7Registrable corporations

7 Registrable corporations

(1) Subject to subsection (2), a corporation is a registrable corporation if, and only if, the corporation is a foreign corporation, a trading corporation formed within the limits of Australia or a financial corporation so formed and any of the following requirements are satisfied: (a) the corporation engages in the provision of finance in the course of carrying on business in Australia; (b) the corporation is specified in a determination under subsection (1A), or is in a class of corporations specified in a determination under subsection (1A). (1A) For the purposes of paragraph (1)(b), APRA may: (a) make a determination in writing specifying a particular corporation or corporations; (b) make a determination in writing specifying a class of corporations or classes of corporations. (1B) A determination made under paragraph (1A)(a) is not a legislative instrument. (1C) A determination made under paragraph (1A)(b) is a legislative instrument. (1D) Before making a determination under paragraph (1A)(a) or (b), APRA must consider: (a) in the case of a determination under paragraph (1A)(a)—whether the corporation or each of the corporations specified in the determination has business activities in Australia that include the provision of finance; or (b) in the case of a determination under paragraph (1A)(b)—whether each corporation in the class of corporations or classes of corporations specified in the determination has business activities in Australia that include the provision of finance. (1E) A failure to comply with subsection (1D) does not affect the validity of the determination. (1F) As soon as practicable after making a determination under paragraph (1A)(a), APRA must give a copy of the determination to each corporation specified in the determination. (1G) A failure to comply with subsection (1F) does not affect the validity of the determination. (2) A corporation is not a registrable corporation if: (a) the corporation, not being a company, society or association, is established for a public purpose by a law of the Commonwealth, of a State or of a Territory; or (b) the corporation is an ADI for the purposes of the Banking Act 1959; or (c) the corporation is a benefit society registered under a law of a State or of a Territory providing for the registration of benefit societies; or (d) the corporation is a private health insurer within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015; or (e) the corporation is registered under section 21 of the Life Insurance Act 1995; or (f) the sole or principal business in Australia of the corporation is insurance business within the meaning of the Insurance Act 1973; or (g) the corporation is authorised by a law of a State or of a Territory to act as an executor, administrator and trustee; or (i) the corporation is covered under subsection (2A); or (ia) the corporation is specified in a determination under subsection (2F), or is in a class of corporations specified in a determination under subsection (2F); or (j) APRA has, by order in writing published in such manner and form as APRA determines to be appropriate, exempted the corporation from the obligation to register under this Act. (2A) For the purposes of paragraph (2)(i), a corporation is covered under this subsection if: (a) the sum of the values of the corporation’s assets in Australia that consist of debts due to the corporation resulting from transactions entered into in the course of the provision of finance by the corporation does not exceed: (i) $50,000,000; or (ii) if a greater or lesser amount is prescribed by the regulations—the amount so prescribed; and (b) the sum of the values of the principal amounts outstanding on loans or other financing covered by subsection (2C) does not exceed: (i) $50,000,000; or (ii) if a greater or lesser amount is prescribed by the regulations—the amount so prescribed. (2B) For the purposes of paragraph (2A)(b), determine the value of the principal amount outstanding on a loan or other financing at the time the loan or other financing arose. (2C) For the purposes of paragraph (2A)(b), a loan or other financing is covered by this subsection if: (a) the loan or other financing arose in the relevant financial year mentioned in subsection (2D); and (b) the funding or originating of the loan or other financing resulted from the carrying out, whether directly or indirectly, of activities by the corporation. (2D) In determining whether the corporation is a registrable corporation at a time, for the purposes of paragraph (2C)(a), the relevant financial year is the most recent financial year ending before that time. (2E) For the purposes of working out whether a corporation (the test corporation) is covered under subsection (2A): (a) identify each other corporation (if any) that is related to the test corporation (disregarding subsections 34(2) and (3)); and (b) treat those other corporations as not being a separate entity, but rather as being a part of the test corporation. (2F) For the purposes of paragraph (2)(ia), APRA may: (a) make a determination in writing specifying a particular corporation or corporations; (b) make a determination in writing specifying a class of corporations or classes of corporations. (2G) A determination made under paragraph (2F)(a) is not a legislative instrument. (2H) A determination made under paragraph (2F)(b) is a legislative instrument. (2J) As soon as practicable after making a determination under paragraph (2F)(a), APRA must give a copy of the determination to each corporation specified in the determination. (2K) A failure to comply with subsection (2J) does not affect the validity of the determination.