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2022-2023
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
TREASURY LAWS AMENDMENT (2023 LAW IMPROVEMENT PACKAGE
NO. 1) BILL 2023
EXPLANATORY MEMORANDUM
(Circulated by authority of the Assistant Treasurer and Minister for Financial Services,
the Hon Stephen Jones MP)
Table of Contents
Glossary................................................................................................. iii
General outline and financial impact ...................................................... 7
Australian Law Reform Commission recommendations
................................................................................... 11
Insurance ................................................................... 43
Rationalisation of ending ASIC instruments ............... 77
Minor and technical amendments .............................. 93
Statement of Compatibility with Human Rights ........ 101
Attachment 1: References in Part 1 of Schedule 2 to the Bill ......... 109
Attachment 2: References in Part 3 of Schedule 2 to the Bill ......... 179
Glossary
This Explanatory Memorandum uses the following abbreviations and acronyms.
Abbreviation Definition
1995 Regulations Life Insurance Regulations 1995
2002 Regulations Insurance Regulations 2002
AIA Acts Interpretation Act 1901
ALRC Australian Law Reform Commission
ALRC Review Review of the Legislative Framework for
Corporations and Financial Services
Regulation
APRA Australian Prudential Regulation
Authority
APRA Act Australian Prudential Regulation
Authority Act 1998
ASIC Australian Securities and Investments
Commission
ASIC Act Australian Securities and Investments
Commission Act 2001
Bill Treasury Laws Amendment (2023 Law
Improvement Package No. 1) Bill 2023
CADB Companies Auditors Disciplinary Board
CCIV Corporate Collective Investment Vehicle
Compensation Scheme of Last Resort Treasury Laws Amendment (Financial
Bills Services Compensation Scheme of Last
Resort) Bill 2023, Financial Services
Compensation Scheme of Last Resort
Levy Bill 2023 and Financial Services
Compensation Scheme of Last Resort
Levy (Collection) Bill 2023
Glossary
Abbreviation Definition
Competition and Consumer Act Competition and Consumer Act 2010
Corporations Act Corporations Act 2001
Decision-Making Principles Insurance Acquisitions and Takeovers
Act 1991 - Decision-Making Principles
IDM 1/1992
GST Act A New Tax System (Goods and Services
Tax) Act 1999
IAT Act Insurance Acquisitions and Takeovers
Act 1991
ICCPR International Covenant on Civil and
Political Rights
Insurance Act Insurance Act 1973
Insurance Instruments Insurance Acquisitions and Takeovers
(Notices) Regulations 1992, Insurance
Acquisitions and Takeovers Act 1991 -
Decision-Making Principles IDM
1/1992, Insurance Regulations 2002 and
Life Insurance Regulations 1995
Interim Report A Interim Report A of the ALRC Review
(ALRC Report 137)
Interim Report B Interim Report B of the ALRC Review
(ALRC Report 139)
IPO Initial public offer
ITAA 1936 Income Tax Assessment Act 1936
ITAA 1997 Income Tax Assessment Act 1997
Life Insurance Act Life Insurance Act 1995
MBC Bill Treasury Laws Amendment
(Modernising Business Communications
and Other Measures) Bill 2022
National Credit Code Schedule 1 to the National Consumer
Credit Protection Act 2009
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Abbreviation Definition
NOHCs Non-operating holding companies
SIS Act Superannuation Industry (Supervision)
Act 1993
TAA Taxation Administration Act 1953
TLAA No. 5 2021 Treasury Laws Amendment (2021
Measures No. 5) Act 2021
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
General outline and financial impact
Schedules 1 to 3 - Australian Law Reform
Commission recommendations
Outline
Schedules 1 to 3 to the Bill implement recommendations identified by the ALRC in
Interim Reports A and B from the ALRC Review to simplify and improve the
navigability of the law. This includes 'unfreezing' the application of the AIA to the
Corporations Act and ASIC Act, creating a single glossary for all defined terms in the
Corporations Act, repealing redundant definitions, addressing unclear or incorrect
provisions and simplifying unnecessarily complex provisions in the law.
• These changes facilitate a more adaptive, efficient, and navigable
legislative framework which ensures that the legislative intent is met.
• The amendments in these Schedules are minor and technical in nature,
and do not engage policy considerations.
Date of effect
Schedules 1 to 3 to the Bill commence on the later of the start of the 30th day after the
Act receives Royal Assent and immediately after the commencement of Schedule 2 to
the Treasury Laws Amendment (Modernising Business Communications and Other
Measures) Act 2023. This ensures the Treasury Laws Amendment (Modernising
Business Communications and Other Measures) Act 2023 commences first and then
this Bill, and the accompanying Regulations, commence at the same time.
Financial impact
Nil.
Human rights implications
Schedules 1 to 3 to the Bill do not raise any human rights issues. See Statement of
Compatibility with Human Rights -- Chapter 5.
Compliance cost impact
Schedules 1 to 3 to the Bill do not impose any ongoing additional regulatory burden.
The simplifications to the law have a small but unquantifiable cost saving for those that
frequently refer to the law.
7
General outline and financial impact
Schedule 4 - Insurance
Outline
Schedule 4 to the Bill primarily amends the IAT Act, Life Insurance Act and Insurance
Act to implement relevant findings of the thematic review of Insurance Instruments
that are due to sunset on 1 October 2023.
Date of effect
Items 1 to 121 and 123 to 136 of Schedule 4 to the Bill commence on a day fixed by
proclamation. However, if any of the provisions do not commence within the period of
6 months beginning on the day of Royal Assent, they commence on the day after the
end of that period.
Item 122 of Schedule 4 to the Bill commences on the later of the commencement of
items 1 to 121 of Schedule 4 to the Bill, and immediately after the commencement of
item 114 of Schedule 1 to the Treasury Laws Amendment (Modernising Business
Communications and Other Measures) Act 2023.
Part 7 of Schedule 4 to the Bill commences on the later of the commencement of
Schedules 1 and 2 to the Bill and immediately after the commencement of items 123 to
136 of Schedule 4 to the Bill.
Financial impact
Nil.
Human rights implications
Schedule 4 to the Bill raises human rights issues. See Statement of Compatibility with
Human Rights -- Chapter 5.
Compliance cost impact
Schedule 4 to the Bill is unlikely to have a more than a minor impact on compliance
costs.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Schedule 5 - Rationalisation of ending ASIC
instruments
Outline
Schedule 5 to the Bill amends the Corporations Act and the National Consumer Credit
Protection Act 2009 to transfer longstanding and accepted matters currently contained
in ASIC legislative instruments into the primary law. The amendments will improve
navigability of the law and provide industry and consumers with greater certainty and
clarity when interacting with Treasury laws.
Date of effect
Schedule 5 to the Bill commences on the day after Royal Assent.
Financial impact
Nil.
Human rights implications
Schedule 5 to the Bill does not raise any human rights issues. See Statement of
Compatibility with Human Rights -- Chapter 5.
Compliance cost impact
Schedule 5 to the Bill is unlikely to have more than a minor impact on compliance
costs.
Schedule 6 - Minor and Technical Amendments
Outline
Schedule 6 to the Bill makes a number of minor and technical amendments to Treasury
portfolio legislation. The amendments demonstrate the Government's ongoing
commitment to the care and maintenance of Treasury portfolio legislation.
The amendments correct drafting errors, repeal inoperative provisions, address
unintended outcomes, and make other technical changes.
9
General outline and financial impact
Date of effect
Divisions 1 and 2 in Part 1 of Schedule 6 to the Bill commence on the day after the Bill
receives Royal Assent.
Division 3 in Part 1 of Schedule 6 to the Bill commences immediately after the
commencement of the provisions in Divisions 1 and 2 in Part 1.
Part 2 of Schedule 6 to the Bill commences on the first 1 January, 1 April, 1 July or
1 October to occur after the day the Bill receives Royal Assent.
Financial Impact
The amendments in Schedule 6 to the Bill have nil or minimal financial impact.
Human rights implications
Schedule 6 to the Bill does not raise any human rights issues. See Statement of
Compatibility with Human Rights -- Chapter 5.
Compliance cost impact
Schedule 6 to the Bill is unlikely to have more than a minor impact on compliance
costs.
10
Australian Law Reform
Commission recommendations
Table of Contents:
Outline of chapter ................................................................................ 12
Context of amendments ....................................................................... 12
Comparison of key features of new law and current law ...................... 13
Detailed explanation of new law .......................................................... 14
Unfreezing the AIA ........................................................................ 14
Single Glossary ............................................................................. 19
Other amendments........................................................................ 26
Consequential amendments ................................................................ 34
Consequential amendments to other Acts and Regulations .......... 34
Commencement, application, and transitional provisions .................... 35
Contingent amendments ...................................................................... 35
Treasury Laws Amendment (More Competition, Better Prices) Act
2022 .............................................................................................. 36
Financial Accountability Regime Bill 2023 ..................................... 36
Compensation Scheme of Last Resort Bills .................................. 37
Schedule 6 to the Treasury Laws Amendment (2022 Measures No.
4) Bill ............................................................................................. 37
Schedule 1 to the Treasury Laws Amendment (Modernising
Business Communications and Other Measures) Bill 2023........... 38
Schedule 3 to the Treasury Laws Amendment (Modernising
Business Communications and Other Measures) Bill 2023 ........... 39
Part 1 of Schedule 4 to the Treasury Laws Amendment
(Modernising Business Communications and Other Measures) Bill
2023 .............................................................................................. 40
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Australian Law Reform Commission recommendations
Outline of chapter
1.1 This chapter outlines how Schedules 1 to 3 to the Bill simplify and improve the
navigability of Australia's corporations and financial services laws.
Context of amendments
1.2 In September 2020, the then Attorney-General asked the ALRC to inquire into
the potential simplification of laws regulating Australian corporations and
financial services as part of the Government's response to the 2019 Royal
Commission into Misconduct in the Banking, Superannuation and Financial
Services Industry.
1.3 The ALRC found that the law is challenging to navigate and complex for
individuals and businesses and that it needs to be simplified to ensure its intent
is met.
1.4 The ALRC's Interim Report A focused on the use of definitions. It found that
complexity could be reduced by only using defined terms where this reduces
repetition and enhances readability, improving the design of definitions and
using defined terms consistently throughout the corporations law. The ALRC
made 13 recommendations, along with 24 proposals and questions for further
consideration.
1.5 In Interim Report B, the ALRC focussed on design choices relevant to
determining where material is located in the legislative hierarchy. It found that
the particular design choices made in relation to the Corporations Act are a
significant source of complexity. The ALRC made a further six
recommendations, largely centred around opportunities for technical
simplification, and raised 18 proposals for further consideration.
1.6 In November 2022, the Government introduced the MBC Bill, which contained
a first tranche of amendments to implement recommendations from Interim
Report A and other easily implementable opportunities to improve the law.
1.7 This Bill implements a further two recommendations from Interim Report A
and partially implements three recommendations from Interim Report B.
1.8 The Interim Reports' recommendations, as opposed to their proposals and
questions, were designed for immediate implementation. They address
technical aspects of the legislation, do not raise significant policy issues and
have broad support from stakeholders.
1.9 In particular, this Bill only implements those elements from the three Interim
Report B recommendations that can be implemented without any substantial
policy changes.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
1.10 The recommendations primarily address unnecessary complexity in the
corporations and financial services law. They unfreeze the AIA, create a single
glossary of terms, remove redundant definitions and make other simplifications
to improve the navigability and clarity of the law.
1.11 The Government is progressing these amendments as part of its ongoing
commitment to practical and effective stewardship of Treasury laws to ensure
they remain current and fit-for-purpose. Other recommendations made by the
ALRC will be considered in the future as part of this ongoing program of
work.
Comparison of key features of new law and
current law
Comparison of new law and current law
New law Current law
The AIA, as in force at the relevant point in The AIA, as in force on 1 January 2005,
time, applies to the ASIC Act, Corporations applies to the ASIC Act, Corporations Act
Act and all instruments made under those and certain legislative instruments made
Acts. under those Acts.
The Corporations Act contains all rules The corporations law applies bespoke rules
relevant to the calculation of time. for reckoning time which apply in addition
These rules state that the first day is to the rules in the frozen AIA.
counted when calculating the number of These rules state that the first day is counted
days before or after another day, but when calculating the number of days before
periods of time otherwise exclude the first or after another day, but periods of time
day of the period. otherwise exclude the first day of the period.
Section 9 of the Corporations Act contains There is no single location for all defined
a single glossary for all defined terms used terms in the Corporations Act. Definitions
in the Corporations Act (apart from the are scattered throughout the Corporations
Schedules to the Act, the transitional Act and there are multiple dictionary
provisions and just-in-time definitions). sections.
The glossary either contains the definition
of the term, or if the definition is long and
complex, signposts to the relevant section
that contains the definition.
Terms are only defined in the Corporations Some terms are defined in the Corporations
Act if they are subsequently used Act, but are not subsequently used in the Act
throughout the Act and defining the term or only used on one occasion.
reduces repetition.
Terms that carry their ordinary meanings The Corporations Act contains definitions
are not defined in the Corporations Act. for terms that carry their ordinary meaning.
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Australian Law Reform Commission recommendations
New law Current law
Headings for definition provisions are Definition provisions do not have clear or
consistent and draw attention to the use of consistent headings.
defined terms.
Detailed explanation of new law
1.12 Schedules 1 to 3 to the Bill improve the navigability and readability of the
corporations and financial services law by:
• implementing two further recommendations from the ALRC's Interim
Report A to:
- unfreeze the AIA so that the current version of the AIA applies
to the Corporations Act and ASIC Act (recommendation 5);
and
- create a single glossary of defined terms in section 9 of the
Corporations Act (recommendation 7).
• partially implementing three recommendations from the ALRC's
Interim Report B to:
- repeal definitions that are no longer used, cross-references to
repealed provisions and other redundant provisions
(recommendation 14);
- amend the law to address unclear or incorrect provisions
(recommendation 16); and
- simplify unnecessarily complex provisions in the law, with a
particular focus on terms defined as having more than one
meaning, definitions containing substantive obligations and
definitions that contain the phrase 'in relation to'
(recommendation 17).
Unfreezing the AIA
1.13 Section 5A of the ASIC Act and section 5C of the Corporations Act apply the
version of the AIA in force on 1 January 2005 to those Acts, that is, they freeze
the AIA. This means that amendments to the AIA made after 1 January 2005
date do not apply.
1.14 Freezing the AIA has created practical complications for Corporations Act and
ASIC Act readers, who must locate the historic version of the AIA.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
1.15 Additionally, whenever the AIA is amended, those amendments must be
replicated in the Corporations Act and ASIC Act if the amendments are
intended to apply to those Acts. For example, the Corporations Act now
includes a definition of 'document' to replicate the technology neutral
definition inserted into the AIA after 2005.
1.16 Freezing the AIA has also created uncertainty about which version of the AIA
applies to delegated legislation made under the Corporations Act. This is
because the AIA is frozen only for the purposes of 'this Act' and the definition
of 'this Act' does not include ASIC instruments. However, the definition
applies subject to any contrary intention. 'This Act' is frequently used in a
manner that differs to the definition, making it unclear whether there is a
contrary intention.
1.17 Schedule 1 to the Bill implements the ALRC's recommendation 5 to unfreeze
the AIA so that the version of the AIA that is in force at the relevant point in
time applies to both Acts. This:
• restores the original intent of the AIA as an Act of general application
across all Commonwealth laws;
• reduces complexity and improves navigability of the corporations and
financial services law; and
• removes the duplication of provisions across the Commonwealth
statute book.
[Schedule 1, item 1, section 5A of the ASIC Act; item 13, section 5C
of the Corporations Act]
1.18 Unfreezing the AIA does not change existing policy settings.
1.19 The most significant change to the AIA since 1 January 2005 relates to the
calculation of time.
• The frozen AIA calculates a period of time exclusive of the first day of
that period whereas the unfrozen version includes the first day.
• Further, the frozen AIA states that if the last day for doing a thing falls
on a Saturday, Sunday, 'public holiday or bank holiday', it may be
done on the next day. The unfrozen AIA refers generally to 'holidays'
which includes a day on which the place where the thing is to be done
is closed.
1.20 The corporations law also contains bespoke rules for calculating time. When
calculating how many days a particular day is before or after another day, the
first day is to be counted but not the other day. Further, the definition of
'business day' includes 'bank holidays'. These bespoke rules are in the
Corporations Act but they also apply to the ASIC Act due to section 5 of the
ASIC Act.
1.21 The Bill amends the bespoke rules for calculating time in the Corporations Act
to ensure that the rules in the frozen AIA (as modified by the Corporations
15
Australian Law Reform Commission recommendations
Act) continue to apply. The Bill also clarifies that this approach applies to
instruments made under the Corporations Act.
[Schedule 1, item 15, section 105 of the Corporations Act]
1.22 The bespoke rules in the Corporations Act relating to calculating time also
apply to the ASIC Act due to subsection 5(3) of the ASIC Act.
1.23 Other differences between the frozen and unfrozen AIA are minor and
technical. These are outlined in Table 1.2.
Comparison of frozen and unfrozen AIA
Issue Frozen AIA Unfrozen AIA
Effect of delegations Delegations are only valid in A delegation is taken to
relation to functions and include additional functions,
powers existing at the time duties or powers which are
of delegation. Delegations provided following an
do not extend to powers that amendment to the Act under
come into effect after the which the delegation has
delegation is made. been made.
Commencement Acts and instruments come Acts come into operation at
into operation immediately the start of that day.
on the previous day's
expiration.
Amended or re-enacted laws Where an Act refers to Where an Act refers to
another Act's short title as another Act's short title as
originally enacted, it is originally enacted, it is also
taken to refer to the second taken to refer to any
Act as enacted and amended provisions in the second
from time to time. Act that have been
repealed and re-enacted.
Headings and examples Headings are not part of the Headings are part of the
Act. A provision prevails Act. Examples may extend
over an example in the event a provision's operation.
of any inconsistency.
Alphabetical insertion Definitions are inserted in New items inserted into
appropriate alphabetical existing lists or tables are
position. inserted in the appropriate
alphabetical position.
Purposive construction Prefer a construction that Prefer a construction that
promotes the Act's purpose. 'best achieves' the Act's
purpose.
References to Minister N/A. Allows for retrospective
orders substituting a
reference to a Minister with
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Issue Frozen AIA Unfrozen AIA
a reference to a different
Minister.
Calendar month 'Month' means the period 'Calendar month' means
between the day of one one of the 12 months of the
month and the year. 'Month' means the
corresponding date of the period between the day of
next month. one month and the
corresponding date of the
next month.
Meaning of document N/A. The definition of
'document' explicitly
includes a map, plan,
drawing or photograph.
Other definitions Court of summary Court of summary
jurisdiction includes a jurisdiction means any
reference to Commonwealth justice of the peace, or
magistrates. magistrate of a State or
Gazette includes a reference Territory.
to a previous name of the Gazette means the
Gazette. Commonwealth of Australia
Minister or Minister of Gazette.
State means one of the Minister or Minister of
King's Ministers of State for State means one of the
the Commonwealth. Ministers of State for the
Territory, Territory of the Commonwealth.
Commonwealth, Territory Territory, Territory of the
under the authority of the Commonwealth, Territory
Commonwealth or under the authority of the
Territory of Australia Commonwealth or
includes 'a Territory Territory of Australia
administered by the means a territory referred to
Commonwealth under a in the Constitution.
Trusteeship Agreement'
New definitions N/A. Administrative
Arrangements Order,
Australian citizen,
contiguous zone,
continental shelf, exclusive
economic zone, legislative
instrument, notifiable
instrument, penalty unit,
Standards Australia,
territorial sea.
Powers and functions Part 7 refers to powers and Part 7 refers to powers,
functions. functions and duties.
17
Australian Law Reform Commission recommendations
Issue Frozen AIA Unfrozen AIA
Power to make Power to make includes Also allows for repeal when
repealing in a like manner ongoing conditions ceases to
and subject to like be satisfied.
conditions.
Acts done by persons acting N/A. Acts done by a person
under appointment purporting to act under an
appointment are not invalid
merely because the person
was not properly appointed.
Acting in offices or Where an Act confers a Where an Act provides for a
positions power to appoint a person to person to act in an office,
act in a particular office, this the Act or any other Act
includes the power to applies in relation to the
appoint a person to act in person as if the person were
that position. the holder of the office.
Meetings Members may participate in In meetings, members
meetings by telephone or participating by phone or
any other means of other means of
communication. communication will form
part of any quorum.
References to and citation of Details how to refer to an Details how to refer to an
Acts Act of the Commonwealth, Act of the Commonwealth,
United Kingdom or a State. United Kingdom, or a State
or Territory.
Construction of instruments Expressions in non- Expression in instruments
legislative instruments have that are non-legislative, and
the same meaning as the not notifiable instruments,
enabling legislation. have the same meaning as in
Non-legislative instruments the enabling legislation as in
can be disallowable, if force from time to time.
provided for in the enabling
provision.
Oaths Various persons may Various persons may
administer an oath. administer an oath or
affirmation.
1.24 The amendments also repeal the definition of 'modifications' in the
Corporations Act and ASIC Act and the definitions of 'affidavit', 'document'
and 'territorial sea' in the Corporations Act. As the AIA already contains these
definitions, their inclusion in the Corporations Act and the ASIC Act is
unnecessary. The amendments also substitute the terms 'Judge' and 'Judges' in
the Corporations Act with 'judge' and 'judges' so the AIA definitions apply to
the terms.
[Schedule 1, item 2, subsection 12GNA(4) (definition of 'modifications') of
18
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
the ASIC Act; items 14, 16, 17, 20 and 21, section 9 (definitions of 'affidavit',
'document', 'Judge' and 'territorial sea') and subsections 110(1) (note 1),
581(1), 1044B(4) (definition of 'modifications'), 1057A(2) and (3) of the
Corporations Act]
1.25 Similarly, the Bill repeals sections in the Corporations Act and ASIC Act that
relate to acting positions. These sections replicate the content in the unfrozen
AIA. The Bill inserts a note directing readers to the relevant provision in the
AIA.
[Schedule 1, items 5, 6, 7, 8, 10 and 11, sections 116, 117, 118, 182 and 245,
subsections 208(4), 208A(1), 208A(2), 236D(4) and 236H(4) of the ASIC Act]
1.26 The Corporations Act and ASIC Act are internally inconsistent in their
treatment of oaths and affirmations. Newer provisions refer to both 'oaths and
affirmations' whereas older provisions do not. This reflects a change in
drafting conventions, rather than a deliberate policy distinction. To bring
relevant provisions of the Corporations Act and ASIC Act in line with modern
drafting practices and ensure consistency with the unfrozen AIA, the Bill
inserts references to 'affirmation' into relevant provisions.
[Schedule 1, items 3, 4, and 9, subsections 58(5) and 218(5), paragraph
19(2)(b) of the ASIC Act; item 18, paragraph 596D(1)(b) of the Corporations
Act]
1.27 The amendments update outdated references to the AIA in the Corporations
Act.
[Schedule 1, items 12 and 19, section 1020AE (note 2) and subsection 3(2) of
the Corporations Act]
Single Glossary
1.28 The Bill implements recommendation 7 from the ALRC's Interim Report A to
create a single glossary of defined terms in the Corporations Act.
1.29 The Corporations Act does not have a single comprehensive dictionary and the
main dictionary in section 9 includes some, but not all, defined terms. Other
dictionaries are scattered throughout the different Chapters, Parts, Divisions
and Subdivisions. Further, section 9 sometimes refers readers to a Chapter or
Part where a substantial definition is located, but not the specific provision.
This makes it harder for readers to find the meaning of defined terms.
1.30 Implementing the ALRC's recommendation to create a single glossary
improves the Corporations Act's navigability by listing all defined terms in
section 9, either in the form of a real definition or as a 'signpost' (i.e. a cross-
reference) to the precise provision that contains the real definition.
1.31 Schedule 2 to the Bill, which contains the amendments to create the single
glossary, is divided into 14 separate Divisions organised thematically by
subject matter. For example, Division 5 deals with definitions related to
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Australian Law Reform Commission recommendations
managed investment schemes and Division 7 deals with definitions related to
takeovers and acquisitions.
1.32 This is intended to make the Bill more accessible for readers who only deal
with one subject area under the Corporations Act. It removes the need for
readers to search through one omnibus Division and identify for themselves
which definitions are relevant to them.
1.33 The primary effect of each of the separate Divisions is to relocate definitions
within the Act rather than make any substantive policy change.
1.34 The Bill applies six key principles to ensure a consistent approach to
implementing the recommendation to create a single glossary.
1.35 A discussion of the key principles is below. Attachment 1 lists the principles
that apply to each defined term and the provisions affected, along with the
corresponding references in the Bill.
Principle 1 - Terms that can be understood according to their
ordinary meaning should not be defined
1.36 The Bill deletes definitions that replicate the ordinary meaning of the defined
term. There is a common law rule of interpretation that terms that are not
defined carry their ordinary meaning. Therefore, definitions that replicate the
ordinary meaning are redundant and unnecessarily add to the length and
complexity of the law.
1.37 Deleting redundant definitions also improves navigability as it removes the
need for readers to regularly refer back to the single glossary in section 9 to
determine the meaning of a term.
1.38 This principle also partially implements the ALRC's recommendation 14 in
Interim Report B to repeal redundant provisions.
Principle 2 - Terms used infrequently should not be defined
1.39 The Bill deletes definitions for terms that are only used once or a small number
of times throughout the Corporations Act and incorporates the substance of the
definition into the relevant section(s). This is consistent with the ALRC's
Interim Report A finding that terms should only be defined if it enhances
readability or significantly reduces the need to repeat text.
1.40 However, the Bill does not delete the definitions for a small number of
infrequently used terms where the definition is particularly long and complex.
This is because incorporating long and complex definitions into the only
provisions in which they are used would significantly add to the length and
complexity of the law.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Principle 3 - Defined terms should be listed in section 9
1.41 The Bill creates a single glossary in section 9 that contains a complete list of
all defined terms used in the main body of the Corporations Act.
1.42 Consistent with the ALRC's recommendation, terms only used in transitional
provisions (i.e. Chapter 10) are not included in section 9. Transitional
provisions only apply to a small part of the regulated community for a
restricted period of time. Including terms used in the transitional provisions in
section 9 would increase the length of section 9 and detract from its utility for
other users of the law. It would also necessitate further amendments to
section 9 when the transitional provisions become redundant and are repealed.
1.43 Similarly, terms used only in a Schedule to the Corporations Act are not
included in section 9. The ALRC found that including these terms in section 9
would have negligible benefit in terms of enhancing navigability and it would
be a significant undertaking.
1.44 Terms defined for the purposes of a single section in the Corporations Act (just
in-time definitions) are also excluded from section 9. It is more reader-friendly
for these definitions to be located in or near the section that uses the term. This
eliminates the need for the reader to refer back to section 9, improving
navigability.
Full definition versus sign-posting
1.45 Defined terms are listed in section 9 either in full or as a cross-reference (a
'sign-post') to the provisions where the full definition can be found.
1.46 A defined term is signposted in section 9 with a cross-reference to the relevant
section containing the definition (rather than listed, along with its actual
definition in section 9) if:
• the definition is particularly long or elaborate in its structure, as
including these in section 9 would increase the length and complexity
of the single glossary;
• defining the word in another part of the Act better supports the
narrative flow and makes it easier to understand the operative
provisions; or
• the definition is only used for the purposes of a particular chapter, part,
division or subdivision, as it is more reader-friendly to locate the
definition close to the use of the term.
1.47 Where a signpost is included in section 9, the signpost refers to the precise
provision that contains the defined term (rather than cross-referencing an entire
Chapter or a provision which itself contains another cross-reference). This
enhances navigability by allowing the reader to quickly locate the definition.
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Australian Law Reform Commission recommendations
Defined terms listed in dictionaries other than section 9
1.48 The Corporations Act currently includes dictionaries scattered throughout
different Chapters, Parts, Divisions and Sub-divisions. For simplicity, these
other dictionaries are referred to as Chapter-specific dictionaries in this
explanatory memorandum.
1.49 Chapter-specific dictionaries hinder navigability as it is not intuitive which
dictionary contains each definition and readers may need to refer to multiple
dictionaries to find the definition. Chapter-specific dictionaries also increase
the risk of one word carrying multiple definitions in different parts of the Act.
1.50 Where possible within existing policy settings, the Bill gives terms in
Chapter-specific dictionaries Act-wide application and lists them in section 9.
This has been done where the term:
• is used outside the Chapter with the same meaning as in the Chapter;
or
• is not currently used outside the Chapter.
1.51 Clarifying the scope of such defined terms to make clear they apply for the
purposes of the whole Act reduces the risk that in the future the defined term
may take on different meanings. This future-proofs the Corporations Act and
eliminates a potential future source of complexity.
1.52 If a term is used outside the Chapter with a different meaning, the term is listed
in section 9, but section 9 makes it clear that the definition only applies for the
purposes of a particular Chapter. This ensures that readers can quickly locate
the definition by referring to the single glossary, while also preserving the
existing policy settings.
1.53 Terms are listed in full in section 9 unless they are:
• used only for the purposes of a particular Chapter;
• used outside the Chapter with a different meaning; or
• the definition is particularly long or elaborate in structure (refer to the
discussion under the heading 'Full definition versus sign-posting'
above).
1.54 In the above three scenarios, section 9 includes a cross-reference to the section
that contains the definition.
1.55 The Bill also deletes any terms or signposts from the Chapter-specific
dictionary that are redundant, either because:
• the term has been moved into section 9 with its full definition; or
• the Chapter-specific dictionary only included a signpost to another
section and the signpost now appears in section 9.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
1.56 The Bill makes consequential amendments to the Corporations Act and ASIC
Act to accurately reflect the new location of relevant definitions that have been
moved to sit within the section 9 single glossary, or which have been given
Act-wide application.
1.57 Table 1.3 summarises how the principles apply to terms in Chapter-specific
dictionaries.
Table 1.1 : Approach for terms in Chapter-specific dictionaries
When sub- Does the What should be What should be
principle term apply in section 9? in the Chapter-
applies Act-wide? specific
dictionary?
3.1 Term is not used Yes Signpost to the If the dictionary
outside the section containing contains a signpost,
Chapter the definition (either delete it.
the Chapter-specific
dictionary or another If the dictionary
section). contains the full
definition, retain it.
3.2 Term is used No Signpost to the If the dictionary
outside the section containing the contains a signpost,
Chapter with a definition (either the delete it.
different meaning Chapter-specific
If the dictionary
dictionary or another
contains the full
section).
definition, retain it.
Note the term's
limited application.
3.3 Term is used Yes Include the full Delete the signpost
outside the definition in or full definition.
Chapter with the section 9 unless the
same meaning definition is long and
elaborate.
Terms remaining in Chapter-specific dictionaries
1.58 The Bill also repeals the dictionaries in section 601WAA (dictionary for
Division 1 of Part 5D.6), section 960 (dictionary for Part 7.7A), section 1011B
(dictionary for Division 2 of Part 7.9), section 1074B (dictionary for Division 4
of Part 7.11), section 1023B (dictionary for part 7.9A), section 1276
(dictionary for Division 1 of Part 9.2), subsection 1317DAA(1) (dictionary for
Part 9.4AA) and section 1363 (dictionary for Part 9.12). Only a few defined
terms remained in these dictionaries after applying the above principles. There
is little benefit retaining Chapter-specific dictionaries with only one or two
definitions as it leads to unnecessary complexity.
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Australian Law Reform Commission recommendations
[Schedule 2, items 153, 475, 503, 534, 541, 601, 607, 612, Division 1 of Part
9.2, sections 601WAA, 960, 1011B, 1020AA, 1023B, 1074B and 1363 and
subsection 1317DAA(1) of the Corporations Act]
1.59 The defined terms remaining in the repealed dictionary are moved to section 9
or a stand-alone section according to the principles outlined above.
[Schedule 2, items 142, 255, 260, 503, 534, 541, 605, 606, 607, sections 9,
1011B, 1020AA, 1023B, 1276, 1317DAAA, 1317DAA (heading) and
subsection 1317DAA(1) of the Corporations Act]
Principle 4 - Headings for provisions containing defined terms
should be consistent and intuitive
1.60 The Bill implements recommendation 9 from Interim Report A to use
consistent headings for provisions containing definitions.
1.61 Provisions which contain defined terms are not signposted with clear and
consistent headings. For example, section 9 is headed 'Dictionary', sections 9A
to 9C are headed 'Meaning of [defined term]' and section 46 is headed 'What
is a [defined term]'. Some provisions with defined terms do not even have a
heading that indicates that there is a definition. This makes it difficult for
readers to easily locate defined terms. It also means digital search tools, which
can assist readers to locate definitions, are of limited use.
1.62 To assist readers to locate definitions more readily, the Bill amends relevant
headings so that they use the phrase 'Meaning of [defined term]'.
1.63 The Bill also amends headings to ensure they are intuitive. Intuitive headings
provide readers with a clearer indication of a provision's contents, improving
clarity.
Principle 5 - Labels for defined terms should be intuitive
1.64 The Bill omits references to multiple defined terms used in the Corporations
Act and ASIC Act and replaces them with more intuitive labels. It also
combines definitions for terms that are different grammatical forms of another
term. For example, the Bill repeals the definitions of 'offers' and 'offeror' and
incorporates their meanings under the existing label of 'offer'.
1.65 These definitions are unnecessary because the AIA contains rules of
interpretation which provide that a defined term has the same meaning in both
its singular or plural form and in other grammatical forms unless a contrary
intention appears. It is also counter-intuitive to define a term in different
grammatical forms where the different forms carry the same meaning.
1.66 Intuitive labels help readers understand and recall the content of the definition,
which improves the law's readability. This is consistent with the ALRC's
finding that labels should be intuitive.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Principle 6 - Bold italics should only be used when creating
defined terms
1.67 The Corporations Act uses bold italics inconsistently. The amendments
rationalise the use of bold italics so it is only used when a new term is defined,
including in just-in-time definitions and section specific definitions (internal
tags).
1.68 The amendments remove bold italics from terms that are not used in a defined
sense, including in provisions that merely contain application rules.
1.69 By applying bold italics consistently throughout the Corporations Act, the Bill
makes it easier for readers to identify provisions that create definitions.
Consequential amendments relating to regulation-making
powers
1.70 The Bill relocates the following regulation-making powers to create the single
glossary:
• the power to prescribe persons and offers for the purpose of
determining who 'offers' a security;
• the power to prescribe a certain event as a 'triggering event';
• the powers to prescribe circumstances and conditions that a deposit
product is required to satisfy in order to meet the definition of 'basic
deposit product';
• the power to prescribe classes of 'ADIs' (authorised deposit taking
institutions);
• the power to prescribe classes of transactions for the purposes of the
definition of 'derivative transaction';
• the power to prescribe a licensed CS facility for the purposes of the
definition of 'prescribed CS facility';
• the power to prescribe circumstances where a sale is a 'regulated sale';
• the power to prescribe requirements that must be satisfied for a
clearing and settlement facility to be an 'authorised clearing and
settlement facility';
• the power to prescribe bodies corporate as 'widely held market
bodies';
• the power to prescribe reporting requirements with which 'Part 7.5
authorities' must comply in relation to 'Division 3 arrangements' in
certain situations;
• the power to prescribe 'regulated persons';
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Australian Law Reform Commission recommendations
• the power to prescribe a website as a 'CGS depository interest
information website';
• the power to prescribe things that are not 'financial products';
• the power to prescribe superannuation products that are not 'Division 3
financial products';
• the power to prescribe provisions of a recognised jurisdiction's law as
comprising a 'foreign recognition scheme'; and
• the power to prescribe a foreign country as a 'recognised jurisdiction'.
[Schedule 2, items 30, 125, 208, 221, 251, 260, 289, 373, 420, 491,
535, 541, 546, 573, sections 9 (definitions of 'offer', 'basic deposit
product', 'derivative transaction', 'prescribed CS facility', 'regulated
sale', ), 500AAA, 761A (definition of 'authorised clearing and
settlement facility'), 850A, 892I, 994A, 1020AH, 1023B, 1042A
(definition of 'Division 3 financial products'), subsection 1200A(1)
(definitions of 'foreign recognition scheme' and 'recognised
jurisdiction') of the Corporations Act]
1.71 These regulation-making powers provide sufficient flexibility so the law can be
efficiently updated to accommodate new technologies, new financial products
and new companies. They therefore need to be retained.
1.72 None of the new regulation-making provisions contain exemption or
modification powers. Regulations made under these powers are also subject to
parliamentary oversight through the disallowance process and must be
consistent with the scope of the powers in the primary law.
1.73 The Bill does not amend the power or scope of the existing regulation-making
power provisions.
Other amendments
Interim Report B recommendations
1.74 The Bill partially implements three recommendations from Interim Report B
to:
• repeal unused definitions and other redundant or unnecessary
provisions;
• address unclear or incorrect provisions; and
• simplify unnecessarily complex provisions, including terms defined as
having more than one meaning and definitions that contain substantive
obligations.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
1.75 The Bill repeals the definitions of 'financial benefit' and 'transitional period'.
Both terms are redundant. The term 'financial benefit' is not used or defined in
the Act and the provision that uses the term 'transition period' is spent.
[Schedule 2, item 484, Division 7 of Part 7.7A of the Corporations Act]
1.76 The Bill removes unnecessary provisions from the Corporations Act and ASIC
Act where they replicate rules contained in Acts of general application or
reflect ordinary rules of statutory interpretation. For instance, the Bill repeals
the section in the Corporations Act that provides that references to ASIC
include ASIC delegates.
[Schedule 2, item 1, subsections 5(2) and (3) of the ASIC Act; items 63, 70,
sections 83 and 106 of the Corporations Act]
1.77 The amendments also fix an erroneous reference in the ASIC Act.
[Schedule 2, item 163, paragraph 43(1)(e) of the ASIC Act]
1.78 In some cases, the Corporations Act uses identical labels for terms that have
different meanings. The Bill combines the different definitions so they all sit
under a single label. The label then outlines the different meanings that label
carries in different contexts. This reduces complexity for readers who may not
know how to apply a definition when one label has more than one meaning.
[Schedule 2, items 20, 22, 24, 30, 48, 80, 109, 110, 164, 165, 166, and 573,
section 9 (definition of 'eligibility criteria' (first and second occurring),
'eligibility criteria' (second occurring), 'enter into', 'interest', 'involved',
'law' and 'offer'), 9AB, 9AD, 64 and subsections 700(2) and (3), and
subsection 1200A(1) of the Corporations Act]
1.79 The Bill removes a substantive obligation from the definition of 'crossing [of
section 1020B products]' and locates it in a new standalone provision. This is
consistent with the ALRC's finding that defined terms should not contain
substantive obligations or powers because doing so increases complexity. The
Bill also relocates the power of ASIC to delegate matters to staff members to a
standalone provision.
[Schedule 2, items 155, 156, 157, 158 and 534, sections 601WCI and
1020AA, subsection 601WCA(1) and paragraphs 601WCB(b)(i) and
601WCC(1)(b)(i) of the Corporations Act]
Miscellaneous amendments to improve clarity, consistency
and navigability
Clarity
1.80 The Bill amends expressions that are unclear. In particular, it replaces
references to compensation arrangements with 'arrangements for
compensation' to avoid using shorthand. It also avoids using a defined term
where the term is not intended to be understood in its defined sense.
[Schedule 2, items 441, 463 and 464, section 912B (heading) and subsections
923C(10) (heading) and 923C(10) (note) of the Corporations Act]
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Australian Law Reform Commission recommendations
1.81 The Bill inserts 'or providing compensation' after the phrase 'paying
compensation' to capture the provision of non-monetary compensation, which
is not something capable of being 'paid'. This language is more intuitive and
clarifies meaning for readers.
[Schedule 2, items 388, 394 and 395, section 883C, paragraph 885B(1)(e)
and subsection 885E(1) of the Corporations Act]
1.82 The Bill makes minor amendments to remove unnecessary words, where doing
so improves clarity. However, it also adds additional words in some limited
circumstances to explain certain concepts more clearly. In particular, the
phrase 'under any law of the Commonwealth or a State or Territory' is inserted
in relation to the availability of infringement notices to make clear that both
Commonwealth and State or Territory legislation can impose infringements
notices.
[Schedule 2, item 589, subsection 12BAB(14) (note) of the ASIC Act; items
42, 87, 340, 341, 519, 565, 602 and 608, section 9 (definition of 'annual
transparency report', note to the definition of 'retention of title clause'),
subsection 1017BB(6) (definition of 'small APRA fund'), 1200F(1) (table
item 4), 1317DAG(3)(heading), paragraphs 766A(1)(a) to (c), 766A(1)(e) to
(ec) and 1311E(3)(a) and (b) of the Corporations Act]
1.83 The Bill removes notes and words which pinpoint sections for defined terms in
the Act rather than pinpointing the single glossary in section 9. For example,
the Bill repeals note 1 under subsection 208(1) as it provides various pinpoint
references in the Act for 'related party', 'entity', 'control' and 'giving a
financial benefit' when they are all defined in the single glossary. Similarly,
the Bill repeals words directing readers to consult another provision for the
definition of a term, where that term is defined in the single glossary. For
example, the Bill repeals a suggestion that readers 'see section 766C' in
relation to the term 'dealing', as this term is defined in the single glossary. As
such, the preferred approach is to simplify the Act by removing these notes and
pinpoint references to encourage readers to use the single glossary as their first
and primary dictionary source for defined terms.
[Schedule 2, items 96, 106, 284, 285, 322, 335, 336, 353, 435, 465, 466, 467,
468, 470, 477 and 507, sections 601LC (note to subsection 208(1)) and 738C
(notes 1 and 2), subsections 208(1) (notes 1, 2 and 3) and 941C(6),
paragraphs 763A(1)(a) to (c), 765A(1)(k), 768A(2)(h), 922M(1)(a),
941C(2)(b), 941C(6)(b), 946B(5)(b) and 961F(b), and subparagraphs
765A(1)(h)(ii), 765A(1)(i)(ii), 911B(1)(c)(iv) and 1012G(1)(b)(ii) of the
Corporations Act]
1.84 Section 7 of the Corporations Act is redundant following the creation of the
single glossary in section 9 and is repealed. The Bill substitutes a new section
7, which provides guidance to aid interpretation of the single glossary and
explain the principles that underpin it.
[Schedule 2, item 3, section 7 of the Corporations Act]
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
1.85 The Bill amends some defined terms to clarify the context in which the terms
apply. For example, the definition of 'reasonable investigation' is updated to
acknowledge that it occurs in respect of 'financial products'. 'Renewal period'
is updated to clarify that it applies for an 'anniversary day' for an 'ongoing fee
arrangement' and the definition of 'clearing requirements' is updated to clarify
that it applies in relation to 'derivative transactions'.
[Schedule 2, items 213 and 260, section 9 (definition of 'clearing
requirements', 'reasonable investigation' and 'renewal period') of the
Corporations Act]
1.86 The Bill inserts a definition for 'penalty applicable' in the ASIC Act. The
Corporations Act defines 'penalty applicable', but the penalties regime applied
by the ASIC Act differs significantly from that of the Corporations Act.
Including a definition of 'penalty applicable' in the ASIC Act ensures that
readers are aware that the ASIC Act contains a different penalties regime to the
Corporations Act.
[Schedule 2, items 599, subsection 5(1) of the ASIC Act]
1.87 Some labels for defined terms include acronyms. For example, 'RSE licensee'
and 'RSA'. The Bill inserts notes below these definitions to explain the
acronyms. The note below 'RSE licensee' clarifies RSE is short for registrable
superannuation entity and the note below 'RSA' clarifies it is short for
retirement savings account.
[Schedule 2, items 267 and 268, section 9 (definitions of 'RSA', 'RSA
provider' and 'RSE licensee') of the Corporations Act]
Consistency
1.88 The ALRC suggested that terms used in the ASIC Act should take the same
meaning as in the Corporations Act where possible. The ASIC Act provides
that terms used, but not defined, in the ASIC Act take the same meaning as in
the Corporations Act. Despite this, the ASIC Act sometimes defines terms in
an identical form to the Corporations Act. This creates confusion for readers,
as it is not clear where to find the meaning of defined terms. It also creates
duplication, unnecessarily increasing the length of the statute book.
1.89 To reduce duplication, the amendments repeal definitions from the ASIC Act
where they also appear in the Corporations Act.
1.90 The Bill also amends the interpretation provision in section 5 of the ASIC Act
to clarify that the Corporations Act's interpretation provisions in Part 1.2,
which include the section 9 single glossary, apply to the ASIC Act. As a result
of these amendments, the definition of 'APRA' in the ASIC Act is redundant.
These amendments repeal this definition.
[Schedule 2, items 1 and 7, subsections 5(1) (definition of 'APRA'), (2) and
(3) of the ASIC Act]
1.91 For consistency with the approach taken in the ASIC Act, the Bill amends the
interpretation provisions in the Corporations (Fees) Act 2001 and the
29
Australian Law Reform Commission recommendations
Corporations (Review Fees) Act 2003 to clarify that the Corporations Act's
interpretation provisions in Part 1.2 also apply to these Acts. It also amends the
interpretation provisions of the Corporations (Compensation Arrangements
Levies) Act 2001 and the Corporations (National Guarantee Fund Levies) Act
2001 to clarify that defined terms in Division 3 of Part 7.5 and Division 4 of
Part 7.5 of the Corporations Act apply to these Acts respectively.
[Schedule 2, item 636, section 3 of the Corporations (Compensation
Arrangements Levies) Act 2001; item 637, subsection 4(2) of the
Corporations (Fees) Act 2001; item 638, section 3 of the Corporations
(National Guarantee Fund Levies) Act 2001; item 639, subsection 4(2) of the
Corporations (Review Fees) Act 2003]
1.92 The Bill removes the reference to the term 'derivative' and 'managed
investment scheme' being 'within the meaning of the Corporations Act'. These
words are unnecessary as the interpretation provisions in the Corporations Act
apply to the ASIC Act. References to 'that Act' are also updated to 'the
Corporations Act' as required.
[Schedule 2, items 190 and 191, paragraphs 12BAA(8)(h),(i) and (j) and
subparagraph 12BAA(8)(k)(i) of the ASIC Act]
1.93 The Bill amends the introductory text at the start of section 9 to accord with
modern drafting conventions and ensure consistency with other dictionaries in
the Corporations Act. It also clarifies that terms listed in the single glossary
generally apply Act wide.
[Schedule 2, item 4, section 9 of the Corporations Act]
1.94 The Bill updates definitions that rely on terms defined in other Acts, so they
use consistent labels. It repeals the definition of 'BAS agent' in the
Corporations Act and replaces it with a composite definition of 'registered tax
agent or BAS agent' to reflect the definition provided for in the Tax Agent
Services Act 2009.
[Schedule 2, item 260, section 9 of the Corporations Act]
1.95 The Bill updates the definition of 'public sector superannuation scheme' to
align with the definition in the SIS Act.
[Schedule 2, items 243, 256, 257, 260 and 308, section 9 (paragraph (h) of
the definition of 'managed investment scheme', paragraphs (b) and (d) of the
definition of 'professional investor' and the definition of 'public sector
superannuation scheme'), subparagraph 761G(6)(c)(i) of the Corporations
Act]
1.96 The Bill also removes a redundant signpost which directs the reader to the
location of the defined term 'unacceptable control situation'.
[Schedule 2, item 149, paragraph 601RAB(2A)(e) of the Corporations Act]
Navigability
1.97 The Bill improves the use of simplified outlines in the Corporations Act.
Simplified outlines assist readers to navigate the law and understand the
30
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
substantive provisions (but are not intended to be comprehensive). The Bill
inserts a new outline for Part 1.2 and updates the formatting of the outline for
Part 2D so that it is in a box as per modern drafting conventions.
[Schedule 2, items 2 and 95, sections 5J and 179 of the Corporations Act]
1.98 The Bill amends some definitions provisions to include references to other
definitions or rules relevant to the definition's interpretation. For example, the
Bill inserts a note below the definition of 'market' directing readers to the
related definition of 'makes a market'. Similarly, the Bill inserts a note below
the definition of 'infringement notices' directing the reader to the various
provisions affected by that definition. This improves navigability and aids
interpretation. The Bill makes these amendments in relation to the following
definitions in section 9:
• 'act' - see 'doing' an act or thing;
• 'client' - see 'retail client' and 'wholesale client';
• 'general insurance product' - see 'insurance product';
• 'insurance product' - see 'general insurance product', 'risk insurance
product', 'life risk insurance product' and 'reinvestment life insurance
product';
• 'investment life insurance product' - see 'insurance product';
• 'market' - see 'makes a market';
• 'register' - see 'Business Names Register' and 'Register of Relevant
Providers';
• 'risk insurance product' - see 'general insurance product', 'insurance
product' and 'life risk insurance product'; and
• 'shares' - see 'number of shares'.
[Schedule 2, items 8, 17, 40, 46, 239, 245, 267, 600, section 9 (definitions of
'act', 'client', 'general insurance product', 'infringement notice', 'insurance
product', 'investment life insurance product', 'market', 'register', 'risk
insurance product' and 'shares') of the Corporations Act]
1.99 The Bill inserts legislative notes for definitions in the single glossary that have
a modified meaning in a particular provision, or group of provisions. For
example, the Act-wide definition of 'selective reduction' contained in the
single glossary does not apply to an MCI mutual entity. Instead, a modified
definition of 'selective reduction' applies. The Bill inserts a legislative note
identifying the location of the modified definition to ensure readers are aware
of it.
[Schedule 2, item 184, subsection 5(1) of the ASIC Act; items 30, 94, 213,
229, 260 and 269, section 9 (definitions of 'selective reduction', 'custodial
arrangement', 'financial product', 'offer', 'purchase' and 'sale') of the
Corporations Act]
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Australian Law Reform Commission recommendations
1.100 The Bill inserts signposts to assist readers to find defined terms where the label
begins with a verb. For example, the Bill adds a signpost to 'non-cash
payments' referring readers to the defined term of 'makes non-cash payment'.
The inclusion of a verb in definitions is unusual and readers may not initially
look for a verb for the meaning of a term. The Bill adds signposts to the
following definitions:
• 'financial benefit' - see 'giving a financial benefit';
• 'financial investment' - see 'makes a financial investment';
• 'financial risk' - see 'manages financial risk'; and
• 'non-cash payments' - see 'makes non-cash payments'.
[Schedule 2, items 89, 227, 230 and 247, section 9 (definitions of 'financial
benefit', 'financial investment', 'financial risk' and 'non-cash payments') of
the Corporations Act]
1.101 The Bill makes it easier for readers to find out when a form needs to be lodged
in a prescribed form. 'Lodge' is defined for the purposes of Chapter 7 to mean
'lodge with ASIC in a prescribed form'. However, readers are often unaware
that the term is defined. To avoid this confusion, the Bill repeals the definition
of 'lodge' from the Chapter 7 dictionary and instead uses the phrases 'in a
prescribed form' wherever required.
[Schedule 2, items 29, 289, 359, 360, 362, 363, 368, 369, 371, 372, 376, 386,
389, 390, 391, 400, 401, 425, 426, 446 to 452, 454, 455, 458, 489, 490 and
512, sections 9 (definition of lodge), 761A and 913A, subsections 793D(1)
and (3), 795A(1), 797A(1), 822D(1) and (3), 824A(1), 826A(1), 851D(4),
884B(2), 884B(4), 890G(1), 890G(3), 908BD(1) and (2), 913B(3) and (4B),
914B(3) and (6), 915A(1), 915C(5), 916F(1), 989B(2), 990K(1) and
1015B(1), paragraphs 796A(2(b)), 825A(2)(b), 882B(2)(b), 884C(2)(b),
914A(2)(b), 915B(1)(e), 915B(2)(d), 915B(3)(d), 915B(4)(d) and 920D(2)(b)
of the Corporations Act]
1.102 The Bill inserts notes in provisions directing readers to the section 9 single
glossary, where the glossary is particularly relevant to the provision. For
example, a note is added to the dictionary in section 5-5 of the Insolvency
Practice Schedule to alert readers that the meaning of some terms used in the
Schedule are actually defined in the section 9 single glossary.
[Schedule 2, item 6, section 5-5 of Schedule 2 (heading) of the Corporations
Act]
1.103 Further, the Bill amends vague language, such as 'in such cases as are
prescribed' and replaces it with 'in such cases as are specified in the
regulations'. The Bill also inserts references to the regulations in relation to
publishing. These changes make clear to readers that they need to look to the
regulations, which improves clarity and navigability.
[Schedule 2, items 613, section 1367; Schedule 3, items 23 to 25, subsections
601WDA(1) and (3), paragraph 601WBH(b) of the Corporations Act]
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
1.104 The Bill repeals the four separate definitions of 'officer' located in section 9
and combines them into a new standalone provision titled 'meaning of officer'.
This new provision incorporates the four definitions of 'officer' into different
subsections. Combining all the definitions of 'officer' into one provision
improves navigability as readers are required to only refer to one location for
all definitions that relate to 'officer'. The Bill also creates a standalone
provision titled 'meaning of director' to incorporate the different definitions of
'director' in the Corporations Act.
[Schedule 2, items 18, 31 and 48, sections 9 (definitions of 'director' and
'officer'), 9AB, 9AC and 9AD of the Corporations Act]
Substantive amendments to other Acts
1.105 The Bill repeals the definition of 'corporations law' in the SIS Act as the term
is not used in that Act.
[Schedule 2, item 630, subsection 10(1) (definition of 'Corporations Law') of
the SIS Act]
1.106 The amendments repeal the definition of 'financial services business' from the
Security of Critical Infrastructure Act 2018. This Act relies on the definition of
'financial services business' in the Corporations Act. However, the Bill repeals
this definition from the Corporations Act, as the term is defined as 'a business
providing financial services', which does not add anything to the ordinary
meaning of the term (see principle 1 above). The Bill also amends the only
reference to this definition in the Security of Critical Infrastructure Act 2018 to
ensure that Act continues to operate as intended.
[Schedule 2, item 706, section 5 (definition of 'financial services business')
of the Security of Critical Infrastructure Act 2018]
1.107 The Bill repeals the reference to section 769 of the Corporations Act in the
ITAA 1997, as it is redundant. Section 769 of the Corporations Act has been
repealed and the definition of 'approved stock exchange' in the Corporations
Act now directs the reader to the meaning of the phrase in the ITAA 1997. The
phrase 'approved stock exchange' is defined as 'a stock exchange named in
regulations made for the purposes of this definition' in the ITAA 1997. The
Bill substitutes the reference to section 769 of the Corporations Act with the
defined term 'approved stock exchange'.
[Schedule 2, item 649, paragraph 115-290(1)(b) of the ITAA 1997]
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Australian Law Reform Commission recommendations
Consequential amendments
Consequential amendments to other Acts and
Regulations
1.108 The Bill makes consequential amendments to Acts which rely on definitions in
the Corporations Act that are affected by this Bill.
1.109 In most cases, where the Bill relocates a definition and that definition is relied
on by a provision of another Act, the Bill amends the provision in the other Act
to remove any reference to a specific chapter, part, division or provision of the
Corporations Act. This ensures the reference does not need to be updated if the
location of the definition within the Corporations Act changes. It also brings
the drafting into line with modern conventions.
1.110 Attachment 2 lists the provisions of these Acts amended as a consequence of
the creation of the single glossary and the relevant Corporations Act definitions
that apply to each provision.
1.111 One exception to this principle is where the Corporations Act contains multiple
definitions for the term. In these circumstances, the pinpoint reference to a
specific definition is retained.
1.112 The Bill also relocates the definition of 'securities' in the Corporations Act
from section 761A to subsection 92(5). Where an Act relies on the definition of
'securities' provided by current section 761A of the Corporations Act, this Bill
amends that Act to refer to new subsection 92(5) of the Corporations Act.
'Securities' has multiple definitions in the Corporations Act and therefore the
pinpoint reference is needed.
[Schedule 2, item 622, section 5 (definition of 'security') of the Anti-Money
Laundering and Counter Terrorism Financing Act 2006; item 676,
subclause 6(8) of Schedule 2 (definition of 'security') of the Medibank
Private Sale Act 2006; item 687, section 5 (paragraph (a) of the definition of
'financial property') of the Payment Systems and Netting Act 1998]
1.113 The SIS Act contains a provision which defines the term 'regulated
superannuation fund' with reference to the definition of 'regulated
superannuation fund' in Chapter 7 of the Corporations Act. The Bill amends
this provision to remove this reference to the Corporations Act while
incorporating the substance of the definition from the Corporations Act into the
relevant provision of the SIS Act.
[Schedule 2, items 719 and 720, subsections 101(1) and 101(3) of the SIS
Act]
34
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Commencement, application, and transitional
provisions
1.114 The Bill ensures ASIC instruments continue to operate as intended
notwithstanding the amendments to definitions in the Corporations Act and the
ASIC Act made by the Bill. In particular, references in ASIC instruments to:
• definitions that are moved or amended by the Bill are treated as
referring to the new definition; and
• repealed definitions (that are not moved or replaced) are treated as
continuing to have effect for the purposes of the instrument as though
they had not been repealed.
1.115 [Schedule 2, item 541, sections 344B and 344C of the ASIC Act; item 617,
sections 1698B and 1698C of the Corporations Act]
1.116 Similarly, the Bill ensures that authorisations, appointments, delegations,
declarations and instruments made by ASIC remain valid, where they were
made under a provision that is modified by the amendments. The Bill also
provides for documents which are prescribed forms under the Corporations Act
to continue to have effect, as if the form had been prescribed or approved
under the Act as amended by the Bill.
[Schedule 2, item 617, sections 1698E, 1698F, 1698H, 1698J, 1698K of the
Corporations Act]
1.117 The Bill includes a savings provision to ensure that the amendments relating to
the AIA do not alter the calculation of time for periods which starts before the
commencement of the Bill. This is significant for time periods in ASIC
instruments. It has no practical effect for time periods in the ASIC Act,
Corporations Act or regulations made under those Acts as the amendments in
this Bill preserve the status quo.
[Schedule 2, item 542, sections 344B and 344D of the ASIC Act; item 542,
section 1698D of the Corporations Act]
1.118 The Bill also includes a savings provision that preserves the effect of
regulations made under several provisions of the Corporations Act, where
those provisions are modified by the amendments.
[Schedule 2, item 617, sections 1698G and 1698L of the Corporations Act]
Contingent amendments
1.119 Schedule 3 to the Bill contains additional consequential amendments that will
be required if Bills currently before Parliament are passed. Schedule 3 to the
Bill also contains necessary consequential amendments where an Act modified
35
Australian Law Reform Commission recommendations
by the Bill has not yet commenced and has more than one possible
commencement date.
Treasury Laws Amendment (More Competition, Better
Prices) Act 2022
1.120 On 27 October 2022, the Treasury Laws Amendment (More Competition,
Better Prices) Act 2022 passed the Parliament.
1.121 The Bill amends the ASIC Act and the Competition and Consumer Act to
update references to the Corporations Act inserted by the Treasury Laws
Amendment (More Competition, Better Prices) Act 2022 following the creation
of the single glossary by this Bill, consistent with principle 3.
[Schedule 3, items 1 and 2, subsection 12BLC(3) and subparagraph
12BLC(1)(a)(i) of the ASIC Act; item 3, subsection 28A(3) of the
Competition and Consumer Act]
1.122 These amendments commence at the later of the time the single glossary
amendments commence or immediately after the Treasury Laws Amendment
(More Competition, Better Prices) Act 2022 commences. While Parliament
passed the Treasury Laws Amendment (More Competition, Better Prices) Act
2022 in October 2022, the relevant amendments are not scheduled to
commence until 9 November 2023.
[Section 2 of the Bill, table item 3]
Financial Accountability Regime Bill 2023
1.123 The Financial Accountability Regime Bill 2023 is currently before the
Parliament.
1.124 The Bill amends the definitions of 'annual turnover', 'officer' and 'financial
services law' in the Financial Accountability Regime Act 2023 to reflect the
relocation and removal of these definitions in the Corporations Act, consistent
with principle 3.3, principle 2 and principle 3.1 respectively.
[Schedule 3, items 4, 5 and 6, section 8 and subparagraph 21(1)(d)(v) of the
Financial Accountability Regime Act 2023]
1.125 These amendments commence only if the Financial Accountability Regime
Bill passes. This is achieved by commencing the amendments at the later of the
time the single glossary amendments commence or immediately after the
Financial Accountability Regime Act 2023 commences.
[Section 2 of the Bill, table item 4]
36
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Compensation Scheme of Last Resort Bills
1.126 The Compensation Scheme of Last Resort Bills are currently before the
Parliament.
1.127 The Bill amends the definitions of:
• 'AFCA' in the ASIC Act, the Financial Services Compensation
Scheme of Last Resort Levy Act 2023 (if passed) and the Financial
Services Compensation Scheme of Last Resort Levy (Collection) Act
2023 (if passed) to reflect the relocation of the definition of 'AFCA' in
the Corporations Act, consistent with principle 3.1
[Schedule 3, items 7, 8, 10, subparagraph 127(4)(aa)(i) of the ASIC
Act; subsection 7(1) (definition of 'AFCA') of the Financial Services
Compensation Scheme of Last Resort Levy Act 2023; subsection 7(1)
(definition of 'AFCA') of the Financial Services Compensation
Scheme of Last Resort Levy (Collection) Act 2023]
• 'AFCA scheme' in the Financial Services Compensation Scheme of
Last Resort Levy Act 2023 (if passed) and the Financial Services
Compensation Scheme of Last Resort Levy (Collection) Act 2023 (if
passed) to reflect the relocation of the definition of 'AFCA scheme' in
the Corporations Act, consistent with principle 3.1.
[Schedule 3, items 9, 11, subsection 7(1) (definition of 'AFCA
scheme') of the Financial Services Compensation Scheme of Last
Resort Levy Act 2023; subsection 7(1) (definition of 'AFCA scheme')
of the Financial Services Compensation Scheme of Last Resort Levy
(Collection) Act 2023]
1.128 However, these amendments only commence if the relevant Compensation
Scheme Bill passes. Commencement of these amendments occurs at the later
of the commencement of the single glossary amendments (to guard against
retrospective commencement) and the relevant Compensation Scheme Bill (to
tie the commencement of the amendment and the Compensation Scheme Bill
together).
[Section 2 of the Bill, table items 5, 6 and 7]
Schedule 6 to the Treasury Laws Amendment (2022
Measures No. 4) Bill
1.129 The Treasury Laws Amendment (2022 Measures No. 4) Bill 2023 is currently
before the Parliament.
1.130 The Bill repeals the definition of 'RSE licensee' in the ASIC Act inserted by
Schedule 6 to the Treasury Laws Amendment (2022 Measures No.4) Act 2023
(if passed). The ALRC found that terms used in the ASIC Act should take the
same meaning as in the Corporations Act where possible. As 'RSE licensee' is
37
Australian Law Reform Commission recommendations
already defined in section 9 of the Corporations Act, it is not necessary to
define it again in the ASIC Act.
[Schedule 3, item 12, subsection 127(9) (definition of 'RSE licensee') of the
ASIC Act]
1.131 The Bill amends provisions of the Corporations Act that are amended by
Schedule 6 to the Treasury Laws Amendment (2022 Measures No.4) Act 2023
(if passed) to reflect the creation of the section 9 single glossary consistent
with principle 2 and principle 3 (definition of 'officer'), principle 3.1
(definitions of 'exempt public sector superannuation scheme' and 'officer')
and principle 3.2 (definitions of 'director' and 'financial year').
[Schedule 3, items 13 to 21, section 9 (note 2 to the definition of 'director',
paragraphs (aa) of the definition of 'financial year' and (i) of the definition
of 'registrable superannuation entity', definition of 'officer of a registrable
superannuation entity', subparagraph (b)(i) of the definition of 'registrable
superannuation entity'), sections 9AB, 345AAC, and 345AAD and
subsections 9AC(3), 9AD(3) and 9AD(4) of the Corporations Act]
1.132 These amendments only commence if Schedule 6 to the Treasury Laws
Amendment (2022 Measures No. 4) Bill 2023 is passed. The amendments
commence at the later of the commencement of the Bill and the Treasury Laws
Amendment (2022 Measures No. 4) Act 2023.
[Section 2 of the Bill, table item 8]
Schedule 1 to the Treasury Laws Amendment
(Modernising Business Communications and Other
Measures) Bill 2023
1.133 The MBC Bill is currently before the Parliament. That Bill amends the
requirements relating to the communication of notices of cancellation of a
financial services licences to ensure technology neutrality.
1.134 This Bill removes the definition of 'cancel' in the Corporations Act and instead
incorporates the meaning into the provisions that use the term. This is
consistent with principle 2.
[Schedule 2, items 104, 105 and 110, section 601WAA, subsection
601WDA(1) and paragraph 601WBA(1)(a) of the Corporations Act]
1.135 Consequential amendments are required to the provisions relating to the
communication of notices of cancellation of financial services licences. The
form of these amendments depends on whether the relevant provisions in the
MBC Bill have commenced.
1.136 If the relevant provisions of the MBC Bill have commenced, the existing law
needs to be updated to reflect the repeal of the definition of 'cancel' and
framed in a manner that is technology neutral. This form of the amendment
will only commence if the relevant provisions of the MBC Bill commence
38
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
before this Bill.
[Schedule 3, Division 1, item 22, subsections 601WDA(1) of the Corporations
Act; section 2 of the Bill, table item 9]
1.137 If the relevant provisions of the MBC Bill have not commenced, the existing
law should be updated to reflect the repeal of the definition of 'cancel' but
continue to only permit publication on a website. This form of the amendment
commences only if the relevant provisions in the MBC Bill have not
commenced when this Bill commences.
[Schedule 3, Division 2, items 23-25, paragraph 601WBH(b) and subsections
601WDA(1) and 601WDA(3) of the Corporations Act; section 2 of the Bill,
table item 10]
1.138 If the MBC Bill subsequently commences after this Bill, the MBC Bill will
update the existing law to allow for technology neutral publications.
Schedule 3 to the Treasury Laws Amendment
(Modernising Business Communications and Other
Measures) Bill 2023
1.139 Schedule 3 to the MBC Bill inserts a new definition ('proposed licensee trustee
company') and amends an existing definition ('unacceptable control situation')
in the Corporations Act. It also inserts a new provision with a cross-reference
to 'unsolicited contact'.
1.140 Consequential amendments are required to ensure these definitions and the
cross-reference adhere to the principles set out above. The form of these
amendments depends on whether relevant provisions in the MBC Bill have
commenced at the time that this Bill commences.
1.141 If the relevant provisions of the MBC Bill have commenced, the definitions it
inserted or amended need to move location consistent with the principles
underpinning the single glossary. The Bill inserts the full definition of
'proposed license trustee company' and a signpost to the definition of
'unacceptable control situation' (which is located in section 601VAA) in the
single glossary. It also updates a cross-reference to the location of the
definition of 'unsolicited contact'. This form of the amendments only
commences if the relevant provisions of the MBC Bill have commenced when
the single glossary amendments commence.
[Schedule 3, items 26-30, section 9, section 601RAA (definition of proposed
licensed trustee), section 601VAA, section 601VAA (heading) and paragraph
1012GA(1)(a) of the Corporations Act, section 2 of the Bill, table item 11]
1.142 If the relevant provisions of the MBC Bill have not commenced, the Bill
includes a signpost of 'unacceptable control situation' (which is currently
located in section 601VAA) into section 9. This commences regardless of
whether the MBC Bill subsequently passes and commences.
39
Australian Law Reform Commission recommendations
[Schedule 3, Division 2, items 31 and 32, section 9 and 601VAA of the
Corporations Act; section 2 of the Bill, table item 12]
1.143 If the relevant provisions in the MBC Bill subsequently commence, further
consequential amendments are needed immediately after the commencement of
the MBC Bill to:
• move the definition of 'proposed licensed trustee company', which was
inserted by the MBC Bill, from section 601RAA to section 9
[Schedule 3, Division 3, items 33 and 35, section 9 of the
Corporations Act; section 2 of the Bill, table item 13];
• update the definition of 'unacceptable control situation' in section 9 to
reflect the amendments in the MBC Bill and make consequential
amendments to the new provisions inserted by the MBC Bill to reflect
its new location in section 9
[Schedule 3, Division 3, items 34, 36 and 37, section 9 and section
601VAA of the Corporations Act; section 2 of the Bill, table item 13];
and
• update the cross-reference to 'unsolicited contact' to reflect the new
location of that definition.
[Schedule 3, Division 3, item 38, paragraph 1012GA(1)(a); section 2
of the Bill, table item 13]
Part 1 of Schedule 4 to the Treasury Laws
Amendment (Modernising Business Communications
and Other Measures) Bill 2023
1.144 The Bill amends the Corporations Act to:
• relocate the definitions of 'credit licensee', 'mortgage broker' and
'mortgage intermediary', which the MBC Bill inserts into section
910A of the Corporations Act, to the single glossary in section 9,
consistent with principle 3;
• update a reference to the definition of 'recognised tax adviser' in the
ITAA 1997 to reflect the definition's relocation in the Corporations
Act, consistent with principle 3.1; and
• update a reference to the definition of 'financial services licensee' in
the National Consumer Credit Protection Act 2009 to reflect the
expanded application of the definition in the Corporations Act,
consistent with principle 3.3.
[Schedule 3, items 39 to 42, sections 9 and 910A of the Corporations
Act, section 995-1 of the ITAA 1997 and subsection 5(1) of the
National Consumer Credit Protection Act 2009]
40
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
1.145 These amendments only commence if Part 1 of Schedule 4 to the Treasury
Laws Amendment (Modernising Business Communications and Other
Measures) Act 2023 commences.
[Section 2 of the Bill, table item 14]
41
Insurance
Table of Contents:
Outline of chapter ................................................................................ 43
Context of amendments ....................................................................... 43
Summary of new law............................................................................ 44
Detailed explanation of new law .......................................................... 45
Part 1 - Public Interest ................................................................... 45
Part 2 - Forms of notices etc. ........................................................ 50
Part 3 - Friendly Societies ............................................................. 59
Part 4 - Statutory funds of life companies...................................... 62
Part 5 - References to Treasurer ................................................... 68
Part 6 - Other amendments ........................................................... 69
Part 7 - Amendments consequential on Schedule 2 to the Bill ...... 74
Commencement and application ......................................................... 74
Outline of chapter
2.1 Schedule 4 to the Bill primarily amends the IAT Act, Life Insurance Act and
Insurance Act to implement relevant findings of the thematic review of
Insurance Instruments that are due to sunset on 1 October 2023.
Context of amendments
2.2 The Legislation Act 2003 provides that all legislative instruments, other than
exempt instruments, are automatically repealed according to the progressive
timetable in section 50 of that Act. The Attorney-General may defer sunsetting
in certain circumstances, pursuant to section 51 of the Legislation Act 2003.
Legislative instruments generally cease to have effect after a specific date
unless further legislative action is taken to extend their operation, such as
remaking the instrument.
43
Insurance
2.3 The Legislation (Insurance Instruments) Sunset-altering Declaration 2018
aligned the sunsetting date for the Insurance Instruments to 1 October 2023 to
enable Treasury to conduct a comprehensive thematic review of regulation
imposed on the insurance industry.
2.4 Treasury carried out the review of the Insurance Instruments and relevant
provisions of the enabling Acts (the IAT Act, Life Insurance Act and Insurance
Act) in 2022, in consultation with APRA and ASIC. As part of Treasury's
review, a number of provisions in the enabling Acts and Insurance Instruments
were identified as inoperative, spent, or necessary to clarify in order to ensure
the law operates as intended. A number of provisions contained in the
Insurance Instruments were also identified as being appropriate to incorporate
into the primary law, in accordance with the hierarchy of laws.
2.5 Schedule 4 to the Bill primarily amends the IAT Act, Life Insurance Act and
Insurance Act to implement the findings of the thematic review. This is
necessary to transition to the new framework of instruments proposed to
replace the Insurance Instruments that are due to sunset on 1 October 2023.
Summary of new law
2.6 Schedule 4 to the Bill primarily amends the IAT Act, Life Insurance Act and
Insurance Act to implement relevant findings of the thematic review of
Insurance Instruments that are due to sunset on 1 October 2023. This includes:
• repealing the enabling provision for the Decision-Making Principles in
the IAT Act, and replacing it with the ability for the Minister to
determine, by legislative instrument, matters relevant to the public
interest test; that is, the test for when a particular matter is contrary to
the public interest;
• clarifying the decisions in Parts 3 and 4 of the IAT Act that require the
Minister to consider the public interest test;
• giving the Minister, APRA or ASIC as relevant, the power to prescribe
the manner and form of applications and notices in the IAT Act and
Life Insurance Act, rather than have forms prescribed in regulations;
• clarifying that the prohibition on the investment of assets of a statutory
fund of a life company in a subsidiary of that life company applies at
all times at which an asset is invested, and clarifying the kinds of
subsidiaries and related entities that an asset of the subsidiary must not
be invested in under the Life Insurance Act;
• including a new offence, with a maximum penalty of 100 penalty units
in the Life Insurance Act, for a life company failing to comply with the
existing requirement to notify APRA of changes in the address at
which the company stores its financial records;
44
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
• moving certain provisions in the Insurance Instruments into the
primary law to reflect the hierarchy of laws more appropriately,
including modifications relating to friendly societies in the Life
Insurance Act;
• updating certain provisions in the IAT Act, Life insurance Act and
Insurance Act in accordance with modern drafting practice; and
• repealing certain obsolete or spent provisions.
Detailed explanation of new law
Part 1 - Public Interest
Decision-Making Principles reframed as public interest test
2.7 The IAT Act establishes a framework for the control and compulsory
notification of certain acquisitions and agreements relating to
Australian-registered insurance companies. The Minister has various
decision-making powers for these purposes.
2.8 Subsection 65(1) of the IAT Act allows the Minister to formulate principles to
be complied with by him or her in making decisions under Part 3 or 4 of the
Act. The Decision-Making Principles were made for the purpose of this
provision.
2.9 The IAT Act also requires the Minister to consider whether a matter is contrary
to the public interest when making certain decisions. For example, section 57
of the IAT Act allows the Minister to make a permanent restraining order if the
Minister is satisfied that the result of a trigger proposal would be contrary to
the public interest. Section 5 of the IAT Act prescribes when a matter is
contrary to the public interest (referred to as the 'public interest test' in this
document). Subsection 5(1) of the IAT Act provides that for the purposes of
the application of the Act to an Australian-registered insurance company, a
particular matter is taken to be contrary to the public interest if it is:
• likely to adversely affect the prudential conduct of the affairs of the
company; or
• likely to result in an unsuitable person being in a position of influence
over the company; or
• likely to unduly concentrate economic power in the Australian general
insurance industry, in the Australian life insurance industry or in the
Australian financial system; or
• contrary to the national interest.
45
Insurance
2.10 The above criteria are referred to as 'primary public interest criteria' in this
document. The Decision-Making Principles, in effect, prescribe matters in
relating to the primary public interest criteria for the purposes of the public
interest test.
2.11 The thematic review of Insurance Instruments found that while the
Decision-Making Principles are still required in some form, their application is
unclear, and the IAT Act should be amended to clarify their intended operation
and purpose; that is, to inform the public interest test pursuant to section 5 of
the IAT Act.
2.12 To give effect to the findings of the review, Part 7 of the IAT Act containing
the enabling provision for the Decision-Making Principles is repealed. This
also results in the repeal of the Decision-Making Principles. This is replaced
with the ability for the Minister to determine, by legislative instrument, matters
which inform the public interest test. Specifically, the Minister may determine
matters to which regard must or may be had in determining whether a
particular matter (such as the result of a trigger proposal under section 57 of
the IAT Act) is:
• contrary to the national interest (which is one of the primary public
interest criteria), or likely to have the effect or result mentioned in any
of the other primary public interest criteria prescribed in subsection
5(1) of the IAT Act;
• contrary to the public interest (this applies in addition to the primary
public interest criteria prescribed in subsection 5(1) of the IAT Act).
2.13 A number of consequential amendments are also made to give effect to the
change described above.
[Schedule 4, items 4, 17 and 18, subsections 5(2), 5(3), 5(4), 5(5) and 5(6),
section 69 and Part 7 of the IAT Act]
2.14 The matters which inform the public interest test are appropriate to be
prescribed in a legislative instrument to ensure that they can be updated
quickly when required. This is because they will inform decisions concerning
Australia's insurance industry, the stability of the financial system and
Australia's national interest, so must be kept up to date with the most relevant
and accurate matters for determining what is contrary to the public interest.
The determination would be subject to disallowance and therefore would be
subject to appropriate parliamentary scrutiny.
2.15 Subsection 5(1) of the IAT Act is amended to clarify that the primary public
interest criteria specified in subsection 5(1) of the Act do not limit when a
matter may be taken to be contrary to the public interest. This provides
flexibility for the Minister when making decisions to which the public interest
test relates.
[Schedule 4, item 2, subsection 5(1) of the IAT Act]
46
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Update to primary public interest criteria - fit and proper
person
2.16 Paragraph 5(1)(b) of the IAT Act provides that for the purposes of the
application of the Act to an Australia-registered insurance company, a
particular matter is taken to be contrary to the public interest if it is likely to
result in an 'unsuitable person' being in a position of influence over the
company. This is one of the primary public interest criteria, as described
above. Subsections 5(2) and (3) of the IAT Act provide further detail on when
a matter is likely to result in an 'unsuitable person' being in a position of
influence over the company. Subsection 5(2) of the IAT Act provides that a
person is taken to be an 'unsuitable person' to be in a position of influence
over a company if the person is not a fit and proper person to be in such a
position of influence. Subsection 5(3) of the IAT Act provides when a person
is taken to be in a position of influence over a company.
2.17 The thematic review of Insurance Instruments found that the two-step test
described above, whereby a person is an unsuitable person if the person is not a
fit and proper person, is not necessary as the reference to an unsuitable person
is redundant. To implement these findings, subsection 5(2) of the IAT Act is
repealed, and paragraph 5(1)(b) of the IAT Act is amended to provide that a
particular matter is taken to be contrary to the public interest if it is likely to
result in a person who is not a fit and proper person to be in a position of
influence over an Australian-registered insurance company being in such a
position of influence.
[Schedule 4, items 3 and 4, paragraph 5(1)(b) and subsection 5(2) of the IAT
Act]
2.18 The reference to unsuitable persons in the objects of the IAT Act is also
replaced with a reference to 'persons who are not fit and proper'. This reflects
the change explained above.
[Schedule 4, item 1, section 3 of the IAT Act]
2.19 Subsection 5(3) of the IAT Act, prescribing when a person is taken to be in a
position of influence over a company, is repealed for consistency with other
matters that inform the primary public interest criteria. This is replaced with a
power in new subsection 5(2) for the Minister to determine, by legislative
instrument, circumstances in which a person is taken to be in a position of
influence over an Australian registered insurance company, for the purposes of
determining whether a matter is likely to result in a person who is not a fit and
proper person to be in a position of influence over an Australian registered
insurance company being in such a position of influence. This does not limit
the circumstances in which a person is taken to be in such a position of
influence.
2.20 The circumstances in which a person is taken to be in a position of influence
over an Australian-registered insurance company are appropriate to be
prescribed in a legislative instrument to ensure that they can be updated
47
Insurance
quickly when required. This is because they will inform the public interest test,
and affect decisions concerning Australia's insurance industry, the stability of
the financial system and Australia's national interest, so must be kept up to
date with the most relevant and accurate matters for determining the public
interest. The determination would be subject to disallowance and therefore will
be subject to appropriate parliamentary scrutiny.
[Schedule 4, item 4, subsections 5(2) and 5(3) of the IAT Act]
2.21 A note is inserted at the end of section 5 which specifies that for certain
decisions made under Parts 3 and 4 of the IAT Act, the Minister must be
satisfied that a particular matter is, would or will be contrary to the public
interest. This is intended to clarify that certain decisions in the IAT Act are
subject to the public interest test. A determination made pursuant to new
subsection 5(2) or 5(6) of the IAT Act will be relevant for this consideration.
[Schedule 4, item 4, note to section 5 of the IAT Act]
Clarification of decisions to which public interest test relates
2.22 The thematic review of Insurance Instruments found that the IAT Act should
be amended to clarify the intended operation of the Decision-Making
Principles. This includes clarification of the decisions in the IAT Act to which
the public interest test relates.
2.23 To implement the findings of the thematic review, subsection 41(1) of the IAT
Act is repealed and replaced. New subsection 41(1) of the IAT Act provides
that the Minister may decide that the Minister has no objection to a trigger
proposal if the Minister is satisfied that it is not likely to be contrary to the
public interest if the trigger proposal is carried out. A decision made under this
provision is a 'go-ahead decision' for the purposes of Part 3 of the IAT Act.
2.24 New subsection 41(1A) of the IAT Act provides that the Minister may decide
that the Minister has no objection to a trigger proposal as long as the person
concerned complies with specified conditions, if the Minister is satisfied that
the trigger proposal, if carried out, is not likely to be contrary to the public
interest if the person concerned complies with those conditions. A decision
made under this provision is a 'conditional go-ahead decision' for the purposes
of Part 3 of the IAT Act.
2.25 The amendment to subsection 41(1) of the IAT Act clarifies that the Minister
must consider the public interest test when making an unconditional 'go-ahead
decision', as well as a 'conditional go-ahead decision'. The Minister must be
satisfied in either case that the trigger proposal, if carried out, is not likely to be
contrary to the public interest. As such, the Minister will be required for all
decisions made under new subsections 41(1) and (1A) of the IAT Act to have
regard to the public interest test under section 5 of the Act. A note directs the
reader to the public interest test in section 5 for the purposes of these decisions.
[Schedule 4, item 7, subsections 41(1) and 41(1A) of the IAT Act]
48
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
2.26 To clarify when a decision is a 'conditional go-ahead decision', paragraphs
41(3)(c) and (d) of the IAT Act are amended to make clear that:
• the reference to a 'decision subject to conditions' in paragraph 41(3)(c)
of the Act is a decision which is a 'conditional go-ahead decision';
• the reference to 'the conditions' in paragraph 41(3)(d) of the Act is a
reference to the conditions to which the 'conditional go-ahead
decision' is subject.
[Schedule 4, item 8, paragraphs 41(3)(c) and (d) of the IAT Act]
2.27 The definition of 'conditional go-ahead decision' in section 35 of the IAT Act
is also amended to specify that it means a 'go-ahead decision' that is made
under subsection 41(1A) for the purposes of Part 3 of the Act.
[Schedule 4, item 5, section 35 of the IAT Act]
2.28 The definition of 'go-ahead decision' in section 35 of the IAT Act is amended
to provide that this type of decision can be made under new subsection 41(1A)
of the Act, in addition to new subsection 41(1) of the Act.
[Schedule 4, item 6, section 35 of the IAT Act]
2.29 The amendments to section 41 of the IAT Act described above apply in
relation to a decision made by the Minister on or after the commencement of
item 20 of Schedule 4 to the Bill.
[Schedule 4, item 20]
2.30 Subsection 55(1) of the IAT Act is also repealed and replaced to implement the
findings of the thematic review. New subsection 55(1) of the IAT Act provides
that the Minister may decide that the Minister has no objection to a trigger
proposal if the Minister is satisfied that it is not likely to be contrary to the
public interest if the trigger proposal is carried out. A decision made under this
provision is a 'go-ahead decision' for the purposes of Part 4 of the IAT Act.
2.31 New subsection 55(1A) of the IAT Act provides that the Minister may decide
that the Minister has no objection to a trigger proposal as long as the person
concerned complies with specified conditions, if the Minister is satisfied that
the trigger proposal, if carried out, is not likely to be contrary to the public
interest if the person or company complies with those conditions. A decision
made under this provision is a 'conditional go-ahead decision' for the purposes
of Part 4 of the IAT Act.
2.32 The amendment to subsection 55(1) of the IAT Act clarifies that the Minister
must consider the public interest when making an unconditional 'go-ahead
decision', as well as a conditional 'go-ahead decision'. As such, the Minister
will be required for all decisions made under new subsections 55(1) and (1A)
of the IAT Act to have regard to the public interest test under section 5 of the
Act. A note directs the reader to the public interest test in section 5 for the
purposes of these decisions.
[Schedule 4, item 13, subsections 55(1) and 55(1A) of the IAT Act]
49
Insurance
2.33 To clarify when a decision is a 'conditional go-ahead decision', paragraphs
55(3)(c) and (d) of the IAT Act are amended to make clear that:
• the reference to a 'decision subject to conditions' in paragraph 55(3)(c)
of the Act is a decision which is a 'conditional go-ahead decision';
• the reference to 'the conditions' in paragraph 55(3)(d) of the Act is a
reference to the conditions to which the 'conditional go-ahead
decision' is subject.
[Schedule 4, item 14, paragraphs 55(3)(c) and (d) of the IAT Act]
2.34 The definition of 'conditional go-ahead decision' in section 49 of the IAT Act
is amended to specify that it means a 'go-ahead decision' that is made under
subsection 55(1A) for the purposes of Part 4 of the Act.
[Schedule 4, item 11, section 49 of the IAT Act]
2.35 The definition of 'go-ahead decision' in section 49 of the IAT Act is also
amended to specify that this type of decision can be made under new
subsection 55(1A) of the Act in addition to new subsection 55(1) of the Act.
[Schedule 4, item 12, section 49 of the IAT Act]
2.36 The amendments to section 55 of the IAT Act apply in relation to a decision
made by the Minister on or after the commencement of item 20 in Schedule 4
to the Bill.
[Schedule 4, item 20]
Additional matters
2.37 Subsection 80(2) of the IAT Act is amended so that in addition to a decision
made by the Commonwealth, a decision made by a Minister under the Act or
the Foreign Acquisitions and Takeovers Act 1975 has effect only for the
purposes of the Act concerned.
[Schedule 4, item 19, subsection 80(2) of the IAT Act]
2.38 A note directs the reader to the public interest test in section 5 for all decisions
in relation to which the Minister must consider whether a matter is contrary to
the public interest in the IAT Act (beyond 'go-ahead decisions', including
'conditional go-ahead decisions', which also include this note, as described
above). This is intended to provide a clear link between the decisions that
require the Minister to consider the public interest test, and the test itself.
[Schedule 4, items 9, 10, 15 and 16, section 43 and 57, subsections 44(1),
44(3), 48(2), 58(1) and 62(2) of the IAT Act]
Part 2 - Forms of notices etc.
2.39 A number of provisions in the IAT Act and Life Insurance Act provide for the
form of a notice or application to be prescribed by regulations. The thematic
review of Insurance Instruments found that the manner and form of a notice or
50
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
application should instead be approved administratively, to reduce complexity
in the legislation and align with modern drafting practices. This also ensures
the manner and form of notices and applications can be updated quickly to
require all relevant information, should circumstances change.
2.40 Schedule 4 to the Bill amends the IAT Act and Life Insurance Act to allow
either the Minister or a regulator to approve the manner and form of a notice or
application, in accordance with the findings of the thematic review.
Insurance Acquisitions and Takeovers Act 1991
2.41 The requirements for giving certain notices under the IAT Act are prescribed in
a specific form in the Insurance Acquisitions and Takeovers (Notices)
Regulations 1992, which are proposed to be repealed when Schedule 4 to the
Bill commences as an outcome of the thematic review. New section 17A of the
IAT Act sets out the general requirements for giving notices to replace the
Insurance Acquisitions and Takeovers (Notices) Regulations 1992.
2.42 The amendments allow the Minister to approve the manner or form for giving
a notice, rather than relying on a prescriptive form in regulations. This allows
existing policy to continue whilst reducing legislative complexity and
implementing the outcomes of the thematic review. As per section 6 of the
Legislation (Exemptions and Other Matters) Regulation 2015, instruments
prescribing or approving a form are not legislative instruments.
[Schedule 4, item 21, subsection 17A(3) of the IAT Act]
2.43 The general requirements for giving notices in new section 17A of the IAT Act
apply to any provision in the Act which refers to giving notice in accordance
with section 17A of the Act.
[Schedule 4, item 21, subsection 17A(1) of the IAT Act]
2.44 A notice is given in accordance with new section 17A of the IAT Act if the
notice:
• is given in the manner approved in writing by the Minister (or if no
manner has been so approved, is given in writing);
• if the Minister has approved, in writing, a form for giving the notice--
is given in the approved form, and includes the information required by
the form and is accompanied by any documents required by the form;
• includes the information (if any) prescribed by the regulations; and
• is accompanied by any documents prescribed by the regulations.
[Schedule 4, item 21, subsections 17A(2) of the IAT Act]
2.45 The approved manner for giving a notice could, for example, include giving
notice electronically. New section 17A specifies that an approved form may be
in the form of a statutory declaration, or a form that requires a matter to be
verified by a statutory declaration. This does not limit the manner or form for
51
Insurance
giving a notice that may be approved.
[Schedule 4, item 21, subsections 17A(4) of the IAT Act]
2.46 Consequential to the amendments described above, the reference to 'the
prescribed form' in paragraph 38(b) of the IAT Act is omitted and replaced
with 'accordance with section 17A'.
[Schedule 4, item 22, paragraph 38(b) of the IAT Act]
2.47 The amendment to section 38 of the IAT Act described above applies to
notices given on or after the commencement of item 23 of Schedule 4 to the
Bill. To allow for flexibility in relation to compliance, a written notice given
during the 2 months starting on the commencement of item 23 of Schedule 4 to
the Bill and in the form that, immediately before that commencement, was
prescribed for the purposes of paragraph 38(b) of the IAT Act, is taken to meet
the requirements of new section 17A of the Act. This means that the form
prescribed in the Insurance Acquisitions and Takeovers (Notices) Regulations
1992 for the purpose of paragraph 38(b) can be used for 2 months following
commencement.
[Schedule 4, item 23]
2.48 The references to 'the prescribed form' in paragraphs 52(b) and (c) of the IAT
Act are also omitted and replaced with 'accordance with section 17A'.
[Schedule 4, item 24, paragraphs 52(b) and (c) of the IAT Act]
2.49 The amendments to section 52 of the IAT Act described above apply to notices
given on or after the commencement of item 25 of Schedule 4 to the Bill. To
allow for flexibility in relation to compliance, a written notice given during the
2 months starting on the commencement of this amendment and in the form
that, immediately before that commencement, was prescribed for the purposes
of paragraph 52(b) or (c) of the IAT Act is taken to meet the requirements of
section 17A of that Act. This means that the form prescribed in the Insurance
Acquisitions and Takeovers (Notices) Regulations 1992 for the purpose of
paragraph 52(b) or (c) can be used for 2 months following commencement
[Schedule 4, item 25]
Life Insurance Act 1995
2.50 The requirements for giving certain notices and making applications under the
Life Insurance Act are detailed in the 1995 Regulations. In accordance with the
thematic review, these provisions are not proposed to be remade. New section
8A of the Life Insurance Act sets out the general requirements for the manner
and form of making applications or giving notices to replace the requirements
in the 1995 Regulations.
[Schedule 4, item 26, subsection 8A(1) of the Life Insurance Act ]
2.51 The amendments allow APRA to approve the manner and form of an
application or notice, rather than relying on a prescriptive form. This allows
existing policy to continue whilst reducing legislative complexity and
52
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
increasing administrative flexibility. As per section 6 of the Legislation
(Exemptions and Other Matters) Regulation 2015, instruments prescribing or
approving a form are not legislative instruments.
[Schedule 4, item 26, subsection 8A(3) of the Life Insurance Act]
2.52 The general requirements for making applications and giving notices in new
section 8A of the Life Insurance Act apply to any provision in the Act which
refers to giving notice or making an application in accordance with section 8A
of the Act.
[Schedule 4, item 26, subsection 8A(1) of the Life Insurance Act]
2.53 An application is made, or a notice is given, in accordance with section 8A of
the Life Insurance Act if the application or notice:
• is given in the manner approved in writing by APRA (or if no manner
is so approved, is given in writing);
• if APRA has approved, in writing, a form for making the application or
giving the notice--is given in the approved form, and includes the
information required by the form and is accompanied by any
documents required by the form;
• includes the information (if any) prescribed by the regulations; and
• is accompanied by any documents prescribed by the regulations.
[Schedule 4, item 26, subsections 8A(2) of the Life Insurance Act]
2.54 The approved manner for giving a notice or application could, for example,
include the ability to give notice or make an application electronically. New
section 8A specifies that an approved form may be in the form of a statutory
declaration, or a form that requires a matter to be verified by a statutory
declaration. This does not limit the manner or form of a notice or application
that may be approved.
[Schedule 4, item 26, subsections 8A(4) of the Life Insurance Act]
2.55 The requirements for an application for registration to be in the form approved
by APRA and include information requested by APRA in paragraphs 20(2)(a)
and (b) of the Life Insurance Act are omitted and replaced with new paragraph
20(2)(a), which provides that applications for registration must be made in
accordance with the new general requirements for making applications
outlined in new section 8A of the Act.
[Schedule 4, item 27, paragraph 20(2)(a) and (b) of the Life Insurance Act]
2.56 The amendments to section 20 of the Life Insurance Act described above apply
to applications made on or after the commencement of item 28 of Schedule 4
to the Bill. To allow for flexibility in relation to compliance, an application
made during the 2 months starting on the commencement of this item and in
the form that, immediately before commencement, was approved by APRA
and accompanied by any information requested by APRA for the purposes of
paragraph 20(2)(a) of the Life Insurance Act prior to the amendments, is taken
53
Insurance
to meet the requirements of new section 8A of the Act.
[Schedule 4, item 28]
2.57 The reference to 'written' in subsection 33(1) of the Life Insurance Act is
omitted. Further, the reference to 'the regulations' in subsection 33(2) of the
Life Insurance Act is omitted and replaced with 'section 8A'. These
amendments update the legislation to provide that the general requirements for
giving notice to APRA when a fund is established is in accordance with new
section 8A of the Life Insurance Act.
[Schedule 4, items 29 and 30, section 33 of the Life Insurance Act]
2.58 The amendments to section 33 of the Life Insurance Act described above apply
to notices given on or after the commencement of item 31 of Schedule 4 to the
Bill. To allow for flexibility in relation to compliance, a written notice given
during the 2 months starting on the commencement of this amendment and
made in accordance with the regulations in force immediately before that
commencement, and that is made for the purposes of subsection 33(2) of the
Life Insurance Act prior to the amendments, is taken to meet the requirements
of new section 8A of the Act. This means that the requirements for a notice
prescribed in regulation 4.00 of the 1995 Regulations can be used for 2 months
following commencement
[Schedule 4, item 31]
2.59 Section 76A of the Life Insurance Act requires a life company to keep
company records that it is required to keep under sections 75 and 76 of the Life
Insurance Act or section 286 of the Corporations Act in Australia, or in another
country on APRAs approval. This is subject to an offence, with a maximum
penalty of 200 penalty units. Subsections 76A(3) to (5) of the Life Insurance
Act require a life company to notify APRA of the address where these records
are kept, including any new address, within 28 days.
2.60 Subsections 76A(3) to (5) of the Life Insurance Act are repealed and replaced
to clarify the way a life company must notify APRA of the address where its
company records are kept.
2.61 If a life company is registered under the Life Insurance Act, it must notify
APRA of where company records are kept in accordance with the requirements
under section 8A of the Act. The life company must notify APRA within 28
days after the day on which it becomes registered.
[Schedule 4, item 32, subsections 76A(3) and (3A) of the Life Insurance Act]
2.62 Where a life company has given APRA notice of the address where its records
are kept and the company moves its financial records to a new address, the
company must notify APRA of this in accordance with the requirements for
giving notice under new section 8A of the Life Insurance Act and within 28
days after the date on which the records were moved to the new address. This
requirement applies to a life company that is registered under the Life
Insurance Act.
[Schedule 4, item 32, subsections 76A(4) and (5) of the Life Insurance Act]
54
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
2.63 New subsection 76A(7) of the Life Insurance Act provides that a life company
commits an offence if it fails to notify APRA of the address of where the
company's records are kept as outlined above. The maximum penalty imposed
for such a contravention is 100 penalty units.
[Schedule 4, item 33, subsection 76A(7) of the Life Insurance Act]
2.64 The amendments to subsection 76A(7) of the Life Insurance Act described
above apply to a company that is registered under the Act on or after the
commencement of item 34 of Schedule 4 to the Bill. The amendments also
apply to a company that is registered within 28 days before the commencement
of the amendments, where the company did not notify APRA, before that
commencement, of the address where the records are kept.
[Schedule 4, item 34]
2.65 To allow for flexibility in relation to compliance:
• a written notification given during the 2 months after the
commencement of these amendments in the approved form for the
purposes of subsection 76A(3) or (4) of the Life Insurance Act prior to
the amendments, is taken to meet the notice requirements under new
section 8A of the Act; and
• the amendments to subsections 76A(4) and (5) of the Life Insurance
Act apply to a company moving its records to a new address on or after
the commencement of these amendments. The amendments also apply
to a company moving its financial records to a new address within 28
days before the commencement of these amendments, if the company
did not notify APRA, before that date, of the new address where the
records are kept.
[Schedule 4, item 34]
2.66 The reference to 'written notice' in subsection 179C(1) of the Life Insurance
Act is substituted with 'notice', in accordance with new section 8A of the Act.
This amendment updates this provision to ensure it aligns with new approved
manner and form for giving notices under new section 8A of the Life Insurance
Act, and reflects the greater administrative flexibility created by the
amendments.
[Schedule 4, item 35, subsection 179C(1) of the Life Insurance Act]
2.67 The above amendment to subsection 179C(1) of the Life Insurance Act applies
to a notice given on or after the commencement of item 38 of Schedule 4 to the
Bill.
[Schedule 4, item 38]
2.68 To allow for flexibility in relation to compliance, a written notification given
during the 2 months after the commencement of these amendments, that is in
the approved form for the purposes of subsection 179C(1) of the Life Insurance
Act prior to the amendments, is taken to meet the notice requirements under
new section 8A of Act.
[Schedule 4, item 38]
55
Insurance
2.69 Subsection 179C(2) of the Life Insurance Act provides that where there is an
approved form for a notice for the purposes of section 179C, the notice must be
given in the approved form. This provision is repealed as it is redundant due to
new section 8A of the Life Insurance Act which provides the new approved
manner and form for giving notices for the purposes of section 179C of the
Act.
[Schedule 4, item 36, subsection 179C(2) of the Life Insurance Act]
2.70 Subsection 179C(6) of the Life Insurance Act provides that a person (other
than APRA) commits an offence where a person makes an application or
appointment without APRA's consent and does not provide APRA with notice.
Paragraph 179C(6)(c) of the Life Insurance Act is repealed and replaced to
update the notice requirements. A person commits an offence for the purposes
of subsection 179C(6) of the Life Insurance Act if the person does not give
APRA notice at least one week before making the application or appointment,
and in accordance with new section 8A of the Act.
[Schedule 4, item 37, paragraph 179C(6)(c) of the Life Insurance Act]
2.71 The amendment to paragraph 179C(6)(c) of the Life Insurance Act applies to a
notice given on or after the commencement of item 38 of Schedule 4 to the
Bill.
[Schedule 4, item 38]
2.72 To allow for flexibility in relation to compliance, a written notification given
during the 2 months after the commencement of these amendments, that is in
the approved form for the purposes of subsection 179C(6) of the Life Insurance
Act prior to the amendments, is taken to meet the notice requirements under
new section 8A of Act.
[Schedule 4, item 38]
2.73 Section 197 of the Life Insurance Act requires documents to be lodged with
APRA in accordance with the regulations in the case of the transfer or
amalgamation of a life insurance business.
2.74 Section 197 of the Life Insurance Act is amended to allow APRA to approve a
manner for giving the documents (rather than this being prescribed in
regulations). Documents are given in accordance with new subsection 197(3)
of the Life Insurance Act:
• if the documents are given in the approved manner (in circumstances
where APRA has approved a manner for giving the documents under
new subsection 197(4) of the Act); or
• if the documents are given in any other manner (in circumstances
where APRA has not approved a manner for giving the documents).
[Schedule 4, items 40 and 42, subsections 197(1), (3) and (4) of the Life
Insurance Act]
2.75 A number of consequential amendments are made to implement the
amendments to section 197 of the Life Insurance Act described above.
56
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
[Schedule 4, items 39 and 41, heading to section 197 and subsection 197(2) of
the Life Insurance Act]
2.76 The amendments to section 197 of the Life Insurance Act apply in relation to a
transfer or amalgamation of a life insurance business that occurs on or after the
commencement of item 43 of Schedule 4 to the Bill.
[Schedule 4, item 43]
2.77 Paragraph 200(2)(a) of the Life Insurance Act is amended to provide that an
assignment of policy must be by memorandum of transfer in accordance with
the form requirements outlined in new subsection 200(2A) of the Act, rather
than in the form prescribed by regulations.
[Schedule 4, item 44, paragraph 200(2)(a) Life Insurance Act]
2.78 The form of a memorandum of transfer is prescribed by regulation 10.01 of the
1995 Regulations; this provision is proposed to be repealed when Schedule 4
to the Bill commences and is not proposed to be remade. Instead, new
subsection 200(2A) of the Life Insurance Act requires ASIC to approve the
manner and the form of the memorandum of transfer, which increases
flexibility and simplifies the legislation. New subsection 200(2A) of the Life
Insurance Act provides that a memorandum of transfer referred to in paragraph
200(2)(a) of the Act is in accordance with subsection 200(2A) of the Act if it is
in the form approved by ASIC under subsection 200(2B) of the Act, and any
other requirements set out in regulations which have been made for the
purposes of paragraph 200(2A)(b) of the Act in relation to a memorandum of
transfer are satisfied.
[Schedule 4, item 45, subsection 200(2A) and (2B) of the Life Insurance Act]
2.79 The amendments to section 200 of the Life Insurance Act in relation to a
memorandum registered under paragraph 200(2)(d) of the Act apply on or after
the commencement of item 46 of Schedule 4 to the Bill. However, if a written
memorandum of transfer is registered under paragraph 200(2)(d) of the Life
Insurance Act within two months of the commencement of the amendments
and is in the form that was prescribed by paragraph 200(2)(a) of the Act before
the amendments commenced, then the memorandum is taken to be in
accordance with new subsection 200(2A) of the Act.
[Schedule 4, item 46]
2.80 Subsection 203(1) of the Life Insurance Act requires a person who previously
had a policy vested in them as trustee but who is no longer trustee to provide
the life company with notice of that fact.
2.81 Subsection 203(1) of the Life Insurance Act is amended to provide that a
person giving a life company notice for the purposes of section 203 of the Act
must give that notice in accordance with new subsection 203(2) of the Act.
[Schedule 4, item 47, subsection 203(1) of the Life Insurance Act]
2.82 Subsections 203(2) and (3) of the Life Insurance Act are repealed and replaced
to provide that ASIC may approve the manner and form of the notice given for
the purposes of subsection 203(1) of the Act. This replaces the form of this
57
Insurance
notice prescribed in the 1995 Regulations, which are proposed to be repealed
when Schedule 4 to the Bill commences.
2.83 A notice is given in accordance with subsection 203(1) of the Life Insurance
Act if the notice:
• is given in the manner approved in writing by ASIC (or if no manner is
so approved, is given in writing);
• if ASIC has approved, in writing, a form giving the notice--is given in
the approved form, and includes the information required by the form
and is accompanied by any documents required by the form;
• includes the information (if any) prescribed by the regulations; and
• is accompanied by any documents prescribed by the regulations.
[Schedule 4, item 48, subsections 203(2) and (3) of the Life Insurance Act]
2.84 The approved manner for giving a notice could, for example, include the
ability to give notice electronically. New subsection 48(3A) of the Life
Insurance Act provides that an approved form may be in the form of a statutory
declaration, or a form that requires a matter to be verified by a statutory
declaration. This does not limit the manner and form that may be approved.
[Schedule 4, item 48, subsections 203(3A) of the Life Insurance Act]
2.85 The amendments to section 203 of the Life Insurance Act made by Part 2 to
Schedule 4 to the Bill apply in relation to a notice given on or after the
commencement of item 49 of Schedule 4 to the Bill. However, if a written
notice is given for the purposes of subsection 203(1) of the Life Insurance Act
within two months of the commencement of the amendments, and it is in
accordance with the regulations made for the purposes of subsection 203(2) of
the Act which were in force immediately before the commencement of the
amendments, then that written notice is taken to be in accordance with
subsection 203(2) of the Act as amended.
[Schedule 4, item 49]
2.86 Subsection 216(1) of the Life Insurance Act requires a life company to give
ASIC, within 3 months after the end of a calendar year, a statement in the form
prescribed by regulations of all unclaimed money, other than unclaimed money
held in RSAs as at the end of that year. Subsection 216(4) provides that if,
between the end of the calendar year and the date on which the statement is
given to ASIC, the company has paid any money to persons to whom the
amounts were due by the company, the company must give ASIC a statement
in the form prescribed by the regulations relating to the amounts so paid.
2.87 A number of amendments are made to section 216 to impose new manner and
form requirements for these statements.
2.88 Subsections 216(1) and (4) of the Life Insurance Act are amended to provide
that the required form of a statement for the purposes of these subsections is
58
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
prescribed in new subsection 6A, where previously the form was prescribed by
the regulations. This amendment increases flexibility and simplifies the
legislation.
[Schedule 4, item 50, subsections 216(1) and (4) of the Life Insurance Act]
2.89 New subsection 216(6A) of the Life Insurance Act provides that a statement
given by a life company to ASIC under subsection 216(1) or (4) of the Act is in
accordance with the subsections if it is given in writing, is in a form approved
by ASIC, includes the information required by the form and is accompanied by
any required documents. It must also be accompanied by any information or
documents required by regulations made for the purposes of subsection
216(6A) of the Act.
[Schedule 4, item 51, subsections 216(6A) and (6B) of the Life Insurance
Act]
2.90 ASIC may, in writing, approve a manner or form for giving the statement. It
may take the form of a statutory declaration, or a form that requires a matter to
be verified by a statutory declaration. This does not limit the manner and form
that may be approved.
[Schedule 4, item 51, subsections 216(6C) of the Life Insurance Act]
2.91 The amendments to section 216 of the Life Insurance Act made by Part 2 to
Schedule 4 apply in relation to a statement given on or after the
commencement of item 52 to Schedule 4 to the Bill. However, if a written
statement is given under subsection 216(1) or (4) of the Life Insurance Act
within two months of the commencement of the amendments, and is in in a
form which that was, immediately before the commencement of the
amendments, prescribed for the purposes of those subsections, then that written
statement is taken to be in accordance with subsection 216(6A) of the Act as
amended.
[Schedule 4, item 52]
2.92 The definition of 'approved form' in the Schedule to the Life Insurance Act is
repealed as it is redundant. The definition provided that an approved form was
a form which was approved in writing by APRA.
[Schedule 4, item 53, Schedule to the Life Insurance Act]
Part 3 - Friendly Societies
Life Insurance Act 1995
2.93 Friendly societies are frequently prudentially regulated as life companies;
however, they operate with certain structural differences compared to other life
companies. As such, certain provisions of the Life Insurance Act were not
properly adapted for the regulation of friendly societies, and the application of
the Act in relation to these entities is modified in Schedule 5 of the 1995
Regulations. However, as this has modified the Life Insurance Act and has
remained relatively stable, the thematic review of Insurance Instruments found
59
Insurance
that it would be appropriate for the modifications to be contained in primary
legislation. Schedule 4 to the Bill implements the findings of the review by
incorporating the modifications that are in the 1995 Regulations directly into
the Life Insurance Act.
[Schedule 4, item 54, section 16A(4)(c) to (d) of the Life Insurance Act]
2.94 Section 35 of the Life Insurance Act outlines the requirements for policy
documents. Friendly societies do not issue a policy document to members as
the benefit fund product (or policy). That is, a common set of benefit fund rules
forms the basis of the contract between all members of that fund and the
friendly society. Therefore, the Life Insurance Act concept of a policy
document is not relevant to friendly societies. As such the requirements in
subsections 35(1), (3), (4) and (5) of the Life Insurance Act as well as those in
subsections 36(b), 229(2) and Division 7 of Part 10 of that Act do not apply to
friendly societies.
[Schedule 4, items 56 and 61, sections 16HA, 16 HB, 16ZAAC and 16ZAAF
of the Life Insurance Act]
2.95 As references to policy documents are not relevant to friendly societies the
following provisions are modified when applying to friendly societies:
• subsection 35(2) of the Life Insurance Act ̶ so that approved benefit
fund rules do not make provisions that are inconsistent with section 31
of the Act;
• subsection 198(1) and paragraph 201(1)(b) of the Life Insurance Act ̶
so that references which relate to policy documents are omitted;
• subsections 213(2) and 213(3) of the Life Insurance Act ̶ so that the
requirement that the policy be endorsed is changed to a requirement
that the approved benefit fund rules be followed when registering the
applicant.
[Schedule 4, items 56, 60 and 61, sections 16HA, 16ZAB, 16ZAAA
and 16ZAAB of the Life Insurance Act]
2.96 Section 15 of the Life Insurance Act establishes that all policies issued by life
companies are either participating or non-participating benefits. A
non-participating benefit is a benefit that does not include any entitlement to
share in any distribution of profit and a participating benefit is any other
benefit. These concepts apply to the requirements in Divisions 5 and 6 of Part
4 of the Life Insurance Act.
2.97 However, in the context of benefit funds provided by friendly societies,
products are classified as either defined contribution or defined benefit funds.
In defined contribution funds, the benefit is a function of the contributions
made by the member and the investment performance of the funds (e.g.
declared bonuses). These funds could not be classed as participating in terms
of section 15 of the Life Insurance Act because the society may exercise
discretion as to what portion of the generated surplus is to be distributed to
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
members and what portion is to remain unallocated. In defined benefit funds,
the amount of the benefit is specified in the benefit fund rules. As such,
friendly societies require more flexibility to decide how much of the surplus is
distributed in any period. In particular, it is not necessary for the friendly
society to distribute all surplus within the period. Therefore, the provisions in
Divisions 5 and 6 of Part 4 of the Life Insurance Act are modified so as not to
apply to friendly societies.
[Schedule 4, items 57 and 62, section 16KA and Part 1 of Schedule 2 to the
Life Insurance Act]
2.98 These provisions are replaced by requirements that are more adapted to the
circumstances of friendly societies. The requirements in section 30 of the Life
Insurance Act are modified so as to enable a society to pay, apply or allocate
all or part of the surplus to the members of the approved benefit fund, or
transfer all or part of the surplus to another approved benefit fund or to the
management fund if the rules of the society so provide. The appointed actuary
must advise the friendly society that there is a surplus before the distribution
can take place. The distribution must comply with any applicable prudential
standard.
[Schedule 4, items 55 and 62, section 16GA and Part 1 of Schedule 2 to the
Life Insurance Act]
2.99 Sections 226 and 227 of the Life Insurance Act require a life company to
maintain a register of policies for each jurisdiction in which it carries on life
insurance business and set out the requirements for the register. In comparison,
friendly societies maintain registers of benefit members of each benefit fund.
Therefore, the requirements in section 226 of the Life Insurance Act are
modified for friendly societies to require that such registers are kept in parts for
each State or Territory and include individuals' membership details. The
requirements in section 227 of the Life Insurance Act are modified so as not to
apply to friendly societies.
[Schedule 4, item 61, sections 16ZAAD and 16ZAAE of the Life Insurance
Act]
2.100 Section 242 of the Life Insurance Act provides for postal voting by members
of a mutual life company, which includes friendly societies. However, other
requirements in the Life Insurance Act and the Corporations Act serve to
involve members in the governance of friendly societies. As there are other
processes that achieve a similar outcome to section 242 of the Life Insurance
Act, section 242 of the Act is modified so as not to apply to friendly societies.
[Schedule 4, item 61, section 16ZAAG of the Life Insurance Act]
2.101 The Life Insurance Act establishes the requirements for a life company's
financial records to be divided into various classes. As friendly societies
generally adopt a single product benefit fund structure it is not possible to
further divide the financial records of each benefit fund in the same way. For
this reason, the requirements in sections 75 and 76 of the Life Insurance Act
are modified when applying to friendly societies so as to simply require
records that properly record the affairs and transactions of the society in
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respect of each fund.
[Schedule 4, items 62 and 58, Part 2 of Schedule 2 to the Life Insurance Act]
2.102 The addition of new Divisions and a new Schedule to the Life Insurance Act
results in a degree of renumbering and the renaming of the existing Schedule to
Schedule 1.
[Schedule 4, items 59, 63, 64, 65, 66 and 67, note to subsection 7(2), 16F(3),
and 179AQ(1), subsection 8(1) and Division 6 of Part 2A and heading to
Schedule 1 to the Life Insurance Act]
Part 4 - Statutory funds of life companies
Life Insurance Act 1995
2.103 Part 4 of the 1995 Regulations provides for the circumstances in which a life
company may give a charge over an asset of a statutory fund including a
charge over the assets for the purposes of engaging in derivatives transactions.
Part 4 of the 1995 Regulations also provides for the circumstances in which a
life company is prohibited from investing assets of a statutory fund in a
subsidiary. As part of the thematic review, these provisions of the 1995
Regulations (regulation 4.00 (Notice of establishment of statutory fund),
regulation 4.00A (Charges over the assets of statutory funds: derivative
contracts), regulation 4.00B (Charges over the assets of approved benefit
funds) and regulation 4.01A (Prohibited investments)) were considered to be
more appropriate for inclusion in the Life Insurance Act.
2.104 The terms of these provisions of the 1995 Regulations are incorporated directly
into the Life Insurance Act while retaining the same regulatory effect in
relation to a charge over an asset of a statutory fund. Any update to language
and structure to reflect current drafting practice is not intended to change the
substantive effect of the provisions. Similarly, it is intended that these
provisions continue to operate in the same manner as equivalent provisions of
the Superannuation Industry (Supervision) Regulations 1994.
2.105 Subsection 33(1) of the Life Insurance Act provides that whenever a life
company establishes a statutory fund otherwise than under an approval given
under section 52 of the Act, the company must give APRA written notice of
certain matters in relation to the fund. Amendments described in paragraph
1.55 remove the reference to 'written' and ensure that the notice must be given
in accordance with new section 8A. Subregulation 4.00(2) of the 1995
Regulations specify that notice of the establishment of a statutory fund must be
given in writing within 14 days of the establishment of the fund.
2.106 New subsection 33(3) of the Life Insurance Act is proposed to replace
subregulation 4.22(2) of the 1995 Regulations, by it providing that this written
notice must be given on or before the time prescribed by the regulations or
where there is no time period prescribed, at the end of 14 days after the
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
establishment of the fund.
[Schedule 4, item 28, 30, 116, subsection 33(1), 33(2) and 33(3) of the Life
Insurance Act]
2.107 This replaces the requirement set out in subsection 4.00(2) of the 1995
Regulations, which is not proposed to be remade.
2.108 The notice requirements outlined in new subsection 33(3) of the Life Insurance
Act applies to statutory funds established on or after the commencement of this
item.
[Schedule 4, item 117]
2.109 Section 38 of the Life Insurance Act provides that a life company must not
apply, or deal with, assets of a statutory fund, whether directly or indirectly,
except for limited purposes prescribed by the Life Insurance Act. New
paragraph 38(3)(aa) of the Life Insurance Act provides a new exception to the
prohibition on a life company mortgaging or charging any of the assets of a
statutory fund. A life company may do so if it is in accordance with new
section 38A or 38B of the Life Insurance Act.
[Schedule 4, item 68, paragraph 38(3)(aa) of the Life Insurance Act]
2.110 New section 38A of the Life Insurance Act deals with circumstances in which
life companies may give a charge over the assets of a statutory fund for the
purposes of engaging in derivatives transactions. A life company may give a
charge over the assets of a statutory fund of the purposes of engaging in such
transactions subject to the following conditions:
• the charge relates to an investment; and
• the life company has in place a risk management statement setting out:
- policies for the use of derivatives (including analysis of risks);
- controls on the use of derivatives and compliance processes to
ensure that they are effective; and
- that the investment to which the charge relates is made in
accordance with that risk management statement.
[Schedule 4, item 69, subsection 38A(1) of the Life Insurance Act]
2.111 The charge must also comply with subsection 38A(2), (3) or (4) of the Life
Insurance Act in relation to:
• a derivative to which the life company is a party;
• a derivative to which a person (other than the life company) is a party
on behalf of, on the instructions of, on account of, or for the benefit of,
the life company; or
• in the case of subsection (3)--a derivative that relates to a derivative to
which either of the above apply.
[Schedule 4, item 69, paragraph 38A(1)(a) of the Life Insurance Act]
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Insurance
Charges given to comply with rules and laws
2.112 New subsection 38A(2) of the Life Insurance Act sets out the circumstance in
which the charge is given for the purposes of complying with a requirement to
secure the performance of an obligation in relation to the derivatives contract
under either:
• rules governing the operation of the approved body; or
• a law of the Commonwealth, a State, a Territory or a foreign country
(including a part of a foreign country) that applies to dealings in the
derivatives contract.
2.113 The reference to 'law' should be interpreted broadly to include legislation,
regulations, legislative instruments, delegated legislation, prudential standards,
capital requirements and any other requirements imposed by domestic or
foreign financial market regulators and central banks (such as APRA, ASIC
and the Reserve Bank of Australia and similar foreign regulators). This
subsection is proposed to replace regulation 4.00A(1A) of the 1995
Regulations.
[Schedule 4, item 69, subsection 38A(2) of the Life Insurance Act]
2.114 The approved bodies are proposed to be prescribed in regulations replacing the
1995 Regulations, for the purposes of the definition of 'approved body' in
Schedule 1 to the Life Insurance Act. This is so that the list can be easily
updated and maintained in the event that the name of a body changes, or it is
considered necessary to add or remove an approved body.
[Schedule 4, item 77, Schedule 1 to the Life Insurance Act]
Charges given to agents etc
2.115 New subsection 38A(3) of the Life Insurance Act is proposed to replace
subregulation 4.00A(1B) of the 1995 Regulations. A charge will satisfy
subsection 38A(3) of the Life Insurance Act in relation to a derivative if the
charge is given in favour of a person who is a party to the derivative on behalf
of, on the instructions of, on account of, or for the benefit of, the life company
or enters into the derivative on behalf of, on the instructions of, on account of,
or for the benefit of, the life company. This wording is intended to reflect the
various ways in which an agent may act for a person. The charge must be given
for the purposes of securing the performance of an obligation in relation to the
derivative. Further, the agent must:
• be obliged to keep the property separate from the property of the agent
under rules governing the operation of the approved body or a law of
the Commonwealth, a State, a Territory or a foreign country (including
a part of a foreign country) that applies to dealings in the derivatives
contract; and
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
• be obliged (or but for a netting-off, be obliged) to transfer property to
another entity in relation to the derivative if particular circumstances
arise.
[Schedule 4, item 69, subsection 38A(3) of the Life Insurance Act]
Charges over financial property
2.116 A charge will satisfy new subsection 38A(4) of the Life Insurance Act if:
• the asset over which the charge is given is financial property;
• the obligations secured by the financial property are any of the
following:
- an obligation of the life company that relates to a derivatives
contract;
- an obligation of the life company to pay interest on an
obligation of the life company that relates to a derivatives
contract; or
- an obligation of the life company to pay costs and expenses
incurred in connection with enforcing a charge given in respect
of either an obligation of the life company that relates to a
derivatives contract or obligation to pay interest on such an
obligation;
• and, either:
- the financial property is transferred or otherwise dealt with so
as to be in the possession or under the control of the secured
party or another person (who is not the life company), who
acknowledges in writing that they have that possession or
control of the financial property on behalf of the secured party;
or
- the financial property is intermediated financial property in
relation to an account and there is an agreement in force
between the intermediary (who is not the life company) and
one or more other persons, one of whom is the secured person
or the life company where the agreement has the effect that:
o the person in whose name the account is maintained is
not able to deal with the property;
o the intermediary must not comply with instructions of
the life company in relation to the property without the
consent of the secured person or someone who has
agreed to act on the instructions of the secured person;
or
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Insurance
o the intermediary must comply (or must comply in a
specified circumstance or circumstances) with the
instructions of the secured person in relation to the
intermediated financial property without the consent of
the life company or anyone who has agreed to act on the
instructions of the life company.
2.117 The secured person is the person whose rights are "secured" as mentioned in
paragraph 38A(4)(b).
2.118 New subsection 38A(4) of the Life Insurance Act remakes subregulations
4.00A(1C) and (IF) of the 1995 Regulations.
[Schedule 4, item 69, subsections 38A (4) of the Life Insurance Act]
2.119 New subsections 38A(5), (6), (7) and (8) of the Life Insurance Act set out a
range of circumstances in respect of which the possession and control test
would, or would not, be satisfied. These subsections are proposed to replace
subregulations 4.00A(1D), (1E) and (1G) of the 1995 Regulations. Subsections
38A(6) and (7) of the Life Insurance Act do not limit paragraph 38A(4)(c) of
the Act. The fact that a life company retains certain rights does not stop
paragraph 38A(4)(c) from applying. This includes, for example, a right to
reciev and withdraw income in relation to the financial property and a right to
receive notices in relation to the financial property.
[Schedule 4, item 69, subsections 38A (5), (6),(7), (8) and (9) of the Life
Insurance Act]
2.120 This provision uses similar concepts and safeguards to those used in the
Payment Systems and Netting Act 1998 in respect of facilitating the
enforcement of security in respect of financial property given in respect of
certain financial market transactions. It is intended that the concepts of
possession and control are applied in a similar way to the way in which those
concepts are applied in respect of the Payment Systems and Netting Act 1998.
More information about how these subsections work is provided in the
Explanatory Memorandum to the Financial System Legislation Amendment
(Resilience and Collateral Protection) Bill 2016.
2.121 Subsections 38A(2), (3) and (4) of the Life Insurance Act are not mutually
exclusive, and in some circumstances more than one may be satisfied by a
particular arrangement. For example, this may occur where a charge is given
by a life company over financial property in order to comply with the
requirements of an approved body.
2.122 New section 38B of the Life Insurance Act provides that for the purposes of
new paragraph 38(3)(aa) of the Act, a friendly society may mortgage or charge
an asset of an approved benefit fund for the purposes of advantaging the
approved benefit fund if this is in accordance with the benefit fund rules of the
friendly society. This is subject to subsection 38(8) of the Life Insurance Act
which provides that section 38 of the Act does not authorise a friendly society
to mortgage or charge assets of an approved benefit fund otherwise than as
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
provided by the approved benefit fund rules. New section 38B of the Life
Insurance Act is proposed to replace regulation 4.00B of the 1995 Regulations.
[Schedule 4, item 69, section 38B of the Life Insurance Act]
2.123 Subsection 40(1) of the Life Insurance Act is amended to provide that, subject
to various conditions, a life company may mortgage or charge an asset of a
statutory fund for purposes other than those mentioned in paragraphs 38(3)(a),
(aa) or (c) of the Act, where previously the provision mentioned only
paragraphs 38(3)(a) and (c) of the Act.
[Schedule 4, item 70, subsection 40(1) of the Life Insurance Act]
2.124 Subsection 43(3) of the Life Insurance Act is amended by adding new
paragraph 43(3)(c), which provides that a life company must not contravene
new subsection 43A(1) or (4) of the Act. The operation of these subsections is
explained below.
[Schedule 4, item 71, paragraph 43(3(c)) of the Life Insurance Act]
2.125 Subsections 43(4) and (5) of the Life Insurance Act are both amended to
include references to new paragraph 43(3)(ca), alongside the existing
references to paragraphs 43(3)(c) and (d) of the Act in each subsection.
[Schedule 4, item 72, subsections 43(4) and (5) of the Life Insurance Act]
2.126 New section 43A of the Life Insurance Act prescribes the circumstances in
which an investment, or the retention of an investment, of assets of a statutory
fund in a subsidiary of the life company is prohibited.
2.127 It prohibits any investment in a subsidiary of the life company where the
statutory funds of the company (considered in aggregate) do not hold the
majority interest in the subsidiary.
2.128 The purpose of the provision is to ensure the 'control' of the asset being
included as an asset of the statutory fund is, in fact, held by the statutory fund.
Where the 'control' of the subsidiary is effectively held by the shareholders
funds (that is, the assets of the company other than assets of a statutory fund) -
then the instrument is prohibited as an investment of the statutory fund.
2.129 Further, to facilitate that same purpose, the provision prevents reinvestment of
the assets of the subsidiary, either directly or indirectly, in another related
(non-subsidiary) company.
2.130 The test of majority interest for the purpose of this section is measured relative
to the total interest of the life company in the subsidiary. In other words, the
interest of the life company in the subsidiary to the extent it is held in the
shareholders' funds must exceed the interest of the life company in the
subsidiary to the extent it is held in the statutory funds.
2.131 Subsection 43A(2) of the Life Insurance Act gives APRA discretion to
determine whether an investment by a life insurer that has a branch in Australia
is consistent with the intent of the legislation.
2.132 In line with current drafting practice, an alternative text has been included for
images in the formula in subsection 43A(1) of the Life Insurance Act so the
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Insurance
content of the images is accessible to anyone who relies on screen reading
software to read the legislation. This alternative text is for assistance in
readability only and does not form part of the Act because of the operation of
subsection 13(3) of the AIA.
2.133 This prohibition is proposed to replace regulation 4.01A of the 1995
Regulations.
[Schedule 4, item 73, section 43A of the Life Insurance Act]
2.134 A transitional provision is included to ensure that an approval that was given
under sub-subparagraph 4.01A(a)(ii)(B) of the 1995 Regulations and was in
force immediately before the commencement of item 74 of Schedule 4 to the
Bill has the same effect from that commencement as if it had been given under
new subsection 43A(2) of the Life Insurance Act as amended.
[Schedule 4, item 74]
2.135 The definition of 'reviewable decision' in the Life Insurance Act is amended to
include a refusal to give an approval under new subsection 43A(2), and also a
decision that is made under the regulations, and is prescribed by the regulations
for the purposes of the subparagraph.
[Schedule 4, items 75 and 76, subsection 236(1) (after paragraph (hc) and at
the end of the definition of 'reviewable decision' of the Life Insurance Act)]
Part 5 - References to Treasurer
Insurance Act 1973
2.136 References to the 'Treasurer' in the Insurance Act are omitted and replaced
with references to the 'Minister'. These changes accord with current drafting
practices to allow for greater flexibility in administering provisions of the Act.
References to Ministers in Acts in dealt with by section 19 of the AIA.
[Schedule 4, items 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88 and 89, section
62ZOZA (heading), subsection 3(1)(paragraph (c) of the definition of
'securities exchange'), 3(2), 8(3), 62ZOZA(1) (heading), 62ZOZA(1),
62ZOZA(2), 106(3) (heading), 106(3), 106(4) (heading), 106(4), 106(5) and
106(5) of the Insurance Act]
Insurance Contracts Act 1984
2.137 A reference to the 'Treasurer' in the Insurance Contracts Act 1984 is omitted
and replaced with a reference to the 'Minister'. This change accords with
current drafting practices to allow for greater flexibility in administering
provisions of the Act. References to Ministers in Acts in dealt with by section
19 of the AIA.
[Schedule 4, item 90, section 11A of the Insurance Contracts Act 1984]
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Life Insurance Act 1995
2.138 References to the 'Treasurer' or 'Treasurer's' in the Life Insurance Act are
omitted and replaced with references to the 'Minister' or 'Minister's', as
required. These changes accord with current drafting practices to allow for
greater flexibility in administering provisions of the Act. References to
Ministers in Acts in dealt with by section 19 of the AIA.
[Schedule 4, items 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103 and
104, section 179AZA (heading), subsection 197AZA(1) (heading),
179AZA(1), 179AZA(2), 216(7), 216(7A), 216(14B), 230D(3) (heading),
230D(3), 230(4), 230(5), 230D(4) (heading), 230D(4), 230D(5) (heading) and
230D(5), and paragraph 216(14B)(a), of the Life Insurance Act]
Part 6 - Other amendments
Insurance Acquisitions and Takeovers Act 1991
2.139 Certain references to 'time' within the IAT Act are omitted and replaced with
references to 'period'. These amendments clarify in each instance that the Act
is not referring to a moment in time, but rather a period of time.
[Schedule 4, items 105, 106, 108 and 111, subsection 44(2) and 58(1)
paragraphs 44(1)(c), 44(1)(d), 73(1)(a), (b) and (c) of the IAT Act]
2.140 Subsection 44(2) of the IAT Act grants the Minister a power to vary a
divestment order which the Minister has made under subsection 44(1) of the
Act for the purposes of Part 3 of the Act. The order may be varied by notifiable
instrument extending the period of time allowed to the person to whom the
divestment order applies, before the time period has expired.
2.141 Subsection 33(3) of the AIA provides that the power to make, grant or issue an
instrument of a legislative or administrative character includes the power
exercisable in the like manner and subject to the like conditions (if any) to
repeal, rescind, revoke, amend or vary such an instrument.
2.142 New subsection 44(2A) of IAT Act is added to clarify that the Minister's
power to vary a divestment order under subsection 44(2) of the Act does not
limit the application of subsection 33(3) of the AIA in relation to the
divestment order. This addition clarifies the law and ensures that it continues to
reflect legislative intent which provides for greater administrative flexibility.
[Schedule 4, item 107, section 44 of the IAT Act]
2.143 New subsection 58(2) of the IAT Act grants the Minister a power to vary a
divestment order which the Minister has made under subsection 58(1) of the
Act for the purposes of Part 4 of the Act. The order may be varied by notifiable
instrument extending the period of time allowed to the person to whom the
divestment order applies, before the time period has expired.
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Insurance
2.144 New subsection 58(2A) of the IAT Act is added to clarify that the Minister's
power to vary a divestment order under subsection 44(2) of the Act does not
limit the application of subsection 33(3) of the AIA in relation to the
instrument. The operation of subsection 33(3) of the AIA is explained above.
This addition clarifies the law and ensures that it continues to reflect legislative
intent which provides for greater administrative flexibility.
[Schedule 4, item 109, subsection 58(2) and (2A) of the IAT Act]
2.145 New subsection 58(2) of the IAT Act applies in relation to a divestment order
made before the commencement of this item if the order was not revoked
before the item commenced, and the period of time specified in the divestment
order did not end before that commencement, or if the divestment order was
made on or after the commencement of this item.
[Schedule 4, item 110]
Insurance Act 1973
2.146 Subsection 3A(1) of the Insurance Act provides that for the purposes of the
Act, insurance business does not include undertaking liability under a contract
of insurance, or a kind of contract of insurance, which is either specified in the
regulations or is in circumstances specified in the regulations for the purposes
of the subsection.
2.147 New subsection 3A(3) of the Insurance Act provides that the regulations may
specify a contract of insurance, a kind of contract of insurance, or
circumstances, by reference to a decision of APRA or a person, or a certificate
or other documents issued by APRA or a person. If the regulations do so, they
may also impose obligations on APRA or the person in relation to the decision.
[Schedule 4, item 112, subsection 3A(3) of the Insurance Act]
2.148 New section 28A of the Insurance Act introduces two offences into the Act to
replace offences in the 2002 Regulations. The section provides that a person
commits an offence if the person is a general insurer that becomes aware that
the person has started to carry on insurance business in Australia, or that the
person has ceased to carry on insurance business in Australia, and does not
inform APRA in writing within 7 days after the date on which the person
becomes aware that the insurance business has started or ceased. The penalty
for either offence is 50 penalty units.
2.149 These offences are moved from the 2002 Regulations into the Insurance Act to
simplify the legislation and provide certainty and visibility to persons who may
be affected. The penalty units applicable for each offence has been increased to
50, from 5 penalty units, to bring the penalty in line with other equivalent
offences in the Act. For example, section 114 of the Insurance Act provides
that a person commits an offence if the person carries on a business using the
word "insurance" or "insurer", for a product that is not insurance and could be
mistakenly believed to be insurance. The penalty for this offence in the case of
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
an individual is 50 penalty units.
[Schedule 4, item 113, section 28A of the Insurance Act]
2.150 Section 28A of the Insurance Act applies in relation to a person starting or
ceasing to carry on an insurance business in Australia on a particular date if the
date occurs on or after the commencement of this item, or within 7 days before
the commencement if the person did not tell APRA of that date under
subregulation 7(1) or (2) respectively of the 2002 Regulations.
[Schedule 4, item 114]
2.151 Section 123 of the Insurance Act is repealed. Section 123 of the Insurance Act
provided that a person may, on application in accordance with the regulations
and on payment of the prescribed fee, inspect the Register of General Insurers
and Authorised NOHCs or an auditor's certificate lodged with APRA under
section 49L of the Insurance Act (Lodgement of auditor's certificate and
actuary's reports).
2.152 Section 123 of the Insurance Act is repealed as it is no longer necessary
because:
• APRA publishes the Register of General Insurers and Authorised
NOHCs on their website; and
• a person can request an auditor's certificate administratively or in
accordance with the Freedom of Information Act 1982.
[Schedule 4, item 115]
Life Insurance Act 1995
2.153 Subsection 35(6) of the Life Insurance Act provides for transitional
arrangements which were applicable only during the period of 15 months after
the commencement of the Act. As that period has passed, the subsection is
redundant are repealed.
[Schedule 4, item 118, subsection 35(6) of the Life Insurance Act]
2.154 Paragraph 191(2)(a) of the Life Insurance Act is amended to clarify that for the
purposes of the paragraph, a copy of each actuarial report on which a scheme is
based must be provided to APRA. Prior to amendment, the paragraph specified
that any report could be provided. Normally an actuarial report will be
prepared by each of the transferring entity and the receiving entity. The
requirements under new paragraph 191(2)(a) of the Life Insurance Act replace
regulation 9.01 of the 1995 Regulations. As this regulation clarifies a provision
in the Act to ensure that both reports were provided, it was incorporated
directly into the Life Insurance Act.
[Schedule 4, item 119, paragraph 191(2)(a) of the Life Insurance Act]
2.155 The 1995 Regulations provide for the requirements for a notice of intention to
make an application for a scheme for the transfer and amalgamation of a life
insurance business. These provisions have been incorporated directly into the
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Life Insurance Act. The requirements specify that a copy of the scheme has
been published for 15 days in a manner which results in it being accessible to
the public and reasonably prominent, necessary documents are provided to
APRA and any other requirements set out in regulations as necessary.
[Schedule 4, items 120, 121, 122 and 123, subsection 191(2), 191(2E),
191(2F) and paragraph 191(2)(c) and 191(2A)(b) of the Life Insurance Act]
2.156 The amendments to section 191 of the Life Insurance Act apply in relation to
an application made on or after the commencement of this item, except for
paragraph 191(2A)(ba) of the Act, as inserted by Part 6 of Schedule 4 to the
Act, which applies in relation to an application made on or after the
commencement of that paragraph.
[Schedule 4, item 124]
2.157 Section 210 of the Life Insurance Act provides for when non-payment of
premiums will not result in the forfeiture of a policy. Schedule 2 to the 1995
Regulations provides for a modification of section 210 of the Life Insurance
Act in its application to ordinary policies where the sum insured and premiums
thereof have been increased at the request of the policy owner. These
provisions have been incorporated directly into the Life Insurance Act for
transparency in the way section 210 of the Act operates in relation to these
kinds of policies. The provisions provide that increases in the sum insured and
premiums at the request of the policy owner are treated for the purposes of the
section 210 of the Life Insurance Act non-forfeiture provisions as a separate
life policy issued at the date of the increase.
[Schedule 4, item 127, subsections 210(6), (7), (8) and (9) of the Life
Insurance Act]
2.158 As a consequence of incorporating this modification into section 210 of the
Life Insurance Act, minor changes have been made to subsections 210(1) and
(5) of the Act to align the language of the subsections and to clarify the
operation of new subsection 210(8) of the Act. These minor changes are not
intended to change the substantive effect of the provisions.
[Schedule 4, items 125 and 126, subsections 210(1) and (5) of the Life
Insurance Act]
2.159 The 1995 Regulations provide ASIC with authority to publish information
relating to the unclaimed money register. Subsection 10.05B of the 1995
Regulations has been incorporated into the Life Insurance Act. New section
216AA of the Life Insurance Act provides that ASIC may authorise
information on the unclaimed moneys register to be made available to the
public or to a particular person in a way that ASIC determines. This authority
excludes making tax file numbers available.
[Schedule 4, items 128 and 129, section 216AA and subsection 216A(3) of
the Life Insurance Act]
2.160 Additionally, new paragraph 216AA(2)(b) of the Life Insurance Act provides
that further restrictions on the ability to publish information to the unclaimed
money register may be prescribed by regulation. This provision ensures that
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
additional restrictions may be placed upon ASIC, should any further privacy
considerations arise in future.
[Schedule 4, item 128, paragraph 216AA(2)(b) of the Life Insurance Act]
2.161 Subsection 216A(3) of the Life Insurance Act is amended to provide that the
prohibitions against disclosure of certain details located in subsection 216A(2)
of the Act do not apply if the disclosure is authorised under section 216AA of
the Act, in addition to disclosures authorised under section 216 of the Act.
[Schedule 4, item 129, subsection 216A(3) of the Life Insurance Act]
2.162 Subsections 246(2) and 246(3) of the Life Insurance Act provide transitional
arrangements regarding principal executive officers which were applicable
only during the period of 3 months after the commencement of the Life
Insurance Act. As such, these provisions are no longer applicable and are
repealed. Subsection 246(1) of the Life Insurance Act is amended to reflect
these repeals.
[Schedule 4, items 130, 131, 132 and 133, subsections 246(1), 246(2) and
246(3) of the Life Insurance Act]
2.163 These amendments to section 246 of the Life Insurance Act do not apply in
relation to nomination made under subsection 246(2) of the Act that is made
before the commencement of item 133 of Schedule 4 to the Bill.
[Schedule 4, item 133]
2.164 Industrial policies are a specific form of life policy where the premiums are
made payable at intervals of less than two months and are contracted to be
received, or are usually received, by means of collectors. These policies were
regulated by provisions of the Life Insurance Act 1945 which have been
repealed. In order to ensure that the remaining industrial policies which were
created under the Life Insurance Act 1945 before the commencement of the
Life Insurance Act are regulated in the same way, specific provisions which
applied to these policies remain applicable.
2.165 New section 265 of the Life Insurance Act therefore provides that section 210
of the Act does not apply to an ordinary policy that existed before the Act
commenced and was an industrial policy within the meaning as defined in the
Life Insurance Act 1945. Further, that despite the repeal of section 101 of the
Life Insurance Act 1945 by the Life Insurance Act, that section continues to
apply to those specifics policies as it applied immediately before its repeal.
[Schedule 4, item 134, section 265 of the Life Insurance Act]
2.166 Regulation 13.02 of the 1995 Regulations provides for certain kinds of life
policies to be declared to be superannuation policies for the purposes of the
definition of 'superannuation policy' in the Life Insurance Act. The kinds of
policies listed in regulation 13.02 of the 1995 Regulations have been stable and
the list has not been amended since 1998. For this reason, the definition of
'superannuation policy' in Schedule 1 to the Life Insurance Act as amended is
clarified to include life policies that are owned by the trustee of an approved
deposit fund or pooled superannuation trust, and RSAs when those life policies
are maintained for the purposes of superannuation or retirement. The power to
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Insurance
prescribe additional kinds of policies has been retained.
[Schedule 4, item 135, Schedule 1 to the Life Insurance Act]
Terrorism and Cyclone Insurance Act 2023
2.167 The Terrorism and Cyclone Insurance Act 2023, defines an 'unauthorised
foreign insurer' to have the same meaning as the 2002 Regulations, which are
due to sunset. To ensure a smooth transition to the new framework, and to
remain consistent with current drafting guidelines, the definition of
'unauthorised foreign insurer' is repealed and substituted with a new
definition. This new definition provides that the term 'unauthorised foreign
insurer' has the same meaning as prescribed by the regulations.
[Schedule 4, item 136, section 3 of the Terrorism and Cyclone Insurance Act
2003]
Part 7 - Amendments consequential on Schedule 2 to
the Bill
2.168 Schedule 2 to the Bill provides for the renaming of provisions of the
Corporations Act. A reference to 'Chapter' will be substituted with a reference
to the 'Act' in the new definition of 'derivative' in Schedule 1 to the Life
Insurance Act (see item 77 of Schedule 4 to the Bill), on the later of the
commencement of Schedules 1 and 2 to the Bill and the commencement of
items 123 to 136 of Schedule 4 to the Bill.
[Schedule 4, item 137, Schedule 1 to the Life Insurance Act]
Commencement and application
2.169 Items 1 to 121 of Schedule 4 to the Bill commences on a date to be fixed by
proclamation. However, if any of those provisions do not commence within the
period of 6 months beginning on the day the Bill receives the Royal Assent,
they commence on the day after the end of that period. Items 123 to 136 of
Schedule 4 to the Bill commence at the same time as items 1 to 121.
2.170 Item 122 commences on the later of the time when items 1 to 121 commence
and immediately after the commencement of Part 4 of Schedule 1 to the
Treasury Laws Amendment (Modernising Business Communications and Other
Measures) Act 2023. This is because this item is contingent on amendments
contained in Part 4 of Schedule 1 to the Treasury Laws Amendment
(Modernising Business Communications and Other Measures) Act 2023. Item
122 will not commence at all if those amendments do not commence.
2.171 Part 7 of Schedule 4 to the Bill commences on the later of the time when items
123 to 136 of Schedule 4 to the Bill commence and immediately after the
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
commencement of Schedules 1 and 2 to the Bill. This is because the item
replaces a reference in Part 7 of the Life Insurance Act to accord with those
amendments and is therefore contingent on them. Part 7 of Schedule 4 to the
Bill will not commence at all if those amendments do not commence as the
references will not need to be replaced.
2.172 The amendments in Schedule 4 to the Bill only apply in relation to offences
committed, or contraventions, acts or omissions that occur, on or after the
commencement of Schedule 4 to the Bill.
[Subsection 2(1), items 15 to 18]
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Rationalisation of
ending ASIC instruments
Table of Contents:
Outline of chapter ................................................................................ 77
Context of amendments ....................................................................... 78
Relevant interests, voting power and exceptions to the general
prohibition (ASIC Class Order [CO 13/520]) ........................................ 78
Context of amendments ................................................................ 78
Comparison of key features of new law and current law ............... 79
Detailed explanation of new law .................................................... 80
Commencement, application, and transitional provisions.............. 87
ASIC Corporations (Superannuation and Schemes: Underlying
Investments) Instrument 2016/378 ...................................................... 87
Context of amendments ................................................................ 87
Consequential amendments .......................................................... 89
Commencement, application, and transitional provisions.............. 89
ASIC Credit (Electronic Precontractual Disclosure) Instrument 2020/835
............................................................................................................. 89
Context of amendments ................................................................ 89
Comparison of key features of new law and current law ............... 90
Detailed explanation of new law .................................................... 91
Commencement, application, and transitional provisions.............. 91
Outline of chapter
3.1 Schedule 5 to the Bill makes amendments to laws in the Treasury portfolio to
move matters currently in ASIC legislative instruments into the primary law.
3.2 Amendments to the Corporations Act incorporate the following instruments:
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Rationalisation of ending ASIC instruments
• ASIC Class Order [CO 13/520] (Part 1 of Schedule 5); and
• section 6 of ASIC Corporations (Superannuation and Schemes;
Underlying Investments) Instrument 2016/378 (Part 2 of Schedule 5).
3.3 Amendments in Part 3 to the National Consumer Credit Protection Act 2009
insert regulation-making powers to support the incorporation of ASIC Credit
(Electronic Precontractual Disclosure) Instrument 2020/835 into the National
Consumer Credit Protection Regulations 2010.
Context of amendments
3.4 These amendments incorporate longstanding and accepted matters currently
contained in ASIC-made legislation into the primary law. This is part of the
regular care and maintenance of Treasury portfolio legislation and provides
industry and consumers with greater certainty and clarity when interacting with
Treasury laws.
3.5 Class orders and legislative instruments that notionally amend the primary law
or regulations may cause complexity in the law and undermine accessibility.
This may make it difficult for entities to identify and understand the law as it
applies to them. Moving notional amendments and other matters out of
ASIC-made legislation through this package goes towards addressing these
concerns.
Relevant interests, voting power and exceptions
to the general prohibition (ASIC Class Order
[CO 13/520])
Context of amendments
3.6 Chapter 6 of the Corporations Act relates to takeovers. It regulates the
acquisition of substantial interests in listed companies and bodies, listed
registered managed investment schemes and unlisted companies with more
than 50 members, by:
• imposing a general prohibition relating to the acquisition of relevant
interests by, or on behalf of a person resulting in an increase of a
persons' voting power in a regulated entity to, or from, a point above
20 per cent (the general prohibition) (section 606 of the Corporations
Act); and
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
• providing for a number of exceptions to the general prohibition under
which otherwise prohibited acquisitions may be made (including, for
example, acquisitions under a takeover bid) (section 611 of the
Corporations Act).
3.7 Section 608 of the Corporations Act sets out the basic rule of when a person
will have a relevant interest in securities. Broadly, a person's interest in
securities will be a 'relevant interest' and regulated by the takeovers provisions
if the person holds the securities, or has the power to control voting or the
disposal of the security. Section 609 of the Corporations Act sets out a number
of situations that will not give rise to a relevant interest in securities.
3.8 ASIC Class Order [CO 13/520] makes a number of modifications to Chapter 6
of the Corporations Act in relation to:
• situations that will not give rise to a relevant interest under section 609
of the Corporations Act;
• securities that are the subject of an acceptance facility; and
• exceptions to the general prohibition.
3.9 The modifications in ASIC Class Order [CO 13/520] relate to similar themes
and modify similar parts of the Corporations Act, however the provisions
generally operate independently of each other.
Comparison of key features of new law and current
law
Table 3.1 Comparison of new law and current law
New law Current law
The definition of convertible securities in ASIC Class Order [CO 13/520] substitutes
ASIC Class Order [CO 13/520] is included an alternative definition of convertible
in section 9 of the Corporations Act. securities into the Corporations Act.
Situations that will not give rise to a Section 609 of the Corporations Act sets out
relevant interest in securities are directly set a number of situations that will not give rise
out in section 609 of the Corporations Act. to a relevant interest in securities. A number
of modifications to these situations and
additional situations, are set out in ASIC
Class Order [CO 13/520]
Section 609B of the Corporations Act ASIC Class Order [CO 13/520] provides that
provides that a body corporate will not a body corporate, or an underwriter, lead
have a relevant interest in securities merely manager or joint lead manager will not have
because they enter into an escrow a relevant interest in securities merely
agreement in connection with an IPO or on because they enter into an agreement in
a voluntary basis. connection with an IPO.
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Rationalisation of ending ASIC instruments
New law Current law
Section 609B of the Corporations Act
provides that an underwriter, lead manager ASIC currently grants individual relief to
or joint lead manager will not have a companies to facilitate voluntary escrow
relevant interest in securities merely arrangements.
because they enter into an agreement in
connection with an IPO.
Exemptions from the general prohibition Section 606 of the Corporations Act imposes
are included in the table in section 611 of a general prohibition relating to the
the Corporations Act. acquisition of interests. Section 611 sets out
relevant exemptions from this general
prohibition. ASIC Class Order [CO 13/520]
makes a number of modifications to the table
items in section 611.
Section 615 of the Corporations Act Section 615 of the Corporations Act sets out:
provides that the exception in item 10 of
the table in section 611 (which relates to • a procedure that allows foreign holders
rights issues) applies to foreign holders of a to participate in the benefits flowing
company's securities that are specified in from a rights issue that has control
offers even when the conditions set out in implications; and
item 10 are not satisfied in certain • seeks to minimise those control effects;
circumstances.
while permitting non-foreign holders to rely
on the relevant exceptions in section 611.
ASIC Class Order [CO 13/520] provides that
the exception in item 10 of the table in
section 611 (which relates to rights issues)
applies to foreign holders of a company's
securities that are specified in offers even
when the conditions set out in item 10 are
not satisfied in certain circumstances.
Detailed explanation of new law
Definitions
3.10 The Bill amends a number of definitions in the Corporations Act.
3.11 The definition of convertible securities is repealed and replaced with a new
definition that provides that securities are convertible into another class of
securities if the holder may, by the exercise of rights attached to those
securities, have the other class of securities issued to them or have the
securities transform into securities of that other class. The definition also states
that an option may be a convertible security even if it is non-renounceable.
[Schedule 5, item 1, section 9 of the Corporations Act]
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
3.12 The definition of substantial holding in section 9 of the Corporations Act is
amended to include a reference to subsection 609(6) (market traded options),
subsection 609(7) (conditional agreements), subsection 609(9B) (securities
escrowed under listing rules) or sections 609B (securities subject to
escrow agreement). The Bill makes identical amendments to
subsection 671B(7) in relation to when a person will have a relevant interest in
securities for the purpose of exchange traded options, conditional agreements,
companies that issue restricted securities and securities that are subject to
escrow agreement.
[Schedule 5, items 3 and 18, sections 9 and 671B of the Corporations Act]
3.13 When calculating a person's voting power and when determining if a person
has a substantial holding in a listed entity, it is necessary to consider the
relevant interests both a person and any associates have in securities of the
body. Section 12 of the Corporations Act provides the definition of associate
for the purpose of Chapter 6 of the Corporations Act and subsection 12(2)
specifies when a second person is an associate to a primary person, in relation
to a designated body. The Bill amends the definition of associate to provide
that a second person is not an associate of a primary person merely because
they have entered into a relevant agreement and one of the persons has or will
have a right under that agreement to dispose of securities in the designated
body.
[Schedule 5, items 4 and 5, section 12 of the Corporations Act]
Situations not giving rise to relevant interests
3.14 Section 608 of the Corporations Act sets out when a person will have a
relevant interest in securities. Section 609 of the Corporations Act sets out
situations that do not give rise to a relevant interest in securities.
Subsection 609(1) relates to situations involving money lending and financial
accommodation. Under the exception security interests taken or acquired in the
ordinary course of a non-associated person's business of providing financial
accommodation on ordinary commercial terms do not give rise to a relevant
interest.
3.15 The Bill repeals and replaces subsection 609(1) to extend the exemption
where:
• the security interest is acquired in the ordinary course of the person's
business of the provision of financial accommodation by any means
and on ordinary commercial terms; or
• the interest was acquired for the benefit of one or more persons in
relation to financial accommodation provided by them in the ordinary
course of their business of the provision of financial accommodation
by any means and on ordinary commercial terms; and
• the person whose property is subject to the security interest is not an
associate of any other person mentioned in this subsection.
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Rationalisation of ending ASIC instruments
[Schedule 5, item 7, subsection 609(1) of the Corporations Act]
3.16 The Bill also clarifies that a reference to a security interest includes a reference
to a negative pledge.
[Schedule 5, item 7, subsection 609(1) of the Corporations Act]
3.17 Subsection 609(3) of the Corporations Act relates to situations where a
financial services licensee does not have a relevant interest in securities merely
because they hold securities on behalf of someone else in the ordinary course
of their financial services business. The Bill inserts subsection 609(3A) to
provide that a financial services licensee does not have a relevant interest in the
securities of their clients merely because they are instructed to dispose of the
securities on the person's behalf or enter into a sold position in relation to the
securities.
[Schedule 5, item 8, subsection 609(3A) of the Corporations Act]
3.18 The Bill inserts another situation that will not give rise to a relevant interest in
securities in relation to securities escrowed under listing rules. This provides
that a listed company does not have a relevant interest in securities merely
because the company must apply restrictions on the disposal of the securities as
part of a listing rule escrow under the listing rules of a prescribed financial
market.
[Schedule 5, item 9, subsection 609(9B) of the Corporations Act]
3.19 Additionally, the Bill provides that that an operator of a prescribed financial
market does not have a relevant interest merely because it has the power to
control the disposal of securities that are the subject of a listing rule escrow.
[Schedule 5, item 9, subsection 609(9C) of the Corporations Act]
Securities the subject of an acceptance facility
3.20 An acceptance facility allows holders of target securities to provide a
third-party facility agent with completed acceptance documents. The facility
agent is then able to release the acceptances once a particular level of support
has been achieved or once the bidder declares the bid free of all conditions or
states they will do so no later than the time all facility acceptances are
processed. The Bill provides that a bidder for a takeover bid will not have a
relevant interest in bid class securities merely because those securities are the
subject of an acceptance, in relation to a facility, that is given to the operator of
the facility in certain circumstances. This includes that:
• the offer under the takeover bid for those securities has not been
accepted;
• in the case where bid class securities are quoted on a prescribed
financial market--for every movement of at least one per cent in the
aggregate level of the bidder's voting power and the votes attached to
bid class securities the subject of acceptances in relation to the facility,
the bidder provides to the relevant market operator, by 9.30 am on the
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
next trading day after the movement, a notice that meets the relevant
notice requirements; and
• in the case where bid class securities are not on a prescribed financial
market--the bidder lodges with ASIC a notice within two business
days after the aggregate level of the bidder's voting power and the
votes attached to bid class securities the subject of acceptances in
relation to the facility rise or fall above or below a percentage listed in
subsection 654C(1).
[Schedule 5, item 10, subsection 609A(1) of the Corporations Act]
3.21 The relief will only be available to acceptance facilities that meet specific
requirements set out in subsection 609A(2), including that:
• it is the only facility in relation to the bid class;
• the operator of the facility is a third party and is not the bidder or an
associate of the bidder;
• a participant in the facility may give the operator acceptances in
relation to the facility;
• the terms permit the operator to maintain custody of an acceptance
until it is withdrawn by the participant or the triggering conditions are
satisfied;
• the terms provide that the facility must be made available to all holders
of bid class securities for unconditional bids or otherwise available to
all or specified holders of bid class securities;
• the terms of the facility provide that the operator of the facility must
provide information about acceptances in relation to the facility to the
bidder sufficiently regularly to allow the bidder to comply with
relevant reporting requirements; and
• the terms of the facility provide that all participants in the facility
participate in the facility on the same terms.
[Schedule 5, item 10, subsection 609A(2) of the Corporations Act]
3.22 The Bill sets out the definition of triggering conditions, acceptance and
participant. The Bill also sets out the notice requirements for the notice
provided by the bidder to the relevant market operator in relation to
circumstances where bid class securities are quoted on a prescribed financial
market.
[Schedule 5, item 10, subsections 609A(3) to (5) of the Corporations Act]
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Rationalisation of ending ASIC instruments
Escrow agreements
3.23 The Bill inserts another situation that will not give rise to relevant interests in
relation to securities subject to an escrow agreement in connection with an
IPO.
3.24 When undertaking an IPO, a lead manager and an underwriter are often
engaged to coordinate the process and manage the offer to ensure the success
of the IPO. This can include the underwriter acquiring any securities which are
not taken up. Under section 608 of the Corporations Act, a person who enters
into an escrow arrangement with a security holder will have a relevant interest
in those securities as they have the power to control the disposal of the
securities. The Bill therefore provides that a body corporate, or an underwriter,
lead manager or joint lead manager will not have a relevant interest in
securities merely because they enter into an agreement in connection with an
IPO. This relief only applies where the escrow securities are in the same class
of securities as those that are covered by the IPO and the agreement satisfies
certain conditions, which are set out in subsection 609B(5).
[Schedule 5, item 10, subsection 609B(1) and paragraph 609B(2)(a) of the
Corporations Act]
3.25 The Bill also inserts another situation that will not give rise to relevant interests
in relation to securities subject to a voluntary escrow agreement. Under an
escrow arrangement, the holder generally agrees not to dispose of the
securities, or rights or interests connected with the securities, for the duration
of the escrow. An escrow arrangement may contain exceptions which allow the
holder to dispose of the securities, or rights or interests connected with the
securities, in limited circumstances. ASIC currently grants individual relief to
companies to facilitate certain voluntary escrow arrangements.
3.26 The Bill therefore provides that a body corporate will not have a relevant
interest in securities merely because they enter into a voluntary escrow
agreement. The relief only applies if the escrow securities are issued as
consideration for the acquisition of a business under a separate agreement
between the body corporate and the vendor of the business and the agreement
satisfies certain conditions, which are set out in subsection 609B(5).
[Schedule 5, item 10, subsection 609B(1) and paragraph 609B(2)(b) of the
Corporations Act]
3.27 The conditions include:
• that the agreement does not restrict the exercise of voting rights
attaching to the escrow securities;
• that in relation to a takeover bid, the agreement allows holders of the
escrow to accept into a successful takeover bid and allow the securities
to be transferred or cancelled as part of a merger by way of a
compromise or scheme of arrangement;
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
• that the agreement terminates in relation to a body corporate two years
after it is entered into or otherwise one year after it is entered into;
• that if the agreement permits the holder to create a security interest in
some or all of the escrow securities in favour of a person who does not
have a relevant interest in the escrow securities because of
subsection 609(1) - the agreement requires that the holder must not
create a security interest in favour of the person unless the person has
agreed in writing to take or acquire the security interest in the escrow
securities subject to the terms of the agreement; and
• if the agreement permits the holder to transfer their interests in the
escrow securities to another person, it requires that they must not do so
if that would result in a change in the beneficial ownership of the
securities, an extension in the period of the agreement or if the
transferee does not agree to be subject to the same restrictions on
disposal of the escrow securities.
[Schedule 5, item 10, subsection 609B(5) of the Corporations Act]
3.28 Consequential amendments to the definition of relevant interest and a note to
subsection 606(1) ensure that new sections 609A and 609B are appropriately
incorporated into other provisions of the Corporations Act that refer to a
relevant interest.
[Schedule 5, items 2 and 6, section 9 (definition of 'relevant interest') and
subsection 606(1) (note 2) of the Corporations Act]
3.29 Subsection 610(3) of the Corporations Act provides that a person's voting
power may be taken to have increased when acquiring securities in which they
did not already have a relevant interest, from an associate. The Bill inserts
subsection 610(3A) to provide that a subsidiary that acquires securities from its
holding company is not taken to have increased its voting power as a result of
the acquisition. However, this will not apply if the acquisition results in an
increase of another person's voting power in a designated body and that person
is not a subsidiary of the ultimate holding company of the body corporate that
issued those shares.
[Schedule 5, item 11, subsection 610(3A) of the Corporations Act]
Amendments to exceptions to the General Prohibition
3.30 Section 606 of the Corporations Act imposes a general prohibition relating to
the acquisition of interests by, or on behalf of a person resulting in an increase
of a persons' voting power in a regulated entity to, or from, a point above
20 per cent (the general prohibition).
3.31 Section 611 of the Corporations Act sets out in table form the acquisitions of
relevant exemptions from the general prohibition as set out in section 606 of
the Corporations Act. The Bill makes a number of amendments to items in the
table. Items 2 and 3 of the table relate to on-market purchases during the
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Rationalisation of ending ASIC instruments
currency of a bid. The Bill amends items 2 and 3 to clarify that the acquisition
of bid class securities will only occur under item 2 or 3 if the bid is subject
only to the condition that an event which, if it occurs, permits a bidder under a
market bid to withdraw their offers under subsection 652C(1) or (2); or is
subject only to the statutory condition set out in paragraph 625(3)(c).
[Schedule 5, item 12, table items 2 and 3 of section 611 of the Corporations
Act]
3.32 Item 6 of the table contains an exception to the general prohibition which
permits an acquisition that results from an exercise of power, or appointment
as receiver, or receiver and manager, under an instrument or agreement
creating or giving rise to a security interest. The Bill replaces item 6 of the
table to provide that an acquisition will be exempt from the general prohibition
if it results from the exercise of a power, or appointment of a receiver, under an
instrument or agreement creating or giving rise to a security interest in certain
circumstances. The Bill also clarifies, for consistency with the amendments to
subsection 609(1) outlined above, that the exception applies to security trustees
and that a security interest includes a negative pledge.
[Schedule 5, item 13, table item 6 of section 611 of the Corporations Act]
3.33 Item 14 of the table provides that an acquisition will be exempt from the
general prohibition where it results from another acquisition of relevant
interests in voting shares in a body corporate that is included in the official list
of a prescribed financial market, or a foreign body conducting a financial
market approved by ASIC. The Bill modifies item 14 of the table to provide
that the exemption only applies to primary listings on official lists.
[Schedule 5, item 14, table item 14 of section 611 of the Corporations Act]
3.34 Section 615 of the Corporations Act sets out a procedure that allows foreign
holders to participate in the benefits flowing from a rights issue that has control
implications and seeks to minimise those control effects, while permitting
non-foreign holders to rely on the relevant exceptions to the general
prohibition notwithstanding foreign holders do not receive offers. The Bill
inserts subsection 615(2) to provide that the exception in item 10 of the table in
section 611 (which relates to rights issues) applies to foreign holders of a
company's securities that are specified in offers even when the conditions set
out in item 10 are not satisfied in certain circumstances. This includes that
under the terms of the offer the company appoints a nominee for the specified
foreign holders that is approved by ASIC and the company issues to the
nominee the securities that would otherwise be issued to the specified foreign
holders. The nominee must, under the terms of the offer, sell the securities and
distribute to the specified foreign holders the relevant proportion of the
proceeds of the sale net of expenses.
[Schedule 5, items 15 to 17, section 615 of the Corporations Act]
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Commencement, application, and transitional
provisions
3.35 The amendments commence on the day after Royal Assent.
ASIC Corporations (Superannuation and
Schemes: Underlying Investments) Instrument
2016/378
Context of amendments
3.36 The Corporations Act sets out a legislative framework for providing Financial
Services Guides to retail clients.
3.37 Section 941A and section 941B of the Corporations Act require Australian
financial services licensees to provide a Financial Services Guide that contains
information about the entity providing a financial service.
3.38 Subsections 941C(2) and 941C(3) of the Corporations Act provide exemptions
for operating a registered scheme and dealing by a responsible entity in scheme
interests, however these two exemptions do not extend to the underlying
dealings of superannuation trustees or responsible entities of registered
schemes.
3.39 Section 6 of ASIC Corporations (Superannuation and Schemes: Underlying
Investments) Instrument 2016/378 provides exemptions to the trustee of a
superannuation fund or the responsible entity of a registered scheme from the
requirement to provide a Financial Services Guide for dealing in a financial
product in the ordinary course of the operation of the scheme.
Comparison of key features of new law and current law
Table 3.2 Comparison of new law and current law
New law Current law
New subsection 941C(2A) exempts the ASIC Corporations (Superannuation and
trustee of a superannuation entity from Schemes: Underlying Investments)
providing a Financial Services Guide where Instrument 2016/378 exempts the trustee of a
the financial service is dealing in the superannuation fund from the requirement to
ordinary course of operation of the provide a Financial Services Guide where
superannuation entity. the trustee deals in a financial product in the
ordinary course of the operation of the fund.
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Rationalisation of ending ASIC instruments
New law Current law
New subsection 941C(2B) exempts the ASIC Corporations (Superannuation and
responsible entity of a registered scheme Schemes: Underlying Investments)
from providing a Financial Services Guide Instrument 2016/378 exempts the
where the financial service is dealing in the responsible entity of a registered scheme
ordering course of operation of the scheme. from the requirement to provide a Financial
Services Guide to a member of the scheme
to the extent that the requirement would
apply to the responsible entity dealing in a
financial product in the ordinary course of
the operation of the scheme.
New subsection 941C(2C) exempts the No current provision exists.
corporate director of a CCIV from
providing a Financial Services Guide where
the financial service is dealing in the
ordinary course of operating the business
and conducting the affairs of the CCIV.
Detailed explanation of new law
3.40 Subsection 941C(3B) of the Corporations Act exempts trustees of a
registerable superannuation fund from providing a Financial Services Guide
where the financial service consists only of providing superannuation trustee
services. Subsection 941C(3) provides a similar exemption for the responsible
entities for a registered scheme the financial service consists only of the
operation of that scheme.
3.41 However, neither of these exemptions address the dealing in the underlying
investments or assets of the scheme or fund, which is a financial service
according to paragraph 766A(1)(b) of the Act. As underlying dealing is a
necessary part of the ordinary operation of a scheme or fund, the existing
exemptions have little practical effect if a trustee or responsible entity is still
required to provide a Financial Services Guide for the underlying dealing that
forms part of the exempted services.
3.42 New subsection 941C(2A) inserts an exemption for trustees of superannuation
entities from their obligation to provide members of the superannuation entity
with a Financial Services Guide related to dealing in the ordinary course of
operation of the fund. This exemption is necessary, as requiring a Financial
Services Guide for the underlying dealing of the fund would undermine the
intent of the existing exemption.
[Schedule 5, item 19, subsection 941C(2A) of the Corporations Act]
3.43 New subsection 941C(2B) inserts an exemption for responsible entities of a
registered scheme from their obligation to provide members of the scheme
with a Financial Services Guide related to dealing in the ordinary course of
operation of the scheme, to likewise address the underlying dealing not
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
covered by the existing exemption.
[Schedule 5, item 19, subsection 941C(2B) of the Corporations Act]
3.44 Due to the similarities between CCIVs, introduced by the Corporate Collective
Investment Vehicle Framework and Other Measures Act 2022, and registered
schemes, it is appropriate for the exemptions to also apply to certain dealings
undertaken in the operation of a CCIV. New subsection 941C(2C) inserts an
exemption for corporate directors of a CCIV from their obligation to provide
members of the CCIV with a Financial Services Guide related to dealing in the
ordinary course of operation of the CCIV.
[Schedule 5, item 19, subsection 941C(2B) of the Corporations Act]
Consequential amendments
3.45 The Bill repeals ASIC Corporations (Superannuation and Schemes: Underlying
Investments) Instrument 2016/378 as it is no longer required.
[Schedule 5, item 31]
3.46 Division 2 of Part 3 of the Bill repeals a number of notes related to evidential
burdens for existing exemptions in section 941C. The notes were intended to
aid readers of the law however were inconsistent throughout the Act and may
have caused confusion about a financial licensee's obligations.
[Schedule 5, items 21 to 30, subsections 952C(1) (note), 952C(3) (note),
952D(1) (note), 952D(2) (note), 952E(1) (note), 952E(2) (note), 952I(1)
(note), 952I(3) (note) and 952J(1) (note) and section 952K (note) of the
Corporations Act]
Commencement, application, and transitional
provisions
3.47 The amendments commence on the day after Royal Assent.
3.48 As new subsection 941C(3C) introduces a new requirement, transitional
provisions have been included to ensure that the exemptions apply in relation
to a financial service provided on or after the commencement of the Bill.
[Schedule 5, item 20, Part 10.70 of the Corporations Act]
ASIC Credit (Electronic Precontractual
Disclosure) Instrument 2020/835
Context of amendments
3.49 The National Credit Code sets out a legislative framework for credit contracts.
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Rationalisation of ending ASIC instruments
3.50 Section 16 of the National Credit Code requires a credit provider to give
debtors a precontractual statement and an information statement prior to
entering into a contract.
3.51 Regulation 28L of the National Consumer Credit Protection Regulations 2010
sets out how certain documents that are required to be provided to consumers
by Australian credit licensees (under the National Consumer Credit Protection
Act 2009) are to be provided. This includes allowing electronic document
retrieval as a manner of giving, and setting, conditions that must be met when
documents are given other than personally (including via electronic
communication).
3.52 Regulation 28L does not apply to precontractual statements and information
statements required by section 16 of the National Credit Code.
3.53 ASIC Credit (Electronic Precontractual Disclosure) Instrument 2020/835
applies the prescribed manners of giving documents set out in Regulation 28L
to all credit providers (not all of whom are licensees) for the purposes of
section 16 precontractual and information statements.
Comparison of key features of new law and current
law
Comparison of new law and current law
New law Current law
A regulation-making power supports the Credit providers may give debtors
insertion of regulations in the National precontractual statements and information
Consumer Credit Protection Regulations statements through an electronic document
2010 that incorporate the effect of ASIC retrieval system, or other electronic
Credit (Electronic Precontractual communication, if they meet the conditions,
Disclosure) Instrument 2020/835. set out in ASIC Credit (Electronic
Precontractual Disclosure) Instrument
2020/835.
A regulation-making power supports the Where a credit provider gives precontractual
insertion of regulations in the National statements and information statements
Consumer Credit Protection Regulations indirectly (via electronic communication or
2010 that incorporate the effect of ASIC otherwise), they must be reasonably
Credit (Electronic Precontractual satisfied, as set out in ASIC Credit
Disclosure) Instrument 2020/835. (Electronic Precontractual Disclosure
Instrument 2020/835), that the debtor has
received the documents prior to entering into
a contract with the debtor.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Detailed explanation of new law
3.54 New subsections in section 16 to the National Credit Code insert a power to
make regulations that prescribe ways in which credit providers may give
precontractual disclosure documents to debtors. This regulation-making power
is necessary as the National Consumer Credit Protection Act 2009 does not
contain an appropriate regulation-making power to support the incorporation of
the effect of ASIC Credit (Electronic Precontractual Disclosure) Instrument
2020/835.
3.55 Regulations may specify additional ways in which a credit provider may give a
document to a debtor.
[Schedule 5, item 32, subsection 16(8) of the National Credit Code]
3.56 The regulations may also set out conditions that must be satisfied in order for a
document to be given in a certain way.
[Schedule 5, item 32, subsection 16(9) of the National Credit Code]
3.57 If a credit provider is required to give a precontractual disclosure by section 16
of the National Credit Code, and gives it in a way that is contrary to regulations
made for the purposes of new subsection 16(9), the requirement to give the
document will not be satisfied.
[Schedule 5, item 32, subsection 16(10) of the National Credit Code]
3.58 To avoid doubt, the new subsections also clarify that any regulations made for
the purposes of subsections 16(9) and 16(10) apply to the exclusion of any
conflicting provisions of the Electronic Transactions Act 1999.
[Schedule 5, item 32, subsection 16(11) of the National Credit Code]
Commencement, application, and transitional
provisions
3.59 The amendments commence on the day after Royal Assent.
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Minor and technical
amendments
Table of Contents:
Outline of chapter ................................................................................ 93
Context of amendments ....................................................................... 93
Summary of new law............................................................................ 94
Detailed explanation of new law .......................................................... 94
Part 1 - Amendments commencing the day after Royal Assent .... 94
Part 2 - Amendments commencing first day of next quarter ........ 100
Outline of chapter
4.1 Schedule 6 to the Bill makes a number of minor and technical amendments to
Treasury portfolio legislation. The amendments demonstrate the Government's
ongoing commitment to the care and maintenance of Treasury portfolio
legislation.
4.2 The amendments correct drafting errors, repeal inoperative provisions, address
unintended outcomes, and make other technical changes.
Context of amendments
4.3 Minor and technical amendments are periodically made to Treasury portfolio
legislation to correct drafting errors, repeal inoperative provisions, address
unintended outcomes and make other technical changes. The amendments are
part of the Government's ongoing commitment to the care and maintenance of
Treasury portfolio legislation.
4.4 The minor and technical amendments process was first supported by a
recommendation of the 2008 Tax Design Review Panel, which was appointed
to examine how to reduce delays in the enactment of tax legislation and
improve the quality of tax legislation. The minor and technical amendments
process has since been expanded to all Treasury portfolio legislation.
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Minor and technical amendments
Summary of new law
4.5 The minor and technical amendments maintain and improve the quality of
Treasury legislation by:
• correcting typographical and numbering errors;
• fixing incorrect legislative references;
• reducing unnecessary red tape;
• addressing unintended outcomes;
• adopting modern drafting practices;
• enhancing readability and administrative efficiency;
• repealing redundant and inoperative provisions; and
• making other technical changes.
Detailed explanation of new law
Part 1 - Amendments commencing the day after Royal
Assent
Division 1 - Definition of year of income in the SIS Act
4.6 The definition of 'year of income' in subsection 10(1) of the SIS Act is
amended to provide that it has the same meaning as it does in the ITAA 1936.
4.7 Without the amendment, the definition of 'year of income' in subsection 10(1)
of the SIS Act provides that 'year of income' in relation to a fund, scheme, or
trust means a period that is, for the purposes of the ITAA 1936, a year of
income of the fund, scheme, or trust (noting that subsection 6(2A) of the same
Act applies accordingly).
4.8 The Tax Laws Amendment (2008 Measures No.4) Act 2008 repealed
subsection 6(2A) of the ITAA 1936. However, the definition in the SIS Act
was not updated alongside the ITAA 1936 definition. This means that the
reference to subsection 6(2A) in subsection 10(1) of the SIS Act is outdated.
4.9 This amendment updates the outdated definition so that it is consistent with the
ITAA 1936. The new definition of 'year of income' will still encompass 'fund,
scheme or trust'. It is technical in nature and does not change the operation of
the SIS Act.
[Schedule 6, item 1, section 10 of the SIS Act]
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Division 2 - Measures relating to the CADB
4.10 Part 11 of the ASIC Act establishes the CADB, which consists of a
Chairperson, Deputy Chairperson, six accounting members, and six business
members. The powers of the CADB are performed and exercised by a Panel of
the CADB, constituted by either three or five members of the CADB.
The members of a Panel are determined by the Chairperson. The ASIC Act
requires that the Chairperson or Deputy Chairperson be on a Panel and be the
Panel Chairperson. A Panel can hold a hearing in relation to a matter.
4.11 The definition of 'Deputy Chairperson' is repealed and replaced with the
following:
• the Deputy Chairperson of the Disciplinary Board; and
• in any other case - a Deputy Chairperson of ASIC.
[Schedule 6, item 2, subsection 5(1) of the ASIC Act]
4.12 The amendments also insert a definition for 'Panel Chairperson', which is
defined as having the meaning given by subsection 210A(3A).
[Schedule 6, item 3, subsection 5(1) of the ASIC Act]
4.13 Section 210A of the ASIC Act is amended to allow the Chairperson to
constitute a Panel so that either the Chairperson, Deputy Chairperson, or
another CADB member who meets certain legal qualification requirements is
made the Panel Chairperson.
4.14 This amendment ensures that a Panel can be formed to deal with matters for
which neither the Chairperson nor the Deputy Chairperson are able to be on a
Panel. Importantly, a CADB member must meet certain legal qualification
requirements to be a Panel Chairperson to ensure that the member has
sufficient knowledge and experience to conduct a hearing.
[Schedule 6, item 4, subsections 210A(3) to (5) of the ASIC Act]
4.15 Subsection 216(7) of the ASIC Act is also amended to reflect updated drafting
practices and to provide that a CADB member who is not on a Panel may be
present at a private hearing if approved by the Panel to be present. This
amendment applies to a hearing of a Panel that is constituted on or after the
commencement of the amendments.
[Schedule 6, items 5 and 6, subsection 216(7) and section 345 of the ASIC
Act]
Division 3 - Claims handling and settling services
4.16 The ASIC Act is amended to align the meaning of financial service with the
corresponding definition in the Corporations Act. Recommendation 4.8 of the
report by the Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry suggested that handling and
settlement of insurance claims, or potential insurance claims, should no longer
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Minor and technical amendments
be excluded from the definition of financial service. Accordingly, the
amendments confirm that claims handling and settling services are covered by
the ASIC Act's consumer protections in relation to financial services.
4.17 These amendments provide certainty and consistency in the law for providers
and consumers of claims handling and settling services and reduce the
ambiguity in relation to ASIC enforcement action.
4.18 Subsection 12DB(1) of the ASIC Act provides that a person must not make a
range of false or misleading representations by any means in connection with
the promotion, supply, or use of financial services. As the definition of
financial service will now include claims handling and settling services,
subsection 12DB(1) is extended to apply to claims handling and settling
services.
4.19 A new heading is inserted alongside new section 346, which describes the
application of the amendment to claims handling and settling services. This
amendment applies to representations made on or after the commencement of
this amendment.
[Schedule 6, items 7 and 8, paragraph 12BAB(1)(eb) and section 346 of the
ASIC Act]
Division 4 - GST-free cars
4.20 Section 38-510 of the GST Act provides for the supply of a GST-free car and
car parts to an eligible individual who has a current disability certificate, issued
by the nominated company, certifying that the individual has lost the use of
their limb(s) to such an extent that they are unable to use public transport.
4.21 Section 38-510 was modified by the TLAA No. 5 2021 to allow a registered
medical practitioner to issue a certificate of medical eligibility in the approved
form, certifying an individual has lost the use of their limb(s) to such an extent
that they are unable to use public transport.
4.22 The amendment clarifies that the TLAA No. 5 2021 amendments do not apply
to disability certificates or certificates of medical eligibility that were issued
prior to the commencement of the TLAA No. 5 2021 and met the requirements
of paragraph 38-510(1)(a) of the GST Act.
4.23 The amendment confirms that certificates issued by the nominated company
prior to the amendment are still valid and have effect as if the certificate was
issued by a medical practitioner.
[Schedule 6, item 9, paragraph 38-510(1)(b) of the GST Act]
Division 5 - Regulation of financial benchmarks
4.24 The amendments update section 760B of the Corporations Act to include a
reference to 'Part 7.5B regulation of financial benchmarks' in table item 5B of
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
the summary table. The summary table in section 760B lists each Part in
Chapter 7 and their headings. Part 7.5B was passed into law in 2018 following
the commencement of the Treasury Laws Amendment (2017 Measures No.5)
Act 2018. However, the summary table in section 760B was not updated.
This amendment ensures the table is up to date.
[Schedule 6, item 10, table item 5B of section 760B of the Corporations Act]
Division 6 - Authorisations
4.25 The Competition and Consumer Act contains many instances of inconsistent
spelling of 'authorisation' (and variants thereon) with a 'z' rather than with an
's'.
4.26 This amendment corrects these typographical errors so all references to
'authorisation' (and its variants) are spelt with an 's'.
[Schedule 6, items 11 to 14, of the Competition and Consumer Act]
Division 7 - Other amendments
4.27 Paragraph 58(4)(a) of the APRA Act contains references to repealed
sections 52A and 52B of the Banking Act 1959. The amendment removes the
references to these repealed sections in paragraph 58(4)(a).
[Schedule 6, item 15, paragraph 58(4)(a) of the APRA Act]
4.28 Paragraphs 58(4)(b) and (c) of the APRA Act contain lists of references to
sections of the Insurance Act and the Life Insurance Act, respectively, in
non-sequential order. Items 16 and 17 rearrange the references in both
paragraphs in a sequential order.
[Schedule 6, items 16 and 17, paragraphs 58(4)(b) and (c) of the APRA Act]
4.29 Subsection 244(2) of the ASIC Act contains two paragraphs numbered (d).
Item 18 renumbers the last paragraph as paragraph (g).
[Schedule 6, item 18, paragraph 244(2)(d) of the ASIC Act]
4.30 Subsection 285(4) of the ASIC Act contains a reference to the Legislative
Instruments Act 2003. The Legislative Instruments Act 2003 has been renamed
as the Legislation Act 2003. Item 19 updates the name of the Act to the
Legislation Act 2003.
[Schedule 6, item 19, subsection 285(4) of the ASIC Act]
4.31 The definition of 'electricity retailer' in section 60A of the Competition and
Consumer Act refers to the Electricity Reform Act 2000 of the Northern
Territory. The Electricity Reform Act 2000 has been renamed as the Electricity
Reform Act 2000. Item 20 updates the name of the Act to the Electricity
Reform Act 2000.
[Schedule 6, item 20, section 60A of the Competition and Consumer Act]
4.32 Paragraph 151BU(4B)(a) of the Competition and Consumer Act incorrectly
refers to 'publically' instead of 'publicly'. Item 21 corrects this typographical
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Minor and technical amendments
error.
[Schedule 6, item 21, paragraph 151BU(4B)(a) of the Competition and
Consumer Act]
4.33 Subsections 151DB(2A), (2B) and (2C) of the Competition and Consumer Act
are no longer required in the law, as the purpose for which they were enacted
has been achieved. Item 22 removes these provisions and assists in ensuring
the legislation is up-to-date and easy to follow.
[Schedule 6, item 22, subsections 151DB(2A), (2B) and (2C) of the
Competition and Consumer Act]
4.34 Part 5.4B of the Corporations Act contained 2 Divisions numbered 1A. Item 23
renumbers the Divisions sequentially.
[Schedule 6, item 23, Part 5.4B of the Corporations Act]
4.35 Subparagraph 911A(2)(en)(v) of the Corporations Act contains a typographical
error, with the word 'be' missing after 'that could reasonably' and before
'regarded'. Item 24 inserts the word 'be' to subparagraph 911A(2)(en)(v) to fix
this typographical error.
[Schedule 6, item 24, subparagraph 911A(2)(en)(v) of the Corporations Act]
4.36 Paragraph 1292(1)(a) of the Corporations Act contains two subparagraphs
numbered (ia). Item 25 renumbers the second occurring (ia) to (iaa).
[Schedule 6, item 25, paragraph 1292(1)(a) of the Corporations Act]
4.37 In paragraphs 1301(1)(a) and (b) of the Corporations Act, the word 'the' was
erroneously in bold and italics. Item 26 removes the bold and italics formatting
from the three instances of 'the'.
[Schedule 6, item 26, paragraphs 1301(1)(a) and (b) of the Corporations Act]
4.38 Subsection 1409(4) of the Corporations Act contains a reference to the
Legislative Instruments Act 2003. The Legislative Instruments Act 2003 has
been renamed as the Legislation Act 2003. Item 27 updates the reference to the
Legislation Act 2003.
[Schedule 6, item 27, subsection 1409(4) of the Corporations Act]
4.39 Part 10.33 of the Corporations Act erroneously contains sections numbered 1
and 2 in between sections 1644A and 1647. Items 28 and 29 renumber the
sections to 1645 and 1646.
[Schedule 6, items 28 and 29, Part 10.33 of the Corporations Act]
4.40 Paragraphs 1678B(6)(a) and (b) of the Corporations Act have no conjunctions
at their conclusion. Item 30 fixes this typographical error by inserting 'and' at
the end of each paragraph.
[Schedule 6, item 30, paragraphs 1678B(6)(a) and (b) of the Corporations
Act]
4.41 The definition of unclaimed money law in subsection 37(4) of Schedule 4 to
the Corporations Act referred to the Companies (Unclaimed Assets and
Moneys) Act of the Northern Territory. This Act has been renamed as the
Companies (Unclaimed Assets and Moneys) Act 1963. Item 31 updates the
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
reference to this Act.
[Schedule 6, item 31, subsection 37(4) of Schedule 4 to the Corporations Act]
4.42 The formula in section 976-1 of the ITAA 1997 contains an incorrect reference
to the 'franking credit on the dividend'. Item 32 corrects this reference to the
'franking credit on the distribution'.
[Schedule 6, item 32, section 976-1 of the ITAA]
4.43 Section 127D of the Insurance Act contains paragraphs referring to other
sections of that Act in a non-sequential order. Item 33 renumbers the
paragraphs, so that they are ordered sequentially.
[Schedule 6, item 33, section 127D of the Insurance Act]
4.44 Paragraphs 127D(b), (c) and (f) of the Insurance Act refer to sections 38A and
38B of that Act, which have been repealed. Item 34 repeals these paragraphs as
they are redundant following the repeal of sections 38A and 38B.
[Schedule 6, item 34, paragraphs 127D(b), (c) and (f) of the Insurance Act]
4.45 Paragraphs 246C(a), (e) and (f) of the Life Insurance Act refer to sections
156A and 156B of that Act, which have been repealed. Item 35 repeals these
paragraphs as they are redundant following the repeal of sections 156A and
156B.
[Schedule 6, item 35, paragraphs 246C(a), (e) and (f) of the Life Insurance
Act]
4.46 Section 246C of the Life Insurance Act contains paragraphs referencing other
sections of that Act in a non-sequential order. Item 36 of Division 7 rearranges
the paragraphs in a sequential order.
[Schedule 6, item 36, section 246C of the Life Insurance Act]
4.47 Paragraph 131FD(a) of the SIS Act refers to section 336B of that Act, which
has been repealed. Item 37 repeals paragraph 131FD(a) of the SIS Act as it is
now redundant. Item 38 provides that, despite the repeal of paragraph
131FD(a), the paragraph continues to apply, at and after the commencement of
item 37, in relation to disclosures of information made before the
commencement of item 32 of Schedule 1 to the Treasury Laws Amendment
(Enhancing Whistleblower Protections) Act 2019.
[Schedule 6, items 37 and 38, paragraph 131FD(a) of the SIS Act]
4.48 Note 1 in subsection 12-390(4) in Schedule 1 to the TAA contains an incorrect
reference to 'managed investment trust'. Items 39 and 40 correct the reference
to 'withholding MIT'.
[Schedule 6, items 39 and 40, Note 1 of subsection 12-390(4) of Schedule 1
to the TAA]
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Minor and technical amendments
Part 2 - Amendments commencing first day of next
quarter
Division 8 - GST at Settlement Credit Entitlement Update
4.49 Under Schedule 1 to the TAA, purchasers of new residential premises and
potential residential land are required to withhold a portion of the purchase
price and remit that amount to the ATO as part of the settlement process.
This amount is in respect of the GST payable on the taxable supply of land.
4.50 The policy intention is that the entity that is liable to pay GST on the taxable
supply should be entitled to the credit for the GST paid by the purchaser. This
is in line with how the GST system operates more broadly. However, under the
current operation of paragraph 18-60(1)(a) in Schedule 1 to the TAA, the credit
entitlement will arise for the entity that makes the taxable supply instead of the
entity that has the GST liability in such cases. These entities are often the
same, but this is not always the case.
4.51 Minor amendments are made to provisions in the GST Act and Schedule 1 to
the TAA to make it clear that the entity that is liable to pay GST on the taxable
supply is entitled to the credit for the GST paid by the purchaser.
[Schedule 6, items 41, 42 to 43, section 33-1 (note 4) and subsection 40-65(2)
(note) of the GST Act, and paragraph 18-60(1)(a) of Schedule 1 to the TAA]
4.52 Item 44 provides that the amendments apply to supplies to which subsection
14-250(2) in Schedule 1 of the TAA applies, whether those supplies were
made before, on or after the commencement. This means the amendments
effectively apply retrospectively in relation to supplies of land for which any of
the consideration (other than consideration provided as a deposit) was first
provided on or after 1 July 2018. The retrospective application is entirely
neutral to taxpayers and ensures the law operates as intended.
[Schedule 6, item 44, section 33-1 (note 4) and subsection 40-65(2) (note) of
the GST Act, and paragraph 18-60(1)(a) of Schedule 1 to the TAA]
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Statement of
Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill
2023
Table of Contents:
Schedule 1 to 3 - Australian Law Reform Commission recommendations
........................................................................................................... 102
Overview ..................................................................................... 102
Human rights implications ........................................................... 102
Conclusion .................................................................................. 102
Schedule 4 - Insurance ...................................................................... 102
Overview ..................................................................................... 103
Human rights implications ........................................................... 103
Conclusion .................................................................................. 106
Schedule 5 - Rationalisation of ending ASIC instruments .................. 107
Overview ..................................................................................... 107
Human rights implications ........................................................... 107
Conclusion .................................................................................. 108
Schedule 6 - Minor and Technical Amendments ............................... 108
Overview ..................................................................................... 108
Human rights implications ........................................................... 108
Conclusion .................................................................................. 108
101
Statement of Compatibility with Human Rights
Schedule 1 to 3 - Australian Law Reform
Commission recommendations
Overview
5.1 Schedules 1 to 3 to the Bill are compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
5.2 Schedules 1 to 3 to the Bill implement recommendations identified by the
ALRC in Interim Reports A and B from its ALRC Review to simplify and
improve the navigability of the law. This includes 'unfreezing' the application
of the AIA to the Corporations Act and ASIC Act, creating a single glossary
for all defined terms in the Corporations Act, repealing redundant definitions,
addressing unclear or incorrect provisions and simplifying unnecessarily
complex provisions in the law.
5.3 These changes facilitate a more adaptive, efficient, and navigable legislative
framework which ensures that the legislative intent is met.
5.4 The amendments in Schedules 1 to 3 to the Bill are minor and technical in
nature.
Human rights implications
5.5 Schedules 1 to 3 to the Bill do not engage any of the applicable rights or
freedoms.
Conclusion
5.6 Schedules 1 to 3 to the Bill are compatible with human rights as they do not
raise any human rights issues.
Schedule 4 - Insurance
5.7 Schedule 4 to the Bill is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
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Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Overview
5.8 In 2022, in consultation with APRA and ASIC, Treasury carried out a review
of the following sunsetting instruments (the Insurance Instruments):
• the Insurance Acquisitions and Takeovers (Notices) Regulations 1992;
• the Decision-Making Principles
• the 2002 Regulations; and
• the 1995 Regulations.
5.9 The review also considered the enabling Acts; that is, the IAT Act and the Life
Insurance Act.
5.10 As part of Treasury's review, a number of provisions in the enabling Acts and
Insurance Instruments were identified as inoperative, spent, or necessary to
clarify in order to ensure the law operates as intended. A number of provisions
contained in the Insurance Instruments were also identified as being more
appropriately incorporated into the primary law.
5.11 Schedule 4 to the Bill primarily amends the enabling Acts to implement
relevant findings of the thematic review of Insurance Instruments that are due
to sunset on 1 October 2023.
Human rights implications
5.12 Treasury has assessed the instruments against the international instruments
listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 and
determined that they may engage the following human rights:
• the right to protection from arbitrary or unlawful interference with
privacy in Article 17 of the ICCPR;
• the right to work under Article 6 of the International Covenant on
Economic, Social and Cultural Rights.
The right to privacy
5.13 Schedule 4 to the Bill engages the right to protection from unlawful or
arbitrary interference with privacy under Article 17 of the ICCPR. These rights
are engaged where:
• ASIC is provided the authority to publish information relating to
individuals on the unclaimed money register;
• the Minister may require a person to give or produce such information
about matters that are relevant to the exercise by the Minister of his or
her powers under the IAT Act;
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Statement of Compatibility with Human Rights
• friendly societies are required to keep a register of members of each
approved benefit funds of the society under the Life Insurance Act.
5.14 The right to protection from unlawful or arbitrary interference with privacy
under Article 17 of the ICCPR may be subject to permissible limitations,
where these limitations are authorised by law and are not arbitrary. In order for
an interference with the right to privacy to be permissible, the interference
must be authorised by law, be for a reason consistent with the ICCPR and be
reasonable in the particular circumstances. The UN Human Rights Committee
has interpreted the requirement of 'reasonableness' to imply that any
interference with privacy must be proportional to the end sought and be
necessary in the circumstances of any given case.
5.15 New section 216AA of the Life Insurance Act engages the right to privacy by
providing ASIC with the authority to publish information relating to
individuals on the unclaimed money register. The authority was previously
contained within the Life Insurance Act and the sunsetting 1995 Regulations.
ASIC may determine the extent of the information that it deems appropriate to
publish on the register. However, it may not publish or make available any tax
file numbers on the register, and a new enabling provision allows further
restrictions to be imposed in the regulations to prevent ASIC from disclosing
other types of personal information, should concerns arise. This new provision
in the Life Insurance Act ensures that the use of personal information for the
register continues to be authorised by law, is in keeping with the purpose of the
register and is able to be modified or further constrained by the regulations in
future, as required.
5.16 The unclaimed money register allows individuals to identify and access
'unclaimed money', which is money in bank accounts that have been inactive
for 7 years or more and life insurance policies that have not been claimed for 7
years or more. The publishing of personal information is required so that an
individual who may otherwise be unaware that they have unclaimed moneys
payable to them can discover, and take steps to claim, the unclaimed moneys.
The disclosure of personal information is therefore necessary and appropriate
to facilitate an individual's access to any money to which they are entitled
from inactive bank accounts or unclaimed life insurance policies.
5.17 Collection and use of personal information by ASIC is subject to the Privacy
Act 1988, which gives effect to the right to privacy under the ICCPR. The
Privacy Act 1988 imposes obligations to protect personal information, ensuring
its collection and use are in accordance with law and any limitations of privacy
are reasonable in the circumstances. As such, ASIC will collect and securely
handle personal information in relation to the Register in accordance with
obligations under the Privacy Act 1988.
5.18 The right to privacy is also engaged by new section 16ZAAD of the Life
Insurance Act, which requires friendly societies to keep a register of members
of each approved benefit funds of the society. The register must include certain
information relating to individuals and their membership with the friendly
104
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
society. This register is not published or made public and is an administrative
requirement for record-keeping purposes. The collection of personal
information is therefore necessary, reasonable, and proportionate to the aim of
promoting financial system stability in Australia through prescribing certain
regulatory requirements.
5.19 Accordingly, to the extent that the Life Insurance Act engages the right to
privacy, that engagement is reasonable in the circumstances. In particular,
collection of some personal or identifying information about an individual is
necessary to achieve the purpose of the Life Insurance Act to protect the
interests of the owners of life insurance policies and the benefits that they are
entitled to. The collection of personal information is proportionate to the end
sought as the Life Insurance Act balances the need for transparency with
protection of personal and commercial information. Any limitation of the right
to privacy from these arrangements is consistent with the ICCPR as the
collection and use of any personal information is authorised by and consistent
with the law, proportional to the end sought, and necessary in the
circumstances.
5.20 The right to privacy is also engaged in the amendments to the IAT Act. The
IAT Act establishes a framework for the control and compulsory notification
of certain acquisitions and agreements relating to Australian-registered
insurance companies, including their directorate. The Minister has various
decision-making powers for these purposes.
5.21 Section 73 of the IAT Act provides that, if the Minister has reason to believe
that a person is capable of giving information or producing documents about
matters that are relevant to the exercise by the Minister of his or her powers
under the Act, the Minister may, by notice in writing served on that person,
require that person to give or produce such information within the time and in
the manner specified in the notice.
5.22 The Minister may exercise his or her power under Section 73 of the IAT Act
by requiring a person to give or produce information about matters that are
relevant to the Minister in relation to various amendments made by Schedule 4
to the Bill, including in determining whether a particular matter is contrary to
the public interest under section 5 of the IAT Act. This information ultimately
supports the objects of the IAT Act to protect the public interest, by ensuring
that the affairs of Australian-registered insurance companies are carried out in
a prudential manner and preventing unsuitable persons from being in a position
of influence.
5.23 Further, section 75 of the IAT Act provides that section 56 of the APRA Act,
which prohibits certain disclosures of information received, applies to
information received under the Act. This is intended to protect the privacy of
individuals, consistent with the right to privacy under Article 17, while still
ensuring appropriate levels of transparency and accountability in assisting the
Minister to exercise his or her powers under the IAT Act. Accordingly, the
105
Statement of Compatibility with Human Rights
extent to which the IAT Act engages the right to privacy is reasonable in the
circumstances.
The right to work - fit and proper person test
5.24 The right to work provides that everyone must be able to freely accept or
choose their work and includes a right not to be unfairly deprived of work. The
right to work also requires that States parties provide a system of protection
guaranteeing access to employment. This right must be made available in a
non-discriminatory manner pursuant to Article 2(1) of the International
Covenant on Economic, Social and Cultural Rights.
5.25 A number of amendments are made to the IAT Act to remove redundant
references to an 'unsuitable person' in relation to the public interest test in
section 5 of the Act. This is because an unsuitable person to be in a position of
influence over a company was defined to mean a person that is not a fit and
proper person to be in such a position of influence, making the reference to an
'unsuitable person' redundant. Specifically, subsection 5(2) of the IAT Act is
repealed, and paragraph 5(1)(b) of the IAT Act is amended to provide that a
particular matter is taken to be contrary to the public interest if it is likely to
result in a person who is not a fit and proper person to be in a position of
influence over an Australian-registered insurance company being in such a
position of influence. New subsections 5(2) and (6) of the IAT Act respectively
allow the Minister to determine circumstances in which a person is taken to be
in a position of influence, and determine matters to which regard must or may
be had in determining whether a matter is likely to result in a person who is not
a fit and proper to be in a position of influence over an Australian-registered
insurance company being in such a position of influence.
5.26 The inclusion of the power for the Minister to determine, by legislative
instrument, the maters to which the Minister must or may have regard in
determining whether a person is not a fit and proper person to be in a position
of influence over an Australian-registered insurance company being in such a
position of influence is appropriate as it pursues the legislative objective of
ensuring that persons who are in a position of influence over an Australian-
registered insurance company are persons who are trustworthy and have the
required integrity for the role. Ensuring that only individuals who meet
appropriate ethical standards can be in such a position of influence is necessary
to protect the public interest.
Conclusion
5.27 Schedule 4 to the Bill is compatible with human rights as any limitations of the
right to privacy and right to work are proportionate, reasonable and necessary
and achieve a legitimate objective.
106
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Schedule 5 - Rationalisation of ending ASIC
instruments
Overview
5.28 Schedule 5 to the Bill is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
5.29 Schedule 5 to the Bill amends the Corporations Act and the National
Consumer Credit Protection Act 2009 to provide for longstanding and accepted
matters that are currently contained in ASIC legislative instruments.
5.30 When ASIC-made legislative instruments notionally amend the primary law it
causes complexity in navigating and understanding the operation of the law,
and therefore undermines accessibility. By moving these matters into primary
law the amendments provide industry and consumers with greater certainty and
clarity when interacting with Treasury laws.
5.31 The amendments incorporating ASIC Class Order [CO 13/520] amend
Chapter 6 of the Corporations Act to makes a number of modifications to in
relation to:
• situations that will not give rise to a relevant interest under section 609
of the Corporations Act;
• securities that are the subject of an acceptance facility; and
• exceptions to the general prohibition.
5.32 The amendments incorporating section 6 of ASIC Corporations
(Superannuation and Schemes: Underlying Investments) Instrument 2016/378
provide exemptions to the trustee of a superannuation fund, or the responsible
entity of a registered scheme or the corporate director of a CCIV from the
requirement to provide a Financial Services Guide for dealing in a financial
product in the ordinary course of the operation of the fund, scheme or CCIV.
5.33 Part 3 of Schedule 5 to the Bill inserts a regulation-making power to support
the insertion of regulations in the National Consumer Credit Protection
Regulations 2010 that incorporate the effect of ASIC Credit (Electronic
Precontractual Disclosure) Instrument 2020/835.
Human rights implications
5.34 Schedule 5 to the Bill does not engage any of the applicable rights or freedoms.
107
Statement of Compatibility with Human Rights
Conclusion
5.35 Schedule 5 to the Bill is compatible with human rights as it does not raise any
human rights issues.
Schedule 6 - Minor and Technical Amendments
Overview
5.36 Schedule 6 to the Bill is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
5.37 Schedule 6 to the Bill makes minor and technical amendments to primary
legislation within the Treasury portfolio. Minor and technical amendments are
periodically made to Treasury portfolio legislation to correct drafting errors,
repeal inoperative provisions, address unintended outcomes and make other
technical changes. The amendments are part of the Government's ongoing
commitment to the care and maintenance of Treasury portfolio legislation.
5.38 The minor and technical amendments process was first supported by a
recommendation of the 2008 Tax Design Review Panel, which was appointed
to examine how to reduce delays in the enactment of tax legislation and
improve the quality of tax legislation. The minor and technical amendments
process has since been expanded to all Treasury portfolio legislation.
Human rights implications
5.39 Schedule 6 to the Bill does not raise any human rights issues.
Conclusion
5.40 Schedule 6 to the Bill is compatible with human rights as it does not raise any
human rights issues.
108
Attachment 1: References in Part 1 of
Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
5 Section 9 (definition of resolution 3 - all terms in s 9
resolution)
9 Section 9 asset 3.3 - term used with same meaning
throughout Act
10 Section 9 (definition of assets 3.3 - term used with same meaning
assets) throughout Act
11 Section 9 (paragraph (c) body corporate 3.2 - term with different meanings
of the definition of body in different areas of the Act
corporate)
12 Section 9 borrow 3.2 - term with different meanings
in different areas of the Act
13 section 9 (definition of borrower 5 - intuitive labelling
borrower)
14 Section 9 (definition of register 3 - all terms in s 9
carry on)
15 Section 9 (definition of cause 1 - not defined if ordinary meaning
cause) sufficient or term is redundant
16 Section 9 (definition of circulating security 3 - all terms in s 9
circulating security interest
interest)
17 Section 9 client 3.3 - term used with same meaning
throughout Act
18 Section 9 (definition of director 3.2 - term with different meanings
director) in different areas of the Act
19 Section 9 disclosing entity 3 - all terms in s 9
provisions
19 Section 9 doing 3 - all terms in s 9
19 Section 9 in default 3 - all terms in s 9
109
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
20 Section 9 (definition of interest 3.3 - term used with same meaning
interest) throughout Act
21 Section 9 in this jurisdiction or 3 - all terms in s 9
elsewhere
22 Section 9 (definition of involved 3.3 - term used with same meaning
involved) throughout Act
23 Section 9 (definition of issue 3.3 - term used with same meaning
issue) throughout Act
24 Section 9 (definition of law 3.2 - term with different meanings
law) in different areas of the Act
25 Section 9 (note to the PPSA security interest 3 - all terms in s 9
definition of lease)
26 Section 9 (definition of liabilities 5 - intuitive labelling
liabilities)
27 Section 9 liability 3.2 - term with different meanings
in different areas of the Act
28 Section 9 (definition of unlisted disclosing 1 - not defined if ordinary meaning
listed disclosing entity) entity sufficient or term is redundant
29 Section 9 (definition of lodge 3 - all terms in s 9
lodge)
30 Section 9 number of shares 3 - all terms in s 9
30 Section 9 offer 3.2 - term with different meanings
in different areas of the Act
30 Section 9 officer 3.2 - term with different meanings
in different areas of the Act
31 Section 9 officer of a corporation 3.2 - term with different meanings
(other than a CCIV) in different areas of the Act
31 Section 9 officer of a corporation 3.2 - term with different meanings
that is a CCIV in different areas of the Act
31 Section 9 officer of an entity that 3.2 - term with different meanings
is neither an individual in different areas of the Act
nor a corporation
32 Section 9 (definition of person 3.2 - term with different meanings
person) in different areas of the Act
110
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
33 Section 9 possessory security 3 - all terms in s 9
interest
34 Section 9 (definition of PPSA security interest 3 - all terms in s 9
PPSA security interest)
35 Section 9 prescribed form 3 - all terms in s 9
36 Section 9 (paragraph property 3.2 - term with different meanings
(aaa) of the definition of in different areas of the Act
property)
37 Section 9 (paragraph (i) property 3.2 - term with different meanings
of the definition of in different areas of the Act
property)
38 Section 9 (note to the property 3.2 - term with different meanings
definition of property) in different areas of the Act
39 Section 9 (definition of receiver 3.2 - term with different meanings
receiver) in different areas of the Act
40 Section 9 (definition of register 3 - all terms in s 9
register)
41 Section 9 (definition of Registrar 3 - all terms in s 9
Registrar)
42 Section 9 (note to the PPSA security interest 3 - all terms in s 9
definition of retention of
title clause)
43 Section 9 (definition of secured creditor 3 - all terms in s 9
secured creditor)
44 Section 9 (definition of secured party 3 - all terms in s 9
secured party)
45 Section 9 (definition of security interest
security interest)
45 Subsection 229(1) giving a financial 3 - all terms in s 9
benefit
47 Section 9 (definition of unlisted disclosing 1 - not defined if ordinary meaning
unlisted disclosing entity sufficient or term is redundant
entity)
48 Section 9AB asset 3.3 - term used with same meaning
throughout Act
111
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
48 Section 9AC director 3.2 - term with different meanings
in different areas of the Act
48 Section 9AD officer 3.2 - term with different meanings
in different areas of the Act
49 Section 9C Registrar 3 - all terms in s 9
50 Section 21 carry on a financial 3.1 - term given Act-wide meaning
services business
51 Division 6A of Part 1.2 N/A 4 - consistent and intuitive
(heading) headings for definition sections
52 Sections 51 to 51E PPSA security interest 3 - all terms in s 9
52 Sections 51 to 51E security interest 3 - all terms in s 9
52 Sections 51 to 51E secured party 3 - all terms in s 9
52 Sections 51 to 51E circulating security 3 - all terms in s 9
interest
52 Sections 51 to 51E possessory security 3 - all terms in s 9
interest
52 Sections 51 to 51E secured creditor 3 - all terms in s 9
53 Division 6B of Part 1.2 N/A 4 - consistent and intuitive
(heading) headings for definition sections
54 Division 7 of Part 1.2 N/A 4 - consistent and intuitive
(heading) headings for definition sections
55 Section 52 doing 3 - all terms in s 9
56 Section 53 (heading) affairs - body 4 - consistent and intuitive
corporate other than a headings for definition sections
CCIV
57 Section 53AAA affairs - CCIV 4 - consistent and intuitive
(heading) headings for definition sections
58 Section 53AA (heading) business affairs - body 4 - consistent and intuitive
corporate headings for definition sections
112
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
59 Section 53AB (heading) business affairs - 4 - consistent and intuitive
natural person headings for definition sections
60 Section 53AC (heading) business affairs - 4 - consistent and intuitive
partnership headings for definition sections
61 Section 53AD (heading) business affairs--trust 4 - consistent and intuitive
headings for definition sections
62 Section 79 involved 6 - bold italics only used when
defining
64 Paragraph 92(1)(f) securities 3.2 - term with different meanings
in different areas of the Act
65 Subsection 92(1) (note) securities 3.2 - term with different meanings
in different areas of the Act
66 Paragraphs 92(2)(e) and securities 3.2 - term with different meanings
(2A)(f) in different areas of the Act
67 Subsection 92(3) securities 3.2 - term with different meanings
in different areas of the Act
68 Paragraph 92(3)(g) securities 3.2 - term with different meanings
in different areas of the Act
69 Subsection 92(4) securities 3.2 - term with different meanings
in different areas of the Act
71 Division 2 of Part 1.2A disclosing entity and 4 - consistent and intuitive
(heading) related terms headings for definition sections
72 Section 111AB N/A 3 - all terms in s 9
73 Section 111AL unlisted disclosing 1 - not defined if ordinary meaning
entity sufficient or term is redundant
74 Subsection 111AR(1) disclosing entity 3 - all terms in s 9
provisions
75 Paragraph 5.4 of the PPSA security interest 3 - all terms in s 9
small business guide in
Part 1.5
76 Section 328A (note) PPSA security interest 3 - all terms in s 9
77 Subsection 328B(2) PPSA security interest 3 - all terms in s 9
(note)
113
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
78 Subsection 442B(1) PPSA security interest 3 - all terms in s 9
(note 1)
79 Paragraph 700(1)(a) security 3.2 - term with different meanings
in different areas of the Act
80 Subsections 700(2) and offer 3.2 - term with different meanings
(3) in different areas of the Act
81 Subsections 910B(1) control 3.2 - term with different meanings
and (2) in different areas of the Act
82 Section 963A (note) doing 3 - all terms in s 9
83 Subsection 963B(1) doing 3 - all terms in s 9
(note)
84 Subsection 1010A(2) securities 3.2 - term with different meanings
(note) in different areas of the Act
85 Subsection 1240H(5) securities 3.2 - term with different meanings
in different areas of the Act
86 Paragraph 1240H(6)(a) offer securities 3.2 - term with different meanings
in different areas of the Act
87 Section 9 (paragraph property 3.2 - term with different meanings
(aaa) of the definition of in different areas of the Act
property)
88 Section 9 auditor's report 3 - all terms in s 9
88 Section 9 chief executive 3 - all terms in s 9
function
88 Section 9 chief financial officer 3 - all terms in s 9
function
88 Section 9 conflict of interest 3 - all terms in s 9
situation
88 Section 9 corporate 3 - all terms in s 9
responsibility
provision
88 Section 9 directors' report 3 - all terms in s 9
88 Section 9 equal reduction 3 - all terms in s 9
114
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
89 Section 9 (definition of financial benefit 2 - no defined term if not
financial benefit) frequently used
90 Section 9 (definition of financial report 3 - all terms in s 9
financial report)
91 Section 9 giving a financial 3 - all terms in s 9
benefit
92 Section 9 independent person 3.2 - term with different meanings
in different areas of the Act
93 Section 9 (subparagraph auditor's report 3 - all terms in s 9
(a)(ii) of the definition
of play a significant
role)
94 Section 9 replaceable rule 3 - all terms in s 9
94 Section 9 selective reduction 3 - all terms in s 9
94 Section 9 shareholder 3.2 - term with different meanings
in different areas of the Act
94 Section 9 spill meeting 3 - all terms in s 9
94 Section 9 spill resolution 3 - all terms in s 9
97 Subsection 229(1) giving a financial 3 - all terms in s 9
benefit
98 Paragraph 250RA(1)(a) auditor's report 3 - all terms in s 9
99 Paragraph 250RA(3)(c) auditor's report 3 - all terms in s 9
100 Subparagraph auditor's report 3 - all terms in s 9
307B(1)(c)(i)
101 Subparagraph auditor's report 3 - all terms in s 9
307B(3)(b)(i)
102 Subparagraph auditor's report 3 - all terms in s 9
307C(5)(a)(i)
103 Subsection 324CH(1) auditor's report 3 - all terms in s 9
(table items 8 and 9)
115
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
104 Subsection 332A(2) annual transparency 6 - bold italics only used when
report defining
105 Subsection 336(4) auditor's report 3 - all terms in s 9
107 Subsection 601SCD(3) financial benefit 2 - no defined term if not
(definition of financial frequently used
benefit)
108 Section 9 appropriate officer 3.2 - term with different meanings
in different areas of the Act
111 Section 9 eligible unsecured 3 - all terms in s 9
creditor
111 Section 9 employee 3.2 - term with different meanings
in different areas of the Act
112 Section 9 Section 486B warrant 3 - all terms in s 9
112 Section 9 section 513CA day 3 - all terms in s 9
113 Section 9 triggering event 3.1 - term given Act-wide meaning
114 Section 416 officer 2 - no defined term if not
frequently used
114 Section 416 property 3.2 - term with different meanings
in different areas of the Act
114 Section 416 receiver 3.2 - term with different meanings
in different areas of the Act
114 Section 416 property 4 - consistent and intuitive
headings for definition sections
114 Section 416 receiver 4 - consistent and intuitive
headings for definition sections
115 Paragraph 422(1)(aa) officer 2 - no defined term if not
frequently used
116 Paragraph 422(3)(a) officer 2 - no defined term if not
frequently used
117 Subparagraph officer 2 - no defined term if not
422(4)(b)(ia) frequently used
116
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
118 Section 429 (heading) reporting officer 4 - consistent and intuitive
headings for definition sections
119 Paragraph 430(1)(aa) officer 2 - no defined term if not
frequently used
120 Subsection 430(1) officer 2 - no defined term if not
frequently used
121 Section 435B property 4 - consistent and intuitive
headings for definition sections
121 Section 435B receiver 4 - consistent and intuitive
headings for definition sections
122 Section 452B property 4 - consistent and intuitive
headings for definition sections
123 Section 465 (heading) property 4 - consistent and intuitive
headings for definition sections
124 Section 489F triggering event 4 - consistent and intuitive
headings for definition sections
125 Section 500AAA triggering event 3.1 - term given Act-wide meaning
126 Paragraph 500A(2)(a) triggering event 3.1 - term given Act-wide meaning
127 Section 513AA property 4 - consistent and intuitive
(heading) headings for definition sections
128 Section 513CA section 513CA day 4 - consistent and intuitive
(heading) headings for definition sections
129 Section 580 external administration 2 - no defined term if not
matter frequently used
129 Section 580 prescribed country 2 - no defined term if not
frequently used
130 Subsection 581(1) external administration 2 - no defined term if not
matter frequently used
131 Subparagraph prescribed country 2 - no defined term if not
581(2)(a)(iii) frequently used
132 Section 588C (heading) property 4 - consistent and intuitive
headings for definition sections
133 Section 588FK PPSA security interest 3 - all terms in s 9
117
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
134 Subsection 589(5) appropriate officer 4 - consistent and intuitive
headings for definition sections
134 Subsection 589(5) property 4 - consistent and intuitive
headings for definition sections
135 Subsection 589(5) relevant day 2 - no defined term if not
(definition of relevant frequently used
day)
136 Subsection 590(8) relevant day 2 - no defined term if not
frequently used
137 Section 601 (heading) property 4 - consistent and intuitive
headings for definition sections
138 Section 601C (heading) property 4 - consistent and intuitive
headings for definition sections
139 Section 9 compliance committee 3 - all terms in s 9
139 Section 9 liquid 3 - all terms in s 9
140 Paragraphs 601GA(4)(b) liquid 3 - all terms in s 9
and (c)
141 Subsection 5(1) (ASIC traditional trustee 3.3 - term used with same meaning
Act) company services throughout Act
141 Subsection 5(1) (ASIC trustee company 3.3 - term used with same meaning
Act) throughout Act
142 Section 9 certificate of transfer 3.1 - term given Act-wide meaning
142 Section 9 common fund 3.2 - term with different meanings
in different areas of the Act
142 Section 9 compulsory transfer 3.1 - term given Act-wide meaning
determination
142 Section 9 estate assets and 3.1 - term given Act-wide meaning
liabilities
142 Section 9 estate management 3.1 - term given Act-wide meaning
functions
142 Section 9 estate that is 3.1 - term given Act-wide meaning
administered or
managed
118
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
142 Section 9 fees 3.2 - term with different meanings
in different areas of the Act
143 Section 9 (definition of licensed trustee 3.3 - term used with same meaning
licensed trustee company throughout Act
company)
144 Section 9 person with a proper 3.3 - term used with same meaning
interest throughout Act
144 Section 9 receiving company 3.1 - term given Act-wide meaning
144 Section 9 traditional trustee 3.3 - term used with same meaning
company services throughout Act
144 Section 9 transfer determination 3.1 - term given Act-wide meaning
144 Section 9 transferring company 3.1 - term given Act-wide meaning
144 Section 9 trustee company 3.3 - term used with same meaning
throughout Act
144 Section 9 trustee company 3.1 - term given Act-wide meaning
provisions
144 Section 9 unacceptable control 3.1 - term given Act-wide meaning
situation
144 Section 9 voluntary transfer 3.1 - term given Act-wide meaning
determination
144 Section 9 will 3.3 - term used with same meaning
throughout Act
145 Paragraph 490(1)(c) trustee company 3.3 - term used with same meaning
throughout Act
146 Subsection 490(2) person with a proper 3.3 - term used with same meaning
interest throughout Act
147 Section 601RAA client 3.3 - term used with same meaning
throughout Act
147 Section 601RAA estate management 3.1 - term given Act-wide meaning
functions
147 Section 601RAA estate that is 3.1 - term given Act-wide meaning
administered or
managed
119
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
147 Section 601RAA fees 3.2 - term with different meanings
in different areas of the Act
147 Section 601RAA law 3.2 - term with different meanings
in different areas of the Act
147 Section 601RAA fees 4 - consistent and intuitive
headings for definition sections
147 Section 601RAA law 4 - consistent and intuitive
headings for definition sections
147 Section 601RAA licensed trustee 3.3 - term used with same meaning
company throughout Act
147 Section 601RAA person with a proper 3.3 - term used with same meaning
interest throughout Act
147 Section 601RAA publish 1 - not defined if ordinary meaning
sufficient or term is redundant
147 Section 601RAA traditional trustee 3.3 - term used with same meaning
company services throughout Act
147 Section 601RAA trustee company 3.3 - term used with same meaning
throughout Act
147 Section 601RAA will 3.3 - term used with same meaning
throughout Act
148 Section 601RAB client 4 - consistent and intuitive
(heading) headings for definition sections
149 Paragraph unacceptable control 3.1 - term given Act-wide meaning
601RAB(2A)(e) situation
150 Subsection 601SBB(1A) estate that is 3.1 - term given Act-wide meaning
administered or
managed
151 Subsection 601SCA(2) common fund 3.2 - term with different meanings
in different areas of the Act
152 Section 601VAC unacceptable control 4 - consistent and intuitive
(heading) situation headings for definition sections
153 Section 601WAA asset 3.3 - term used with same meaning
throughout Act
153 Section 601WAA authorised ASIC 2 - no defined term if not
officer frequently used
120
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
153 Section 601WAA cancel 2 - no defined term if not
frequently used
153 Section 601WAA certificate of transfer 3.1 - term given Act-wide meaning
153 Section 601WAA compulsory transfer 3.1 - term given Act-wide meaning
determination
153 Section 601WAA estate assets and 3.1 - term given Act-wide meaning
liabilities
153 Section 601WAA estate assets and 4 - consistent and intuitive
liabilities headings for definition sections
153 Section 601WAA interest 3.3 - term used with same meaning
throughout Act
153 Section 601WAA liabilities 3.3 - term used with same meaning
throughout Act
153 Section 601WAA licence 2 - no defined term if not
frequently used
153 Section 601WAA receiving company 3.1 - term given Act-wide meaning
153 Section 601WAA transfer determination 3.1 - term given Act-wide meaning
153 Section 601WAA transferring company 3.1 - term given Act-wide meaning
153 Section 601WAA voluntary transfer 3.1 - term given Act-wide meaning
determination
154 Paragraph cancel 2 - no defined term if not
601WBA(1)(a) frequently used
154 Paragraph compulsory transfer 3.1 - term given Act-wide meaning
601WBA(1)(a) determination
155 Subsection 601WCA(1) authorised ASIC 2 - no defined term if not
officer frequently used
156 Subparagraph authorised ASIC 2 - no defined term if not
601WCB(b)(i) officer frequently used
157 Subparagraph authorised ASIC 2 - no defined term if not
601WCC(1)(b)(i) officer frequently used
158 Section 601WCI authorised ASIC 2 - no defined term if not
officer frequently used
121
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
159 Paragraph 792A(1)(h) widely held market 3 - all terms in s 9
body
160 Paragraph 792A(1)(h) unacceptable control 3.1 - term given Act-wide meaning
situation
161 Paragraph 821A(1)(g) widely held market 3 - all terms in s 9
body
162 Paragraph 821A(1)(g) unacceptable control 3.1 - term given Act-wide meaning
situation
167 Paragraphs 617(1)(a) bid class 6 - bold italics only used when
and (3)(a) defining
168 Subsection 5(1) Takeovers Panel 5 - intuitive labelling
(paragraph (a) of the
definition of member)
(ASIC Act)
169 Subsection 5(1) Takeovers Panel 5 - intuitive labelling
(paragraph (c) of the
definition of member)
(ASIC Act)
170 Subsection 5(1) Panel 5 - intuitive labelling
(definition of Panel)
(ASIC Act)
171 Subsection 5(1) Panel proceedings 5 - intuitive labelling
(definition of Panel
proceedings) (ASIC
Act)
172 Subsection 5(1) Takeovers Panel 5 - intuitive labelling
(definition of President)
(ASIC Act)
173 Subsection 5(1) (ASIC Takeovers Panel 5 - intuitive labelling
Act)
173 Subsection 5(1) (ASIC Takeovers Panel 5 - intuitive labelling
Act) proceedings
174 Subsection 5(1) Takeovers Panel 5 - intuitive labelling
(paragraph (b) of the
definition of witness)
(ASIC Act)
175 Subsection 190(3) Takeovers Panel 5 - intuitive labelling
(ASIC Act) proceedings
122
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
176 Section 9 (definition of Takeovers Panel 5 - intuitive labelling
Panel)
177 Section 9 Takeovers Panel 5 - intuitive labelling
178 Subsection 5(1) (ASIC arrangement 3.2 - term with different meanings
Act) in different areas of the Act
179 Subsection 5(1) crowd-funding service 3.3 - term used with same meaning
(definition of crowd- throughout Act
funding service) (ASIC
Act)
180 Subsection 5(1) (ASIC dealing 3.2 - term with different meanings
Act) in different areas of the Act
181 Subsection 5(1) financial product 3.2 - term with different meanings
(paragraph (b) of in different areas of the Act
definition of financial
product) (ASIC Act)
182 Subsection 5(1) financial service 3.3 - term used with same meaning
(paragraph (b) of throughout Act
definition of financial
service) (ASIC Act)
183 Subsection 5(1) (note to financial service 3.3 - term used with same meaning
definition of financial throughout Act
service) (ASIC Act)
184 Subsection 5(1) (ASIC person 3.2 - term with different meanings
Act) in different areas of the Act
185 Subsection 5(1) proposed action notice 3.3 - term used with same meaning
(definition of proposed throughout Act
action notice) (ASIC
Act)
186 Subsection 5(1) (ASIC relevant provider 3.3 - term used with same meaning
Act) throughout Act
186 Subsection 5(1) (ASIC restricted civil penalty 3.3 - term used with same meaning
Act) provision throughout Act
187 Subsection 5(1) (ASIC security 3.2 - term with different meanings
Act) in different areas of the Act
188 Subsection 5(1) Tax Practitioners 3.1 - term given Act-wide meaning
(definition of Tax Board
Practitioners Board)
(ASIC Act)
123
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
189 Subsection 12BA(1) superannuation trustee 3.1 - term given Act-wide meaning
(definition of service
superannuation trustee
service) (ASIC Act)
192 Paragraph AFCA regulated 5 - intuitive labelling
12BAB(14)(c) (ASIC superannuation scheme
Act)
193 Subsection 12DU(a) personal advice 3.1 - term given Act-wide meaning
(ASIC Act)
194 Subparagraph AFCA scheme 3.1 - term given Act-wide meaning
127(4)(aa)(i) (ASIC
Act)
195 Section 9 able to be traded 3.3 - term used with same meaning
throughout Act
196 Section 9 (definition of acquire 3.3 - term used with same meaning
acquire) throughout Act
197 Section 9 adequate 3.2 - term with different meanings
in different areas of the Act
197 Section 9 AFCA 3.1 - term given Act-wide meaning
197 Section 9 AFCA regulated 5 - intuitive labelling
superannuation scheme
197 Section 9 AFCA scheme 3.1 - term given Act-wide meaning
197 Section 9 AFCA staff member 3.1 - term given Act-wide meaning
197 Section 9 anniversary day 3.1 - term given Act-wide meaning
198 Section 9 (definition of annual turnover 3.3 - term used with same meaning
annual turnover) throughout Act
199 Section 9 annuity policy 3.1 - term given Act-wide meaning
199 Section 9 apportionable claim 3 - all terms in s 9
199 Section 9 appropriate 3.1 - term given Act-wide meaning
124
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
199 Section 9 approved deposit fund 3.3 - term used with same meaning
throughout Act
200 Section 9 (definition of arrangement 3.2 - term with different meanings
arrangement) in different areas of the Act
201 Section 9 asset-based fee 3.3 - term used with same meaning
throughout Act
202 Section 9 (definition of Australian CS facility 3.3 - term used with same meaning
Australian CS facility licence throughout Act
licence)
203 Section 9 (definition of Australian derivative 3.3 - term used with same meaning
Australian derivative trade repository licence throughout Act
trade repository licence)
204 Section 9 (definition of Australian financial 3.3 - term used with same meaning
Australian financial services licence throughout Act
services licence)
205 Section 9 (definition of Australian market 3.3 - term used with same meaning
Australian market licence throughout Act
licence)
206 Section 9 authorised clearing and 3.1 - term given Act-wide meaning
settlement facility
206 Section 9 authorised 3.3 - term used with same meaning
representative throughout Act
207 Section 9 (definition of BAS agent 2 - no defined term if not
BAS agent) frequently used
208 Section 9 basic banking product 3.1 - term given Act-wide meaning
208 Section 9 basic deposit product 3.3 - term used with same meaning
throughout Act
208 Section 9 benefit ratio 3.1 - term given Act-wide meaning
208 Section 9 benefit ratio 3 - all terms in s 9
requirements
208 Section 9 binder 3.1 - term given Act-wide meaning
208 Section 9 body corporate 3.1 - term given Act-wide meaning
licensee
125
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
208 Section 9 cancellation time 3.1 - term given Act-wide meaning
208 Section 9 Cash Settlement Fact 3.3 - term used with same meaning
Sheet throughout Act
208 Section 9 CGS depository 3.1 - term given Act-wide meaning
interest
208 Section 9 CGS depository 3.1 - term given Act-wide meaning
interest information
website
208 Section 9 choice product 3.3 - term used with same meaning
throughout Act
208 Section 9 claimant intermediary 3.1 - term given Act-wide meaning
209 Section 9 (definition of claims handling and 3.3 - term used with same meaning
claims handling and settling service throughout Act
settling service)
210 Section 9 (paragraph (d) class 3.3 - term used with same meaning
of the definition of throughout Act
class)
211 Section 9 class of product advice 3.1 - term given Act-wide meaning
211 Section 9 clawback requirements 3 - all terms in s 9
211 Section 9 clearing and settlement 3.3 - term used with same meaning
arrangements throughout Act
212 Section 9 (definition of clearing and settlement 3.3 - term used with same meaning
clearing and settlement facility throughout Act
facility)
213 Section 9 clearing requirements 3.1 - term given Act-wide meaning
213 Section 9 client money reporting 3.3 - term used with same meaning
rules throughout Act
213 Section 9 Code of Ethics 3.1 - term given Act-wide meaning
213 Section 9 compensation 3.1 - term given Act-wide meaning
arrangements
126
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
213 Section 9 compensation rules 3.1 - term given Act-wide meaning
213 Section 9 complaint 3.2 - term with different meanings
in different areas of the Act
213 Section 9 concurrent wrongdoer 3 - all terms in s 9
213 Section 9 conflicted 3.1 - term given Act-wide meaning
remuneration
213 Section 9 consumer credit 3.1 - term given Act-wide meaning
insurance
213 Section 9 contract of insurance 3.2 - term with different meanings
in different areas of the Act
213 Section 9 core obligation 3.1 - term given Act-wide meaning
213 Section 9 CPD provision 3.1 - term given Act-wide meaning
213 Section 9 CPD year 3.1 - term given Act-wide meaning
213 Section 9 crowd-funding service 3.3 - term used with same meaning
throughout Act
213 Section 9 CS facility licensee 3.3 - term used with same meaning
throughout Act
213 Section 9 current LVR 3.1 - term given Act-wide meaning
213 Section 9 custodial arrangement 3.1 - term given Act-wide meaning
213 Section 9 custodian 3.2 - term with different meanings
in different areas of the Act
214 Section 9 (definition of dealing 3.2 - term with different meanings
dealing) in different areas of the Act
215 Section 9 death benefit decision- 3.1 - term given Act-wide meaning
maker
216 Section 9 (definition of defective 3.2 - term with different meanings
defective) in different areas of the Act
217 Section 9 deposit product 3.1 - term given Act-wide meaning
127
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
218 Section 9 (definition of derivative 3.2 - term with different meanings
derivative) in different areas of the Act
219 Section 9 derivative retail client 3 - all terms in s 9
money
219 Section 9 derivative trade data 3.1 - term given Act-wide meaning
219 Section 9 derivative trade 3.3 - term used with same meaning
repository throughout Act
219 Section 9 derivative trade 3.3 - term used with same meaning
repository licensee throughout Act
220 Section 9 (definition of derivative trade 3.3 - term used with same meaning
derivative trade repository rules throughout Act
repository rules)
221 Section 9 derivative transaction 3.1 - term given Act-wide meaning
222 Section 9 (definition of derivative transaction 3.3 - term used with same meaning
derivative transaction rules throughout Act
rules)
223 Section 9 disclosure document or 3.1 - term given Act-wide meaning
statement
224 Section 9 (paragraph (a) dispose 3.3 - term used with same meaning
of the definition of throughout Act
dispose)
225 Section 9 disqualified individual 3.3 - term used with same meaning
throughout Act
225 Section 9 distribution condition 3 - all terms in s 9
225 Section 9 distribution 3.1 - term given Act-wide meaning
information
225 Section 9 Division 3 3.1 - term given Act-wide meaning
arrangements
225 Section 9 Division 3 financial 3.1 - term given Act-wide meaning
products
225 Section 9 Division 3 loss 3.1 - term given Act-wide meaning
128
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
225 Section 9 Division 4 3.1 - term given Act-wide meaning
arrangements
225 Section 9 education and training 3.1 - term given Act-wide meaning
standards
225 Section 9 employer-sponsor 3.1 - term given Act-wide meaning
225 Section 9 excluded conduct 3.1 - term given Act-wide meaning
225 Section 9 execution requirements 3.1 - term given Act-wide meaning
225 Section 9 exempt public sector 3.1 - term given Act-wide meaning
superannuation scheme
225 Section 9 facility 3.2 - term with different meanings
in different areas of the Act
225 Section 9 fee disclosure 3.3 - term used with same meaning
statement throughout Act
225 Section 9 fee recipient 3.1 - term given Act-wide meaning
225 Section 9 fidelity fund 3.1 - term given Act-wide meaning
226 Section 9 (definition of financial benchmark 3.3 - term used with same meaning
financial benchmark) throughout Act
228 Section 9 (definition of financial market 3.3 - term used with same meaning
financial market) throughout Act
229 Section 9 (definition of financial product 3.2 - term with different meanings
financial product) in different areas of the Act
230 Section 9 financial product 3.1 - term given Act-wide meaning
advice
230 Section 9 financial risk 3.1 - term given Act-wide meaning
231 Section 9 (definition of financial service 3.3 - term used with same meaning
financial service) throughout Act
232 Section 9 (definition of Financial Services and 3.3 - term used with same meaning
Financial Services and Credit Panel throughout Act
Credit Panel)
129
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
233 Section 9 (definition of financial services 1 - not defined if ordinary meaning
financial Services business sufficient or term is redundant
business)
234 Section 9 Financial Services 3.3 - term used with same meaning
Guide throughout Act
234 Section 9 financial services law 3.1 - term given Act-wide meaning
235 Section 9 (definition of financial services 3.3 - term used with same meaning
financial services licensee throughout Act
licensee)
236 Section 9 (definition of financial year 3.2 - term with different meanings
financial year) in different areas of the Act
237 Section 9 foreign exchange 3.1 - term given Act-wide meaning
contract
238 Section 9 (definition of foreign passport fund 3.3 - term used with same meaning
foreign passport fund product throughout Act
product)
239 Section 9 foreign qualification 3.1 - term given Act-wide meaning
239 Section 9 funeral benefit 3.1 - term given Act-wide meaning
239 Section 9 further market-related 3.1 - term given Act-wide meaning
advice
239 Section 9 general advice 3.3 - term used with same meaning
throughout Act
239 Section 9 general insurance 3.1 - term given Act-wide meaning
product
239 Section 9 generally available 3.2 - term with different meanings
in different areas of the Act
239 Section 9 holder 3.3 - term used with same meaning
throughout Act
239 Section 9 information 3.2 - term with different meanings
in different areas of the Act
239 Section 9 information statement 3.1 - term given Act-wide meaning
130
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
239 Section 9 inside information 3.1 - term given Act-wide meaning
239 Section 9 insurance claims 3.1 - term given Act-wide meaning
manager
239 Section 9 insurance product 3.3 - term used with same meaning
throughout Act
239 Section 9 insure 3.2 - term with different meanings
in different areas of the Act
239 Section 9 insured 3.2 - term with different meanings
in different areas of the Act
239 Section 9 insurer 3.2 - term with different meanings
in different areas of the Act
239 Section 9 investment life 3.1 - term given Act-wide meaning
insurance product
239 Section 9 issue situation 3.1 - term given Act-wide meaning
239 Section 9 issue statement 3.1 - term given Act-wide meaning
239 Section 9 kind 3.3 - term used with same meaning
throughout Act
239 Section 9 licensed CS facility 3.3 - term used with same meaning
throughout Act
239 Section 9 licensed derivative 3.1 - term given Act-wide meaning
trade repository
239 Section 9 licensed market 3.3 - term used with same meaning
throughout Act
239 Section 9 life policy 3.1 - term given Act-wide meaning
239 Section 9 life policy fund 3.1 - term given Act-wide meaning
239 Section 9 life risk insurance 3.1 - term given Act-wide meaning
product
239 Section 9 limit 3.3 - term used with same meaning
throughout Act
239 Section 9 limited-service time- 3.1 - term given Act-wide meaning
sharing adviser
131
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
240 Section 9 (definition of listing rules 3.3 - term used with same meaning
listing rules) throughout Act
241 Section 9 makes a financial 3.1 - term given Act-wide meaning
investment
241 Section 9 makes a market 3.1 - term given Act-wide meaning
241 Section 9 makes non-cash 3.1 - term given Act-wide meaning
payments
242 Section 9 (definition of managed investment 3.3 - term used with same meaning
managed investment product throughout Act
product)
244 Section 9 (paragraph crowd-funding service 3.3 - term used with same meaning
(mb) of the definition of throughout Act
managed investment
scheme)
245 Section 9 manages financial risk 3.1 - term given Act-wide meaning
245 Section 9 margin call 3.3 - term used with same meaning
throughout Act
245 Section 9 margin lending facility 3.3 - term used with same meaning
throughout Act
245 Section 9 market 3.1 - term given Act-wide meaning
246 Section 9 (definition of market integrity rules 3.3 - term used with same meaning
market integrity rules) throughout Act
247 Section 9 market licensee 3.3 - term used with same meaning
throughout Act
247 Section 9 material effect 3.2 - term with different meanings
in different areas of the Act
247 Section 9 MySuper product 3.3 - term used with same meaning
throughout Act
247 Section 9 NGF 3.1 - term given Act-wide meaning
247 Section 9 non-cash payments 3.1 - term given Act-wide meaning
132
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
247 Section 9 non-standard margin 3.1 - term given Act-wide meaning
lending facility
247 Section 9 ongoing fee 3.3 - term used with same meaning
throughout Act
247 Section 9 ongoing fee 3.3 - term used with same meaning
arrangement throughout Act
248 Section 9 (definition of operated in this 3.1 - term given Act-wide meaning
operated in this jurisdiction
jurisdiction)
249 Section 9 (definition of operating rules 3.3 - term used with same meaning
operating rules) throughout Act
250 Section 9 Part 7.5 authority 3 - all terms in s 9
250 Section 9 Part 7.5 regulated fund 3 - all terms in s 9
250 Section 9 pension 3.2 - term with different meanings
in different areas of the Act
251 Section 9 personal advice 3.1 - term given Act-wide meaning
251 Section 9 policy cost 3.1 - term given Act-wide meaning
251 Section 9 pooled superannuation 3.3 - term used with same meaning
trust throughout Act
251 Section 9 prescribed CS facility 3.1 - term given Act-wide meaning
252 Section 9 (definition of prescribed derivative 3.1 - term given Act-wide meaning
prescribed derivative trade repository
trade repository)
253 Section 9 (definition of procure 3.2 - term with different meanings
procure) in different areas of the Act
254 Section 9 (definition of Product Disclosure 3.3 - term used with same meaning
Product Disclosure Statement throughout Act
Statement)
255 Section 9 product intervention 3.1 - term given Act-wide meaning
order
258 Section 9 prohibition end day 3.1 - term given Act-wide meaning
133
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
259 Section 9 (definition of proposed action notice 3.3 - term used with same meaning
proposed action notice) throughout Act
260 Section 9 provide 3.3 - term used with same meaning
throughout Act
260 Section 9 provisional relevant 3.1 - term given Act-wide meaning
provider
260 Section 9 purchase 3.2 - term with different meanings
in different areas of the Act
260 Section 9 qualified tax relevant 3.1 - term given Act-wide meaning
provider
260 Section 9 reasonable 3.1 - term given Act-wide meaning
investigation
260 Section 9 reasonably apparent 3.2 - term with different meanings
in different areas of the Act
260 Section 9 recent advising history 3.1 - term given Act-wide meaning
260 Section 9 recommendation 3.1 - term given Act-wide meaning
situation
260 Section 9 Reference Checking 3 - all terms in s 9
and Information
Sharing Protocol
260 Section 9 registered tax agent or 3 - all terms in s 9
BAS agent
260 Section 9 Register of Relevant 3.1 - term given Act-wide meaning
Providers
260 Section 9 registration prohibition 3.1 - term given Act-wide meaning
order
260 Section 9 registration suspension 3.1 - term given Act-wide meaning
order
260 Section 9 regulated person 3.2 - term with different meanings
in different areas of the Act
260 Section 9 regulated sale 3.2 - term with different meanings
in different areas of the Act
260 Section 9 regulated 3.3 - term used with same meaning
superannuation fund throughout Act
134
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
260 Section 9 relevant conduct 3.1 - term given Act-wide meaning
260 Section 9 relevant Division 3 3.1 - term given Act-wide meaning
financial products
260 Section 9 relevant financial 3.1 - term given Act-wide meaning
products
260 Section 9 relevant personal 3.1 - term given Act-wide meaning
circumstances
260 Section 9 relevant provider 3.3 - term used with same meaning
throughout Act
260 Section 9 renewal period 3.1 - term given Act-wide meaning
261 Section 9 (definition of Replacement Product 3.3 - term used with same meaning
Replacement Product Disclosure Statement throughout Act
Disclosure Statement)
262 Section 9 reportable situation 3.3 - term used with same meaning
throughout Act
262 Section 9 reporting period 3.2 - term with different meanings
in different areas of the Act
262 Section 9 reporting requirements 3.1 - term given Act-wide meaning
262 Section 9 representative 3.3 - term used with same meaning
throughout Act
263 Section 9 (definition of response period 3.1 - term given Act-wide meaning
response period)
264 Section 9 responsible licensee 3.1 - term given Act-wide meaning
264 Section 9 responsible person 3.1 - term given Act-wide meaning
265 Section 9 (definition of restricted civil penalty 3.3 - term used with same meaning
restricted civil penalty provision throughout Act
provision)
266 Section 9 (definition of retail client 3.3 - term used with same meaning
retail client) throughout Act
267 Section 9 retail product 3.1 - term given Act-wide meaning
distribution conduct
135
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
267 Section 9 review period 3.1 - term given Act-wide meaning
267 Section 9 review triggers 3.1 - term given Act-wide meaning
267 Section 9 risk insurance product 3.1 - term given Act-wide meaning
267 Section 9 RSA 3.1 - term given Act-wide meaning
267 Section 9 RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
267 Section 9 RSA provider 3.1 - term given Act-wide meaning
269 Section 9 sale 3.2 - term with different meanings
in different areas of the Act
269 Section 9 sale situation 3.1 - term given Act-wide meaning
269 Section 9 sale Statement 3.1 - term given Act-wide meaning
269 Section 9 section 1020B 3.1 - term given Act-wide meaning
products
269 Section 9 securities lending 3.2 - term with different meanings
arrangement in different areas of the Act
269 Section 9 SEGC 3.1 - term given Act-wide meaning
269 Section 9 self managed 3.1 - term given Act-wide meaning
superannuation fund
269 Section 9 sinking fund policy 3 - all terms in s 9
269 Section 9 standard employer- 3.1 - term given Act-wide meaning
sponsor
269 Section 9 standard employer- 3.1 - term given Act-wide meaning
sponsored fund
269 Section 9 standard employer- 3.1 - term given Act-wide meaning
sponsored member
269 Section 9 standard margin 3.1 - term given Act-wide meaning
lending facility
136
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
269 Section 9 Statement of Advice 3.3 - term used with same meaning
throughout Act
269 Section 9 superannuation 3.1 - term given Act-wide meaning
complaint
269 Section 9 superannuation entity 3.3 - term used with same meaning
throughout Act
269 Section 9 superannuation 3.1 - term given Act-wide meaning
product
269 Section 9 superannuation 3.1 - term given Act-wide meaning
provider
269 Section 9 superannuation trustee 3.1 - term given Act-wide meaning
service
269 Section 9 supervisor 3.1 - term given Act-wide meaning
269 Section 9 Supplementary 3.1 - term given Act-wide meaning
Financial Services
Guide
270 Section 9 (definition of Supplementary 3.3 - term used with same meaning
Supplementary Product Product Disclosure throughout Act
Disclosure Statement) Statement
271 Section 9 suspension period 3.1 - term given Act-wide meaning
271 Section 9 target market 3.3 - term used with same meaning
throughout Act
271 Section 9 target market 3.3 - term used with same meaning
determination throughout Act
271 Section 9 tax (financial) advice 3.1 - term given Act-wide meaning
service
271 Section 9 Tax Practitioners 3.1 - term given Act-wide meaning
Board
271 Section 9 title document 3.1 - term given Act-wide meaning
271 Section 9 transfer 3.2 - term with different meanings
in different areas of the Act
271 Section 9 trustee 3.3 - term used with same meaning
throughout Act
137
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
271 Section 9 unsolicited contact 3 - all terms in s 9
271 Section 9 volume-based shelf- 3.3 - term used with same meaning
space fee throughout Act
271 Section 9 wholesale client 3.3 - term used with same meaning
throughout Act
271 Section 9 widely held market 3 - all terms in s 9
body
271 Section 9 within authority 3.1 - term given Act-wide meaning
272 Paragraph basic deposit product 3.3 - term used with same meaning
324CH(6A)(b) throughout Act
273 Subparagraph derivative 3.2 - term with different meanings
440JA(b)(iv) in different areas of the Act
274 Subparagraph clearing and settlement 3.3 - term used with same meaning
440JA(d)(ii) facility throughout Act
275 Subparagraph derivative 3.2 - term with different meanings
453X(b)(iv) in different areas of the Act
276 Subparagraph clearing and settlement 3.3 - term used with same meaning
453X(d)(ii) facility throughout Act
277 Subsection 601RAB(3) financial service 3.3 - term used with same meaning
throughout Act
278 Paragraph pooled superannuation 3.3 - term used with same meaning
601RAC(3)(e) trust throughout Act
279 Subsection 609(9A) clearing and settlement 3.3 - term used with same meaning
facility throughout Act
280 Paragraph 636(1)(ga) issue situation 3.1 - term given Act-wide meaning
281 Section 676 (heading) generally available 4 - consistent and intuitive
headings for definition sections
282 Subsections 676(2) and generally available 6 - bold italics only used when
(3) defining
283 Section 703A clearing and settlement 3.3 - term used with same meaning
facility throughout Act
286 Section 738D retail client 3.3 - term used with same meaning
throughout Act
138
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
287 Section 760B (table N/A 4 - consistent and intuitive
item 1) headings for definition sections
288 Division 2 of Part 7.1 N/A 4 - consistent and intuitive
(heading) headings for definition sections
289 Sections 761A and able to be traded 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and acquire 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and AFCA 3.1 - term given Act-wide meaning
761B
289 Sections 761A and AFCA scheme 3.1 - term given Act-wide meaning
761B
289 Sections 761A and AFCA staff member 3.1 - term given Act-wide meaning
761B
289 Sections 761A and AFCA regulated 5 - intuitive labelling
761B superannuation scheme
289 Sections 761A and annual turnover 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and annuity policy 3.1 - term given Act-wide meaning
761B
289 Sections 761A and approved deposit fund 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and arrangement 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and Australian CS facility 3.3 - term used with same meaning
761B licence throughout Act
289 Sections 761A and Australian derivative 3.3 - term used with same meaning
761B trade repository licence throughout Act
289 Section 761A Australian entity 2 - no defined term if not
frequently used
289 Sections 761A and Australian financial 3.3 - term used with same meaning
761B services licence throughout Act
289 Sections 761A and Australian market 3.3 - term used with same meaning
761B licence throughout Act
289 Sections 761A and authorised clearing and 3.1 - term given Act-wide meaning
761B settlement facility
139
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
289 Sections 761A and authorised 3.3 - term used with same meaning
761B representative throughout Act
289 Sections 761A and basic deposit product 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and binder 3.1 - term given Act-wide meaning
761B
289 Sections 761A and carried on in this 2 - no defined term if not
761B jurisdiction frequently used
289 Sections 761A and Cash Settlement Fact 3.3 - term used with same meaning
761B Sheet throughout Act
289 Sections 761A and certificate cancellation 2 - no defined term if not
761B provisions frequently used
289 Sections 761A and CGS depository 3.1 - term given Act-wide meaning
761B interest
289 Sections 761A and claimant intermediary 3.1 - term given Act-wide meaning
761B
289 Sections 761A and claims handling and 3.3 - term used with same meaning
761B settling service throughout Act
289 Sections 761A and class 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and clearing and settlement 3.3 - term used with same meaning
761B facility throughout Act
289 Sections 761A and clearing requirements 3.1 - term given Act-wide meaning
761B
289 Sections 761A and client money reporting 3.3 - term used with same meaning
761B rules throughout Act
289 Sections 761A and crowd-funding service 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and CS facility licensee 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and current LVR 3.1 - term given Act-wide meaning
761B
289 Sections 761A and dealing 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and death benefit decision- 3.1 - term given Act-wide meaning
761B maker
140
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
289 Sections 761A and deposit product 3.1 - term given Act-wide meaning
761B
289 Sections 761A and derivative 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and derivative retail client 3 - all terms in s 9
761B money
289 Sections 761A and derivative retail client 2 - no defined term if not
761B property frequently used
289 Sections 761A and derivative trade data 3.1 - term given Act-wide meaning
761B
289 Sections 761A and derivative trade 3.3 - term used with same meaning
761B repository throughout Act
289 Sections 761A and derivative trade 3.3 - term used with same meaning
761B repository licensee throughout Act
289 Sections 761A and derivative trade 3.3 - term used with same meaning
761B repository rules throughout Act
289 Sections 761A and derivative transaction 3.1 - term given Act-wide meaning
761B
289 Sections 761A and derivative transaction 3.3 - term used with same meaning
761B rules throughout Act
289 Sections 761A and dispose 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and disqualified individual 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and employer-sponsor 3.1 - term given Act-wide meaning
761B
289 Sections 761A and execution requirements 3.1 - term given Act-wide meaning
761B
289 Sections 761A and exempt public sector 3.1 - term given Act-wide meaning
761B superannuation scheme
289 Sections 761A and financial market 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and financial product 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and financial product 3.1 - term given Act-wide meaning
761B advice
141
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
289 Sections 761A and financial product 2 - no defined term if not
761B advice law frequently used
289 Sections 761A and financial service 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and financial services 1 - not defined if ordinary meaning
761B business sufficient or term is redundant
289 Sections 761A and Financial Services 3.3 - term used with same meaning
761B Guide throughout Act
289 Sections 761A and financial services law 3.1 - term given Act-wide meaning
761B
289 Sections 761A and financial services 3.3 - term used with same meaning
761B licensee throughout Act
289 Sections 761A and foreign exchange 3.1 - term given Act-wide meaning
761B contract
289 Sections 761A and foreign passport fund 3.3 - term used with same meaning
761B product throughout Act
289 Sections 761A and funeral benefit 3.1 - term given Act-wide meaning
761B
289 Sections 761A and funeral expenses 3.1 - term given Act-wide meaning
761B facility
289 Sections 761A and further market-related 3.1 - term given Act-wide meaning
761B advice
289 Sections 761A and general advice 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and general insurance 3.1 - term given Act-wide meaning
761B product
289 Sections 761A and holder 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and holder 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and insurance claims 3.1 - term given Act-wide meaning
761B manager
289 Sections 761A and insurance fulfilment 2 - no defined term if not
761B provider frequently used
289 Sections 761A and insurance product 3.3 - term used with same meaning
761B throughout Act
142
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
289 Sections 761A and insurer 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and investigating authority 1 - not defined if ordinary meaning
761B sufficient or term is redundant
289 Sections 761A and investment life 3.1 - term given Act-wide meaning
761B insurance product
289 Sections 761A and involved in 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and issue 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and issuer 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and kind 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and licensed CS facility 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and licensed derivative 3.1 - term given Act-wide meaning
761B trade repository
289 Sections 761A and licensed market 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and life policy 3.1 - term given Act-wide meaning
761B
289 Sections 761A and life policy fund 3.1 - term given Act-wide meaning
761B
289 Sections 761A and life risk insurance 3.1 - term given Act-wide meaning
761B product
289 Sections 761A and limit 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and listing rules 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and makes a market 3.1 - term given Act-wide meaning
761B
289 Sections 761A and managed investment 3.3 - term used with same meaning
761B product throughout Act
289 Sections 761A and margin call 3.3 - term used with same meaning
761B throughout Act
143
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
289 Sections 761A and margin lending facility 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and market integrity rules 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and market licensee 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and non-standard margin 3.1 - term given Act-wide meaning
761B lending facility
289 Sections 761A and operated in this 3.1 - term given Act-wide meaning
761B jurisdiction
289 Sections 761A and operating rules 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and participant 3.1 - term given Act-wide meaning
761B
289 Sections 761A and person 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and personal advice 3.1 - term given Act-wide meaning
761B
289 Sections 761A and prescribed CS facility 3.1 - term given Act-wide meaning
761B
289 Sections 761A and prescribed derivative 3.1 - term given Act-wide meaning
761B trade repository
289 Sections 761A and Product Disclosure 3.3 - term used with same meaning
761B Statement throughout Act
289 Sections 761A and provide 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and recognised affiliate 1 - not defined if ordinary meaning
761B sufficient or term is redundant
289 Sections 761A and regulated 3.3 - term used with same meaning
761B superannuation fund throughout Act
289 Sections 761A and relevant personal 3.1 - term given Act-wide meaning
761B circumstances
289 Sections 761A and Replacement Product 3.3 - term used with same meaning
761B Disclosure Statement throughout Act
289 Sections 761A and reporting requirements 3.1 - term given Act-wide meaning
761B
144
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
289 Sections 761A and retail client 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and risk insurance product 3.1 - term given Act-wide meaning
761B
289 Sections 761A and RSA 3.1 - term given Act-wide meaning
761B
289 Sections 761A and RSA product 1 - not defined if ordinary meaning
761B sufficient or term is redundant
289 Sections 761A and RSA provider 3.1 - term given Act-wide meaning
761B
289 Sections 761A and RSE licence 3.1 - term given Act-wide meaning
761B
289 Sections 761A and sale 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and security 3.2 - term with different meanings
761B in different areas of the Act
289 Sections 761A and self managed 3.1 - term given Act-wide meaning
761B superannuation fund
289 Sections 761A and standard margin 3.1 - term given Act-wide meaning
761B lending facility
289 Sections 761A and Statement of Advice 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and superannuation 3.1 - term given Act-wide meaning
761B complaint
289 Sections 761A and superannuation entity 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and superannuation 3.1 - term given Act-wide meaning
761B product
289 Sections 761A and superannuation 3.1 - term given Act-wide meaning
761B provider
289 Sections 761A and superannuation trustee 3.1 - term given Act-wide meaning
761B service
289 Sections 761A and Supplementary 3.1 - term given Act-wide meaning
761B Financial Services
Guide
145
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
289 Sections 761A and Supplementary 3.3 - term used with same meaning
761B Product Disclosure throughout Act
Statement
289 Sections 761A and title document 3.1 - term given Act-wide meaning
761B
289 Sections 761A and traditional trustee 3.3 - term used with same meaning
761B company services throughout Act
289 Sections 761A and trustee 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and trustee company 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and wholesale client 3.3 - term used with same meaning
761B throughout Act
289 Sections 761A and arrangement 4 - consistent and intuitive
761B headings for definitions sections
290 Section 761C carry on a financial 3.1 - term given Act-wide meaning
services business
291 Section 761CA class 3.3 - term used with same meaning
throughout Act
291 Section 761CA kind 3.3 - term used with same meaning
throughout Act
292 Subsection 761D(1) derivative 3.2 - term with different meanings
in different areas of the Act
293 Subsection 761D(2) derivative 3.2 - term with different meanings
in different areas of the Act
294 Subsection 761D(3) derivative 3.2 - term with different meanings
in different areas of the Act
295 Paragraph 761D(3)(d) derivative 3.2 - term with different meanings
in different areas of the Act
296 Subsection 761D(4) derivative 3.2 - term with different meanings
in different areas of the Act
297 Section 761E (heading) issue 3.3 - term used with same meaning
throughout Act
298 Subsection 761E(3) RSA product 1 - not defined if ordinary meaning
(table item 2) sufficient or term is redundant
146
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
298 Subsection 761E(3) RSA 1 - not defined if ordinary meaning
(table item 2) sufficient or term is redundant
299 Subsection 761E(7) acquire 3.3 - term used with same meaning
throughout Act
299 Subsection 761E(7) issue 3.3 - term used with same meaning
throughout Act
299 Subsection 761E(7) provide 3.3 - term used with same meaning
throughout Act
300 Subsections 761G(1) retail client 3.3 - term used with same meaning
and (2) throughout Act
301 Subsection 761G(3) retail client 3.3 - term used with same meaning
throughout Act
302 Subsection 761G(4) wholesale client 3.3 - term used with same meaning
throughout Act
303 Subsection 761G(5) retail client 3.3 - term used with same meaning
throughout Act
304 Subsection 761G(6) retail client 3.3 - term used with same meaning
throughout Act
305 Paragraph 761G(6)(a) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
305 Paragraph 761G(6)(a) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
306 Paragraph 761G(6)(aa) pooled superannuation 3.3 - term used with same meaning
trust throughout Act
307 Paragraph 761G(6)(b) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
307 Paragraph 761G(6)(b) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
309 Subparagraph RSA provider 3.1 - term given Act-wide meaning
761G(6)(c)(ii)
310 Paragraph 761G(6)(c) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
310 Paragraph 761G(6)(c) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
311 Subsection 761G(6A) retail client 3.3 - term used with same meaning
throughout Act
147
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
312 Subsection 761G(7) retail client 3.3 - term used with same meaning
throughout Act
313 Subsection 761G(7) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
313 Subsection 761G(7) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
314 Paragraph 761G(7)(c) retail client 3.3 - term used with same meaning
throughout Act
315 Subsection 761G(9) RSA product 1 - not defined if ordinary meaning
(note 1) sufficient or term is redundant
315 Subsection 761G(9) RSA 1 - not defined if ordinary meaning
(note 1) sufficient or term is redundant
316 Section 761GA retail client 3.3 - term used with same meaning
throughout Act
317 Paragraph 761GA(b) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
317 Paragraph 761GA(b) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
318 Section 762B financial product 3.2 - term with different meanings
in different areas of the Act
319 Section 762C facility 3.1 - term given Act-wide meaning
320 Section 762C (note) arrangement 3.2 - term with different meanings
in different areas of the Act
321 Subsections 763A(1) financial product 3.2 - term with different meanings
in different areas of the Act
323 Subsection 763A(2) financial product 3.2 - term with different meanings
in different areas of the Act
324 Section 763B makes a financial 3.1 - term given Act-wide meaning
investment
325 Section 763C manages financial risk 3.1 - term given Act-wide meaning
326 Subsection 763D(1) makes non-cash 3.1 - term given Act-wide meaning
payments
327 Subsection 763D(2) makes non-cash 3.1 - term given Act-wide meaning
payments
148
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
328 Subsection 764A(1) financial product 3.2 - term with different meanings
in different areas of the Act
329 Paragraphs 764A(1)(d), life policy 3.1 - term given Act-wide meaning
(e) and (f)
329 Paragraphs 764A(1)(d), sinking fund policy 3 - all terms in s 9
(e) and (f)
330 Paragraph 764A(1)(g) superannuation 3.1 - term given Act-wide meaning
product
331 Paragraph 764A(1)(h) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
332 Paragraph 764A(1)(m) financial product 3.2 - term with different meanings
in different areas of the Act
333 Subsection 764A(3) financial product 3.2 - term with different meanings
in different areas of the Act
334 Subsection 765A(1) financial product 3.2 - term with different meanings
in different areas of the Act
337 Subparagraph life policy 3.1 - term given Act-wide meaning
765A(1)(v)(ii)
337 Subparagraph sinking fund policy 3 - all terms in s 9
765A(1)(v)(ii)
338 Subsection 765A(2) financial product 3.2 - term with different meanings
in different areas of the Act
339 Subsection 766A(1) financial service 3.3 - term used with same meaning
throughout Act
342 Subsection 766B(1) financial product 3.1 - term given Act-wide meaning
advice
343 Subsection 766B(3) personal advice 3.1 - term given Act-wide meaning
344 Subsection 766B(3A) personal advice 3.1 - term given Act-wide meaning
345 Subsection 766B(4) general advice 3.3 - term used with same meaning
throughout Act
346 Subsection 766C(1) dealing 3.2 - term with different meanings
in different areas of the Act
347 Subsection 766D(1) makes a market 3.1 - term given Act-wide meaning
149
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
348 Paragraph 766E(3)(c) AFCA regulated 5 - intuitive labelling
superannuation scheme
348 Paragraph 766E(3)(c) approved deposit fund 3.3 - term used with same meaning
throughout Act
348 Paragraph 766E(3)(c) pooled superannuation 3.3 - term used with same meaning
trust throughout Act
348 Paragraph 766E(3)(c) regulated 3.3 - term used with same meaning
superannuation fund throughout Act
349 Subsection 767A(1) financial market 3.3 - term used with same meaning
throughout Act
350 Subsection 767A(2) financial market 3.3 - term used with same meaning
throughout Act
351 Subsection 768A(1) clearing and settlement 3.3 - term used with same meaning
facility throughout Act
352 Subsection 768A(2) clearing and settlement 3.3 - term used with same meaning
facility throughout Act
354 Section 790A clearing and settlement 4 - consistent and intuitive
arrangements headings for definition sections
355 Section 791D (heading) operated in this 4 - consistent and intuitive
jurisdiction headings for definition sections
356 Subsection 791D(1) operated in this 3.1 - term given Act-wide meaning
jurisdiction
357 Subsections 791D(1) operated in this 6 - bold italics only used when
and (2) jurisdiction defining
358 Subsection 791D(2) operated in this 3.1 - term given Act-wide meaning
jurisdiction
361 Subsection 795E(2) Australian market 3.3 - term used with same meaning
licence throughout Act
364 Section 820D (heading) operated in this 4 - consistent and intuitive
jurisdiction headings for definition sections
365 Subsection 820D(1) operated in this 3.1 - term given Act-wide meaning
jurisdiction
366 Subsection 820D(1) and operated in this 6 - bold italics only used when
(2) jurisdiction defining
367 Subsection 820D(2) operated in this 3.1 - term given Act-wide meaning
jurisdiction
150
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
370 Subsection 824E(2) clearing and settlement 3.3 - term used with same meaning
facility throughout Act
373 Section 850A widely held market 4 - consistent and intuitive
body headings for definition sections
374 Subsection 850B(1) unacceptable control 3.1 - term given Act-wide meaning
situation
375 Section 850D (heading) unacceptable control 4 - consistent and intuitive
situation headings for definition sections
377 Section 851I (heading) widely held market 3 - all terms in s 9
body
378 Subsection 851I(3) widely held market 3 - all terms in s 9
(definition of body
specification time)
379 Section 853A (heading) disqualified individual 4 - consistent and intuitive
headings for definition sections
380 Section 853A disqualified 5 - intuitive labelling
381 Section 853B (heading) involved in 4 - consistent and intuitive
headings for definition sections
382 Section 853B involved in 3.3 - term used with same meaning
throughout Act
383 Subsection 853C(1) disqualified 6 - bold italics only used when
defining
384 Section 853G disqualified 3.3 - term used with same meaning
throughout Act
385 Section 880B adequate 3.2 - term with different meanings
in different areas of the Act
385 Section 880B borrowing 3.2 - term with different meanings
in different areas of the Act
385 Section 880B compensation 3.1 - term given Act-wide meaning
arrangements
385 Section 880B compensation rules 3.1 - term given Act-wide meaning
385 Section 880B Division 3 3.1 - term given Act-wide meaning
arrangements
151
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
385 Section 880B Division 3 loss 3.1 - term given Act-wide meaning
385 Section 880B Division 4 3.1 - term given Act-wide meaning
arrangements
385 Section 880B fidelity fund 3.1 - term given Act-wide meaning
385 Section 880B NGF 3.1 - term given Act-wide meaning
385 Section 880B operating rules 3.3 - term used with same meaning
throughout Act
385 Section 880B Part 7.5 arrangements 1 - not defined if ordinary meaning
sufficient or term is redundant
385 Section 880B pay 2 - no defined term if not
frequently used
385 Section 880B SEGC 3.1 - term given Act-wide meaning
387 Subparagraph clearing and settlement 3.3 - term used with same meaning
883B(1)(c)(i) arrangements throughout Act
388 Section 883C pay 2 - no defined term if not
frequently used
392 Subsection 885A(2) arrangements 6 - bold italics only used when
defining
393 Subsection 885A(3) compensation rules 6 - bold italics only used when
defining
394 Paragraph 885B(1)(e) pay 2 - no defined term if not
frequently used
395 Subsection885E(1) pay 2 - no defined term if not
frequently used
396 Subsection 885E(7) compensation in 2 - no defined term if not
respect of a Division 3 frequently used
loss
397 Subsection 885F(1) pay 1 - not defined if ordinary meaning
sufficient or term is redundant
398 Paragraph 886A(a) compensation in 2 - no defined term if not
respect of a Division 3 frequently used
loss
152
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
399 Subsection 890A(1) Securities Exchanges 6 - bold italics only used when
Guarantee Corporation defining
402 Section 892A Meaning of Part 7.5 4 - consistent and intuitive
authority headings for definition sections
402 Section 892A Meaning of Part 7.5 4 - consistent and intuitive
regulated fund headings for definition sections
403 Section 892B (heading) Part 7.5 regulated fund 5 - intuitive labelling
404 Subsection 892B(1) Part 7.5 authority 5 - intuitive labelling
405 Subsection 892B(2) Part 7.5 regulated fund 5 - intuitive labelling
406 Subsection 892B(3) Part 7.5 authority 5 - intuitive labelling
407 Section 892C Part 7.5 authority 5 - intuitive labelling
407 Section 892C Part 7.5 regulated fund 5 - intuitive labelling
408 Section 892D (heading) Part 7.5 authority 5 - intuitive labelling
409 Subsection 892D(1) Division 4 1 - not defined if ordinary meaning
arrangements sufficient or term is redundant
409 Subsection 892D(1) Part 7.5 arrangements 1 - not defined if ordinary meaning
sufficient or term is redundant
410 Subsection 892D(1) Part 7.5 authority 5 - intuitive labelling
411 Subsections 892D(4), Part 7.5 authority 5 - intuitive labelling
(5) and (6)
412 Subsection 892D(6) Part 7.5 arrangements 1 - not defined if ordinary meaning
sufficient or term is redundant
413 Subsections 892D(7) Part 7.5 authority 5 - intuitive labelling
and (8)
414 Section 892F (heading) Part 7.5 authority 5 - intuitive labelling
415 Subsection 892F(1) Division 3 1 - not defined if ordinary meaning
arrangements sufficient or term is redundant
153
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
415 Subsection 892F(1) Division 4 1 - not defined if ordinary meaning
arrangements sufficient or term is redundant
415 Subsection 892F(1) Part 7.5 arrangements 1 - not defined if ordinary meaning
sufficient or term is redundant
416 Subsection 892F(2) Part 7.5 authority 5 - intuitive labelling
417 Section 892G (heading) Part 7.5 regulated fund 3 - all terms in s 9
418 Subsections 892G(1) Part 7.5 regulated fund 5 - intuitive labelling
and (2)
419 Section 892H Division 3 1 - not defined if ordinary meaning
arrangements sufficient or term is redundant
419 Section 892H Division 4 1 - not defined if ordinary meaning
arrangements sufficient or term is redundant
419 Section 892H Part 7.5 arrangements 1 - not defined if ordinary meaning
sufficient or term is redundant
420 Section 892I Division 3 1 - not defined if ordinary meaning
arrangements sufficient or term is redundant
420 Section 892I Part 7.5 arrangements 1 - not defined if ordinary meaning
sufficient or term is redundant
421 Subsection 901A(5) execution requirements 3.1 - term given Act-wide meaning
422 Subsection 901A(6) reporting requirements 3.1 - term given Act-wide meaning
423 Subsection 901A(7) clearing requirements 3.1 - term given Act-wide meaning
424 Subsection 905E(2) derivative trade 3.3 - term used with same meaning
repository throughout Act
427 Subsection 908BE(2) financial benchmark 3.3 - term used with same meaning
throughout Act
428 Paragraph 908DA(2)(b) Australian entity 2 - no defined term if not
frequently used
429 Paragraph 908DB(2)(b) Australian entity 2 - no defined term if not
frequently used
430 Paragraph 908DD(2)(c) Australian entity 2 - no defined term if not
frequently used
154
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
431 Section 910A basic banking product 3.1 - term given Act-wide meaning
431 Section 910A body corporate 3.1 - term given Act-wide meaning
licensee
431 Section 910A cancellation time 3.1 - term given Act-wide meaning
431 Section 910A class of product advice 3.1 - term given Act-wide meaning
431 Section 910A Code of Ethics 3.1 - term given Act-wide meaning
431 Section 910A consumer credit 3.1 - term given Act-wide meaning
insurance
431 Section 910A core obligation 3.1 - term given Act-wide meaning
431 Section 910A CPD provision 3.1 - term given Act-wide meaning
431 Section 910A CPD year 3.1 - term given Act-wide meaning
431 Section 910A education and training 3.1 - term given Act-wide meaning
standards
431 Section 910A Financial Services and 3.3 - term used with same meaning
Credit Panel throughout Act
431 Section 910A foreign qualification 3.1 - term given Act-wide meaning
431 Section 910A knowledge 3 - all terms in s 9
431 Section 910A limited-service time- 3.1 - term given Act-wide meaning
sharing adviser
431 Section 910A notice provision 2 - no defined term if not
frequently used
431 Section 910A prohibition end day 3.1 - term given Act-wide meaning
431 Section 910A proposed action notice 3.3 - term used with same meaning
throughout Act
431 Section 910A provisional relevant 3.1 - term given Act-wide meaning
provider
155
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
431 Section 910A qualified tax relevant 3.1 - term given Act-wide meaning
provider
431 Section 910A recent advising history 3.1 - term given Act-wide meaning
431 Section 910A recklessness 3 - all terms in s 9
431 Section 910A Reference Checking 2 - no defined term if not
and Information frequently used
Sharing Protocol
431 Section 910A Register of Relevant 3.1 - term given Act-wide meaning
Providers
431 Section 910A registration prohibition 3.1 - term given Act-wide meaning
order
431 Section 910A registration suspension 3.1 - term given Act-wide meaning
order
431 Section 910A relevant financial 3.1 - term given Act-wide meaning
products
431 Section 910A relevant provider 3.3 - term used with same meaning
throughout Act
431 Section 910A reportable situation 3.3 - term used with same meaning
throughout Act
431 Section 910A representative 3.3 - term used with same meaning
throughout Act
431 Section 910A response period 3.1 - term given Act-wide meaning
431 Section 910A restricted civil penalty 3.3 - term used with same meaning
provision throughout Act
431 Section 910A supervisor 3.1 - term given Act-wide meaning
431 Section 910A suspension period 3.1 - term given Act-wide meaning
431 Section 910A tax (financial) advice 3.1 - term given Act-wide meaning
service
431 Section 910A Tax Practitioners 3.1 - term given Act-wide meaning
Board
156
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
432 Section 910D Insurance fulfilment 2 - no defined term if not
provider frequently used
433 Paragraph 910D(a) Insurance fulfilment 2 - no defined term if not
provider frequently used
434 Subparagraph Insurance fulfillment 2 - no defined term if not
911A(2)(ek)(ii) provider frequently used
436 Subsection 911D(1) in this jurisdiction 6 - bold italics only used when
defining
437 Subsection 911D(2) in this jurisdiction 6 - bold italics only used when
defining
438 Subparagraph insurance fulfilment 2 - no defined term if not
912A(1)(ca)(i) providers frequently used
439 Paragraph 912A(1)(cb) person with 2 - no defined term if not
responsibilities in frequently used
relation to an
Australian passport
fund
440 Subsection 912A(6) person with 2 - no defined term if not
responsibilities in frequently used
relation to an
Australian passport
fund
440 Subsection 912A(6) regulated 3.3 - term used with same meaning
superannuation fund throughout Act
440 Subsection 912A(6) RSE licensee 3.1 - term given Act-wide meaning
442 Subsection 912DAA(8) knowledge 3 - all terms in s 9
442 Subsection 912DAA(8) recklessness 3 - all terms in s 9
443 Subsection 912DAB(9) knowledge 3 - all terms in s 9
443 Subsection 912DAB(9) recklessness 3 - all terms in s 9
444 Subsection 912EA(6) knowledge 3 - all terms in s 9
444 Subsection 912EA(6) recklessness 3 - all terms in s 9
157
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
445 Subsection 912EB(12) knowledge 3 - all terms in s 9
445 Subsection 912EB(12) recklessness 3 - all terms in s 9
453 Paragraph 915C(1)(e) person with 2 - no defined term if not
responsibilities in frequently used
relation to an
Australian passport
fund
454 Subsection 915C(5) person with 2 - no defined term if not
responsibilities in frequently used
relation to an
Australian passport
fund
456 Subsection 917A(2) within authority 6 - bold italics only used when
defining
457 Paragraphs 917A(3)(d) within authority 6 - bold italics only used when
and (e) defining
459 Subsection 921B(4) provisional relevant 3.1 - term given Act-wide meaning
(note) provider
460 Subsection 922L(1) (not notice provision 2 - no defined term if not
including the notes) frequently used
460 Subsection 922L(1) (not notice provision 6 - bold italics only used when
including the notes) defining
461 Paragraph 922M(1)(a) notice provision 2 - no defined term if not
frequently used
462 Subsection 922M(1) notice provision 2 - no defined term if not
(note) frequently used
469 Paragraph 946AA(1)(c) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
469 Paragraph 946AA(1)(c) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
471 Paragraph 947D(1)(b) AFCA regulated 5 - intuitive labelling
superannuation scheme
472 Subsection 947D(5) MySuper product 3.3 - term used with same meaning
throughout Act
158
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
473 Section 952B (heading) defective 4 - consistent and intuitive
headings for definition sections
473 Section 952B (heading) disclosure document or 4 - consistent and intuitive
statement headings for definition sections
474 Section 953A (heading) defective 4 - consistent and intuitive
headings for definition sections
474 Section 953A (heading) disclosure document or 4 - consistent and intuitive
statement headings for definition sections
475 Section 960 anniversary day 3.1 - term given Act-wide meaning
475 Section 960 asset-based fee 3.3 - term used with same meaning
throughout Act
475 Section 960 basic banking product 3.1 - term given Act-wide meaning
475 Section 960 benefit ratio 3.1 - term given Act-wide meaning
475 Section 960 conflicted 3.1 - term given Act-wide meaning
remuneration
475 Section 960 consumer credit 3.1 - term given Act-wide meaning
insurance
475 Section 960 custodian 3.2 - term with different meanings
in different areas of the Act
475 Section 960 fee disclosure 3.3 - term used with same meaning
statement throughout Act
475 Section 960 fee recipient 3.1 - term given Act-wide meaning
475 Section 960 group life policy for 2 - no defined term if not
members of a frequently used
superannuation entity
475 Section 960 life policy for a 2 - no defined term if not
member of a default frequently used
superannuation entity
475 Section 960 ongoing fee 3.3 - term used with same meaning
throughout Act
475 Section 960 ongoing fee 3.3 - term used with same meaning
arrangement throughout Act
159
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
475 Section 960 policy cost 3.1 - term given Act-wide meaning
475 Section 960 reasonable 3.1 - term given Act-wide meaning
investigation
475 Section 960 reasonably apparent 3.2 - term with different meanings
in different areas of the Act
475 Section 960 regulated 3.3 - term used with same meaning
superannuation fund throughout Act
475 Section 960 renewal period 3.1 - term given Act-wide meaning
475 Section 960 representative 3.3 - term used with same meaning
throughout Act
475 Section 960 responsible licensee 3.1 - term given Act-wide meaning
475 Section 960 volume-based shelf- 3.3 - term used with same meaning
space fee throughout Act
476 Section 961C reasonably apparent 3.2 - term with different meanings
in different areas of the Act
478 Section 961P responsible licensee 3.1 - term given Act-wide meaning
479 Subparagraph life policy for a 2 - no defined term if not
963B(1)(b)(ii) member of a default frequently used
superannuation entity
480 Sub-subparagraph clawback requirements 3 - all terms in s 9
963B(1)(b)(iii)(B)
481 Subsections 963B(2) life policy for a 2 - no defined term if not
and (3) member of a default frequently used
superannuation entity
482 Section 963BA benefit ratio 4 - consistent and intuitive
(heading) requirements and headings for definition sections
clawback requirements
483 Section 964H reasonably apparent 3.2 - term with different meanings
in different areas of the Act
485 Subsection 984B(3) derivative client retail 2 - no defined term if not
money frequently used
160
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
486 Section 985A (heading) contract of insurance 4 - consistent and intuitive
and insured headings for definition sections
487 Paragraph 985A(2)(a) life policy 3.1 - term given Act-wide meaning
488 Section 989A financial year 3.2 - term with different meanings
in different areas of the Act
491 Section 994A appropriate 3.1 - term given Act-wide meaning
491 Section 994A complaint 3.2 - term with different meanings
in different areas of the Act
491 Section 994A dealing 3.2 - term with different meanings
in different areas of the Act
491 Section 994A distribution condition 2 - no defined term if not
frequently used
491 Section 994A distribution 3.1 - term given Act-wide meaning
information
491 Section 994A excluded conduct 3.1 - term given Act-wide meaning
491 Section 994A excluded dealing 2 - no defined term if not
frequently used
491 Section 994A financial product 3.2 - term with different meanings
in different areas of the Act
491 Section 994A MySuper product 3.3 - term used with same meaning
throughout Act
491 Section 994A regulated person 3.2 - term with different meanings
in different areas of the Act
491 Section 994A regulated sale 3.2 - term with different meanings
in different areas of the Act
491 Section 994A reporting period 3.2 - term with different meanings
in different areas of the Act
491 Section 994A retail product 3.1 - term given Act-wide meaning
distribution conduct
491 Section 994A review period 3.1 - term given Act-wide meaning
491 Section 994A review triggers 3.1 - term given Act-wide meaning
161
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
491 Section 994A target market 3.3 - term used with same meaning
throughout Act
491 Section 994A target market 3.3 - term used with same meaning
determination throughout Act
492 Subsection 994AA(1) financial product 3.2 - term with different meanings
in different areas of the Act
493 Paragraph 994B(1)(ba) target market 3.3 - term used with same meaning
determination for throughout Act
financial products
494 Subsection 994B(8A) appropriate 3.1 - term given Act-wide meaning
495 Paragraph 994G(b) excluded conduct 3.1 - term given Act-wide meaning
496 Section 994K provisions of this Part 2 - no defined term if not
frequently used
497 Subsection 994L(8) provisions of this Part 2 - no defined term if not
frequently used
498 Section 1010C sale or purchase 4 - consistent and intuitive
(heading) headings for definition sections
499 Paragraph 1010C(2)(a) offer 6 - bold italics only used when
defining
500 Paragraph 1010C(2)(a) invite 6 - bold italics only used when
defining
501 Paragraph 1010C(2)(b) offer 6 - bold italics only used when
defining
502 Paragraph 1010C(2)(b) invite 6 - bold italics only used when
defining
503 Section 1011B issue statement 3.1 - term given Act-wide meaning
503 Section 1011B offer 3.2 - term with different meanings
in different areas of the Act
503 Section 1011B regulated person 3.2 - term with different meanings
in different areas of the Act
503 Section 1011B responsible person 3.1 - term given Act-wide meaning
162
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
503 Section 1011B sale 3.2 - term with different meanings
in different areas of the Act
503 Section 1011B sale statement 3.1 - term given Act-wide meaning
504 Subsection 1012A(2) client 3.3 - term used with same meaning
throughout Act
504 Subsection 1012A(2) recommendation 3.1 - term given Act-wide meaning
situation
504 Subsection 1012A(2) relevant conduct 3.1 - term given Act-wide meaning
505 Subsection 1012B(2) client 3.3 - term used with same meaning
throughout Act
505 Subsection 1012B(2) issue situation 3.1 - term given Act-wide meaning
505 Subsection 1012B(2) relevant conduct 4 - consistent and intuitive
headings for definition sections
506 Subsection 1012C(2) sale situation 3.1 - term given Act-wide meaning
506 Subsection 1012C(2) relevant conduct 3.1 - term given Act-wide meaning
506 Subsection 1012C(2) client 3.3 - term used with same meaning
throughout Act
508 Section 1012I (heading) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
508 Section 1012I (heading) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
509 Subsection 1012I(2) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
509 Subsection 1012I(2) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
510 Subsections 1013A(1) issue statement 3.1 - term given Act-wide meaning
and (2)
510 Subsections 1013A(1) sale Statement 3.1 - term given Act-wide meaning
and (2)
511 Subsection 1013A(3) responsible person 3.1 - term given Act-wide meaning
163
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
513 Subsection 1016A(1) RSA 1 - not defined if ordinary meaning
(paragraph (d) of the sufficient or term is redundant
definition of relevant
financial product)
513 Subsection 1016A(1) RSA product 1 - not defined if ordinary meaning
(paragraph (d) of the sufficient or term is redundant
definition of relevant
financial product)
514 Subsection 1016A(1) RSA provider 3.1 - term given Act-wide meaning
514 Subsection 1016A(1) standard employer- 3.1 - term given Act-wide meaning
sponsor
514 Subsection 1016A(1) standard employer- 3.1 - term given Act-wide meaning
sponsored fund
514 Subsection 1016A(1) standard employer- 3.1 - term given Act-wide meaning
sponsored member
515 Subparagraphs RSA 1 - not defined if ordinary meaning
1016A(2)(e)(i) and (iii) sufficient or term is redundant
515 Subparagraphs RSA product 1 - not defined if ordinary meaning
1016A(2)(e)(i) and (iii) sufficient or term is redundant
516 Subsection 1017B(9) MySuper product 3.3 - term used with same meaning
(definition of MySuper throughout Act
product)
517 Subsection 1017BA(5) choice product 3.3 - term used with same meaning
throughout Act
517 Subsection 1017BA(5) life policy 3.1 - term given Act-wide meaning
517 Subsection 1017BA(5) MySuper product 3.3 - term used with same meaning
throughout Act
517 Subsection 1017BA(5) pension 3.2 - term with different meanings
in different areas of the Act
517 Subsection 1017BA(5) regulated 3.3 - term used with same meaning
superannuation fund throughout Act
518 Subsection 1017BB(6) MySuper product 3.3 - term used with same meaning
throughout Act
518 Subsection 1017BB(6) pooled superannuation 3.3 - term used with same meaning
trust throughout Act
164
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
519 Subsection 1017BB(6) regulated 3.3 - term used with same meaning
(definition of small superannuation fund throughout Act
APRA fund)
520 Section 1017C RSA 1 - not defined if ordinary meaning
(heading) sufficient or term is redundant
520 Section 1017C RSA product 1 - not defined if ordinary meaning
(heading) sufficient or term is redundant
521 Paragraph 1017C(1)(b) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
521 Paragraph 1017C(1)(b) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
522 Subsection 1017C(2A) RSA 1 - not defined if ordinary meaning
(heading) sufficient or term is redundant
522 Subsection 1017C(2A) RSA product 1 - not defined if ordinary meaning
(heading) sufficient or term is redundant
523 Subsection 1017C(2A) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
523 Subsection 1017C(2A) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
524 Subsection 1017C(3A) RSA 1 - not defined if ordinary meaning
(heading) sufficient or term is redundant
524 Subsection 1017C(3A) RSA product 1 - not defined if ordinary meaning
(heading) sufficient or term is redundant
525 Subsection 1017C(3A) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
525 Subsection 1017C(3A) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
526 Subsection 1017C(5) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
526 Subsection 1017C(5) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
527 Subsection 1017C(9) RSA 1 - not defined if ordinary meaning
(paragraph (b) of the sufficient or term is redundant
definition of concerned
person)
527 Subsection 1017C(9) RSA product 1 - not defined if ordinary meaning
(paragraph (b) of the sufficient or term is redundant
165
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
definition of concerned
person)
528 Subparagraph RSA 1 - not defined if ordinary meaning
1017D(1)(b)(iii) sufficient or term is redundant
528 Subparagraph RSA product 1 - not defined if ordinary meaning
1017D(1)(b)(iii) sufficient or term is redundant
529 Subparagraphs RSA 1 - not defined if ordinary meaning
1017DA(1)(b)(i) and (ii) sufficient or term is redundant
529 Subparagraphs RSA product 1 - not defined if ordinary meaning
1017DA(1)(b)(i) and (ii) sufficient or term is redundant
530 Subsection 1017DA(4) RSA provider 3.1 - term given Act-wide meaning
531 Subparagraph RSA 1 - not defined if ordinary meaning
1019A(1)(a)(v) sufficient or term is redundant
531 Subparagraph RSA product 1 - not defined if ordinary meaning
1019A(1)(a)(v) sufficient or term is redundant
532 Section 1019C date of offer 1 - not defined if ordinary meaning
sufficient or term is redundant
532 Section 1019C offeree 1 - not defined if ordinary meaning
sufficient or term is redundant
532 Section 1019C offeror 5 - intuitive labelling
532 Section 1019C offer to which this 1 - not defined if ordinary meaning
Division applies sufficient or term is redundant
533 Subsection 1019I(1) date of offer 6 - bold italics only used when
defining
534 Section 1020AA crossing 2 - no defined term if not
frequently used
534 Section 1020AA section 1020B 3.1 - term given Act-wide meaning
products
534 Section 1020AA securities lending 3.2 - term with different meanings
arrangement in different areas of the Act
535 Section 1020AH CGS depository 4 - consistent and intuitive
interest headings for definition sections
535 Section 1020AH information statement 4 - consistent and intuitive
headings for definition sections
166
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
535 Section 1020AH regulated person 4 - consistent and intuitive
headings for definition sections
536 Subsection 1020B(1) section 1020B 3.1 - term given Act-wide meaning
products
537 Section 1021B defective 4 - consistent and intuitive
(heading) headings for definition sections
537 Section 1021B disclosure document or 4 - consistent and intuitive
(heading) statement headings for definition sections
537 Section 1021B regulated person 4 - consistent and intuitive
(heading) headings for definition sections
538 Subsection 1021(B)(1) regulated person 3.2 - term with different meanings
(definition of regulated in different areas of the Act
person)
539 Section 1022A defective 4 - consistent and intuitive
(heading) headings for definition sections
539 Section 1022A disclosure document or 3.1 - term given Act-wide meaning
(heading) statement
540 Subsection 1022A(1) regulated person 3.2 - term with different meanings
(definition of regulated in different areas of the Act
person)
541 Section 1023B ASIC Act financial 2 - no defined term if not
product frequently used
541 Section 1023B financial product 4 - consistent and intuitive
headings for definition sections
541 Section 1023B product intervention 3.1 - term given Act-wide meaning
order
541 Section 1023B regulated sale 3.2 - term with different meanings
in different areas of the Act
542 Paragraph 1040B(1)(b) Division 3 financial 3.1 - term given Act-wide meaning
product
543 Paragraphs 1041F(3)(a) superannuation entity 3.3 - term used with same meaning
and (b) throughout Act
544 Paragraph 1041F(3)(c) RSA 1 - not defined if ordinary meaning
sufficient or term is redundant
544 Paragraph 1041F(3)(c) RSA product 1 - not defined if ordinary meaning
sufficient or term is redundant
167
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
545 Subparagraphs RSA provider 3.1 - term given Act-wide meaning
1041H(2)(b)(iv) to (ix)
545 Subparagraphs standard employer- 3.1 - term given Act-wide meaning
1041H(2)(b)(iv) to (ix) sponsor
545 Subparagraphs superannuation entity 3.3 - term used with same meaning
1041H(2)(b)(iv) to (ix) throughout Act
546 Section 1042A able to be traded 3.3 - term used with same meaning
throughout Act
546 Section 1042A N/A 4 - consistent and intuitive
headings for definition sections
546 Section 1042A Division 3 financial 3.1 - term given Act-wide meaning
products
546 Section 1042A generally available 3.2 - term with different meanings
in different areas of the Act
546 Section 1042A information 3.2 - term with different meanings
in different areas of the Act
546 Section 1042A inside information 3.1 - term given Act-wide meaning
546 Section 1042A material effect 3.2 - term with different meanings
in different areas of the Act
546 Section 1042A procure 3.2 - term with different meanings
in different areas of the Act
546 Section 1042A relevant Division 3 3.1 - term given Act-wide meaning
financial products
547 Section 1042C generally available 4 - consistent and intuitive
(heading) headings for definition sections
548 Section 1042D material effect 4 - consistent and intuitive
(heading) headings for definition sections
549 Section 1042E (heading) able to be traded 4 - consistent and intuitive
headings for definition sections
550 Section 1042F (heading) procure 4 - consistent and intuitive
headings for definition sections
551 Paragraphs 1043A(1)(b) procure 3.2 - term with different meanings
and (2)(b) in different areas of the Act
552 Paragraph 1052E(1)(b) AFCA regulated 5 - intuitive labelling
superannuation scheme
168
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
553 Paragraph 1053(1)(a) AFCA regulated 5 - intuitive labelling
superannuation scheme
554 Subparagraph AFCA regulated 5 - intuitive labelling
1053(1)(a)(i) superannuation scheme
555 Subsection 1053(1)(note AFCA regulated 5 - intuitive labelling
2) superannuation scheme
556 Section 1053A AFCA regulated 5 - intuitive labelling
(heading) superannuation scheme
557 Section 1053A AFCA regulated 5 - intuitive labelling
superannuation scheme
558 Paragraph 1054(1)(b) AFCA regulated 5 - intuitive labelling
superannuation scheme
559 Paragraph 1055(7)(b) AFCA regulated 5 - intuitive labelling
superannuation scheme
560 Subsection 1058(2A) investigating authority 2 - no defined term if not
frequently used
561 Section 1073B transfer 3.2 - term with different meanings
in different areas of the Act
561 Section 1073B transfer 4 - consistent and intuitive
headings for definition sections
561 Section 1073B transfer document 2 - no defined term if not
frequently used
562 Section 1074B transfer 3.2 - term with different meanings
in different areas of the Act
562 Section 1074B transfer document 2 - no defined term if not
frequently used
563 Paragraph 1074F(a) certificate cancellation 2 - no defined term if not
provisions frequently used
564 Subsection 1101B(12) compensation rules 3.1 - term given Act-wide meaning
(definition of
compensation rules)
565 Subsection 1200F(1) general advice 3.3 - term used with same meaning
(table item 4) throughout Act
566 Paragraph 1240C(2)(b) issue situation 3.1 - term given Act-wide meaning
(paragraph 636(1)(gb))
169
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
567 Subsection 1241B(3) representative 3.3 - term used with same meaning
throughout Act
568 Subsection 1241F(6) regulated 3.3 - term used with same meaning
superannuation fund throughout Act
568 Subsection 1241F(6) RSE licensee 3.1 - term given Act-wide meaning
569 Subsection 1317GA(1) fee recipient 3.1 - term given Act-wide meaning
570 Subsection 1317GB(1) fee recipient 3.1 - term given Act-wide meaning
571 Section 9 foreign recognition 3.1 - term given Act-wide meaning
scheme
571 Section 9 law of a recognised 3.1 - term given Act-wide meaning
jurisdiction
571 Section 9 recognised jurisdiction 3.1 - term given Act-wide meaning
572 Section 1200A Mutual recognition of 4 - consistent and intuitive
(heading) securities offers headings for definition sections
573 Subsection 1200A(1) foreign recognition 3.1 - term given Act-wide meaning
scheme
573 Subsection 1200A(1) law of a recognised 3.1 - term given Act-wide meaning
jurisdiction
573 Subsection 1200A(1) offer 3.2 - term with different meanings
in different areas of the Act
573 Subsection 1200A(1) offeror 5 - intuitive labelling
573 Subsection 1200A(1) recognised jurisdiction 3.1 - term given Act-wide meaning
573 Subsection 1200A(1) recognised offer 3 - all terms in s 9
573 Subsection 1200A(1) securities 3.2 - term with different meanings
in different areas of the Act
574 Section 9 APFRN 3.1 - term given Act-wide meaning
170
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
574 Section 9 Australian Passport 3.1 - term given Act-wide meaning
Fund Registration
Number
574 Section 9 collective investment 3.1 - term given Act-wide meaning
fund
574 Section 9 consideration period 3.1 - term given Act-wide meaning
575 Section 9 (definition of home economy 3.3 - term used with same meaning
home economy) throughout Act
576 Section 9 (definition of home regulator 3.3 - term used with same meaning
home regulator) throughout Act
577 Section 9 (definition of host economy 3.3 - term used with same meaning
host economy) throughout Act
578 Section 9 (definition of host regulator 3.3 - term used with same meaning
host regulator) throughout Act
579 Section 9 (definition of Memorandum of 3.3 - term used with same meaning
Memorandum of Cooperation throughout Act
Cooperation)
580 Section 9 (definition of operator 3.3 - term used with same meaning
operator) throughout Act
581 Section 9 participating economy 3.1 - term given Act-wide meaning
582 Section 9 (definition of passport fund 3.3 - term used with same meaning
passport fund) throughout Act
583 Section 9 proposed operator 3.1 - term given Act-wide meaning
583 Section 9 regulated CIS 3.1 - term given Act-wide meaning
584 Section 9 (definition of sub-fund 3.2 - term with different meanings
sub-fund) in different areas of the Act
585 Section 1210 participating economy 3.1 - term given Act-wide meaning
585 Section 1210 participating economy 4 - consistent and intuitive
headings for definition sections
586 Section 1211A passport rules 4 - consistent and intuitive
(heading) headings for definition sections
171
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
587 Section 1213D consideration period 4 - consistent and intuitive
(heading) headings for definition sections
588 Subsection 1213E(1) managed investment 6 - bold italics only used when
scheme defining
590 Section 9 property recovery 3.1 - term given Act-wide meaning
provisions
590 Section 9 winding up provisions 3.1 - term given Act-wide meaning
591 Section 1233 (heading) property 4 - consistent and intuitive
headings for definition sections
592 Section 1233H sub-fund 4 - consistent and intuitive
(heading) headings for definition sections
593 Section 1233L (heading) sub-fund 4 - consistent and intuitive
headings for definition sections
594 Section 1236A property and receiver- 4 - consistent and intuitive
(heading) subfund of a CCIV headings for definition sections
595 Section 1240 securities 3.2 - term with different meanings
in different areas of the Act
596 Paragraph 1241J(1)(a) non-licensee 6 - bold italics only used when
defining
597 Paragraph 1241J(1)(b) client 6 - bold italics only used when
defining
598 Subsection 1241J(1) corporate director 6 - bold italics only used when
defining
600 Section 9 compensation 3.1 - term given Act-wide meaning
proceedings
600 Section 9 compliance period 3.1 - term given Act-wide meaning
600 Section 9 contravention 3.1 - term given Act-wide meaning
proceedings
600 Section 9 decision 3 - all terms in s 9
600 Section 9 detriment 3.2 - term with different meanings
in different areas of the Act
600 Section 9 enforcement 3.1 - term given Act-wide meaning
proceedings
172
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
600 Section 9 infringement notice 3.2 - term with different meanings
in different areas of the Act
600 Section 9 pecuniary penalty 3.1 - term given Act-wide meaning
applicable
600 Section 9 penalty applicable 3.1 - term given Act-wide meaning
600 Section 9 public interest 3.1 - term given Act-wide meaning
proceedings
600 Section 9 specified 3.3 - term used with same meaning
throughout Act
601 Division 1 of Part 9.2 body corporate 3.2 - term with different meanings
in different areas of the Act
601 Division 1 of Part 9.2 decision 3 - all terms in s 9
601 Division 1 of Part 9.2 registered 3 - all terms in s 9
603 Paragraph 1317AAB(f) trustee 3.3 - term used with same meaning
throughout Act
604 Section 1317ADA detriment 4 - consistent and intuitive
(heading) headings for definition sections
605 Section 1317DAAA compensation 3.1 - term given Act-wide meaning
proceedings
606 Section 1317DAA N/A 3 - all terms in s 9
(heading)
607 Subsection compensation 3.1 - term given Act-wide meaning
1317DAA(1) proceedings
607 Subsection compliance period 3.1 - term given Act-wide meaning
1317DAA(1)
607 Subsection contravention 3.1 - term given Act-wide meaning
1317DAA(1) proceedings
607 Subsection enforcement 3.1 - term given Act-wide meaning
1317DAA(1) proceedings
607 Subsection infringement notice 3.2 - term with different meanings
1317DAA(1) in different areas of the Act
607 Subsection penalty and disclosure 2 - no defined term if not
1317DAA(1) proceedings frequently used
173
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
607 Subsection public interest 3.1 - term given Act-wide meaning
1317DAA(1) proceedings
609 Subparagraphs penalty and disclosure 2 - no defined term if not
1317DAG(4)(b)(i) and proceedings frequently used
(iii) and 4(d)(i) and (iii)
610 Section 1317DAH compliance period 4 - consistent and intuitive
(heading) headings for definition sections
611 Subsection compliance period 6 - bold italics only used when
1317DAH(1) defining
612 Section 1363 the regulations 1 - not defined if ordinary meaning
sufficient or term is redundant
612 Section 1363 prescribed 1 - not defined if ordinary meaning
sufficient or term is redundant
613 Section 1367 prescribed 1 - not defined if ordinary meaning
sufficient or term is redundant
614 Paragraph 11(2)(a) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Paragraph 127(4)(a) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Section 172 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 173 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 174 (heading) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Section 174 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Subsection 183(1) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Division 2 of Part 10 Takeovers Panel 5 - intuitive labelling
(heading) (ASIC Act)
614 Section 184 (heading) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Section 184 (ASIC Act) Takeovers Panel 5 - intuitive labelling
174
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
614 Subsection 185(1) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Paragraph 185(1)(b) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Subsection 185(1A) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Subsections 185(2) and Takeovers Panel 5 - intuitive labelling
(3) (ASIC Act)
614 Section 186 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Division 3 of Part 10 Takeovers Panel 5 - intuitive labelling
(heading) (ASIC Act)
614 Section 187 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 188 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 190 (heading) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Subsections 190(1) and Takeovers Panel 5 - intuitive labelling
(2) (ASIC Act)
614 Section 192 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 193 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 194 (heading) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Section 194 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 195 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 197 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 199 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 200 (heading) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
175
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
614 Paragraph 200(1)(a) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Paragraph 200(1)(b) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Section 201 (ASIC Act) Takeovers Panel 5 - intuitive labelling
614 Section 201A (heading) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Section 201A (ASIC Takeovers Panel 5 - intuitive labelling
Act)
614 Subparagraph 243(a)(i) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
614 Paragraph 246(1)(e) Takeovers Panel 5 - intuitive labelling
(ASIC Act)
615 Subsection 655A(1) Takeovers Panel 5 - intuitive labelling
(note)
615 Paragraph 655B(1)(b) Takeovers Panel 5 - intuitive labelling
615 Subsections 656A(1), Takeovers Panel 5 - intuitive labelling
(2) and (3)
615 Subsection 656A(5) Takeovers Panel 5 - intuitive labelling
615 Paragraph 656A(5)(a) Takeovers Panel 5 - intuitive labelling
615 Paragraph 656A(5)(b) Takeovers Panel 5 - intuitive labelling
615 Subsection 656A(5) Takeovers Panel 5 - intuitive labelling
615 Section 656B Takeovers Panel 5 - intuitive labelling
615 Subsections 657A(1), Takeovers Panel 5 - intuitive labelling
(2), (3) and (4)
615 Subsection 657A(6) Takeovers Panel 5 - intuitive labelling
615 Paragraph 657A(6)(b) Takeovers Panel 5 - intuitive labelling
176
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision Definitions/Topic Principle
reference
615 Subsection 657A(7) Takeovers Panel 5 - intuitive labelling
615 Section 657B (heading) Takeovers Panel 5 - intuitive labelling
615 Section 657B Takeovers Panel 5 - intuitive labelling
615 Section 657C Takeovers Panel 5 - intuitive labelling
615 Section 657D (heading) Takeovers Panel 5 - intuitive labelling
615 Section 657D Takeovers Panel 5 - intuitive labelling
615 Section 657E Takeovers Panel 5 - intuitive labelling
615 Section 657EA Takeovers Panel 5 - intuitive labelling
(heading)
615 Section 657EA Takeovers Panel 5 - intuitive labelling
615 Section 657EB Takeovers Panel 5 - intuitive labelling
615 Section 657F (heading) Takeovers Panel 5 - intuitive labelling
615 Section 657G (heading) Takeovers Panel 5 - intuitive labelling
615 Subsection 657G(1) Takeovers Panel 5 - intuitive labelling
615 Paragraph 657G(2)(b) Takeovers Panel 5 - intuitive labelling
615 Paragraphs 657G(2)(c) Takeovers Panel 5 - intuitive labelling
and (d)
615 Section 657H (heading) Takeovers Panel 5 - intuitive labelling
615 Section 657H Takeovers Panel 5 - intuitive labelling
615 Section 658A (heading) Takeovers Panel 5 - intuitive labelling
177
References in Part 1 of Schedule 2 to the Bill
Item Provision Definitions/Topic Principle
reference
615 Section 658A Takeovers Panel 5 - intuitive labelling
615 Section 658B (heading) Takeovers Panel 5 - intuitive labelling
615 Section 658B Takeovers Panel 5 - intuitive labelling
615 Section 658C (heading) Takeovers Panel 5 - intuitive labelling
615 Section 658C Takeovers Panel 5 - intuitive labelling
615 Section 658D (heading) Takeovers Panel 5 - intuitive labelling
615 Section 659A (heading) Takeovers Panel 5 - intuitive labelling
615 Section 659A Takeovers Panel 5 - intuitive labelling
615 Section 659AA Takeovers Panel 5 - intuitive labelling
615 Paragraph 659B(3)(b) Takeovers Panel 5 - intuitive labelling
615 Subsection 659C(1) Takeovers Panel 5 - intuitive labelling
615 Section 1240D Takeovers Panel 5 - intuitive labelling
178
Attachment 2: References in Part 3 of
Schedule 2 to the Bill
Item Provision reference Definitions/Topic Principle
618 Paragraph (hba) of Schedule 1 to AFCA scheme 3.1 - term given Act-wide
the Administrative Decisions meaning
(Judicial Review) Act 1977
619 Subsection 52N-1(3) of the financial product 3.2 - term with different
Aged Care Act 1997 meanings in different areas
of the Act
620 Section 5 (definition of Australian financial 3.3 - term used with same
Australian financial services services licence meaning throughout Act
licence) of the Anti-money
Laundering and Counter-
Terrorism Financing Act 2006
621 Section 5 (definition of custodial or depository 3.1 - term given Act-wide
providing a custodial depository service meaning
service) of the Anti-money
Laundering and Counter-
Terrorism Financing Act 2006
622 Section 5 (definition of security) security 3.2 - term with different
of the Anti-money Laundering meanings in different areas
and Counter-Terrorism of the Act
Financing Act 2006
623 Section 7 (paragraphs (a), (e) market licensee 3.3 - term used with same
and (g) of the definition of meaning throughout Act
market infrastructure entity) of
the ASIC Supervisory Cost
Recovery Levy Act 2017
623 Section 7 (paragraphs (a), (e) CS facility licensee 3.3 - term used with same
and (g) of the definition of meaning throughout Act
market infrastructure entity) of
the ASIC Supervisory Cost
Recovery Levy Act 2017
623 Section 7 (paragraphs (a), (e) derivative trade 3.3 - term used with same
and (g) of the definition of repository licensee meaning throughout Act
market infrastructure entity) of
the ASIC Supervisory Cost
Recovery Levy Act 2017
179
References in Part 3 of Schedule 2 to the Bill
Item Provision reference Definitions/Topic Principle
624 Subsection 57(2) (note) of the AFCA scheme 3.1 - term given Act-wide
Australian Defence Force Cover meaning
Act 2015
625 Paragraph 56(5)(aa) of the AFCA scheme 3.1 - term given Act-wide
APRA Act meaning
626 Subsection 5(1) (definition of financial market 3.3 - term used with same
financial market) of the Banking meaning throughout Act
Act 1959
627 Subsection 5(1) (definition of listing rules 3.3 - term used with same
listing rules) of the Banking Act meaning throughout Act
1959
628 Section 11CAA (definition of clearing and settlement 3.3 - term used with same
clearing and settlement facility) facility meaning throughout Act
of the Banking Act 1959
629 Section 11CAA (definition of operating rules 3.3 - term used with same
operating rules) of the Banking meaning throughout Act
Act 1959
630 Paragraph 38B(2)(c) of the derivative 3.2 - term with different
Banking Act 1959 meanings in different areas
of the Act
631 Subsection 277(9) of the Carbon Australian CS facility 3.3 - term used with same
Credits (Carbon Farming licence meaning throughout Act
Initiative) 2011
631 Subsection 277(9) of the Carbon Australian derivative 3.3 - term used with same
Credits (Carbon Farming trade repository licence meaning throughout Act
Initiative) 2011
631 Subsection 277(9) of the Carbon financial market 3.3 - term used with same
Credits (Carbon Farming meaning throughout Act
Initiative) 2011
631 Subsection 277(9) of the Carbon officer 3.2 - term with different
Credits (Carbon Farming meanings in different areas
Initiative) 2011 of the Act
631 Subsection 277(9) of the Carbon operating rules 3.3 - term used with same
Credits (Carbon Farming meaning throughout Act
Initiative) 2011
631 Subsection 277(9) of the Carbon prescribed derivative 3.1 - term given Act-wide
Credits (Carbon Farming trade repository meaning
Initiative) 2011
632 Subsection 50(8) of the Clean Australian CS facility 3.3 - term used with same
Energy Regulator Act 2011 licence meaning throughout Act
180
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision reference Definitions/Topic Principle
632 Subsection 50(8) of the Clean Australian derivative 3.3 - term used with same
Energy Regulator Act 2011 trade repository licence meaning throughout Act
632 Subsection 50(8) of the Clean financial market 3.3 - term used with same
Energy Regulator Act 2011 meaning throughout Act
632 Subsection 50(8) of the Clean officer 3.2 - term with different
Energy Regulator Act 2011 meanings in different areas
of the Act
632 Subsection 50(8) of the Clean operating rules 3.3 - term used with same
Energy Regulator Act 2011 meaning throughout Act
632 Subsection 50(8) of the Clean prescribed derivative 3.1 - term given Act-wide
Energy Regulator Act 2011 trade repository meaning
633 Subsection 3(1) (definition of clearing and settlement 3.3 - term used with same
clearing and settlement facility) facility meaning throughout Act
of the Commonwealth Inscribed
Stock Act 1911
634 Paragraph 26-15(b) of the financial service 3.3 - term used with same
Corporations (Aboriginal and meaning throughout Act
Torres Strait Islander) Act 2006
635 Section 700-1 (paragraph (h) of licensed trustee 3.3 - term used with same
the definition of affairs) of the company meaning throughout Act
Corporations (Aboriginal and
Torres Strait Islander) Act 2006
640 Subparagraph 5(2)(e)(i) of the financial service 3.3 - term used with same
Financial Sector (Collection of meaning throughout Act
Data) Act 2001
641 Subparagraph 13(4F)(c)(ii) of financial service 3.3 - term used with same
the Financial Sector (Collection meaning throughout Act
of Data) Act 2001
642 Section 31 (definition of arrangement 3.2 - term with different
arrangement) of the Financial meanings in different areas
Sector (Collection of Data) Act of the Act
2001
643 Section 31 (definition of financial product 3.2 - term with different
financial product) of the meanings in different areas
Financial Sector (Collection of of the Act
Data) Act 2001
644 Subsection 3(1) (paragraph (d) financial services 3.3 - term used with same
of the definition of cash dealer) licensee meaning throughout Act
of the Financial Transaction
Reports Act 1988
181
References in Part 3 of Schedule 2 to the Bill
Item Provision reference Definitions/Topic Principle
645 Subsection 3(1) derivative 3.2 - term with different
(subparagraph (d)(ii) of the meanings in different areas
definition of cash dealer) of the of the Act
Financial Transaction Reports
Act 1988
646 Subsection 9(4) of the Financial financial services 3.3 - term used with same
Transaction Reports Act 1988 licensee meaning throughout Act
647 Paragraph 6(3)(b) of the Foreign financial product 3.2 - term with different
Acquisitions and Takeovers Act meanings in different areas
1975 of the Act
648 Subparagraph 128AE(2)(e)(iii) financial services 3.3 - term used with same
of the ITAA 1936 licensee meaning throughout Act
650 Subsection 275-10(5) of the financial services 3.3 - term used with same
ITAA 1997 licensee meaning throughout Act
651 Paragraph 275-15(b) of the retail client 3.3 - term used with same
ITAA 1997 meaning throughout Act
652 Paragraph 275-20(5)(c) of the wholesale client 3.3 - term used with same
ITAA 1997 meaning throughout Act
653 Subparagraphs 275-35(1)(a)(i) financial services 3.3 - term used with same
and (ii) of the ITAA 1997 licensee meaning throughout Act
653 Subparagraphs 275-35(1)(a)(i) financial service 3.3 - term used with same
and (ii) of the ITAA 1997 meaning throughout Act
653 Subparagraphs 275-35(1)(a)(i) wholesale client 3.3 - term used with same
and (ii) of the ITAA 1997 meaning throughout Act
653 Subparagraphs 275-35(1)(a)(i) authorised 3.3 - term used with same
and (ii) of the ITAA 1997 representative meaning throughout Act
654 Subsections 275-35(2) and (3) financial services 3.3 - term used with same
of the ITAA 1997 licensee meaning throughout Act
655 Section 292-330 (note) of the AFCA scheme 3.1 - term given Act-wide
ITAA 1997 meaning
656 Subsection 820-435(3) derivative 3.2 - term with different
(definition of UG on meanings in different areas
derivatives) of the ITAA 1997 of the Act
657 Subsection 820-435(3) derivative 3.2 - term with different
(definition of UL on derivatives) meanings in different areas
of the ITAA 1997 of the Act
182
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision reference Definitions/Topic Principle
658 Subsection 995-1(1) (definition Australian financial 3.3 - term used with same
of Australian financial services services licence meaning throughout Act
licence) of the ITAA 1997
659 Subsection 995-1(1) derivative 3.2 - term with different
(subparagraph (d)(i) of the meanings in different areas
definition of financial entity) of of the Act
the ITAA 1997
660 Subparagraph 23AB(2)(a)(iv) of financial services 3.3 - term used with same
the Income Tax Rates Act 1986 licensee meaning throughout Act
661 Subsection 3(1) (definition of financial market 3.3 - term used with same
financial market) of the meaning throughout Act
Insurance Act
662 Subsection 3(1) (definition of listing rules 3.3 - term used with same
listing rules) of the Insurance meaning throughout Act
Act
663 Subsection 3(1) (paragraph (b) licensed market 3.3 - term used with same
of the definition of securities meaning throughout Act
exchange) of the Insurance Act
664 Paragraph 3A(2)(a) of the general insurance 3.1 - term given Act-wide
Insurance Act product meaning
665 Section 36A (definition of clearing and settlement 3.3 - term used with same
clearing and settlement facility) facility meaning throughout Act
of the Insurance Act
666 Section 36A (definition of operating rules 3.3 - term used with same
operating rules) of the Insurance meaning throughout Act
Act
667 Subsection 50(1) (definition of interest 3.3 - term used with same
prescribed interest) of the meaning throughout Act
Insurance Act
668 Subsection 14A(2) of the financial services law 3.1 - term given Act-wide
Insurance Contracts Act 1984 meaning
669 Subsection 14A(3) of the financial services law 3.1 - term given Act-wide
Insurance Contracts Act 1984 meaning
670 Paragraph 5(3)(b) of the financial product 3.2 - term with different
Interactive Gambling Act 2001 meanings in different areas
of the Act
671 Section 230AAB (definition of clearing and settlement 3.3 - term used with same
clearing and settlement facility) facility meaning throughout Act
of the Life Insurance Act
183
References in Part 3 of Schedule 2 to the Bill
Item Provision reference Definitions/Topic Principle
672 Section 230AAB (definition of operating rules 3.3 - term used with same
operating rules) of the Life meaning throughout Act
Insurance Act
673 Dictionary (definition of financial market 3.3 - term used with same
financial market) of the Life meaning throughout Act
Insurance Act
674 Dictionary (definition of listing listing rules 3.3 - term used with same
rules) of the Life Insurance Act meaning throughout Act
675 Clause 1 of Schedule 2 financial product 3.2 - term with different
(definition of financial product) meanings in different areas
of the Medibank Private Sale of the Act
Act 2006
676 Subclause 6(8) of Schedule 2 security 3.2 - term with different
(definition of security) of the meanings in different areas
Medibank Private Sale Act 2006 of the Act
677 Subsection 4(1) (definition of AFCA 3.1 - term given Act-wide
AFCA) of the Medical Indemnity meaning
Act 2002
678 Subsection 4(1) (definition of financial service 3.3 - term used with same
provide a financial service) of meaning throughout Act
the Medical Indemnity
(Prudential Supervision and
Product Standards) Act 2003
679 Section 5 (definition of financial financial product 3.2 - term with different
product) of the National meanings in different areas
Broadband Network Companies of the Act
Act 2011
680 Subsection 55(8) (definition of security 3.2 - term with different
security) of the National meanings in different areas
Broadband Network Companies of the Act
Act 2011
681 Subsection 5(1) (definition of AFCA scheme 3.1 - term given Act-wide
AFCA scheme) of National meaning
Consumer Credit Protection Act
2009
682 Subsection 5(1) (definition of Australian financial 3.3 - term used with same
Australian financial services services licence meaning throughout Act
licence) of National Consumer
Credit Protection Act 2009
184
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision reference Definitions/Topic Principle
683 Subsection 5(1) (definition of director 3.2 - term with different
director) of the National meanings in different areas
Consumer Credit Protection Act of the Act
2009
684 Paragraph 37B(2)(e) of the AFCA 3.1 - term given Act-wide
National Consumer Credit meaning
Protection Act 2009
685 Paragraph 80(1)(fb) of the AFCA 3.1 - term given Act-wide
National Consumer Credit meaning
Protection Act 2009
686 Subsection 204(1) of Schedule 1 AFCA scheme 3.1 - term given Act-wide
(definition of AFCA scheme) of meaning
the National Consumer Credit
Protection Act 2009
687 Section 5 (paragraph (a) of the security 3.2 - term with different
definition of financial property) meanings in different areas
of the Payment Systems and of the Act
Netting Act 1998
688 Section 5 (Paragraph (c) of the financial market 3.3 - term used with same
definition of financial property) meaning throughout Act
of the Payment Systems and
Netting Act 1998
689 Section 5 (definition of foreign foreign exchange 3.1 - term given Act-wide
exchange contract) of the contract meaning
Payment Systems and Netting
Act 1998
690 Section 5 (subparagraph (a)(i) of licensed CS facility 3.3 - term used with same
the definition of netting market) meaning throughout Act
of the Payment Systems and
Netting Act 1998
691 Paragraph 10(2)(f) of the licensed CS facility 3.3 - term used with same
Payment Systems and Netting meaning throughout Act
Act 1998
692 Section 10 (definition of clearing and settlement 3.3 - term used with same
clearing and settlement facility) facility meaning throughout Act
of the Personal Property
Securities Act 2009
693 Section 10 (paragraph (a) of the financial product 3.2 - term with different
definition of financial product) meanings in different areas
of the Personal Property of the Act
Securities Act 2009
185
References in Part 3 of Schedule 2 to the Bill
Item Provision reference Definitions/Topic Principle
694 Section 10 (paragraphs (c) and derivative 3.2 - term with different
(d) of the definition of meanings in different areas
investment instrument) of the of the Act
Personal Property Securities Act
2009
695 Paragraph 47(1)(a) of the AFCA scheme 3.1 - term given Act-wide
Retirement Savings Accounts meaning
Act 1997
696 Subsection 95(1A) of the AFCA scheme 3.1 - term given Act-wide
Retirement Savings Accounts meaning
Act 1997
697 Subsection 163(12) (paragraph AFCA scheme 3.1 - term given Act-wide
(a) of the definition of do an act meaning
or thing) of the Retirement
Savings Accounts Act 1997
698 Paragraph 182(1A) (paragraph RSA product 1 - not defined if ordinary
(b) of the definition of meaning sufficient or term
regulatory provision) of the is redundant
Retirement Savings Accounts
Act 1997
699 Section 5 (definition of Australian CS facility 3.3 - term used with same
Australian CS facility licence) of licence meaning throughout Act
the Security of Critical
Infrastructure Act 2018
700 Section 5 (definition of Australian derivative 3.3 - term used with same
Australian derivative trade trade repository licence meaning throughout Act
repository licence) of the
Security of Critical
Infrastructure Act 2018
701 Section 5 (definition of Australian market 3.3 - term used with same
Australian market licence) of licence meaning throughout Act
the Security of Critical
Infrastructure Act 2018
702 Section 5 (definition of clearing clearing and settlement 3.3 - term used with same
and settlement facility) of the facility meaning throughout Act
Security of Critical
Infrastructure Act 2018
703 Section 5 (definition of derivative trade 3.3 - term used with same
derivative trade repository) of repository meaning throughout Act
the Security of Critical
Infrastructure Act 2018
186
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision reference Definitions/Topic Principle
704 Section 5 (definition of financial financial benchmark 3.3 - term used with same
benchmark) of the Security of meaning throughout Act
Critical Infrastructure Act 2018
705 Section 5 (paragraph (k) of the financial service 3.3 - term used with same
definition of financial services meaning throughout Act
and markets sector) of the
Security of Critical
Infrastructure Act 2018
706 Section 5 (definition of financial financial services 1 - not defined if ordinary
services business) of the business meaning sufficient or term
Security of Critical is redundant
Infrastructure Act 2018
707 Section 24 (note) of the AFCA scheme 3.1 - term given Act-wide
Superannuation Contributions meaning
Tax (Assessment and Collection)
Act 1997
708 Subsection 10(1) (definition of AFCA scheme 3.1 - term given Act-wide
AFCA scheme) of the SIS Act meaning
709 Subsection 10(1) (definition of Corporations Law 1 - not defined if ordinary
Corporations Law) of the SIS meaning sufficient or term
Act is redundant
710 Subsection 10(1) (definition of financial product 3.2 - term with different
financial product) of the SIS Act meanings in different areas
of the Act
711 Subsection 10(1) (definition of financial product 3.1 - term given Act-wide
financial product advice) of the advice meaning
SIS Act
712 Subsection 10(1) (definition of financial services 3.3 - term used with same
financial services licensee) of licensee meaning throughout Act
the SIS Act
713 Subsection 10(1) (definition of ongoing fee 3.3 - term used with same
ongoing fee arrangement) of the arrangement meaning throughout Act
SIS Act
714 Subsection 10(1) (definition of personal advice 3.1 - term given Act-wide
personal advice) of the SIS Act meaning
715 Subsection 29SAC(2) conflicted 3.1 - term given Act-wide
(definition of conflicted remuneration meaning
remuneration) of the SIS Act
716 Subsection 29SAC(2) representative 3.3 - term used with same
(definition of representative) of meaning throughout Act
the SIS Act
187
References in Part 3 of Schedule 2 to the Bill
Item Provision reference Definitions/Topic Principle
717 Section 38A (paragraph (b) of financial product 3.2 - term with different
the definition of regulatory meanings in different areas
provision) of the SIS Act of the Act
718 Section 66(5) (paragraph (a) of licensed market 3.3 - term used with same
the definition of listed security) meaning throughout Act
of the SIS Act
719 Subsection 101(1) of the SIS regulated 3.3 - term used with same
Act superannuation fund meaning throughout Act
721 Subsection 242C(2) (definition conflicted 3.1 - term given Act-wide
of conflicted remuneration) of remuneration meaning
the SIS Act
722 Subsection 242C(2) (definition representative 3.3 - term used with same
of representative) of the SIS Act meaning throughout Act
723 Subsection 90-1(1) (definition of financial services 3.3 - term used with same
financial services licensee) of licensee meaning throughout Act
Tax Agent Services Act 2009
724 Subsection 90-1(1) (definition of qualified tax relevant 3.1 - term given Act-wide
qualified tax relevant provider) provider meaning
of the Tax Agent Services Act
2009
725 Subsection 90-1(1) (definition of relevant provider 3.3 - term used with same
relevant provider) of the Tax meaning throughout Act
Agent Services Act 2009
726 Subsection 90-1(1) (definition of representative 3.3 - term used with same
representative) of Tax Agent meaning throughout Act
Services Act 2009
727 Paragraph 12-390(9)(a) in custodial or depository 3.1 - term given Act-wide
Schedule 1 of the TAA service meaning
728 Subsection 133-120(2) of AFCA scheme 3.1 - term given Act-wide
Schedule 1 (note) in the TAA meaning
729 Subsection 133-140(1) in AFCA scheme 3.1 - term given Act-wide
Schedule 1 (note) of the TAA meaning
730 Section 155-90 in Schedule 1 AFCA scheme 3.1 - term given Act-wide
(note) of the TAA meaning
731 Subsection 355-65(3) in AFCA scheme 3.1 - term given Act-wide
Schedule 1 (table item 3) of the meaning
TAA
732 Subsection 390-5(1) in Schedule AFCA scheme 3.1 - term given Act-wide
1 (note 2) of the TAA meaning
188
Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023
Item Provision reference Definitions/Topic Principle
733 Subparagraph 396-65(1)(b)(i) in financial product 3.2 - term with different
Schedule 1 (note 2) of the TAA meanings in different areas
of the Act
734 Paragraph 396-65(1)(b) in financial service 3.3 - term used with same
Schedule 1 (note 2) of the TAA meaning throughout Act
734 Paragraph 396-65(1)(b) in wholesale client 3.3 - term used with same
Schedule 1 (note 2) of the TAA meaning throughout Act
735 Subparagraph 396-65(2)(b)(i) in financial product 3.2 - term with different
Schedule 1 (note 2) of the TAA meanings in different areas
of the Act
735 Subparagraph 396-65(2)(b)(i) in financial service 3.3 - term used with same
Schedule 1 (note 2) of the TAA meaning throughout Act
736 Paragraph 396-65(2)(b) in wholesale client 3.3 - term used with same
Schedule 1 (note) of the TAA meaning throughout Act
737 Subparagraph 426-120(2)(b)(ii) licensed trustee 3.3 - term used with same
in Schedule 1 to the TAA company meaning throughout Act
738 Subsection 8AJA(8) (definition financial product 3.2 - term with different
of financial product) of the meanings in different areas
Telstra Corporation Act 1991 of the Act
739 Subsection 8AJA(8) (definition security 3.2 - term with different
of security) of the Telstra meanings in different areas
Corporation Act 1991 of the Act
189