Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer, the Hon Michael Sukkar MP)General outline and financial impact
Modernisation of Commonwealth registers
The legislative package creates a new Act called the Commonwealth Registers Act 2019 and makes related amendments to a suite of existing laws to create a new Commonwealth business registry regime.
Date of effect: The Commonwealth Registers Bill 2019 commences the day after Royal Assent. The remainder of the new registry regime commences two years after Royal Assent or on such earlier date as may be proclaimed by the Governor-General.
Proposal announced: The legislative package partially implements the measure 'Delivering Australia's Digital Future - modernising business registers' which was announced in the 2018-19 Budget.
Financial impact: Nil.
Human rights implications: This measure is compatible with human rights. See Statement of Compatibility with Human Rights - Chapter 3.
Compliance cost impact: Nil. The legislative package transfers functions and powers which are largely set out in existing Commonwealth laws to the registrar.
Director identification numbers
Schedule 2 to the Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019 amends the Corporations Act and the Corporations (Aboriginal and Torres Strait Islander) Act 2006 to introduce a director identification number (DIN) requirement.
Date of effect: This Schedule commences two years after Royal Assent or on such earlier date as may be proclaimed by the Governor-General.
Proposal announced: This Schedule implements a measure announced by the former Minister for Revenue and Financial Services on 12 September 2017.
Financial impact: Nil.
Human rights implications: This Schedule is compatible with human rights. See Statement of Compatibility with Human Rights - Chapter 3.
Compliance cost impact: This measure will increase compliance costs by approximately $21.5 million per year on average over ten years. However, most of the regulatory burden will occur in the first 18 months as existing directors fulfil their obligation under this measure to obtain a DIN.