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Friday, 12 June 2020
Page: 3001


Senator BIRMINGHAM (South AustraliaMinister for Trade, Tourism and Investment and Deputy Leader of the Government in the Senate) (15:55): I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

Australian Prudential Regulation Authority Amendment (APRA Industry Funding) Bill 2020

This Bill, along with the APRA Levy Imposition Bills being introduced alongside it, will ensure the Government's cost recovery arrangements for APRA continue to operate effectively. These Bills will do this by ensuring the Treasurer has adequate flexibility to set the levies at a level required for institutions to pay for their fair share, and by ensuring the Commonwealth can continue to collect relevant costs for its regulatory activities in the financial sector. Both of these changes reflect the evolving environment we are in.

In introducing this Bill today, we are delivering on a commitment made to review the methodology of APRA levies and address legislative barriers to their effective operation.

Since 1998, when the APRA Act and the Levy Imposition Acts set the current levy arrangements, the role of APRA has expanded and increased. Additionally, other agencies have taken on a role in regulating the financial sector, the cost of which should be borne by those institutions that bring about the need for the regulation.

Legislation is currently preventing the largest banks from paying their fair share of the cost of APRA's regulation.

The APRA Industry Funding Bill and the Levy Imposition Bills will fix these issues.

Schedule 1 of the APRA Industry Funding Bill expands the conditions under which levy money is payable to the Commonwealth in respect of regulation of prudentially regulated entities to also include consumer outcomes.

The Levy Imposition Bills increase the statutory cap on levy collections for APRA's direct supervisory work on institutions from $1.5 million, as set back in 2005, to

$10 million, subject to indexation which uses the latest available CPI data.

These Bills will ensure there are no regulatory barriers to all institutions paying their fair share and to bearing the costs of all regulatory activities undertaken by Commonwealth agencies in relation to APRA-regulated entities, which aim to promote consumer outcomes.

In closing, these Bills will ensure the framework of the APRA levies keeps pace with the evolving regulatory environment and the size of the industry.

Full details of the measure are contained in the Explanatory Memorandum.

Authorised Deposit-taking Institutions Supervisory Levy Imposition Amendment Bill 2020

This Bill complements the Australian Prudential Regulation Authority Amendment (APRA Industry Funding) Bill 2020 by ensuring the Treasurer has adequate flexibility to set the levies at a level required for authorised deposit-taking institutions to pay their fair share.

Full details of the Bill are contained in the Explanatory Memorandum.

Authorised Non-operating Holding Companies Supervisory Levy Imposition Amendment Bill 2020

This Bill complements the Australian Prudential Regulation Authority Amendment (APRA Industry Funding) Bill 2020 by ensuring the Treasurer has adequate flexibility to set the levies at a level required for non-operating holding companies to pay their fair share.

Full details of the Bill are contained in the Explanatory Memorandum.

General Insurance Supervisory Levy Imposition Amendment Bill 2020

This Bill complements the Australian Prudential Regulation Authority Amendment (APRA Industry Funding) Bill 2020 by ensuring the Treasurer has adequate flexibility to set the levies at a level required for institutions in the general insurance industry to pay their fair share.

Full details of the Bill are contained in the Explanatory Memorandum.

Life Insurance Supervisory Levy Imposition Amendment Bill 2020

This Bill complements the Australian Prudential Regulation Authority Amendment (APRA Industry Funding) Bill 2020 by ensuring the Treasurer has adequate flexibility to set the levies at a level required for institutions in the life insurance industry to pay their fair share.

Full details of the Bill are contained in the Explanatory Memorandum.

Retirement Savings Account Providers Supervisory Levy Imposition Amendment Bill 2020

This Bill complements the Australian Prudential Regulation Authority Amendment (APRA Industry Funding) Bill 2020 by ensuring the Treasurer has adequate flexibility to set the levies at a level required for retirement savings account providers to pay their fair share.

Full details of the Bill are contained in the Explanatory Memorandum.

Superannuation Supervisory Levy Imposition Amendment Bill 2020

This Bill complements the Australian Prudential Regulation Authority Amendment (APRA Industry Funding) Bill 2020 by ensuring the Treasurer has adequate flexibility to set the levies at a level required for institutions in the superannuation industry to pay their fair share.

Full details of the Bill are contained in the Explanatory Memorandum.

Debate adjourned.