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Legislation and proposed legislation - April 2017
Welcome to the latest update from Gilbert + Tobin's Corporate Advisory team. The update provides a summary of key recent legal developments, particularly relevant to in-house counsel.
In this issue, you will find:
- Treasury consults on calculation of levies for proposed ASIC industry funding model
- Treasury consults on the breach reporting regime for Australian financial services licensees and Australian credit licensees
- Reforms to broaden NSW landholder duty and general anti-avoidance provisions now in force
- Competition and Consumer Act Amendment Bills introduced into Parliament but with further changes
- Safe Harbour and Ipso Facto insolvency law reforms – what you need to know
Further to our report in the March 2017 Corporate Advisory Update on the proposed ASIC industry funding model, the Exposure Draft ASIC Supervisory Cost Recovery Levy Regulations 2017 (which were released on 4 May 2017) set out the proposed mechanisms to calculate the levies payable by each class of regulated entity for a financial year.
The Exposure Draft Regulations apply either a flat or graduated levy to entities in each industry subsector regulated by ASIC. The type of levy, and the formula for calculating the amount of levy payable, is different for each industry subsector, to reflect variations in ASIC’s regulatory costs for each industry subsector and the differences in size and levels of activity undertaken by each entity in each industry subsector. Flat levies are prescribed for subsectors where ASIC’s regulatory costs are approximately the same for each entity and graduated levies are prescribed where ASIC’s regulatory costs vary significantly across the subsector.
Under the proposals, listed public companies will pay a levy of $4,000 if they have a market capitalisation under $5 million and a levy of $664,000 if they have a market capitalisation above $20 billion (and companies with a market capitalisation between these 2 thresholds will pay the $4,000 minimum levy plus a variable component depending on the company’s share of the total market capitalisation of listed companies between the 2 thresholds).
Submissions on the Exposure Draft Regulations are due by Friday 26 May 2017.
Treasury consults on the breach reporting regime for Australian financial services licensees and Australian credit licensees
The Commonwealth Treasury’s consultation on the current self-reporting regime for breaches of Australian financial services licences and proposed introduction of a self-reporting regime for breaches of Australian credit licences is due to conclude on 12 May 2017. Licensees are reminded of the short window in which submissions can be made on this important consultation.
A recent G+T Insight discusses the positions for breach self-reporting proposed in the consultation.
The State Revenue Legislation Amendment Act 2017 received Assent on 11 April 2017, and the reforms commenced from that date.
For further details on the reforms, see G+T Alert dated 3 April 2017.
Further to our report in the March 2017 Corporate Advisory Update, G+T’s Competition and Regulation team considers the draft legislation implementing some, but not all, of the Harper Review recommendations in more detail.
See G+T Insight dated 12 April 2017 by Elizabeth Avery, Matt Rubinstein, Tom Abraham and Ivy Nguyen.
Further to our report in the March 2017 Corporate Advisory Update, G+T’s Restructuring and Insolvency team dissect what the proposed insolvency reforms mean for Australian business.
See G+T Insight dated 13 April 2017 by Dominic Emmett, Jessica Arscott and Anna Ryan.