The RBNZ Act gives the Government the ability to introduce a levy, to cover the "costs of the Bank in performing or exercising its functions or powers under prudential legislation."
The announcement is a decision in principle to the levy's introduction. Section 296(1) of the RBNZ Act requires the Minister to ensure there has been consultation with those who are liable to pay a levy or will be significantly affected by it, before recommending regulations. The Minister has requested, and the Reserve Bank has agreed, to carry out the consultation on the Minister's behalf.
Consultation topics will include:
- The portion of costs that should be met by the levies (full or partial cost recovery)
- The sectoral scope of the levies, and
- The method of calculating or ascertaining the amount of the levy paid by individual regulated entities.
Anticipated timeline
/Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.
