Published Impact Analyses

On 30 October 2012, the Minster for Employment and Workplace Relations announced measures to reform the selection of default superannuation funds in modern awards. Modern awards are industry or occupation-based minimum employment standards. The measures are the Government’s response to the Productivity Commission’s inquiry into default superannuation funds in modern awards. They include the following changes:

On 15 October 2012, the Minster for Employment and Workplace Relations announced the first tranche Government response to the Review of the Fair Work Act. The first tranche covers matters where there is broad support among stakeholders. Of the proposals, only two were identified as having a significant regulatory impact on employers and/or employees. These recommendations were to:

Post Implementation Review – Australian Communications and Media Authority

The Northern Territory Government has released a COAG Consultation Regulation Impact Statement (RIS) on options to continue its existing container deposit scheme to reduce the amount of litter from cans and bottles. Under national and international obligations, states and territories cannot restrict the sale of goods from other states, territories or New Zealand. Specifically, states and territories cannot require bottles and cans to be labelled in a certain manner, including requiring a label that informs consumers that a deposit refund is available.  Northern Territory’s existing container deposit scheme is currently operating under a temporary exemption from these obligations.

On 22 October 2012 as a part of the Mid-Year Economic and Fiscal Outlook measures, the Treasurer announced that financial planners who provide tax advice will be subject to the requirements of the Tax Agent Services Act 2009 (TASA). The TASA had previously only applied to tax advice provided by tax agents and Business Activity Statement (BAS) agents. These changes provide that financial planners who offer tax advice must meet certain education and experience requirements; meet a fitness and propriety test; and follow an industry code of conduct. These requirements are to be introduced over a three-year period, commencing on 1 July 2013. It is expected that consumers who use tax advice provided by financial planners will benefit through increased protection.

Post-implementation Review - Australian Securities and Investments Commission

On 1 October 2012, the Government of Canada released the Red Tape Reduction Action Plan, which was a product of a year-long Red Tape Reduction Commission. The Red Tape Reduction Action Plan consists of six wide ranging reforms, supported by 90 department specific changes. The wide ranging reforms include:

• a one-for-one rule which requires regulators to offset new burdens imposed on business with equal reductions in compliance burden from the stock of existing regulation. This rule will be provided for in legislation;
• the publication of departmental Forward Plans, which will highlight upcoming regulatory changes over a 24 month period; and
• an annual scorecard will report publicly on implementation of systemic reforms, particularly the one-for-one rule.

On 12 October 2012 the Minister for Infrastructure and Transport announced the Government will sign the Convention on International Interests in Mobile Equipment (the Cape Town Convention) which creates a uniform international legal framework to protect investors in aircraft objects such as passenger airliners, helicopters and aircraft engines. As aircraft objects frequently move across borders, the rights and protection available to creditors may be subject to a variety of international laws. Where a debtor defaults on their loan or lease, creditors will likely have to undertake an exhaustive legal process to repossess their property, possibly involving a number of different jurisdictions.  For this reason, creditors generally charge a premium for lending to protect themselves against the substantial risks and uncertainty involved.

On 28 September 2012 the Australian Prudential Regulation Authority (APRA) released the final Basel III capital reform package for Australia. The Basel III capital framework was developed through an international agreement between 27 countries. The framework, which was agreed to in December 2010, is intended to raise the quality and level of capital in the global banking system. The capital reform package for Australia represents an incremental change to the Basel II requirements. The main costs will be incurred by financial institutions in meeting the new capital requirements, which  are likely to be passed on to bank customers through higher interest rate charges on loans. The main benefits are likely to be realised through maintenance of confidence amongst investors in Australia’s banking system.

On 21 September 2012, the Minister for Employment and Workplace Relations announced plans to amend the Fair Work Act 2009  to extend the existing transfer of business arrangements for transfers between two national system employers to include transfers of business from a state public sector employer (the old employer) to a national system employer (the new employer). The amendment will require a business which is taking over a state government owned business to maintain certain employment conditions. The amendment is considered an extension of the existing arrangements as the Fair Work Act 2009  already requires a business to maintain certain employment conditions when it takes over another business. A Regulation Impact Statement was required for this proposal but the Prime Minister granted an exemption on the basis of exceptional circumstances.