JOINT PRESS RELEASE

TREASURER &

PARLIAMENTARY SECRETARY TO THE TREASURER

NO.014

EXTRA FUNDING FOR AUSTRALIA’S KEY CORPORATE REGULATORS

Today the Government allocated over $3 million in additional funding to support key Australian corporate regulators from the interest generated on the Companies Unclaimed Monies Account.

These key regulators are the Australian Securities and Investments Commission (ASIC), the Australian Accounting Standards Board (AASB) and the Takeovers Panel.

The Australian Securities and Investments Commission will receive:

• an extra $1.6 million to fund a better regulation initiative programme designed to further enhance the regulatory decisions it makes, and to streamline the corporate registry; and
• an extra $600,000 to fund a scheme to reunite consumers with their unclaimed monies to ensure monies are returned to their beneficiaries more quickly.

The Australian Accounting Standards Board will receive an additional $825,000 to support its efforts in pursuing the development of accounting standards for companies, the public sector and not-for-profits.

The Takeovers Panel will receive an additional $250,000 to assist Panel members to improve the regulatory framework in the area of private equity takeovers.  The funding will also allow for the Panel to take on additional staff.

This significant allocation of resources to Australia’s key corporate regulatory bodies will assist in a reduction of costs to businesses and improve the regulatory framework.

This announcement stands in stark contrast to the Australian Labor Party’s plans to rip $129.8 million from ASIC’s budget over four years which would amount a 12% cut to the ASIC budget.

ASIC’s operations prevent misconduct that would otherwise harm consumers and investors.  In the 2005-06 financial year, ASIC prosecuted a record 352 people or companies for 920 contraventions of the Corporations Act. 

The Coalition Government remains committed to ensuring that our corporate regulators will always be well resourced to do their job.

CANBERRA

26 March 2007

Contacts:

Renae Stoikos – Treasurer’s Office – 02 6277 7340

Conor O’Brien – Parliamentary Sectary’s Office – 02 6277 2088