subscribe to our newsletter
ASIC levy to jump by 150%

ASIC levy to jump by 150%

Treasury has released its proposed levies for ASIC and APRA for the 2016-17 financial year, with the levy for the corporate regulator set to increase by 150 per cent.

In a consultation paper titled Proposed Financial Institutions Supervisory Levies for 2016-17, Treasury revealed the prudential regulator APRA will require $131.3 million for the next financial year, with $122.1 million to be raised via a levy on the industry.

As for ASIC, $70.4 million will be required to partially offset its regulatory costs – up 150 per cent on last year’s $28.2 million.

The increase stems from the government’s announcement in April 2016 that it will bolster ASIC with a $127.2 million funding increase.

About $22.2 million of the ASIC levy will be paid for by authorised deposit-taking institutions, including both small and large banks, under the proposals.

The superannuation industry will put forward $24.5 million for ASIC, while life insurers and general insurers would pay $10.5 million and $13.2 million, respectively.

“From 2017-18 onwards, ASIC’s regulatory costs will be recovered from all industry sectors regulated by ASIC,” the paper states.

“The government will consult extensively with industry to refine and settle an industry funding model for ASIC.”

Federal Treasurer Scott Morrison announced last month that the government will equip ASIC with stronger powers and funding to combat misconduct in the financial services industry.

[Related: Industry welcomes ASIC funding model]

ASIC levy to jump by 150%
mortgagebusiness logo

Latest News

All of Australia’s capital cities have been sensitive to housing market cycles over the past three decades, with price growth dominance sh...

Smaller lenders “remain constrained” by the “unfair playing field” benefitting the larger banks, the CEO of a non-major lender has s...

The New Zealand-based banking group’s proposed restructure will see its burgeoning Australian reverse mortgage business freed from the cen...

FROM THE WEB

podcast

LATEST PODCAST: Mortgage brokers take a tumble in Governance Institute’s annual Ethics Index

Do you expect access to credit to get harder this year?