In its submission to the consultation on proposed financial industry levies for 2013/2014, ASFA noted the intention of Treasury and the Australian Prudential Regulation Authority (APRA) to review how those levies are determined, but questioned the proposed financial industry levies for 2013/2014.
“We note with some concern that the funding required with respect to SuperStream ($99.5 million) represents an amount which is approximately 86 per cent of the operating costs for all of APRA ($115.6 million),” ASFA stated. “We query how this can possibly be the case.”
ASFA asked how the SuperStream costs could be roughly equivalent to the cost of running a department with more than 500 full-time equivalent staff.
The association also noted superannuation costings allocated to APRA were $34.1 million, with $7.3 million to the Australian Taxation office, $12.0 million to the Australian Securities and Investments Commission and $4.4 million to the Department of Human Services.
“In this context, the SuperStream levy represents 1.7 times the total of all of the other costs with respect to superannuation combined,” ASFA said, adding that SuperStream information technology costs are over $311 million.
“While we welcome the Treasury annual evaluations of the SuperStream initiative, given the magnitude of the amount of the SuperStream costs, especially with respect to IT, we would submit that an independent, comprehensive review of these costs be performed and published as a matter of urgency.”
ASFA questioned the appropriateness of the increase in 2012/2013 of the restricted maximum from $260,000 to $2 million.
“The appropriateness of effectively recouping a portion of the SuperStream costs from the restricted component through the indirect mechanism of increasing the maximum should be reviewed,” ASFA said.
ASFA said it was also pleased the consultation paper noted the concern over the application of the levies to pooled superannuation trusts.
