Corporations (Review Fees) Amendment Regulations 2004 (No. 1)

Overview

The Corporations (Review Fees) Amendment Regulations 2004 (No. 1) were enacted to address the need for updated review fees in the context of changes to annual return requirements under the Corporations Act 2001 and the Corporations (Fees) Act 2001. These changes replaced annual returns with a new information lodgement requirement to assist the Australian Securities and Investments Commission (ASIC) in maintaining an accurate database of regulated entities. The 2004-05 budget announced an increase in the annual review fee for proprietary companies from $200 to $212 per year, intended to partially offset new funding of $60.1 million over four years for ASIC. The Regulations were authorised by Section 8 of the Corporations (Review Fees) Act 2003 and were issued under the authority of the Parliamentary Secretary to the Treasurer. The policy objective of the Regulations is to adjust fees to reflect the updated funding requirements of ASIC while ensuring that review fees are not necessarily tied to the cost of providing services.

Scope and Application

The Corporations (Review Fees) Amendment Regulations 2004 (No. 1) amend the Corporations (Review Fees) Regulations 2003 to increase the annual review fee for proprietary companies from $200 to $212 per year. These regulations apply to proprietary companies, registered schemes, and certain natural persons and entities that are subject to review fees under the Corporations (Review Fees) Act 2003. The Act provides for a review fee in place of annual return fees for companies and registered managed investment schemes, aiming to assist the Australian Securities and Investments Commission (ASIC) in maintaining an accurate database of regulated entities. The amendment to the review fee is intended to partially offset new funding of $60.1 million over four years allocated to ASIC. The regulations extend nationally, aligning with the scope of the Corporations Act 2001 and the Corporations (Fees) Act 2001, and do not require Ministerial Council approval for fee-related amendments. The Regulations commence on 1 July 2004, and the fee increase is effective from this date.

Key Provisions

The main operative sections of the Corporations (Review Fees) Amendment Regulations 2004 (No. 1) focus on the amendment of the annual review fee for proprietary companies from $200 to $212 per year. This amendment is detailed in Regulation 3, which specifically alters the amount specified in Column 3 of Item 102 in Part 1 of Schedule 1 to the Corporations (Review Fees) Regulations 2003 (paragraphs (1)(a), (1)(b)). The Regulations, which commence on 1 July 2004, aim to implement the fee increase announced in the 2004-05 budget to partially offset new funding for the Australian Securities and Investments Commission (ASIC). The Act imposes several obligations and requirements on parties and entities it governs. Primarily, it mandates that the review fees prescribed under the Act must be paid annually by the entities subject to ASIC's regulation. These entities include companies, registered managed investment schemes, and certain natural persons and entities. The fees are imposed as taxes and need not bear any relation to the cost of providing any service, as stipulated in Section 6 of the Corporations (Review Fees) Act 2003 (paragraph (2)(a)). The fees are to be lodged with ASIC to maintain an accurate database regarding the entities it regulates. Additionally, the Governor-General is empowered under Section 8 of the Act to make regulations for the purposes of the Act, and these Regulations must be in line with the requirements and objectives outlined in the Act. The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches within the Corporations (Review Fees) Amendment Regulations 2004 (No. 1). However, given that the fees are imposed as taxes, non-compliance or failure to pay the prescribed review fees could result in financial penalties or legal actions under the broader framework of tax laws and ASIC regulations. The penalties for such breaches would typically be determined by the applicable tax and administrative laws rather than the specific provisions of these Regulations. The intent behind the fee increase is to ensure sufficient funding for ASIC, and any failure to comply with the payment requirements could lead to enforcement actions by ASIC or other relevant authorities.