Corporations (Review Fees) Amendment Regulations 2011 (No. 1)

Overview

The Corporations (Review Fees) Amendment Regulations 2011 (No. 1) were introduced to update and increase the annual review fees paid by companies to the Australian Securities and Investments Commission (ASIC) in accordance with the Corporations (Review Fees) Act 2003. Enacted by the authority of the Parliamentary Secretary to the Treasurer, these Regulations aim to align the fees with increased appropriations to the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB) as outlined in the Commonwealth Budget 2011-12. The Regulations, which commenced on 1 July 2011, adjust the fees for proprietary companies, small transferring institutions, registered schemes, and public companies, and implement a fee indexation system to maintain the integrity of fee increases in line with the Consumer Price Index. The changes were made under the authority provided by Section 8 of the Corporations (Review Fees) Act 2003, which allows for the regulation of matters necessary for the Act’s implementation, and do not require the approval of the Ministerial Council for Corporations, as they pertain to fee setting under the national law.

Scope and Application

The Corporations (Review Fees) Amendment Regulations 2011 (No. 1) apply to proprietary companies, small transferring institutions, registered schemes, and public companies. These entities are subject to the annual review fees prescribed by the Australian Securities and Investments Commission (ASIC) under the Corporations (Review Fees) Act 2003. The Regulations amend the Corporations (Review Fees) Regulations 2003 to increase these fees in response to the funding requirements of the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB) as set out in the Commonwealth Budget 2011-12. The jurisdictional reach of these Regulations is federal, applying throughout the Commonwealth of Australia, and they do not require approval from the Ministerial Council for Corporations as they pertain to the setting of fees under national law. The Regulations specify new fee levels for the various entities mentioned and adjust the date of the fee indexation provision to ensure alignment with the Consumer Price Index. The amendments came into effect on 1 July 2011, and the Regulations themselves are legislative instruments under the Legislative Instruments Act 2003.

Key Provisions

The Corporations (Review Fees) Amendment Regulations 2011 (No. 1) primarily amend the Corporations (Review Fees) Regulations 2003 by updating the annual review fees payable by companies to the Australian Securities and Investments Commission (ASIC). Section 8 of the Corporations (Review Fees) Act 2003 allows the Governor-General to make regulations that are required or permitted by the Act. These Regulations aim to increase the annual review fees for various types of companies to align with increased appropriations in the Commonwealth Budget 2011-12 for the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB). Specifically, Regulation 3 amends the Principal Regulations by updating the date of the fee indexation provision to ensure it operates correctly with the fee increase (Item 1). Additionally, the fee indexation dates are updated (Items 2 and 3), and new fee levels are specified for public companies (Item 4), proprietary companies (Item 5), registered schemes (Item 7), and small transferring financial institutions (Item 8). The Corporations (Review Fees) Amendment Regulations 2011 (No. 1) impose specific obligations on companies, including proprietary companies, small transferring institutions, registered schemes, and public companies, to pay updated annual review fees to ASIC. The Regulations require companies to adjust their payment schedules to reflect the new fees, which are calculated to offset the increased appropriations for the AASB and AUASB. Moreover, the Regulations mandate that the fees are to be indexed to the Consumer Price Index, ensuring that the increases are aligned with inflation. The precise fee levels are detailed in Schedule 1, and companies must ensure their payments comply with these updated figures. The Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance with the Corporations (Review Fees) Amendment Regulations 2011 (No. 1). However, failure to comply with the payment obligations may lead to enforcement actions by ASIC, which could include fines or other administrative penalties. Companies must ensure they adhere to the updated fee schedules and indexation requirements to avoid potential repercussions from non-compliance.