Anne Stanley (Werriwa, Australian Labor Party) Share this | Hansard source

I rise to make my contribution to the Treasury Laws Amendment (2023 Law Improvement Package No. 1) Bill 2023. The Albanese government is committed to ensuring that the Treasury portfolio legislation remains current and fit for purpose. The amendments in this bill are mostly technical in nature and are intended to reduce the complexity in Australia's corporations and financial services law, increase navigability and enhance clarity. Although they are only technical in nature, that doesn't mean they are any less important or require any less debate in this House. These amendments, of course, will be important for anyone who touches the system, from consumers to providers of services—in other words, all Australians. Simplicity means that all players in this system have an opportunity to fully understand their rights and obligations.

Schedules 1, 2 and 3 of the bill implement the Australian Law Reform Commission's interim report A and interim report B on the legislative frameworks for corporations and financial services regulations. The Australian Law Reform Commission's review was initiated in 2020 and formed part of the Australian government's response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The purpose of the review is to inquire into potential simplifications and rationalisations of Australia's financial services law. It is an important inquiry that is complicated, complex and necessarily thorough.

Interim report A was handed down in 2021. Interim report B was handed down in September 2022. Interim report A contained recommendations in relation to the reform of corporations and financial services legislation, and interim report B focused on the location of material within the legislative hierarchy, who makes regulation, and the structure and organisation of legislation. The Australian Law Reform Commission's final report is to be provided to this government in November 2023.

Schedules 1 to 3 of this bill will improve and simplify law by unfreezing the Acts Interpretation Act 1901 so the current version applies to the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001; creating a single glossary of all defined terms in section 9 of the Corporations Act; repealing redundant provisions, including definitions that are no longer used and cross-references to repealed provisions; correcting errors; and improving clarity, with a particular focus on terms defined as having more than one meaning and definitions containing substantive obligations. These are straightforward recommendations of the interim reports that are to be implemented prior to the final report due at the end of this year.

Schedule 4 of this bill relates to certain legislative instruments that regulate the insurance industry that are due to sunset on 1 October 2023. These amendments to the Insurance Acquisition and Takeovers Act 1991, Life Insurance Act 1995 and the Insurance Act 1973 are for the purpose of sunsetting. These legislative instruments are to ensure they are kept up to date and only remain as long as they are needed. These acts regulate the types of persons that may carry an insurance businesses, and prescribe the standards that ensure the effective and careful management of the insurance industry in order to protect consumers and policy holders. It is of course the government's responsibility to ensure that policy holders and consumers are protected so they know what they are being covered for, and that the companies providing the coverage that has been agreed to will provide that coverage if the worst happens and they need to act on the policies.

The amendments in schedule 4 of this bill are again of a technical nature and will update certain provisions to reflect modern communication practices, allow regulators to administratively prescribe the manner and form of certain notices to increase flexibility and to align with modern drafting practices, and move some provisions in the insurance instruments into the primary legislation. Sunsetting is necessary, and sunsetting clauses in any legislation, particularly in this legislation, are necessary to ensure that legislative instruments are kept up to date, are relevant and only remain in force as long as needed. They are part of the way that we simplify acts of parliament.

Schedule 5 of this bill amends the Corporations Act and the National Consumer Credit Protection Act 2009 and will incorporate long-standing and accepted matters that are currently found in the Australian Securities and Investment Commission, ASIC, legislation. There has been a long-term reliance on ASIC's exemption and modification powers relating to updating the law for changing circumstances. This can make it difficult for regulated entities to fully understand the state of the law as it applies to them.

Schedule 5 will improve the clarity of the law so that regulated entities are provided with certainty, and so that consumers understand their rights and obligations. Our financial systems are better fit for purpose when everybody involved in the system understands what they should do, their rights and their expectations.

The sixth and final schedule of this bill relates to minor technical amendments to various laws. These amendments will ensure laws operate in accordance with the policy intent, and make minor changes that will improve administrative outcomes. It also makes amendments to remedy unintended consequences and correct technical and drafting defects.

These minor yet important amendments reflect the Albanese government's commitment to the ongoing maintenance of Treasury laws, to ensure that the law is operated as intended and to make it easy for all Australians and Australian entities to comply with our current laws. Schedules 1 to 6 of the bill deliver on a need to update and ensure Treasury laws are fit for purpose constantly and consistently. I note these bills were the subject of public consultation at various times since November 2022. The government has considered all submissions, and many of the submissions made are reflected in the bill before the House today.

The government appreciates the interest shown by everybody who made these contributions, as we want to ensure that we improve the financial system for all players and that we get the legislation right. I thank the Assistant Treasurer and the Minister for Financial Services for his continued work in this space. As someone who worked for the financial industry for a very long time, I know that anything that simplifies the rules for the people who work there and the people who are getting financial products is very important. So I commend the bill to the House and look forward to it passing.

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