House of Representatives

Treasury Laws Amendment (Mutual Reforms) Bill 2019

Explanatory Memorandum

(Circulated by authority of the Assistant Minister for Treasury and Finance, the Hon Zed Seselja)

Chapter 2 Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Treasury Laws Amendment (Mutual Reforms) Bill 2019

2.1 This 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.

Overview

2.2 This Bill gives effect to recommendations 5, 8 and 9 of the Hammond Report to:

introduce a definition of a mutual entity into the Corporations Act;
remove the uncertainty for transferring financial institutions and friendly societies in respect of the demutualisation provisions in Part 5 of Schedule 4 of the Corporations Act; and
expressly permit mutual entities registered under the Corporations Act to issue equity capital without risking their mutual structure or status.

Human rights implications

2.3 This Bill does not engage any of the applicable rights or freedoms.

Conclusion

2.4 This Bill is compatible with human rights as it does not raise any human rights issues.


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