In response to the Financial System Inquiry, the government is set on a course to introduce a user-pays system that can generate about $300 million in revenue to directly fund the Australian Securities and Investments Commission.
But beware: wolves sometimes come in sheep’s clothing. And this plan is essentially backdoor taxation.
The sugar-coated proposal to directly charge an industry — as if everyday Australians would be spared any cost — is misguided and opportunistic.
Although there is nothing wrong with a user-pays system per se, the new proposal does not have checks and balances to future regulatory costs and charges.
Moreover, it is silent about what happens to the current government-backed funding dollar savings — although most certainly they will not be coming back to taxpayer pockets.