In 1998, the Government introduced levy setting arrangements to recover the majority of the operational costs of the Australian Prudential Regulation Authority (APRA) and other specific costs incurred by certain Commonwealth agencies and departments. Since the introduction of the Financial Institutions Supervisory Levies Collection Act 1998, the scope of the levies imposition has expanded to include a broader range of activities relating to the financial services sector.
This paper seeks submissions on the design and operation of the Financial Institutions Supervisory Levy. The focus of the consultation paper is on the methodology that is applied in calculating the levies. This paper is separate to the annual ‘Proposed Financial Institutions Supervisory Levies’ paper released each year.
As noted in the annual consultation paper on the proposed levies for 2019-20, the maximum amount payable by ADIs under the restricted component was unable to be increased due to a cap imposed by legislation. As a result, funding associated with the supervision of large institutions was deferred until 2020-21, subject to legislative changes amending the statutory cap. Comments received will inform future consideration of the Financial Institutions Supervisory Levies and changes to legislation that underpin the levies framework.