Section 2: Resources for 2007-08
2.1 Appropriations and other resources
The total appropriation (including capital appropriation) and other resources for the Australian Securities and Investments Commission (ASIC) in the 2007-08 Budget is $377.1 million.
Table 2.1 shows the total resources from all origins for 2007-08, including appropriations. The table summarises how resources will be applied by outcome, administered and departmental classification.
Table 2.1: Appropriations and other resources 2007-08
2.2 2007-08 Budget measures
The following table summarises Budget measures relating to ASIC as explained in Budget Paper No. 2, Budget Measures 2007-08.
Table 2.2: Australian Securities and Investments Commission measures
- This is a cross portfolio measure with the Attorney-General’s portfolio.
- This is a cross portfolio measure with the Industry, Tourism and Resources portfolio.
- This measure was published in the Mid-Year Economic and Fiscal Outlook 2006-07.
2.3 Other resources available to be used
The following table provides details of resources obtained by ASIC for provision of goods or services. These resources are approved for use by ASIC and are also included in Table 2.1.
Table 2.3: Other resources available to be used
Revenue for services includes seminar fees, imaging/printing services, sale of database information, and the reimbursement of ASIC’s expenses in discharging its responsibilities under section 1341 of the Corporations Act 2001 in relation to companies unclaimed monies.
Other revenue includes amounts recovered by ASIC for court costs and investigations, prosecution disbursement and revenue from publications.
Effective from 1 July 2007, ASIC will operate under the Financial Management and Accountability Act 1997 (FMA Act). In accordance with the Government’s Agency Banking Framework, all surplus cash will be invested for the benefit of the Commonwealth. The Government has determined that ASIC will receive adjustments to its appropriation to reflect this change (refer Table 2.2).
2.4 Movement of administered funds
Table 2.4: Movement of administered funds between years
In 2005, the Government provided ASIC with funds to finance preliminary investigations by expert liquidators of companies, selected by ASIC, that have been left insolvent with little or no assets. The implementation phase has taken longer than originally anticipated. ASIC has provided extensive training and consultation to liquidators, and has visited over 140 liquidators in 2006-07. This programme of training will continue during the remainder of the 2006-07 financial year. ASIC expects the number of large matters funded to increase as a result of a greater awareness of the objectives of this initiative.
2.5 Special appropriations
Table 2.5: Estimates of expenses from special appropriations
Banking Act 1959: Approved Deposit Taking Institutions, being banks, building societies and credit unions, are required to remit to the Government, the balance in bank accounts that have remained dormant for seven years. This special appropriation covers repayments estimated to be made to claimants from the Banking Unclaimed Monies Account where the validity of the claim has been established by the relevant institution.
Life Insurance Act 1995: Life insurance companies and friendly societies are required to remit to the Government amounts payable on matured life insurance policies that have remained unclaimed for seven years. This special appropriation covers estimated payments made to claimants from the Life Unclaimed Monies Account where the validity of the claim has been established by the relevant life insurance companies.
Refund of overpayment of fees paid under the Corporations Act 2001: All fees and charges collected in accordance with the Corporations Act 2001 are banked into consolidated revenue in accordance with section 81 of the Commonwealth of Australia Constitution Act (Constitution). In 2007-08 it is forecast that an amount of $6.0 million of overpaid fees and charges will be refunded. This requires separate appropriation in accordance with section 83 of the Constitution (appropriated under section 28 of the Financial Management and Accountability Act 1997).
2.6 Movements in special accounts
Special accounts provide a means to set aside and record amounts used for specified purposes. Table 2.6 shows the expected additions (credits) and reductions (debits) for each special account used by ASIC.
Table 2.6: Estimates of special account flows and balances
