Corporations Regulations 2001

SCHEDULE 5C - CONDUCT OF AUDITOR - RELEVANT RELATIONSHIPS  

(regulation 2M.6.05)

1   Money owed - debt  

1(1)    
Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.

1(2)    
The operation of Chapter 2M of the Act is modified by omitting subsection 324CH(5) of the Act (including the subheading) and substituting the following subheading and subsection:

Ordinary course of business exception

(5)
For the purposes of item 15 of the table in subsection (1):

(a) disregard a debt owed by an individual to a body corporate or entity if:

(i) the body corporate or entity is:

(A) an Australian ADI; or

(B) a body corporate registered under the Life Insurance Act 1995 ; and

(ii) the debt arose because of a loan that the body corporate or entity made to the person in the ordinary course of its ordinary business; and

(iii) the person used the amount of the loan to pay the whole or part of the purchase price of premises that the person uses as their principal place of residence; and

(b) disregard a debt owed by the person or firm to a body corporate or entity if:

(i) the debt is on normal terms and conditions, and arises from the acquisition of goods or services on normal trading terms from:

(A) the audited body; or

(B) an entity that the audited body controls; or

(C) a related body corporate; and

(ii) the goods or services will be used by the person or firm:

(A) for the personal use of the person or firm; or

(B) in the ordinary course of business of the person or firm.