Mr SLIPPER (Parliamentary Secretary to the Minister for Finance and Administration) (11:03 AM) —I will be quite brief because I have just been called down to the main chamber to sum up another bill; a couple of speakers have dropped off the list. The bills introduced by the government on 12 December last year—Corporations Legislation Amendment Bill 2002, Corporations (Fees) Amendment Bill 2002 and Corporations (Review Fees) Bill 2002—represent a further instalment of the government's Corporate Law Economic Reform Program. The bills implement the seventh stage of the program known as streamlined lodgments and compliance—or CLERP 7.

The CLERP 7 reforms simplify and reduce document lodgment and compliance procedures for Australian companies. This will facilitate a more efficient and competitive business environment. The changes will be of particular benefit to small business. Around one million proprietary companies will no longer need to provide ASIC with an annual return, thus significantly reducing paperwork—and that was referred to by the member for Wentworth. Small business will also benefit from reduced business costs and charges, and from being able to access more reliable, accurate and timely information. The reforms contained in this legislation will cut the compliance burden for Australian companies. The bills will streamline the relationship between business and the Australian Securities and Investments Commission. They are a further illustration of the objective of the government's Corporate Law Economic Reform Program to provide a modern and efficient regulatory framework for Australian business and to encourage wealth creation for the benefit of all Australians.

The member for Kingston referred to the matter of revenue. The situation is that the cost recovery arrangements for ASIC must be viewed as a whole, taking into consideration the overall costs of the regulatory scheme. A significant proportion of the corporations fee revenue is ultimately transferred to the states and the Northern Territory under the Corporations Agreement. In 2002-03, it was in excess of $150 million. In addition, some fee revenue was notionally allocated to fund operations of other bodies that perform functions under the national corporate regulatory scheme—for example, the Director of Public Prosecutions and the Australian Accounting Standards Board.

In a given financial year there may be a surplus or deficit where the overall costs are factored in. For example, the early years of operating the National Corporate Regulation Scheme generated a significant accumulated deficit. Corporation fees are set by the government in the context of a policy that over time the overall costs of the corporate regulatory framework are recovered. These arrangements are subject to consideration in the Productivity Commission's inquiry report No. 15, Cost recovery by government agencies. The ASIC arrangements are to be reviewed in line with the government's schedule of reviews in response to the Productivity Commission's report announced by the Minister for Finance and Administration in December last year. I thank the opposition for its support and commend all three bills to the chamber.

Question agreed to.

Bill read a second time.