AUSTRAC have released a Cost Recovery Impact Statement outlining how they will recover their supervision costs.
What does this mean for you?
The levy will consist of three components:
Base component
A fee of $284 will apply to all reporting entities. This fee will change each year and is based on the amount of funds AUSTRAC needs to recoup each year.
Large entity component
This will apply to entities with total earnings greater than $100 million. Fees are estimated to range from a minimum payment of $14,000 to a maximum of $425,000 for entities with total earnings greater than $5 billion.
Transaction reporting component
This component will applied to all leviable entities that lodge international funds transfer instruction and threshold transaction reports to AUSTRAC. It will be calculated on both the volume (calculated at 1 cent per transaction) and value (estimated to be $0.000005066 per dollar) of each transaction report submitted to AUSTRAC in 2010.
Exemptions for small businesses
Non-employing entities (sole proprietors and partnerships without employees) and micro businesses (businesses employing less than five people) will be exempt from the base component payment, however the transacting reporting componant may still apply.
A statutory minimum will apply; a person will not be liable to pay if the levy is calculated at less than $100. This amount will be adjusted each year.
When do the payments commence?
The date will be set by AUSTRAC, but according to the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery (Collection) Bill 2011, it will not be earlier than 30 days after the beginning of the new financial year commencing 2011-12.
How can Certainty help?
Certainty Compliance can assist you in understanding all your regulatory obligations, and ensure you have systems, policies and procedures in place to comply with them. Please contact a consultant on (02) 8324 5300 orenquiries@certaintycompliance.com.au
For further information:
AUSTRAC’s Cost Recovery Information page here
Cost Recovery Impact Statement – 2011-12 here