Explanatory Memorandum
(Circulated by the authority of the Parliamentary Secretary to the Treasurer, the Hon Bernie Ripoll MP)General outline and financial impact
Outline
This Bill implements the Council of Australian Governments' (COAG) Directors' Liability reform, which aims to harmonise the imposition of personal criminal liability for corporate fault across Australian jurisdictions. The Directors' Liability reform project forms part of the COAG National Partnership Agreement to Deliver a Seamless National Economy.
The amendments proposed to be made in this Bill apply the Principles agreed as part of the COAG Directors' Liability reform to Commonwealth legislation across various portfolios, includingthe Corporations Act 2001, Corporations(Aboriginal and Torres Strait Islander ) Act 2006,Insurance Contracts Act 1984, Foreign Acquisitions and Takeovers Act 1975,Income Tax Assessment Act 1936, Taxation Administration Act 1953, Superannuation Guarantee ( Administration ) Act 1992, Pooled Development Funds Act 1992, Therapeutic Goods Act 1989, Health Insurance Act 1973, Veterans' Entitlements Act 1986, Classification ( Publications, Films and Computer Games ) Act 1995,National Measurement Act 1960 , and National Vocational Education and Training Regulator Act 2001 .
The Bill amends these Acts to:
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- remove personal criminal liability for corporate fault where such liability is not justified;
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- remove the burden of proof on defendants to establish a defence to a charge;
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- replace personal criminal liability for corporate fault with civil liability where a non-criminal penalty is appropriate; and
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- where personal criminal liability is justified, to make clear the circumstances where such liability would apply.
Date of effect : The Bill commences on the day following Royal Assent. The Bill does not have retrospective effect.
Proposal announced : These reforms were originally announced as part of the COAG National Partnership Agreement to Deliver a Seamless National Economy on 29 November 2008.
Financial impact : The financial impact will be nil.
Compliance cost impact : The compliance cost will be nil.
Regulation impact statement
Impact : A Regulation Impact Statement (RIS) was not required for the amendments.
Summary of Statement of Compatibility with Human Rights
A Statement of Compatibility with Human Rights has been prepared in accordance with Part 3 of the Human Rights ( Parliamentary Scrutiny ) Act 2011 .
This Bill is compatible with human rights. It promotes the right to the presumption of innocence.