n**Who pays:**\n- **First levy period:** The 10 largest APRA-regulated bodies (excluding private health insurers and certain trustees) — this covers historical unpaid claims and fees\n- **Ongoing levies:** Members of prescribed \"sub-sectors\" of the financial services industry (banks, insurers, super funds, etc.)\n\n**How the levy works:**\n- **Annual levy:** Regular yearly contributions based on estimates of likely claims\n- **Further levy:** Top-ups if initial estimates prove too low (but capped per sub-sector)\n- **Special levy:** Extra contributions if costs blow out significantly, potentially spreading costs across multiple industry sectors with Ministerial approval\n\n**Key limits:**\n- **$250 million** — absolute maximum total levy per year across all sectors\n- **$20 million** — default cap per sub-sector (unless regulations specify higher)\n- These caps can be exceeded only with a **Ministerial determination** under the Corporations Act\n\n**Why it matters:**\nThis protects ordinary Australians who have valid complaints against failed financial firms. Without it, people might win their case at AFCA but get nothing because the company has collapsed. The industry collectively funds this safety net, with larger players generally paying more."}},"importantCases":[],"_links":{"self":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-act-2023","history":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-act-2023/history","analysis":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-act-2023/analysis","conflicts":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-act-2023/conflicts","importantCases":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-act-2023/important-cases","documents":"/api/acts/financial-services-compensation-scheme-of-last-resort-levy-act-2023/documents"}}