{"id":"C2004A04634","name":"Superannuation (Financial Assistance Funding) Levy Act 1993","slug":"superannuation-financial-assistance-funding-levy-act-1993","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"79 of 1993","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":38531,"registerId":"commonwealth-C2004A04634-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title [see Note 1]","content":"##### 1 Short title \\[see Note 1\\]\n\n  This Act may be cited as the Superannuation (Financial Assistance Funding) Levy Act 1993.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement [see Note 1]","content":"##### 2 Commencement \\[see Note 1\\]\n\n  This Act commences on the same day as Part 23 of the Superannuation Industry (Supervision) Act 1993.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Object of Act","content":"##### 3 Object of Act\n\n  The object of this Act is to impose levies on superannuation funds and approved deposit funds for the purpose of funding financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 to certain funds that have suffered loss as a result of fraudulent conduct or theft.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Application of the Superannuation Industry (Supervision) Act","content":"##### 4 Application of the Superannuation Industry (Supervision) Act\n\n  Section 9, and Division 2 of Part 1, of the Superannuation Industry (Supervision) Act 1993 apply in relation to this Act in a corresponding way to the way in which they apply in relation to that Act.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Interpretation","content":"##### 5 Interpretation\n\n  In this Act, unless the contrary intention appears:\n\n> fund means a regulated superannuation fund or an approved deposit fund, but does not include a self managed superannuation fund.\n\n> levy means levy imposed by regulations under section 6 of this Act.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Regulations may impose levies","content":"##### 6 Regulations may impose levies\n\n  (1) If the Minister makes a determination under Part 23 of the Superannuation Industry (Supervision) Act 1993 to grant financial assistance to a fund, the regulations may impose a levy or levies on each fund other than:\n    (a) the first‑mentioned fund; or\n    (b) another fund in respect of which such a determination was made in the same financial year.\n  (1A) If the Minister makes more than one determination in a financial year under Part 23 of the Superannuation Industry (Supervision) Act 1993 to grant financial assistance, the regulations may impose a levy on each fund that is not a fund in respect of which a determination was made in the same financial year.\n  (1B) Regulations made for the purposes of subsection (1A) imposing a levy in respect of more than one determination must specify all the funds in respect of which determinations are made and the proportion of the levy that each fund represents.\n  (2) Each levy must be identified in the regulations by a unique number.\n  (3) Regulations imposing a levy in respect of one or more determinations may specify that either or both of the following are payable:\n    (a) a maximum amount of levy;\n    (b) a minimum amount of levy.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Basis for prescribing amount of levy","content":"##### 7 Basis for prescribing amount of levy\n\n  (1) Subject to subsection (2):\n    (a) the rate or rates of a levy that are imposed because of one or more grants of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993; and\n    (b) the maximum amount of levy, and the minimum amount of levy, that is payable;\n  are to be fixed on the basis that the amount of revenue to be raised by the levy or by the levy and any previous levy imposed because of the same grant or grants of financial assistance is not to exceed the amount of levy needed to recoup the Commonwealth for the amount of that financial assistance.\n  (2) The rate or rates of a levy imposed in a financial year are not to be such that the total of the amounts payable in respect of the levy, or the total of those amounts and any amounts payable in respect of a previous levy imposed in the same financial year, would exceed 0.05% of the sum of the values at the end of the previous financial year of all the assets of the funds on which the levy or levies are imposed.\n  (3) In making regulations fixing the rate or rates of a levy, regard is to be had to subsections (1) and (2) but the validity of a regulation is not affected merely because it fixes a rate or rates of levy in excess of the maximum rate or rates required because of those subsections.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Amount of levy","content":"##### 8 Amount of levy\n\n  (1) The amount of a levy imposed on a fund is worked out using the formula:\n\n![](image.002.png)\n\n  where:\n\n> Applicable rate means the rate (expressed as a decimal fraction) that, under the regulations, is the rate of the levy applicable to the fund.\n\n> Value of assets means the value of the assets of the fund at the end of the last financial year of the fund before the day on which the regulation imposing the levy took effect.\n\n  (1A) However:\n    (a) if there is a maximum amount of levy that is payable and the amount worked out under subsection (1) is more than that maximum amount—the amount of levy imposed on the fund is the maximum amount; or\n    (b) if there is a minimum amount of levy that is payable and the amount worked out under subsection (1) is less than that minimum amount—the amount of levy imposed on the fund is the minimum amount.\n  (2) The applicable rate must not exceed 0.0005.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Levies may discriminate between classes of funds","content":"##### 9 Levies may discriminate between classes of funds\n\n  (1) Regulations imposing a levy:\n    (a) may provide different rates of the levy for different classes of funds; but\n    (b) must not otherwise discriminate between different funds.\n  (2) Regulations imposing a levy may define what constitutes a class of funds for the purposes of the levy but must not define a class in such a way that the levy would discriminate between States or parts of States.","sortOrder":8},{"sectionNumber":"10","sectionType":"section","heading":"Regulations","content":"##### 10 Regulations\n\n  The Governor‑General may make regulations prescribing matters:\n    (a) required or permitted by this Act to be prescribed; or\n    (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":9}],"analysis":{"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 closely matches its stated object. It is narrowly focused on imposing levies to fund financial assistance to super funds that suffer fraud or theft losses, with clear caps and cost-recovery limits. There is no evidence of scope creep — the mechanism, exclusions, and safeguards all align with the original intent of creating an industry-funded compensation backstop."},"complexity_factors":["Mathematical formula for calculating individual levy amounts based on asset values requires numeracy to understand","Interaction with a separate piece of legislation (Superannuation Industry (Supervision) Act 1993, Part 23) means you cannot fully understand this Act in isolation","Multiple subsections dealing with edge cases (e.g., multiple determinations in one financial year) add layering","Distinction between different fund types (regulated super funds, approved deposit funds, SMSFs) requires background knowledge","Cap calculations involve percentages of aggregate industry asset values, which are abstract and difficult for laypeople to intuitively grasp","Regulatory delegation — key operative details (levy rates, amounts) are left to regulations rather than the Act itself, meaning the Act alone does not tell you the full picture","Provisions about levy validity even when rates exceed maximums (s7(3)) create a potential tension that requires careful reading"],"plain_english_summary":"This Act lets the government recoup money it pays as financial assistance to a superannuation fund that suffered fraud or theft by imposing a special levy on other regulated super and approved deposit funds (SMSFs are excluded). The levy is a percentage of fund assets, is cost‑recovery only (cannot exceed amounts paid or 0.05% of industry assets in a year), exempts assisted funds, and spreads the loss across the industry rather than taxpayers."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act remains tightly focused on its original purpose of funding financial assistance for fraud/theft victims through industry levies. It has not expanded beyond this specific safety-net function."},"complexity_factors":["Heavy reliance on external legislation: The Act is essentially a shell that delegates all substantive operation to regulations and cross-references Part 23 of the Superannuation Industry (Supervision) Act 1993 for the financial assistance mechanism.","Mathematical formula with conditional caps: Section 8 contains a formula for calculating levies, plus nested conditions for minimum/maximum amounts, plus an absolute rate cap (0.0005).","Multiple levy scenarios: Sections 6(1), 6(1A), and 6(1B) create different regulatory pathways depending on whether there is one determination or multiple determinations in a financial year.","Dual constraints on levy rates: Section 7 imposes both a 'recoupment' basis (revenue not to exceed assistance granted) and a percentage-of-assets ceiling (0.05% of total industry assets), with a validity savings clause.","Anti-discrimination provisions with exceptions: Section 9 permits discrimination between classes of funds but prohibits geographic discrimination, requiring careful regulatory drafting."],"plain_english_summary":"**What this law does:**\n\nThis law creates a mechanism to help superannuation funds that have been ripped off. If a super fund loses money due to fraud or theft, the government can provide financial assistance to that fund. To pay for this help, the law allows the government to charge a special levy (a type of tax or fee) on *other* super funds.\n\n**Who it affects:**\n\n*   **Superannuation funds and approved deposit funds** (pooled retirement savings vehicles) — these are the ones that pay the levy.\n*   **Self-managed super funds** — these are explicitly excluded and don't have to pay.\n*   **Funds that suffered fraud/theft** — these receive the financial assistance and are exempt from paying the levy that funds their own bailout.\n\n**How it works:**\n\n*   When the Minister decides to grant financial assistance to a victim fund under Part 23 of the Superannuation Industry (Supervision) Act 1993, regulations can impose a levy on all other eligible funds.\n*   The levy is calculated as a percentage of each fund's assets (capped at 0.05% of total industry assets per financial year, and individual rates cannot exceed 0.0005 or 0.05%).\n*   The levy can have minimum and maximum amounts per fund.\n*   Different rates can apply to different classes of funds (for example, large funds vs small funds), but the classification can't discriminate between States.\n\n**Why it matters:**\n\nThis creates a mutual assistance scheme within the superannuation industry. Instead of leaving individual funds to collapse when hit by fraud, the industry collectively chips in to stabilise the affected fund. It spreads the risk across the entire sector, protecting ordinary people's retirement savings from being wiped out by criminal activity affecting their specific fund."},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act’s stated object and operative provisions consistently limit scope to regulated superannuation funds and approved deposit funds (excluding self‑managed funds) for funding Part 23 financial assistance. There is no internal indication that the Act’s scope departs from that object; operational details are left to regulations."},"complexity_factors":["Triggering discretion: levies only arise after a Ministerial determination under Part 23 of the SIS Act — creates contingent, official-triggered liability (s6(1)).","Regulatory delegation: key mechanics (who pays, rates, min/max amounts, classes) are set by regulation rather than the Act, concentrating substantive detail in delegated instruments (s6, s10).","Calculation rule with valuation timing: levy amount uses a formula based on a fund's asset value at the end of its last financial year before the regulation takes effect, imposing an administrative valuation and record-keeping requirement (s8(1)).","Multiple-determination allocation: where multiple assistance determinations occur in one year, regulations must list funds and each fund’s proportion of the levy, adding allocation complexity (s6(1A),(1B)).","Numerical caps and interactions: statutory limits constrain rates and totals — applicable rate ≤ 0.0005 (s8(2)); total levies in a year not to exceed 0.05% of prior-year asset sums (s7(2)) — but s7(3) preserves validity even if regulations exceed those maxima, creating legal uncertainty.","Class differentiation with anti-discrimination limit: regulations may set different rates for classes of funds but cannot discriminate between States; defining classes therefore affects incidence and fairness (s9).","Exclusion scope: self managed superannuation funds are expressly excluded, narrowing the payer base but concentrating costs on regulated funds and approved deposit funds (s5 definition).","Administrative identifiers and record rules: each levy must be uniquely identified in regulations, and regs may specify minimums/maximums — adding tracking and compliance steps for administrators (s6(2),(3)).","Cross‑statute dependence: the Act’s operation and object tie directly to Part 23 of the SIS Act, so interpretation and application depend on that other regime (s3, s4)."],"plain_english_summary":"This Act lets the government require regulated superannuation funds and approved deposit funds (but not self‑managed funds) to pay levies that recoup Commonwealth financial assistance paid under Part 23 of the Superannuation Industry (Supervision) Act 1993 for losses from theft or fraud. The Minister’s determination that assistance is payable triggers regulations that set rates, minimums/maximums and which funds contribute. Affected funds bear the cost, must use prescribed asset valuations, and comply with regulatory rules on classification and payment."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-financial-assistance-funding-levy-act-1993","history":"/api/acts/superannuation-financial-assistance-funding-levy-act-1993/history","analysis":"/api/acts/superannuation-financial-assistance-funding-levy-act-1993/analysis","conflicts":"/api/acts/superannuation-financial-assistance-funding-levy-act-1993/conflicts","importantCases":"/api/acts/superannuation-financial-assistance-funding-levy-act-1993/important-cases","documents":"/api/acts/superannuation-financial-assistance-funding-levy-act-1993/documents"}}