EXPLANATORY STATEMENT
Corporations (Aboriginal and Torres Strait Islander)
Determination 1 / 2009
Summary
The Corporations (Aboriginal and Torres Strait Islander) Determination 1/2009 (the determination) is made under subsection 353-10(1) of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (the Act) by the Registrar of Aboriginal and Torres Strait Islander Corporations.
The determination exempts Aboriginal and Torres Strait Islander corporations from having to report certain trust and land information in their annual general report for the financial year ending 30 June 2009 and subsequent financial years.
Background
The revised explanatory memorandum of the Corporations (Aboriginal and Torres Strait Islander) Bill indicated that chapter 7 of the Bill implemented review recommendations that the Registrar be able to exempt classes of corporations from the reporting requirements. Chapter 7 enables flexible and responsive administrative practices. Reporting requirements can be adjusted for individual corporations or classes of corporations. Exemptions from the operation of the chapter can be given for specific corporations or classes of corporations.
The revised explanatory memorandum stated that ‘section 353-10 is based on section 341 of the Corporations Act and provides the Registrar with the power to relieve classes of corporations (or their directors or auditors) from the record keeping and reporting requirements of the chapter, including any regulations made for the purposes of chapter 7 of the Bill.’
Explanation of the provisions
Clause 1 specifies the title of the determination.
Clause 2 sets out commencement information for the determination. The determination takes effect the day after it is registered on the Federal Register of Legislative Instruments.
Clause 3 sets out the exemption.
Aboriginal and Torres Strait Islander corporations must prepare and lodge an annual general report containing required information. The determination exempts Aboriginal and Torres Strait Islander corporations from having to report the following required information in their annual general report:
- if the corporation is a trustee of a trust — the name of, or other information identifying, the trust;
- if the corporation has a subsidiary that is the trustee of a trust: the name of the subsidiary, and the name of, or other information identifying, the trust;
- if a corporation is a beneficiary of a trust: the name of each trustee and the name of, or other information identifying, the trust;
- if the corporation has a subsidiary that is a beneficiary of a trust: the name of the subsidiary, the name of each trustee, and the name of, or other information identifying, the trust;
- if the corporation is the proprietor or registered proprietor of Torrens system land: the address of the land, the nature of the estate, a description of the land (including the lot and plan description, and title particulars of the land), and whether the land is held by the corporation in its own right or as trustee;
- if the corporation is the legal owner or lessee of a freehold or leasehold estate in general law land: the address of the land, the nature of the estate, a description of the land (including the lot and plan description, and title particulars of the land), and whether the land is held by the corporation in its own right or as trustee.
The determination applies in respect of general reports prepared for the financial year ending 30 June 2009 and subsequent financial years.
The determination was made to reduce the reporting obligations on Aboriginal and Torres Strait Islander corporations.
Consultation
The Registrar did not consult because the Registrar is satisfied that consultation is unnecessary and inappropriate in this case. The determination reduces the reporting obligations on Aboriginal and Torres Strait Islander corporations. They will not be required to include certain trust and land information in their annual general report.
Regulatory Impact Analysis
The determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure. The determination exempts regulatory requirements for Aboriginal and Torres Strait Islander corporations, will not impact on business activity and will have no, or minimal, compliance costs or competition impact. Their business compliance costs will be reduced.
Each year the Registrar sends out an individual general report form for all Aboriginal and Torres Strait Islander corporations to complete. The Registrar will send each corporation a new general report which omits questions about trusts and land. The Registrar will also prepare a new general report form and make it available generally on the Registrar’s website.
Legislative instrument
The determination is made in relation to all Aboriginal and Torres Strait Islander corporations. It is a class determination. Accordingly, under section 353-10(5) of the Act, the determination is a legislative instrument.
This is the first class determination made under section 353-10(1) of the Act.