Corporations (Fees) Regulations (Amendment) 1996 No. 251
EXPLANATORY STATEMENT
Statutory Rules 1996 No. 251
Issued by the Authority of the Treasurer
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 of the Capital Territory (the Law) prescribing matters required or permitted by the Law to be prescribed by regulations or necessary or convenient to be prescribed by such regulations for carrying out or giving effect to the Law.
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 under the Law;
(b) the inspection or search of registers kept by, or documents in the custody of, the Australian Securities Commission (the Commission), the production by the Commission under a subpoena of such registers or documents, and the issuing of documents or copies of documents by the Commission; and
(c) the making of inquiries of, or applications to, the Minister or the Commission in relation to a matter arising under the Law and the granting of licences, consents or approvals, or the doing of any other act under the Law, by the Minister or the Commission.
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.
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.
The principal purpose of the Regulations is to amend the Corporations (Fees) Regulations (the Fees Regulations) by increasing fees in line with movements in the Consumer Price Index over the last two years and to make a supplementary increase in fees. This is a continuation of the policy instituted by the previous Government that the difference between the cost of the national corporations scheme, including compensation payments to the States, and the revenue recouped, should be reduced over time.
Details of the accompanying Regulations are as follows:
Regulation 1: Commencement
This regulation provides that the Regulations commence on 1 December 1996.
Regulation 2: Amendment
This regulation provides that the regulations amend the Corporations (Fees) Regulations.
Regulation 3: Schedule (Fees)
Subregulation 3.1 has the effect of increasing the fees in the Schedule by 12.86 percent on the basis of a 7.7 percent increase in line with the movement in the Consumer Price Index between the December quarters of 1993 and 1995, and a further 5.16 percent increase to recoup the costs of administering the national corporate regulation scheme.
The 12.86 percent increase was applied to the 1994 fees figures and rounded as follows:
* amounts below $50 were rounded to the nearest dollar;
* amounts from $50 to $200 were rounded to the nearest $5; and
* amounts above $200 were rounded to the nearest $10.
The changes in quantum of fees are set out in the following table:
Current Fee | Proposed Fee |
2 | 2 |
7 | 8 |
14 | 15 |
27 | 28 |
32 | 34 |
50 | 55 |
105 | 115 |
185 | 195 |
210 | 230 |
270 | 280 |
430 | 450 |
530 | 560 |
640 | 680 |
800 | 840 |
1070 | 1130 |
1600 | 1690 |
Overview
The Corporations (Fees) Regulations (Amendment) 1996 No. 251 was introduced to address the need for updating the fees structure in alignment with the economic changes and administrative costs associated with the national corporations scheme. This amendment was enacted under the authority of the Treasurer, pursuant to the Corporations Act 1989. The principal objective of the amendment is to adjust the fees for various corporate activities to reflect the Consumer Price Index movements over the last two years and to implement a supplementary increase to cover the administrative costs of the scheme. This policy aligns with the broader aim of reducing the gap between the cost of the national corporations scheme and the revenue generated, a strategy initiated by the previous government. The regulation specifies a 12.86% fee increase, comprising a 7.7% adjustment based on the Consumer Price Index and an additional 5.16% to offset the administrative expenses. The new fees, effective from 1 December 1996, were calculated by applying this percentage increase to the 1994 fee figures, with specific rounding rules applied to different fee brackets.
Scope and Application
The Corporations (Fees) Regulations (Amendment) 1996 No. 251 applies to all entities and individuals subject to the Corporations Act 1989, particularly focusing on the fees prescribed under the Act for various chargeable matters. These matters include the lodgment, registration, or submission of documents under the Act, inspections, searches, and production of documents by the Australian Securities Commission, and applications for licences, consents, or approvals by the Minister or the Commission. The regulations aim to ensure that fees are aligned with the Consumer Price Index and to reduce the financial burden of the national corporations scheme by incrementally increasing fees in line with inflationary adjustments and administrative costs. The amendments, which commenced on 1 December 1996, specifically increase the fees by 12.86 percent, reflecting a 7.7 percent increase due to CPI movements and an additional 5.16 percent to cover administrative costs. The fees are rounded to the nearest dollar for amounts below $50, to the nearest $5 for amounts between $50 and $200, and to the nearest $10 for amounts above $200, ensuring precise application of the fee structure.
Key Provisions
The Corporations (Fees) Regulations (Amendment) 1996 No. 251 primarily serve to revise the fees associated with various services provided under the Corporations Act 1989. The amendments, as outlined in Regulation 3, increase the fees by 12.86 percent, reflecting both an adjustment based on the Consumer Price Index (CPI) and a supplementary increase to cover administrative costs. This adjustment was necessitated by the need to align fees with inflation and to mitigate the financial shortfall within the national corporations scheme (section 22). The fees for various services, such as the lodgment and registration of documents, inspection of registers, and the issuance of documents, are detailed in the amended Schedule (subregulation 3.1). The fees have been adjusted to the nearest dollar for amounts below $50, to the nearest $5 for amounts between $50 and $200, and to the nearest $10 for amounts above $200.
The Act imposes specific obligations on the entities governed by it, particularly in relation to the payment of fees. Companies, as well as individuals and other entities that interact with the Australian Securities Commission (ASC), must adhere to the prescribed fee structures as outlined in the amended Schedule (section 25). These fees are applicable for various activities such as the lodgment of documents, the inspection of registers, and the application for approvals or licences under the Act (section 9). It is imperative that these entities ensure timely and accurate payment of the fees to avoid any disruptions in their compliance activities.
Breaches of the provisions contained in the Corporations Act 1989 and the accompanying Regulations can lead to both civil and criminal consequences. While the explanatory statement does not explicitly detail the penalties for non-payment of fees, it is reasonable to infer that failure to comply with the fee requirements could result in enforcement actions by the ASC or the Australian Securities and Investments Commission (ASIC). Such actions could include fines or other penalties as prescribed under the relevant sections of the Act or other applicable legislation. The specific penalties would depend on the nature and severity of the breach but could potentially include substantial fines and, in severe cases, criminal charges for non-compliance. The maximum penalties for offences under the Corporations Act can be severe, reflecting the importance of compliance with corporate regulations.