The purpose of this paper is to outline the proposed arrangements for the AUSTRAC Industry Contribution for the 2016–17 financial year. As part of the May 2014 Federal Budget, the Australian Government announced that the AUSTRAC Supervisory Levy would be replaced with the AUSTRAC Industry Contribution, from the 2014–15 financial year onwards.
The industry contribution is a levy on AUSTRAC reporting entities to recover the costs of AUSTRAC’s regulatory and financial intelligence functions. The 2016–17 financial year is the third year of the industry contribution. As in previous years AUSTRAC is committed to consulting extensively on the industry contribution model prior to requesting the Minister for Justice to make a final levy determination.
As detailed in the Mid-Year Economic and Fiscal Outlook (MYEFO) dated 15 December 2015, the Government announced its decision to bring forward by one year the scheduled increase to the levy to enable the recovery of 100 per cent of AUSTRAC’s operating costs – the increase in the levy to recover 100 per cent of operating costs was originally planned for the 2017–18 financial year.
Accordingly, as from 2016–17, AUSTRAC's activities as Australia's anti-money laundering and counter-terrorism financing (AML/CTF) regulator and financial intelligence unit will be funded in full through the collection of the AUSTRAC industry contribution. In response to the extensive consultation processes in 2015, AUSTRAC remains committed to enhancing the transparency of the industry contribution processes and to communicating effectively with leviable entities about:
• the anticipated amount entities will be levied for the 2016–17 financial year
• a projected estimate of the amount entities will be levied for the 2017–18 financial year
• how AUSTRAC’s annual budget allocation is to be expended for the 2016–17 financial year