{"id":"C2004A00822","name":"Corporations (National Guarantee Fund Levies) Act 2001","slug":"corporations-national-guarantee-fund-levies-act-2001","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"54 of 2001","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":24958,"registerId":"commonwealth-C2004A00822-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 (National Guarantee Fund Levies) Act 2001.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences at the same time as the Corporations 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 4 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 4 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 National Guarantee Fund","content":"#### 4 Imposition of levies in respect of National Guarantee Fund\n\n  The following levies are imposed by this Act:\n    (a) any levy that is payable under section 889J of the Corporations Act 2001;\n    (b) any levy that is payable under section 889K of the Corporations Act 2001.\n  These levies relate to the situation in which the amount in the National Guarantee Fund is less than the minimum amount referred to in section 889I of the Corporations Act 2001.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Amount of levy","content":"#### 5 Amount of levy\n\n  (1) A determination referred to in subsection 889J(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 paragraph 4(a) of this Act in relation to the determination is the amount specified in, or worked out in accordance with the method specified in, the determination.\n  (2) A determination referred to in subsection 889K(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 paragraph 4(b) of this Act in relation to the determination is the amount specified in, or worked out in accordance with the method specified in, the determination.\n  (3) Different amounts or methods may be specified in the same determination (whether it is a determination referred to in subsection 889J(1) or a determination referred to in subsection 889K(1)) in relation to different classes of matters of things.\n  (4) A determination referred to in subsection 889J(1) of the Corporations Act 2001 must not specify an amount of levy, or a method for determining the amount of levy, that results in the total amount in levies that becomes payable to the SEGC in a financial year exceeding 150% of the minimum amount in relation to the NGF on 1 July in the financial year.","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  (1) If, immediately before the commencement of this Act, an amount was payable by a person to a securities exchange under section 938 of the old Corporations Law of a State or Territory in this jurisdiction, a liability to pay a levy of the same amount, in respect of the same matter, to the Commonwealth is imposed on the person by this subsection on the commencement of this Act. The levy is payable to the operator of the financial market that was that securities exchange as agent for the Commonwealth.\n  (2) If, immediately before the commencement of this Act, an amount was payable by a person to SEGC under section 940 of the old Corporations Law of a State or Territory in this jurisdiction, a liability to pay a levy of the same amount, in respect of the same matter, to the Commonwealth is imposed on the person by this subsection on the commencement of this Act. The levy is payable to SEGC as agent for the Commonwealth.\n  (3) If, immediately before the commencement of this Act, an amount was payable by a person to a securities exchange under section 941 of the old Corporations Law of a State or Territory in this jurisdiction, a liability to pay a levy of the same amount, in respect of the same matter, to the Commonwealth is imposed on the person by this subsection on the commencement of this Act. The levy is payable to the operator of the financial market that was that securities exchange as agent for the Commonwealth.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Transitional matters—implementation of the Financial Services Reform Act 2001","content":"#### 7 Transitional matters—implementation of the Financial Services Reform Act 2001\n\n  A determination that, immediately before the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001, had effect (including because of subsection 6(4) of this Act as then in force) for the purposes of subsection 5(1), (2) or (3) of this Act as then in force continues to have effect (and may be dealt with) after that commencement as if it were:\n    (a) if the determination had effect for the purposes of subsection 5(1) or (2) of this Act as then in force—a determination for the purposes of subsection 5(1) of this Act as in force after that commencement; or\n    (b) if the determination had effect for the purposes of subsection 5(3) of this Act as then in force—a determination for the purposes of subsection 5(2) of this Act as in force after the commencement.","sortOrder":6}],"analysis":{"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act remains focused on its original narrow purpose: imposing levies to replenish the National Guarantee Fund when it falls below its minimum balance. The Financial Services Reform Act 2001 amendments updated terminology and restructured some provisions to align with the new financial services framework, but did not materially expand or contract the scope of the levy regime."},"complexity_factors":["Cross-references heavily to the Corporations Act 2001 (particularly Division 4 of Part 7.5 and sections 889I, 889J, 889K), requiring the reader to consult multiple pieces of legislation to fully understand the law","Definitions are imported by reference from another Act rather than being self-contained","Two-stage transitional provisions covering both the introduction of the Corporations Act 2001 and the later Financial Services Reform Act 2001, requiring understanding of superseded law","The levy cap calculation (150% of the minimum NGF balance on 1 July) involves a formula that depends on external determinations and fund balances","References to the 'old Corporations Law' of various States and Territories adds a layer of historical legal context","The role of SEGC and financial market operators as agents for the Commonwealth adds structural complexity to the payment mechanism"],"plain_english_summary":"The Act lets the Commonwealth require stockbrokers and other market participants to pay special levies to top up the National Guarantee Fund (NGF), a safety pool that protects investors if a broker or securities firm fails. Administered by the Securities Exchanges Guarantee Corporation, levies are set by formal determination, capped to prevent excessive charging, and transitional rules preserve earlier levy obligations during the shift to Commonwealth regulation."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: imposing levies to maintain the National Guarantee Fund. The transitional provisions in sections 6 and 7 were always intended as temporary measures for the 2001 legislative transition and do not represent scope creep."},"complexity_factors":["Heavy reliance on external definitions: the entire interpretation framework is imported from Part 1.2 of the Corporations Act 2001, including section 9 Dictionary definitions","Cross-referencing to specific sections of the Corporations Act (889I, 889J, 889K) without reproducing their content","Transitional provisions referencing repealed legislation ('old Corporations Law') and the Financial Services Reform Act 2001","Conditional logic in section 5(4) creating a mathematical cap (150% of minimum amount)","Agent/principal payment structure where levies are paid to market operators or SEGC (Securities Exchanges Guarantee Corporation) on behalf of the Commonwealth"],"plain_english_summary":"This law creates a system for charging **levies** (mandatory fees) to help fund Australia's **National Guarantee Fund** (NGF). The NGF is a safety net that compensates investors if a stockbroker or financial market operator collapses and can't return their money or shares.\n\n**What it does:**\n- **Imposes two types of levies** on certain financial market participants when the NGF falls below its minimum required amount:\n  - **Section 889J levies**: Charged to financial market operators (like stock exchanges)\n  - **Section 889K levies**: Charged to other entities that contribute to the fund\n- **Caps the total levies**: No more than 150% of the minimum fund amount can be collected in a single financial year\n- **Lets the government set different rates** for different types of market participants\n\n**Who it affects:**\n- Stock exchanges and other financial market operators\n- Entities that are required to contribute to the National Guarantee Fund\n- These parties must pay levies when the fund needs topping up\n\n**Why it matters:**\nThis law ensures Australia's investor protection scheme stays financially healthy. Without it, there would be no legal mechanism to force contributions when the safety net runs low, potentially leaving investors unprotected if a broker fails.\n\n**Historical note:** The law also handled the transition from old state-based securities laws to the national Corporations Act in 2001, converting existing payment obligations into Commonwealth levies."},"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"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"No. The Act preserves and converts existing levy liabilities into Commonwealth levies on the same matters at commencement (s6) and preserves prior determinations for continued effect (s7), so the statutory scope of who may be charged and what triggers a levy is carried forward rather than expanded."},"complexity_factors":["Cross‑references to the Corporations Act for definitions and operative provisions (s3 referencing Part 1.2 and ss889I, 889J, 889K).","Delegated discretion to set levy amounts or methods via determinations rather than fixed statutory rates (s5(1)–(3)).","Numeric cap on aggregate levies in a financial year requiring calculation against the NGF minimum (s5(4)).","Multiple levy types created by reference to separate Corporations Act provisions (s4(a)–(b)).","Transitional mapping of pre‑existing liabilities and continuing effect of prior determinations (ss6–7) which requires administrative reconciliation."],"plain_english_summary":"The Act authorises levies to top up the National Guarantee Fund when its balance is below the statutory minimum (s4).\n\nLevies arise under ss889J/889K; amounts are set by official determinations (s5), subject to a 150% annual cap of the NGF minimum (s5(4)), and are payable by identified persons—often collected via securities exchanges or SEGC acting as agents (s6). Transitional rules carry over pre‑existing levy liabilities and determinations (ss6–7)."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/corporations-national-guarantee-fund-levies-act-2001","history":"/api/acts/corporations-national-guarantee-fund-levies-act-2001/history","analysis":"/api/acts/corporations-national-guarantee-fund-levies-act-2001/analysis","conflicts":"/api/acts/corporations-national-guarantee-fund-levies-act-2001/conflicts","importantCases":"/api/acts/corporations-national-guarantee-fund-levies-act-2001/important-cases","documents":"/api/acts/corporations-national-guarantee-fund-levies-act-2001/documents"}}