Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 (101 of 2007)

Schedule 1   Amendments

Part 1   Amendments commencing on Royal Assent

Corporations Act 2001

56   After subsection 324CH(5)

Insert:

Goods and services exception

(5A) For the purposes of item 15 of the table in subsection (1), disregard a debt owed by a person or firm to a body corporate or entity if:

(a) the debt arises from the acquisition of goods or services from:

(i) the audited body; or

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

(iii) a related body corporate; and

(b) the acquisition of goods and services was on the terms and conditions that would normally apply to goods or services acquired from the body, entity or related body corporate; and

(c) the debt is owed on the terms and conditions that would normally apply to a debt owing to the body, entity or related body corporate; and

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

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

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

Ordinary commercial loan exception

(5B) For the purposes of item 15 of the table in subsection (1), disregard a debt owed under a loan that:

(a) is made or given in the ordinary course of business of:

(i) the audited body; or

(ii) the related body corporate; or

(iii) the controlled entity; and

(b) is made or given on the terms and conditions that would normally apply to a loan made or given by the audited body, the related body corporate or the controlled entity.