FAQs: ASIC Industry funding

Most of ASIC's regulatory costs will be recovered from industry. These activities are outlined in our Cost recovery implementation statement (CRIS) published each year, and include stakeholder engagement, education, guidance, surveillance, enforcement, and policy advice.

An 'industry pays' model means that the funding of regulatory activities undertaken by ASIC is met by those creating the need for regulation, rather than the Australian taxpayer.

The costs and levies payable by industry sectors to recover ASIC’s regulatory costs will be summarised each year in December – see Regulatory costs and levies. Levy notices to individuals and entities to recover these costs are issued between January and March for each leviable year. The levy notices are due for payment 30 business days after issue.

• Estimated costs and levies are provided in the annual Cost recovery implementation statement. The figures are indicative only.
• The final levies payable by each industry subsector found in the summary.
• Individual entities can calculate their specific levy notice amount from the information.
• Levy notices are issued between January and March for each leviable year.

A flat levy shares the total cost of regulating a subsector equally among the entities authorised to operate in that subsector. A flat levy will be calculated by dividing ASIC's regulatory costs for a subsector between the number of entities in that subsector.

In some subsectors, an entity's size or level of business activity will drive the level of risk and regulatory effort required from ASIC and therefore the levy charged. A graduated levy will be calculated by dividing ASIC's regulatory costs for a subsector between entities based on the relevant metric and can be made up of (i) a minimum levy and (ii) a variable levy component.

• The minimum levy is an estimate of our direct and indirect costs of undertaking stakeholder engagement, policy advice, guidance, education and a portion of our capital expenditure allowance. Our remaining regulatory costs for the subsector will be recovered through the variable component of the levy.
• The variable component of the graduated levy is driven by our enforcement and surveillance activities for each subsector. The cost to undertake these regulatory activities varies significantly—the conduct and behaviour of industry participants influences our resulting risk assessment of the subsector and the level of regulatory oversight required.

Under the graduated levy component formula, all entities in the subsector must pay (i) the minimum levy, and (ii) the additional variable component, based on each entity's share of relevant activity within the subsector.

If an entity holds more than one licence or registration, the levy relevant for each subsector is payable. For example, if an entity is both a super trustee and a listed company, both levies will be payable and their levy notices will reflect this.

What subsector is my entity in? (PDF 249 KB)

If your organisation is regulated by ASIC, you must register and maintain contact details on the ASIC Regulatory Portal. You may also be required to submit business activity metrics via the portal between July and September/October each year.

ASIC will use this information each year to calculate each entity’s share of the regulatory costs for the sectors in which they are authorised to operate.

For more information on your obligations each year, see What industry need to do each year.

Note: If the entity is a small proprietary limited company and does not fall into one of the other subsectors then they will only pay a small increase in their Annual Review Fee. However, if they are a small proprietary company that is also part of one of our other regulated populations, the company will also be required to submit contact details and business activity metrics in the portal.

The ASIC website contains a definition of a small proprietary company.

Yes. The levies will be tax deductible. This is consistent with the approach for other Government cost recovery models, such as APRA’s Financial Institution Supervisory Levy.

No. The levies are not subject to GST.

Our Corporate Plan has information on ASIC’s strategic priorities and focus for the next four years. The ASIC Annual Report outlines what we have achieved each year.

The Cost recovery implementation statement (CRIS) outlines ASIC's forecasted regulatory costs and activities by subsector for each financial year and provides details on how ASIC allocated its costs in the previous year. The CRIS will also provide industry with indicative levies for the following year to help them plan.

Industry can use the data in the CRIS to estimate their levy notice. However, indicative levies remain an estimate and the amounts are likely to change when ASIC’s actual regulatory costs are known in December each year.

ASIC aims to publish a summary of its final regulatory costs from the previous financial year each December. See Regulatory costs and levies.

ASIC's budget will continue to be determined by the Government as part of its Federal Budget process.

Fees for service are user initiated. A regulatory form is lodged with ASIC for each fee-for-service activity.

Visit Fees-for-service activities for more information.

A levy notice is your industry funding invoice. The levy notice is issued between January and March each leviable year and is payable by the entity.

Industry funding levy notices are due for payment 30 business days after the levy notice is issued.

BPAY

Use the BPAY details provided on your levy notice to pay using BPAY. You must ensure the BPAY reference number is correct. The BPAY reference number will begin with the digits ‘309’.

Ensure you allow three business days for electronic processing.

Electronic Funds Transfer

Use the Electronic Funds Transfer details provided on your levy notice to transfer directly from your financial institution. You must ensure the Electronic Funds Transfer reference number is correct. The Electronic Funds Transfer reference number will begin with the digits ‘309’.

Credit card

The credit card payment option is available using the ASIC Regulatory Portal. Portal account holders can log in to their portal account to view their industry funding levy notice and make a payment online

Your levy notice contains details explaining how your levy was calculated. The detailed information about how we calculate industry funding levies is outlined in the ASIC cost recovery regulations and ASIC’s Cost recovery implementation statement.

If payment is not received by the due date you may need to pay additional fees. For more information, see Industry funding penalties.

We will only consider waiving a levy or penalty in exceptional circumstances when there were issues beyond the control of all representatives of the entity. How to apply for an industry funding levy or penalty waiver.

You can request a refund if you have accidently overpaid. We will provide a refund in the same way you made payment. Details on industry funding refunds.

In some cases, we can arrange a payment plan that allows you to make industry funding payments in instalments.

Details on how to apply for a payment plan.

Entities are able to estimate their levy amount based on the summary of levies – see Regulatory costs and levies.

The actual levy amount outlined on each levy notice was calculated on a value up to 10 decimal points.

Detailed information about how ASIC calculates levies is available in the ASIC cost recovery regulations.

Example: for the listed corporations subsector, the levy summary states $25.92 per $1 million of market capitalisation above $5 million. The actual calculation of the levy has been calculated based on $25.924737 per $1 million of market capitalisation above $5 million.

If you have received a levy notice via mail (rather than online) it means that you may not have registered an ASIC Regulatory Portal account to confirm or submit relevant information to ASIC. You are encouraged to register an ASIC Regulatory Portal account for future correspondence with ASIC.

Your levy notice contains details explaining how your levy was calculated. The detailed information about how we calculate industry funding levies is outlined in the ASIC cost recovery regulations.

All entities regulated by ASIC must pay their levy notice by the due date each year.

All entities regulated by ASIC must pay their levy notice by the due date.

In July ASIC contacted entities that we considered could be large proprietary companies. Directors are required to register contact details on the ASIC Regulatory Portal and where relevant, submit or confirm business activity metrics by the due date in September/October.

During this process the entity was given the opportunity to 'opt-out' of the sector by confirming whether or not the entity was a large proprietary company at any time during the relevant financial year.

If directors failed to meet this reporting obligation, ASIC has issued levy notices on the basis that these companies are large proprietary companies.

Definition of a small proprietary company.

Definition of a large proprietary company.

All entities regulated by ASIC must pay their levy notice by the due date.

In July, ASIC contacted each industry funding stakeholder with detailed instructions on how to meet their obligations.

For those that failed to meet this reporting obligation, ASIC has used the data available to calculate the entity’s share of the regulatory costs for the sector in which it is authorised to operate.

The Government's industry funding arrangements for ASIC became law in 2017.

In these cases, your industry funding levy notice will contain levies for two subsectors. Example: the levy notice for an unlisted public company that was changed to a large proprietary company will have levies for both of these subsectors.

Industry funding levies are payable by all entities authorised to operate in a subsector in any given financial year - irrespective of the duration the licence was held for that year.

Entities that are registered with the Australian Charities and Not-for-profits Commission (ACNC) as at 30 June each year are exempt from ASIC's industry funding levy for each relevant financial year.

If you received a levy notice for a company that acted solely as the trustee of a charity registered with the ACNC, you may request ASIC waive this levy.

We will require you to attach a statutory declaration signed by a company director or secretary stating that the company undertook no other activities during the relevant financial year other than as trustee of a charity registered with the ACNC.

Details on how to apply for an industry funding levy waiver.

ASIC Regulatory Portal account holders can log into their portal account to view their industry funding levy notice and make a payment online. The page has information on what to do if you have forgotten your password.

If you are not a registered portal user, you need to be invited to connect to the entity by the senior administrator of the portal account before you can log in and view the levy notice.

What the senior administrator of the portal account needs to do

If the alternative email address nominated is not owned by you – follow these steps if you would like them to be able to view the levy notice. Follow these steps for each of your entities as required.

1. Log in to your portal account.
2. Select your entity.
3. Click on ‘Administration’ in the banner and select ‘Entity Contacts’.
4. Make a note of the alternate email address you nominated to receive your industry funding levy notice.
5. Select the ‘Users’ tab.
6. Select ‘Invite new user to entity' and insert the alternate email address noted in step 4.
7. Allocate their Access level.

We will send an invitation key to your billing contact. Note: This invitation key will be valid for 48 hours.

What the alternate email address nominated to receive the industry funding levy notice needs to do

1. Click on the link in the email received from ASIC.
2. Register for portal access by selecting the “I want to accept an invitation from a portal user” tile.
3. Enter the invitation key (which was sent to their email address) and other details to complete the registration process.

Note: The invitation key will be valid for 48 hours.

A detailed guide on the invitation process is available.

More details information about industry funding can be found in our FAQ section.

If you have missed the deadline and have not submitted your business activity metrics, you are still encouraged to register an ASIC Regulatory Portal account for future correspondence with ASIC.

The penalties in the legislation can apply if someone has not submitted metrics without a “reasonable excuse”. For those who believe they have a reasonable excuse they need to provide evidence by contacting us online. Ensure you select "Company" and then "Industry Funding" so the inquiry is sent to the correct team quickly. Please attach any documentary evidence.

For those that failed to meet the reporting obligation, ASIC has used the data available to calculate each entity’s share of the regulatory costs for the sector(s) in which it is authorised to operate.

In most cases, small proprietary companies do not have specific obligations relating to industry funding. ASIC will collect the associated regulatory costs for small proprietary companies through a small increase to their Annual Review Fee.

Note: Industry funding levies apply if the entity is a small proprietary limited company that falls into an industry funding subsector. The company may also be required to submit business activity metrics in the portal.

Large proprietary companies will also pay a small increase in their Annual Review Fee. This will be offset against the levy they are required to pay when their levy notice is calculated.

• Definition of a small proprietary company.
• Definition of a large proprietary company.

Charities registered with the Australian Charities and Not-for-profits Commission (ACNC) at 30 June each year are excluded from industry funding obligations and should not receive an industry funding levy notice from ASIC. If you do receive an industry funding levy notice please contact us and we will investigate why.

Only company directors or secretaries can perform initial entity registration in the ASIC Regulatory Portal. Once the director or secretary have registered they can then invite a trusted representative such as a company employee, a compliance officer, or a registered agent to the portal to connect to their entity and assign the them required user access to view confidential information and perform regulatory tasks on behalf of the entity

The director/secretary will only ever have to register and assign access to the trusted representative or registered agent, once for their entity.

The trusted representative or registered agent, will then receive an invitation to the portal for the relevant entity and will be able to perform the required duties on behalf of the entity which they represent, including for example, the submission of industry funding business activity metrics

The ASIC Market Integrity Rules (Securities Markets) 2017 require market participants to provide regulatory data to a market operator in an order transmitted to an order book of that market operator. Market participants must also provide this data on a trade report made to a market operator.

Regulatory data includes, amongst other things, the “intermediary ID”. The Australian Financial Services Licence (AFSL) number of an AFSL holder is provided as the intermediary ID for each side (buy and/or sell) of the order or transaction where:

• The AFSL holder is an automated order processing (AOP) client of the market participant; and
• The market participant has an arrangement with the AFSL holder under which the AFSL holder submits trading messages into the market participant’s system as intermediary for its own clients.

Regulatory data provided by market participants to market operators is subsequently provided to ASIC for the purpose of market supervision.

ASIC also determines the volume of trading by each AFSL holder by using intermediary ID data.

You should contact the market participant(s) of which you are an AOP client if you require confirmation of the volume of trading reported to ASIC.

Only licensees (not their representatives) are required to submit metrics in respect of credit and financial services related activities. Some representatives may be required to submit information in their capacity as a public company, a large proprietary company, a registered company auditor, registered liquidator or as a market intermediary. 'Regulated entities' are defined under the ASIC Supervisory Cost Recovery Levy Act 2017.