Commentary

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ASIC new funding model is backdoor taxation

5 Jun 2015
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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.

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2015
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