{"id":"F2021L00500","name":"ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229","slug":"asic-corporations-licence-conditions-treatment-of-lease-assets-instrument-2021-229","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440826,"registerId":"F2021L00500-fast-fetch-1775956318367","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: ASIC Template (Principal Legislative Instruments - Jan 2019)\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229\n\nI, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 26 April 2021\n\n \n\n \n\n \n\nGrant Moodie\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc70320878)\n\n[1 Name of legislative instrument](#_Toc70320879)\n\n[2 Commencement](#_Toc70320880)\n\n[3 Authority](#_Toc70320881)\n\n[4 Definitions](#_Toc70320882)\n\n[Part 2—Declaration](#_Toc70320883)\n\n[5 “Excluded assets” in conditions of Australian financial services licences](#_Toc70320884)\n\n[Part 3—Repeal](#_Toc70320885)\n\n[6 Repeal](#_Toc70320886)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229.\n\n2 Commencement\n\nThis instrument commences on the day after it is registered on the Federal Register of Legislation.\n\nNote: The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au).\n\n3 Authority\n\nThis instrument is made under subsection 926A(2) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nPart 2—Declaration\n\n5 “Excluded assets” in conditions of Australian financial services licences\n\nDivision 3 of Part 7.6 of the Act applies to all financial services licensees as if section 912A of the Act were modified or varied by inserting after subsection (4), the following subsection:\n\n“(4A) For the purposes of paragraph 912A(1)(b), despite anything to the contrary in a condition of the licence (including in a definition in the licence that applies for the purposes of a condition), a right-of-use asset arising under a lease is taken not to be included in the definition of “excluded assets” in the licence.”.\n\nPart 3—Repeal\n\n6 Repeal\n\nThis instrument is repealed on 1 May 2026.\n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument performs exactly the narrow, technical function suggested by its title: modifying licence conditions regarding lease asset treatment. It has not expanded beyond this specific purpose."},"complexity_factors":["Very short instrument: only 6 sections across 3 Parts","Only 1 defined term ('Act') in the interpretation section","Single substantive provision (section 5) containing a straightforward deeming provision","No nested exceptions or conditional logic — operates uniformly on all financial services licensees","No cross-references beyond basic Corporations Act citations","Automatic sunset clause (repeal date) with no complex machinery"],"plain_english_summary":"This instrument stops Australian financial services licensees from treating lease-recognised \"right‑of‑use\" assets as excluded assets in their licence conditions. \n\nBy overriding individual licence wording, it ensures leased assets count in regulatory calculations, closing a loophole created by changes in lease accounting so licensees cannot use lease treatment to reduce their regulatory obligations."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"This instrument changes the scope of assets that count toward the financial-resources condition in paragraph 912A(1)(b) by specifying that a right-of-use asset arising under a lease is not to be treated as an “excluded asset” for licence purposes (cl 5). It therefore broadens the pool of assets that may be relied on for compliance with Division 3 of Part 7.6 of the Corporations Act. The instrument is temporary and will be repealed on 1 May 2026 (cl 6)."},"complexity_factors":["Single, targeted amendment inserting subsection (4A) into s912A (see Instrument, cl 5) but with legal effect across Division 3 of Part 7.6 of the Corporations Act (cross-reference complexity).","Depends on the legal meaning and identification of a “right-of-use asset arising under a lease” as a class (term used in cl 5) — potential for interpretive disputes across licences.","Interacts with licence‑specific definitions of “excluded assets” and varied licence conditions (cl 5), requiring licence-by-licence compliance reassessment.","Made by ASIC under delegated power (cl 3 refers to s926A(2) of the Act), so administrative discretion and reliance on regulator guidance matter for implementation.","Temporal limit (instrument repeals 1 May 2026; cl 6) imposes transitional and reporting planning for licensees and regulators.","Operational impact on financial-resource calculations and reporting systems for many licence-holders despite being a short, procedural amendment."],"plain_english_summary":"This instrument tells all Australian financial services licence holders and ASIC how to treat a “right-of-use” lease asset when applying licence financial-resource rules. Mechanically, it amends the application of section 912A so that a right‑of‑use asset arising under a lease is not treated as an “excluded asset” and therefore may count for the purposes of paragraph 912A(1)(b). It matters because it changes which assets licence-holders can rely on for meeting financial‑resource conditions, affecting compliance reporting and capital assessments."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-licence-conditions-treatment-of-lease-assets-instrument-2021-229","history":"/api/acts/asic-corporations-licence-conditions-treatment-of-lease-assets-instrument-2021-229/history","analysis":"/api/acts/asic-corporations-licence-conditions-treatment-of-lease-assets-instrument-2021-229/analysis","conflicts":"/api/acts/asic-corporations-licence-conditions-treatment-of-lease-assets-instrument-2021-229/conflicts","importantCases":"/api/acts/asic-corporations-licence-conditions-treatment-of-lease-assets-instrument-2021-229/important-cases","documents":"/api/acts/asic-corporations-licence-conditions-treatment-of-lease-assets-instrument-2021-229/documents"}}