Treasury has released a discussion paper seeking submissions on the proposed financial institutions’ supervisory levies that will apply for the 2019-20 financial year.
The financial industry levies are set to recover the operational costs of APRA and other specific costs incurred by certain Commonwealth agencies and departments, including the Australian Securities and Investments Commission, the Australian Taxation Office, and the Australian Competition and Consumer Commission.
The total funding required is a 10.6 percent increase from the 2018–19 requirement.
The increase is largely attributable to APRA’s additional funding for the measures ‘New and expanded functions’ and ‘Government Response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry’.
The levies will be payable by authorised deposit-taking institutions, life insurers, friendly societies, general insurers, APRA-regulated superannuation institutions, and private health insurers
The relevant asset values of the sectors at the levy dates will be the basis for the calculation of the levies for 2019–20.