ASIC industry funding legislation – how will your company be affected?

The ASIC industry funding model commenced on 1 July 2017. This model will see a new system of levies introduced across the range of different entities which come under ASIC’s control. The first invoices are expected to be issued in January 2019 and will recover costs for regulatory services for the 2017-2018 financial year.

ASIC have released preliminary details of how this new system of cost recovery will work. Entities will be charged either a flat or graduated annual levy. The flat levies will be calculated using the ASIC regulatory costs for the subsector divided by the number of entities that belong to that subsector for the financial year. Table 1 summarises how the levy will be calculated for entities in the Corporate sector.

TABLE 1: LEVIES APPLICABLE TO CORPORATE ENTITIES
Subsector Levy metric
Small proprietary limited companies Flat levy – to be charged via an increase in the annual review fee for proprietary companies
Large proprietary companies Flat levy
Unlisted public companies Flat levy
Registered company auditors Flat levy
Auditors of disclosing entities Graduated – based on audit fee revenue
Registered liquidators Graduated –  based on number of appointments – $2,500 minimum
Listed public companies Graduated levy based on market capitalisation
  • Market cap < $5 million: $4,000 levy
  • Market cap between $5 million and $20 billion: $4,000 + graduated component
  • Market cap > $20 billion: $664,000 levy

ASIC have released the following timetable for the release of further information on the levy amounts and timing of the invoices as follows:
  • October 2017 — Cost Recovery Implementation Statement (CRIS) is published, which includes levy cost pools for each subsector for the 2017–2018 financial year
  • March 2018 — Indicative levies for 2017–2018 are published
  • June 2018 — Indicative levies for 2018–2019 are published
  • July 2018 — Portal opens to stakeholders to enter 2017–2018 data
  • January 2019 — First invoices sent to stakeholders for the 2017–2018 financial year

We will keep you apprised of any news as it comes to hand.

If you would like any further information on ASIC’s new cost recovery framework, please contact Emily Wiltshire on ewiltshire@moorestephens.com.au