Michael Sukkar (Deakin, Liberal Party, Assistant Minister to the Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The ASIC Supervisory Cost Recovery Levy (Collection) Bill 2017 forms part of a package of bills to introduce an industry funding model for the Australian Securities and Investments Commission (ASIC).

To ensure that the industry funding model is equitable, this bill requires all entities regulated by ASIC to pay a levy to offset their regulatory costs.

These levies are to be paid after the end of the relevant financial year and any unpaid levy attracts penalty interest at the rate of 20 per cent per annum.

To ensure that ASIC's costs are distributed appropriately, this bill also requires all ASIC-regulated entities to report to ASIC on their actual activities throughout the financial year. This will also assist ASIC to better identify financial sector risks and prioritise its resources to best protect Australian consumers.

To buttress this reporting obligation, failing to report when required will be an offence. Further, a failure to report honestly will result in a shortfall penalty equal to two times the levy avoided being imposed.

These measures are necessary to ensure ongoing confidence in the ASIC industry funding model.

Full details of the measure and the ASIC industry funding model are contained in the explanatory memorandum for the ASIC Supervisory Cost Recovery Levy Bill 2017.

Debate adjourned.