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. 4 Advertising Standards Bureau