11Graduated levy component

11 Graduated levy component

(1) The graduated levy component for a person for a levy period and a sub‑sector is the amount worked out using the formula: Start formula open square bracket sub-sector costs minus open round bracket minimum levy component times sub-sector population close round bracket close square bracket times start fraction graduated entity metric over sub-sector metric end fraction end formula where:

graduated entity metric, for the levy period and the sub‑sector, means:

(a) unless paragraph (b) applies—the person’s entity metric for the levy period and the sub‑sector; or
(b) if the sub‑sector is the credit providers sub‑sector—the difference between:
(i) the person’s entity metric for the levy period and the sub‑sector; and
(ii) $100,000,000.

Note: For the person’s entity metric, see section 12.

sub‑sector costs means the lesser of:

(a) the initial claims, fees and costs estimate for the levy period and the sub‑sector; and
(b) the sub‑sector levy cap for the levy period and the sub‑sector.

sub‑sector metric means the sum of the amounts of graduated entity metric for the levy period and the sub‑sector for all persons that form part of the sub‑sector population.

sub‑sector population means the difference between:

(a) the sub‑sector population (within the meaning of section 10 of the ASIC Supervisory Cost Recovery Levy Regulations 2017) for the sub‑sector:
(i) for the financial year that is the qualifying period for the levy period; and
(ii) for the purposes of levy of the kind worked out under those regulations; and
(b) so many of that population as are not subject to the AFCA scheme at any time during that qualifying period.

(2) However, if a component of the formula is nil or a negative amount, the amount of the graduated levy component is nil.