✦ Plain-English Summary

Treasury Laws Amendment (2023 Measures No. 1) Bill 2023

What it does

This bill updates several Australian financial and tax laws. It allows financial services providers to register in multiple categories instead of just one, creates new rules about how companies can buy back their own shares, and tightens regulations around tax agents and sustainability standards for investments.

Why it matters

If you use financial advisors, invest in shares, or work with tax agents, these changes affect how those services are regulated and what companies can do with their own shares. The rules around "franked distributions" (dividends with tax credits) are also tightened to prevent some tax schemes.

Key details

• Multiple registrations: Financial service providers can now hold multiple registrations with ASIC (the corporate regulator) rather than being locked into one category—starts the day after the bill receives Royal Assent.

• Tax agent rules: Tax practitioners face stricter obligations when providing services and must renew registration annually from 1 July 2024. The Tax Practitioners Board gets its own special account to manage its finances.

• Share buy-backs and dividends: Companies face new restrictions on buying back their own shares and distributing franked dividends funded by raising capital—these take effect from the first quarter after the bill passes.

Official Description

Amends the: Corporations Act 2001 to: allow the Australian Securities and Investments Commission (ASIC) to approve applications from one or more licensees to register on the Financial Advisers Register the same relevant provider; and allow assisted decision-making to be used for any purpose for which ASIC may make decisions in the performance or exercise of its functions or powers to register a relevant provider; Australian Securities and Investments Commission Act 2001 to: provide the Australian Accounting Standards Board with functions to develop and formulate sustainability standards; expand the Auditing and Assurance Standards Board's functions to include formulating auditing and assurance standards for sustainability purposes; and expand the Financial Reporting Council's oversight and governance powers to account for the development of sustainability standards; Tax Agent Services Act 2009 to implement certain recommendations of the Review of the Tax Practitioners Board (TPB) by: amending the objects clause of the Act; creating a special account for the TPB; requiring tax practitioners not to employ or use a disqualified entity without the TPB's approval, or enter an arrangement with a disqualified entity; converting the registration period from at least every three years to at least every year; and enabling the minister to supplement the existing Code of Professional Conduct; Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 to align the income tax treatment of off-market share buy-backs undertaken by listed public companies with on-market share buy-backs; and Income Tax Assessment Act 1997 to: ensure the alignment of tax treatment across capital management activities for listed public companies; and prevent certain distributions that are funded by capital raisings from being frankable.

Committee Referrals

Senate Standing Committee for the Scrutiny of Bills; Senate Economics Legislation Committee

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