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Part 2: Expense Measures (continued)

Treasury

Asia Region Funds Passport

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Australian Securities and Investments Commission 0.8 0.9 0.9 0.9
Australian Securities and Investments Commission 0.4 0.9 0.9 0.9
Australian Securities and Investments Commission 2.9

The Government will provide $6.4 million over four years from 2016‑17 (including $2.9 million in capital funding in 2016‑17) to the Australian Securities and Investments Commission to implement a regulatory framework for Australia's participation in the Asia Region Funds Passport.

The Asia Region Funds Passport initiative aims to increase access for Australian fund managers to growing Asian markets by creating a regulatory arrangement for the cross border offer of collective investment vehicles.

The cost of this measure will be partially offset by a registration fee, which will be paid by Australian and foreign funds using the Asia Region Funds Passport.

Asset Recycling Initiative — return of unallocated funds

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of the Treasury ‑452.7 ‑307.4 ‑93.5

The Government will return $853.6 million in unallocated funds from the Asset Recycling Initiative (ARI) to the budget for use on other policy priorities.

The ARI has been operating since May 2014, and under the National Partnership Agreement on Asset Recycling, the States and Territories have until 30 June 2016 to agree final ARI schedules with the Commonwealth. The Government has reached agreement or is in the final stage of negotiating agreements with the States and Territories worth up to $3.3 billion, catalysing $23.0 billion in infrastructure investment. As no other agreements with the States and Territories are likely to be agreed before 30 June 2016, the Government has decided to reallocate the remaining uncommitted funding from ARI to other policy priorities.

Australian Energy Regulator — additional funding

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Australian Competition and Consumer Commission 8.0
Department of the Treasury 1.0
Total — Expense 9.0

The Government will provide $8.0 million in 2016‑17 to support the Australian Energy Regulator (AER), a constituent part of the Australian Competition and Consumer Commission. This funding will ensure that the AER is sufficiently resourced to undertake its legislated functions, including obligations and functions conferred on it by the Council of Australian Governments and the Australian Energy Market Commission in recent years, which have significantly increased its workload.

The Government will also provide $1.0 million to the Department of the Treasury to undertake an independent resourcing review of the AER, to determine the appropriate resourcing required to ensure the AER can perform its legislated functions going forward.

Australian Securities and Investments Commission — improving outcomes in financial services

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Australian Securities and Investments Commission 22.0 27.6 19.7 12.9
Department of the Treasury 2.0 2.0 2.0
Total — Expense 24.0 29.5 21.6 12.9
Australian Prudential Regulation Authority 37.0 46.3 25.2 12.9
Australian Securities and Investments Commission 14.9 18.8 5.5

The Government will provide $127.2 million over four years, comprising $121.3 million over four years from 2016‑17 to the Australian Securities and Investments Commission (ASIC) and $5.9 million over three years from 2016‑17 to the Department of the Treasury to combat misconduct in Australia's financial services industry and bolster consumer confidence in the sector. This follows consideration of the findings of the Capability Review of the Australian Securities and Investments Commission. The funding to ASIC will be ongoing.

The additional funding will support increased surveillance and enforcement activities in areas such as financial advice, responsible lending, life insurance, and breach reporting, and enhancements to ASIC's data analytics.

The funding for ASIC includes $39.2 million in capital over three years from 2016‑17, which will support improvements to ASIC's technology systems to ensure that ASIC is better equipped to detect financial sector misconduct and to improve information management systems to support other work.

Funding will also support ASIC and the Department of the Treasury in accelerating the implementation of law reforms recommended by the Financial System Inquiry.

The cost of this measure will initially be offset in 2016‑17 by an increase in the Financial Institutions Supervisory Levies collected by the Australian Prudential Regulation Authority. However an industry funding model for ASIC will commence in the second half of 2017 and thereafter this additional funding for ASIC may instead be collected as part of that model.

Further information can be found in the joint press release of 20 April 2016 issued by the Treasurer and the Minister for Small Business and Assistant Treasurer.

Australian Small Business and Family Enterprise Ombudsman — expanded advocacy functions

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of the Treasury 4.2 4.0 4.0 4.1

The Government will provide $16.3 million over four years from 2016‑17 to support the activities of the Australian Small Business and Family Enterprise Ombudsman and to expand the advocacy function of the Ombudsman.

This measure builds on the 2014‑15 Budget measure titled Small Business and Family Enterprise Ombudsman.

Australian Taxation Office — Functional and Efficiency Review

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Australian Taxation Office 0.5 ‑7.4 ‑7.4 ‑7.5

The Government will achieve efficiency savings of $21.8 million over four years from 2016‑17 by reducing stand alone and co‑located Australian Taxation Office (ATO) shopfronts in favour of myGov shopfronts, while actively promoting digital service delivery, expanding ATO external compliance assurance processes, and implementing more efficient processes for external scrutiny of the ATO.

Commonwealth Assistance for Western Australia

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of the Treasury 490.0

The Australian Government will provide an additional $490.0 million in 2015‑16 for the Forrestfield Airport Link in Western Australia. Western Australia continues to receive the lowest share of GST revenue, as a proportion of population share, of any state or territory. This investment recognises this and effectively stops the drop in Western Australia's share of the GST, ensuring Western Australia's GST relativity is maintained at its 2014‑15 level.

Further information can be found in the joint press release of 10 April 2016 issued by the Prime Minister, the Treasurer and the Minister for Finance.

eInvoicing

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of the Treasury
Australian Taxation Office
Total — Expense

The Government will undertake a detailed study into the costs and benefits of adopting electronic invoicing (eInvoicing) by the Australian Government. The study will help the Government identify the feasibility of eInvoicing and how the Government may best unlock the potential for eInvoicing to improve government efficiency.

Broader adoption of eInvoicing with State and Territory and local governments will be considered in the study.

The cost of implementing the measure will be met from within the existing resources of the Australian Taxation Office.

This measure builds on the Government's Fintech Statement released on 21 March 2016.

Financial Assistance to the New South Wales (NSW) Government for NSW Police

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of the Treasury 0.1 2.9 4.6

The Government will provide $7.6 million over three years from 2017‑18 (part of $15.2 million over six years from 2017‑18) under a four year transitional funding agreement with the New South Wales (NSW) Government for NSW police. The funding agreement will equally share the costs of reimbursing NSW police officers who incur an additional tax liability from making voluntary superannuation contributions that exceed the concessional contributions cap due to the impact of NSW's death and disability insurance premiums. The agreement also covers the cost‑sharing of any fringe benefits tax that results from reimbursing police officers in these situations.

This will ensure NSW police officers have the same capacity to make voluntary concessional contributions toward their retirement as those individuals who are not subject to compulsory employer insurance premiums that contribute toward the concessional cap.

This agreement will take effect for the 2016‑17 financial year: that is, in respect of contributions made in, and tax assessments for, 2016‑17.

Further information can be found in the joint press release of 27 April 2016 issued by the Treasurer and the Treasurer of NSW.

Financial Technology Innovation

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of the Treasury 0.2

The Government will provide $0.2 million in 2016‑17 to promote Australia internationally as a financial technology (FinTech) destination.

This measure builds on the Government's FinTech Statement released on 21 March 2016 and is part of the Government's National Innovation and Science Agenda.

The Government is backing innovation in financial services in the Australian market. This measure supports the promotion of Australian FinTech organisations, and promotes Australia to offshore FinTech innovators. This policy will encourage the development and refinement of new FinTech products and services in the Australian market.

Supporting a successful Australian FinTech industry provides opportunities for financial services exports, as well as the development of products and services, and the creation of value, in other sectors of the Australian economy.

National Register of Foreign Ownership of Water Entitlements

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Australian Taxation Office

The Government will introduce a National Register of Foreign Ownership of Water Entitlements (the Register). The Register will require foreign persons to notify and update their interests in water entitlements with the Australian Taxation Office (ATO), effective from 1 July 2017.

The cost of this measure will be met from within the existing resourcing of the ATO.

Regulatory Reform Agenda — implementation

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of the Treasury 1.7 2.0 2.0

The Government will provide $5.6 million over three years from 2016‑17 to support the Department of the Treasury to meet its obligations under the Government's Regulatory Reform Agenda.

The Department of the Treasury will undertake a series of rolling reviews of regulatory frameworks with an initial focus on issues identified in the Competition Policy Review, the Financial System Inquiry and the tax reform process.

Review of Australia's Dispute Resolution and Complaints Schemes

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of the Treasury

The Government will establish a panel of eminent persons to review the role, powers and governance of the financial system's external dispute resolution and complaints schemes and assess the merits of better integrating these schemes to improve the handling of consumer complaints. The panel will report to the Government by the end of 2016.

The cost of this measure will be met from within the existing resources of the Department of the Treasury.

Further information can be found in the joint press release of 20 April 2016 issued by the Treasurer and the Minister for Small Business and Assistant Treasurer.

Superannuation Complaints Tribunal — sustaining and modernising functions

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Australian Securities and Investments Commission 2.5
Australian Prudential Regulation Authority 5.2
Australian Securities and Investments Commission 2.7

The Government will provide $5.2 million in 2016‑17 (including $2.7 million in capital funding) to the Superannuation Complaints Tribunal (SCT) to improve processes, and to reduce the backlog of complaints lodged with the SCT.

The cost of this measure will be offset by an increase in the Financial Institutions Supervisory Levies collected by the Australian Prudential Regulation Authority.