Funding of the self regulation system
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. Since the establishment of the advertising self regulation system in Australia, the levy has been set at 0.035 per cent, just $3.50 per $10,000 of gross media expenditure.
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. The levy is paid to and administered by the Australian Advertising Standards Council (AASC).
How levy is collected
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 Australian Advertising Standards Council (AASC), the funding body of advertising self-regulation. The AASC holds the industry funds in an account which is drawn upon to pay the costs involved in administering and operating the self regulatory system.
Management of the funds is outsourced, the financial accounts are prepared by chartered accountants and audited by an independent audit firm.
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
- recruitment of Advertising Standards Board members, and payment of 20 Board members from diverse geographical backgrounds at regular meetings
- Advertising Standards Board and Bureau teleconferences, meetings with industry and government as appropriate throughout the year
- 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
- ASB contribution to AANA Code reviews.
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 on particular products and services.
How to contribute levy
ADVERTISERS: please check your media invoices. If you do not see the AASC levy applied please complete the Levy Authorisation form and send it to ASB as a priority – details are on the form. If you buy your media directly, please contact ASB and arrangements can be made to send you a quarterly invoice.
MEDIA AGENCIES: please check you are applying the levy to client media invoices and remit the amounts to AASC using the Remittance Advice form.