Australian Prudential Regulation Authority (APRA) industry levy calculations and details about how they will be used should be more transparent given the costs involved, the Insurance Council of Australia (ICA) says.

The insurance sector has previously been advised that it will be levied $30 million this financial year, a 40.2% increase from the previous 12 months.

“It is therefore important that the sector knows how its contribution will be allocated and used,” ICA says in a submission to a Treasury discussion paper on the levy methodology.

A cost recovery impact statement should be released during levy consultations, rather than at the end of the process, and APRA should show the calculation used to determine payment levels, the submission says.

“We are also concerned that there remains a lack of detail, beyond internal estimates of resource utilisation for each industry sector, on the way that resources will be allocated and used to support the regulation and supervision of the general insurance sector,” it says.