Australia's banks, insurers and superannuation funds will need to pay additional supervisory levies following the royal commission into misconduct in the financial sector.
In a discussion paper released June 4, the Australian Treasury proposed that bank, insurers and super funds must collectively pay A$236 million in levies for fiscal 2019-2020. The total funding is a A$22.6 million increase, or 10.6% increase, from the 2018-2019 requirements. The government said the increase due to the additional funding required for the financial regulators' expanded functions detailed in the royal commission report.
Banks and super funds will pay the most of the higher levies, with banks expected to pay A$90.8 million for this fiscal year and super funds expected to pay A$89.1 million.
The Australian Prudential Regulation Authority is set o receive the bulk of the funding, with A$186.1 million budgeted to the regulator for the fiscal year, up 31.4% from its A$141.6 million budget in 2018-2019.
APRA and corporate regulator the Australian Securities and Investments Commission had been heavily criticized by the royal commission for failing to address the misconduct cases that came to light during the inquiry. The royal commission recommended that ASIC overhaul its approach to enforcement.
Financial institutions have until June 14 to respond to the Treasury proposals.