Date posted: 18/08/2021

Submission on ASIC levies 2020-21

Our members face increased levies from ASIC for work undertaken in 2020-21.

On 13 August 2021, CA ANZ provided comments to ASIC on the Cost Recovery Implementation Statement for 2020-21 (CRIS 2020-21).

We repeated our concerns with the ASIC process, in particular, that the release of the draft CRIS 2020-21in July 2021 does not meet the purpose of the model, to improve cost transparency and accountability to industry.

For auditors, the impact of these increases, and the lack of timely communication, will see many regional, small and medium audit practices reducing their audit work or ceasing work as auditors altogether. For financial planners, dramatic year-on-year increases has resulted in a sustained reduction in the number of financial advisers from 26,000 in 2017-18, dropping to around 20,000 currently.

For our registered liquidators, the impact of stimulus measures to sustain businesses has resulted in insolvency work halving. Therefore, it does not seem reasonable that ASIC’s cost to regulate the same population has increased substantially. We have sought for ASIC to wavier 2020-21 levies for registered liquidators.

We further requested that, for every activity in each sub-sector, where actual cost and therefore the levy varies by more than 10% from these estimates, an explicit explanation be provided. We have also requested for ASIC to hold itself accountable to its self-determined timeline for the release of information related to levies.

We would like to thank the members of CA ANZ for contributing to the feedback provided.

Shameful ASIC fee increase warrants an immediate review  

Five of Australia's largest financial advice industry associations have condemned an increase in financial adviser licence fees as "shameful".

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