Treasury predicts the financial services inquiry will cost $3.6 million this financial year, which it is looking to cover in this year’s budget.

It also wants a further $200,000 funding for the department, to cover internal costs.

The inquiry is expected to cost an additional $2.2 million next financial year.

The costs are included in a portfolio additional estimates statement, which covers proposed expenditure for the financial year.

The statement also reveals a drop in the cost of the National Insurance Affordability Initiative, down by $5.8 million this financial year and $4.4 million in the next one.