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Corporations (National Guarantee Fund Levies) Bill 2001

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2001

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

CORPORATIONS (NATIONAL GUARANTEE FUND LEVIES) BILL 2001

EXPLANATORY MEMORANDUM

(Circulated by authority of

the Minister for Financial Services and Regulation, the Honourable J.B. Hockey MP

and the Attorney-General, the Honourable Daryl Williams AM QC MP)

 

 

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1

Outline 1.

1.1.      The Corporations (National Guarantee Fund Levies) Bill 2001 is one of a package of bills responding to the High Court’s decisions in Re Wakim; ex parte McNally (1999) 198 CLR 511 and The Queen v Hughes (2000) 74 ALJR 802; 171 ALR 155.

1.2.      The other bills are:

·           Corporations Bill 2001;

·           Australian Securities and Investments Commission Bill 2001;

·           Corporations (Fees) Bill 2001;

·           Corporations (Securities Exchanges Levies) Bill 2001;

·           Corporations (Futures Organisations Levies) Bill 2001; and

·           Corporations (Repeals, Consequentials and Transitionals) Bill 2001.

1.3.      The object of these seven Bills is to establish a replacement legislative foundation for the Corporations Law scheme.  This Bill will, in effect, re-enact the provisions of the corporations legislation concerning contributions to the National Guarantee Fund in the form of taxation legislation that complies with Commonwealth constitutional requirements.  It also establishes certain transitional arrangements.

1.4.      Further information about the background to these Bills may be found in the explanatory memorandum for the Corporations Bill 2001.

 

 



 

 

 

2

Regulation Impact Statement and Financial Impact Statement 2.

Regulation impact statement

2.1.      The Bill is part of a package of measures which will for practical purposes restore the regulatory environment which existed before the High Court’s decisions in Hughes and Wakim .

2.2.      On that basis, the Office of Regulation Review has advised that a Regulation Impact Statement is not required for the Bill.

Financial impact statement

2.3.      The Bill does not have any financial impact.

 

 



 

 

 

3

Notes on individual clauses 3.

Clause 1:   Short title

3.1.      The short title of the Act will be the Corporations (National Guarantee Fund Levies) Act 2001 .

Clause 2:   Commencement

3.2.      The Bill will commence at the same time as the Corporations Act 2001 .

Clause 3:    Definitions

3.3.      Expressions used in the Bill that are defined in a provision of the Corporations Bill 2001 that apply for the purposes of Division 4 of Part 7.10 of that Bill have the same meanings in this Bill.

Clause  4:    Imposition of levies in respect of National Guarantee Fund

3.4.      The Bill will impose the following levies:

(a)     any levy that is payable under clause 938 of the Corporations Bill 2001.  Clause 938 allows the Securities Exchange Guarantee Corporation (SEGC) to determine that a levy is payable towards the National Guarantee Fund on certain transactions involving securities by a person or partnership;

(b)     any levy that is payable under clause 940 of the Corporations Bill 2001.  Clause 940 allows the SEGC to determine that a levy is payable towards the National Guarantee Fund by the Australian Stock Exchange Limited or by a participating exchange that is a securities exchange; and

(c)     any levy that is payable under clause 941 of the Corporations Bill 2001.  A participating exchange that is required to pay a levy under clause 940 of Corporations Bill 2001 may require its members or member organisations to pay a contribution towards the exchange’s liability for that levy.

3.5.      These levies are equivalent to those presently payable under sections 938, 940 and 941 of the Corporations Law respectively.

Clause 5:   Rates of levies

3.6.      The rates of different levies are determined in the same way as the equivalent rates are determined under the Corporations Law.

3.7.      The SEGC may determine the rate at which the levy is payable under paragraph 4(a).  In keeping with subsection 938(3B) of the Corporations Law, the SEGC may determine different rates of levy in respect of transactions in different kinds of securities or by different classes of dealers.  The SEGC may also determine the amount of the levy that is payable under paragraph 4(b).

3.8.      The relevant participating exchange may determine the amount of the levy that is payable under paragraph 4(c).

Clause 6:    Transitional matters

3.9.      Levies payable under sections 938, 940 or 941 of the Corporations Law immediately before the commencement of the Corporations Act 2001 will be imposed as taxes at the same rate or amount on commencement.  A determination of a rate or amount under sections 938, 940 or 941 of the Corporations Law continues to have effect as though it were a determination made for the purposes of subclauses 5(1), (2) or (3) of the Bill respectively.

3.10.    It is expected that the pre-existing liability under the Corporations Law of the States and the Northern Territory will be extinguished by State and Northern Territory legislation.  Liabilities to pay fees under the Corporations Law of the ACT will be extinguished by the Corporations (Repeals, Consequentials and Transitionals) Bill 2001.