Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Hansard source

Firstly, I would like to thank those senators who have contributed to this debate. The bill makes a number of amendments designed to reduce the regulatory burden in Australia. The amendments are collectively estimated to cut business compliance costs by around $14 million per year.

Schedule 1 to this bill focuses on reducing the cost to businesses operating in Australia of regulatory requirements under the Corporations Act 2001. Firstly, schedule 1 to this bill removes the ability for 100 shareholders of a company to request a general meeting. This change ensures that company resources are no longer spent on meetings requested by only a very small minority of shareholders. We have, however, maintained rights that will still allow small shareholders to engage with companies. Groups of 100 shareholders of a company will still be able to place items on the agenda of a general meeting and circulate material to other shareholders. Shareholders of a company that hold five per cent of the voting rights in aggregate will also still be able to request a general meeting.

The bill also improves the disclosure of executive remuneration in Australia by replacing disclosures that companies currently have to make in relation to options with simpler disclosures that are more useful to shareholders. Unlisted disclosing entities will also no longer be required to prepare a remuneration report.

The bill also clarifies when entities can change their financial year end dates, allowing entities to confidently utilise the provisions in the Corporations Act to alter the length of their financial year. Stakeholders have been calling for this clarity for a number of years and are fully supportive of this amendment.

Finally, schedule 1 to this bill removes an anomaly under the Corporations Act that requires certain companies limited by guarantee that are not required to undertake an audit to nevertheless appoint an auditor. This change will benefit smaller companies with a not-for-profit focus in particular as the current relief from reporting and auditing requirements for such companies is designed in part to address their limited resources.

Schedule 2 to this bill focuses on improving the efficiency of government processes under the Australian Securities and Investments Commission Act 2001 reflecting the government's commitment to identifying cost savings and efficiencies within its own processes. Schedule 2 to this bill improves the efficiency of the operation of the Takeovers Panel. Schedule 2 to this bill also extends the remunerations-setting responsibility of the Remuneration Tribunal to the Financial Reporting Council, the Australian Accounting Standards Board and the Auditing and Assurance Standards Board.

In summary, this bill reduces the costs borne by Australian businesses of corporate regulations by around $14 million per year. It reflects this government's commitment to reduce the regulatory burden for Australian business and allowing businesses to focus on what it is they should be doing—that is, running their business. I commend this bill the Senate.