Bills Digest no. 35 2009–10
National Consumer Credit Protection (Fees) Bill
2009
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage history
Purpose
Background
Financial implications
Main provisions
Contact officer & copyright details
Passage history
Date introduced: 25 June 2009
House: House of Representatives
Portfolio: Treasury
Commencement:
Sections 3 to 10 commence
when section 3 of the National Consumer Credit Protection Act
2009 (the Main Act) commences. The rest of the Act commences
on the day on which it receives Royal Assent.
Links: The
relevant links to the Bill, Explanatory Memorandum and second
reading speech can be accessed via BillsNet, which is at http://www.aph.gov.au/bills/.
When Bills have been passed they can be found at ComLaw, which is
at http://www.comlaw.gov.au/.
To allow for the imposition of fees for things done
under the National Credit Legislation.
This Bill was introduced in a set of bills comprised of:
- the National Consumer Credit Protection Bill 2009 (the Main
Bill)
- the National Consumer Credit Protection (Transitional and
Consequential Provisions) Bill 2009 (the Transitional Bill),
and
- the National Consumer Credit Protection (Fees) Bill 2009 (the
Fees Bill).
Collectively, these bills are known as the National Credit
Legislation.
The policy background to the Fees Bill is contained in the
Bills Digest for the National Consumer Credit Protection Bill
2009.[1]
The Fees Bill sets the scope of activities conducted under the
National Credit Legislation, such as lodgement of documents and
inspection of registers maintained by the Australian Securities and
Investments Commission (ASIC), that may have fees prescribed to
them under regulation.
All of the Bills were referred to the Senate Economics
Legislation Committee (the Senate Committee) for inquiry. Details
of the inquiry, and the final report, are at the
Senate Economics Committee webpage.[2] The report was tabled on 7 September
2009.
The Senate Committee recommended that all three bills in the
National Credit Legislation be passed subject to some
recommendations made in the report.
Fifty-eight submissions were made to the Senate Committee about
the National Credit Legislation package. A discussion of the
submissions is contained in the Bills Digest for the Main Bill.
The Explanatory Memorandum for the Fees Bill states:
The Government has provided $70.2 million over
four years to implement the decision of COAG as part of the 2008-09
Mid-Year Economic and Fiscal Outlook. This Bill includes measures
to give effect to that transfer.
The funding will support the establishment of a
national licensing regime for providers of credit and credit
services, with ASIC as the sole national regulator. It will also
support the national regulation of mortgages, margin lending,
personal loans, credit cards and pay day lending.
The funding will be partially offset by revenue
raised from fees required to be paid by persons regulated by the
national framework, payment of which commences during the 2009-10
financial year. The amount of revenue generated from these fees
will depend, in part, on the number and type of persons seeking to
be licensed.[3]
Clause
4 of the Fees Bill defines chargeable
matter as the following matters (thus allowing for
the charging of a fee for these activities)
- the lodgement of a document under the National Consumer
Credit Protection Act 2009, or the accompanying Transitional
Act
- the inclusion of a document in a register maintained under the
National Consumer Credit Protection Act 2009, or the
accompanying Transitional Act
- the inspection of registers kept by ASIC under the National
Consumer Credit Protection Act 2009, or the accompanying
Transitional Act
- the making available of information from ASIC under the
National Consumer Credit Protection Act 2009, or the
accompanying Transitional Act
- the production of a register or document by ASIC under
subpoena
- any of the following done by the Minister or ASIC:
- the issue of a document or copy of a document
- the granting of a licence, registration, consent or
approval
- the doing of any other act, under National Consumer Credit
Protection Act 2009 or accompanying Transitional Act
- the making of an inquiry of, or an application to, the Minister
or ASIC, in relation to a matter arising under the National
Consumer Credit Protection Act 2009, or the accompanying
Transitional Act, and
- the submission to ASIC of a document for examination by
ASIC.
Clause 5 allows for regulations to prescribe
fees for the chargeable matters set out in clause
4.
Clause 6 limits the fees, or sum of the fees,
for a chargeable matter at $50 000.
Subclause 6(2) clarifies that the fee need
not be a fee for a service, but can be charged in the form of a tax
under the Act.
Clause 7 allows for different fees to be
charged in cases when a matter is complied with electronically.
Clause 8 allows for fees to be adjusted in
accordance with the number of credit representatives that the
person has at the time (licensees can authorise credit
representatives under Part 2-3 of the Main Bill). This provision
enables ASIC to charge fees that correspond with the size of a
licensed body under the National Credit Legislation.
Clause 9 sets out the liability for fees
charged under the Fees Bill. Generally, the liability falls to the
person who is conducting the activity that is, whoever is lodging
the document, requesting the inclusion on the register, requesting
the inspection or search, and so on. The time the liability arises
is generally at the time when the activity is conducted.
Clause 10 provides a regulation-making power to
the Governor-General for the purposes of clauses 5 8 of the
Bill.
Copyright Commonwealth of Australia
PaoYi Tan
16 September 2009
Bills Digest Service
Parliamentary Library
© Commonwealth of Australia
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