Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The CSLR operator may, by legislative instrument made within 12 months before the start of the second levy period or a later levy period, determine for the levy period and a sub - sector an estimate that is the sum of:
(a) the specified amount equal to what the CSLR operator reasonably believes (having regard to actuarial principles) will be the total amount of compensation payable under section 1063 of the Corporations Act 2001 :
(i) during the levy period; and
(ii) for the sub - sector;
other than any such compensation relating to pre - CSLR complaints; and
(b) the specified amount equal to what the CSLR operator reasonably believes (having regard to actuarial principles) will be the portion of the sum of the following that is attributable to the sub - sector:
(i) the sum of AFCA's unpaid fees expected for each of the months in the levy period, other than any such fees relating to pre - CSLR complaints;
(ii) the CSLR operator's expected administrative costs for the levy period;
(iii) ASIC's expected administrative costs notified under subsection (4) for the levy period;
(iv) for each of the second and third levy periods--the capital reserve establishment contribution reduced (but not below zero) by half of any specified excess worked out under subsection (6) before the start of that levy period;
(v) for the fourth and each later levy period--the amount (if any) equal to that necessary to restore the capital reserve; and
(c) any specified shortfall worked out under subsection (5) for an earlier levy period and the sub - sector; and
(d) for the next levy period that starts after any specified shortfall is worked out under subsection (6)--the portion of that shortfall that the CSLR operator reasonably believes (having regard to actuarial principles) is the portion attributable to the sub - sector; and
(e) for the third levy period--any specified shortfall worked out under subsection (7) for the first levy period and the sub - sector;
less any excess amounts referred to in subsection (2).
(2) The excess amounts are as follows:
(a) any specified excess worked out under subsection (5) for an earlier levy period and the sub - sector;
(b) for the third levy period--any specified excess worked out under subsection (7) for the first levy period and the sub - sector;
(c) for the fourth levy period--the portion of any specified excess:
(i) worked out under subsection (6); and
(ii) that remains after the application of subparagraph (1)(b)(iv) for earlier levy periods;
that the CSLR operator reasonably believes (having regard to actuarial principles) is the portion attributable to the sub - sector.
Note: A single instrument under subsection (1) may determine estimates for several sub - sectors.
(3) The legislative instrument must include each of the amounts referred to in subparagraphs (1)(b)(i) to (v) and paragraph (2)(c).
ASIC's administrative costs
(4) Before the second levy period or a later levy period, ASIC may notify the CSLR operator of the administrative costs that ASIC has incurred, or expects to incur, for the levy period in performing ASIC's functions:
(a) under this Act; and
(b) under Part 7.10B of the Corporations Act 2001 ; and
(c) under Part 5A.1 or 7.6 of that Act, or Part 2 - 2 of the National Consumer Credit Protection Act 2009 , relating to:
(i) liability to pay instalments of levy; or
(ii) payments by the CSLR operator.
Reconciliation for earlier levy periods--annual levy
(5) The CSLR operator may, for an earlier levy period and a sub - sector, work out whether the sum of the total amount of levy paid that was earlier imposed by section 8 or 9 of the Levy Act:
(a) for that earlier levy period; and
(b) in relation to claims, fees and costs estimates for that earlier levy period and the sub - sector:
falls short of, or exceeds, the most recent claims, fees and costs estimate for that earlier levy period and the sub - sector.
Reconciliation for first levy period--levy for pre - CSLR complaints
(a) the total amount of levy paid that was earlier imposed by section 10 of the Levy Act for the first levy period; and
(b) the total amount of levy paid that was earlier imposed by section 8 or 9 of the Levy Act for a levy period in relation to amounts:
(i) referred to in paragraph (1)(d) of this section; and
(ii) included in claims, fees and costs estimates for that earlier levy period;
falls short of, or exceeds, the most recent revised estimate determined under section 12 of this Act.
Reconciliation for first levy period--estimate of costs
(7) The CSLR operator may, for the first levy period and a sub - sector, work out whether the estimate under subsection 1069M(1) of the Corporations Act 2001 for the first levy period and the sub - sector:
(a) falls short of; or
(b) exceeds;
the revised costs determined under subsection 1069M(3) of that Act for the first levy period and the sub - sector.
Reconciliations--no double counting
(8) The same shortfall or excess worked out under subsection (5), (6) or (7) is not to be included in an estimate under subsection (1) more than once.