With effect from 1 July 2017, Asic’s regulatory costs will be recovered by annual levies on all industry sectors that fall under the watchdog’s purview.
Under the new arrangement, those who create the need for and benefit from regulation will bear the costs, introducing an economic incentive to drive desired regulatory outcomes.
The move, which enjoyed widespread support across the political spectrum, was welcomed by Asic chairman Greg Medcraft: “This is an important milestone not just for Asic, but also for the companies and wider corporate sector that we regulate.
“Industry funding, in one form or another, applies to other areas of public oversight in Australia and in many comparable economies around the world.
“Not only will the different elements of the broad business sector more fairly share the load, but the taxpaying public will benefit through the more accountable use of the funds provided for the task.
“Australia already has an admired system of corporate regulation supported by rule of law. These new funding arrangements will help ensure that remains the case,” Medcraft said.