Corporations (Fees) Regulations (Amendment)

Overview

The Corporations (Fees) Regulations (Amendment) 1997 No. 130, issued under the authority of the Treasurer, were enacted to address the need for fee adjustments in line with inflation and to continue the policy of reducing the gap between the cost of the national corporate regulation scheme and the revenue recouped. The amendments were made to the Corporations (Fees) Regulations to increase fees in accordance with the movement in the Consumer Price Index over the past year, and to provide a supplementary increase to further reduce the deficit between costs and revenue. The fees were set out in the Schedule of the Regulations, which increased all fees by 15.48 percent, comprising a 9.36 percent increase due to the Consumer Price Index movement and a 6.12 percent supplementary increase. The total fees for any chargeable matter did not exceed the statutory limits of $5,000 for a single fee or $25,000 for multiple fees.

Scope and Application

The Corporations (Fees) Regulations (Amendment) 1997 No. 130, issued under the authority of the Treasurer, modifies the Corporations (Fees) Regulations to align with the Corporations Act 1989 and the Corporations Law of the Capital Territory. The Act empowers the Governor-General to establish regulations that detail the fees for various chargeable matters, which include the lodgment, registration, or submission for examination of documents, inspections or searches of registers and documents, and the issuance of documents by the Australian Securities Commission. These fees are capped at a maximum of $5,000 per chargeable matter, with an overall limit of $25,000 when multiple fees apply to the same matter. The amendments made by these Regulations are effective from 1 August 1997 and are intended to adjust fees to reflect the Consumer Price Index over the last year, as well as to further reduce the gap between the costs of the national corporate regulation scheme and the revenue collected. The specific fee adjustments were calculated based on the 1994 fees figures and rounded appropriately according to the prescribed method.

Key Provisions

The Corporations (Fees) Regulations (Amendment) 1997 No. 130 (the Regulations) amend the existing Corporations (Fees) Regulations to increase the fees for certain services provided by the Australian Securities Commission and the Minister. Section 22 of the Corporations Act 1989 (the Act) empowers the Governor-General to make regulations that prescribe fees for chargeable matters as defined in the Act and the Corporations Law of the Capital Territory (the Law). The Regulations are intended to align fees with inflation and to contribute to reducing the shortfall between the costs of administering the national corporate regulation scheme and the revenue recouped from fees. Regulation 3.1 of the Regulations increases the fees set out in Part 2 of the Schedule by 15.48 percent, which comprises a 9.36 percent increase in line with the Consumer Price Index and a 6.12 percent supplementary increase to offset the costs of administering the scheme. The Regulations impose obligations on entities that are subject to the Act, including companies, directors, and other persons who are required to lodge, register, or submit documents under the Law. They are also applicable to entities seeking inspections, searches, or copies of documents held by the Australian Securities Commission, or those applying for licenses, consents, or approvals. Furthermore, entities that make inquiries or applications to the Minister or the Commission in relation to matters arising under the Law are subject to the fees prescribed by the Regulations. These obligations necessitate compliance with the updated fee structures for the services provided by the Australian Securities Commission and the Minister. Breaching the fee provisions set out in the Regulations may have legal consequences. While the explanatory statement does not explicitly mention specific offences or penalties for non-payment of fees, it is reasonable to infer that failure to comply with the fee requirements could lead to legal action being taken against the defaulting party. The maximum penalty for contravening the Act or the Law is generally a fine of up to 500 penalty units ($100,000) for individuals and 5,000 penalty units ($1,000,000) for bodies corporate, as outlined in section 1317E of the Corporations Act. Additionally, courts may also order the payment of compensation or the recovery of costs associated with the proceedings.