{"id":"C2004A00873","name":"Corporations (Compensation Arrangements Levies) Act 2001","slug":"corporations-compensation-arrangements-levies-act-2001","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"106 of 2001","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":24964,"registerId":"commonwealth-C2004A00873-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Corporations (Compensation Arrangements Levies) Act 2001.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences on the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n  Subject to this Act, Part 1.2 (Interpretation) of the Corporations Act 2001 applies for the purposes of this Act as if the provisions of this Act were provisions of Division 3 of Part 7.5 of that Act.\n\n> Note: Part 1.2 of the Corporations Act 2001 includes the Dictionary in section 9 of that Act, so the definitions in that section that apply to Division 3 of Part 7.5 of that Act apply for the purposes of this Act unless this Act otherwise provides.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Imposition of levies in respect of compensation arrangements for financial services markets","content":"#### 4 Imposition of levies in respect of compensation arrangements for financial services markets\n\n  Any levy that is payable under section 883D of the Corporations Act 2001 is imposed by this Act.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Amount of levy","content":"#### 5 Amount of levy\n\n  Compensation rules referred to in subsection 883D(1) of the Corporations Act 2001 must specify, or specify a method for determining, the amount of levy that is to be payable. The amount of levy imposed by section 4 of this Act in a particular situation is the amount specified in, or worked out in accordance with the method specified in, the compensation rules.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Transitional matters—implementation of the Corporations Act 2001","content":"#### 6 Transitional matters—implementation of the Corporations Act 2001\n\n  If, immediately before the commencement of this Act:\n\n(a) an amount of levy was payable to a securities exchange as agent for the Commonwealth under subsection 8(3) or (4) of the Corporations (Securities Exchanges Levies) Act 2001; or\n\n(b) an amount of levy was payable to a futures organisation as agent for the Commonwealth under subsection 6(1) or (2) of the Corporations (Futures Organisations Levies) Act 2001;\n\n  then, on the commencement of this Act, that levy becomes payable, by force of this section, to the operator of the financial market that was that securities exchange or futures organisation (as the case may be), as agent for the Commonwealth.","sortOrder":5}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This legislation maintains its original narrow purpose as a constitutional mechanism to impose levies for compensation arrangements. It has not expanded beyond its original intent as a levy imposition statute that piggybacks on the broader Corporations Act framework."},"complexity_factors":["Extremely short statute — only 6 operative sections","Heavy reliance on external references — the entire substantive content is delegated to \"compensation rules\" under section 883D of the Corporations Act 2001 and Part 7.5 Division 3 of that Act","Single definition section that incorporates by reference the entire Dictionary of the Corporations Act 2001 (section 9) and Part 1.2 interpretation rules","One transitional provision dealing with legacy levies from repealed legislation (Corporations (Securities Exchanges Levies) Act 2001 and Corporations (Futures Organisations Levies) Act 2001)","No nested exceptions, conditional logic, or substantive calculations within the Act itself"],"plain_english_summary":"This law creates a system for collecting money (levies) from financial market operators to fund compensation arrangements for people who lose money due to misconduct in financial services markets.\n\n**What it does:**\n- **Imposes levies** (mandatory fees) on operators of financial markets like stock exchanges\n- These levies fund **compensation arrangements** — schemes that pay out investors and consumers who suffer losses when financial services providers break the rules or become insolvent\n- The actual dollar amounts aren't set in this law; instead, \"compensation rules\" made under the main Corporations Act determine how much each operator pays\n\n**Who it affects:**\n- **Financial market operators** (such as securities exchanges and futures organisations) who must pay these levies\n- **Investors and consumers** who benefit from the compensation funds if things go wrong with their financial service provider\n\n**Why it matters:**\nThis law ensures there's a pool of money available to compensate ordinary people who lose savings or investments due to dodgy behaviour in financial markets. It shifts the cost of this protection onto the market operators themselves, rather than taxpayers.\n\n**Key technical point:**\nThis is a \"levy imposition Act\" — a special type of law required by the Australian Constitution (section 55) that separates the decision to tax/charge money from the rules about how that money is administered. That's why it's short: it just says \"the levy exists\" and points to other laws for the details."},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act remains tightly focused on its original narrow purpose: formally imposing compensation arrangement levies for financial markets as required by the constitutional separation between levy-imposing Acts and Acts that deal with the collection and use of those levies. The transitional provision in section 6 is consistent with this scope, simply redirecting pre-existing obligations to the new regulatory framework."},"complexity_factors":["The Act itself is very short and mechanical, but its meaning depends almost entirely on cross-referencing external legislation (Corporations Act 2001, Financial Services Reform Act 2001, and two predecessor Acts)","Constitutional necessity drives its structure — it exists solely to satisfy the requirement that levies be imposed by a specific Act of Parliament, making its purpose opaque without background knowledge","The amount of the levy is not set in this Act but delegated to compensation rules made elsewhere, requiring further investigation to understand the actual financial impost","Transitional provisions require understanding of superseded legislation (Corporations (Securities Exchanges Levies) Act 2001 and Corporations (Futures Organisations Levies) Act 2001)","Definitions are incorporated by reference from another Act's interpretation provisions, rather than being self-contained"],"plain_english_summary":"This short Act formally imposes levies on licensed financial market operators to fund the compensation arrangements required under the Corporations Act. It therefore affects exchanges and similar market operators — and indirectly market participants who rely on those investor protection funds. The law matters because, constitutionally, such levies must be imposed by Parliament to keep compensation funds viable and maintain investor confidence."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act does not change who ultimately bears the levy under s883D; it gives statutory force to those levies (s4), leaves levy amounts to the compensation rules (s5), and redirects collection to financial market operators as Commonwealth agents under transitional arrangements (s6). The core substantive scope of the levy (its purpose and incidence under s883D) remains as set by the Corporations Act."},"complexity_factors":["Cross-references to the Corporations Act for interpretation and definitions (s3; Part 1.2 of Corporations Act)","Levy amount and calculation are specified by separate compensation rules linked to s883D of the Corporations Act (s5), requiring consultation of another instrument","Transitional agency arrangements move collection responsibilities to financial market operators (s6), creating a chain of collection and accountability","Commencement is tied to an external instrument (item 1 of Schedule 1 to the Financial Services Reform Act 2001) rather than a fixed date (s2)","Very short statutory text; operational detail and administrative mechanics are delegated to rules and other Acts, increasing cross-instrument reading"],"plain_english_summary":"Sets up a statutory levy that funds compensation arrangements for financial markets by giving legal force to levies payable under section 883D of the Corporations Act. Compensation rules determine the levy amount; financial market operators collect the levies and act as agents for the Commonwealth under transitional arrangements, with compliance obligations falling on market participants (s6). The law affects market operators, securities exchanges, futures organisations and the participants who ultimately meet the levy."},"issue_detection":{"absurdities":[],"contradictions":[]},"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"}},"importantCases":[],"_links":{"self":"/api/acts/corporations-compensation-arrangements-levies-act-2001","history":"/api/acts/corporations-compensation-arrangements-levies-act-2001/history","analysis":"/api/acts/corporations-compensation-arrangements-levies-act-2001/analysis","conflicts":"/api/acts/corporations-compensation-arrangements-levies-act-2001/conflicts","importantCases":"/api/acts/corporations-compensation-arrangements-levies-act-2001/important-cases","documents":"/api/acts/corporations-compensation-arrangements-levies-act-2001/documents"}}