Winners and losers of FMA levy hike

The government currently pays 25 percent of the Financial Markets Authority’s $36 million operational budget with the rest funded through industry levies.

The big banks and insurers – which are undergoing major regulator scrutiny at present following fallout from the Australian Financial Services Royal Commission, will shoulder the bulk of the increase.

The country’s biggest four banks will take on a 70 percent levy hike next year, while a shift in tiers for insurers will mean some of the largest will pay 50 percent more.

The changes were announced in last week’s budget, when the government lifted the budget for the financial regulator by $12.5 million for financial year 2020/21, and said it wants to be at $60.8 million by 2022/23.