Commonwealth Numbered Regulations - Explanatory Statements

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CORPORATIONS (FEES) REGULATIONS (AMENDMENT) 1995 NO. 346

STATUTORY RULES 1995 No. 346

Issued by the Authority of the Attorney-General

Corporations Act 1989

Corporations (Fees) Regulations (Amendment)

Section 22 of the Corporations Act 1989 (the Act) empowers the Governor-General to make regulations not inconsistent with the Act or the Corporations Law (the Law), prescribing matters which are required or permitted by the Law to be prescribed by regulations, or are necessary or convenient to be prescribed by regulation for carrying out or giving effect to the Law.

Section 25 of the Act provides that the regulations may prescribe fees (including fees that are taxes) for chargeable matters. Under section 9 of the Law, chargeable matters include the lodgment, registration or submission for examination of documents under the Law.

The purpose of the amendments to the Corporations (Fees) Regulations is to facilitate the operation of the provisions of the First Corporate Law Simplification Act 1995. This Act is the first in a proposed series of Acts which will simplify the Corporations Law and make it capable of being understood so that users can act on their rights and carry out their responsibilities under the Law. The objective is to streamline the Law, remove unnecessary complexities, maintain effective protection for investors and bring cost benefits to business.

Details of Corporations (Fees) Regulations Amendments

Regulation 1

Subregulation 1.1 provides that the amendments to the Corporations (Fees) Regulations commence on 9 December 1995.

Regulation 2

Subregulation 2.1 provides that the Corporations (Fees) Regulations are amended as set out in the amending Regulations.

Regulation 3

Subregulations 3.1 and 3.2 omit references in the Corporations (Fees) Regulations to exempt proprietary companies. This is necessary because the First Corporate Law Simplification Act 1995 omits from the Corporations Law references to this category of company.

Subregulation 3.3 exempts certain companies from an obligation to pay a fee, on lodging an annual return currently imposed by item 7 of Part 2 of the Schedule to the Corporations (Fees) Regulations. The companies are those referred to in items 7A and 7B, inserted by subregulation 3.4.

Subregulation 3.4 inserts items 7A and 7B into Part 2 of the Schedule to the Corporations (Fees) Regulations.

Item 7A provides that no fee is payable on lodging the annual return of a proprietary company that was registered during the period commencing on 1 July and ending at the end of 31 December in a year, if the annual return is for the calendar year in which the company was registered. The First Corporate Law Simplification Act 1995 will require a company to lodge its first annual return on the first 31 January occurring after its registration. Item 7A ensures that a proprietary company is not required to pay a fee on lodging its first annual return within 7 months of its registration.

Item 7B provides that no fee is payable on lodging the annual return of a proprietary company registered during the period commencing on 1 January 1995 and ending at the end of 30 June 1995 if the first financial year of the company ends after 30 June 1995 and the annual return is for the calendar year in which the company was registered. Companies registered during 1 January 1995 - 30 June 1995 which have extended their first financial year beyond 30 June 1995 would not now be required to lodge an annual return on 31 January 1996, nor pay the associated lodgment fee. However, the First Corporate Law Simplification Act 1995 requires these companies to lodge an annual return on 31 January 1996. Item 7A therefore provides that no fee is payable by these companies on lodging their 31 January 1996 annual return.

Subregulation 3.5 omits a reference to the office of principal executive officer in item 33 of Part 2 of the Corporations (Fees) Regulations. This is because the First Corporate Law Simplification Act 1995 omits from the Corporations Law references to the office of principal executive officer.

The Regulations in support of the First Corporate Law Simplification Act 1995 commence on Saturday 9 December 1995.