{"id":"F2016L01474","name":"ASIC Corporations (Property Rental Schemes) Instrument 2016/870","slug":"asic-corporations-property-rental-schemes-instrument-2016-870","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95112,"registerId":"commonwealth-F2016L01474-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Property Rental Schemes) Instrument 2016/870","content":"![](image.001.png)\n\nASIC Corporations (Property Rental Schemes) Instrument 2016/870\n\nAbout this compilation\n\nCompilation No. 2\n\nThis is a compilation of ASIC Corporations (Property Rental Schemes) Instrument 2016/870 as in force on 5 October 2021. It includes any commenced amendment affecting the legislative instrument to that date.\n\nThis compilation was prepared by the Australian Securities and Investments Commission.\n\nThe notes at the end of this compilation (the endnotes) include information\n\nabout amending instruments and the amendment history of each amended provision.\n\nContents\n\n[Part 1—Preliminary](#_Toc486934006)\n\n[1 Name of legislative instrument](#_Toc486934007)\n\n[3 Authority](#_Toc486934008)\n\n[4 Definitions](#_Toc486934009)\n\n[Part 2—Exemptions](#_Toc486934010)\n\n[5 Relief from scheme registration under Chapter 5C](#_Toc486934011)\n\n[6 Relief from licensing requirement](#_Toc486934012)\n\n[7 Relief from hawking prohibition](#_Toc486934013)\n\n[8 Relief from disclosure provisions](#_Toc486934014)\n\n[Endnotes](#_Toc486934015)\n\n[Endnote 1—Instrument history](#_Toc486934016)\n\n[Endnote 2—Amendment history](#_Toc486934017)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Property Rental Schemes) Instrument 2016/870.\n\n3 Authority\n\nThis instrument is made under subsections 601QA(1), 926A(2), 992B(1) and 1020F(1) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nproperty rental scheme means a managed investment scheme to which all of the following apply:\n\n(a) the scheme involves owners of interests in real property making their interests available for commercial or residential letting or rental purposes (including day to day management of any lease arrangement);\n\n(b) the owners have not acquired their interests in real property jointly as a result of participating in the scheme;\n\n(c) the scheme does not involve a serviced apartment, hotel, motel or resort complex.\n\nreal estate agent means a person who is licensed to manage real property under the law of a State or Territory in this jurisdiction.\n\n  \n\nPart 2—Exemptions\n\n5 Relief from scheme registration under Chapter 5C\n\nA real estate agent who operates a property rental scheme does not have to comply with subsection 601ED(5) of the Act in relation to the scheme.\n\n6 Relief from licensing requirement\n\nA person who provides a financial service in relation to an interest in a property rental scheme does not have to comply with subsection 911A(1) of the Act to the extent that it requires the person to hold an Australian financial services licence covering the provision of the service.\n\nNote: ASIC Corporations (Miscellaneous Technical Relief) Instrument 2015/1115 provides relief from subsections 911A(1) and 911B(1) of the Act to a person who provides financial services on behalf of a person who does not need an Australian financial services licence because of an exemption made under section 926A of the Act.\n\n7 Relief from hawking prohibition\n\nAn interest in a property rental scheme is exempt from section 992A of the Act.\n\n8 Relief from disclosure provisions\n\nAn interest in a property rental scheme is exempt from Divisions 2 to 4 of Part 7.9 of the Act.\n\n> Note 1: The provision of the relief in sections 5 to 8 should not be taken to imply that the ordinary business of real estate agents in leasing or managing property generally or necessarily involves a managed investment scheme. This will not be the case where, for example, the owner of the property has day to day control through being able to give directions to their agent. The relief is provided for the avoidance of doubt and to provide legal certainty.\n\n> Note 2: Conditional relief in relation to arrangements involving a serviced apartment, hotel, motel or resort complex is given by ASIC Corporations (Serviced Apartment and Like Schemes) Instrument 2016/869.\n\nEndnotes\n\nEndnote 1—Instrument history\n\n| Instrument number | Date of FRL registration    | Date of commencement | Application, saving or transitional provisions |\n| ----------------- | --------------------------- | -------------------- | ---------------------------------------------- |\n| 2016/870          | 23/9/2016 (see F2016L01474) | 28/9/2016            |                                                |\n| 2017/580          | 3/7/2017 (see F2017L00871)  | 4/7/2017             | -                                              |\n| 2021/799          | 22/9/2021 (see F2021L01310) | 5/10/2021            | -                                              |\n\nEndnote 2—Amendment history\n\n> Note: ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted\n\n| Provision affected | How affected |\n| ------------------ | ------------ |\n| Section 2          | rep. s48D LA |\n| Section 6 (note)   | am. 2017/580 |\n| Section 7          | am. 2021/799 |","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The instrument has been amended (2017/580; 2021/799). Amendments modified a note to section 6 (2017/580) and altered section 7 (2021/799) relating to hawking relief. These changes refine aspects of coverage but leave the core exemptions (registration, licensing, hawking, disclosure for qualifying schemes) intact; therefore scope was adjusted rather than replaced."},"complexity_factors":["Narrow, technical exemptions that operate by cross‑reference to multiple Corporations Act provisions (ss5–8)","A defined term 'property rental scheme' with three cumulative factual conditions (s4) requiring case‑by‑case assessment of control and acquisition","Interaction with state licensing regimes through the 'real estate agent' definition","Explicit exclusion/conditional treatment of serviced‑apartment or resort‑type arrangements (Note 2 and related instrument 2016/869)","Limited administrative discretion in the instrument itself but potential legal uncertainty at the margins that may generate advisory or compliance costs","Short instrument form, but reliance on broader Act provisions and factual tests increases reliance on legal interpretation"],"plain_english_summary":"This instrument exempts certain \"property rental schemes\"—where owners make real property available for letting through a licensed real estate agent—from parts of the Corporations Act (scheme registration, AFSL licensing, the hawking prohibition and disclosure rules) (ss5–8). It reduces federal regulatory obligations for agents and related service‑providers in qualifying schemes while leaving state real‑estate licensing and factual questions of owner control to be resolved.\n\nThe relief shifts compliance costs to participants who must establish the arrangement fits the definition (s4) and may need legal advice; serviced‑apartment style schemes are excluded (Note 2)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument remains tightly focused on its original purpose: exempting real estate agents from financial services regulation when operating property rental schemes. The 2017 and 2021 amendments were minor technical updates (amending a note and section 7 respectively) that did not expand the scope beyond the original intent of providing relief for traditional property management arrangements."},"complexity_factors":["Very short instrument — only 8 substantive sections across 2 Parts","Only 3 defined terms in section 4 ('Act', 'property rental scheme', 'real estate agent')","No nested exceptions or conditional logic within the operative provisions (sections 5-8 are blanket exemptions)","Minimal cross-referencing — only references to specific Corporations Act sections being exempted, plus one reference to a related instrument in a note","Straightforward structure: preliminary matters, then four standalone exemption provisions","Single amendment of note in section 6 and amendment to section 7 (2021) do not add structural complexity"],"plain_english_summary":"This instrument exempts licensed real estate agents from being treated as running a managed investment scheme when they simply manage rental properties owned individually by landlords. It shields routine property management from licensing, registration and other managed-investment obligations so agents need not become financial services businesses.\n\nThat means landlords can use agent-run rental arrangements without extra compliance, but investors lose the disclosure and regulatory protections that apply to formal managed investment schemes."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-property-rental-schemes-instrument-2016-870","history":"/api/acts/asic-corporations-property-rental-schemes-instrument-2016-870/history","analysis":"/api/acts/asic-corporations-property-rental-schemes-instrument-2016-870/analysis","conflicts":"/api/acts/asic-corporations-property-rental-schemes-instrument-2016-870/conflicts","importantCases":"/api/acts/asic-corporations-property-rental-schemes-instrument-2016-870/important-cases","documents":"/api/acts/asic-corporations-property-rental-schemes-instrument-2016-870/documents"}}