Appendix A: Policy Decisions taken since the 2012-13 Budget (Continued)
Expense Measures (Continued)
Treasury
Asia Pacific Financial Forum
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Department of the Treasury | ‑ | 0.3 | ‑ | ‑ | ‑ |
| Related revenue ($m) | |||||
| Department of the Treasury | ‑ | 0.3 | ‑ | ‑ | ‑ |
The Government will provide $250,000 to support an APEC Business Advisory Council symposium in Sydney in 2013. The symposium will provide an opportunity to explore how the creation of an Asia Pacific Financial Forum would promote regional financial architecture.
Funding will be provided from interest revenue earned on unclaimed monies held in the Companies and Unclaimed Moneys Special Account (CUMSA). This has no net impact on the Budget as the interest earned by CUMSA is not included in Australian Government revenue until a decision is made for its expenditure.
For further information see the press release of 31 August 2012 issued by the Treasurer, the Minister for Finance and Deregulation and the Minister for Financial Services and Superannuation.
Australian Securities and Investments Commission — additional operational funding
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Australian Securities and Investments Commission | ‑ | 10.0 | 10.0 | ‑ | ‑ |
The Government will provide an additional $20.0 million over two years to the Australian Securities and Investments Commission (ASIC) to support its operations. The additional funding will support ASIC in its regulation and supervision of Australia's financial markets.
Bank accounts and life insurance policies — reform of arrangements relating to transfer of unclaimed monies to ASIC
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Australian Securities and Investments Commission | ‑ | 16.0 | 0.3 | 0.3 | 0.4 |
| Related revenue ($m) | |||||
| Australian Securities and Investments Commission | ‑ | 109.4 | ‑ | ‑ | ‑ |
The Government will implement reforms that will preserve the value of unclaimed bank account and life insurance policies.
The Government will reduce the period of inactivity before bank accounts and life insurance policies are required to be transferred to the Australian Securities and Investments Commission (ASIC) from seven years to three years. In line with existing arrangements for life insurance policies, the period of inactivity for term deposits will commence from when the term deposit matures. This reform will take effect from 31 December 2012.
Individuals can reclaim bank accounts and life insurance policies transferred to ASIC at any time, however no form of interest is currently paid when they are reclaimed. In addition to the above reform, the Government will pay interest at a rate equivalent to Consumer Price Index (CPI) inflation from 1 July 2013 on all bank accounts and life insurance policies reclaimed from ASIC.
This reform will benefit individuals with unclaimed money by protecting the real value of these monies when they are transferred to ASIC.
This measure is estimated to provide savings to the Budget of $92.3 million over the forward estimates period. ASIC will administer $15.0 million in interest payments associated with reclaimed funds. ASIC will also receive $2.1 million over the forward estimates to implement this change.
Company monies — reform of arrangements relating to transfer of unclaimed monies
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Australian Securities and Investments Commission | ‑ | 4.3 | 0.4 | 0.4 | 0.4 |
| Related revenue ($m) | |||||
| Australian Securities and Investments Commission | ‑ | 98.3 | 12.9 | 8.2 | 4.5 |
The Government will implement reforms to preserve the value of unclaimed company monies.
Currently, unclaimed company monies are held in the Companies and Unclaimed Monies Special Account (CUMSA) for six years before they are transferred to the Consolidated Revenue Fund (CRF). The Government will close the CUMSA so that unclaimed company monies are transferred to the CRF.
Individuals can reclaim company monies at any time, however no form of interest is currently paid when they are reclaimed. In addition to the above reform, the Government will pay interest at a rate equivalent to Consumer Price Index (CPI) inflation from 1 July 2013 on all company monies, reclaimed from ASIC.
This reform will benefit individuals with unclaimed company monies by protecting the real value of those monies.
This measure is estimated to provide savings to the Budget of $118.5 million over the forward estimates period. ASIC will administer $4.1 million in interest payments associated with reclaimed funds. ASIC will also receive $6.5 million over the forward estimates to continue to administer unclaimed monies, as it will no longer be able to recover these costs from interest earned on the balance of the CUMSA.
Conservation tillage offset — change to eligibility criteria
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Australian Taxation Office | ‑ | ‑ | ‑ | ‑ | ‑ |
The Government will broaden the eligibility criteria for the conservation tillage offset by amending the definition of eligible no‑till seeders. This will — ensure that primary producers can access the offset when they purchase just the tool, as well as the combination of the cart and the tool. Consistent with the existing offset, it will apply to eligible seeders installed ready to use between 1 July 2012 and 30 June 2015. This measure is estimated to have a negligible cost over the forward estimates period.
Further information can be found in the press release of 29 June 2012 issued by the Assistant Treasurer.
Energy Security
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Department of the Treasury | ‑ | ‑ | ‑ | ‑ | ‑ |
The Government provided $0.3 million to the Department of the Treasury in 2011‑12 for costs incurred in relation to work undertaken by the Energy Security Council (ESC).
The Department of the Treasury provides secretariat support to the ESC.
Funding for this measure was included as a 'decision taken but not yet announced' in the 2012‑13 Budget.
Future of Financial Advice Reform — accountant's exemption — transitional relief
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Australian Securities and Investments Commission | ‑ | ‑2.0 | ‑5.9 | ‑1.4 | 2.8 |
| Related revenue ($m) | |||||
| Australian Securities and Investments Commission | ‑ | ‑2.8 | ‑8.4 | 0.1 | 6.7 |
| Related capital ($m) | |||||
| Australian Securities and Investments Commission | ‑ | ‑1.0 | ‑ | 1.0 | ‑ |
The Government has decided to extend the accountants' licensing exemption until 1 July 2016. As a result, funding provided in the 2012‑13 Budget to the Australian Securities and Investments Commission (ASIC) to implement the Future of Financial Advice (FoFA) reforms will be reprofiled to later years. The accountants' licensing exemption, as originally announced, allowed accountants to provide advice on self‑managed superannuation funds without an Australian financial services (AFS) license until 1 July 2014. The extension will allow additional time for industry to take the necessary steps and undertake the training required to hold a licence under the new arrangements.
In the 2012‑13 Budget, the Government provided $23.9 million over four years to ASIC to implement the FoFA reforms.
Lowy Institute for International Policy — establishment of a G20 Studies Centre
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Department of the Treasury | 2.0 | ‑ | ‑ | 1.0 | 1.0 |
The Government provided $2.0 million in 2011‑12 to the Lowy Institute for International Policy to establish a G20 Studies Centre. The Government will also provide $1 million in both 2014‑15 and 2015‑16.
The Studies Centre will provide analysis on the changing landscape for global economic governance and the G20's role from an Australian perspective. It will take advantage of the Lowy Institute's existing connections and networks to establish an Asian G20 think tank network, thereby creating closer ties with regional partners.
To facilitate dialogue on the G20, the Studies Centre will host major events, website forums and blogs that will bring together experts on the global economy and global governance.
Online retail sales — tracking
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Australian Bureau of Statistics | ‑ | ‑ | ‑ | ‑ | ‑ |
The Government will provide $2.1 million over four years to the Australian Bureau of Statistics (ABS) to track online retail spending. This funding will allow the ABS to track Australian purchases from domestic and overseas online retailers as well as 'multi‑channel' retailers that sell both online and from traditional bricks and mortar outlets.
Funding for this measure was included as a 'decision taken but not yet announced' in the 2012‑13 Budget.
Further information can be found in the joint press release of 19 July 2012 issued by the Parliamentary Secretary to the Treasurer and the Assistant Treasurer and Minister Assisting for Deregulation.
Superannuation Consumer Centre — investment fund
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Department of the Treasury | ‑ | 1.0 | 2.0 | 7.0 | ‑ |
The Government will provide $10.0 million over three years as a contribution to a non‑government investment fund, the earnings of which will be used to fund the ongoing costs of a new Superannuation Consumer Centre (SCC). The Government's contribution will be contingent on matching funds being provided by industry. The SCC delivers on a commitment made as part of the Government's response to the Super System Review, that it would consider how to further promote a more member‑driven approach within superannuation.
The SCC will be a non‑profit organisation with a primary focus on superannuation policy research and related consumer advocacy.
SuperStream — reduction in Superannuation Supervisory levy
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Australian Taxation Office | ‑ | ‑2.0 | ‑9.6 | ‑8.4 | ‑7.3 |
| Related revenue ($m) | |||||
| Australian Prudential Regulation Authority | ‑ | ‑ | ‑11.6 | ‑8.4 | ‑7.3 |
The Government will reduce the SuperStream component of the Superannuation Supervisory levy being collected from Australian Prudential Regulatory Authority (APRA) regulated superannuation funds designed to recover the Government's costs of implementing SuperStream.
The Superannuation Supervisory levy will be reduced by $38.2 million over six years, as a result of savings in the Australian Taxation Office's administration of SuperStream. This measure will have no net budget impact over the forward estimates period.
Women on Boards Accelerator Program
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | |
|---|---|---|---|---|---|
| Department of the Treasury | 0.2 | ‑ | ‑ | ‑ | ‑ |
| Related revenue ($m) | |||||
| Department of the Treasury | 0.2 | ‑ | ‑ | ‑ | ‑ |
The Government provided $150,000 in 2011‑12 to fund the Australian Institute of Superannuation Trustees and Women in Super's Women on Boards Accelerator Program.
The Women on Boards Accelerator Program aims to engage not‑for‑profit superannuation funds, fund chairs and their supporting organisations in order to identify potential female candidates for trustee director opportunities.
The grant was funded from interest revenue earned on unclaimed monies held in the Companies and Unclaimed Moneys Special Account (CUMSA). This has no net impact on the budget as the interest earned by CUMSA is not included in Australian Government revenue until a decision is made for its expenditure.
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