Morrison says taxpayers will no longer be forced to foot the bill for the Australian Securities and Investments Commission, as it moves to a user-pays model.

“Those whom it’s enforcing the regulations and rules on will pay the price for that,” Morrison told reporters in Canberra today.

Morrison said ASIC would get a $61 million boost for enhanced data analytics and surveillance capabilities.

“In the 21st century economy, you need a tech cop on the beat,” he said.

ASIC will also get $57 million for increased surveillance, investigation and prosecution capacity to pursue cases.

ASIC boss Greg Medcraft’s term has been extended for 18 months and the government has also appointed an additional commissioner to ASIC with special expertise in prosecution.

“We want an ASIC that leans forward and we want an ASIC that actually prosecutes and takes those matters up,” Morrison said.

Morrison said he would be “furious” if the banks passed the additional costs onto consumers through higher fees and charges.

“(These levies are) easily digestible by the banks and must be and should be.”

The plan is designed to head off Labor’s push for a royal commission into the financial services sector.

Opposition Leader Bill Shorten said the government “has sold out Australians in favour of the big banks”.

“You can see Mr Turnbull’s fingernail marks being dragged across the concrete of parliament in Canberra, where he desperately wants to do anything except see the truth shine through in the banking and financial services sector,” he said.

Shorten warned the banks may pass the cost of bankrolling ASIC under a user-pays model onto their customers.

“They could well,” he said.

Shorten insisted restoring funding to the corporate regulator wouldn’t put the issue to bed, claiming nothing short of a royal commission would do.

“The truth of the matter is asking the regulator to investigate themselves isn’t going to fix anything,” he said.

“What we need is a proper examination of the widespread health of the banking sector.”

KEY POINTS: GOVERNMENT’S PLAN TO BEEF UP ASIC

• $127m package, with the banks to cough up $121m.
• From 2017/18 the financial industry will provide all funding for ASIC, instead of taxpayers.
• Government to spend $61m to modernise ASIC’s data management systems, enhance data analytics and surveillance capabilities.
• Spend $57m for increased surveillance and enforcement by ASIC in financial advice, life insurance, lending.
• Spend $9m to ensure ASIC and Treasury can implement law and regulatory reform.
• ASIC chairman Greg Medcraft’s term extended for 18 months.
• Additional ASIC commissioner with expertise in prosecution of financial crime will be appointed.
• Review and additional funds for dealing with complaints and resolving disputes.

AAP