Paperwork has been cut and business compliance costs lowered with the Senate's passage yesterday of the Government's seventh chapter of its Corporate Law Economic Reform Program.
The CLERP 7 reforms are aimed at improving the efficiency of corporate regulation and reducing regulatory burdens on business. Lodgment and compliance procedures for companies under the Corporations Act will be simplified under a user-pays system of servicing by the Australian Securities and Investments Commission.
"Small business especially is the big winner from these reforms," the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, said.
"Around one million proprietary companies will no longer need to provide ASIC with an annual return. This will cut paperwork significantly.
"Small business will also benefit from reduced business costs and charges and from being able to access more reliable, accurate and timely information."
Senator Campbell said the CLERP 7 reforms mean that companies would no longer lodge an annual return with ASIC. Instead, they would be required to notify ASIC of certain basic changes to company details when they occurred. An annual review fee, capped at $200 until 30 June next year, will replace the present annual return fee.
"If there are no changes, no paperwork will need to be lodged," he said. "In practice, this will reduce compliance burdens for a large number of small businesses that typically do not have any changes.
"The measures will also assist ASIC by reducing its processing volumes while maintaining the quality and integrity of its companies database."
Senator Campbell said the Government had received strong support for the changes and was committed to its program of continuously improving business law regulation.
The bill takes effect on 1 July this year.
CANBERRA
27 March 03
Contact: Wayne Grant 02 6277 3955/0407 845 280