Australian Government, 2008‑09 Budget
Budget

Treasury

Council of Australian Governments — implementing a national approach to the regulation of consumer credit

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Australian Securities and Investments Commission - 1.6 12.7 25.6 25.9
Department of the Treasury - 1.0 1.0 0.8 0.7
Total - 2.6 13.8 26.4 26.6
Australian Securities and Investments Commission - * * * *
Australian Securities and Investments Commission - 0.8 - - -

The Government will provide $70.2 million over four years (including $0.8 million in capital funding in 2008‑09) to implement the decision of the Council of Australian Governments (COAG) to transfer responsibility for regulating all consumer credit to the Commonwealth. The Corporations Act 2001, Australian Securities and Investments Act 2001 and Trade Practices Act 1974 will be amended where necessary to establish a uniform consumer credit law, replacing regulation in six States and two Territories. This will establish a national licensing regime applying to all credit providers, advisers and brokers with the Australian Securities and Investments Commission as the sole regulator. It will also regulate mortgages, margin lending, personal and business loans, credit cards and pay day lending.

The funding for this measure will be partially offset by revenue raised from licensing fees from 2009‑10.

An implementation plan to give effect to the transfer of regulatory responsibility to the Commonwealth was agreed by COAG in October 2008.

Further information can be found in the press releases of 3 July 2008 and 3 October 2008 issued by the Minister for Superannuation and Corporate Law.

Global financial crisis — additional funding for regulators and the Treasury

Expense ($m)
2007‑08 2008‑09 2009‑10 2010‑11 2011‑12
Australian Securities and Investments Commission - 10.0 20.0 - -
Australian Prudential Regulation Authority - 9.0 18.5 9.0 9.0
Department of the Treasury - 2.5 5.0 - -
Total - 21.5 43.5 9.0 9.0

The Government will provide $83.0 million over four years to ensure Australia's financial regulators continue to have the resources to maintain the strength of Australia's financial system during the global financial crisis.

This measure will enable the Australian Prudential Regulation Authority to meet the increased demands being placed on it to undertake a range of additional supervisory activities including stress-testing, reviews of funding plans and responding to applications from entities seeking to become authorised deposit-taking institutions.

The measure will provide the Australian Securities and Investments Commission with additional front-line resources to undertake market monitoring and enforcement activities in order to build confidence in the soundness and integrity of Australia's financial markets.

The measure will also allow the Department of the Treasury to ensure Australia's regulatory environment continues to be world's best practice and to pursue reform of the global financial architecture.

Further information can be found in the press release of 28 October 2008 issued by the Prime Minister and the Treasurer.

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