Corporations (Fees) Regulations (Amendment) 1992 No. 236
EXPLANATORY STATEMENT
Statutory Rules 1992 No. 236
Issued by the Authority of the Attorney-General
Corporations Act 1989
Corporations (Fees) Regulations (Amendment)
Section 22 of the Corporations Act 1989 (the Act) empowers the Governor-General to make regulations not inconsistent with the Act or the Corporations Law (the Law) prescribing all matters required or permitted by the Law to be prescribed by the regulations or necessary or convenient to be prescribed by regulations for carrying out or giving effect to the Law.
2. Section 25 of the Act provides that the regulations may prescribe fees (including fees that are taxes) for chargeable matters. Chargeable matters are defined in section 9 of the Law as:
(a) the lodgment, registration or submission (for examination) of documents;
(b) the inspection or search of registers kept by, or documents in the custody of, the Australian Securities Commission (the Commission), the production of such registers or document pursuant to a subpoena, and the issuing of documents or copies of documents; and
(c) the making of inquiries or applications (of or to the Minister or the Commission) and the granting of licences, consents or approvals (by the Minister or the Commission).
3. Subsection 26(2) of the Act provides that where a fee is prescribed as a stated amount that amount is not to exceed $5,000 while subsection 26(3) of the Act provides that two or more fees may be prescribed for the same chargeable matter.
4. Subsection 1352(1) of the Law adds the further provision that the upper limit on the aggregate amount of fees payable for a chargeable matter is $25,000.
5. The purpose of the Regulations is to amend the Corporations (Fees) Regulations by substituting a new Schedule of fees for the Schedule that came into operation on 1 January 1991. The fees in the new Schedule have, in general, been increased in line with the movement in the Consumer Price Index between the December quarter of 1990 and the March quarter of 1992 (i.e. 1.5 per cent).
6. Details of the accompanying Regulations are as follows.
Regulation 1 : Commencement
7. This regulation sets 1 August 1992 as the commencement date for these amending Regulations.
Regulation 2: Amendment
8. This regulation provides that the Regulations amend the Corporations (Fees) Regulations.
Regulation 3 : Schedule (Prescribed fees)
9. This regulation amends the Corporations (Fees) Regulations by inserting a new Schedule of fees that are payable for the purposes of the Act.
10. The new Schedule, in general, provides for the following levels of fees:
Existing
Fee ($) | Proposed
Fee ($) | Existing
Fee ($) | Proposed
Fee ($) |
1,200
1,000
890
600
540
450
380
370
300
210
185
40
30
25
22
20
16 | 1,220
1,015
905
610
550
455
385
375
305
215
188
41
30
25
22
20
16 | 150
145
120
100
90
85
80
65
60
50
45
12
11
10
9
6
2 | 152
142
122
102
91
86
81
66
61
51
46
12
11
10
9
6
2 |
11. These fees were obtained by increasing existing fees by 1.5 per cent (being the increase in the Consumer Price Index between the December quarter of 1990 and the March quarter of 1992) and, in the case of fees of more than $200, rounding to the nearest $5.
12. Fees for the matters listed below were not dealt with in accordance with the above formula.
(a) Fees will not be payable for the lodgment of a supplementary prospectus or for searching indexes of registers maintained by the ASC where the search is made using a computer terminal located in an ASC office. In addition, the existing supplementary fee that applies where information is requested other than in person has been omitted.
(b) Fees for applications in respect of using restricted words in company names, certain fundraising and takeover matters and for lodgment of takeover documents, trust deeds and occupational licensing applications and documents have been increased by more than 1.5 per cent to reduce the gap between the existing fees and the cost of processing such applications and documents.
Overview
The Corporations (Fees) Regulations (Amendment) 1992 No. 236 was enacted to address the need for updated fee structures in line with economic changes, particularly inflation, as measured by the Consumer Price Index. This amending regulation was issued under the authority of the Attorney-General in accordance with the Corporations Act 1989, aiming to ensure that fees prescribed for various chargeable matters remain reflective of current economic conditions. The primary policy objective behind these amendments was to maintain fairness and efficiency in the regulatory fee structure by updating fees to account for inflation while also adjusting specific fees to better align with the actual costs of processing certain applications and documents. The new fee schedule generally increased fees by 1.5 per cent, except for specific cases where fees were increased beyond this rate to better match processing costs.
Scope and Application
The Corporations (Fees) Regulations (Amendment) 1992 No. 236 pertains to the amendment of fees prescribed under the Corporations Act 1989. The Act applies to various entities and persons who engage in transactions and conduct subject to fees under the Act, including the lodgment, registration, or submission of documents, inspections, searches, and the granting of licenses and approvals by the Australian Securities Commission. The fees are applicable on a national scale, as the regulations are made under the authority of the Commonwealth of Australia. The amendment extends to increasing fees by 1.5 per cent in line with the Consumer Price Index, but certain fees such as those for supplementary prospectuses and certain searches are exempt from this increase. Additionally, specific fees for applications in respect of restricted words in company names and other matters have been increased beyond the general percentage to account for the cost of processing. The new fees come into effect on 1 August 1992, as specified in the commencement regulation.
Key Provisions
The Corporations (Fees) Regulations (Amendment) 1992 No. 236, under Section 22 of the Corporations Act 1989, updates the fees prescribed for various chargeable matters, such as the lodgment, registration, or submission of documents, the inspection or search of registers, and the granting of licenses and approvals. This amendment is necessary to reflect the movement in the Consumer Price Index over a specified period, thus ensuring the fees remain fair and relevant. The new fees are set out in a new Schedule that replaces the previous one effective from 1 January 1991.
These Regulations impose specific obligations on parties and entities governed by the Corporations Act 1989. They must now adhere to the new fee structure, which generally involves an increase of 1.5 per cent in line with the Consumer Price Index. This change affects the fees for lodgment, registration, searches, and applications, among others. Additionally, certain services, such as the lodgment of a supplementary prospectus and specific searches, now have reduced or no fees associated with them, while others, like restricted word applications and takeover documents, have been adjusted to better reflect processing costs.
Breaching the provisions of these Regulations can lead to various civil and criminal consequences. Although the specific penalties are not detailed within the explanatory statement, the Act and the associated Law provide for penalties that can include fines and, in some cases, imprisonment for non-compliance. The exact penalties would be determined based on the nature and severity of the breach, but they are generally meant to ensure adherence to the prescribed fees and obligations.
The Regulations also specify that the fees prescribed cannot exceed certain limits. Under subsection 26(2) of the Act, individual fees must not exceed $5,000, while subsection 26(3) allows for multiple fees for the same chargeable matter, though the aggregate amount cannot exceed $25,000 as per subsection 1352(1) of the Law. These limits help maintain a balance between the costs borne by entities and the services provided by the Australian Securities Commission.
The commencement date for these amending Regulations is set for 1 August 1992, as stipulated in Regulation 1. This date signifies when the new fee structure becomes effective, and all parties must adjust to the updated fees accordingly. Regulation 2 outlines that the Regulations amend the existing Corporations (Fees) Regulations, while Regulation 3 specifically inserts a new Schedule of fees that supersedes the previous one. This systematic approach ensures a smooth transition to the new fee structure, providing clarity and consistency for all stakeholders involved.