Revised Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP)Chapter 3: Payment methods
Outline of chapter
3.1 Part 3 of Schedule 1 to the Bill facilitates the greater use of electronic payments by removing outdated restrictions that preserve where or how a payment may be made.
Context of amendments
3.2 There are provisions scattered across Treasury laws which require payments to be made at a particular place or otherwise restrict the method of payment.
3.3 These rules limited flexibility for both consumers and credit licensees when updating contact details such as advising of nominated addresses for communication. They may also have limited the use of electronic payments.
Summary of new law
3.4 The amendments in Part 3 of Schedule 1 to the Bill are made to ensure that digital payments are supported by Treasury laws.
Comparison of key features of new law and current law
Table 3.1 Comparison of new law and current law
| New law | Current law |
| For a call on shares in a no liability company to be payable, the company is required to give notice to the shareholders of the amount of the call, when it is payable and the details for payment. | For a call on shares in a no liability company to be payable, the company is required to give notice to shareholders of the amount of the call, when it is payable and the place for payment. The notice must be sent by post. |
| The penalty imposed by an infringement notice under the Excise Act may be paid in any way stated in the notice. | The penalty imposed by an infringement notice under the Excise Act may be paid by delivery or postage to the place of payment stated in the notice, or in any other way stated in the notice. |
| There is no requirement for a deposit form. | The deposit form accompanying the deposit paid to the Commissioner of Taxation under Part 4 of the SSAA must include certain specifications as to the method of payment. |
Detailed explanation of new law
3.5 Part 3 of Schedule 1 to the Bill removes technologically prescriptive requirements relating to payments.
3.6 Part 3 of Schedule 1 to the Bill removes the requirement for a no liability company to notify shareholders of the place of payment. This removes any uncertainty that companies can provide for any method of payment, including digital methods. The previous requirement to send the notice by post is also omitted. [Schedule 1, items 78 and 79, paragraph 254P(2)(c) and subsection 254P(2) of the Corporations Act ]
3.7 Part 3 of Schedule 1 to the Bill amends the Excise Act to allow penalties imposed by an infringement notice issued under that Act to be paid in any way specified in the notice. [Schedule 1, item 80, paragraph 129C(2)(a) of the Excise Act]
3.8 Finally, Part 3 of Schedule 1 to the Bill repeals section 32 of the SSAA. This section requires the deposit form accompanying the deposit paid to the Commissioner of Taxation under Part 4 of the SSAA to include certain specifications as to the method of payment. [Schedule 1, item 81, section 32 of the SSAA]