{"id":"F2018L01590","name":"ASIC (Supervisory Cost Recovery Levy—Annual Determination) Instrument 2018/1063","slug":"asic-supervisory-cost-recovery-levy-annual-determination-instrument-2018-1063","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439841,"registerId":"F2018L01590-fast-fetch-1775955710651","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC (Supervisory Cost Recovery Levy—Annual Determination) Instrument 2018/1063","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: ASIC Template (Principal Legislative Instruments - April 2016)\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.jpeg)\n\nASIC (Supervisory Cost Recovery Levy—Annual Determination) Instrument 2018/1063\n\nI, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate  20 November 2018\n\n \n\n \n\nGrant Moodie\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc530489065)\n\n[1 Name of legislative instrument](#_Toc530489066)\n\n[2 Commencement](#_Toc530489067)\n\n[3 Authority](#_Toc530489068)\n\n[4 Definitions](#_Toc530489069)\n\n[Part 2—Determination](#_Toc530489070)\n\n[5 Applicable financial year](#_Toc530489071)\n\n[6 Sub-sector population](#_Toc530489072)\n\n[7 Sub-sector metrics—basic levy component and graduated levy component](#_Toc530489073)\n\n[8 IT percentage—large futures exchange participants](#_Toc530489074)\n\n[9 IT percentage—large securities exchange participants](#_Toc530489075)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC (Supervisory Cost Recovery Levy—Annual Determination) Instrument 2018/1063.\n\n2 Commencement\n\nThis instrument takes effect as follows:\n\n(a) if subsection 11(3) of ASIC Supervisory Cost Recovery Levy Act 2017 applies—the instrument takes effect on the day specified in paragraph 11(3)(a) of that Act;\n\n(b) if subsection 11(4) of ASIC Supervisory Cost Recovery Levy Act 2017 applies—the remaining provisions of the instrument take effect on the day specified in paragraph 11(4)(a) of that Act.\n\nNote 1: Section 11 of the ASIC Supervisory Cost Recovery Levy Act 2017 contains special provisions dealing with the disallowance and taking effect of instruments of this kind.\n\nNote 2: Subsection 9(9) of the ASIC Supervisory Cost Recovery Levy Act 2017 has the effect that the instrument can have retrospective application before the day it is registered on the Federal Register of Legislation. The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au).\n\n3 Authority\n\nThis instrument is made under section 73 of the ASIC Supervisory Cost Recovery Levy Regulations 2017.\n\n4 Definitions\n\nIn this instrument:\n\n(a) Regulations means the ASIC Supervisory Cost Recovery Levy Regulations 2017;\n\n(b) unless the contrary intention appears, an expression that:\n\n(i) is used, but not defined, in this instrument; and\n\n(ii) is defined in the Regulations;\n\nhas the same meaning in this instrument as in the Regulations.\n\nPart 2—Determination\n\n5 Applicable financial year\n\nThis determination applies to the 2017 – 2018 financial year.\n\n6 Sub-sector population\n\nFor the purposes of the definition of sub-sector population in subsection 4(1) of the Regulations, the sub-sector population for the sub-sector specified in column 2 of the table for the financial year is specified in column 3 of the table.  \n\n| Column 1 | Column 2 | Column 3 |\n| --- | --- | --- |\n| Item | Sub-sectors | Sub-sector population |\n| 1 | Auditors of disclosing entities | 123 |\n| 2 | Australian derivative trade repository operators | 2 |\n| 3 | Corporate advisors | 339 |\n| 4 | Credit intermediaries | 5,124 |\n| 5 | Credit providers | 1,155 |\n| 6 | Credit rating agencies | 7 |\n| 7 | Custodians | 1,023 |\n| 8 | Deposit product providers | 244 |\n| 9 | Exempt CS facility operators | 1 |\n| 10 | Exempt market operators | 32 |\n| 11 | Insurance product distributors | 3,043 |\n| 12 | Insurance product providers | 105 |\n| 13 | Large futures exchange operators | 1 |\n| 14 | Large futures exchange participants | 41 |\n| 15 | Large proprietary companies | 11,333 |\n| 16 | Large securities exchange operators | 2 |\n| 17 | Large securities exchange participants | 68 |\n| 18 | Licensees that provide only general advice to retail clients or wholesale clients | 1,014 |\n| 19 | Licensees that provide personal advice on relevant financial products to retail clients | 2,985 |\n| 20 | Licensees that provide personal advice to only wholesale clients | 1,511 |\n| 21 | Licensees that provide personal advice to retail clients on only products that are not relevant financial products | 649 |\n| 22 | Listed corporations | 2,177 |\n| 23 | Managed discretionary account providers | 198 |\n| 24 | Margin lenders | 22 |\n| 25 | Operators of investor directed portfolio services | 93 |\n| 26 | Overseas market operators | 10 |\n| 27 | Over-the-counter traders | 68 |\n| 28 | Payment product providers | 652 |\n| 29 | Public companies (unlisted) | 16,014 |\n| 30 | Registered company auditors | 4,453 |\n| 31 | Registered liquidators | 718 |\n| 32 | Responsible entities | 471 |\n| 33 | Retail over-the-counter derivatives issuers | 105 |\n| 34 | Risk management product providers | 58 |\n| 35 | Securities dealers | 886 |\n| 36 | Small amount credit providers | 195 |\n| 37 | Small derivative market operators | 6 |\n| 38 | Small futures exchange operators | 1 |\n| 39 | Small securities exchange operators | 2 |\n| 40 | Small securities exchange operators with self-listing function only | 1 |\n| 41 | Superannuation trustees | 139 |\n| 42 | Tier 1 clearing and settlement facility operators | 4 |\n| 43 | Tier 2 clearing and settlement facility operators | 1 |\n| 44 | Tier 3 clearing and settlement facility operators | 1 |\n| 45 | Tier 4 clearing and settlement facility operators | 1 |\n| 46 | Traditional trustee company service providers | 13 |\n| 47 | Wholesale electricity dealers | 44 |\n| 48 | Wholesale trustees | 1,626 |\n\n\n7 Sub-sector metrics—basic levy component and graduated levy component\n\nFor the purposes of the definitions of:\n\n(a) basic levy component in subsection 9(1) of the Regulations; and\n\n(b) graduated levy component in subsection 10(1) of the Regulations;\n\nthe applicable sub-sector metric for the sub-sector specified in column 2 of the table for the financial year is specified in column 3 of the table.\n\n \n\n- Column 1 Column 2 Column 3\n- Item Sub-sectors Sub-sector metric\n- Basic levy component(as applicable) Graduated levy component(as applicable)\n- 1 Auditors of disclosing entities 470,569,745\n- 2 Australian derivative trade repository operators 730\n- 3 Corporate advisors 3,865,259,609\n- 4 Credit intermediaries 37,374\n- 5 Credit providers 561,253,358,709\n- 6 Credit rating agencies 1,095\n- 7 Custodians 1,023\n- 8 Deposit product providers 2,263,038,282,872\n- 9 Exempt CS facility operators 365\n- 10 Exempt market operators 10,148\n- 11 Insurance product distributors 3,043\n- 12 Insurance product providers 42,815,225,400\n- 13 Large futures exchange operators 365\n- 14 Large futures exchange participants 194,675,925 (messages)24,159,848 (transactions)\n- 15 Large proprietary companies 11,333\n- 16 Large securities exchange operators 1,583,948,176,362\n- 17 Large securities exchange participants 3,391,845,789 (messages)806,322,001 (transactions)\n- 18 Licensees that provide only general advice to retail clients or wholesale clients 1,014\n- 19 Licensees that provide personal advice on relevant financial products to retail clients 22,652\n- 20 Licensees that provide personal advice to only wholesale clients 1,511\n- 21 Licensees that provide personal advice to retail clients on only products that are not relevant financial products 229,700\n- 22 Listed corporations 1,386,851,193,609\n- 23 Managed discretionary account providers 69,269\n- 24 Margin lenders 7,835\n- 25 Operators of investor directed portfolio services 630,030,930\n- 26 Overseas market operators 3,000\n- 27 Over-the-counter traders 2,510\n- 28 Payment product providers 227,339\n- 29 Public companies (unlisted) 16,014\n- 30 Registered company auditors 4,453\n- 31 Registered liquidators 65,900\n- 32 Responsible entities 1,194,276,323,558\n- 33 Retail over-the-counter derivatives issuers 37,076\n- 34 Risk management product providers 20,074\n- 35 Securities dealers 89,900,391,621\n- 36 Small amount credit providers 1,527,220,643\n- 37 Small derivative market operators 4,196\n- 38 Small futures exchange operators 0\n- 39 Small securities exchange operators 730\n- 40 Small securities exchange operators with self-listing function only 365\n- 41 Superannuation trustees 1,528,474,127,703\n- 42 Tier 1 clearing and settlement facility operators 1,460\n- 43 Tier 2 clearing and settlement facility operators 365\n- 44 Tier 3 clearing and settlement facility operators 365\n- 45 Tier 4 clearing and settlement facility operators 365\n- 46 Traditional trustee company service providers 4,745\n- 47 Wholesale electricity dealers 44\n- 48 Wholesale trustees 570,254\n\n\n8 IT percentage—large futures exchange participants\n\nFor the purposes of the definition of IT percentage in subsection 64(5) of the Regulations, the percentage for the financial year is 25.02%, being the percentage that corresponds to the extent to which the sub-sector regulatory costs in relation to the large futures exchange participants sub-sector for the financial year are attributable to costs relating to information technology.\n\n9 IT percentage—large securities exchange participants\n\nFor the purposes of the definition of IT percentage in subsection 65(5) of the Regulations, the percentage for the financial year is 28.38%, being the percentage that corresponds to the extent to which the sub-sector regulatory costs in relation to the large securities exchange participants sub-sector for the financial year are attributable to costs relating to information technology.\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument does not expand the substantive scope of the levy regime; it performs the routine, intended task of supplying annual numeric inputs (populations, metrics, and selected IT percentages) used by the ASIC Supervisory Cost Recovery Levy Regulations to compute levies for a single financial year. It is consistent with the Regulations’ established mechanism rather than a departure from the original statutory purpose."},"complexity_factors":["Single substantive function: provides numeric inputs for one financial year (2017–18) rather than new regulatory rules","48 sub‑sectors listed in the population table (section 6)","48 corresponding sub‑sector metrics in section 7, some in dollar amounts, some as counts, and some as dual metrics (messages and transactions) for exchange participants","Two separate IT percentage determinations (sections 8 and 9) tied to different Regulation subsections","Cross‑references to multiple Regulation provisions (notably definitions of basic levy component and graduated levy component in subsections 9(1) and 10(1) of the Regulations, and IT percentage definitions in subsections 64(5) and 65(5))","Conditional commencement and limited retrospective application set by the ASIC Supervisory Cost Recovery Levy Act 2017 (section 2 references subsection 11(3) and 11(4) of the Act and note references subsection 9(9))","Reliance on definitions in the Regulations rather than repeating them in the instrument (section 4), increasing dependence on external text for full interpretation","Mixed data formats in tables (numeric counts, monetary aggregates, message/transaction counts, zero values) requiring careful mapping to calculation rules in the Regulations"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- This is an ASIC annual \"determination\" that supplies the numeric inputs used under the ASIC Supervisory Cost Recovery Levy Regulations 2017 to calculate the supervisory cost‑recovery levies for the 2017–18 financial year (see section 5).\n- It specifies, for 48 regulated sub‑sectors, two sets of numbers that feed into the levy formulas in the Regulations:\n  - the sub‑sector population (how many entities are in each sub‑sector) (section 6), and\n  - the applicable sub‑sector metric used for the basic and/or graduated levy components (section 7).\n- It also sets two \"IT percentage\" figures that determine what share of certain sub‑sectors' regulatory costs are allocated to information‑technology costs (section 8 for large futures exchange participants; section 9 for large securities exchange participants).\n- The instrument is made under the Regulations (section 3) and takes effect according to the commencement rules in the ASIC Supervisory Cost Recovery Levy Act 2017 (section 2). The enabling legislation allows limited retrospective application in particular circumstances (see note to section 2 and the Act’s subsection 9(9)).\n\nWho is affected\n\n- Entities in the listed sub‑sectors: examples include listed corporations, responsible entities, superannuation trustees, large securities and futures exchange participants, credit providers and intermediaries, licensed advisers, custodians, registered auditors and liquidators, and various market operators (see the table in section 6 for the complete list of 48 sub‑sectors and their populations).\n- The instrument does not itself levy money; instead it supplies the counts and metrics that the Regulations use to compute each entity’s share of ASIC’s supervisory cost‑recovery levy for 2017–18.\n\nWhy it matters (official rationale and practical effect)\n\n- The official purpose is to provide the numeric inputs required by the Regulations so ASIC can recover supervisory costs from the regulated population. Practically, these inputs determine how the total levy pool is allocated across sub‑sectors and, ultimately, the per‑entity levy amounts.\n\nHow the mechanics change incentives and who pays\n\n- Who pays: entities in each specified sub‑sector pay levies derived from the population and metric numbers in this instrument. A smaller reported population (column 3 in section 6) spreads the sector’s levy burden across fewer payers, raising the per‑entity charge; a larger population reduces the per‑entity charge, all else equal.\n- What behaviour might change: because the instrument affects the per‑entity levy, it can influence firms’ cost calculations related to market entry, legal form, or service bundling (for example, whether to operate as a large proprietary company or under a different licence class). The instrument does not itself change regulatory obligations or definitions — it only sets the arithmetic inputs used by the Regulations.\n\nCosts, trade‑offs and implementation considerations\n\n- Concentrated benefits and diffuse costs: the numerical choices concentrate costs on the named populations. If a sub‑sector population is small or a metric is high, the per‑entity levy rises. That is a mechanical effect of the tables (section 6 and section 7).\n- Compliance and administrative burden: the instrument is administrative and imposes no new reporting rules directly; its accuracy depends on data collection and the correctness of the underlying counts and metrics. Errors in those numbers would change levy allocations; correction mechanisms depend on the Regulations and ASIC processes.\n- Bureaucratic discretion and oversight: the instrument is made by an ASIC delegate under the Regulations (section 3). The Act contains special disallowance/timing rules for these instruments (referred to in section 2 and the notes); those are the parliamentary oversight mechanisms prescribed by the Act and Regulations rather than by this instrument itself.\n- Economic effects: levy payments reduce net income for affected firms and could influence prices, investment, or firm structure. The instrument does not attempt to model behavioural responses; it only fixes the numeric inputs used to distribute ASIC’s supervisory costs.\n- Implementation risk and opportunity cost: the main risks are data inaccuracy and the timing of the instrument (the Act permits limited retrospective effect). The opportunity cost is the funds that firms must pay the levy instead of using them for other commercial purposes.\n\nRelevant provisions cited\n\n- Application year: section 5 (2017–2018).\n- Numeric inputs (populations): section 6 and its table.\n- Numeric inputs (sub‑sector metrics for basic and graduated levy components): section 7 and its table (used with definitions in subsections 9(1) and 10(1) of the Regulations).\n- IT cost allocation percentages: section 8 (large futures exchange participants) and section 9 (large securities exchange participants).\n- Authority for making the instrument: section 3 (made under the Regulations).\n- Commencement and potential retrospective effect: section 2 and the note referencing the Act’s provisions.\n\nSummary sentence\n\nThis instrument fixes the counts and metrics that the ASIC Supervisory Cost Recovery Levy Regulations use to allocate the supervisory levy for 2017–18 across 48 sub‑sectors, and sets two IT‑cost allocation percentages for particular exchange participants; it does not impose new regulatory duties but determines how ASIC’s supervisory cost recovery is distributed among regulated entities (see sections 5–9)."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument performs exactly the function intended by its enabling legislation — setting annual levy amounts for ASIC cost recovery. It does not expand beyond the statutory framework established by the ASIC Supervisory Cost Recovery Levy Act 2017 and Regulations 2017. The scope remains tightly confined to the annual determination mechanism contemplated by Parliament."},"complexity_factors":["Heavy reliance on external definitions — the instrument imports all its substantive concepts from the ASIC Supervisory Cost Recovery Levy Act 2017 and Regulations 2017, requiring cross-referencing to understand terms like 'sub-sector', 'basic levy component', and 'graduated levy component'","Nested conditional commencement — section 2 contains two alternative commencement triggers depending on which subsection of section 11 of the parent Act applies, plus retrospective effect provisions","Dual-metric structure for some sub-sectors — items 14 and 17 in the second table contain two different metrics (messages AND transactions) for the same sub-sector, creating a split calculation method","48 separate sub-sectors with individualized metrics — each requires lookup against external Regulations to determine the actual formula for converting these numbers into dollar levies","IT percentage provisions (sections 8–9) introduce a secondary calculation layer for two specific sub-sectors, requiring percentage-based adjustments to the base levy"],"plain_english_summary":"This instrument fixes the exact dollar levies ASIC will charge for 2017–18, specifying amounts and population counts across 48 industry sub‑sectors. It translates ASIC’s cost recovery model (basic and graduated levies) into the actual fees payable.\n\nIt affects all businesses ASIC regulates — banks, exchanges, advisers, credit providers, auditors and others — and therefore determines the annual regulatory bill those entities must pay."}},"importantCases":[],"_links":{"self":"/api/acts/asic-supervisory-cost-recovery-levy-annual-determination-instrument-2018-1063","history":"/api/acts/asic-supervisory-cost-recovery-levy-annual-determination-instrument-2018-1063/history","analysis":"/api/acts/asic-supervisory-cost-recovery-levy-annual-determination-instrument-2018-1063/analysis","conflicts":"/api/acts/asic-supervisory-cost-recovery-levy-annual-determination-instrument-2018-1063/conflicts","importantCases":"/api/acts/asic-supervisory-cost-recovery-levy-annual-determination-instrument-2018-1063/important-cases","documents":"/api/acts/asic-supervisory-cost-recovery-levy-annual-determination-instrument-2018-1063/documents"}}