Max Chandler-Mather (Griffith, Australian Greens) Share this | Hansard source

by leave—I move amendments (1) to (13) on the sheet revised 17 March 2023 as circulated in my name together:

(1) Clause 4, page 4 (line 7), omit "or by the Regulator through disqualification", substitute "by the Regulator through disqualification, or through civil penalties for non-compliance".

(2) Clause 14, page 18 (line 12), omit "or disqualification by the Regulator", substitute ", disqualification by the Regulator, or civil penalties for non-compliance".

(3) Clause 18, page 22 (after line 6), at the end of subclause (1), add:

Note: Failure to comply with an obligation under this Chapter is a contravention of a civil penalty provision (see section 80).

(4) Clause 35, page 42 (line 7), after "disqualified", insert "or liable to a civil penalty".

(5) Clause 40, page 49 (after line 17), after paragraph (4)(e), insert:

(ea) details of any civil penalty order made against the person for a contravention of a civil penalty provision of this Act; and

(6) Clause 80, page 85 (after line 12), at the end of the clause, add:

(3) A person contravenes this subsection if:

(a) the person is an accountable person of:

(i) an accountable entity that is a medium or large banking entity; or

(ii) an accountable entity that is not an ADI or an authorised NOHC of an ADI; and

(b) the person is subject to an obligation under Chapter 2 in relation to the entity; and

(c) the person fails to comply with the obligation.

Note: It is generally not necessary to prove a person's state of mind in proceedings for a contravention of a civil penalty provision (see section 94 of the Regulatory Powers Act, which applies because of section 82 of this Act).

(4) A person is liable to a civil penalty if the person contravenes subsection (3).

(5) In this section:

medium or large banking entity means:

(a) an ADI that is, immediately before the day that is 6 months after this Act commences, a medium ADI or large ADI under the Banking Act 1959; or

(b) an authorised NOHC of such an ADI.

(7) Clause 83, page 88 (line 9), omit "Note 1", substitute "Note".

(8) Clause 83, page 88 (lines 11 and 12), omit note 2 to subclause (3).

(9) Heading to clause 97, page 102 (line 24), at the end of the heading, add "and accountable persons".

(10) Clause 97, page 102 (after line 32), after subclause (1), insert:

(1A) An accountable entity, or a significant related entity of an accountable entity, must not (whether by agreement or by making a payment, and whether directly or through an interposed entity):

(a) indemnify a person who is or was an accountable person of:

(i) the accountable entity; or

(ii) a significant related entity of the accountable entity;

against the consequences of breaching an obligation under this Act; or

(b) pay, or agree to pay, a premium for a contract insuring such a person against the consequences of breaching an obligation under this Act.

(11) Clause 97, page 103 (line 1), omit "Subsection (1) does not", substitute "Subsections (1) and (1A) do not".

(12) Clause 97, page 103 (line 4), at the end of subclause (3), add "or (1A)".

(13) Clause 97, page 103 (lines 6 to 9), omit paragraph (4)(a), substitute:

(a) subsections (1) and (1A) apply to a related body corporate (other than a significant related entity) of an accountable entity in the same way as they apply to a significant related entity of the accountable entity; and

As previously flagged, we have just reintroduced the amendments that we had struck in a deal with the government to introduce $1 million fines for bankers who break the law. I implore the government to accept these amendments, as per the agreement that we reached. I implore you to listen to the people of Australia and not the big banks and the big bank lobby, now led by a former Labor premier, and take into account the terrible experiences that so many people had with the banks and the huge breaches of regulations and the breaking of the law revealed by the recent banking royal commission. If we want to stop that from happening again, bankers need to face serious consequences for their actions. In fact, we have even amended this amendment to ensure that we carve out smaller banks, as a concern was raised. This was a reason given by the minister for reneging on the deal. We've carved that out. This will target only big bankers and big bank executives.

It's a really simple amendment. It will make sure that bankers know they face serious consequences for their actions. We suggest to the government that, when considering how we regulate the financial industry, you should not listen to the bank lobby. It has just been revealed under a royal commission that the industry you're regulating and holding to account engaged in serious misconduct and, in some instances, resulted in people losing their homes and livelihoods. We think it seems pretty straightforward that, in those instances, we should perhaps listen to the people of Australia and not to the banking lobby and that we should impose serious, real-life consequences upon these bankers when they do break the law, because, when they do break the law, this often results in terrible human consequences.

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