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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Major Bank Levy Bill 2017
No. , 2017
(Treasury)
A Bill for an Act to impose a levy on certain
authorised deposit-taking institutions, and for
related purposes
No. , 2017
Major Bank Levy Bill 2017
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Definitions ......................................................................................... 2
4
Imposition of levy.............................................................................. 3
5
Amount of levy .................................................................................. 3
6
Working out amounts for a quarter .................................................... 4
7
Amounts to be worked out in accordance with accounting
principles etc...................................................................................... 5
8
Minister may determine methods of working out amounts ................ 5
No. , 2017
Major Bank Levy Bill 2017
1
A Bill for an Act to impose a levy on certain
1
authorised deposit-taking institutions, and for
2
related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the Major Bank Levy Act 2017.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
Section 3
2
Major Bank Levy Bill 2017
No. , 2017
1
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
2
enacted. It will not be amended to deal with any later amendments of
3
this Act.
4
(2) Any information in column 3 of the table is not part of this Act.
5
Information may be inserted in this column, or information in it
6
may be edited, in any published version of this Act.
7
3 Definitions
8
In this Act:
9
ADI (authorised deposit-taking institution) means a body corporate
10
that is an ADI for the purposes of the Banking Act 1959.
11
ADI financial claims scheme means the scheme provided for
12
under Division 2AA of Part II of the Banking Act 1959.
13
applicable liabilities amount for a quarter has the meaning given
14
by subsection 5(2).
15
applicable reporting standard means a standard that:
16
(a) is determined by the Australian Prudential Regulation
17
Authority under section 13 of the Financial Sector
18
(Collection of Data) Act 2001; and
19
(b) relates to reporting amounts for the purposes of this Act
20
(whether or not it also relates to other matters).
21
levy threshold for a quarter has the meaning given by
22
subsection 4(3).
23
quarter means a period of 3 months ending on 31 March, 30 June,
24
30 September or 31 December.
25
Section 4
No. , 2017
Major Bank Levy Bill 2017
3
total liabilities amount for a quarter has the meaning given by
1
subsection 4(2).
2
4 Imposition of levy
3
(1) Levy is imposed on an ADI for a quarter starting on or after 1 July
4
2017 if the total liabilities amount for the quarter in relation to the
5
ADI exceeds the levy threshold for the quarter.
6
(2) The total liabilities amount for a quarter in relation to an ADI is
7
the amount equal to the total liabilities of the ADI for the quarter,
8
as reported under an applicable reporting standard.
9
(3) The levy threshold for the quarter starting on 1 July 2017 is $100
10
billion. The amount is indexed quarterly.
11
Note:
Subdivision 960-M of the Income Tax Assessment Act 1997 shows
12
how to index amounts.
13
5 Amount of levy
14
(1) The amount of the levy payable by the ADI for the quarter is
15
0.015% of the applicable liabilities amount for the quarter in
16
relation to the ADI.
17
(2) The applicable liabilities amount for the quarter in relation to the
18
ADI is the difference between:
19
(a) the total liabilities amount for the quarter in relation to the
20
ADI; and
21
(b) the sum of the following amounts:
22
(i) the total Additional Tier 1 Capital for the quarter in
23
relation to the ADI, as reported under an applicable
24
reporting standard;
25
(ii) the total amount of deposits held, to the extent that they
26
would be protected by the ADI financial claims scheme,
27
for the quarter in relation to the ADI, as reported under
28
an applicable reporting standard;
29
(iii) an amount equal to the lesser of the derivative assets for
30
the quarter in relation to the ADI and the derivative
31
liabilities for the quarter in relation to the ADI, both as
32
reported under an applicable reporting standard;
33
Section 6
4
Major Bank Levy Bill 2017
No. , 2017
(iv) the exchange settlement account balance, held with the
1
Reserve Bank of Australia, for the quarter in relation to
2
the ADI, as reported under an applicable reporting
3
standard;
4
(v) any amounts of a kind determined under subsection (4).
5
(3) The methods for working out any of the amounts mentioned in
6
paragraph (2)(b) may be set out in the same applicable reporting
7
standard (including the standard mentioned in subsection 4(2)).
8
(4) The Minister may, by legislative instrument, determine a kind of
9
amount for the purposes of subparagraph (2)(b)(v).
10
(5) An instrument made under subsection (4) may make provision in
11
relation to a matter by applying, adopting or incorporating any
12
matter contained in any other instrument or writing as in force or
13
existing from time to time.
14
(6) Subsection (5) has effect despite anything in subsection 14(2) of
15
the Legislation Act 2003.
16
6 Working out amounts for a quarter
17
(1) An amount mentioned in subsection 4(2) or paragraph 5(2)(b) for a
18
quarter is to be worked out by working out that amount as at the
19
end of the last day of the quarter.
20
(2) However, the following amounts for a quarter are to be worked out
21
under subsection (3):
22
(a) the total liabilities amount, to the extent that it consists of
23
liabilities relating to any of the following:
24
(i) debt securities;
25
(ii) repurchase agreements;
26
(iii) loans between the ADI concerned and another ADI;
27
(iv) loans between the ADI concerned and a foreign bank
28
(within the meaning of section 128A of the Income Tax
29
Assessment Act 1936);
30
(b) the exchange settlement account balance mentioned in
31
subparagraph 5(2)(b)(iv);
32
(c) an amount of a kind determined under subsection (4).
33
Section 7
No. , 2017
Major Bank Levy Bill 2017
5
(3) An amount mentioned in subsection (2) is worked out, for a
1
quarter, as follows:
2
Method statement
3
Step 1. For each day during the quarter, work out the amount
4
mentioned in subsection (2) as at the end of that day.
5
Step 2. Add together the step 1 amounts.
6
Step 3. Divide the step 2 amount by the total number of days in
7
the quarter.
8
(4) The Minister may, by legislative instrument, determine a kind of
9
amount for the purposes of paragraph (2)(c).
10
(5) An instrument made under subsection (4) may make provision in
11
relation to a matter by applying, adopting or incorporating any
12
matter contained in any other instrument or writing as in force or
13
existing from time to time.
14
(6) Subsection (5) has effect despite anything in subsection 14(2) of
15
the Legislation Act 2003.
16
7 Amounts to be worked out in accordance with accounting
17
principles etc.
18
An amount mentioned in subsection 4(2), paragraph 5(2)(b) or
19
subsection 6(2) for a quarter is to be worked out in accordance
20
with:
21
(a) accounting principles (within the meaning of the Income Tax
22
Assessment Act 1997); and
23
(b) any applicable instrument made under section 8.
24
8 Minister may determine methods of working out amounts
25
(1) The Minister may, by legislative instrument, provide for any matter
26
relating to the method for working out an amount mentioned in
27
subsection 4(2), paragraph 5(2)(b), or subsection 6(2).
28
Section 8
6
Major Bank Levy Bill 2017
No. , 2017
(2) An instrument made under subsection (1) may make provision in
1
relation to a matter by applying, adopting or incorporating any
2
matter contained in any other instrument or writing as in force or
3
existing from time to time.
4
(3) Subsection (2) has effect despite anything in subsection 14(2) of
5
the Legislation Act 2003.
6