Published Impact Analyses

On 20 September 2011, the Australian Securities and Investments Commission released the new ePayments Code, which provides consumer protections in relation to electronic payment products. Membership to the ePayments Code is voluntary. The ePayments Code replaces the Electronic Funds Transfer Code of Conduct since a number of newer electronic payment products have entered the market that are not covered by the old Code.  It applies to all electronic payment products, subject to a dollar value.       

The Regulation Impact Statement was prepared by the Australian Securities and Investments Commission and was assessed as adequate by the Office of Best Practice Regulation.

On 16 August 2011, the Assistant Treasurer announced the release of exposure draft legislation to the proposed interim Investment Manager Regime. Currently, uncertainties over the tax treatment of investment incomes from foreign managed funds are considered to be having an adverse effect on the investment decisions of those funds. The proposal provides greater certainty in relation to the taxation treatment of certain investment incomes derived during the 2010-11 (and earlier) income years. Greater certainty is provided by preventing the Australian Taxation Office from raising assessments for those income years; and exempts from income tax any relevant investments of a foreign fund, where that income is taken to have been derived through a permanent establishment in Australia.

On 24 August the Australian Government announced its response to the 10 year review of the Environment Protection and Biodiversity Conservation Act 1999. The Government’s response included a large number of changes; the two major components are to:

On 5 August 2011, the Assistant Treasurer released for public consultation the exposure draft of the National Consumer Credit Protection Amendment (Enhancements) Bill 2011, which forms a part of Phase Two of the National Consumer Credit reforms. The proposal provides greater protection in relation to consumer leases that are functionally similar to other forms of credit – for example, leases for televisions and other consumer electronics. It also provides a number of specific enhancements to the National Credit Code. For example, the circumstances where credit contracts can be varied as well as changing the monetary threshold above which a consumer does not have a statutory right to request a hardship variation or postponement of enforcement proceedings.

On 5 August 2011 the Assistant Treasurer, the Hon Bill Shorten, released for public consultation the exposure draft to the National Consumer Credit Protection Amendment (Enhancements Bill) 2011. One measure sought to be implemented includes protections for older Australians accessing the equity in their homes through reverse mortgages or home reversion schemes. These will require providers to comply with increased procedural requirements, both pre and post contract, as well as increased statutory protections including against negative equity. This was an election commitment.  The Regulation Impact Statement was prepared by the Treasury and was assessed as adequate by the Office of Best Practice Regulation.

On 25 August 2011, the Assistant Treasurer announced measures to increase the level of protection for the provision of short-term, small amount lending. These changes follow on from the issues identified during the course of Phase One of the National Consumer Credit Protection Reforms, and have been addressed as part of Phase Two. Credit providers will be expected to comply with additional obligations, including:

On 12 August 2011, the Australian Securities and Investments Commission (ASIC) released a suite of disclosure benchmarks for Product Disclosure Statements for Over-the-Counter Contracts for Difference (OTC CFDs). OTC CFDs are considered high risk financial products requiring more detailed disclosure on a number of key points. Providers will be required to disclose against the benchmarks specified by ASIC, or explain why they have not. The benchmarks include:

• client qualification policies;
• acceptable forms of opening collateral;
• counterparty risk (hedging practices);
• financial resources held; and
• use of client money.

 The Regulation Impact Statement was prepared by ASIC and was assessed as adequate by the Office of Best Practice Regulation.

On 18 July 2011 Food Standards Australia New Zealand (FSANZ) announced the release of a proposal to extend country of origin labelling to unpackaged beef, sheep and chicken meat. The proposed standard will require retailers to display point-of-sale labels showing the country of origin of the main unpackaged meat categories not already subject to labelling requirements. FSANZ has prepared a Consultation Regulation Impact Statement (RIS) which has been approved by the Office of Best Practice Regulation (OBPR). FSANZ released the RIS for public consultation from 18 July 2011 to 29 August 2011. The information provided to FSANZ will help guide the development of the standard and decision RIS.

The Consultation Regulation Impact Statement (RIS) examines competition issues associated with the co-ownership of electricity generation and transmission assets. The Consultation RIS examines the adequacy of current legislative protections, and outlines several options to address future co-ownership of generation and transmission assets. The Consultation RIS has been assessed as adequate by the Office of Best Practice Regulation. Submissions are due by 22 September 2011. Further details are available from the Ministerial Council on Energy.

On 22 March 2011, the Minister for Innovation, Industry, Science and Research, Senator Kim Carr and the Minister for Trade, Craig Emerson released a joint media release announcing that the Australian Government would introduce legislation regarding the export of patented medicines from Australia to countries experiencing a serious epidemic. The legislation enables the Australian Federal Court in limited circumstances to grant a license to export patented medicines to countries experiencing a serious epidemic, in cases where negotiations with patent owners have failed. The legislation implements article 31 of the World Trade Organisation ‘Agreement on Trade-Related Aspects of Intellectual Property Rights’ which Australia is a signatory.