Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Hansard source

in reply—I start by thanking all of those members who have taken part in this very important debate on the Financial Sector Legislation Amendment (Restructures) Bill 2007. The measures contained in this bill will facilitate the adoption of a non-operating holding company as the ultimate holding company of a financial group in Australia. This bill will provide greater flexibility for financial groups in choosing a corporate structure to manage their risk exposures and comply with prudential requirements. The bill will also provide financial groups with the opportunity to improve their business efficiency and international competitiveness. As a result the bill further enhances prudential regulation of the financial sector in Australia to the benefit of both consumers and business.

An authorised deposit-taking institution, general insurer or life insurance company will be able to apply to the minister for approval to restructure a group headed by one of these prudentially regulated entities. The bill will provide the minister with the power to approve and grant subsequent relief from specific statutory restrictions in the Corporations Act 2001, which currently impede the adoption of a non-operating holding company structure. Any relief allowed by the bill will be limited to nominated specific provisions and does not in any way relieve an entity from meeting its general obligations under the Corporations Act or any other relevant legislation. The bill also makes consequential amendments to the income tax law to remove tax impediments that would otherwise discourage restructuring. I close by thanking those who have participated in this debate and I commend the bill to the House.

Question agreed to.

Bill read a second time.

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