Commonwealth Numbered Regulations - Explanatory Statements

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LIFE INSURANCE SUPERVISORY LEVY REGULATIONS (AMENDMENT) 1992 NO. 217

Statutory Rules 1992 No. 217

Issued by Authority of the Treasurer

Life Insurance Supervisory Levy Act 1989

Life Insurance Supervisory Levy Regulations (Amendment)

Section 11 of the Life Insurance Supervisory Levy Act 1989        (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

The Act provides for the imposition of an annual. levy on registered life insurers to recover the ongoing costs of supervision under the Life Insurance Act 1945 by the Insurance and Superannuation Commissioner.

Subsection 9(1) of the Act provides, among other things, that the annual rate of levy shall be $25 000 or such other amount as is prescribed. This annual rate was Introduced by the Life Insurance Supervisory Levy_Amendment Act 1992 and applied from 1 July 1991. Subsection 9(2) provides that the prescribed annual rate of levy is not to exceed a statutory upper limit.

Section 10 sets out the procedure for adjusting the annual amount of the statutory upper limit. On this basis, the statutory upper limit for the financial year commencing oil 1 July 1992 has been calculated to be $28 476.

The Regulations increase the annual rate of levy from the previous level of $25,000 to $28 000 with effect from 1 July 1992. This increase ill the levy enables, the cost of supervising registered life offices to be recovered from those offices.