From 1 July 2017, the Australian Securities and Investments Commission’s (ASIC) regulatory costs are being allocated across 48 industry sub-sectors (PDF) based on the actual costs of ASIC’s regulation of each sub-sector in the previous financial year.

There are two ways in which ASIC will recover its costs:

Fees for service

New fees effective: 4 July 2018

For goods, services or regulation that ASIC provides directly to a specific individual or organisation, such as licencing, registrations, notifications, applications and document lodgements. These fees are fixed in advance. Some fees have been removed but most have increased to reflect ASIC’s actual costs.

Levies

Levies will be invoiced: January 2019

For goods, services or regulation that ASIC provides to a group of individuals or organisations, such as stakeholder engagement, education, surveillance, enforcement and policy advice. ASIC’s costs are shared based on metrics provided by those groups.

Around 90 per cent of ASIC’s regulatory activities will be recovered through levies, the remaining 10 per cent will be recovered via fees for service.

The fees for service Cost Recovery Implementation Statement (CRIS) and the levies CRIS will be combined into a single CRIS in October 2018. A CRIS is required to be published annually by ASIC.

Industry funding levies have an annual cycle. Between July and September each year, entities will need to log in to the ASIC Regulatory Portal and submit their industry funding business activity metrics for the previous financial year.

The information provided will enable ASIC to calculate the levies for each individual’s or entity’s share of the regulatory costs for the sector in which they operate.

ASIC cost recovery arrangements: 2017–18 details the methodology ASIC uses to calculate levies for each industry sector.

ASIC's costs 

The cost of ASIC's work in each sub-sector is forecast in its annual CRIS, which sets out the expected expenditure on its regulatory activities.

Key dates 

September 2018

All organisations regulated by ASIC (except small proprietary companies) must visit the ASIC Regulatory Portal and submit or validate business activity metrics for FY 2017-18.

October 2018

ASIC will publish indicative levies for FY 2018-19.

November 2018

ASIC will publish its regulatory costs for FY 2017–18, as well as FY 2017-18 levies by sub-sector.

January 2019

ASIC will issue invoices to industry for levies based on our FY 2017-18 regulatory costs. Organisations must pay their invoices within 30 business days or face penalties.

March 2019 +

ASIC will pursue late payments.

Levy types

An organisation’s levy for a financial year will be equal to its share of flat and graduated levies for each sub-sector it is a part of in the financial year.

Flat levy

A flat levy will share the total cost of regulating a sub-sector equally among the entities operating in that sub-sector.

The information you provide will confirm which sub-sector you have been operating in.

Graduated levy

A graduated levy will include two components:

  • a minimum amount paid by all entities in a sub-sector
  • a graduated amount based on each entity’s size or level of business activity.

The information you provide will confirm your entity's share of the leviable activities in your sub-sector and determine your final invoice amount.

Small proprietary companies

ASIC’s regulatory costs for small proprietary companies will be collected through a $4 increase to their Annual Review Fee, which took effect from 1 July 2018.

They are not required to visit the portal, or submit or validate business activity metrics.

A proprietary is defined as small for a financial year if it satisfies at least two of the following:

  • the consolidated revenue for the financial year of the company and any entities it controls is less than $25 million
  • the value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is less than $12.5 million
  • the company and any entities it controls have fewer than 50 employees at the end of the financial year.

Industry funding penalties 

A shortfall penalty applies if a person makes a false or misleading statement (including through omission) that results in a smaller levy being paid than should be the case. The penalty will be equal to twice the amount of the shortfall between the amount paid and the levy that should be payable.

Penalties exist for late payment of levies. The late payment penalty will be calculated monthly as 20 per cent per annum of the outstanding amount and charged monthly.

It is a criminal offence to fail to comply with the obligation to submit your business activity metric on ASIC’s Regulatory Portal by the due date.

Further information

Resources