EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 57
Issued by the authority of the Minister for Financial Services, Superannuation and Corporate Law
Subject - Corporations (Fees) Act 2001
Corporations (Fees) Amendment Regulations 2010 (No. 2)
The Corporations (Fees) Regulations 2001 (the Principal Regulations) prescribe the fee to be payable in respect of things done under the Corporations Act 2001. This includes, but is not limited to, the lodgement or registration of documents, the inspection of registers, the issuing of a document or granting of a licence by the Australian Securities and Investments Commission (ASIC) or the Minister, the making of an application to the Takeovers Panel, or the performance of market-related functions by ASIC.
The Regulations amend the Principal Regulations to maintain the current rate of all fees and charges under the Principal Act at the 2009 level in real terms from 1 July 2010.
The Regulations address the diminishing effect that inflation has in real terms on the value of fees and charges imposed under the Act.
The Regulations:
• index fees and charges under the Act through specifying that in each new financial year, the amount of a fee set out in the Principal Regulations will be determined using a formula that will index the fee amount in line with the annual increase in the consumer price index; and
• ensure that the amount of the fee or charge remains constant where there is an annual decrease in the consumer price index.
Details of the Regulations are set out in the Attachment.
Under the Corporations Agreement 2002 (the Agreement), the state and territory Governments referred their constitutional powers with respect to corporations regulation to the Commonwealth. The Agreement requires the Commonwealth to consult with the Ministerial Council for Corporations before making amendments to certain provisions of the Principal Regulations. The responsible Ministers of the states and the territories have been consulted about the Regulations.
As the amendments to the Principal Regulations maintain the current level of fees imposed on individuals and corporations under the Principal Act, the amendments are considered to be machinery in nature and therefore no consultation on the amendments was undertaken. Furthermore, as the amendments would give effect to a decision to adjust a tax, fee or charge that was announced in the 2009-10 Budget, consultation is considered unnecessary. Finally, under subclause 511(3) of the Agreement, the Commonwealth was not required to consult the Ministerial Council of Corporations as to whether a regulation should be exposed for public comment where the regulation relates exclusively to the alteration of fees or taxes.
The Regulations is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.
ATTACHMENT
Details of the Corporations (Fees) Amendment Regulations 2010 (No. 2)
Regulation 1 – Name of Regulations
This regulation provides that the title of the Regulations would be the Corporations (Fees) Amendment Regulations 2010 (No. 2).
Regulation 2 – Commencement
This regulation provides for the Regulations to commence the day after they are registered on the Federal Register of Legislative Instruments.
Regulation 3 – Amendment of Corporations (Fees) Regulations 2001
This regulation provides that the Corporations (Fees) Regulations 2001 (the Principal Regulations) are amended as set out in the Schedule.
Schedule 1 – Amendments
Item [1] – Regulation 3
This item substitutes the current regulation 3 with a new provision which provides for the indexation of a chargeable matter prescribed under the Principal Regulations.
This item continues to prescribe a fee under sections 5 and 6 of the Corporations (Fees) Act 2001 for a chargeable matter set out in Schedule 1 to the Principal Regulations.
The amount of a fee for a chargeable matter is the amount specified under the new provision.
In the financial year starting on 1 July 2009, the amount of the fee for a chargeable matter is the exact amount mentioned under Schedule 1 to the Principal Regulations.
From the financial year starting on 1 July 2010 onwards, the amount of a fee for a chargeable matter is determined by the formula provided under the new provision. The formula is the amount of the fee for the chargeable matter applicable immediately before 1 July of the relevant year, multiplied by the latest All Groups Consumer Price Index number (CPI number) published by the Australian Statistician, divided by the CPI number for the March quarter immediately preceding the latest CPI number.
Where the CPI number is less than the preceding CPI number, the amount of a fee for a chargeable matter remain unchanged.
The fee amount determined using the formula is rounded up or down to the nearest whole dollar.
Where the Australian Statistician publishes a CPI number in substitution of a CPI number previously published, the publication of the later CPI number is disregarded for the purposes of the determination of a fee amount under the new provision.
Where the Australian Statistician amends the reference base for the determination of the CPI number, the CPI numbers determined using the new reference base is used in the determination of a fee amount under the new provision.