ASIC levy likely lower than expected
Financial advisers may benefit from the Australian Securities and Investments Commission (ASIC) levy being $400 less than expected, according to the Financial Advice Association of Australia (FAAA).
The FAAA said that based on information in two legislative instruments issued by ASIC, the FAAA estimated the final amount would be around $400 lower per adviser lower than the original estimate, at $2,818 per adviser.
“When ASIC published their estimates for the 2022/23 year, in June, the total cost recoveries for financial advisers providing personal advice to retail clients was estimated at $55.5 million,” it said. “The FAAA challenged this number and the underlying methodology used to arrive at it, as well as the lack of transparency in the calculations. In these final numbers, the total cost for our sector has reduced by nearly $8 million to $47.6 million.”
“We have consistently and strongly advocated for relief for advisers on the ASIC levy, and we are glad to see that the government has listened to those calls.
“We remain concerned at the overall size of the levy, and the lack of transparency around how it is calculated. We will continue to work with ASIC, Treasury and the Minister’s office to support and encourage further changes including the implementation of the improvements to the Industry Funding Model that were recommended by Treasury in its recent review.
“Making financial advice more affordable for Australians starts with making financial planning more affordable to practice, and getting costs down for financial advisers remains a high priority for the FAAA.”
It may be $400 less than expected but it’s still $2,818 too much.
ASIC should be funded by taxpayers to protect consumers from the real sources of harm. Not funded by honest, licensed advisers to persecute honest, licensed advisers.
A small peace offering of no real substance It is still ridiculous that advisers need to be paying this
No wonder the exodus has not stopped
The government’s taxes and red-tape drive the loss of thousands of advisers, they then list Financial Advisers as a skills shortage so migrants can come in and do the job. This obviously is to benefit super funds, who incidentally are not paying the adviser levy/tax.
Dear ASIC, what’s the Annual ASIC Levy on :
1) Accountants = $0
2) SMSF Auditors = $0
3) Registered Company Auditors = $0
Isn’t great being constantly bent over by ASIC as a Financial Adviser
Its still $2,818 too high.
Good work FAAA
What did they do? and what does it matter to you? You’re not licensed so we just pay the levy on your behalf
Interest rate rises having a muted effect here. ASIC levy is a tax on top of government funded wages
Imagine if financial advisers run businesses the way ASIC does… I’ve spent to much money during the year I’ve now got less clients to service but now I have to double the fees all my clients pay because I’m bad a managing my business. You cannot make this stuff up.
If financial planners did this to clients our heads would be on sticks “quote from ASIC”
did they discover they had more than one cost centre in their accounting software?
Its disgraceful and nothing but contemptuous – Treasury, ASIC and Albo need to be shown the same consideration next election – vote them out and get all your clients to do the same.
I am as furious as the next man about the ASIC levy. Buy Davey you should never forget the ASIC levy was introduced under a very bank friendly coalition government, after the banks had exited and there were no none of their advisers on the FAR.
ASIC has learnt well from their union masters. Make an ambit claim, then settle for something slightly lower and sell it as a win.