Bill
Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Bill 2018
passed, as at 2019-03-12. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2018-10-24
- second reading — 2018-10-24
- second reading — 2018-11-28
- second reading — 2018-11-28
- committee — 2018-11-28
- committee — 2018-11-29
- third reading — 2018-11-29
- introduced — 2018-12-03
- second reading — 2018-12-03
- second reading — 2019-02-14
- third reading — 2019-02-14
- other — 2019-02-18
- passed — 2019-02-18
- royal assent — 2019-03-12
Divisions
- The majority voted against [opposition amendments](https://www.openaustralia.org.au/debate/?id=2018-11-28.124.2), which means they failed. The amendments related to the cap the Government is placing on civil penalties, which the Opposition oppose because, according to Labor MP [Clare O'Neil](https://theyvoteforyou.org.au/people/representatives/hotham/clare_o'neil): > "*it's very out of step with other pecuniary penalties handed down in Australia and overseas. It is out of step with the contemporary reality of financial service providers and banks, and it creates a regime that's not effectively futureproofed as our financial institutions continue to grow in size.* > *I want to note that the Consumer Action Law Centre was very strong on this point when they made a submission to the ASIC enforcement reviews processes. I'm going to quote a little bit from their submission. They said, 'We are not convinced that theirs is a strong policy justification for introducing a maximum limit on civil penalties of one million penalty units, that's currently $210 million. Setting a maximum does not recognise that there are large differences in size of banks, insurers and superannuation funds and that a penalty in excess of this amount may be appropriate in the context of very large corporations.'*" ### What is this bill about? The [bill](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r6213) was introduced to "*introduce a stronger penalty framework for corporate and financial sector misconduct*". It was introduced in response to recommendations made by the [ASIC Enforcement Review Taskforce report](https://treasury.gov.au/review/asic-enforcement-review/). — 2018-11-28, House of Representatives: negative, ayes 68, noes 74
- The majority voted against a [Labor Party amendment](https://www.openaustralia.org.au/debate/?id=2018-11-28.137.1) that would have increased the term of imprisonment of the offences included in the bill from 10 years to 15 years. ### What is this bill about? The [bill](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r6213) was introduced to "*introduce a stronger penalty framework for corporate and financial sector misconduct*". It was introduced in response to recommendations made by the [ASIC Enforcement Review Taskforce report](https://treasury.gov.au/review/asic-enforcement-review/). — 2018-11-28, House of Representatives: negative, ayes 68, noes 74
- The majority voted against [paragraph (c)](https://www.openaustralia.org.au/senate/?gid=2018-11-29.22.1) of the amendment moved by Tasmanian Senator [Anne Urquhart](https://theyvoteforyou.org.au/people/senate/tasmania/anne_urquhart) (Labor), which means it failed. ### Amendment text > *At the end of the motion, add: ...* > > *(c) and, in respect of the [Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Bill 2018](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbillhome%2Fr6213%22), the provisions of the bill be referred immediately to the Economics Legislation Committee for inquiry and report by 8 February 2019; ...* — 2018-11-29, Senate: negative, ayes 31, noes 32
- The majority voted against [clause (e)](https://www.openaustralia.org.au/senate/?gid=2019-02-13.15.21) of the [motion](https://www.openaustralia.org.au/senate/?gid=2019-02-13.15.1) moved by Victorian Senator [Jacinta Collins](https://theyvoteforyou.org.au/people/senate/victoria/jacinta_collins) (Labor), which means it failed. ### Motion text > *That: [...]* > > *(e) at the conclusion of consideration of the message, government business order of the day No.4 [Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Bill 2018](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbillhome%2Fr6213%22) shall be called on and have precedence over all government business until determined.* — 2019-02-13, Senate: negative, ayes 30, noes 34
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2018-10-24.
The bill would create tougher penalties for misconduct in corporate and financial sectors.
It would update criminal and civil penalties in laws overseen by the Australian Securities and Investments Commission, including new formulas for fines and expanded civil penalty rules.
The bill would also let courts prioritise compensating victims over collecting financial penalties.
- Increase maximum prison terms for some criminal offences.
- Introduce a method to set financial penalties for criminal offences.
- Remove imprisonment and raise fines for all strict and absolute liability offences.
- Add ordinary criminal offences alongside strict and absolute liability offences.
- Expand the civil penalty regime by raising fines and covering more offences.
- Harmonise and broaden the infringement notice system.
Companies and individuals in the corporate and financial sector.
Sources
em
em supp
em revised
billhome
frl act