The superannuation sector is forecast to contribute less in Australian Prudential Regulation Authority (APRA) levy funding over the next four years, according to data released by the regulator this month.
The data, contained in a discussion paper flowing form the Financial Sector Levies Review, shows a decrease for superannuation entities, reflecting APRA’s expected changed priorities over the period.
The discussion paper said that, for superannuation, the 2005-06 four year average had decreased slightly.
“This reduction can be partly attributed to APRA’s supervisory activity in 2001-02 no longer being included in the average calculations,” it said. “In that year APRA devoted an unusually high proportion of its resources to superannuation.”
Summarising levy funding requirements for 2005-06, the document said that the current budgeted total cost for APRA in that period was $93.4 million, with $14 million of APRA’s costs being met through offsets such as fees expected from superannuation trustee licensing and direct funding from the Government for work arising from the HIH Royal Commission.
It said that in addition to APRA’s requirements, the levies fund certain market integrity and consumer protection functions undertaken by the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO).
“For 2005-06, the current forecast is that the amounts relating to the ASIC and the ATO will be higher than for 2004-05 by a total of $1.1 million,” it said. “This is due to a Government decision to increase funding for the Superannuation Complaints Tribunal (STC) by $1.6 million.”
The document said this increase in SCT funding related to the implementation of superannuation choice and the on-going Government commitment to national consumer financial literacy.
