*Updates to draft legislation – 16 October 2018
- Added Bill 3 - Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2018: Further amendments.
- Minor changes made to the Explanatory Memorandum to incorporate Bill 3 of the draft legislation. The changes are:
- updated Consequential amendments tables (see Appendix);
- addition of two new footnotes (3 and 73); and
- updated references in the ‘Commencement and application’ section (page 23).
In the 2018-19 Budget, the Government announced it will modernise the Australian Business Register (ABR) and the 31 Australian Securities and Investments Commission (ASIC) business registers onto a single platform that will be administered by the Australian Business Registrar within the Australian Taxation Office (ATO).
The current legislative framework that covers ASIC’s business registers has not kept up with digital technology and restricts ASIC’s ability to interact with clients in their preferred manner. It also does not allow ASIC registry functions to be administered by another agency.
This draft legislation would allow the appointed Registrar (or Registrars) the ongoing flexibility to adapt and respond to changes in technology to improve the user experience and simplify the way clients interact with government business registers.
The draft legislation to modernise the business registers will be consulted on in two parts. The first part was released on 1 October and included the core provisions that facilitate a modern government registry regime plus the bulk of the referrals of functions and consequential changes from other Acts. The second part was released on 16 October and includes the remainder of the referrals of functions and consequential changes.
The amendments proposed by the Government will allow ASIC’s registry functions to be shifted to the Australian Business Registrar. ASIC will continue to administer all of its regulatory functions under the current ASIC laws.
Also included in the draft legislation released on 1 October is a legal framework for the introduction of Director Identification Numbers (DINs). The draft legislation sets out who will be required to obtain a DIN, the obligations associated with a DIN, the consequences of not meeting those obligations and how DINs will be administered. Details on specific implementation options are currently being considered and will be separately consulted on shortly.
You can request to be involved in future consultation on the implementation of DINs.