The Act establishes how APRA‑regulated levies are collected, when they’re due, how late penalties are calculated, and how unpaid amounts are recovered; it links to separate levy Acts for amounts and lets APRA (and sometimes the Minister) administer notices, waivers and recovery.
It applies to ADIs, NOHCs, insurers, private health insurers, RSA providers and certain superannuation entities/trustees. It matters because it enforces funding for supervision and related schemes, creates binding payment liabilities and penalties, and imposes compliance and cash‑flow risks while allowing administrative discretion for relief.
The Financial Institutions Supervisory Levies Collection Act 1998 acts as the centralized administrative, billing, and debt-recovery framework for the various industry levies that fund Australia's financial regulatory apparatus. Rather than requiring each individual levy Act to establish its own collection bureaucracy, this Act aggregates the collection mechanisms for levies imposed on authorised deposit-taking institutions (ADIs), non-operating holding companies (NOHCs), life insurance companies, general insurance companies, private health insurers, retirement savings account (RSA) providers, and superannuation entities. It establishes the legal liability for these levies, dictates when payments are due, prescribes punitive late-payment penalties, governs the recovery of unpaid amounts as civil debts, and sets out the administrative review pathway for entities seeking waivers or disputing regulatory decisions.
From an economic perspective, the Act implements a "user-pays" cost-recovery model for prudential supervision. While official policy framing justifies this as a mechanism to ensure that the industries causing the need for regulation bear its costs, the mechanical reality is that it insulates the government's general tax fund from the expanding costs of the Australian Prudential Regulation Authority (APRA). By shifting the funding of the regulator directly onto the regulated entities, the Act creates a closed-loop funding stream. Because the levies are ultimately passed down to consumers in the form of higher interest spreads, administrative fees, and premiums, the Act functions as an indirect, regressive tax on users of Australian financial products.
Furthermore, by establishing a legislative framework where the regulator itself (APRA) is responsible for collecting the very levies that fund its operations (acting on behalf of the Commonwealth under section 11), the Act minimizes the external market discipline that might otherwise constrain APRA's regulatory footprint or operational expenditure. For smaller financial institutions, start-up ADIs, and independent superannuation trustees, these centralized levies represent an inescapable compliance overhead that increases barriers to entry, thereby shielding larger, established oligopolistic market participants from intense competition.
Current sections
Direct links to the current provisions in Financial Institutions Supervisory Levies Collection Act 1998.
51
Part 1
Preliminary
Part 1—Preliminary
1
Short title
1 Short title
This Act may be cited as the Financial Institutions Supervisory Levies Collection Act 1998.
2
Commencement
2 Commencement
This Act commences on the commencement of the Australian Prudential Regulation Authority Act 1998.
3
Act binds the Crown
3 Act binds the Crown
This Act binds the Crown in each of its capacities.
4
External Territories
4 External Territories
This Act extends to each external Territory.
5
Application of Act to Lloyd’s
5 Application of Act to Lloyd’s
(1) This Act applies to Lloyd’s (within the meaning of section 3 of the Insurance Act 1973), at all times after the commencement of this Act, as if Lloyd’s were a body corporate authorised under that Act to carry on insurance business.
(2) Nothing in this Act makes any Lloyd’s underwriter liable to pay levy under this Act.
6
Definitions
6 Definitions
In this Act, unless the contrary intention appears:
APRA means the Australian Prudential Regulation Authority.
private health insurer has the same meaning as in the Private Health Insurance (Prudential Supervision) Act 2015.
Part 2
Supervisory levies
Part 2—Supervisory levies
7
Definitions
7 Definitions
In this Part, unless the contrary intention appears:
ADI has the same meaning as in the Banking Act 1959.
Note: ADI is short for authorised deposit‑taking institution.
authorised NOHC means:
(a) an authorised NOHC within the meaning of either:
(i) the Banking Act 1959; or
(ii) the Insurance Act 1973; or
(b) a registered NOHC within the meaning of the Life Insurance Act 1995.
Note: NOHC is short for non‑operating holding company.
business day means a day that is not a Saturday, a Sunday, a public holiday or a bank holiday in the place concerned.
general insurance company means a body corporate that is authorised under the Insurance Act 1973 to carry on insurance business within the meaning of that Act.
late payment penalty means penalty payable under section 10.
leviable body means any of the following types of bodies:
(a) an ADI;
(b) an authorised NOHC;
(c) a life insurance company;
(d) a general insurance company;
(da) a private health insurer;
(e) an RSA provider;
(f) a superannuation entity.
levy means:
(a) in respect of a leviable body that is an ADI—levy imposed by the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998; or
(b) in respect of a leviable body that is an authorised NOHC—levy imposed by the Authorised Non‑operating Holding Companies Supervisory Levy Imposition Act 1998; or
(c) in respect of a leviable body that is a life insurance company—levy imposed by the Life Insurance Supervisory Levy Imposition Act 1998; or
(d) in respect of a leviable body that is a general insurance company—levy imposed by the General Insurance Supervisory Levy Imposition Act 1998; or
(da) in respect of a leviable body that is a private health insurer—levy imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015; or
(e) in respect of a leviable body that is an RSA provider—levy imposed by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998; or
(f) in respect of a leviable body that is a superannuation entity—levy imposed by the Superannuation Supervisory Levy Imposition Act 1998.
levy imposition day, in relation to the imposition of a levy in respect of a leviable body of a particular type for a financial year, means:
(a) if the leviable body is that type of leviable body on 1 July of the financial year—that day; or
(b) if the leviable body becomes that type of leviable body on a day during the financial year that is after 1 July of the financial year—the day, during the financial year, on which the leviable body becomes that type of leviable body.
levy paying entity means:
(a) a leviable body, other than a superannuation entity; or
(b) the trustee of a superannuation entity.
life insurance company means a company that is registered under section 21 of the Life Insurance Act 1995.
RSA provider has the same meaning as in the Retirement Savings Accounts Act 1997.
superannuation entity means an entity that:
(a) is a superannuation entity within the meaning of the Superannuation Industry (Supervision) Act 1993; and
(b) is not a self managed superannuation fund within the meaning of that Act.
trustee, in relation to a superannuation entity, means the person who is the trustee of the entity for the purposes of the Superannuation Industry (Supervision) Act 1993.
8
Liability to levy
8 Liability to levy
ADIs
(1) A body corporate that is an ADI at any time during a financial year that ends after the commencement of the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998 is liable to pay a levy in respect of that financial year.
Authorised NOHCs
(2) A body corporate that is an authorised NOHC at any time during a financial year that ends on or after the commencement of the Authorised Non‑operating Holding Companies Supervisory Levy Imposition Act 1998 is liable to pay a levy in respect of that financial year.
General insurance bodies corporate
(3) A body corporate that is a general insurance company at any time during a financial year that ends after the commencement of the General Insurance Supervisory Levy Imposition Act 1998 is liable to pay a levy in respect of that financial year.
Life Insurance companies
(4) A body corporate that is a life insurance company at any time during a financial year that ends after the commencement of the Life Insurance Supervisory Levy Imposition Act 1998 is liable to pay a levy imposed in respect of that financial year.
Private health insurers: 2015‑16 financial year
(4A) A body corporate that is a private health insurer on the liability day in a quarter in the financial year starting on 1 July 2015 is liable to pay a levy in respect of that quarter. However, this subsection does not apply to a quarter if the liability day for the quarter is before the commencement of this subsection.
(4B) In subsection (4A):
liability day in a quarter means the 28th day of the second month of the quarter.
quarter means a period of 3 months starting on 1 July, 1 October, 1 January or 1 April.
Private health insurers: 2016‑17 financial year and later financial years
(4C) A body corporate that is a private health insurer at any time during the financial year starting on 1 July 2016 or a later financial year is liable to pay a levy in respect of that financial year.
RSA providers
(5) A body corporate that is an RSA provider at any time during a financial year that ends after the commencement of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 is liable to pay a levy imposed in respect of that financial year.
Superannuation entities
(6) A trustee of a superannuation entity that is a superannuation entity at any time during a financial year that ends after the commencement of the Superannuation Supervisory Levy Imposition Act 1998 is liable to pay a levy in respect of that financial year.
9
When levy due for payment
9 When levy due for payment
(1) Levy payable by a leviable body for a financial year (other than levy payable under subsection 8(4A) or (6)) is due and payable on:
(a) if the levy imposition day relating to the levy payable by the leviable body is 1 July of the financial year—a business day that is:
(i) specified in a notice given to the leviable body by APRA in relation to the financial year; and
(ii) is not earlier than 28 days after the day on which the notice is given; or
(b) if the levy imposition day relating to the levy payable by the leviable body is a day of that financial year after 1 July—by:
(i) the day that is 6 weeks after the day on which the leviable body becomes that type of leviable body; or
(ii) if the day applicable under subparagraph (i) is not a business day, the first business day following that day.
(2) Levy payable under subsection 8(6) for a financial year by a trustee of a superannuation entity is due and payable:
(a) if the entity is a superannuation entity on 1 July of the financial year and became a superannuation entity before that day—on a business day that:
(i) is specified in a notice given by APRA to the trustee on or after the day on which an annual return that is a reporting document under section 13 of the Financial Sector (Collection of Data) Act 2001 and that relates to the previous financial year was received by APRA; and
(ii) is not earlier than 6 weeks after the day on which the notice is given; or
(b) if the entity becomes a superannuation entity on or after 1 July of the financial year—on a business day that:
(i) is specified in a notice given by APRA to the trustee; and
(ii) is not earlier than 6 weeks after the day on which the notice is given.
(3) Levy payable by a private health insurer for a quarter under subsection 8(4A) is payable on the 14th day after the liability day for the quarter.
Note: For the meaning of quarter and liability day, see subsection 8(4B).
10
Late payment penalty
10 Late payment penalty
(1) If any levy payable by a levy paying entity:
(a) is not paid on or before the day on which it is due and payable (the due day for payment); and
(b) remains unpaid after the penalty calculation day;
the levy paying entity is liable to pay, by way of penalty, an amount worked out at the applicable rate per year on the amount unpaid, computed from the end of the due day for payment to the end of the penalty calculation day.
(2) The penalty calculation day is:
(a) if the levy is paid on or after the first day of a month and before the sixth day of that month—the 20th day of the immediately preceding month; or
(b) if the levy is paid on or after the sixth day of a month and before the 20th day of that month—the sixth day of that month; or
(c) if the levy is paid on or after the 20th day of a month and on or before the last day of that month—the 20th day of that month.
(3) The applicable rate, in relation to an amount of unpaid levy, is:
(a) 20% (unless the levy was imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015); or
(b) if the levy was imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015:
(i) 15% (unless subparagraph (ii) applies); or
(ii) if, under a legislative instrument made by the Minister for the purposes of this subparagraph, a specified rate of less than 15% applies in relation to the unpaid levy—that specified rate.
11
Payment of levy and late payment penalty
11 Payment of levy and late payment penalty
Levy and late payment penalty are payable to APRA on behalf of the Commonwealth.
Note: Levy and late payment penalty may be payable to the Commissioner of Taxation because of section 252G of the Superannuation Industry (Supervision) Act 1993.
12
Waiver of levy and late payment penalty
12 Waiver of levy and late payment penalty
APRA, on behalf of the Commonwealth, may, if APRA considers it is appropriate to do so, waive the payment of the whole or a part of an amount of levy or late payment penalty that is payable by a levy paying entity.
Note: For example, if levy is payable by a body corporate which has ceased to be authorised under the Insurance Act 1973 to carry on an insurance business and has ceased to be a life company, APRA may waive the payment of the levy if APRA considers it appropriate to do so because payment of the levy would prevent payment in full of claims under contracts of insurance made with the body corporate.
13
Recovery of levy and late payment penalty
13 Recovery of levy and late payment penalty
(1) The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth:
(a) levy that is due and payable;
(b) late payment penalty that is due and payable.
(2) APRA is authorised, as agent of the Commonwealth, to bring proceedings in the name of the Commonwealth for the recovery of a debt due to the Commonwealth of a kind mentioned in subsection (1).
14
Exempting laws ineffective
14 Exempting laws ineffective
(1) Nothing in a law passed before the commencement of this section exempts a levy paying entity from liability to pay levy.
(2) If a law (including a provision of a law) passed after the commencement of this section purports to exempt a levy paying entity from:
(a) liability to pay taxes under laws of the Commonwealth; or
(b) liability to pay certain taxes under laws of the Commonwealth that would otherwise include levy;
the law does not operate to exempt the levy paying entity from liability to pay levy unless the exemption expressly refers to levy under this Act.
(3) This section applies in relation to levy imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015 as if subsections (1) and (2) referred to the time when this subsection commences (rather than to the commencement of this section).
15
Regulations may modify this Part if levy Act commences during a financial year
15 Regulations may modify this Part if levy Act commences during a financial year
If an Act mentioned in section 8 that imposes levy in respect of a particular type of leviable body commences during a financial year (but not on 1 July of that financial year), this Act has effect in relation to that financial year and that type of leviable body subject to the modifications specified in the regulations.
Part 3
Superannuation (financial assistance funding) levy
Part 3—Superannuation (financial assistance funding) levy
16
Definitions
16 Definitions
In this Part, unless the contrary intention appears:
approved deposit fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993.
fund means a superannuation fund or an approved deposit fund, but does not include a self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993).
late payment penalty means penalty payable under section 20.
levy means levy imposed by regulations under the Superannuation (Financial Assistance Funding) Levy Act 1993.
levy month means one of the 12 months of the calendar year.
superannuation fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993.
trustee, in relation to a fund, has the same meaning as in the Superannuation Industry (Supervision) Act 1993.
unpaid levy means the amount of levy unpaid by the trustee of a fund as at the beginning of a levy month.
17
Fund’s accounts to be prima facie evidence of value of its assets
17 Fund’s accounts to be prima facie evidence of value of its assets
(1) This section applies if:
(a) accounts of a fund were prepared for a financial year; and
(b) an amount is shown on those accounts as the value of an asset of the fund as at the end of that financial year.
(2) For the purposes of this Part, the accounts are prima facie evidence of the value of the asset at the end of that financial year.
(3) The Minister may certify that a document is a copy of the accounts.
(4) This section applies to the certified copy as if it were the original.
18
Liability to levy
18 Liability to levy
The trustee of a fund is liable to pay a levy imposed on the fund.
19
When levy due for payment
19 When levy due for payment
(1) A levy payable by the trustee of a fund is due and payable on such date as is specified in the regulations imposing the levy.
(2) The date to be so specified must not be earlier than the 28th day after the day on which the regulation imposing the levy took effect.
20
Late payment penalty
20 Late payment penalty
(1) If any levy payable by the trustee of a fund remains unpaid as at:
(a) the beginning of the first levy month after the time when it became due for payment; or
(b) the beginning of a later levy month;
the trustee is liable to pay to the Commonwealth, in respect of that levy month, by way of penalty, the amount worked out using the formula:
(2) Late payment penalty for a levy month is due and payable at the end of the levy month.
21
Payment of levy and late payment penalty
21 Payment of levy and late payment penalty
Levy and late payment penalty are payable to the Minister.
22
Waiver of late payment penalty
22 Waiver of late payment penalty
The Minister may waive the whole or a part of an amount of late payment penalty.
23
Recovery of levy and late payment penalty
23 Recovery of levy and late payment penalty
The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth:
(a) levy that is due and payable;
(b) late payment penalty that is due and payable.
24
Application of levy, late payment penalty and repayments of financial assistance
24 Application of levy, late payment penalty and repayments of financial assistance
If levy is imposed as a result of a determination by the Minister to make a grant of financial assistance, the following amounts must be paid to the Commonwealth:
(a) amounts of the levy, and late payment penalty in respect of the levy, received by the Minister;
(b) repayments of the financial assistance.
25
Exempting laws ineffective
25 Exempting laws ineffective
(1) Nothing in a law passed before the commencement of this section exempts a trustee of a fund from liability to pay levy.
(2) If a law (including a provision of a law) passed after the commencement of this section purports to exempt a trustee of a fund from:
(a) liability to pay taxes under laws of the Commonwealth; or
(b) liability to pay certain taxes under laws of the Commonwealth that would otherwise include levy;
the law does not operate to exempt the trustee from liability to pay levy unless the exemption expressly refers to levy under this Act.
26
Delegation
26 Delegation
The Minister may, by signed writing, delegate to APRA all or any of his or her powers under this Part.
Part 3A
Financial claims scheme levies
Part 3A—Financial claims scheme levies
26A
Definitions
26A Definitions
In this Part:
late payment penalty means penalty payable under section 26D.
levy means:
(a) levy imposed by regulations under the Financial Claims Scheme (ADIs) Levy Act 2008; or
(b) levy imposed by regulations under the Financial Claims Scheme (General Insurers) Levy Act 2008.
levy month means one of the 12 months of the calendar year.
26B
Liability to levy
26B Liability to levy
(1) An ADI is liable to pay a levy imposed on the ADI’s liabilities to its depositors.
(2) A general insurer is liable to pay a levy imposed on the gross premiums received by the general insurer.
26C
When levy due for payment
26C When levy due for payment
(1) A levy payable by an ADI or a general insurer is due and payable on the date specified in the regulations imposing the levy.
(2) The date specified must not be earlier than the 28th day after the day on which the regulation imposing the levy took effect.
(3) However, APRA may, by written notice given to the ADI or general insurer before, on or after the day on which levy would be due and payable apart from this subsection, specify a later day as the day on which the levy is due and payable. The notice has effect, and is taken always to have had effect, according to its terms.
Note: The notice may affect whether and when the ADI or general insurer is liable to pay late payment penalty.
26D
Late payment penalty
26D Late payment penalty
(1) If any levy payable by an ADI or general insurer remains unpaid at the start of a levy month after the levy became due for payment, the ADI or general insurer is liable to pay the Commonwealth, for that levy month, a penalty worked out using the formula:
(2) Late payment penalty for a levy month is due and payable at the end of the levy month.
(3) However, APRA may, by written notice given to the ADI or general insurer before, on or after the day on which late payment penalty would be due and payable apart from this subsection, specify a later day as the day on which the late payment penalty is due and payable. The notice has effect, and is taken always to have had effect, according to its terms.
26E
Payment of levy and late payment penalty
26E Payment of levy and late payment penalty
Levy and late payment penalty are payable to APRA on behalf of the Commonwealth.
26F
Waiver of levy and late payment penalty
26F Waiver of levy and late payment penalty
On behalf of the Commonwealth, APRA may waive the whole or a part of an amount of levy or late payment penalty.
26G
Recovery of levy and late payment penalty
26G Recovery of levy and late payment penalty
(1) The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth:
(a) levy that is due and payable;
(b) late payment penalty that is due and payable.
(2) APRA may bring proceedings in the name of the Commonwealth (as its agent) for the recovery of a debt due to the Commonwealth as described in subsection (1).
26H
Exempting laws ineffective
26H Exempting laws ineffective
(1) A law made before the commencement of this section does not exempt an ADI or general insurer from liability to pay levy.
(2) A law made on or after the commencement of this section purporting to exempt an ADI or general insurer from liability to pay taxes under laws of the Commonwealth that would otherwise include levy does not exempt the ADI or general insurer from liability to pay levy unless the exemption expressly refers to levy under the Act under which the levy is imposed.
Part 3B
Private health insurance collapsed insurer levy
Part 3B—Private health insurance collapsed insurer levy
26J
Definitions
26J Definitions
In this Part:
collapsed insurer levy day has the same meaning as in the Private Health Insurance (Collapsed Insurer Levy) Act 2003.
late payment penalty means penalty payable under section 26M.
levy means levy imposed by the Private Health Insurance (Collapsed Insurer Levy) Act 2003.
levy determination, in relation to a collapsed insurer levy day, means the determination under section 7 of the Private Health Insurance (Collapsed Insurer Levy) Act 2003 because of which that day is a collapsed insurer levy day.
26K
Liability to levy
26K Liability to levy
A private health insurer is liable to pay a levy imposed on the insurer on a collapsed insurer levy day.
26L
When levy due for payment
26L When levy due for payment
A levy imposed on a private health insurer on a collapsed insurer levy day is due and payable on the day specified in the levy determination as the payment day in relation to that collapsed insurer levy day.
26M
Late payment penalty
26M Late payment penalty
(1) If any levy payable by a private health insurer:
(a) is not paid on or before the day on which it is due and payable (the due day for payment); and
(b) remains unpaid after the penalty calculation day;
the insurer is liable to pay, by way of penalty, an amount worked out at the applicable rate per year on the amount unpaid, computed from the end of the due day for payment to the end of the penalty calculation day.
(2) The penalty calculation day is:
(a) if the levy is paid on or after the first day of a month and before the sixth day of that month—the 20th day of the immediately preceding month; or
(b) if the levy is paid on or after the sixth day of a month and before the 20th day of that month—the sixth day of that month; or
(c) if the levy is paid on or after the 20th day of a month and on or before the last day of that month—the 20th day of that month.
(3) The applicable rate, in relation to an amount of unpaid levy, is:
(a) 15% (unless paragraph (b) applies); or
(b) if, under a legislative instrument made by the Minister for the purposes of this paragraph, a specified rate of less than 15% applies in relation to the unpaid levy—that specified rate.
26N
Payment of levy and late payment penalty
26N Payment of levy and late payment penalty
Levy and late payment penalty are payable to APRA on behalf of the Commonwealth.
26P
Waiver of levy and late payment penalty
26P Waiver of levy and late payment penalty
(1) The Minister may waive the whole or a part of an amount of levy or late payment penalty.
(2) The Minister may, in writing, delegate to APRA the power under subsection (1) to waive levy or late payment penalty.
26Q
Recovery of levy and late payment penalty
26Q Recovery of levy and late payment penalty
(1) The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth:
(a) levy that is due and payable;
(b) late payment penalty that is due and payable.
(2) APRA may bring proceedings in the name of the Commonwealth (as its agent) for the recovery of a debt due to the Commonwealth as described in subsection (1).
26R
Exempting laws ineffective
26R Exempting laws ineffective
(1) A law made before the commencement of this section does not exempt a private health insurer from liability to pay levy.
(2) A law made on or after the commencement of this section purporting to exempt a private health insurer from liability to pay taxes under laws of the Commonwealth that would otherwise include levy does not exempt the private health insurer from liability to pay levy unless the exemption expressly refers to levy under the Act under which the levy is imposed.
Part 4
Miscellaneous
Part 4—Miscellaneous
27
Review of certain decisions
27 Review of certain decisions
(1) A levy paying entity that is affected by a reviewable decision of the decision maker may, if dissatisfied with the decision, request the decision maker to reconsider the decision.
(2) The request must:
(a) be made by notice given to the decision maker within:
(i) the period of 21 days after the day on which the levy paying entity first receives notice of the decision; or
(ii) the further period that the decision maker allows; and
(b) set out the reasons for making the request.
(3) When the decision maker receives the request the decision maker must reconsider the decision.
(4) The decision maker may confirm or revoke the decision or vary the decision in the manner that the decision maker thinks fit. However, if the decision maker does not confirm, revoke or vary the decision within the period of 21 days after the day on which the decision maker received the request, the decision maker is taken to have confirmed the decision immediately after the end of that period.
(5) If the decision maker confirms, revokes or varies the decision during the period of 21 days after the day on which the decision maker received the request, the decision maker is to give a notice in writing to the levy paying entity that made the request. The notice must set out the result of the reconsideration of the decision and the reasons for confirming, varying or revoking the decision, as the case may be.
(6) Applications may be made to the Administrative Review Tribunal for review of:
(a) decisions of the decision maker that have been confirmed or varied under subsection (4); and
(b) decisions of the decision maker to revoke reviewable decisions.
(8) If a request is made under subsection (1) in respect of a reviewable decision, section 32 of the Administrative Review Tribunal Act 2024 applies as if the making of the request were the making of an application to the Administrative Review Tribunal for a review of that decision.
(9) An order must not be made under subsection 32(2) of the Administrative Review Tribunal Act 2024 in respect of a reviewable decision except by the Administrative Review Tribunal.
(10) In this section:
decision maker, in relation to a reviewable decision, means:
(a) if the reviewable decision is a decision of APRA under section 12—APRA; or
(b) if the reviewable decision is a decision of the Minister under section 22 or subsection 26P(1)—the Minister.
levy paying entity means:
(a) an entity that is a levy paying entity as defined in section 7; or
(b) a trustee of a fund as defined in section 16.
reviewable decision means:
(a) a decision of APRA under section 12; or
(b) a decision of the Minister under section 22 or subsection 26P(1).
28
Statements to accompany notification of decisions
28 Statements to accompany notification of decisions
(1) If notice in writing is given to a levy paying entity affected by a reviewable decision that the reviewable decision has been made, that notice must include words to the effect that:
(a) the levy paying entity may seek a reconsideration of the reviewable decision by the decision maker in accordance with subsection 27(1) if the levy paying entity is dissatisfied with the decision; and
(b) the levy paying entity may, subject to the Administrative Review Tribunal Act 2024, apply to the Administrative Review Tribunal for review of a reviewable decision that is confirmed or varied under subsection 27(4), or for review of a decision to revoke a reviewable decision.
(2) If:
(a) the decision maker confirms or varies a reviewable decision under subsection 27(4), or makes a decision to revoke a reviewable decision under that subsection; and
(b) gives the levy paying entity affected by the decision notice in writing of the confirmation or variation of the decision, or of the revocation of the decision;
that notice must include words to the effect that the levy paying entity may, subject to the Administrative Review Tribunal Act 2024, apply to the Administrative Review Tribunal for review of the reviewable decision as confirmed or varied, or for review of the decision to revoke the reviewable decision.
(3) A failure to comply with the requirements of subsections (1) and (2) in relation to a reviewable decision or a decision under subsection 27(4) does not affect the validity of that decision.
(4) In this section:
decision maker, in relation to a reviewable decision, has the same meaning as in section 27.
levy paying entity has the same meaning as in section 27.
reviewable decision has the same meaning as in section 27.
29
Regulations
29 Regulations
(1) The Governor‑General may make regulations, not inconsistent with this Act, prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) Without limiting subsection (1), the regulations may, in particular:
(a) provide for the manner of payment for levy, late payment penalty and other amounts payable under this Act; and
(b) provide for the refund (or other application) of overpayments.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
This Act may be cited as the Financial Institutions Supervisory Levies Collection Act 1998.
2 — Commencement
2 Commencement
This Act commences on the commencement of the Australian Prudential Regulation Authority Act 1998.
3 — Act binds the Crown
3 Act binds the Crown
This Act binds the Crown in each of its capacities.
4 — External Territories
4 External Territories
This Act extends to each external Territory.
5 — Application of Act to Lloyd’s
5 Application of Act to Lloyd’s
(1) This Act applies to Lloyd’s (within the meaning of section 3 of the Insurance Act 1973), at all times after the commencement of this Act, as if Lloyd’s were a body corporate authorised under that Act to carry on insurance business.
(2) Nothing in this Act makes any Lloyd’s underwriter liable to pay levy under this Act.
6 — Definitions
6 Definitions
In this Act, unless the contrary intention appears:
APRA means the Australian Prudential Regulation Authority.
private health insurer has the same meaning as in the Private Health Insurance (Prudential Supervision) Act 2015.
Part 2 — Supervisory levies
Part 2—Supervisory levies
7 — Definitions
7 Definitions
In this Part, unless the contrary intention appears:
ADI has the same meaning as in the Banking Act 1959.
Note: ADI is short for authorised deposit‑taking institution.
authorised NOHC means:
(a) an authorised NOHC within the meaning of either:
(i) the Banking Act 1959; or
(ii) the Insurance Act 1973; or
(b) a registered NOHC within the meaning of the Life Insurance Act 1995.
Note: NOHC is short for non‑operating holding company.
Main concepts
Understanding the operation of this Act requires mastering several highly specific statutory definitions and structural concepts.
The concept of a leviable body under section 7 is the primary gateway for liability. It captures seven distinct classes of financial actors: ADIs, authorised NOHCs, life insurance companies, general insurance companies, private health insurers, RSA providers, and superannuation entities (specifically excluding self-managed superannuation funds).
A levy paying entity is defined as the leviable body itself, unless the entity is a superannuation entity, in which case the legal responsibility to pay falls squarely upon the trustee of that superannuation entity.
The levy imposition day represents the precise temporal trigger for liability in any given financial year. Under section 7, this is defined as 1 July if the entity exists in that regulated capacity on that date. However, if an entity is newly authorised, registered, or licensed during the financial year, the levy imposition day is the exact day on which the entity achieves that regulatory status. This ensures that the Commonwealth's right to levy accrues immediately upon licensing, rather than at the next annual boundary.
The Act distinguishes between ordinary supervisory levies and specialized emergency funding levies. Under Part 3, the Superannuation (financial assistance funding) levy is a distinct instrument triggered when the Minister decides to make a grant of emergency financial assistance to a superannuation fund that has suffered significant losses due to fraudulent conduct or embezzlement.
Under Part 3A, the Financial Claims Scheme levies represent emergency levies designed to recoup funds expended by the state to payout depositors or policyholders in the event of an ADI or general insurer collapse.
Under Part 3B, the Private health insurance collapsed insurer levy is a targeted mechanism designed to fund the resolution costs of a failed private health insurer.
A critical administrative concept is the penalty calculation day under sections 10 and 26M. Rather than calculating late payment penalties on a simple, uniform daily accrual basis, the Act utilizes artificial calendar bands. If a levy remains unpaid after the due date, the late payment penalty is calculated from the end of the due day to the end of the penalty calculation day. This day is determined by when the late payment is actually made: payments made between the 1st and 5th of a month refer back to the 20th of the previous month; payments made between the 6th and 19th refer to the 6th of that month; and payments made between the 20th and the end of the month refer to the 20th of that month. This creates a staggered, non-linear penalty accrual system.
Who it affects
The Act directly impacts all prudentially regulated financial institutions operating within the Australian economy, as well as their ultimate directors, trustees, and compliance officers who must manage the cash flows necessary to meet these statutory liabilities.
The primary class of affected entities consists of ADIs (such as retail banks, credit unions, and building societies), authorised non-operating holding companies (NOHCs) under the Banking Act 1959, the Insurance Act 1973, or the Life Insurance Act 1995, and registered general, life, and private health insurance companies.
The Act also captures retirement savings account (RSA) providers and trustees of registrable superannuation entities (RSEs) regulated under the Superannuation Industry (Supervision) Act 1993. Crucially, self-managed superannuation funds (SMSFs) are expressly excluded from the definition of a superannuation entity under section 7 and are not subject to the levies collected under this Act, insulating small-scale, member-run funds from APRA's cost-recovery machinery.
Under section 5, the Act applies a unique legal fiction to Lloyd's (as defined in the Insurance Act 1973). Lloyd's is treated as if it were a single body corporate authorised to carry on insurance business in Australia, thereby making it subject to the levy framework. However, section 5(2) contains a crucial protective carve-out: nothing in the Act makes any individual Lloyd's underwriter personally liable to pay the levy, effectively shifting the administrative and payment burden to the central corporate structure of Lloyd's.
Beyond private market participants, the Act binds the Crown in each of its capacities (section 3), meaning that state-owned or government-backed financial entities operating within these regulated sectors are not exempt from contributing to APRA's funding.
Indirectly, the Act affects APRA and the Minister, who are vested with extensive powers to issue payment notices, calculate penalty rates, sue for outstanding debts, and exercise broad administrative discretion to waive liabilities.
The practical economic burden of these provisions is felt most acutely by smaller, non-aligned financial institutions. While major banks and large-scale corporate superannuation trustees can easily absorb these regulatory levies as a negligible percentage of their multi-billion-dollar asset bases, smaller credit unions, regional insurers, and independent superannuation funds face a disproportionately high administrative cost, which impedes their ability to compete on price with dominant market players.
Key duties and rights
The primary statutory duty imposed by the Act is the obligation of every levy-paying entity to pay its designated levy in full on or before the legislated due date.
For standard supervisory levies under Part 2, the due date depends on when the liability was triggered. Under section 9(1)(a), if the levy imposition day is 1 July, the levy is due on a business day specified in a written notice issued by APRA. This date must not be earlier than 28 days after the day on which APRA serves the notice.
However, if an entity becomes a leviable body after 1 July (for example, a newly authorised bank or insurer), section 9(1)(b) dictates that the levy is due exactly six weeks after the day the entity achieves that regulatory status, or on the first business day thereafter. This represents a significant compliance trap, as the obligation to pay arises automatically by operation of law and is not contingent upon APRA issuing a preliminary billing notice.
For superannuation trustees, the billing cycle under section 9(2) is linked to their regulatory reporting. The due date for an existing superannuation entity is specified in an APRA notice, which can only be issued on or after the day APRA receives the trustee's annual return (which serves as a reporting document under section 13 of the Financial Sector (Collection of Data) Act 2001) for the preceding financial year. The due date must be at least six weeks after this notice is given.
In terms of statutory rights, affected entities possess a highly structured but strictly time-limited right to request a review of certain discretionary decisions. Under section 27, a levy-paying entity may request the "decision maker" to reconsider a "reviewable decision."
Reviewable decisions are limited to APRA's decisions to refuse to waive a levy or late payment penalty under section 12, or the Minister's decisions to refuse a waiver under section 22 or section 26P(1).
To exercise this right, the entity must submit a written notice to the decision-maker setting out the reasons for the request within 21 days of first receiving notice of the decision (section 27(2)).
The decision-maker then has a 21-day window to confirm, revoke, or vary the decision. If the decision-maker fails to act within this 21-day period, the decision is statutorily deemed to have been confirmed (section 27(4)).
If the entity remains dissatisfied with the outcome of this reconsideration, it has the right under section 27(6) to apply to the Administrative Review Tribunal (ART) for a formal merits review of the decision.
Penalties and enforcement
The Act contains an exceptionally aggressive penalty regime designed to compel prompt payment and eliminate any economic incentive for financial institutions to delay transferring funds to the state.
Under section 10, if an ordinary supervisory levy remains unpaid past its due date, the levy-paying entity is automatically liable to pay a late payment penalty calculated at an applicable rate per annum on the unpaid balance.
For standard financial institutions, this late payment penalty rate is set at a punitive 20% per annum (section 10(3)(a)).
For private health insurers, the penalty rate is 15% per annum (section 10(3)(b)(i)), unless the Minister, via a legislative instrument, specifies a lower rate (section 10(3)(b)(ii)).
Under Part 3 (Superannuation financial assistance funding levy) and Part 3A (Financial Claims Scheme levy), the penalty calculation is structured as a monthly compound formula:
$$\text{Penalty} = \text{Unpaid Levy} \times \frac{0.2}{12}$$
This penalty is applied to the balance of the levy remaining unpaid at the start of each "levy month" (sections 20(1) and 26D(1)), and the resulting penalty is due and payable at the end of that month.
Under Part 3B (Private health insurance collapsed insurer levy), the late payment penalty is calculated at 15% per annum (or a lower rate specified by ministerial instrument) utilizing the complex "penalty calculation day" banding method set out in section 26M.
The enforcement of these liabilities is straightforward. Under sections 13, 23, 26G, and 26Q, any outstanding levy and late payment penalty constitute a civil debt due to the Commonwealth.
The Act bypasses complex administrative recovery mechanisms by explicitly authorising APRA (or the Minister, under Part 3) to initiate debt-recovery proceedings in any court of competent jurisdiction in the name of the Commonwealth.
Because the underlying liability is established by statutory formulas and notice dates, the Commonwealth's burden of proof in recovery proceedings is remarkably low.
Additionally, under section 17, the formal financial accounts prepared by a superannuation fund for any given financial year serve as prima facie evidence of the value of the fund's assets at the end of that year, preventing trustees from disputing the valuation metrics used to calculate their asset-based levy liabilities during debt-recovery litigation.
The only relief from this regime is the discretionary waiver power. APRA (on behalf of the Commonwealth) may waive the whole or part of any supervisory levy or late payment penalty if it considers it "appropriate to do so" (section 12).
The statute provides a specific, illustrative note regarding when a waiver might be appropriate: if a general insurance or life insurance company has ceased operating, APRA may waive the levy if paying it would prevent the company from paying out policyholder claims in full.
This highlights the policy priority of the Act, which values consumer asset preservation over state debt collection when an insurer is in terminal distress.
How it interacts with other laws
The Act does not operate in isolation; it is the administrative linchpin of a complex, bifurcated legislative web that separates the imposition of taxes from their collection, a structure required to satisfy section 55 of the Australian Constitution.
Mechanically, the Act relies on seven distinct imposition Acts to give it physical substance:
Authorised Deposit-taking Institutions Supervisory Levy Imposition Act 1998
Authorised Non-operating Holding Companies Supervisory Levy Imposition Act 1998
Life Insurance Supervisory Levy Imposition Act 1998
General Insurance Supervisory Levy Imposition Act 1998
Private Health Insurance Supervisory Levy Imposition Act 2015
Retirement Savings Account Providers Supervisory Levy Imposition Act 1998
Superannuation Supervisory Levy Imposition Act 1998
The calculation of the levy amounts is governed by these Imposition Acts, while the Financial Institutions Supervisory Levies Collection Act 1998 dictates how, when, and to whom those calculated sums must be paid.
The Act also intersects directly with the substantive regulatory statutes that govern the Australian financial sector. For instance, the definitions of ADIs, NOHCs, general insurers, life companies, RSA providers, and superannuation funds are imported directly from the Banking Act 1959, the Insurance Act 1973, the Life Insurance Act 1995, the Retirement Savings Accounts Act 1997, and the Superannuation Industry (Supervision) Act 1993.
Section 9(2)(a)(i) links the billing cycle of superannuation trustees to their reporting obligations under section 13 of the Financial Sector (Collection of Data) Act 2001, creating a direct statutory pipeline between data compliance and tax liability.
In terms of debt collection, section 11 contains a critical cross-reference note acknowledging that under section 252G of the Superannuation Industry (Supervision) Act 1993, levies and late payment penalties may alternatively be payable directly to the Commissioner of Taxation, reflecting the joint regulatory oversight of the superannuation sector by APRA and the Australian Taxation Office (ATO).
Furthermore, the Act contains an extraordinary priority mechanism in sections 14, 25, 26H, and 26R. These provisions declare that "exempting laws are ineffective."
Specifically, any law passed before the commencement of these sections cannot exempt an entity from its liability to pay these levies.
Furthermore, any law passed after the commencement of these sections that purports to grant a general exemption from Commonwealth taxes will not apply to levies collected under this Act, unless the subsequent exempting statute explicitly and specifically refers to the levies imposed under this Act. This statutory design prevents general tax-concession or charity-exemption laws from inadvertently stripping the regulator of its cost-recovery funding.
Finally, the Act integrates with Australian administrative law via the Administrative Review Tribunal Act 2024. Section 27 and section 28 explicitly apply the procedural machinery of the Administrative Review Tribunal Act 2024 to merits review applications, ensuring that disputes over levy waivers are handled within the unified federal tribunal system.
Amendment history
To trace the amendment history of this Act purely from the statutory text provided is to observe the progressive expansion of Australia's prudential regulatory perimeter over the past quarter-century.
The Act was originally enacted in 1998 as part of the landmark "Wallis Reforms," which consolidated various industry-specific regulators into APRA. The original 1998 core structure established the collection framework for ADIs, insurance companies, RSA providers, and superannuation funds under Part 2, and the emergency financial assistance levies for superannuation under Part 3.
The first major structural expansion visible in the text occurred with the insertion of Part 3B, which deals with the private health insurance collapsed insurer levy. This Part was integrated to support the Private Health Insurance (Collapsed Insurer Levy) Act 2003.
Subsequently, the regulatory perimeter was fundamentally altered during the 2008 Global Financial Crisis. The introduction of Part 3A (Financial claims scheme levies) was enacted to administer the emergency funding mechanisms under the Financial Claims Scheme (ADIs) Levy Act 2008 and the Financial Claims Scheme (General Insurers) Levy Act 2008. This addition reflected a paradigm shift, giving the Commonwealth the statutory power to retrospectively levy the entire banking or insurance sector to recover the costs of bailing out depositors or policyholders of a failed competitor.
The next major wave of integration occurred in 2015, when prudential regulation of the private health insurance sector was transferred from the Private Health Insurance Administration Council (PHIAC) to APRA. This was executed textually via the insertion of references to the Private Health Insurance (Prudential Supervision) Act 2015 and the Private Health Insurance Supervisory Levy Imposition Act 2015.
Sections 8(4A), 8(4B), and 8(4C) were inserted to govern this transition, creating a temporary quarter-based transitional levy for the 2015-16 financial year, before bringing private health insurers fully into the standard annual financial year levy cycle from 1 July 2016 onwards.
Similarly, section 14(3) was appended to ensure that the "exempting laws ineffective" rule applied seamlessly to the new private health insurance levies.
The most recent major procedural update embedded in the text is the wholesale transition of the administrative appeals framework. The text reflects the abolition of the Administrative Appeals Tribunal (AAT) and its replacement with the Administrative Review Tribunal, with sections 27 and 28 heavily amended to align with the Administrative Review Tribunal Act 2024.
These continuous layers of statutory accretion demonstrate how the Act has transformed from a simple, routine agency-funding tool into an expansive, multi-tiered fiscal collection engine capable of handling systemic crises, industry-wide bailouts, and multi-agency regulatory consolidation.
Litigation history
Because the text of the Act contains no references to historical or active court cases, the litigation landscape of this statute must be analyzed through its structural and administrative design, which is highly insulated against judicial challenge.
The statutory drafting of the Act represents a masterclass in risk-mitigation for the Commonwealth, leaving extremely narrow avenues for affected entities to initiate litigation.
The primary reason for the relative absence of high-profile litigation under this Act is that liability under section 8 is absolute and binary. It is triggered by the objective fact of an entity holding a specific regulatory status (such as being an ADI or a registered insurer) at any time during a financial year. Because liability is not contingent upon APRA proving regulatory misconduct or administrative necessity, there is virtually no room for a plaintiff to challenge the underlying validity of a levy assessment in court.
Furthermore, the Act explicitly neutralizes standard common-law and statutory defenses that litigants typically deploy against tax assessments:
Asset Valuation Disputes: In many tax disputes, the primary battleground is the valuation of the underlying assets. The Act preemptively defuses this under section 17 by declaring that a fund's own prepared financial accounts are prima facie evidence of its asset values. A trustee seeking to litigate an over-assessment of a levy under Part 3 faces an uphill battle, as they must legally overcome the statutory presumption of validity attached to their own signed accounts.
Exemption Arguments: Litigants cannot argue that they are exempt from paying levies under other, generalized state or federal tax-concession laws, because sections 14, 25, 26H, and 26R explicitly override any past or future exempting legislation unless it explicitly names this Act.
Narrow Merits Review: The right to seek review under section 27 is confined strictly to the exercise of the regulator's or Minister's discretion to waive a levy or penalty (under sections 12, 22, or 26P). An entity cannot use the review process to challenge the rate of the levy, the fairness of the underlying imposition Act, or APRA's operational budget. The tribunal can only review whether the refusal to grant a waiver was appropriate under the circumstances.
Consequently, any legal disputes that do arise are confined to highly localized administrative law skirmishes in the Administrative Review Tribunal. These cases typically focus on whether APRA or the Minister abused their statutory discretion in refusing to waive a late-payment penalty, or whether exceptional financial hardship justified a temporary waiver.
By keeping the statutory gate closed to broader challenges, the Act ensures that the Commonwealth's cost-recovery cash flows remain uninterrupted by protracted constitutional or administrative litigation.
Gotchas
For corporate counsel, compliance directors, and financial controllers, the Act contains several critical structural "gotchas" that can result in unexpected liabilities and severe financial penalties if not managed with absolute precision.
The Mid-Year Entry Trap
Under section 9(1)(b), if an entity becomes a leviable body on any day after 1 July, the levy is due and payable exactly six weeks after the day it achieves that regulatory status.
Unlike established entities, which receive an APRA notice granting them at least 28 days to pay from the date of the notice (section 9(1)(a)), a new entrant's payment window is triggered automatically by operation of law upon registration or licensing.
A newly authorised ADI or general insurer that waits for a formal invoice or billing notice from APRA before setting up its payment run may easily blow past the six-week deadline, triggering immediate exposure to the 20% per annum late payment penalty.
Multi-Tiered Levy Duplication (The NOHC Double-Dip)
The definition of a "leviable body" under section 7 treats NOHCs and their operating subsidiaries as separate, independent leviable entities.
If a financial group operates through an authorised NOHC that sits atop an ADI or an insurance company, the group faces multiple, distinct levy liabilities.
Both the holding company and the operating subsidiary are independently liable to pay levies under section 8, meaning that the same pool of economic capital is effectively levied multiple times as it flows up the corporate ownership chain.
The Deemed Confirmation Trap
Under section 27(4), if an entity formally requests a reconsideration of a waiver decision, the decision-maker must act within 21 days.
If the decision-maker fails to confirm, revoke, or vary the decision within those 21 days, the decision is statutorily deemed to have been confirmed immediately after the end of that period.
This is a critical procedural trap: a compliance officer who assumes that "no news is good news" or that the regulator is still considering their request may lose their window to appeal. The 21-day silence acts as a hostile administrative confirmation, and the clock for filing an appeal with the Administrative Review Tribunal begins ticking immediately.
Usurious Penalty Rates and Artificial Banding
The late-payment penalty rates of 20% and 15% per annum are severe.
Furthermore, because of the "penalty calculation day" banding rules in sections 10(2) and 26M(2), the actual penalty accrued can be artificially inflated.
For example, if a private health insurer pays an outstanding levy on the 5th of a month, the penalty is calculated as if the payment remained unpaid until the 20th of the preceding month.
This artificial retroactivity means that even a minor delay of a few days can result in several weeks of penalty interest, making the effective interest rate of a late payment dramatically higher than the nominal statutory rate.
How to comply
To ensure absolute compliance with the Act and to insulate your organisation from punitive interest penalties and debt-recovery proceedings, financial institutions must implement a robust, systematic compliance framework.
Step 1: Establish Regulatory Status Tracking and Identify "Levy Imposition Days"
The compliance team must maintain an active register of the regulatory status of all corporate entities within the group.
Any corporate restructuring, acquisition of a new financial subsidiary, or surrender of an insurance/ADI licence must be mapped directly against the definition of a "leviable body" under section 7.
For any newly authorised entity, the exact day of licensing must be recorded as the "levy imposition day," and a critical 6-week diary trigger must be established to calculate and pay the incoming levy under section 9(1)(b) without waiting for an APRA notice.
Step 2: Implement Strict Notice Monitoring and Account Synchronization
For existing entities active on 1 July, compliance departments must establish a dedicated inbox or tracking protocol for formal notices issued by APRA under section 9.
Once an APRA notice is received, the 28-day business day timeline under section 9(1)(a)(ii) (or the 6-week timeline for superannuation trustees under section 9(2)) must be locked into the treasury payment calendar.
For superannuation trustees, the billing notice is contingent on APRA receiving the annual return under section 13 of the Financial Sector (Collection of Data) Act 2001. Trustees must ensure that their data reporting and finance departments are fully synchronized; the moment the annual return is submitted, the treasury team must allocate cash reserves to meet the anticipated levy billing notice that will follow.
Step 3: Standardise Asset Valuations Using Approved Accounts
To avoid disputes over levy sizing, superannuation trustees must ensure that their asset valuations align perfectly with the formal accounts prepared for the financial year.
Because section 17 designates these accounts as prima facie evidence of asset values, the compliance officer must cross-reference the draft levy notice against the signed financial statements to verify that the levy calculation matches the reported assets.
Any discrepancy must be identified and resolved with APRA before the notice due date.
Step 4: Formulate a Rapid-Response Waiver and Reconsideration Protocol
If an organisation experiences severe operational distress, regulatory suspension, or wind-down, the finance team must immediately evaluate whether they qualify for a discretionary waiver under sections 12, 22, or 26P.
If APRA or the Minister refuses a waiver request, the legal team must be ready to execute the reconsideration process under section 27.
The application for reconsideration must be drafted and served on the decision-maker within 21 days of receiving the refusal notice, detailing comprehensive, evidence-based reasons for the waiver (such as policyholder protection or imminent insolvency).
Compliance officers must set an absolute 21-day diary trigger from the date the reconsideration request is submitted. If the regulator remains silent, the team must treat this as a "deemed confirmation" on day 22 and immediately prepare to file an application for review with the Administrative Review Tribunal to preserve the entity's rights.
business day means a day that is not a Saturday, a Sunday, a public holiday or a bank holiday in the place concerned.
general insurance company means a body corporate that is authorised under the Insurance Act 1973 to carry on insurance business within the meaning of that Act.
late payment penalty means penalty payable under section 10.
leviable body means any of the following types of bodies:
(a) an ADI;
(b) an authorised NOHC;
(c) a life insurance company;
(d) a general insurance company;
(da) a private health insurer;
(e) an RSA provider;
(f) a superannuation entity.
levy means:
(a) in respect of a leviable body that is an ADI—levy imposed by the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998; or
(b) in respect of a leviable body that is an authorised NOHC—levy imposed by the Authorised Non‑operating Holding Companies Supervisory Levy Imposition Act 1998; or
(c) in respect of a leviable body that is a life insurance company—levy imposed by the Life Insurance Supervisory Levy Imposition Act 1998; or
(d) in respect of a leviable body that is a general insurance company—levy imposed by the General Insurance Supervisory Levy Imposition Act 1998; or
(da) in respect of a leviable body that is a private health insurer—levy imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015; or
(e) in respect of a leviable body that is an RSA provider—levy imposed by the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998; or
(f) in respect of a leviable body that is a superannuation entity—levy imposed by the Superannuation Supervisory Levy Imposition Act 1998.
levy imposition day, in relation to the imposition of a levy in respect of a leviable body of a particular type for a financial year, means:
(a) if the leviable body is that type of leviable body on 1 July of the financial year—that day; or
(b) if the leviable body becomes that type of leviable body on a day during the financial year that is after 1 July of the financial year—the day, during the financial year, on which the leviable body becomes that type of leviable body.
levy paying entity means:
(a) a leviable body, other than a superannuation entity; or
(b) the trustee of a superannuation entity.
life insurance company means a company that is registered under section 21 of the Life Insurance Act 1995.
RSA provider has the same meaning as in the Retirement Savings Accounts Act 1997.
superannuation entity means an entity that:
(a) is a superannuation entity within the meaning of the Superannuation Industry (Supervision) Act 1993; and
(b) is not a self managed superannuation fund within the meaning of that Act.
trustee, in relation to a superannuation entity, means the person who is the trustee of the entity for the purposes of the Superannuation Industry (Supervision) Act 1993.
8 — Liability to levy
8 Liability to levy
ADIs
(1) A body corporate that is an ADI at any time during a financial year that ends after the commencement of the Authorised Deposit‑taking Institutions Supervisory Levy Imposition Act 1998 is liable to pay a levy in respect of that financial year.
Authorised NOHCs
(2) A body corporate that is an authorised NOHC at any time during a financial year that ends on or after the commencement of the Authorised Non‑operating Holding Companies Supervisory Levy Imposition Act 1998 is liable to pay a levy in respect of that financial year.
General insurance bodies corporate
(3) A body corporate that is a general insurance company at any time during a financial year that ends after the commencement of the General Insurance Supervisory Levy Imposition Act 1998 is liable to pay a levy in respect of that financial year.
Life Insurance companies
(4) A body corporate that is a life insurance company at any time during a financial year that ends after the commencement of the Life Insurance Supervisory Levy Imposition Act 1998 is liable to pay a levy imposed in respect of that financial year.
Private health insurers: 2015‑16 financial year
(4A) A body corporate that is a private health insurer on the liability day in a quarter in the financial year starting on 1 July 2015 is liable to pay a levy in respect of that quarter. However, this subsection does not apply to a quarter if the liability day for the quarter is before the commencement of this subsection.
(4B) In subsection (4A):
liability day in a quarter means the 28th day of the second month of the quarter.
quarter means a period of 3 months starting on 1 July, 1 October, 1 January or 1 April.
Private health insurers: 2016‑17 financial year and later financial years
(4C) A body corporate that is a private health insurer at any time during the financial year starting on 1 July 2016 or a later financial year is liable to pay a levy in respect of that financial year.
RSA providers
(5) A body corporate that is an RSA provider at any time during a financial year that ends after the commencement of the Retirement Savings Account Providers Supervisory Levy Imposition Act 1998 is liable to pay a levy imposed in respect of that financial year.
Superannuation entities
(6) A trustee of a superannuation entity that is a superannuation entity at any time during a financial year that ends after the commencement of the Superannuation Supervisory Levy Imposition Act 1998 is liable to pay a levy in respect of that financial year.
9 — When levy due for payment
9 When levy due for payment
(1) Levy payable by a leviable body for a financial year (other than levy payable under subsection 8(4A) or (6)) is due and payable on:
(a) if the levy imposition day relating to the levy payable by the leviable body is 1 July of the financial year—a business day that is:
(i) specified in a notice given to the leviable body by APRA in relation to the financial year; and
(ii) is not earlier than 28 days after the day on which the notice is given; or
(b) if the levy imposition day relating to the levy payable by the leviable body is a day of that financial year after 1 July—by:
(i) the day that is 6 weeks after the day on which the leviable body becomes that type of leviable body; or
(ii) if the day applicable under subparagraph (i) is not a business day, the first business day following that day.
(2) Levy payable under subsection 8(6) for a financial year by a trustee of a superannuation entity is due and payable:
(a) if the entity is a superannuation entity on 1 July of the financial year and became a superannuation entity before that day—on a business day that:
(i) is specified in a notice given by APRA to the trustee on or after the day on which an annual return that is a reporting document under section 13 of the Financial Sector (Collection of Data) Act 2001 and that relates to the previous financial year was received by APRA; and
(ii) is not earlier than 6 weeks after the day on which the notice is given; or
(b) if the entity becomes a superannuation entity on or after 1 July of the financial year—on a business day that:
(i) is specified in a notice given by APRA to the trustee; and
(ii) is not earlier than 6 weeks after the day on which the notice is given.
(3) Levy payable by a private health insurer for a quarter under subsection 8(4A) is payable on the 14th day after the liability day for the quarter.
Note: For the meaning of quarter and liability day, see subsection 8(4B).
10 — Late payment penalty
10 Late payment penalty
(1) If any levy payable by a levy paying entity:
(a) is not paid on or before the day on which it is due and payable (the due day for payment); and
(b) remains unpaid after the penalty calculation day;
the levy paying entity is liable to pay, by way of penalty, an amount worked out at the applicable rate per year on the amount unpaid, computed from the end of the due day for payment to the end of the penalty calculation day.
(2) The penalty calculation day is:
(a) if the levy is paid on or after the first day of a month and before the sixth day of that month—the 20th day of the immediately preceding month; or
(b) if the levy is paid on or after the sixth day of a month and before the 20th day of that month—the sixth day of that month; or
(c) if the levy is paid on or after the 20th day of a month and on or before the last day of that month—the 20th day of that month.
(3) The applicable rate, in relation to an amount of unpaid levy, is:
(a) 20% (unless the levy was imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015); or
(b) if the levy was imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015:
(i) 15% (unless subparagraph (ii) applies); or
(ii) if, under a legislative instrument made by the Minister for the purposes of this subparagraph, a specified rate of less than 15% applies in relation to the unpaid levy—that specified rate.
11 — Payment of levy and late payment penalty
11 Payment of levy and late payment penalty
Levy and late payment penalty are payable to APRA on behalf of the Commonwealth.
Note: Levy and late payment penalty may be payable to the Commissioner of Taxation because of section 252G of the Superannuation Industry (Supervision) Act 1993.
12 — Waiver of levy and late payment penalty
12 Waiver of levy and late payment penalty
APRA, on behalf of the Commonwealth, may, if APRA considers it is appropriate to do so, waive the payment of the whole or a part of an amount of levy or late payment penalty that is payable by a levy paying entity.
Note: For example, if levy is payable by a body corporate which has ceased to be authorised under the Insurance Act 1973 to carry on an insurance business and has ceased to be a life company, APRA may waive the payment of the levy if APRA considers it appropriate to do so because payment of the levy would prevent payment in full of claims under contracts of insurance made with the body corporate.
13 — Recovery of levy and late payment penalty
13 Recovery of levy and late payment penalty
(1) The following amounts may be recovered by the Commonwealth as debts due to the Commonwealth:
(a) levy that is due and payable;
(b) late payment penalty that is due and payable.
(2) APRA is authorised, as agent of the Commonwealth, to bring proceedings in the name of the Commonwealth for the recovery of a debt due to the Commonwealth of a kind mentioned in subsection (1).
14 — Exempting laws ineffective
14 Exempting laws ineffective
(1) Nothing in a law passed before the commencement of this section exempts a levy paying entity from liability to pay levy.
(2) If a law (including a provision of a law) passed after the commencement of this section purports to exempt a levy paying entity from:
(a) liability to pay taxes under laws of the Commonwealth; or
(b) liability to pay certain taxes under laws of the Commonwealth that would otherwise include levy;
the law does not operate to exempt the levy paying entity from liability to pay levy unless the exemption expressly refers to levy under this Act.
(3) This section applies in relation to levy imposed by the Private Health Insurance Supervisory Levy Imposition Act 2015 as if subsections (1) and (2) referred to the time when this subsection commences (rather than to the commencement of this section).
15 — Regulations may modify this Part if levy Act commences during a financial year
15 Regulations may modify this Part if levy Act commences during a financial year
If an Act mentioned in section 8 that imposes levy in respect of a particular type of leviable body commences during a financial year (but not on 1 July of that financial year), this Act has effect in relation to that financial year and that type of leviable body subject to the modifications specified in the regulations.
Part 3 — Superannuation (financial assistance funding) levy
Part 3—Superannuation (financial assistance funding) levy
16 — Definitions
16 Definitions
In this Part, unless the contrary intention appears:
approved deposit fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993.
fund means a superannuation fund or an approved deposit fund, but does not include a self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993).
late payment penalty means penalty payable under section 20.
levy means levy imposed by regulations under the Superannuation (Financial Assistance Funding) Levy Act 1993.
levy month means one of the 12 months of the calendar year.
superannuation fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993.
trustee, in relation to a fund, has the same meaning as in the Superannuation Industry (Supervision) Act 1993.
unpaid levy means the amount of levy unpaid by the trustee of a fund as at the beginning of a levy month.
17 — Fund’s accounts to be prima facie evidence of value of its assets
17 Fund’s accounts to be prima facie evidence of value of its assets
(1) This section applies if:
(a) accounts of a fund were prepared for a financial year; and
(b) an amount is shown on those accounts as the value of an asset of the fund as at the end of that financial year.
(2) For the purposes of this Part, the accounts are prima facie evidence of the value of the asset at the end of that financial year.
(3) The Minister may certify that a document is a copy of the accounts.
(4) This section applies to the certified copy as if it were the original.
18 — Liability to levy
18 Liability to levy
The trustee of a fund is liable to pay a levy imposed on the fund.
19 — When levy due for payment
19 When levy due for payment
(1) A levy payable by the trustee of a fund is due and payable on such date as is specified in the regulations imposing the levy.
(2) The date to be so specified must not be earlie
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