The Federal Government wants submissions on proposed financial institution supervisory levies that will apply next financial year.

The levies recover operational costs of the Australian Prudential Regulation Authority (APRA).

The Government has also authorised APRA to recover specific costs incurred by certain Commonwealth agencies and departments. These cover market integrity and consumer protection functions undertaken by the Australian Securities and Investments Commission and the Australian Taxation Office; administering claims for the early release of superannuation benefits on compassionate grounds by the Department of Human Services; and implementing the new SuperStream superannuation administration system.

In the 2014/15 budget the Government announced the cessation of the Private Health Insurance Administration Council (PHIAC) from last July, with responsibility for prudential regulation of that industry moving to APRA.

PHIAC costs were recovered through a quarterly administrative levy on private health insurers. From July 1 this year, APRA will recover these costs.

The rate will still be applied to the number of single and joint health insurance policies held by insurers. However, it will be collected annually rather than quarterly, to maintain consistency with other APRA-supervised industries. A Treasury minister will make an annual determination that specifies the rate.

The total funding required under the levies next year, for all relevant Commonwealth agencies and departments, is $250.7 million – a 6.4% increase on this year’s requirement.

Institutions affected are general insurers, life insurers, private health insurers, authorised deposit-taking institutions, friendly societies, super funds and authorised non-operating holding companies.

For information on making submissions, visit here.