House of Representatives

Second Reading Speech

Mr Jones (Assistant Treasurer and Minister for Financial Services)

I move:

That this bill be now read a second time.

This bill contains measures designed to maintain and improve Treasury portfolio legislation to ensure it remains current and fit for purpose.

chedules 1, 2 and 3 to the bill make amendments to implement recommendations made by the Australian Law Reform Commission, hereafter 'ALRC', in interim reports A and B of its Review of the Legislative Frameworks for Corporations and Financial Services Regulation.

The ALRC recommended a number of technical amendments and corrections to simplify the law and improve its navigability. It suggested that these be implemented in advance of the release of its final report, which will be provided to the government in November 2023.

The amendments herein:

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unfreeze the Acts Interpretation Act 1901 so the current version applies to the Corporations Act 2001 and theAustralian Securities and Investment Commission Act 2001;

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create a single glossary of defined terms in the Corporations Act;

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repeal redundant provisions, correct errors; and

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improve clarity.

Schedule 4 to the bill makes amendments to the Insurance Acquisitions and Takeovers Act 1991, the Life Insurance Act 1995 and the Insurance Act 1973. These acts are the enabling acts of certain legislative instruments regulating the insurance industry that are due to sunset on 1 October this year.

The purpose of the acts is to protect policyholders by regulating the types of persons that may carry on insurance businesses and prescribe standards to ensure the prudent management of the insurance industry.

The amendments will help to ensure that the sunsetting insurance instruments that are being re-made will be up to date and fit for purpose.

The amendments in schedule 4 to the bill:

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update certain provisions to reflect modern communication practices;

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allow regulators to administratively prescribe the manner and form of certain notices to increase flexibility and align with modern drafting practices; and

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move some provisions in the insurance instruments into primary legislation.

Schedule 5 to the bill transfers longstanding and accepted matters currently contained in three Australian-Securities-and-Investments-Commission-made legislative instruments to the Corporations Actand the National Consumer Credit Protection Act 2009.

For a long time, ASIC has relied on its exemption and modification powers under the enabling acts to update the law for changing circumstances. Such instruments make notional amendments to the primary law, which may make it difficult for regulated entities to understand the full state of the law as it applies to them.

These amendments will move the operation of the legislative instruments into the primary law to improve the clarity of the law, provide certainty, and make it simpler for regulated entities and consumers to understand their rights and obligations.

Finally, schedule 6 to the bill amends various laws in the Treasury portfolio to ensure those laws operate in accordance with policy intent, make minor changes to improve administrative outcomes and remedy unintended consequences, as well as correcting technical and drafting defects.

The Legislative and Governance Forum on Corporations was consulted in relation to the bill as required under the Corporations Agreement 2002.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.