Under the ASIC Supervisory Cost Recovery Levy Act 2017 (Cth) which became law from 1 July 2017, all companies regulated under the Corporations Act 2001 (Cth) will be required to contribute toward ASIC’s regulatory costs for the previous financial year through the imposition of the annual ASIC Supervisory Cost Recovery Levy.
While the actual amount of the levy has not yet been determined, on 28 March 2018 ASIC published indicative levy amounts for the 2018 financial year. These indicative levies are based on ASIC’s budgeted regulatory costs as outlined in its draft Cost Recovery Implementation Statement, published in May 2018. Some companies will pay a flat levy and others will pay a graduated levy where the size or level of business will determine the entity’s share of the cost.
In June 2018, ASIC will contact all companies to request that they provide or validate information regarding their business activity. ASIC will use this information to calculate the final levy amount for each company for the 2018 financial year, with invoices to be issued in January 2019.
Importantly, at this stage, there is to be no exemption or reduction in the levy for charities. Many charities are established as companies limited by guarantee and are estimated to pay a levy amount of $321 for the 2018 financial year. This is a significant additional cost for smaller charities.