Australian Government, 2012‑13 Budget
Budget

Part 2: Expense Measures (Continued)

Treasury

Australian Competition and Consumer Commission — additional legal expense funding

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Competition and Consumer Commission - 4.3 - - -

The Government will provide $4.3 million in 2012‑13 to the Australian Competition and Consumer Commission (ACCC) to fund additional external legal costs, reflecting the increasing complexity of legal cases undertaken by the ACCC in performing its statutory duties.

Australian Prudential Regulation Authority — sustaining capacity

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Prudential Regulation Authority - 15.7 16.2 19.7 23.8
Australian Prudential Regulation Authority - 18.9 20.0 19.7 23.8
Australian Prudential Regulation Authority - 3.2 3.7 - -

The Government will provide $82.4 million over four years (including capital funding of $6.9 million over two years) to the Australian Prudential Regulation Authority (APRA) to ensure APRA's continued capacity to supervise Australia's financial system, including the implementation of global regulatory reforms. The additional capital funding will provide for an upgrade of APRA's ICT infrastructure.

The cost of this measure will be fully recovered through financial sector levies paid by APRA regulated entities.

Australian Screen Production Incentive — Producer Offset — defining a documentary

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Taxation Office - - - - -

The Government will insert a definition of documentary, and related terms, into the legislation governing the producer offset. It will apply to films where principal photography commences on or after 1 July 2012.

The producer offset provides a refundable tax offset to eligible categories of film and television productions, including documentaries, that have significant Australian content (or are made as official co‑productions) and meet minimum qualifying expenditure thresholds.

This measure will clarify the intended application of the producer offset by providing a definition of documentary and of related terms.

This integrity measure is expected to have no budget impact over the forward estimates period.

Australian Securities and Investments Commission — enhanced market supervision

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Securities and Investments Commission - 12.3 5.5 4.6 5.0
Australian Securities and Investments Commission - 1.5 7.0 9.4 15.2
Australian Securities and Investments Commission - 2.2 7.7 6.0 0.4

The Government will provide $43.7 million over four years (including $16.3 million in capital) to the Australian Securities and Investments Commission to replace its current market surveillance system with an enhanced, integrated system with increased data mining and analysis capacity.

The cost of this measure will be offset by additional fees of $33.0 million over four years on market operators and participants.

See also the related measure titled Competition for Market Services in the 2011‑12 Budget.

Australian Securities and Investments Commission — operational funding

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Securities and Investments Commission - 15.5 28.8 28.8 28.8

The Government will provide $101.9 million over four years to the Australian Securities and Investments Commission (ASIC) for its operational funding. ASIC previously received non‑ongoing funding to cover operating activities, including $28.8 million in 2011‑12. Provision of this funding enables ASIC to continue to provide current levels of regulation and supervision of the financial market.

See also the related expense measure Australian Securities and Investment Commission — enhanced market supervision, and the 2011‑12 Budget measure Australian Securities and Investments Commission — additional funding.

Economic Potential of Senior Australians — Advisory Panel on Positive Ageing

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of the Treasury - 1.2 1.2 1.2 1.2

The Government will provide $4.7 million over four years to establish a new ongoing Advisory Panel on Positive Ageing and to conduct a review of the legislation that protects volunteers from civil liability for acts or omissions made in good faith.

The role of the Advisory Panel is to lead national dialogue on ageing issues, improve coordination of policy design across portfolios, and to work with the Government in implementing initial responses and developing longer term responses to recommendations made in the Turning Grey into Gold report.

This measure forms part of the Government's response to the recommendations of the Advisory Panel on the Economic Potential of Senior Australians.

Future of Financial Advice Reform

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Securities and Investments Commission - 3.1 7.7 6.7 5.4
Australian Securities and Investments Commission - 4.0 10.4 5.3 5.3
Australian Securities and Investments Commission - 1.0 - - -

The Government will provide $23.9 million over four years to the Australian Securities and Investments Commission to facilitate the implementation of the Future of Financial Advice reforms.

In order to recover these costs, the application fee to obtain an Australian financial services (AFS) licence will increase from either $287 or $575 (depending on method of application) to $1,485 for a body corporate and from either $159 or $351 (depending on method of application) to $825 for a natural person and the annual lodgement fee for an AFS licence holder will increase from $351 to $549 for a body corporate and from $144 to $225 for a natural person.

Heavy Vehicle Road User Charging

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Taxation Office - -166.0 -172.0 -177.0 -183.0

The Government will increase the Road User Charge, collected by the Commonwealth from fuel which is used by registered vehicles with a gross mass of greater than 4.5 tonnes operating on a public road for business purposes. From 1 July 2012 the Road User Charge will increase from 23.1 to 25.5 cents per litre. This will reduce the fuel tax credit paid by the Commonwealth to eligible heavy vehicle operators.

This measure will provide estimated savings of $698.0 million over four years.

This change to the Road User Charge was recommended by the National Transport Commission (NTC) and agreed by the Commonwealth and State and Territory Transport Ministers. The NTC is responsible for conducting an annual assessment of these charges to ensure they remain in line with heavy vehicle share of road use. This increase in the rate is contingent on implementation of a revised Road User Charge Determination to be made under the Fuel Tax Act 2006.

See also the related expense measure titled Nation Building — Heavy Vehicle Safety and Productivity Program — continuation in the Infrastructure and Transport portfolio.

Petrol Commissioner and formal monitoring of petrol prices — continuation

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Competition and Consumer Commission - 0.9 0.9 - -

The Government will provide $1.7 million over two years to the Australian Competition and Consumer Commission to continue the role of the Petrol Commissioner and the formal monitoring of petrol prices under Part VIIA of the Competition and Consumer Act 2010, for calendar year 2013.

Funding was originally provided in the 2008‑09 Budget to December 2010 and continued in the 2010‑11 Budget and in the 2011‑12 Budget.

Statistics on foreign ownership in the agricultural sector

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Bureau of Statistics - 0.8 0.5 0.1 0.4

The Government will provide $1.7 million over four years to the Australian Bureau of Statistics (ABS) to undertake data collection and statistical work on foreign ownership in the agricultural sector.

This will fund an ongoing and expanded statistical data collection by the ABS, providing greater transparency on foreign investment in agriculture.

Further information can be found in the press release of 18 January 2012 issued by the Assistant Treasurer.

Stronger Super — implementation of SuperStream reforms

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Taxation Office 18.3 62.7 93.3 71.8 58.7
Department of Industry, Innovation, Science, Research and Tertiary Education 0.3 1.4 1.9 1.9 2.4
Department of the Treasury 0.3 0.5 0.2 0.2 0.2
Total - Expense 18.8 64.7 95.5 73.9 61.2
Australian Prudential Regulation Authority - 121.5 111.1 83.1 69.3
Australian Taxation Office 12.3 22.3 12.7 7.0 6.7
Department of Industry, Innovation, Science, Research and Tertiary Education 0.2 3.1 2.9 2.3 1.4
Total - Capital 12.5 25.4 15.6 9.2 8.1

The Government will provide $467.1 million over seven years (including $41.2 million in 2016‑17 and $40.9 million in 2017‑18) to implement the SuperStream reforms that are part of the package of Stronger Super reforms. These changes implement the recommendations of the independent Super System Review (Cooper Review) of superannuation. They are designed to improve the efficiency and effectiveness of the superannuation system through the better use of technology and by standardising data and payment requirements for member related superannuation transactions (such as contributions and rollovers).

In order to realise the full benefits of SuperStream, up‑front investment is required in information technology systems for key agencies such as the Australian Taxation Office (ATO).

The Government provided initial funding of $14.6 million to the ATO in the 2011‑12 Budget to develop a business case and undertake initial expenditure on the SuperStream project.

The cost of implementing the SuperStream reforms will be recovered through a temporary levy on Australian Prudential Regulatory Authority regulated funds from 2012‑13.

Further information can be found in the Government Response to the Super System Review at http://strongersuper.treasury.gov.au.

Stronger Super — self managed superannuation funds auditor registration

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Australian Securities and Investments Commission - 2.1 1.3 1.2 1.2
Australian Taxation Office 4.5 1.4 1.2 1.0 1.0
Total - Expense 4.5 3.4 2.5 2.2 2.2
Australian Taxation Office - 9.0 5.2 5.5 5.8
Australian Securities and Investments Commission - -0.5 .. -0.2 -0.2
Total - Revenue - 8.5 5.2 5.3 5.6
Australian Securities and Investments Commission - 5.0 - - -
Australian Taxation Office 1.5 - - - -
Total - Capital 1.5 5.0 - - -

The Government will provide $10.7 million over four years (including $5 million in capital funding in 2012‑13) to the Australian Securities and Investments Commission (ASIC) to develop and maintain an on‑line registration system for auditors of self managed superannuation funds (SMSFs).

These changes implement the recommendations of the independent Super System Review (Cooper Review) of superannuation. They are designed to ensure high standards from the audit professionals who are at the forefront of ensuring that the self‑managed superannuation sector is well managed.

As part of the registration process, ASIC will develop a competency exam for SMSF auditors. ASIC will also be responsible for the deregistration of non‑compliant auditors. Auditors may begin to register with ASIC from 31 January 2013.

The Government will also provide $10.6 million over five years (including $1.5 million in capital funding in 2011‑12) to the Australian Taxation Office to police registered auditors, check their compliance with competency standards set by ASIC and refer auditors to ASIC, for enforcement action.

The cost of this measure will be offset by increases in the SMSF levy and fees charged by ASIC for sitting the competency exam.

Initial funding for this measure was provided in the 2011‑12 Budget as part of the measure titled Stronger super — self managed super funds.

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