Section 2: Outcomes and outputs information

Outcomes and output groups

The map below shows the relationship between government outcomes and the contributing outputs for the Australian Securities and Investments Commission (ASIC).

Map 2: Outcomes and output groups

Output cost attribution

Each programme of activity (cost centre) in ASIC is linked to one of the four outputs. Accordingly, expenses against these programmes accrue against the outputs as they occur.

Where an expense relates to more than one output, it is allocated using a predetermined formula. For example, property lease expenses are allocated using staff numbers attributed to each programme.

Changes to outcomes and outputs

There are no proposed changes to the outcome or outputs

Outcome 1 — Description

A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers.

Measures affecting Outcome 1

Australian Securities and Investments Commission — enhanced enforcement activities and consumer protection and corporate sector regulation

The Government will provide $52.5 million over four years to the Australian Securities and Investments Commission (ASIC) to strengthen its ability to meet increased demand for its core operations, enhancing its enforcement activities and its capacity to protect consumers against investment scams.

The Government will also provide funding of $7.6 million over four years to support ASIC’s role in implementing reforms of Part 9 of the Corporate Law Economic Reform Programme (CLERP 9), to strengthen its surveillance and enforcement activities, and to ensure auditor compliance with auditing standards.

The cost of these initiatives will be offset by a $12 increase in the annual review fee for proprietary companies and efficiencies created by changes to, and expansion of, the fee collection system. This is the first increase in this fee since 1997.

The review fee, which is imposed under the Corporations (Review Fees) Act 2003, is payable by proprietary companies required to undertake an annual review of their company details against information provided by ASIC. The fee increase will take effect from 1 July 2004.

The Government will provide an equity injection of $11.3 million to ASIC in 2004-05 to address cumulative operating losses in 2003-04 and previous years. The losses resulted from increases in enforcement costs, demand for services (notably in the number of complaints received), and staff costs. The provision of an equity injection is a financial transaction within the general government sector and consequently has no direct impact on the fiscal balance.

Superannuation Complaints Tribunal — relocation

The Government will provide $1.7 million over four years to fund expenses associated with leasing new premises for the Superannuation Complaints Tribunal following expiry of its current lease.

The Tribunal is funded by levies on superannuation funds collected by the Australian Prudential Regulation Authority under the Financial Institutions Supervisory Levies Collections Act 1998. From 1 July 2004, these levies will be adjusted to offset the costs associated with fitting-out and leasing the new premises.

Outcome 1 — Resourcing

Table 2.1 shows how the 2004-05 appropriations translate to total resourcing for Outcome 1, including revenues from government (appropriations), revenue from other sources, and the total price of outputs.

Table 2.1: Total resources for Outcome 1

1. C1, E1 and I1 show the links back to Table 1.1.

Outcome 1 — Contribution of outputs

ASIC has developed a framework to ensure that delivery of specified outputs meets or exceeds anticipated requirements. These outputs reflect the programmes and activities ASIC undertakes as a regulatory authority to meet the objective of Outcome 1.

Through ASIC, the Government seeks to ensure that consumers and investors receive honest and competent financial advice that is untainted by conflicts of interest, and that information about corporations is current and accurate. ASIC also has an enforcement and regulatory role designed to deal with misconduct in order to promote a confident and informed market.

Performance information for Outcome 1

Table 2.2: Performance information for Outcome 1

Table 2.2: Performance information for Outcome 1 (continued)

Evaluations

ASIC regularly seeks feedback from consumers, investors and other stakeholders on the effectiveness of policy advice and administration of the law.

The results of ASIC’s performance are presented in its Annual Report.

The Australian Government’s financial sector reforms are due to be reviewed by the Financial Sector Advisory Council in the 2004-05 financial year.

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