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Thursday 11 November 2021

21-299MR Industry funding: 2020-21 Cost Recovery Implementation Statement

ASIC today published its 2020-21 Cost Recovery Implementation Statement (CRIS) as required under the industry funding model. 

The statement details ASIC’s estimated levies by industry sector and subsector. ASIC released the draft CRIS in July 2021 (ASIC 21-185MR) for industry feedback. The final statement summarises the feedback we received. The actual levies will be published in December 2021 and invoiced in January 2022.

ASIC is well aware of the challenges and difficulties facing many businesses due to the COVID-19 pandemic, and their concern has been highlighted in the industry feedback. We will continue to consider applications for waivers on a case-by-case basis. 

Background

ASIC’s budget is set by the Australian Government. ASIC is required to detail, in the form of a CRIS, how the cost of ASIC’s regulatory activities will be recovered from each industry subsector it regulates through industry funding levies and how transaction-based regulatory costs will be recovered via fees for service.

The CRIS includes:

  • an explanation of the cost recovery model, including the business process, outputs and how we allocate costs to calculate the levies and fees for service
  • a forecast of ASIC’s regulatory costs, with actual levies due to be published in December 2021, and invoices will be issued in January 2022
  • estimates of the levies that each regulated subsector will pay. Indicative levies are a guide only. They are based on our planned regulatory work and estimated levies to recover regulatory costs at the beginning of the financial year
  • actual costs ASIC incurred in the previous year for each subsector and the variance between the actual costs and the estimated costs in last year’s CRIS. Where there is a material variance, the CRIS explains the drivers for the variance; and
  • an assessment of the risks associated with the industry funding model and how those risks have been managed.

On 30 August 2021, the Treasurer and the Minister for Superannuation, Financial Services and the Digital Economy announced temporary and targeted relief for financial advisers, reducing the actual levies that will be charged for licensees that provide personal advice to retail clients. The relief will see the graduated component of the actual levies for the subsector restored to their 2018-19 level. Visit our website to find out more about industry funding.

Last updated: 12/11/2021 01:10