Advertising Standards Bureau Review of Operations 2016 2016 Review of operations_WEB | Page 6

Funding of self‑regulation
Who funds the
self-regulation system?
Responsible advertisers assist in maintaining the
self-regulation system’s viability and support its
administration by agreeing to a levy being applied
to their advertising spend. At the establishment of
the advertising self-regulation system in Australia,
the levy was set at 0.035 per cent, just $3.50 per
$10,000 of gross media expenditure. Since
April 2014 the self-regulation levy is set at 0.05%
($500 per $1m of media buying).
Management of the funds is outsourced, with
the financial accounts prepared by chartered
accountants and audited independently.
What the levy is used for
All levy monies are applied exclusively to the
maintenance of the self-regulation system and are
used to finance activities such as:
• general ASB administration and operation
of the self-regulation system, including
maintenance of complaints management
Funding of the Advertising Standards Bureau
(ASB) and its secretariat support of the
Advertising Standards Board and Advertising
Claims Board is provided through the voluntary
levy - the ASB receives no government funding. 1
The levy is paid to and administered by
the Australian Advertising Standards
Council (AASC). • recruitment of Advertising Standards Board
members, and attendance of 20 Board
members from diverse geographical
backgrounds at regular meetings
• Advertising Standards Bureau meetings
and teleconferences with industry and
government as appropriate throughout
the year
How levy is collected • research to assist Advertising Standards
Board members and the community to
understand self-regulation and specific
Code related issues, including research into
community standards and levels of awareness
of the ASB
• AANA Code reviews.
The levy is collected mainly through media
buying agencies but also directly from advertisers
and advertising agencies that buy their own
media space.
The levy is remitted quarterly through the AASC,
the funding body of advertising self-regulation.
The AASC holds the industry funds in an
account which is drawn upon to pay the ASB
costs involved in administering and operating the
self-regulation system.
Confidentiality of levy collected
The amount of levy collected from individual
advertisers is kept confidential from the
Board and Directors of both the ASB and the
AASC. This ensures appropriate commercial
confidentiality about the expenditures of
individual advertisers.
1 Other than payments by some State and
Territory departments in their capacity
as advertisers.
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Advertising Standards Bureau