Published Impact Analyses

Independent Review – Australian Securities and Investments Commission

On 23 October 2020, the Australian Securities and Investments Commission (ASIC) announced a product intervention order imposing conditions on the issue and distribution of contracts for difference (CFD) to retail clients.

The objective of the product intervention order is to reduce the risk of significant detriment to retail clients resulting from CFDs. The order strengthens consumer protections by reducing CFD leverage available to retail clients and by targeting CFD product features and sales practices that amplify retail clients’ CFD losses. It also brings Australian practice into line with protections in force in comparable markets elsewhere.

Independent Review – The Treasury

On 6 October 2020, as part of the 2020-21 Budget, the Government announced a package of superannuation reforms informed by the findings and recommendations of the Productivity Commission’s review of the efficiency and competitiveness of the Australian Superannuation System.

The reform package includes measures to prevent the creation of unintended multiple superannuation accounts, address underperformance, make it simpler for members to select a well-performing fund, and put beyond doubt that trustees must act in the best financial interests of members.

Regulation Impact Statement – Department of Health

On 6 October, the Australian Government announced changes to the Voucher stream of the Hearing Services Program (HSP).

The current HSP model does not always deliver services aligned with clinical need and contemporary service delivery, nor does it account for significant advancements in hearing aid technology. These reforms are designed to improve service delivery for consumers, ensure providers can meet the increasing demand for hearing services and enhance government efficiency of the HSP model.

Independent Review – Department of Health

On 6 October, as part of the 2020-21 Budget, the Australian Government announced it will establish a unique device identification database for medical devices.

The unique device identification database will be administered by the Therapeutic Goods Administration and the information can be used to support tracking and tracing of medical devices to enable timely clinical and regulatory actions if medical device safety issues occur.  

Regulation Impact Statement – The Treasury

On 6 October 2020, as part of the 2020-21 Budget, the Government announced it will temporarily allow companies with a turnover of up to $5 billion to offset tax losses against previous profits on which tax has been paid. Normally, businesses would have to return to profit before they can use their losses. However under this measure, losses incurred to June 2022 can be offset against prior profits made in or after the 2018-19 financial year.

Temporary loss carry-back is being proposed in conjunction with temporary full expensing to encourage business investment and to support businesses to withstand and recover from the economic effects of COVID-19.

The Office of Best Practice Regulation (OBPR) assessed the Regulation Impact Statement (RIS) prepared by the Treasury as adequate against the Government’s Regulatory Impact Analysis (RIA) requirements, but not consistent with good practice.

Independent Review – Australian Accounting Standards Board

On 19 July 2017, the Australian Accounting Standards Board (AASB) approved AASB 17 Insurance Contracts. When first approved by the AASB, the Standard applied to periods beginning on or after 1 January 2021. As a result of amendments made in July 2020 through AASB 2020-5 Amendments to Australian Accounting Standards – Insurance Contracts, AASB 17 was deferred and now applies to periods beginning on or after 1 January 2023. Earlier application is permitted.

Regulation Impact Statement – Australian Securities and Investments Commission

On 30 July 2020, the Australian Securities and Investments Commission (ASIC) issued Regulatory Guide 271 Internal dispute resolution which, upon its commencement on 5 October 2021, will replace Regulatory Guide 165 Licensing: Internal and external dispute resolution for financial firms.  Among other changes, Regulatory Guide 271 reduces the mandatory maximum timeframes for the resolution of customer complaints through internal dispute resolution (IDR) processes.

Independent Review – The Treasury

On 6 October 2020, as part of the 2020-21 Budget, the Government responded to the Board of Taxation’s (the Board’s) final report on its review of the operation of Australia’s corporate tax residency rules, announcing that it will adopt the Board’s key recommendations.

The Government will amend the law to provide that a company which is incorporated offshore will be treated as an Australian tax resident if it has a ‘significant economic connection to Australia’. This test will be satisfied where both: the company’s core commercial activities are undertaken in Australia; and its central management and control is also in Australia.

This change will mean the treatment of foreign incorporated companies will reflect the corporate residency position prior to the 2016 High Court decision in Bywater Investments Ltd and Ors v Commissioner of Taxation.

Remaking of Sunsetting Instrument without Significant Amendments – Australian Communications and Media Authority

On 23 September 2020, the Australian Communications and Media Authority (ACMA) remade with only minor amendments the Broadcasting Services (Primary Commercial Television Broadcasting Service) Declaration 2010, which was due to sunset on 1 October 2020. The newly remade Broadcasting Services (Primary Commercial Television Broadcasting Service) Declaration 2020 will now sunset on 1 October 2030.

Consistent with Government’s best practice regulation requirements for sunsetting instruments, the ACMA has, after consultation with stakeholders, assessed the instrument as operating effectively and efficiently. Therefore, a Regulation Impact Statement is not required for remaking this instrument.

ASIC Class Order [CO 10/381]; ASIC Class Order [CO 10/1230] – Australian Securities and Investments Commission

On 30 September 2020 the Australian Securities and Investments Commission (ASIC) remade the above instruments without significant amendments. ASIC Class Order [CO 10/381] and ASIC Class Order [CO 10/1230] had been scheduled to sunset on 1 October 2020 and 1 April 2021 respectively.

ASIC Class Order [CO 10/381] gives effect to the intention of Item 39A of Schedule 2 of the National Consumer Credit Protections (Transitional and Consequential Provisions) Act 2009, where all unlicensed carried over instrument lenders (UCOILs) are required to provide certain specified information to ASIC.