On 16 July 2012, the Australian Securities and Investments Commission (ASIC) announced new short sale tagging requirements which will apply to the Australian Securities Exchange (ASX) and Chi-X Markets. This measure is due to commence from 1 March 2014. Short selling is an activity where a person enters into an agreement to sell a security that the person does not currently own. The most common reason for engaging in short selling is the investor believes that the security is over-valued and its price is likely to decline in the future. Short selling is also a method of reducing and/or managing risk. The short sale tagging obligation will require market participants to specify, at the time an order is placed, the quantity of a sell order that is a short sale.
Published Impact Analyses
Official website for Published Impact Analyses for decisions announced by the Australian Government, Ministerial Forums and National Standard Setting Bodies.
On 5 July 2012, a COAG Consultation Regulation Impact Statement (RIS) was released on the proposed Electronic Conveyancing National Law that will facilitate the implementation of National Electronic Conveyancing. The Consultation RIS considers various options for the introduction of national laws to facilitate National Electronic Conveyancing. Currently, the majority of jurisdictions require that transactions with land (real property) occur via a paper based system, with paper documents required to be registered to confirm the transaction. Some electronic lodgment can occur but is not widespread or consistent between jurisdictions.
On 25 May 2012, the Minister for Home Affairs and Minister for Justice Jason Clare announced a package of measures to combat organised crime and strengthen security on the waterfront. The measures will impose new obligations on applicants for and holders of Maritime Security Identification Cards or Aviation Security Identification Cards, on stevedores, and on customs depots, warehouses and brokers who use the Integrated Cargo System. The Government will consult with businesses on implementing the measures. A Regulation Impact Statement was required for this decision because the regulatory impacts on business are likely to be more than minor.
The Office of Best Practice Regulation (OBPR) has the role of promoting effective and efficient regulation by the Australian Government and the Council of Australian Governments. The OBPR has commenced the use of Twitter as a new communication tool to aid it in performing this role. The OBPR is required as part of its charter to “monitor regulatory reform developments in the states and territories, and in other countries, in order to assess their relevance to Australia”. As Twitter is increasingly adopted as an official communication medium by governments and regulatory agencies around the world, it will also be important for the OBPR to have a presence on Twitter as part of fulfiling this aspect of its charter into the future. The OBPR sees promoting a constructive dialogue around the economic issues relating to the challenges of regulatory reform as one aspect to helping ensure that Australia’s regulatory framework remains a best‑practice example for other countries to follow.
On 11 July 2012, the Australian Communications and Media Authority (ACMA) agreed to register a new Telecommunications Consumer Protection Code. This code was developed by the telecommunications industry and endorsed by ACMA. The existing Telecommunications Consumer Protections Code was developed in 2007 and no longer provides adequate consumer safeguards. This has contributed to a large increase in consumer complaints. The new Telecommunications Consumer Protections Code introduces provisions for suppliers to provide critical information and improved expenditure management tools for consumers. It also requires improvements in industry advertising, complaints-handling and credit management practices. A Regulation Impact Statement was prepared by ACMA and has been assessed as adequate by the Office of Best Practice Regulation.
On 8 June 2012, the Australian Building Codes Board (ABCB) released a Council of Australian Governments (COAG) Consultation Regulation Impact Statement (RIS). The Consultation RIS examines a proposal to address the risk of floods to new residential buildings by amending the National Construction Code. Currently there are no specific provisions for new residential buildings in flood hazard areas in the National Construction Code as these risks are currently managed by local government planning officials under State or Territory legislation. This COAG RIS for consultation was prepared by the ABCB and assessed as adequate by the Office of Best Practice Regulation. The ABCB invites comments by 17 August 2012.
On 15 July 2012, the COAG National Licensing Taskforce released a COAG Consultation Regulation Impact Statement (RIS). The Consultation RIS examines the impact of replacing the current diverse state and territory licensing of the electrical occupational area with a proposed national licensing approach. It also examines an automatic mutual recognition option. The Consultation RIS seeks feedback on the scope and scale of the proposed changes, examples of the impact on licensees and businesses, on the durability of reform, and on the merits of reform under the different options for promoting a seamless national approach to licensing of electrical occupations.
On 23 June 2012, the Minister for Financial Services and Superannuation announced details of new registration requirements for auditors of Self Managed Superannuation Funds (SMSF). From 1 July 2013 auditors must be registered with the Australian Securities and Investment Commission (ASIC) to audit SMSFs. To register, an SMSF Auditor must meet a number of requirements, including have at least 300 hours of SMSF auditor experience in the three years prior to registration and pass a competency exam. Transitional arrangements will apply to the registration requirements for existing SMSF approved auditors. In recognition of experience, auditors who sign off 20 or more audits in the 12 month period prior to applying for registration will not be required to sit the competency exam.
On 2 July 2012, a COAG Consultation Regulation Impact Statement (RIS) on the options for regulation of paramedics was released by most jurisdictions. The Consultation RIS examines a number of options for changing the regulation of paramedics including adding paramedics as a profession in the National Registration and Accreditation Scheme. The Consultation RIS identifies the problems associated with allowing the practices of paramedics to be governed by employers. The Consultation RIS seeks to gather information and views on the current regulatory arrangements and, if further public protection measures are required, what these should be and how they should be structured and administered.
On 1 July 2012, the Government released generic information on the impact of the carbon price on household electricity bills. The information will be contained in an insert that is given to electricity retailers to be enclosed in billing envelopes sent to households between 1 July 2012 and 31 December 2012. Regulatory options to disseminate information were also considered and these are outlined in the Regulation Impact Statement. An Adobe Portable Document Format (PDF) file will be provided to households receiving electronic electricity bills. A Regulation Impact Statement was prepared by the Department of Climate Change and Energy Efficiency and assessed as adequate by the Office of Best Practice Regulation.