ASIC Supervisory Cost Recovery Levy Regulations 2017

What this legislation does:

This is the ASIC Supervisory Cost Recovery Levy Regulations 2017, which sets out the detailed rules for how ASIC (the corporate regulator) recovers its costs from the companies and entities it regulates.

The big picture: Instead of taxpayers funding ASIC's work, the businesses being regulated pay fees based on how much regulatory attention they require. Think of it as a "user pays" system for corporate oversight.

How it works:

• Who pays: "Leviable entities" — basically any company or organisation that holds an Australian financial services licence, credit licence, or falls into specific categories ASIC oversees (listed companies, banks, insurers, super funds, stockbrokers, etc.)

• How much they pay: The levy is calculated using a complex formula that considers:

  • Which "sub-sector" the entity belongs to (there are dozens — from "large securities exchange operators" to "small amount credit providers")
  • An "entity metric" — a measurable thing like market capitalisation, number of transactions, assets under management, or days holding a licence
  • ASIC's actual regulatory costs for that sector, determined annually