Submission: ASIC CRIS 2020–21
ARITA has made a submission to ASIC in relation to the consultation version of the Cost Recovery Implementation Statement (CRIS) for the 2020–2021 financial year. The CRIS provides indicative levies for the Industry Funding Model (IFM).
ARITA continues to raise concerns about the IFM, particularly:
- the adverse impact on liquidator numbers
- the difficulty with the ex-post nature of the IFM
- the late provision of the consultation version of the CRIS (after the end of the financial year it relates to)
- disproportionate application of the IFM to liquidators
- lack of transparency about the costs and how they are allocated
- that the indicative levies do not seem to have taken into account the dramatic fall in the number of insolvency appointments due to Coronavirus
- significant increase in budgeted costs notwithstanding low levels of insolvency appointments
- lack of guidance from ASIC as to practical implications (application of IFM to companies in external administration)
- increased compliance burden from the IFM, and
- lack of true stakeholder engagement.
Read ARITA's submission
Read the consultation version of the Cost Recovery Implementation Statement (CRIS) for the 2020/21 financial year