Treasury sets out financial sector supervisory costs

The Commonwealth Treasury Department has published a discussion paper outlining its approach to proposed financial industry levies for 2015-16. This follows on from a Department of Finance whole of Government review of the Australian Government Cost Recovery Guidelines as part of the Government's deregulation agenda.
    
The Treasury noted: "The purpose of this paper is to seek industry views on the proposed financial Institutions Supervisory Levies that will apply for the 2015‑16 financial year. The levies are set at a rate that will approximately recover the operational costs of the Australian Prudential Regulation Authority, and other specific costs incurred by certain other Commonwealth agencies and departments."

Authorised deposit taking institutions can expect total levies funding of A$64.2 million, consisting of $53.1 million for APRA's supervision of the ADI industry and $11.0 million to fund the financial literacy and consumer protection work undertaken by ASIC.

An updated Cost Recovery Implementation Statement will be released by APRA by 30 June 2015 and will provide further details on the cost of its activities.

From 1 July 2015, it is intended that APRA will also recover the costs of supervising the private health insurance industry under the Private Health Insurance Supervisory Levy Imposition Act 2015.

In addition to the levies for general insurers, a separate levy to cover the costs of operating the National Claims and Policies Database (NCPD) will continue in 2015-16. The total amount of the NCPD levy for 2015 16 is $0.4 million, compared to $1.0 million in 2014-15. The decrease represents the return to industry of an over-collection in 2014-15.

Further details and the discussion paper are on the Treasury website.
http://www.treasury.gov.au/ConsultationsandReviews/Consultations/2015/Proposed-Financial-Institutions-Supervisory-Levies-for-2015-16


Closing date for submissions is Wednesday, 10 June 2015.
Email: supervisorylevies@treasury.gov.au