It's the Lib's answer to banking Royal Commission
THE nation's corporate regulator will be given an extra $127 million to help scrutinise and investigate the financial services sector and increase surveillance.
Treasurer Scott Morrison announced the funding yesterday in a move to quell backbench calls for the government to meet Labor's pledge of a royal commission into banks.
The funds will be matched with extra powers for the Australian Securities and Investments Commission and immediate action on five key recommendations from the recent financial systems inquiry.
The banks will have a new levy imposed on them to raise the extra revenue, in a move that brings ASIC in line with several other government regulators.
Mr Morrison said the levy would initially raise $120 million, but eventually cover the entire budget of the regulator.
He said he would be "furious" if the banks passed on to consumers any cost impact of the new tax, in the face of threats of an anti-mining tax style campaign.