Funding

Self-regulation of the Australian advertising industry is funded by a levy system.

Recognising the value of self-regulation to the broader community as well as to advertisers and their agencies, responsible advertisers agree to the levy being applied to their ad spend. The levy rate is set at 35 cents per $1,000 of gross media expenditure [0.035%].

The levy is mainly collected through media buying agencies as well as advertisers and advertising agencies which buy their own media space. The levy is remitted through the Australian Advertising Standards Council as the funding body of advertising self-regulation.  This ensures appropriate commercial confidentiality in relation to the expenditures of individual advertisers on particular products and services, and provides for proper accountability for the monies applied to the operational and promotional activities of the Advertising Standards Bureau.

All monies collected by the voluntary levy system are applied exclusively to activities necessary to the maintenance of the self-regulation system, with management of the funds outsourced and accounts audited by separate firms of chartered accountants.

Participating advertisers demonstrate their support for self-regulation by instructing their advertising agencies to adhere to its various codes of advertising standards, by agreeing to the levy being applied to their media expenditures, and by complying with decisions of the Advertising Standards Board.

Participating advertising agencies support the system by monitoring the various codes and their implementation through the determinations on public complaints by the Advertising Standards Board and consulting with their advertiser clients.

Participating media buyers support the system by collecting and remitting the levy through their accounting systems.

Participating media operators support the system by promoting self-regulation through advertising material prepared by the Advertising Standards Bureau.

This whole-of-industry support, which was established in 1997, remains fundamental to the success of Australia 's world class system of advertising industry self-regulation.