Official website for Published Impact Analyses for decisions announced by the Australian Government, Ministerial Forums and National Standard Setting Bodies.
On 22 May 2020, the Treasurer, the Hon Josh Frydenberg MP, announced Litigation funders would be regulated under the Corporations Act, requiring them to hold an Australian Financial Services Licence (AFSL) and comply with the managed investment scheme regime, commencing three months from the date of the announcement.
The amendments to the regulations are intended to provide greater transparency around the operations of litigation funders in Australia, and will require them to:
On 21 May 2020, the Treasurer, the Hon Josh Frydenberg MP, announced the Australian Government will extend the ban on conflicted remuneration to listed investment companies and trusts (LICs), commencing 1 July 2020. This followed a public consultation on the current stamping fee exemption conducted by the Treasury in early 2020.
The extension of the ban to LICs is intended to address risks associated with the potential mis-selling of these products to retail consumers, improve competitive neutrality and provide long term certainty in the funds management industry.
Regulation Impact Statement – Department of Infrastructure, Transport, Regional Development and Communications
On 11 June 2020, the Australian Government introduced legislation to amend the Australian content multi‑channel quota obligation in section 121G of the Broadcasting Services ACT 1992 (BSA). This permits commercial television licensees in regional or remote licence areas who are unable to meet the multi-channel quota of 1,460 hours of Australian content in a particular year, to be deemed to have satisfied this obligation in certain circumstances.
Regulation Impact Statement – Department of Industry, Science, Energy and Resources
On 1 June 2020, the Minister for Industry, Science and Technology announced options to address concerns with the power imbalance between car dealers and manufacturers.
This RIS identifies four options for regulatory intervention which will have a positive net benefit. Together these options seek to address the identified problems in the new car retailing sector in scope for this RIS:
COAG Decision Regulation Impact Statement – Australian Energy Market Commission
On 11 June 2020, the Australian Energy Market Commission (AEMC) released a final rule determination in relation to the National Electricity Amendment (Wholesale Demand Response Mechanism) Rule 2020.
This final determination sets out a series of changes to the National Electricity Rules to facilitate wholesale demand response in the National Electricity Market, principally through implementing a wholesale demand response mechanism.
COAG Decision Regulation Impact Statement – Australian Energy Market Commission
On 21 May 2020, the Australian Energy Market Commission (AEMC) released the final rule determination and final rules titled National Energy Retail Amendment (Introduction of metering coordinator planned interruptions) Rule 2020 and National Electricity Amendment (Introduction of metering coordinator planned interruptions) Rule 2020.
Independent Review – Australian Communications and Media Authority On 26 May 2020, the Australian Communications and Media Authority (ACMA) announced changes to the 3.4 GHz spectrum licence core condition relating to unwanted emission boundaries. This change entails moving the unwanted emission boundary from 3740 MHz to 3840 MHz. The change to the 3.4 GHz unwanted emission boundary aligns with international standards for 5G frequency boundaries and ensures that licensees will not have to modify the relevant spectrum equipment to meet an Australian-specific condition. ACMA undertook public consultation and published two papers to inform its decision. These published documents include: • Review of the unwanted emission boundary – review paper; • Review of the unwanted emission boundary – outcomes paper. These documents detail the planning that the ACMA conducted on how to best amend the unwanted emissions condition and the associated risks in doing so.
Independent Review – Australian Accounting Standards Board
On 18 and 19 March 2020, the Australian Accounting Standards Board (AASB) announced the introduction of new Australian Accounting Standards (AAS) – AASB 1060 and AASB 2020-2 – that provide a simplified reporting framework for Tier 2 entities and require certain for-profit private sector entities to prepare general purpose financial statements (GPFS), rather than electing to prepare special purpose financial statements (SPFS).
COAG Decision Regulation Impact Statement – Australian Building Codes Board (ABCB)
On 21 May 2020, the Australian Building Codes Board agreed to include in the Governing Requirements of the National Construction Code (NCC) 2019 Amendment 1 a process for the development and documenting Performance Solutions.
Following a number of high profile building failures, a 2018 review of building regulatory systems found public confidence in industry’s ability to deliver safe building outcomes was diminishing. The approach to Performance Solutions was singled out in two recommendations, for their lack of adequate processes and documentation required.
Regulation Impact Statement – Department of Industry, Science, Energy and Resources
On 13 May 2020, the Australian Government introduced legislation to establish a Payment Times Reporting Scheme, which would require qualifying entities (large businesses with more than $100 million annual turnover) to report on their payment performance to small businesses (defined as businesses with a turnover of up to $10 million per annum). Introducing the scheme was an election commitment.
The RIS identified that long payment times from large to small businesses are a significant issue in Australia. In 2017–18, payments from large to small businesses were worth around $281 billion, with around $77 billion of payments paid later than 30 days. The cashflow and financing pressures arising from longer payment times in turn constrain small businesses’ ability to hire, invest and grow – and are associated with higher bankruptcy and exit rates.