Regulators showered in cash as government ratchets up pressure on crime, scams, fraud
Australia’s two key regulators will see their budgets boosted, as Treasurer Jim Chalmers puts the agencies at the forefront of the government’s fight against scams and fraud.
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Australia’s two top regulators will be beefed up with a combined $148m in extra funding as the two agencies take charge of the fight against scams and tackling poor corporate conduct.
The budget papers reveal the corporate regulator and the competition have been showered in cash, as the two agencies take the charge on key government initiatives.
The Australian Securities and Investments Commission will be handed a $92.04m budget boost, as a the government looks set to splash cash on a cyber security and registry upgrades ahead of more money to fund key planks of the government’s agenda.
The extra cash comes as ASIC warns it is facing a $35.6m operating deficit in 2024-25, with the agency warning it was facing unfunded depreciation and amortisation expenses, as well as lease repayment costs.
This comes as ASIC faces a $21m underlying cash deficit amid a costs blowout.
Budget papers show ASIC will be handed $81.7m to fund its cyber security of regulators and improving registers initiatives in 2024-25.
This is in addition to a further $17.7m injection for ASIC’s work on modernising digital assets and payments regulation.
The extra funding comes as ASIC moves to modernise regulatory frameworks as well as develop new legislation to regulate platforms holding digital assets.
But these key initiatives are set to drop off in 2025, with cyber security spending to slide to $25.4m, while digital assets and payments regulation funding will be bolstered by further funding taking.
ASIC’s headcount is also expected to swell, amid a broader boost in the public service, with staffing levels to climb to 1948 in the coming year, up from 1709.
The extra cash for ASIC comes as the regulator faces criticism for its enforcement record, with critics taking shots at the agency over allegations it has failed to crack down on corporate criminals and preserve market integrity.
However, the budget notes ASIC, which has repeatedly called for more funding to achieve its mission, is on track to achieve its performance goals in 2023-24.
ASIC chair Joe Longo, appearing at a recent parliamentary committee hearing, said the regulator could look to take further court action to tackle market misconduct if handed further funding.
Fellow regulator the Australian Competition and Consumer Commission is also set to see its resources boosted in the coming years, with an extra $55.97m in the budget earmarked for the agency.
This comes as the ACCC will be handed expanded powers under a proposed strengthened mergers regime, and expanded Competition Review, with much of the extra funding set to boost competition reform set to land in coming years.
The government said it would provide a further $13.9m over five years to fund its competition reforms.
ACCC chair Gina Cass-Gottlieb has pushed for the broader powers for the regulator, which would require mandatory notification of takeovers to the regulator as well as stronger powers to block deals that could further concentrate markets and lessen competition.
New merger rules would require the ACCC to permit a deal unless it believes it lessens competition or “creates, strengthens, or entrenches substantial market power in any market”.
But the new system is expected by some industry watchers to add to the workload of the regulator.
The budget papers show the ACCC is expected to add a further 159 public servants to its throng, taking the regulator to almost 1719 staff in 2024-25.
The ACCC is also key to several planks of the Albanese government’s agenda, including a 12-month probe into supermarket pricing and competition in the sector, amid concerns over cost of living.
The competition regulator, along with ASIC and the Australian Communications and Media Authority will also be handed $37.3m over four years, plus $8.6m on an ongoing basis, as part of efforts to fight scams.
The three regulators will be required to develop mandatory industry codes for banks, telcos and social media and search platforms.
The government has warned these industries must do more on scams, as Australians lose millions on fraud.
Originally published as Regulators showered in cash as government ratchets up pressure on crime, scams, fraud
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