On 10 November 2014, the Australian Financial Security Authority (“AFSA”) released a Cost Recovery Implementation Statement (“CRIS”) for the 2015-16 year. This CRIS was prepared in line with the 2013-14 Mid-year Economic Fiscal Outlook announcing that AFSA was to be funded solely through cost recovery. The proposed fees and charges are expected to be implemented on 1 July 2015 upon approval by the Attorney-General.
AFSA do not intend on introducing new fees. However, increases in charges for the following areas will apply, subject to approval:
- National Personal Insolvency Index (“NPII”) search;
- Personal Insolvency Reporting Services (“PIRS”); and
- Realisations charge
NPII is a public record search of Personal Insolvency proceedings in Australia. The NPII search is proposed to increase by $3.00 from $12.00 to $15.00. The increase does not appear significant per search, however, based on the figures provided by AFSA the expected revenue for the total NPII searches conducted is proposed to increase by $973,113.00.
The PIRS is the way in which AFSA transmits reports and file downloads of information from the NPII to credit reporting and licensing organisations. The PIRS is expected to increase from $2.00 to $7.50. The $5.50 rise in PIRS is expected to increase AFSA’s revenue by $2,459,540.00.
The increase in CRIS and PIRS searches fees will easily improve the required information available directly to the public. These improvements also require AFSA to increase and maintain the security of the data.
The Annual Realisations charge is expected to be increased from the current amount of 6% to 7% providing an expected revenue of $28,490,887.00.
The increased fees and charges that are expected to be implemented will affect a number of entities including Creditors, Practitioners and third parties accessing the information such as banks and other lending bodies.