Corporations (Review Fees) Amendment Act 2018
No. 72, 2018
An Act to amend the law relating to taxation, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedules
Schedule 1—Review fees
Corporations (Review Fees) Act 2003
Corporations (Review Fees) Amendment Act 2018
No. 72, 2018
An Act to amend the law relating to taxation, and for related purposes
[Assented to 29 June 2018]
The Parliament of Australia enacts:
1 Short title
This Act is the Corporations (Review Fees) Amendment Act 2018.
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 |
Provisions | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 29 June 2018 |
2. Schedule 1 | The later of: (a) the start of the day after this Act receives the Royal Assent; and (b) the time Schedule 2A to the Corporations Amendment (Asia Region Funds Passport) Act 2018 commences. However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 18 September 2018 (paragraph (b) applies) |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Review fees
Corporations (Review Fees) Act 2003
1 Section 4(1) (paragraphs (a) and (b) of the definition of review date)
Omit “company or a registered scheme”, substitute “company, registered scheme or notified foreign passport fund”.
2 Section 5
Repeal the section, substitute:
5 Imposition of review fees
(1) Subject to section 6, the regulations may prescribe fees in relation to the review dates of the following:
(a) companies;
(b) registered schemes;
(ba) notified foreign passport funds;
(c) registered Australian bodies;
(d) natural persons registered as auditors under Part 9.2 of the Corporations Act 2001;
(f) persons holding an Australian financial services licence under Part 7.6 of the Corporations Act 2001.
Note: The regulations may prescribe a fee to be paid in one year in relation to the review date of a later year (see paragraph 1351(4)(b) of the Corporations Act 2001).
(2) The fees prescribed by the regulations are imposed, and are so imposed as taxes.
3 Subsection 7(1) (after table item 2)
Insert:
2A | a notified foreign passport fund | the operator of the fund |
4 Saving of regulations
Regulations made under subsection 5(1) of the Corporations (Review Fees) Act 2003 that were in force immediately before the commencement of this Schedule continue in force (and may be dealt with) on and after that commencement as if they had been made under subsection 5(1) of that Act as amended by this Schedule.
[Minister’s second reading speech made in—
House of Representatives on 24 May 2018
Senate on 25 June 2018]
Overview
The Corporations (Review Fees) Amendment Act 2018 was enacted by the Parliament of Australia to amend the law relating to taxation, specifically targeting the review fees imposed under the Corporations (Review Fees) Act 2003. This legislation was introduced to address gaps in the scope of entities subjected to review fees, thereby ensuring a comprehensive coverage of all entities involved in corporate activities. The policy objective is to allow the regulations to prescribe fees in relation to review dates of companies, registered schemes, notified foreign passport funds, registered Australian bodies, natural persons registered as auditors, and persons holding an Australian financial services licence. By imposing these fees as taxes, the Act aims to streamline the taxation process and ensure equitable contributions from all relevant entities. The Act commenced on 29 June 2018, with specific provisions under Schedule 1 taking effect from 18 September 2018.
Scope and Application
The Corporations (Review Fees) Amendment Act 2018 is an Act of the Parliament of Australia that amends the Corporations (Review Fees) Act 2003, specifically altering the scope of entities subject to review fees and clarifying the imposition of these fees. The Act applies to companies, registered schemes, notified foreign passport funds, registered Australian bodies, natural persons registered as auditors under the Corporations Act 2001, and persons holding an Australian financial services licence. These entities and persons are now subject to the imposition of review fees as outlined in the amended Act, with the fees being imposed as taxes. The changes introduced by the Act commenced on 18 September 2018, contingent upon the commencement of related provisions under the Corporations Amendment (Asia Region Funds Passport) Act 2018. The Act extends its application through the use of subordinate instruments, specifically regulations that may be made under the Corporations (Review Fees) Act 2003. These regulations, which were in force before the commencement of the Schedule, continue to be effective as if amended by the Act.
Key Provisions
The Corporations (Review Fees) Amendment Act 2018 introduces significant changes to the Corporations (Review Fees) Act 2003. Firstly, it modifies the definition of 'review date' to include 'notified foreign passport funds' (Section 4(1), Schedule 1). Secondly, it replaces the previous section 5 of the Corporations (Review Fees) Act 2003 with a new section that allows regulations to prescribe fees for various entities including companies, registered schemes, notified foreign passport funds, registered Australian bodies, and natural persons registered as auditors or persons holding an Australian financial services licence (Section 5, Schedule 1). These fees are imposed as taxes. Additionally, it includes a new item in the table of Section 7(1) to specify that the operator of a notified foreign passport fund is responsible for the fee (Subsection 7(1), Schedule 1). Existing regulations made under the repealed section 5 continue to be in force as if made under the amended section (Saving of regulations, Schedule 1).
The Act imposes obligations on several entities. Companies, registered schemes, notified foreign passport funds, registered Australian bodies, natural persons registered as auditors, and persons holding an Australian financial services licence are all subject to the fees prescribed by regulations under Section 5 (Schedule 1). The operators of notified foreign passport funds have a specific obligation to pay the fees on behalf of the funds (Subsection 7(1), Schedule 1). These entities must comply with the fees as imposed by the relevant regulations.
The Act does not explicitly state offences or penalties for non-compliance with the fees. However, since the fees are imposed as taxes, non-compliance could potentially lead to civil or criminal penalties under the broader tax laws of Australia. These penalties can include fines and, in severe cases, imprisonment, depending on the nature and extent of the non-compliance. The specific penalties would be determined in accordance with the general tax legislation in place at the time of any alleged breach.