Treasury Laws Amendment (2017 Measures No. 3) Act 2017

Administered by Department of the Treasury

Legislation au C2017A00075 In force Act

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No. 75, 2017

An Act to amend the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Validation of agreements to employ staff or engage consultants

Australian Securities and Investments Commission Act 2001

Corporations Act 2001

Treasury Laws Amendment (2017 Measures No. 3) Act 2017

No. 75, 2017

An Act to amend the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001, and for related purposes

[Assented to 26 June 2017]

The Parliament of Australia enacts:

1 Short title

This Act is the Treasury Laws Amendment (2017 Measures No. 3) Act 2017.

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. The whole of this Act	Immediately after the commencement of the Australian Securities and Investments Commission Act 2001.	15 July 2001

Note: This table relates only to the provisions of this Act as originally enacted.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Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Validation of agreements to employ staff or engage consultants

Australian Securities and Investments Commission Act 2001

1 Subsection 5(1)

Insert:

old ASIC Act means the Australian Securities and Investments Commission Act 1989 as in force from time to time before the commencement of this Act.

2 After section 248

Insert:

249 Validation of agreements to employ staff or engage consultants

(1) The following are, for all purposes, taken to be, and always to have been, valid agreements:

(a) an agreement purportedly made, before the end of 9 March 2017, under subsection 120(3) of this Act or the old ASIC Act (whether or not the terms and conditions of employment under the agreement were validly determined under subsection 120(4) of this Act or the old ASIC Act);

(b) an agreement purportedly made, before the end of 9 March 2017, under subsection 121(1) of this Act or the old ASIC Act (whether or not the terms and conditions of engagement under the agreement were validly determined under subsection 121(2) of this Act or the old ASIC Act).

Note 1: As a result of this section (and the definition of staff member in subsection 5(1)), a person employed or engaged under the purported agreement would be a staff member of ASIC, and would therefore be able to exercise functions and powers delegated under section 102.

Note 2: Validation of an agreement under this section affects the significance, status and effect of the agreement, and matters relating to the agreement, for the purposes of section 279 of this Act and section 1403 of the Corporations Act 2001.

(2) Subsection (1) applies to such an agreement whether or not it was expressed to be made on behalf of the Commonwealth.

(3) Subsections (1) and (2) have effect in relation to:

(a) proceedings (whether original or appellate) that begin on or after the day the Treasury Laws Amendment (2017 Measures No. 3) Act 2017 receives the Royal Assent; and

(b) proceedings that began before that day, if the proceedings (including any appeals) had not been finally determined as at that day.

250 Compensation for compulsory acquisition

(1) If:

(a) the operation of a validation provision would result in the acquisition of property from a person otherwise than on just terms; and

(b) the acquisition would be invalid because of paragraph 51(xxxi) of the Constitution; and

the Commonwealth is liable to pay compensation of a reasonable amount to the person.

(2) If the Commonwealth and the person do not agree on the amount of the compensation, the person may institute proceedings in the Court for the recovery from the Commonwealth of such reasonable amount as the court determines.

(3) Any damages or compensation recovered or other remedy given in a proceeding that is commenced otherwise than under this section is to be taken into account in assessing compensation payable in a proceeding that is commenced under this section and that arises out of the same event or transaction.

(4) In this section:

acquisition of property has the same meaning as in paragraph 51(xxxi) of the Constitution.

Court has the same meaning as in section 58AA of the Corporations Act 2001.

just terms has the same meaning as in paragraph 51(xxxi) of the Constitution.

validation provision means:

(a) section 249; or

(b) paragraph 276(1)(b) or subsection 276(4) or (5); or

3 Subsection 254(1) (definition of old ASIC Act)

Repeal the definition.

4 Paragraphs 276(1)(a) and (b)

Repeal the paragraphs, substitute:

(a) was:

(i) acquired, accrued or incurred under a carried over provision of the old ASIC legislation of the Commonwealth, a State in this jurisdiction or the Northern Territory; and

(ii) in existence immediately before the commencement; or

(b) would have been:

(i) acquired, accrued or incurred under such a provision; and

(ii) in existence immediately before the commencement;

if every agreement that was valid only because of section 249 had been a valid agreement without the application of that section.

5 At the end of section 276

Add:

(4) This section does not apply to a pre‑commencement right or liability that:

(a) existed under a law of the Commonwealth or of a State or Territory; and

(b) would not have existed if any agreement that is valid only because of section 249 had been a valid agreement without the application of that section.

(5) Paragraph (1)(b) and subsection (4) have effect in relation to:

(a) proceedings (whether original or appellate) that begin on or after the day the Treasury Laws Amendment (2017 Measures No. 3) Act 2017 receives the Royal Assent; and

(b) proceedings that began before that day, if the proceedings (including any appeals) had not been finally determined as at that day.

(6) Nothing in paragraph (1)(b) or subsection (4) or (5) limits the operation of section 249.

6 Paragraphs 277(1)(a) and (b)

Repeal the paragraphs, substitute:

(a) was:

(i) acquired, accrued or incurred under a provision of the old ASIC legislation of the Commonwealth, a State in this jurisdiction or the Northern Territory that was no longer in force immediately before the commencement; and

(ii) in existence immediately before the commencement; or

(b) would have been:

(i) acquired, accrued or incurred under such a provision; and

(ii) in existence immediately before the commencement;

if every agreement that was valid only because of section 249 had been a valid agreement without the application of that section.

7 At the end of section 277

Add:

(5) This section does not apply to a pre‑commencement right or liability that:

(a) existed under a law of the Commonwealth or of a State or Territory; and

(b) would not have existed if any agreement that is valid only because of section 249 had been a valid agreement without the application of that section.

(6) Paragraph (1)(b) and subsection (5) have effect in relation to:

(a) proceedings (whether original or appellate) that begin on or after the day the Treasury Laws Amendment (2017 Measures No. 3) Act 2017 receives the Royal Assent; and

(b) proceedings that began before that day, if the proceedings (including any appeals) had not been finally determined as at that day.

(7) Nothing in paragraph (1)(b) or subsection (5) or (6) limits the operation of section 249.

Corporations Act 2001

8 Paragraphs 1400(1)(a) and (b)

Repeal the paragraphs, substitute:

(a) was:

(i) acquired, accrued or incurred under a carried over provision of the old corporations legislation of a State or Territory in this jurisdiction; and

(ii) in existence immediately before the commencement; or

(b) would have been:

(i) acquired, accrued or incurred under such a provision; and

(ii) in existence immediately before the commencement;

if every agreement that was valid only because of section 249 of the ASIC Act had been a valid agreement without the application of that section.

9 At the end of section 1400

Add:

(5) This section does not apply to a pre‑commencement right or liability that:

(a) existed under a law of the Commonwealth or of a State or Territory; and

(b) would not have existed if any agreement that is valid only because of section 249 of the ASIC Act had been a valid agreement without the application of that section.

(6) Paragraph (1)(b) and subsection (5) have effect in relation to:

(a) proceedings (whether original or appellate) that begin on or after the day the Treasury Laws Amendment (2017 Measures No. 3) Act 2017 receives the Royal Assent; and

(b) proceedings that began before that day, if the proceedings (including any appeals) had not been finally determined as at that day.

(7) Nothing in paragraph (1)(b) or subsection (5) or (6) limits the operation of section 249 of the ASIC Act.

10 Paragraphs 1401(1)(a) and (b)

Repeal the paragraphs, substitute:

(a) was:

(i) acquired, accrued or incurred under a provision of the old corporations legislation of a State or Territory in this jurisdiction that was no longer in force immediately before the commencement; and

(ii) in existence immediately before the commencement; or

(b) would have been:

(i) acquired, accrued or incurred under such a provision; and

(ii) in existence immediately before the commencement;

if every agreement that was valid only because of section 249 of the ASIC Act had been a valid agreement without the application of that section.

11 At the end of section 1401

Add:

(5) This section does not apply to a pre‑commencement right or liability that:

(a) existed under a law of the Commonwealth or of a State or Territory; and

(b) would not have existed if any agreement that is valid only because of section 249 of the ASIC Act had been a valid agreement without the application of that section.

(6) Paragraph (1)(b) and subsection (5) have effect in relation to:

(a) proceedings (whether original or appellate) that begin on or after the day the Treasury Laws Amendment (2017 Measures No. 3) Act 2017 receives the Royal Assent; and

(b) proceedings that began before that day, if the proceedings (including any appeals) had not been finally determined as at that day.

(7) Nothing in paragraph (1)(b) or subsection (5) or (6) limits the operation of section 249 of the ASIC Act.

[Minister’s second reading speech made in—

House of Representatives on 14 June 2017

Senate on 22 June 2017]

(126/17)

Overview

The Treasury Laws Amendment (2017 Measures No. 3) Act 2017, enacted by the Parliament of Australia, is designed to amend the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001. This Act aims to address potential legal uncertainties by validating agreements made to employ staff or engage consultants under certain conditions prior to 9 March 2017. The policy objective is to ensure that these agreements are considered valid for all purposes, thereby maintaining the continuity of functions and powers delegated under these Acts. The Act also provides for compensation in cases where the validation of such agreements results in the acquisition of property from a person otherwise than on just terms, as defined by the Constitution. The legislation further seeks to clarify and refine the application of certain validation provisions, ensuring they apply appropriately to both ongoing and concluded legal proceedings. By addressing these specific issues, the Act aims to provide legal certainty and stability to the affected agreements and related rights or liabilities, ensuring that the enforcement of these agreements remains consistent and effective within the legislative framework.

Scope and Application

The Treasury Laws Amendment (2017 Measures No. 3) Act 2017 is an Act of the Australian Parliament that amends the Australian Securities and Investments Commission Act 2001 (ASIC Act) and the Corporations Act 2001 (Corporations Act), with the aim of validating certain agreements made by the Australian Securities and Investments Commission (ASIC) before 9 March 2017. The Act applies to any purported agreements made by ASIC for the employment of staff or engagement of consultants prior to the specified date, regardless of whether the terms and conditions of employment or engagement were validly determined. The Act's application is not restricted by whether the agreement was expressed to be made on behalf of the Commonwealth. The Act's provisions apply to proceedings that commence on or after the Act receives Royal Assent, as well as to proceedings that had not been finally determined prior to the Act's receipt of Royal Assent. The Act also addresses compensation for compulsory acquisition in certain circumstances. While the Act itself specifies the scope and application of the amendments, further details and specific interpretations may be provided through subordinate instruments or regulations.

Key Provisions

The Treasury Laws Amendment (2017 Measures No. 3) Act 2017 amends the Australian Securities and Investments Commission Act 2001 (ASIC Act) and the Corporations Act 2001 (Corporations Act), and for related purposes. The Act validates certain agreements to employ staff or engage consultants made by ASIC before 9 March 2017 under the ASIC Act or the Australian Securities and Investments Commission Act 1989 (old ASIC Act). These agreements are deemed to have always been valid for all purposes (section 249). This validation applies to agreements made on behalf of the Commonwealth and affects the significance, status, and effect of the agreements and related matters (section 249(2)). The validation applies to proceedings that begin on or after the Act receives Royal Assent, and to proceedings that began before that day if not finally determined as at that day (section 249(3)). Additionally, the Act addresses compensation for compulsory acquisitions resulting from the validation provisions, ensuring that compensation is paid if the acquisition of property would otherwise be invalid (section 250). The Act imposes obligations on parties and entities by validating certain agreements and ensuring that they are treated as always valid. For entities like ASIC, this means that employment or consultant agreements made before 9 March 2017 are now considered valid, thereby allowing the individuals involved to exercise functions and powers delegated to them. Furthermore, the Act mandates that if the validation results in the acquisition of property from a person other than on just terms, the Commonwealth must compensate the person for the acquisition (section 250). This compensation must be reasonable and can be determined by the court if the Commonwealth and the person cannot agree on the amount (section 250(2)). Breach of the provisions within the Act can lead to civil consequences, particularly if the validation of agreements inadvertently results in the acquisition of property from a person other than on just terms. In such cases, the Commonwealth is obligated to pay compensation, which can be pursued through legal proceedings if an agreement is reached on the amount (section 250(2)). The Act also ensures that any damages or compensation recovered in other proceedings related to the same event or transaction are taken into account when assessing compensation payable under section 250 (section 250(3)). There are no explicit criminal penalties mentioned in the Act, but failure to comply with the compensation provisions could lead to legal action for the recovery of reasonable compensation.

Area of Law: Corporate Law & Governance
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Validation of agreements; Compensation for compulsory acquisition

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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