Explanatory Memorandum
(Circulated by authority of the Treasurer,the Hon Peter Costello, MP)6 - Schedule 3 Amendment of the Financial Sector (Transfers of Business) Act 1999
Item 1
6.1 This amendment inserts new provisions into the Financial Sector (Transfers of Business) Act 1999 (the FS(ToB)) to ensure the Australian Prudential Regulation Authority (APRA) consults the Commissioner of Taxation before approving an application in relation to a transfer of business. The FS(ToB) currently requires that APRA must consult with the Australian Securities and Investments Commission and the Australian Competition and Consumer Commission unless they expressly state that they do not want to be consulted. The Commissioner of Taxation and by implication the Australian Taxation Office, is not explicitly listed in the FS(ToB), but it has been practice to ensure applicants consult with the Commissioner of Taxation prior to the transfer being agreed.
Item 2
6.2 This amendment inserts a new provision, which provides for APRA to not have to consult with the Commissioner of Taxation if APRA is informed in writing by the Commissioner of Taxation that he/she need not be consulted.
Commencement
6.3 These amendments will commence on the day after the day on which this Act receives the Royal Assent.