ASIC releases updated user pays information

ASIC has recently released its Cost Recovery Implementation Statement: Levies for ASIC industry funding (2017-18) for consultation.

Concerningly there has been a significant (20%) increase in the costs to be recovered from registered liquidators since that advised to us during the consultation period. This means that the average recovery from a registered liquidator has increased from $12,000 to $14,350 in just one year. This significant increase is contrary to what ARITA was told during the consultation process about likely future budget changes.

This increase means that the per event cost advised by ASIC of $110 is likely to increase to at least $132.

If the material decline in insolvency appointments continues from the 2016/17 financial year (22.6% reduction from 2015/2016 financial year), the cost per event will increase even further.

Submissions close on 1 November. ARITA is currently drafting its submission and will circulate a draft to members for consultation next week.

We encourage all members to reassess their budgeting for the levy and to consider making a submission to ASIC.