Regulation Impact Statement Updates
Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.
Major Bank Levy
Regulation Impact Statement – Department of the Treasury
On 30 May 2017 the Treasurer introduced the Major Bank Levy Bill 2017.
The bill will introduce a levy on authorised deposit‑taking institutions (ADIs) with total liabilities of greater than $100 billion. The levy is imposed at a rate of 0.015 per cent on certain liabilities of the ADI that are reported to the Australian Prudential Regulation Authority on a quarterly basis. The levy will come into effect from 1 July 2017, and is expected to raise $6.2 billion over its first four years of operation.
The Office of Best Practice Regulation (OBPR) assessed the Regulation Impact Statement (RIS) prepared by the Treasury as compliant with the Government’s requirements but not best practice. The OBPR considers that the policy development process as described in the RIS departs from best practice as formal consultation, including on the RIS, was for a period shorter than the Government’s minimum requirement of 30 days.
The RIS estimates the average annual regulatory cost of the proposal to be $1.5 million for affected ADIs. The OBPR has agreed to the regulatory costs.