EXPLANATORY STATEMENT

Select Legislative Instrument 2006 No. 135

Issued by the Authority of the Parliamentary Secretary to the Treasurer

Corporations (Fees) Act 2001

Corporations (Fees) Amendment Regulations 2006 (No. 1)

Section 8 of the Corporations (Fees) Act 2001 (the Corporations (Fees) Act) provides that the Governor‑General may make regulations for the purposes of sections 5, 5A and 6 of that Act, which deal with the imposition of fees for things done under the Corporations Act 2001 (Corporations Act).

The purpose of the Regulations is to reduce the fee paid for certain applications to be registered under the Corporations Act as a company or registrable Australian body from $800 to $400.

The Corporations (Fees) Regulations 2001 (the Principal Regulations) support the package of national corporations legislation enacted in 2001.  In particular, they specify fees for the lodgement of documents with the Australian Securities and Investments Commission (ASIC).

Section 5 of the Corporations (Fees) Act provides that the regulations may prescribe fees (which are imposed as taxes) for chargeable matters and may prescribe more than one fee for the same chargeable matter.  ‘Chargeable matters’ are defined in section 4 of the Corporations (Fees) Act and include the lodgement of documents under the Corporations Act and the making of an inquiry of, or an application to ASIC, in relation to a matter arising under the Corporations Act.

Regulation 3 of the Principal Regulations provides that prescribed fees for chargeable matters are set out in Schedule 1 to the Principal Regulations.  Items 5 and 6 of Schedule 1 specify fees for the lodgement of documents and applications relating to registration of companies and other bodies under the Corporations Act.

In its interim response to the Report of the Taskforce on Reducing the Regulatory Burden on Business entitled Rethinking Regulation, the Government announced in April 2006 that it would halve certain incorporation fees for companies from $800 to $400, at an estimated cost of $216.4 million over the Budget forward estimates period.  The fee reduction will benefit businesses wishing to incorporate.

The Corporations Agreement between the States, the Northern Territory and the Commonwealth, which reflects the constitutional basis of the national corporations legislation, requires the Commonwealth to consult members of the Ministerial Council for Corporations before making amendments to regulations made under the Corporations Act and the Corporations (Fees) Act.   Members of the Ministerial Council for Corporations have been consulted about the Regulations.  However, the approval of members of the Ministerial Council is not required for amendments to regulations relating to fees.

Details of the Regulations are set out in the Attachment.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulations commence on 1 July 2006.

ATTACHMENT

Details of the Corporations (Fees) Amendment Regulations 2006 (No. 1)

Regulation 1:     Name of Regulations

This regulation provides that the title of the Regulations is the Corporations (Fees) Amendment Regulations 2006 (No. 1).

Regulation 2:     Commencement

This regulation provides that the Regulations commence on 1 July 2006.

Regulation 3:     Amendment of Corporations (Fees) Regulations 2001

This regulation provides that the Corporations (Fees) Regulations 2001 (the Principal Regulations) are amended as set out in Schedule 1 to the Regulations.

Schedule 1:     Amendments

Item [1]

Item 1 of Schedule 1 to the Regulations replaces the amount of $800 mentioned in column 3 of item 5, subparagraph (a)(i) in Schedule 1 to the Principal Regulations, with an amount of $400, being the fee prescribed for an application for registration as an Australian company having a share capital.

Item [2]

Item 2 of Schedule 1 to the Regulations replaces the amount of $800 mentioned in column 3 of item 5, subparagraph (b)(ii) in Schedule 1 to the Principal Regulations, with an amount of $400, being the fee prescribed for an application for registration of an existing body corporate as a company that is not already registered as a foreign company.

Item [3]

Item 3 of Schedule 1 to the Regulations replaces the amount of $800 mentioned in column 3 of item 5 paragraph (c) in Schedule 1 to the Principal Regulations, with an amount of $400, being the fee prescribed for an application for transfer of the registration of a company in a State or Territory under section 119A of the Corporations Act.

Item [4]

Item 4 of Schedule 1 to the Regulations replaces the amount of $800 mentioned in column 3 of item 6, subparagraph (a)(ii) in Schedule 1 to the Principal Regulations, with an amount of $400, being the fee prescribed for lodging documents for registration as a registrable Australian body, if incorporated or registered under another law other than a law dealing with the incorporation of associations.

Item [5]

Item 5 of Schedule 1 to the Regulations replaces the amount of $800 mentioned in column 3 of item 6, paragraph (b) in Schedule 1 to the Principal Regulations, with an amount of $400, being the fee prescribed for lodging documents for registration as a foreign company.