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Brief
Financial Claims Scheme (ADIs) Levy Act 2008
This Act provides for the imposition of a levy on liabilities of authorised deposit-taking institutions (ADIs) to their depositors. The levy is aimed at recovering costs associated with APRA's financial claims scheme for ADIs that are subject to Subdivision C of Division 2AA of Part II of the Banking Act 1959.
The regulations may impose levy on certain liabilities of ADIs, which must be prescribed by the Governor-General in consultation with the Minister. The amount of levy is worked out in accordance with the regulations and cannot exceed 0.5% of the liabilities to depositors.
The total amount of levy connected with the application of Subdivision C of Division 2AA of Part II of the Banking Act 1959 in relation to an ADI must equal the excess of APRA's financial claims scheme costs for the ADI over the sum of amounts paid to APRA by the ADI in connection with that Division or in the winding up of the ADI.
This Act aims to help APRA recover its costs associated with providing financial stability and supervising ADIs. The levy is expected to raise sufficient funds to cover these costs, ensuring that the ADI can recover its losses and maintain public trust.
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