Explanatory Memorandum
(Circulated by authority of the Minister for Revenue and Financial Services, Minister for Women and Minister Assisting the Prime Minister for the Public Service the Hon Kelly O'Dwyer MP)General outline and financial impact
Amendments relating to ASIC fees
The ASIC Fees Bill, the Credit ASIC Fees Bill, the ASIC Superannuation Auditor Registration Bill and the SIS ASIC Fees Bill amend the Corporations (Fees) Act 2001, National Consumer Credit Protection (Fees) Act 2009, Superannuation Auditor Registration Imposition Act 2012 and the Superannuation Industry (Supervision) Act 1993 to allow ASIC to better align its fees, by enabling ASIC to charge a cost reflective fee for the services it provides for a specific entity.
Date of effect: The day after Royal Assent.
Proposal announced: The ASIC Fees Bill, the Credit ASIC Fees Bill, the ASIC Superannuation Auditor Imposition Bill and the SIS ASIC Fees Bill implement the second and final phase of the Industry Funding Model for ASIC, fulfilling the Government's commitment to implement recommendation 29 of the Financial System Inquiry announced on 20 April 2016.
Financial impact: These bills, in conjunction with the ASIC Supervisory Cost Recovery Levy Act 2017 , the ASIC Supervisory Cost Recovery Levy (Collection) Act 2017 and the ASIC Supervisory Cost Recovery Levy (Consequential Amendments) Act 2017, will improve the underlying cash balance by $308.7 million over the forward estimates.
| 2017-18 | 2018-19 | 2019-20 | 2020-21 | Total | |
| Net impact on UCB | -46.0 | 138.2 | 102.0 | 114.5 | 308.7 |
Human rights implications: The ASIC Fees Bill, the Credit ASIC Fees Bill, the ASIC Superannuation Auditor Registration Bill and the SIS ASIC Fees Bill do not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to 2.4.
Compliance cost impact: The compliance cost impact of the industry funding model and additional accountability mechanisms for ASIC is an estimated $8.8 million per annum.
Summary of regulation impact statement
Regulation impact on business
Impact: An estimated increase of $8.8 million in compliance costs per annum for the industry funding model and additional accountability mechanisms.
Main points:
The introduction of an industry funding model and additional accountability mechanisms for ASIC will:
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- promote equity as the recipients of a government activity bear its costs;
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- improve the efficiency, productivity and responsiveness of government activities and accountability for those activities
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- increase cost consciousness for all stakeholders by raising awareness of how much a government activity costs;
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- allow ASIC to better predict, monitor, and respond to market risks, improving outcomes for consumers; and
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- allow for the redirection of hundreds of millions of taxpayer dollars towards activities that benefit a broader suite of taxpayers.
While the regulatory burden of an industry funding model and additional accountability mechanisms for ASIC is an estimated $8.8 million per annum, this is small relative to industry funding's benefits and will decline over time as processes to support additional data collection requirements become 'business as usual'.