Corporations (National Guarantee Fund Levies) Amendment Act 2007
No. 148, 2007
An Act to amend the Corporations (National Guarantee Fund Levies) Act 2001, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendment
Corporations (National Guarantee Fund Levies) Act 2001
Corporations (National Guarantee Fund Levies) Amendment Act 2007
No. 148, 2007
An Act to amend the Corporations (National Guarantee Fund Levies) Act 2001, and for related purposes
[Assented to 24 September 2007]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Corporations (National Guarantee Fund Levies) Amendment Act 2007.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day on which this Act receives the Royal Assent. | 24 September 2007 |
2. Schedule 1 | The 28th day after the day on which this Act receives the Royal Assent. | 22 October 2007 |
Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendment
Corporations (National Guarantee Fund Levies) Act 2001
1 At the end of section 5
Add:
(4) A determination referred to in subsection 889J(1) of the Corporations Act 2001 must not specify an amount of levy, or a method for determining the amount of levy, that results in the total amount in levies that becomes payable to the SEGC in a financial year exceeding 150% of the minimum amount in relation to the NGF on 1 July in the financial year.
[Minister’s second reading speech made in—
House of Representatives on 21 June 2007
Senate on 13 September 2007]
Overview
The Corporations (National Guarantee Fund Levies) Amendment Act 2007, enacted by the Parliament of Australia, was introduced to address the issue of ensuring that the total amount of levies payable to the Small Enterprise Guarantee Corporation (SEGC) does not exceed 150% of the minimum amount in relation to the National Guarantee Fund (NGF) on 1 July in any financial year. This amendment act seeks to amend the Corporations (National Guarantee Fund Levies) Act 2001 by adding a provision that prohibits a determination from specifying an amount of levy or a method for determining the amount of levy that would result in the aforementioned excess. The objective is to maintain fiscal responsibility and stability within the SEGC's financial operations by setting a cap on the total levies payable.
The Corporations (National Guarantee Fund Levies) Amendment Act 2007 received Royal Assent on 24 September 2007, with the amendments and changes specified in Schedule 1 coming into effect on 22 October 2007. This legislative change underscores the Parliament's commitment to overseeing and regulating the financial mechanisms that support small enterprises, ensuring that the guarantees provided do not lead to unsustainable financial burdens.
Scope and Application
The Corporations (National Guarantee Fund Levies) Amendment Act 2007 amends the Corporations (National Guarantee Fund Levies) Act 2001, impacting the determination of levies payable to the Small Enterprise Guarantee Corporation (SEGC) under the National Guarantee Fund (NGF). This Act applies to any corporation, entity or person required to make a payment to the SEGC in accordance with the Corporations Act 2001, and specifically affects the determination of the amount of levy to be paid. The legislative changes introduced by this Act impose a cap on the total amount of levies payable to the SEGC in any financial year, restricting it to 150% of the minimum amount in relation to the NGF as of 1 July of that financial year. This Act operates at the Commonwealth level and its amendments to the 2001 Act are applicable nationally. The Act does not explicitly state exclusions or exemptions, but its provisions are inherently limited by the specified cap on levies. The Act's application may be further defined or expanded through subordinate legislation, although the primary text does not detail such extensions.
Key Provisions
The Corporations (National Guarantee Fund Levies) Amendment Act 2007 (C2007A00148) amends the Corporations (National Guarantee Fund Levies) Act 2001 by inserting a new subsection (4) at the end of section 5 of the principal Act. This new provision (section 5(4)) mandates that any determination regarding the amount of the levy or the method for calculating the levy must ensure that the total amount of levies payable to the Small Enterprise Guarantee Corporation (SEGC) in any financial year does not exceed 150% of the minimum amount in relation to the National Guarantee Fund (NGF) on 1 July of that financial year. This amendment aims to cap the total levy amount that can be charged to corporations within the specified fiscal constraints.
The Act imposes specific obligations on entities governed by it, primarily focusing on compliance with the levy determinations and the cap on the total amount of levies. Entities must ensure that their financial obligations under the levy do not surpass the limit set by section 5(4). This includes adherence to any new determinations made under the authority of the Corporations Act 2001, section 889J(1), ensuring that these determinations comply with the newly imposed limit of 150% of the NGF minimum amount. This requirement underscores the need for meticulous record-keeping and financial planning to avoid exceeding the legislative cap.
Breach of the provisions outlined in section 5(4) could lead to significant legal consequences. While the Act itself does not explicitly detail the penalties for non-compliance, entities found to be in breach of the Corporations Act 2001, which governs the operation of the NGF, could face severe penalties. Under the Corporations Act 2001, penalties for non-compliance can include fines and, in severe cases, imprisonment. The maximum penalty for corporate criminal offences under the Corporations Act 2001 can be up to $210,000 for a corporation and additional fines for ongoing breaches, alongside potential director disqualifications. These penalties underline the importance of strict adherence to the legislative requirements set forth by the Corporations (National Guarantee Fund Levies) Amendment Act 2007.