The Albanese government is taking the next step to deliver its commitment to increase transparency of beneficial ownership in Australia.
Consultation opens today on draft amendments to the Corporations Act 2001 to ensure disclosure of who effectively owns, and controls entities listed on Australia’s financial markets.
These reforms close a substantial loophole that allows sophisticated investors to use complex financial products to mask their interests in some of our most significant listed companies.
The draft amendments also strengthen the Australian Securities and Investments Commission’s investigation and enforcement powers, allowing it to act quickly to freeze opaque holdings that might be being used to circumvent legal obligations or finance crime – including by offshore actors.
Directors and investors deserve to know when groups are accumulating direct and indirect stakes in their companies so they can take action to ensure their rights are protected.
An open register of ownership will show who ultimately owns, controls, or receives profits from a company or legal vehicle operating in Australia.
This will assist regulators and law enforcement agencies to address tax evasion, money laundering and other financial crime facilitated by complex legal structures and arrangements.
Submissions can be made online until 13 December 2024.