Close Corporations (Fees) Act 1989

Overview

The Close Corporations (Fees) Act 1989 was enacted to address the need for a structured approach to the collection of fees for services provided under the Close Corporations Act 1989. This Act was passed by the Queen, with the advice and consent of the Senate and the House of Representatives of the Commonwealth of Australia, and came into operation on a date to be determined by proclamation. The primary objective of this legislation is to outline the fees payable to the Commonwealth for various activities related to the administration and registration of close corporations, ensuring a transparent and regulated process for fee collection. The Governor-General is empowered to make regulations prescribing these fees, with a maximum limit of $2,500, to support the effective functioning of the provisions under the Close Corporations Act 1989.

Scope and Application

The Close Corporations (Fees) Act 1989 applies to the fees payable for various actions and transactions related to close corporations as defined under the Close Corporations Act 1989. These fees are applicable to a wide range of activities, including the lodgment of documents, the registration and inspection of these documents, the issuance of documents and the granting of licenses or approvals, among others. This Act applies to any person or entity involved in the aforementioned activities within the framework of the Close Corporations Act 1989. The geographic reach of the Act is national, given that it is a Commonwealth Act. The Act allows for the regulation of fees, with a maximum limit of $2,500, through subordinate legislation, which can further define or restrict the application of these fees. There are provisions for the waiver or reduction of fees in specific cases, as well as the possibility of partial or full refunds of fees already paid.

Key Provisions

The Close Corporations (Fees) Act 1989, as enacted, pertains specifically to the fees payable for various services related to close corporations under the Close Corporations Act 1989 (section 4). The Act mandates the payment of fees for activities such as lodgment of documents, registration, inspection, and issuance of documents, among others (section 4(1)). It specifies that while fees are required, non-payment does not invalidate the lodgment of a document, but rather makes the unpaid fee a debt recoverable by the Commission (section 4(2)). Additionally, the Act prohibits the Minister or the Commission from performing certain acts or issuing certain documents until the applicable fee has been paid (section 4(3)). The Commonwealth retains the flexibility to waive, reduce, or refund fees in specific circumstances (section 4(5)). Under this Act, close corporations and related entities are obliged to ensure that all applicable fees are paid before certain services are rendered by the Minister or the Commission (section 4(1) and (3)). These entities must submit the requisite fees alongside documents for lodgment, registration, or other services as outlined (section 4(1)). Failure to pay the fee does not negate the lodgment of the document, but the fee becomes a debt owed to the Commonwealth, enforceable through legal means (section 4(2)). Additionally, the Act requires that the Minister or the Commission refrain from performing their duties until the required fee has been paid (section 4(3)). The Act imposes penalties and consequences for non-compliance with the fee payment provisions. Non-payment of the fee does not nullify the lodgment of a document, but transforms the unpaid fee into a debt that can be pursued in court (section 4(2)). Furthermore, the Minister or the Commission is prohibited from executing their duties until the fee is paid (section 4(3)). The Act also authorizes the Governor-General to make regulations prescribing fees not exceeding $2,500, ensuring that any fee set remains within this limit (section 5).