ASIC’s funding has been cut and its staffing levels reduced.

This week’s Budget papers outline a reduction in government funding for the Australian Securities and Investments Commission (ASIC) of $28 million over three years – down from about $348 million this financial year to about $320 million in 2020-21.

Average staffing levels will be reduced by 2 per cent, or 30 positions, next year.

A spokesperson for Financial Services Minister Kelly O'Dwyer said ASIC's resources are not being cut.

“Approximately 20 per cent of ASIC funding is project-driven, so funding and personnel fluctuates from time to time,” the spokesperson said.

“ASIC is well funded and resourced to undertake its important regulatory work.”

Finance Minister Mathias Cormann also said ASIC's capability is not being reduced.

“We have provided additional resources to ASIC, that is a matter of public record,” he said.

“And of course, once the royal commission reports, the Government will consider any findings and recommendations and make further decisions at that point.”

“$10 million is also being provided to ASIC to fund grants to ‘enhance female financial capability’.”

Labor says the regulator’s core operations will be affected.