Late last year the Government announced it would introduce an industry funding model for ASIC (our previous update on this can be found here). The ASIC Supervisory Cost Recovery Levy Bill 2017 and related bills have now passed. Effective from 1 July 2017, ASIC’s regulatory costs will be recovered through annual levies from all industry sectors regulated by ASIC.
The amount of the levy will be worked out in accordance with regulations. Whilst the relevant regulations have not yet been passed, the draft regulations apply either a flat or a graduated levy to entities in each industry subsector regulated by ASIC. The draft regulations:
- establish the criteria for determining the subsectors an entity is a part of;
- set out the formulas and metrics to be used for calculating the amount of levy payable for entities in each subsector;
- provide for ASIC to make an annual legislative instrument specifying information about each of the regulated industry subsectors that must be used in the formulas; and
- prescribe certain amounts that should not be included as part of ASIC’s regulatory costs.
The regulations are expected to be passed shortly, ahead of the commencement of the model on 1 July 2017.