Commonwealth act

National Guarantee Fund (Participating Exchanges) Levy Act 1989

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

115 of 1989

Collection

act

Plain English Summary

2/10 complexity

This law creates a tax (levy) on securities exchanges that participate in Australia's National Guarantee Fund.

What it does:

Authorises the charge: It formally imposes the levy that is mentioned in section 940 of the Corporations Act 1989.
Who sets the amount: A body called SEGC (the Securities Exchange Guarantee Corporation) decides the specific dollar amount each exchange must pay, set in writing for each exchange.
Caps on the charge: SEGC cannot charge unlimited amounts—the Governor-General sets a maximum limit via regulations (which can be different for different exchanges).

Why it matters: This levy funds the National Guarantee Fund, which acts like an insurance scheme protecting investors if a stockbroker becomes insolvent (goes broke) or fails to complete trades. The exchanges pay into this safety net to help protect investors and maintain confidence in the stock market.

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Current sections

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National Guarantee Fund (Participating Exchanges) Levy Act 1989

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National Guarantee Fund (Participating Exchanges) Levy Act 1989

No. 115 of 1989

An Act to impose a levy on certain securities exchanges

[Assented to 14 July 1989]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title

This Act may be cited as the National Guarantee Fund (Participating Exchanges) Levy Act 1989.

Commencement

This Act commences on the same day as Part 7.10 of the Corporations Act 1989.

Incorporation

The Corporations Act 1989 is incorporated, and shall be read as one, with this Act, and shall be so read as if the provisions of this Act were provisions of Division 4 of Part 7.10 of that Act.

Imposition of levy

Any levy that is payable under section 940 of the Corporations Act 1989 is imposed by this Act.

Rate of levy

A levy in respect of a participating exchange shall be of such amount (not exceeding the prescribed amount) as is determined in writing by SEGC in relation to that exchange.

Regulations

(1) The Governor-General may make regulations prescribing a maximum amount or maximum amounts for the purposes of section 5.

(2) The regulations may prescribe different maximum amounts in relation to different participating exchanges.

[Minister’s second reading speech made in—

House of Representatives on 25 May 1988

Senate on 14 October 1988]

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 National Guarantee Fund (Participating Exchanges) Levy Act 1989

National Guarantee Fund (Participating Exchanges) Levy Act 1989

No. 115 of 1989

An Act to impose a levy on certain securities exchanges

[Assented to 14 July 1989]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title

This Act may be cited as the National Guarantee Fund (Participating Exchanges) Levy Act 1989.

Commencement

This Act commences on the same day as Part 7.10 of the Corporations Act 1989.

Incorporation

The Corporations Act 1989 is incorporated, and shall be read as one, with this Act, and shall be so read as if the provisions of this Act were provisions of Division 4 of Part 7.10 of that Act.

Imposition of levy

Any levy that is payable under section 940 of the Corporations Act 1989 is imposed by this Act.

Rate of levy

A levy in respect of a participating exchange shall be of such amount (not exceeding the prescribed amount) as is determined in writing by SEGC in relation to that exchange.

Regulations

(1) The Governor-General may make regulations prescribing a maximum amount or maximum amounts for the purposes of section 5.

(2) The regulations may prescribe different maximum amounts in relation to different participating exchanges.

[Minister’s second reading speech made in—

House of Representatives on 25 May 1988

Senate on 14 October 1988]