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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