Life Insurance Supervisory Levy Imposition Determination 2006
I, PETER CRAIG DUTTON, Minister for Revenue and Assistant Treasurer, make this Determination under subsection 7 (3) of the Life Insurance Supervisory Levy Imposition Act 1998.
Dated 29 June 2006
PETER CRAIG DUTTON
Minister for Revenue and Assistant Treasurer
Contents
1 Name of Determination 2
2 Commencement 2
3 Revocation of Life Insurance Supervisory Levy Imposition Determination 2005 2
4 Interpretation 2
5 Amount of levy (Act s 7) 3
6 Asset value (Act s 7) 3
1 Name of Determination
This Determination is the Life Insurance Supervisory Levy Imposition Determination 2006.
2 Commencement
This Determination commences on 1 July 2006.
3 Revocation of Life Insurance Supervisory Levy Imposition Determination 2005
The Life Insurance Supervisory Levy Imposition Determination 2005 is revoked.
4 Interpretation
(1) In this Determination:
2006–2007 financial year means the financial year beginning on 1 July 2006.
Act means the Life Insurance Supervisory Levy Imposition Act 1998.
approved benefit fund has the meaning given by subsection 16B (1) of the Life Insurance Act 1995.
benefit fund has the meaning given by subsection 16B (1) of the Life Insurance Act 1995.
friendly society has the meaning given by subsection 16C (1) of the Life Insurance Act 1995.
Friendly Society Quarterly General Return means the Friendly Society Quarterly General Return in the Schedule to Prudential Rules No. 48.
Prudential Rules No. 26 means Prudential Rules No. 26 Collection of Statistics which were made under subsection 252 (1) of the Life Insurance Act 1995.
Prudential Rules No. 48 means Prudential Rules No. 48 Collection of Statistics — Friendly Societies which were made under subsection 252 (1) of the Life Insurance Act 1995.
quarter:
(a) in relation to a life insurance company mentioned in subsection 6 (2) — has the same meaning as in rule 3 of Prudential Rules No. 26; and
(b) in relation to a life insurance company mentioned in subsection 6 (3) — has the meaning determined by rules 3 and 4 of Prudential Rules No. 48.
Statement of Assets means the Statement of Assets in Form A of Schedule 1 to Prudential Rules No. 26.
valuation day, in relation to a life insurance company, means:
(a) for a life insurance company that was a life insurance company at all times during the period from 17 March 2005 to 30 June 2006 — 31 March 2006; and
(b) for a life insurance company that was a life insurance company for some, but not all, of the period from 17 March 2006 to 30 June 2006 — the day, after 17 March 2006, on which it became a life insurance company; and
(c) for a life insurance company that became a life insurance company after 30 June 2006 — the day on which it became a life insurance company.
(2) In this Determination, a reference to a period from a specified date to another specified date is a reference to a period that includes both of those dates.
5 Amount of levy (Act s 7)
For paragraphs 7 (3) (a), (b), (c) and (ca) of the Act, table 5 sets out matters for the 2006–2007 financial year.
Table 5
Item
Company
Maximum restricted levy amount
$
Minimum restricted levy amount
$
Restricted levy percentage
Unrestricted levy percentage
1
Life insurance company
700 000
470
0.0054
0.000981
2
Friendly society
700 000
470
0.0054
0.000981
6 Asset value (Act s 7)
(1) For paragraph 7 (3) (d) of the Act, a life insurance company’s asset value is to be worked out using table 6 and subsections (2) to (4).
Table 6
Item
If the life insurance company …
the company’s asset value is …
1
(a) was a life insurance company at all times from 17 March 2006 to 30 June 2006; and
(b) was required to lodge a Statement of Assets for the quarter ending on 31 March 2006
the sum of the amounts required to be reported in the following items in that Statement of Assets (being the value of the assets of the company’s statutory funds):
(c) the item TOTAL ASSETS in the column TOTAL in Part 1 — Assets backing Australian policy liabilities;
(d) the item TOTAL ASSETS in the column TOTAL in Parts 2 and 3 — Assets backing policy liabilities in an overseas country
2
(a) was a life insurance company at all times from 17 March 2006 to 30 June 2006; and
(b) was required to lodge a Friendly Society Quarterly General Return for a quarter ending during the period from 17 March 2005 to 14 April 2006
the sum of the amounts required to be reported in row BB15 in Part B of that Return (being the value of the assets of the company’s benefit funds)
(2) If items 1 and 2 of table 6 apply to a general insurance company, its asset value is to be worked out in accordance with item 1.
(3) If the life insurance company:
(a) is not described in table 6; and
(b) was a life insurance company other than a friendly society on the valuation day;
the life insurance company’s asset value is the value of the assets of the company’s statutory funds as at the valuation day, worked out in the same way as the sum of the following items in the Schedule of Assets:
(c) the item TOTAL ASSETS in the column TOTAL in Part 1 — Assets backing Australian policy liabilities;
(d) the item TOTAL ASSETS in the column TOTAL in Parts 2 and 3 — Assets backing policy liabilities in an overseas country.
(4) If the life insurance company:
(a) is not described in table 6; and
(b) was a life insurance company and a friendly society on the valuation day;
the life insurance company’s asset value is the value of the assets of the company’s benefit funds as at the valuation day, with the value of the assets of each benefit fund being worked out in the same way as for row BB15 in Part B of the Friendly Society Quarterly General Return.
