Commonwealth act

Securities Exchanges (Membership) Fidelity Funds Contribution Act 1989

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

112 of 1989

Collection

act

Plain English Summary

2/10 complexity

What this law does

This Act creates a tax that members of stock exchanges must pay into fidelity funds — insurance-like pools that compensate investors if a brokerage firm collapses or commits fraud.

Who is affected

Securities exchange members (such as stockbrokers and dealers) who are required to contribute under the Corporations Act.

How much they pay

Minimum: $100 per year
Maximum: Set by government regulations (different caps can apply to different exchanges)
Actual amount: Determined by the individual securities exchange, which can set different rates for different classes of members

How it works

The Act works together with the Corporations Act 1989 (which it incorporates by reference). While the Corporations Act specifies when contributions are due, this Act formally imposes the tax and sets the rules for calculating the amount.

JSON API

Deep dive

Want the full deep dive?

Zoe can write the in-depth analysis on top of the summary above: how it works, who it affects and what each part actually does.

Current sections

Direct links to the current provisions in Securities Exchanges (Membership) Fidelity Funds Contribution Act 1989.

Securities Exchanges (Membership) Fidelity Funds Contribution Act 1989

1.jpg

Securities Exchanges (Membership) Fidelity Funds Contribution Act 1989

No. 112 of 1989

An Act to impose a tax on members of 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 Securities Exchanges (Membership) Fidelity Funds Contribution Act 1989.

Commencement

This Act commences on the same day as Part 7.9 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 Part 7.9 of that Act.

Imposition of tax

The tax by the name of securities exchange (membership) fidelity fund contribution that is payable under subsection 902 (2) of the Corporations Act 1989 by a member of a securities exchange referred to in that subsection is imposed by this Act.

Amount of tax

The amount of the tax is such amount, being not less than $100 and not more than such amount as is prescribed, as is determined by the securities exchange concerned in respect of the member or in respect of a class of members of the security exchange in which the member is included.

Regulations

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

(2) The regulations may prescribe different maximum amounts in relation to different securities 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 Securities Exchanges (Membership) Fidelity Funds Contribution Act 1989

Securities Exchanges (Membership) Fidelity Funds Contribution Act 1989

No. 112 of 1989

An Act to impose a tax on members of 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 Securities Exchanges (Membership) Fidelity Funds Contribution Act 1989.

Commencement

This Act commences on the same day as Part 7.9 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 Part 7.9 of that Act.

Imposition of tax

The tax by the name of securities exchange (membership) fidelity fund contribution that is payable under subsection 902 (2) of the Corporations Act 1989 by a member of a securities exchange referred to in that subsection is imposed by this Act.

Amount of tax

The amount of the tax is such amount, being not less than $100 and not more than such amount as is prescribed, as is determined by the securities exchange concerned in respect of the member or in respect of a class of members of the security exchange in which the member is included.

Regulations

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

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

[Minister’s second reading speech made in—

House of Representatives on 25 May 1988

Senate on 14 October 1988]