Major Bank Levy Act 2017

The Major Bank Levy Act 2017 is an Act to impose a levy on certain authorised deposit-taking institutions and for related purposes.

The Act provides that a levy is imposed on an ADI for a quarter starting on or after 1 July 2017 if the total liabilities amount for the quarter in relation to the ADI exceeds the levy threshold for the quarter. The total liabilities amount for a quarter in relation to an ADI is the amount equal to the total liabilities of the ADI for the quarter, as reported under an applicable reporting standard.

The levy payable by the ADI for the quarter is 0.015% of the applicable liabilities amount for the quarter in relation to the ADI. The applicable liabilities amount for a quarter in relation to an ADI is the difference between the total liabilities amount and the sum of certain amounts, including additional tier 1 capital, deposits held under the ADI financial claims scheme, derivative assets, derivative liabilities, exchange settlement account balance, and other amounts determined under subsection (4).

The methods for working out any of the amounts mentioned in paragraph (2)(b) may be set out in the same applicable reporting standard. The Minister may determine a kind of amount for the purposes of paragraph (2)(b)(v). An instrument made under subsection (4) may make provision in relation to a matter by applying, adopting or incorporating any matter contained in any other instrument or writing as in force or existing from time to time.

The Act provides that an amount mentioned in subsection 4(2), paragraph 5(2)(b), or subsection 6(2) for a quarter is to be worked out in accordance with accounting principles and any applicable instrument made under section 8. The Minister may determine methods of working out amounts by legislative instrument, which may make provision in relation to a matter by applying, adopting or incorporating any matter contained in any other instrument or writing as in force or existing from time to time.

The Act commences on the day after it receives Royal Assent and each provision of this Act specified in column 1 of the table commences in accordance with Authorised Version C2017A00063.