ASIC Supervisory Cost Recovery Levy Amendment (Levies Relief) Regulations 2021

Administered by Department of the Treasury

Legislation au F2021L01539 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the Treasurer

ASIC Supervisory Cost Recovery Levy Act 2017

ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021

Section 13 of the ASIC Supervisory Cost Recovery Levy Act 2017 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021 (the Amendment Regulations) temporarily reduce the cost of ASIC levies for the sub-sector that is licensees that provide personal advice on relevant financial products to retail clients (the sub-sector).

Under the ASIC Industry Funding Model, ASIC must set a total levy amount for each sub-sector equal to the costs of regulating that sub-sector. The ASIC Supervisory Cost Recovery Regulations 2017 split the levy amount for the sub-sector into a fixed minimum fee and a variable graduated levy component for each licensed entity. The levy for the subsector is calculated by a fixed cost of $1,500 per licensed entity and a graduated levy component contingent on the number of advisers authorised by the licensed entity.

On 30 August 2021 the Australian Government announced temporary and targeted relief for the sub-sector. The Government announced that it would cap the graduated levy component per adviser for two years, in response to significant increases in costs for the sub-sector. The Amendment Regulations set the maximum cost of the graduated levy component per adviser to the level it was at in 2018-19 (i.e. $1,142).

The Amendment Regulations prescribe an amount that ASIC must not include in its calculation of regulatory costs. The amount to be excluded is any amount that causes the graduated levy component per adviser for the sub-sector to exceed $1,142. This exclusion creates an effective cap on the graduated levy component at $1,142 per adviser.

The Amendment Regulations apply to levies payable in relation to ASIC’s regulatory costs for 2020-21 and 2021-22. Details of the Amendment Regulations are set out in Attachment A.

Consultation was undertaken with the ASIC. Public consultation was not undertaken in order to implement the levy relief in respect of the 2020-21 financial year. The Office of Best Practice Regulation assessed the amendments as having nil regulatory impacts and as such no regulatory impact analysis was required.

The Amendment Regulations are a legislative instrument for the purposes of the Legislation Act 2003. The Amendment Regulations commenced the day after registration. A statement of Compatibility with Human Rights is at Attachment B.

ATTACHMENT A

Details of the ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021

Section 1 – Name of the Regulations

This section provides that the name of the Regulations is the ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021 (the Amendment Regulations).

Section 2 – Commencement

The Amendment Regulations commence the day after the instrument is registered on the Federal Register of Legislation.

Section 3 – Authority

The Amendment Regulations are made under the ASIC Supervisory Cost Recovery Levy Act 2017.

Section 4 – Schedule

This section provides that each instrument that is specified in the Schedules to this instrument will be amended or repealed as set out in the applicable items in the Schedules, and any other item in the Schedules to this instrument has effect according to its terms.

Schedule 1 – Amendments

This schedule prescribes an amount that ASIC must not include in its calculation of regulatory costs in the years 2020-21 and 2021-22. The amount to be excluded is any amount that causes the ASIC graduated levy component per adviser to exceed $1,142 for the licensees that provide personal advice on relevant financial products to retail clients sub-sector. This exclusion creates an effective cap on the graduated levy component at $1,142 per adviser.


ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021 (the Amendment Regulations) reduce the cost of ASIC levies for licensees that provide personal advice on relevant financial products to retail clients. The Amendment Regulations set the maximum cost of the ASIC graduated levy component per adviser to the level it was at in 2018-19.

The Amendment Regulations apply to levies payable in relation to ASIC’s regulatory costs for the 2020-21 and 2021-22 financial years.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021 were enacted to provide temporary relief to the financial advice sub-sector by capping the graduated levy component at $1,142 per adviser for the 2020-21 and 2021-22 financial years. These regulations were introduced to address the significant cost increases experienced by the sub-sector and were made under the authority of the ASIC Supervisory Cost Recovery Levy Act 2017. The policy objective behind these amendments was to offer targeted support to the financial advice industry, ensuring that the increased regulatory costs did not disproportionately impact the sub-sector. The regulations were not subject to public consultation but were assessed to have no regulatory impacts, leading to the conclusion that no regulatory impact analysis was required.

Scope and Application

The ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021 apply to the sub-sector of licensees that provide personal advice on relevant financial products to retail clients, setting a temporary cap on the graduated levy component at the 2018-19 level of $1,142 per adviser. This measure is intended to alleviate the financial burden on this sub-sector, which has experienced significant cost increases. The Amendment Regulations operate within the framework of the ASIC Supervisory Cost Recovery Levy Act 2017, and their purpose is to modify the regulatory costs for the 2020-21 and 2021-22 financial years. The regulations are a legislative instrument made under the authority of the Act and commenced the day after their registration on the Federal Register of Legislation. They do not extend beyond the specified financial years and are not subject to any exclusions or exemptions beyond what is outlined in the regulations themselves. The regulations aim to ensure that any amount causing the graduated levy component per adviser to exceed the specified cap is not included in the calculation of regulatory costs, thereby effectively maintaining the cap.

Key Provisions

The ASIC Supervisory Cost Recovery Amendment (Levies Relief) Regulations 2021 (Amendment Regulations) are designed to provide temporary relief to a specific sub-sector of financial advisors by adjusting the regulatory costs they incur. Specifically, these regulations aim to reduce the cost of Australian Securities and Investments Commission (ASIC) levies for licensees who provide personal advice on relevant financial products to retail clients. Under Section 4 of the Amendment Regulations, ASIC must exclude any amount that would cause the graduated levy component per adviser to exceed $1,142 for the years 2020-21 and 2021-22. This effectively caps the graduated levy component at $1,142 per adviser for the specified sub-sector. The Amendment Regulations impose obligations on ASIC to adjust the calculation of regulatory costs by excluding certain amounts that would otherwise increase the graduated levy component beyond the specified cap. This adjustment ensures that the financial burden on the sub-sector does not escalate beyond the 2018-19 levels, thereby providing relief to licensees who may have been facing significant cost increases. Furthermore, the regulations require that these adjustments be applied consistently across the sub-sector to maintain fairness and transparency in the regulatory process. Failure to comply with the requirements set out in the Amendment Regulations could result in civil or criminal consequences. Although the specific penalties for non-compliance are not detailed in the explanatory statement, breaches of regulatory requirements can typically lead to fines, legal action, or other enforcement measures. The precise penalties would depend on the nature and severity of the breach, but they underscore the importance of adhering to the stipulated caps and exclusions to avoid legal repercussions. The Amendment Regulations also establish a clear timeframe for their application, specifying that they apply to levies payable in relation to ASIC’s regulatory costs for the financial years 2020-21 and 2021-22. This temporal limitation ensures that the relief measures are temporary and targeted, aligning with the government's intention to provide short-term support during a period of financial strain for the affected sub-sector. Finally, the compatibility statement confirms that these regulations do not infringe upon any human rights, reinforcing their legitimacy and the government's commitment to balanced regulatory measures.

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Area of Law
Regulatory Standards
Instrument
Regulation
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Definitions & Interpretation
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levy
graduated levy component

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.