The financial services sector faces a 2.4% rise in Australian Prudential Regulation Authority (APRA) levies in the year from July 1.

A Treasury discussion paper says the regulator wants to raise $115.6 million to cover increased supervisory duties.

The cost of running the Australian Securities and Investments Commission (ASIC) will also rise, with a matching rise in levies on the sector expected.

APRA’s 2013/14 operating expenses will rise 3.6% to $124.7 million, while capital expenditure will grow 18.1% to $5.7 million.

It will seek $21.1 million from general insurers, compared with $19.4 million in the current financial year.

APRA will “continue to apply its specialist skills to issues of insurance risk, liability valuations and the quality of reinsurance cover, particularly in view of the recent spate of natural disasters”, Treasury says.

The additional levy for running the National Claims and Policies Database is expected to remain at $700,000 next year.

ASIC’s funding will rise 55.6% to $32.2 million, with $20.9 million coming from levies and the Federal Government covering the rest.

ASIC intends to review costing methodology. Its extra cost is blamed on the Superannuation Complaints Tribunal, the MoneySmart teaching program and stock market reforms.

The closing date for submissions on Treasury’s discussion paper is June 14.