Revised Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP)General outline and financial impact
Law Improvement Program
The Treasury Laws Amendment (Modernising Business Communications and Other Measures) Bill 2022 implements measures that have been developed through the Law Improvement Program (LIP).
The LIP is an ongoing program of work that supports the regulatory stewardship of Treasury portfolio laws. The Program of work is designed to ensure that Treasury laws remain current and fit-for-purpose.
The Bill implements law improvement measures across four streams: technology neutral communications in Schedule 1, recommendations of the ALRC Review in Schedule 2, the rationalisation of ASIC instruments in Schedule 3 and minor and technical amendments in Schedule 4, MTAs. The amendments in Schedules 2 to 4 are largely made within existing policy parameters.
Measures in the LIP incrementally improve and maintain Treasury's portfolio legislation and contribute to ensuring the long-term structural functionality, usability and quality of Treasury portfolio legislation.
Schedule 1 - Modernising business communications
Outline
Schedule 1 to the Bill amends the Corporations Act and other Commonwealth Acts to modernise communication methods available to consumers, businesses and regulators when interacting with each other by:
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- extending the global communications regime, allowing members of certain entities to elect to receive documents in either hard copy or electronic form, and providing relief to entities that are unable to contact members under the Corporations Act (Part 1);
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- ensuring that regulatory bodies in the Treasury portfolio can hold hearings and examinations using technology (Part 2);
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- updating payment provisions in Treasury laws to allow electronic payments to be used (Part 3); and
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- replacing requirements in Treasury laws to publish notices in newspapers with a requirement that notices be published in an accessible and reasonably prominent manner (Part 4).
Date of effect
Parts 1, 2 and 3 of Schedule 1 to the Bill commence on the day after Royal Assent.
Part 4 of Schedule 1 to the Bill commences on a single day to be fixed by Proclamation. If this Part does not commence within the period of 6 months beginning on the day the Bill receives Royal Assent, it commences on the day after the end of that period.
Proposal announced
Schedule 1 to the Bill partially implements the Commonwealth's Deregulation Agenda measure from the 2021-22 Budget.
Financial impact
Schedule 1 to the Bill has no financial implications.
Regulation Impact Statement
The amendments in Schedule 1 to the Bill will benefit companies, registered funds, foreign passport funds, and other registered entities, their members, officers and service providers, and bidders and holders of securities in takeover targets.
A Preface update to the RIS is included in Attachment 1, which provides updates to the RIS methodology and outcomes based on stakeholder feedback and expanded scope of clarification amendments compared to the original published version of the RIS. The link to the previously tabled RIS included in the lapsed Treasury Laws Amendment (Modernising Business Communications) Bill 2022 can be accessed at the Australian Parliament House website. [1] :
Human rights implications
Schedule 1 to the Bill raises human rights issues. See Statement of Compatibility with Human Rights - Chapter 8.
Compliance cost impact
The average regulatory cost reductions of the measures in Schedule 1 to the Bill are $59.3 million per year.
Schedule 2 - ALRC Financial Services Interim Report
Outline
In Interim Report A, the ALRC found that Australia's financial services legislation is challenging to navigate and complex for individuals and businesses, who may have obligations under the law.
Schedule 2 to the Bill implements recommendations and other suggested improvements identified by the ALRC in Interim Report A to simplify and improve the navigability of Australia's financial services laws.
Date of effect
Schedule 2 to the Bill commences on the day after Royal Assent.
Proposal announced
Schedule 2 to the Bill implements the amendments announced on 24 August 2022 in relation to reducing complexity and improving navigability of Australia's corporations and financial services law.
Financial impact
Schedule 2 to the Bill has no financial implications.
Human rights implications
Schedule 2 to the Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 8.
Compliance cost impact
Schedule 2 to the Bill has no ongoing additional compliance cost impact or additional impact on regulatory burden.
Schedule 3 - Rationalisation of Ending ASIC Instruments
Outline
Schedule 3 to the Bill amends the Corporations Act and the NCCPA to transfer longstanding and accepted matters currently contained in ASIC legislative instruments into the primary law. The amendments will improve navigability of the law and provide industry and consumers with greater certainty and clarity when interacting with Treasury laws.
Date of effect
Schedule 3 to the Bill commences on the day after Royal Assent.
Proposal announced
Schedule 3 to the Bill implements the amendments announced on 24 August 2022 in relation to reducing complexity and improving navigability of Australia's corporations and financial services law.
Financial impact
Schedule 3 to the Bill has no financial implications.
Human rights implications
Schedule 3 to the Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 8.
Compliance cost impact
Schedule 3 to the Bill is unlikely to have more than a minor impact on compliance costs.
Schedule 4 - Miscellaneous and Technical Amendments
Outline
Schedule 4 to the Bill makes a number of miscellaneous and technical amendments to Treasury portfolio legislation. The amendments reflect the Government's ongoing commitment to the care and maintenance of Treasury portfolio legislation.
The amendments correct drafting errors, repeal inoperative provisions, address unintended outcomes and make other technical changes.
Date of effect
Sections 1 to 3 of the Bill commence on the day the Bill receives Royal Assent.
Part 1 of Schedule 4 to the Bill commences on the day after Royal Assent.
Part 2 of Schedule 4 to the Bill commences on the first 1 January, 1 April, 1 July or 1 October to occur after the day the Bill receives Royal Assent.
Proposal announced
Schedule 4 to the Bill fully implements the miscellaneous amendments measure announced on 2 September 2022.
Financial impact
The amendments in Schedule 4 to the Bill are estimated to have a small but unquantifiable impact on receipts over the forward estimates period.
Human rights implications
Schedule 4 to the Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 8.
Compliance cost impact
Schedule 4 to the Bill is unlikely to have more than a minor impact on compliance costs.