Corporations (Fees) Amendment Regulation 2012 (No. 1)

Administered by Department of the Treasury

Legislation au F2012L01551 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2012 No. 173

 

Issued by authority of the Minister for Financial Services and Superannuation

Corporations (Fees) Act 2001

Corporations (Fees) Amendment Regulation 2012 (No. 1)

Section 5 of the Corporations (Fees) Act 2001 (the Act) provides that the Governor‑General may make regulations prescribing fees for chargeable matters as defined in the Act.  The Corporations (Fees) Regulations 2001 (the Principal Regulations) prescribes the amount of fees for each chargeable matter. 

The Corporations (Fees) Amendment Regulation 2012 (No. 1) amends the Principal Regulations to increase the application fee to obtain an Australian Financial Services Licence (AFSL) and annual lodgement fee for an AFSL holder from 1 August 2012.  These fee increases are intended to offset the cost of providing additional funding to the Australian Securities and Investments Commission (ASIC) to enhance its regulation of the financial services sector in Australia.

The Regulation prescribes:

–               the increase to the AFSL application fee for a body corporate, partnership or non-corporate trustee, using the ASIC eLicensing service or any other form from $287 or $575 respectively to $1485 per application;

–               the increase to the AFSL application fee for an individual using the ASIC eLicensing service or any other form from $159 or $351 respectively to $825 per application;

–               the increase to the AFSL annual lodgement fee for a body corporate, partnership or non-corporate trustee from $351 to $549 per annum; and

–               the increase to the AFSL annual lodgement fee for an individual from $144 to $225 per annum.

The decision to increase the application and lodgement fees related to AFSLs was made as part of the development of the 2012-13 Budget and as such was not subject to public consultation.  ASIC were consulted in the development of this Regulation implementing the Government’s decision. 

Details of the Regulation are set out in Attachment A.

A statement of the Regulation’s compatibility with human rights is set out in Attachment B.

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Act does not specify any conditions that need to be satisfied before the power to make the Regulation may be exercised.

The Regulation commences on 1 August 2012.

ATTACHMENT A

Details of the Corporations (Fees) Amendment Regulation 2012 (No. 1)

Section 1 – Name of Regulation

The regulation provides that the name of the Regulation is the Corporations (Fees) Amendment Regulation 2012 (No. 1).

Section 2 – Commencement

This regulation provides for the Regulation to commence on 1 August 2012.

Section 3 – Amendment of the Corporations (Fees) Regulations 2001

This section provides that Schedule 1 amends the Corporations (Fees) Regulations 2001 (the Principal Regulations).

Schedule 1 – Amendments

Item [1] – Schedule 1, table, item 1, columns 2 and 3

Item 1 amends the Principal Regulations to update the fee for a body corporate, partnership or non-corporate trustee who applies for an Australian Financial Services Licence (AFSL) to $1485.

Item 1 paragraph (b) amends the Principal Regulations to update the fee for an individual who applies for an AFSL to $825.

The AFSL application fee is not adjusted for changes in the Consumer Price Index (CPI) on 1 August 2012; indexing will commence on 1 July 2013.

Item [2] – Schedule 1, table, item 9, columns 2 and 3

Item 2 paragraph (a) amends the Principal Regulations to update the AFSL annual lodgement fee for a body corporate, partnership or non-corporate trustee to $549.

Item 2 paragraph (b) amends the Principal Regulations to update the AFSL annual lodgement fee for an individual to $225.

The AFSL annual lodgement fee is not adjusted for changes in the CPI on 1 August 2012; indexing will commence on 1 July 2013.


ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Corporations (Fees) Amendment Regulation 2012 (No. 1)

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

This Legislative Instrument increases the application and annual lodgement fees associated with an Australian Financial Services Licence.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

The Corporations (Fees) Amendment Regulation 2012 (No. 1) was enacted to address the need for additional funding to the Australian Securities and Investments Commission (ASIC) to enhance its regulation of the financial services sector. The Corporations (Fees) Act 2001 allows the Governor-General to make regulations prescribing fees for chargeable matters, and this amendment increases the fees for obtaining and maintaining an Australian Financial Services Licence (AFSL). The policy objective, as outlined in the explanatory statement, was to implement the 2012-13 Budget decision to increase these fees, providing ASIC with the necessary resources to strengthen its regulatory activities. The decision was developed in conjunction with ASIC but was not subject to public consultation. The regulation became effective on 1 August 2012, and it includes specific increases in fees for both applications and annual lodgements for both corporate and individual applicants. The amendment also stipulates that fee indexing will commence on 1 July 2013.

Scope and Application

The Corporations (Fees) Amendment Regulation 2012 (No. 1) pertains to the Corporations (Fees) Act 2001 and is applicable to individuals and entities seeking to obtain or maintain an Australian Financial Services Licence (AFSL) within Australia. The regulation sets forth increased fees for both the initial application and the annual lodgement for AFSLs, effective from 1 August 2012, and is designed to offset the costs associated with enhancing the Australian Securities and Investments Commission's (ASIC) regulatory functions in the financial services sector. The regulation applies across the Commonwealth, and there are specific fee structures for both corporate and individual applicants, with adjustments starting from the specified date and without initial consideration of changes in the Consumer Price Index (CPI), which will commence on 1 July 2013. The Act itself does not outline specific conditions for exercising the regulatory power but is implemented through subordinate legislation, which in this case is the Corporations (Fees) Amendment Regulation 2012 (No. 1).

Key Provisions

The Corporations (Fees) Amendment Regulation 2012 (No. 1) (the Regulation) amends the Corporations (Fees) Regulations 2001 (the Principal Regulations) to update the fees associated with applying for and maintaining an Australian Financial Services Licence (AFSL). The Regulation, which comes into effect on 1 August 2012, introduces significant changes to the application and annual lodgement fees for AFSLs, as outlined in section 5 of the Corporations (Fees) Act 2001 (the Act). This legislative instrument allows the Governor-General to make regulations prescribing fees for chargeable matters, and it provides the specific details for the increased fees. Under the Regulation, the application fee for an AFSL by a body corporate, partnership, or non-corporate trustee rises from $287 or $575 to $1485, depending on the form of application. For individuals, the fee increases from $159 or $351 to $825. Additionally, the annual lodgement fee for a body corporate, partnership, or non-corporate trustee increases from $351 to $549, while for an individual, it increases from $144 to $225. These fee adjustments are designed to offset the costs associated with providing additional funding to the Australian Securities and Investments Commission (ASIC) to enhance its regulation of the financial services sector. The Act imposes specific obligations on parties and entities it governs, particularly in relation to the payment of fees for chargeable matters. Entities applying for an AFSL must adhere to the updated fee schedule, ensuring they pay the correct fee as specified in the Regulation. Furthermore, AFSL holders must comply with the new annual lodgement fees, which are due annually. Failure to comply with these fee requirements can lead to consequences as outlined in the relevant sections of the Act and Regulations. The Act and the Regulation do not explicitly state specific offences or penalties for non-compliance with the fee provisions. However, general provisions within the Corporations Act 2001 may apply, including penalties for non-compliance with regulatory requirements. Penalties for breaches of the Corporations Act can include substantial fines, both for individuals and for corporate entities, and in severe cases, imprisonment. Additionally, non-compliance may result in the suspension or cancellation of an AFSL, which can have significant repercussions for the entity's operations in the financial services sector.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.