{"id":"C2004A00319","name":"Retirement Savings Account Providers Supervisory Levy Imposition Act 1998","slug":"retirement-savings-account-providers-supervisory-levy-imposition-act-1998","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"59 of 1998","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":5959,"registerId":"commonwealth-C2004A00319-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  (1) This Act commences on the commencement of the Australian Prudential Regulation Authority Act 1998.\n  (2) If this Act commences during a financial year (but not on 1 July of that financial year), this Act has effect in relation to that financial year subject to the modifications specified in the regulations.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Act binds the Crown","content":"#### 3 Act binds the Crown\n\n  This Act binds the Crown in each of its capacities.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"External Territories","content":"#### 4 External Territories\n\n  This Act extends to each external Territory.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Definitions","content":"#### 5 Definitions\n\n  In this Act, unless the contrary intention appears:\n\n> indexation factor means the indexation factor calculated under section 8.\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.\n\n> levy imposition day, in relation to an RSA provider for a financial year, means:\n\n    (a) if the RSA provider is an RSA provider on 1 July of the financial year—that day; or\n    (b) in any other case—the day, during the financial year, on which the RSA provider becomes an RSA provider.\n\n> RSA provider has the same meaning as in the Retirement Savings Accounts Act 1997.\n\n> statutory upper limit means:\n\n    (a) for the financial year commencing on 1 July 2020—$10,000,000; or\n    (b) for a later financial year—the amount calculated by multiplying the statutory upper limit for the previous financial year by the indexation factor for the later financial year.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Imposition of RSA providers supervisory levy","content":"#### 6 Imposition of RSA providers supervisory levy\n\n  Levy payable in accordance with subsection 8(5) of the Financial Institutions Supervisory Levies Collection Act 1998 is imposed.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Amount of levy","content":"#### 7 Amount of levy\n\n  (1) Subject to subsection (2), the amount of levy payable by an RSA provider for a financial year is the sum of the restricted levy component and the unrestricted levy component for the financial year.\n\n> Note: For restricted levy component, see subsection (1A). For unrestricted levy component, see subsection (1B).\n\n  (1A) The restricted levy component for the financial year is:\n    (a) unless paragraph (b) or (c) applies—the amount that, for the financial year, is the restricted levy percentage of the RSA provider’s levy base; or\n    (b) if the amount worked out under paragraph (a) exceeds the maximum restricted levy amount for the financial year—the maximum restricted levy amount; or\n    (c) if the amount worked out under paragraph (a) is less than the minimum restricted levy amount for the financial year—the minimum restricted levy amount.\n\n> Note: The restricted levy percentage, maximum restricted levy amount, minimum restricted levy amount and the method of working out the RSA provider’s levy base are as determined under subsection (3).\n\n  (1B) The unrestricted levy component for the financial year is the amount that, for the financial year, is the unrestricted levy percentage of the RSA provider’s levy base.\n\n> Note: The unrestricted levy percentage is as determined under subsection (3).\n\n  (2) If the levy imposition day for the RSA provider for the financial year is later than 1 July in the financial year, the amount of levy payable by the RSA provider for the financial year is the amount worked out using the following formula:\n  ![](image.002.png)\n  (3) The Treasurer is, by legislative instrument, to determine:\n    (a) the maximum restricted levy amount for each financial year; and\n    (b) the minimum restricted levy amount for each financial year; and\n    (c) the restricted levy percentage for each financial year; and\n    (ca) the unrestricted levy percentage for each financial year; and\n    (d) how an RSA provider’s levy base is to be worked out.\n  (4) An amount determined under subsection (3) as the maximum restricted levy amount for a financial year must not exceed the statutory upper limit for the financial year.\n  (5) The Treasurer’s determination under paragraph (3)(d) of how an RSA provider’s levy base is to be worked out is to include, but is not limited to, a determination of the day as at which the RSA provider’s levy base is to be worked out. That day must be:\n    (a) if the RSA provider was an RSA provider at all times from and including 17 March of the previous financial year to and including the following 30 June—a day in the period from and including that 17 March to and including the following 14 April; or\n    (b) if the RSA provider was not an RSA provider at all times from and including 17 March of the previous financial year to and including the following 30 June—the day after that 17 March when the RSA provider became, or becomes, an RSA provider.\n  (6) A determination under subsection (3) may make different provision for different classes of RSA providers.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Calculation of indexation factor","content":"#### 8 Calculation of indexation factor\n\n  (1) The indexation factor for a financial year is the number worked out by:\n    (a) ascertaining the index number for the most recent quarter for which the Australian Statistician has published an index number, as at the start of the day on which the Treasurer makes the first determination under subsection 7(3) of an amount or percentage for the financial year; and\n    (b) dividing that index number by the index number for the quarter 12 months before the quarter mentioned in paragraph (a); and\n    (c) adding 0.030 to the number worked out under paragraph (b).\n  (2) The indexation factor is to be calculated to 3 decimal places, but increased by .001 if the 4th decimal place is more than 4.\n  (3) Calculations under subsection (1):\n    (a) are to be made using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and\n    (b) are to be made disregarding index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Regulations","content":"#### 9 Regulations\n\n  The Governor‑General may make regulations for the purposes of subsection 2(2).","sortOrder":8}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: imposing a supervisory levy on RSA providers to fund APRA. The 2020 amendment updating the statutory upper limit from the original $2 million to $10 million and adding the unrestricted levy component represents an evolution of the funding model rather than scope creep — the target (RSA providers) and purpose (supervisory funding) remain unchanged."},"complexity_factors":["Nested conditional logic in section 7 with multiple tiers: restricted vs unrestricted components, with min/max caps, plus pro-rata calculations for mid-year entrants","Delegated legislative power: Treasurer determines 5 key variables (max/min amounts, two percentages, and levy base methodology) via legislative instrument, meaning the actual dollar amounts aren't in the Act itself","Complex indexation formula in section 8 requiring CPI calculations with specific rounding rules (3 decimal places, rounding up at 0.0005) and reference period adjustments","Cross-references to three other Acts: Australian Prudential Regulation Authority Act 1998, Financial Institutions Supervisory Levies Collection Act 1998, and Retirement Savings Accounts Act 1997","Specific date-based triggers for levy base calculation (17 March to 14 April window) creating temporal complexity","7 defined terms in interpretation section, some with nested definitions (e.g., statutory upper limit refers to indexation factor)"],"plain_english_summary":"**What this law does:**\n\nThis law creates a **tax** (called a \"levy\") that Retirement Savings Account (RSA) providers must pay to the government each year. The money funds the **Australian Prudential Regulation Authority (APRA)** — the government body that supervises banks, insurers, and superannuation funds to make sure they remain financially stable.\n\n**Who it affects:**\n\n- **RSA providers** — financial institutions that offer Retirement Savings Accounts (a type of superannuation product, similar to a bank account for retirement savings).\n- The **Treasurer**, who sets the specific dollar amounts and percentages each year.\n\n**How the levy works:**\n\nThe annual levy has **two parts**:\n1. **Restricted levy component** — calculated as a percentage of the provider's \"levy base\" (essentially, the size of their business), but capped at a maximum amount and guaranteed to be at least a minimum amount.\n2. **Unrestricted levy component** — calculated as a percentage of the levy base with no cap.\n\nIf a provider starts operating part-way through a financial year, they pay a **pro-rata** (reduced) amount based on how many days they were actually operating.\n\n**Key features:**\n\n- The **statutory upper limit** for the maximum restricted levy started at **$10 million** in 2020-21 and increases each year with inflation (CPI + 3%).\n- The **Treasurer determines** the specific percentages and amounts each year through a legislative instrument (a formal government decision).\n- The law **automatically adjusts** for inflation using a specific formula based on the Consumer Price Index.\n\n**Why it matters:**\n\nThis ensures RSA providers contribute to the cost of their own regulation. Without this funding mechanism, taxpayers would bear the full cost of supervising these financial institutions, or APRA would lack resources to monitor whether RSA providers are managing Australians' retirement savings responsibly."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act’s scope, as expressed in its text, is to impose and regulate a supervisory levy on entities defined as 'RSA providers' (s.5) and to bind the Crown and extend to external Territories (ss.3–4). The Act itself contains no provision that broadens or narrows that class beyond the definition or otherwise changes the subject matter; it delegates rate, cap and measurement details to the Treasurer but does not alter which entities are within scope (ss.5–7)."},"complexity_factors":["Treasurer discretion to determine restricted/unrestricted percentages, minimum and maximum restricted amounts, and levy‑base method by legislative instrument (s.7(3)) — reduces predictability for providers.","Two-component levy (restricted and unrestricted) with floors and caps and a statutory upper limit linked to indexation (s.7(1A), s.5 definition of statutory upper limit, s.7(4)).","Prorating formula for providers that become RSA providers after 1 July in a financial year (s.7(2)) — introduces arithmetic and timing complexity.","Indexation factor calculation uses latest published CPI quarter plus 0.030, with specific rounding rules and exclusions for substituted index numbers (s.8(1)–(3)) — technical and data‑dependent.","Determination of levy‑base reference day with alternative rules depending on continuous provider status over a specific period (s.7(5)) — creates administrative timing obligations.","Ability to make different provision for different classes of RSA providers (s.7(6)) — adds regulatory complexity and potential for divergent treatment."],"plain_english_summary":"This Act imposes an annual supervisory levy on Retirement Savings Account (RSA) providers and sets the mechanical rules for calculating, capping and indexing that levy. The Treasurer determines levy percentages, minimums, maximums and the method for working out each provider’s levy base by legislative instrument; providers pay the resulting levy, which is subject to CPI-plus-3 percentage‑point indexation, mid‑year prorating and specified rounding rules (ss.5–8)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act remains focused on its original and narrow purpose: imposing a supervisory levy on RSA providers to fund APRA oversight. The addition of the 'unrestricted levy component' (subsection 1B) and the separate 'restricted' framing appear to be structural refinements consistent with how similar levies operate across the financial sector, rather than a meaningful expansion of scope beyond the original intent."},"complexity_factors":["Two-component levy structure (restricted and unrestricted) with different rules for each","Levy amount depends on external determinations made annually by the Treasurer via legislative instrument, meaning the Act alone does not tell you the actual dollar amounts","Indexation formula referencing CPI with an additional 3% uplift and specific rounding rules adds mathematical complexity","Pro-rata calculation for mid-year entrants references an image (formula not reproduced in text)","Levy base calculation tied to specific dates (17 March window) with different rules for established versus new providers","Cross-references to multiple other Acts (Financial Institutions Supervisory Levies Collection Act 1998, Retirement Savings Accounts Act 1997, Australian Prudential Regulation Authority Act 1998)","Ability to make different determinations for different classes of RSA providers adds variability"],"plain_english_summary":"This Act requires authorised Retirement Savings Account (RSA) providers—banks, credit unions and similar institutions—to pay an annual supervisory levy to fund APRA’s oversight. The levy has two parts: a restricted component (percentage of the levy base with an annual floor and a capped maximum) and an unrestricted percentage component; the Treasurer sets rates and limits each year. The statutory cap is indexed by CPI plus 3%, payments are pro‑rata for part‑year providers, and costs ultimately affect RSA holders."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/retirement-savings-account-providers-supervisory-levy-imposition-act-1998","history":"/api/acts/retirement-savings-account-providers-supervisory-levy-imposition-act-1998/history","analysis":"/api/acts/retirement-savings-account-providers-supervisory-levy-imposition-act-1998/analysis","conflicts":"/api/acts/retirement-savings-account-providers-supervisory-levy-imposition-act-1998/conflicts","importantCases":"/api/acts/retirement-savings-account-providers-supervisory-levy-imposition-act-1998/important-cases","documents":"/api/acts/retirement-savings-account-providers-supervisory-levy-imposition-act-1998/documents"}}