Financial Claims Scheme (General Insurers) Levy Act 2008

The Financial Claims Scheme (General Insurers) Levy Act 2008 is an Australian law that aims to provide for the imposition of a levy on general insurers. The Act may be cited as the Financial Claims Scheme (General Insurers) Levy Act 2008.

This Act commences in two stages, with sections 1 and 2 coming into effect on the day the Act receives Royal Assent, while sections 3 to 6 commence later, specifically on October 18, 2008, unless an event mentioned in the Act does not occur.

The Act defines key terms, including "APRA" (Australian Prudential Regulation Authority) and "general insurer," as well as "levy." The regulations may impose levy on gross premiums received by general insurers in a class prescribed by the regulations, in a financial year or other 12-month accounting period used instead of a financial year.

The amount of levy is worked out according to the regulations, with a maximum limit of 5% of the amount of those gross premiums. The regulations may prescribe different ways of working out the amount of levy for various classes of general insurers.

Additionally, the Act authorizes the Governor-General to make regulations prescribing matters required or permitted by this Act to be prescribed.

The objective of the Act is that the total amount of levy connected with the application of Division 3 of Part VC of the Insurance Act 1973 in relation to an insurer equals the excess of APRA's financial claims scheme costs for the insurer over the sum of amounts paid to APRA by the insurer in connection with that Part or in the winding up of the insurer.

The regulations are intended to help achieve this objective.