A Bill for an Act to amend the law in relation to workplace relations, and for related purposes
The Parliament of Australia enacts:
1 Short title
This Act is the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information |
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | |
| 2. Schedule 1 | A single day to be fixed by Proclamation. However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. | |
| 3. Schedule 2, Parts 1 to 3 | A single day to be fixed by Proclamation. However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. | |
| 4. Schedule 2, Part 4 | The day after this Act receives the Royal Assent. | |
| 5. Schedule 2, item 33 | The later of: (a) immediately after the commencement of the provisions covered by table item 3; and (b) the time item 9 of Schedule 1 to the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Act 2017 commences. However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | |
| 6. Schedule 2, item 34 | At the same time as the provisions covered by table item 3. However, the provisions do not commence at all if item 12 of Schedule 5 to the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Act 2017 commences before that time. | |
| 7. Schedule 2, item 35 | The later of: (a) immediately after the commencement of the provisions covered by table item 3; and (b) immediately after the commencement of item 12 of Schedule 5 to the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Act 2017. However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | |
| 8. Schedule 3 | Immediately after the commencement of the provisions covered by table item 3. | |
| 9. Schedule 4, item 1 | A single day to be fixed by Proclamation. However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. | |
| 10. Schedule 4, item 2 | The later of: (a) immediately after the commencement of the provisions covered by table item 9; and (b) the time the provisions covered by table item 3 commence. | |
| 11. Schedule 4, item 3 | At the same time as the provisions covered by table item 9. | |
| 12. Schedule 5, items 1 to 3 | A single day to be fixed by Proclamation. However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. | |
| 13. Schedule 5, item 4 | The later of: (a) the time the provisions covered by table item 3 commence; and (b) immediately after the commencement of the provisions covered by table item 12. | |
| 14. Schedule 5, item 5 | At the same time as the provisions covered by table item 12. | |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Financial management and accountability
Part 1—Amendments
Fair Work (Registered Organisations) Act 2009
1 Section 6
Insert:
credit card has the meaning given by subsection 252A(7).
reportable grant or donation has the meaning given by subsection 237(1B).
reportable loan has the meaning given by subsection 237(1A).
2 Paragraph 141(1)(ca)
Repeal the paragraph.
3 Section 142A
Repeal the section.
4 Section 229
After “donations made by”, insert “or to”.
5 Subsection 237(1)
Repeal the subsection, substitute:
(1) An organisation must, within 90 days after the end of each financial year (or such longer period as the Commissioner allows), lodge with the Commissioner a statement setting out the following:
(a) the particulars mentioned in subsection (5) in relation to each reportable loan made by the organisation during the financial year;
(b) the particulars mentioned in subsection (6) in relation to each reportable grant or donation made by the organisation during the financial year;
(c) the particulars mentioned in subsection (5) in relation to each reportable loan made to the organisation during the financial year;
(d) the particulars mentioned in subsection (6) in relation to each reportable grant or donation made to the organisation during the financial year.
Civil penalty: 100 penalty units.
(1A) Each of the following is a reportable loan:
(a) a loan exceeding $1,000;
(b) a loan of $1,000 or less made by the organisation to a person during the financial year, if the total value of loans, grants and donations made by the organisation to the person during the financial year exceeds $1,000;
(c) a loan of $1,000 or less made to the organisation by a person during the financial year, if the total value of loans, grants and donations made to the organisation by the person during the financial year exceeds $1,000.
(1B) Each of the following is a reportable grant or donation:
(a) a grant or donation exceeding $1,000;
(b) a grant or donation of $1,000 or less made by the organisation to a person during the financial year, if the total value of loans, grants and donations made by the organisation to the person during the financial year exceeds $1,000;
(c) a grant or donation of $1,000 or less made to the organisation by a person during the financial year, if the total value of loans, grants and donations made to the organisation by the person during the financial year exceeds $1,000.
6 After subsection 237(4)
Insert:
(4A) However, the Commissioner:
(a) must omit from the statement any residential addresses; and
(b) may, at the Commissioner’s discretion, omit other personal information.
7 Subsection 237(5)
Omit “relevant particulars, in relation to a loan made by”, substitute “particulars, in relation to a loan made by or to”.
8 Paragraph 237(5)(d)
Repeal the paragraph, substitute:
(d) for a loan made by an organisation, other than to relieve a member of the organisation, or a dependant of such a member, from severe financial hardship—the name and address of the person to whom the loan was made and the arrangements for repayment of the loan; and
(e) for a loan made to an organisation—the name and address of the person who made the loan and the arrangements for repayment of the loan.
9 Subsection 237(6)
Omit “relevant particulars, in relation to a grant or donation made by”, substitute “particulars, in relation to a grant or donation made by or to”.
10 Paragraph 237(6)(c)
Repeal the paragraph, substitute:
(c) for a grant or donation made by an organisation, other than to relieve a member of the organisation, or a dependant of such a member, from severe financial hardship—the name and address of the person to whom the grant or donation was made; and
(d) for a grant or donation made to an organisation—the name and address of the person who made the grant or donation.
11 Paragraph 252(1)(a)
Omit “including such”, substitute “including the records mentioned in section 252A and such other”.
12 At the end of subsection 252(1)
Add:
; and (d) keep its financial records in such a manner as will enable the officer and related party disclosure statement to be prepared from them under section 293J, for:
(i) the organisation to which the reporting unit relates (whether or not the reporting unit is the organisation itself); and
(ii) if the reporting unit is made up of one or more branches of an organisation—each such branch.
Civil penalty: 100 penalty units.
13 At the end of subsection 252(5)
Add:
Civil penalty: 100 penalty units.
14 After section 252
Insert:
252A Records of use of credit cards
(1) This section sets out records that must be kept by a reporting unit for the purposes of paragraph 252(1)(a).
Statements for credit cards held by reporting unit
(2) The reporting unit must keep statements, or copies of statements, given by the issuer of a credit card in relation to use of the card, if the account for the card is held by the reporting unit.
Records of use of other credit cards for reporting unit etc.
(3) The reporting unit must keep records in accordance with subsection (4) of a particular use of a credit card, the account for which is not held by the reporting unit, if:
(a) the reporting unit, the organisation to which it relates (if the reporting unit is not the organisation itself) or a branch that is, or is part of, the reporting unit is obliged to pay an amount in relation to that use; and
(b) the user was:
(i) an officer of the organisation to which the reporting unit relates (whether or not the reporting unit is the organisation itself); or
(ii) an officer of a branch that is, or is part of, the reporting unit; and
(c) the use was on behalf of (or purportedly on behalf of) the reporting unit, or in the course of (or purportedly in the course of) performing duties in relation to the reporting unit.
(4) For the purposes of subsection (3), a record of a particular use of a credit card must include at least the information about the use that was included in the statement covering the use given by the issuer of the credit card to the credit card account holder.
(5) Without limiting paragraph (3)(a), that paragraph includes being obliged to pay an amount:
(a) to the credit card account; or
(b) to reimburse the holder of the credit card account, or another person who pays, or is obliged to pay, an amount to the credit card account.
(6) To avoid doubt, subsection (3) applies in relation to a credit card:
(a) whether or not the credit card account is held by an officer mentioned in paragraph (3)(b) or any other person; and
(b) whether or not the credit card is used in ways other than as mentioned in subsection (3).
However, subsection (3) does not require the reporting unit to keep records of a particular use of the credit card if that use is not covered by the subsection.
Definition of credit card
(7) A credit card is any article that is one or more of the following:
(a) an article of a kind commonly known as a credit card or charge card;
(b) any similar article intended for use in obtaining cash, goods or services on credit;
(c) an article of a kind that persons carrying on business commonly issue to their customers or prospective customers, for use in obtaining goods or services from those persons on credit.
15 Section 293A
Omit:
It also restricts disclosing officers from taking part in making decisions in relation to matters in which they have a material personal interest, requires the preparation of officer and related party disclosure statements and requires officers to undertake approved training in relation to their financial duties.
substitute:
It also:
(a) restricts disclosing officers from taking part in making decisions in relation to matters in which they have a material personal interest; and
(b) requires the preparation of officer and related party disclosure statements; and
(c) requires officers to undertake approved training in relation to their financial duties; and
(d) requires organisations and branches to maintain approved binding policies in relation to financial management and accountability.
16 At the end of Part 2A of Chapter 9
Add:
Division 5—Policies in relation to financial management and accountability
293N Organisations and branches to have policies in relation to financial management and accountability
(1) An organisation and any branch of an organisation must at all times have written policies, approved by the committee of management of the organisation or branch and binding on all officers and employees of the organisation or branch, that deal with the all of the following matters in relation to the organisation or branch:
(a) financial decision‑making;
(b) receipts;
(c) levels of authorisation of expenditure;
(d) credit cards;
(e) procurement;
(f) hospitality and gifts;
(g) the establishment, operation and governance of related parties;
(h) any other matters prescribed by the regulations.
Civil penalty: 100 penalty units.
(2) An organisation or a branch of an organisation must ensure that a policy mentioned in subsection (1) is not inconsistent with this Act.
Civil penalty: 100 penalty units.
(3) An organisation or a branch of an organisation must ensure that each policy mentioned in subsection (1) is reviewed at least once:
(a) during the period of 4 years after it is approved by the committee of management; and
(b) during the period of 4 years after the completion of the last review.
Civil penalty: 100 penalty units.
293P Compliance with policies
In determining whether an officer or employee of an organisation or a branch of an organisation has contravened a provision of Division 2 of Part 2 of this Chapter (general duties in relation to the financial management of organisations), regard may be had to whether the officer or employee acted in compliance with policies of the organisation or branch mentioned in subsection 293N(1).
293Q Availability of policies
(1) An organisation or a branch of an organisation must give a copy of each policy mentioned in subsection 293N(1) to the Commissioner, no later than 28 days after any of the following:
(a) the policy is first approved by the committee of management of the organisation or branch;
(b) a review of the policy is completed;
(c) a material change is made to the policy.
Civil penalty: 100 penalty units.
(2) If an organisation or branch is required under subsection (1) to give the Commissioner a copy of a policy, the organisation or branch must also ensure that:
(a) the policy is made available to its members on the website of the organisation or branch (if any); or
(b) a copy of the policy is given to its members.
293R Model policies in relation to financial management and accountability
(1) The Commissioner may publish on the Commission’s website one or more model policies in relation to the matters mentioned in subsection 293N(1). An organisation or a branch of an organisation may adopt a model policy in whole or in part, and with or without modification.
(2) A model policy published under subsection (1) is not a legislative instrument.
Part 2—Application and transitional provisions
17 Application of amendments of section 237
The amendments of section 237 of the Fair Work (Registered Organisations) Act 2009 made by this Schedule apply in relation to financial years that commence on or after the day this item commences.
18 Application of section 293N
(1) Section 293N of the Fair Work (Registered Organisations) Act 2009, as inserted by this Schedule, does not apply in relation to an organisation or a branch of an organisation until the end of the period of 6 months starting on the day this item commences.
(2) During that period of 6 months, and despite the repeal of paragraph 141(1)(ca) of that Act by this Schedule, paragraph 141(1)(ca) continues in effect.
Schedule 2—Regulation of worker entitlement funds
Part 1—Amendments
Fair Work Act 2009
1 Paragraph 5(8)(b)
After “high‑income employees”, insert “, as well as providing that certain terms have no effect”.
2 Section 12
Insert:
registered charity means an entity that is registered under the Australian Charities and Not‑for‑profits Commission Act 2012 as the type of entity mentioned in column 1 of item 1 of the table in subsection 25‑5(5) of that Act.
registered worker entitlement fund means a worker entitlement fund that is registered under Part 3C of Chapter 11 of the Registered Organisations Act.
worker entitlement fund has the same meaning as in the Registered Organisations Act.
3 After section 151
Insert:
151A Terms about payments to worker entitlement funds
A modern award must not include a term that requires or permits, or has the effect of requiring or permitting, a payment to be made (whether by deduction or by any other means) to a worker entitlement fund, unless:
(a) the fund is a registered worker entitlement fund; and
(b) each of the employees on whose behalf the payments are to be made can choose the registered worker entitlement fund to which the payments are to be made.
4 At the end of section 194
Add:
; or (i) a term that has the effect of requiring or permitting payments to be made to a worker entitlement fund, unless:
(i) the fund is a registered worker entitlement fund; and
(ii) each of the employees on whose behalf the payments are to be made can choose the registered worker entitlement fund to which the payments are to be made; or
(j) a term that has the effect of requiring or permitting payments to be made for a kind of insurance cover, unless each employee to be covered can choose the insurance product (offering that kind of cover) for which the payments are to be made; or
(k) a term that has the effect of requiring or permitting payments to be made to a fund that provides training or welfare or makes payments in relation to training or welfare, unless the fund is:
(i) a superannuation fund; or
(ii) a registered worker entitlement fund; or
(iii) a registered charity; or
(iv) a deductible gift recipient within the meaning of the Income Tax Assessment Act 1997; or
(v) operated by an entity endorsed as a deductible gift recipient within the meaning of the Income Tax Assessment Act 1997 for the operation of the fund.
5 At the end of section 321
Add:
Division 4 provides that certain terms have no effect.
6 Subsection 324(1) (note 2)
Omit “section 326”, substitute “sections 326 and 333B”.
7 Paragraph 327(b)
After “326(3)”, insert “or section 333B”.
8 At the end of Part 2‑9
Add:
Division 4—Other matters
333B Certain terms relating to worker entitlement funds etc. have no effect
A term of a contract of employment between an employer and an employee has no effect to the extent that the term would require or permit payments to be made:
(a) to a worker entitlement fund that is not a registered worker entitlement fund; or
(b) to a fund that provides training or welfare or makes payments in relation to training or welfare, unless the fund is:
(i) a superannuation fund; or
(ii) a registered charity; or
(iii) a deductible gift recipient within the meaning of the Income Tax Assessment Act 1997; or
(iv) operated by an entity endorsed as a deductible gift recipient within the meaning of the Income Tax Assessment Act 1997 for the operation of the fund.
9 At the end of subparagraph 604(1)(b)(ii)
Add “other than under Part 3C of Chapter 11 (registration of worker entitlement funds)”.
Fair Work (Registered Organisations) Act 2009
10 Section 6
Insert:
associate has the same meaning as in section 318 of the Income Tax Assessment Act 1936.
condition: a reference in Part 3C of Chapter 11 to a condition with a number is a reference to the condition in that numbered item of the table in section 329LA (conditions for registration of a worker entitlement fund).
constitution of a worker entitlement fund means the document or the documents together constituting the fund (this includes the trust deed if the fund is a trust).
fund member has the meaning given by subsection 329HC(2).
initial condition has the meaning given by paragraph 329LA(a).
ongoing condition has the meaning given by paragraph 329LA(b).
operator of a worker entitlement fund has a meaning affected by section 329HE.
registered, in relation to a worker entitlement fund, has the meaning given by section 329KE.
registered charity means an entity that is registered under the Australian Charities and Not‑for‑profits Commission Act 2012 as the type of entity mentioned in column 1 of item 1 of the table in subsection 25‑5(5) of that Act.
Regulatory Powers Act means the Regulatory Powers (Standard Provisions) Act 2014.
single‑employer fund has the meaning given by section 329HD.
voting director of an operator means a director (within the meaning of paragraph (a) of the definition of director in section 9 of the Corporations Act 2001) of the operator who is entitled to vote at meetings of the operator’s directors.
worker entitlement has the meaning given by section 329HB.
worker entitlement fund has the meaning given by section 329HC.
worker entitlement fund rules means rules made under section 329NJ.
11 At the end of subsection 154B(2)
Add:
Note: Worker entitlement funds are regulated under Part 3C of Chapter 11.
12 Section 317
After:
Part 3B sets out the circumstances in which the Commissioner or the General Manager may disclose information obtained in the performance of functions or exercise of powers under this Act.
insert:
Part 3C provides for registration of worker entitlement funds.
13 After Part 3B of Chapter 11
Insert:
Part 3C—Registration of worker entitlement funds
Division 1—Preliminary
329HA Guide to this Part
Worker entitlement funds may be registered in accordance with this Part.
A fund that meets the requirements may become registered by application to the Commissioner. The requirements include the requirement that the operator of the fund be a constitutional corporation and not an organisation.
Once registered, there are conditions for registration that must continue to be met.
Penalties may apply for operating or contributing to unregistered worker entitlement funds.
Note: A fringe benefits tax exemption may be available in relation to contributions to a registered fund (see section 58PA of the Fringe Benefits Tax Assessment Act 1986).
329HB Worker entitlements
A worker entitlement is:
(a) a payment in respect of, or in lieu of, leave (however described); or
(b) an employment termination payment (within the meaning of the Income Tax Assessment Act 1997); or
(c) any other payment in relation to termination of employment; or
(d) any payment which a fair work instrument (within the meaning of the Fair Work Act) or a contract of employment provides for an employer to make in relation to an employee.
329HC Worker entitlement funds
(1) A worker entitlement fund is:
(a) a fund the purposes of which are or include paying worker entitlements to any or all of the following:
(i) the fund members;
(ii) death benefits dependants (within the meaning of the Income Tax Assessment Act 1997) of fund members;
(iii) legal personal representatives (within the meaning of the Income Tax Assessment Act 1997) of fund members; or
(b) a fund of a kind prescribed by the worker entitlement fund rules.
(2) The fund members of a fund are the persons in respect of whom amounts are paid to the fund in the form of:
(a) contributions; or
(b) transfers from other funds of amounts that relate to contributions for worker entitlements.
(3) Despite paragraph (1)(a), none of the following is a worker entitlement fund:
(a) a superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993;
(b) a registered charity;
(c) a discretionary mutual fund within the meaning of the Financial Sector (Collection of Data) Act 2001;
(d) a fund established by, and operating under, a law of the Commonwealth, a State or a Territory;
(e) a fund controlled by a fund member.
(4) Despite paragraph (1)(a), a single‑employer fund is not a worker entitlement fund at any time when there is not an election in effect for the fund under section 329HD.
329HD Single‑employer funds
(1) A fund is a single‑employer fund if:
(a) the purposes of the fund are or include paying worker entitlements to any persons mentioned in paragraph 329HC(1)(a); and
(b) the fund is controlled by a single employer; and
(c) all contributions to the fund are made in respect of employees of the employer.
(2) Without limiting paragraph (1)(b), a fund that is a trust is taken to be controlled by an employer if the employer is, or appoints, the trustee of the trust.
(3) The operator of a single‑employer fund may, by written notice given to the Commissioner, elect for the fund to be a worker entitlement fund.
(4) The election must:
(a) be made in the form, and manner, (if any) approved by the Commissioner; and
(b) be made together with an application for registration of the fund under section 329KA.
(5) The election is in effect during the period:
(a) starting on the day the Commissioner grants the application for registration of the fund; and
(b) ending on the day the fund is deregistered under Subdivision B of Division 5 or section 329NE.
(6) The operator of a single‑employer fund for which an election is in effect may, by written notice given to the Commissioner, revoke the election.
(7) The revocation of an election for a fund must:
(a) be made in the form, and manner, (if any) approved by the Commissioner; and
(b) specify a day for deregistration of the fund; and
(c) be accompanied by any information required by the Commissioner.
329HE Operator of worker entitlement fund
(1) The operator of a worker entitlement fund that is a trust means the trustee, or each trustee, of the fund.
Note: A worker entitlement fund with more than one operator cannot be registered (see condition 1 in section 329LA).
(2) A person is not the operator of a worker entitlement fund merely because the person:
(a) acts as an agent or employee of another person; or
(b) takes steps, in accordance with a constitution that complies with condition 6 in section 329LA, to wind up the fund or remedy a defect that led to the fund being deregistered.
(3) Subsection 344(2) does not apply in relation to conduct engaged in by a person on behalf of an operator if the operator establishes that the operator took reasonable precautions, and exercised due diligence, to avoid the conduct.
Note: Subsection 344(2) sets out circumstances in which a body corporate is taken to have engaged in conduct that was engaged in by a person on behalf of the body corporate.
(4) The following provisions do not apply in relation to a worker entitlement fund or the operator of a worker entitlement fund unless the operator of the fund is a constitutional corporation:
(a) the provisions of Subdivision A of Division 5 (consequences other than deregistration of non‑compliance with conditions);
(b) section 329NC (final reports after deregistration).
Division 2—Penalties in relation to unregistered worker entitlement funds
329JA Offence of operating an unregistered worker entitlement fund
A person commits an offence if:
(a) the person is an operator of a fund; and
(b) the fund is a worker entitlement fund; and
(c) the fund is not registered under this Part; and
(d) either of the following apply:
(i) the purposes of the fund are or include the payment, by or on behalf of one or more federal system employers, of worker entitlements to or in relation to one or more federal system employees;
(ii) the person is a constitutional corporation.
Penalty: 200 penalty units or imprisonment for 5 years, or both.
329JB Civil penalty for contributing to an unregistered worker entitlement fund
A person must not contribute to a worker entitlement fund if:
(a) the fund is not registered under this Part; and
(b) any of the following apply:
(i) the contribution is in relation to a worker entitlement payable by a federal system employer to or in relation to a federal system employee;
(ii) the person, or an operator of the fund, is a constitutional corporation;
(iii) the person, or an operator of the fund, is a resident of a Territory.
Civil penalty: 100 penalty units.
Division 3—Registration of worker entitlement funds
329KA Application for registration of worker entitlement fund
(1) A person may apply to the Commissioner for registration of a worker entitlement fund.
(2) The application must be:
(a) in writing; and
(b) made in the form, and manner, (if any) approved by the Commissioner; and
(c) accompanied by any information or documents required by the Commissioner.
Note: If the Commissioner receives a copy of the constitution of a fund, the Commissioner must give the Commissioner of Taxation a copy as soon as practicable (see section 329NH).
(3) The Commissioner must publish on the Commission’s website the following details of the application, as soon as practicable after the application is made:
(a) the name of the fund;
(b) the name of the operator or proposed operator of the fund;
(c) any other details the Commissioner considers appropriate.
(4) The Commissioner may, by written notice given to the applicant, request further information, or invite the applicant to make written submissions, in relation to the application. The notice must specify a deadline for the further information to be given or the submissions to be made.
(5) The Commissioner must decide the application as soon as practicable, and in any event no later than 40 days after:
(a) the day the application is made; or
(b) if the Commissioner gives the applicant a notice under subsection (4)—the deadline specified in the notice.
(6) After the application is decided, the Commissioner must remove from the website the details published under subsection (3).
Note: If the application is granted, details of the fund must instead be included on the register maintained under section 329KD. The register must be made available on the website.
329KB Registration of worker entitlement fund
(1) The Commissioner must grant an application for registration of a worker entitlement fund if:
(a) a person applies for registration of the fund in accordance with subsection 329KA(2); and
(b) the Commissioner is satisfied that:
(i) the fund is, or will be on registration, a worker entitlement fund; and
(ii) the initial conditions applicable to the fund will be, on registration, satisfied in relation to the fund and the operator of the fund.
(2) If the Commissioner grants the application, the Commissioner must:
(a) add the name of the fund to the register maintained under section 329KD as soon as practicable; and
(b) give the person notice in writing of the decision.
329KC Refusal of application for registration of worker entitlement fund
(1) If the Commissioner is not required under section 329KB to grant a person’s application for registration of a worker entitlement fund, the Commissioner must refuse the application.
(2) If the Commissioner refuses the application, the Commissioner must, no later than 14 days after the refusal, give the person a notice in writing setting out the decision and the reasons for it.
329KD Register of worker entitlement funds
(1) The Commissioner must maintain a register of worker entitlement funds in respect of which applications for registration are granted under section 329KB.
(2) The Commissioner must include on the register the following details of each fund:
(a) the name of the fund;
(b) the name of the operator of the fund;
(c) any other details the Commissioner considers appropriate.
(3) The Commissioner must make the register available on the Commission’s website.
(4) The Commissioner must correct or update a detail if the Commissioner becomes aware that the detail is incorrect or has changed.
Note: For example, if the Commissioner becomes aware that the operator of the fund has changed, the Commissioner must update the name of the operator on the register.
329KE When a worker entitlement fund is registered
A worker entitlement fund is registered under this Part if:
(a) the Commissioner has granted an application for registration of the fund; and
(b) since the application was granted the fund has not been deregistered under any provision of this Part (or if it has been, the registration has been reinstated under section 329ND).
Division 4—Conditions for registration of worker entitlement funds
329LA Conditions for registration of worker entitlement fund
The following table sets out the conditions for registration of a worker entitlement fund and has the following effect:
(a) a condition specified as initial is an initial condition;
(b) a condition specified as ongoing is an ongoing condition;
(c) all of the conditions are applicable to worker entitlement funds other than single‑employer funds;
(d) only a condition specified to be also applicable to single‑employer funds is applicable to a single‑employer fund.
| Conditions for registration of worker entitlement fund |
| Item | Condition | Kind of condition |
| 1 | The fund has one operator | (a) Initial; (b) ongoing; (c) also applicable to single‑employer funds |
| 2 | The operator of the fund is a constitutional corporation and is not an organisation | (a) Initial; (b) ongoing |
| 3 | The operator of the fund, and any other person likely to be involved in the operation of the fund, will conduct the fund’s affairs in accordance with the ongoing conditions applicable to the fund | (a) Initial; (b) also applicable to single‑employer funds |
| 4 | Under the constitution of the fund and in the way the fund is operated: (a) fund members are treated equally, or if there are different classes of fund members, equally with other fund members of the same class; and (b) the different classes (if any) of fund members are treated without discrimination by reference to membership of an organisation | (a) Ongoing; (b) also applicable to single‑employer funds |
| 5 | If there are different classes of fund members, the classes are not identified by reference to membership of an organisation | (a) Ongoing; (b) also applicable to single‑employer funds |
| 6 | The fund has a written constitution that complies with: (a) subsection 329LB(1); and (b) any other requirements prescribed by the worker entitlement fund rules | (a) Initial; (b) ongoing; (c) also applicable to single‑employer funds |
| 7 | The fund is administered in accordance with its constitution | (a) Ongoing; (b) also applicable to single‑employer funds |
| 8 | In accordance with section 329LE, the Commissioner has no reason to believe that any of the following persons are not of good fame or character: (a) an officer (within the meaning of the Corporations Act 2001) of the operator who performs duties in relation to the fund; (b) a staff member of the operator who performs duties in relation to the fund | (a) Initial; (b) ongoing |
| 9 | At least one of the voting directors of the operator of the fund is independent of, and has no material relationship with, the operator of the fund, other than his or her role as director | (a) Initial; (b) ongoing |
| 10 | At least one of the voting directors of the operator of the fund is independent of all of the following and has no material relationships with any of them: (a) any contributor to the fund; (b) any organisation which has a member who is a contributor to the fund; (c) any organisation which has a member who is a fund member; (d) any associate of a person mentioned in paragraph (a), (b) or (c); (e) any associate of the operator | (a) Initial; (b) ongoing |
| 11 | The fund (including its investments) is managed at arm’s length from: (a) the contributors to the fund and their associates; and (b) the fund members | (a) Initial; (b) ongoing |
| 12 | Arrangements are in place to ensure that subsections 329LC(2) and 329LD(3) (contributions and income retain their character) are given effect | Ongoing |
| 13 | The fund complies with any requirements prescribed by the worker entitlement fund rules in relation to capital adequacy, governance and liquidity | Ongoing |
| 14 | The operator gives the Commissioner audited annual reports for the fund for each financial year in accordance with section 329LF | Ongoing |
| 15 | The operator notifies the Commission in writing of any change in a detail included on the register under section 329KD | Ongoing |
| 16 | The operator gives the contributors to the fund the information prescribed by the worker entitlement fund rules: (a) at the time prescribed by the worker entitlement fund rules; or (b) at the intervals prescribed by the worker entitlement fund rules | Ongoing |
| 17 | As soon as practicable after the end of a financial year, the operator of the fund gives each fund member in respect of whom contributions to the fund were made in relation to that financial year a statement setting out: (a) the contributions made in respect of the fund member in relation to the financial year; and (b) the person who made the contributions. | Ongoing |
| 18 | The operator gives the Commissioner, the contributors and the fund members, information about: (a) any change to the constitution of the fund; and (b) any change to the operation of the fund affecting payments to fund members; as soon as practicable | Ongoing |
| 19 | Before a person becomes a fund member (or if this is impracticable, as soon as practicable after the person becomes a fund member), the operator gives the person a statement setting out: (a) the amount of any fees and administrative expenses charged by the operator in relation to the fund; and (b) eligibility of fund members to make a claim for a payment from the fund and how to make such a claim | Ongoing |
| 20 | The operator: (a) on request, gives a copy of the constitution of the fund to any contributor to the fund; and (b) gives a copy of the constitution to each person who the operator knows may become a fund member; and (c) ensures that each fund member has a copy of the constitution or has access to the constitution on the website of the fund (if any) | Ongoing |
| 21 | If income of the fund is used to make a training or welfare payment covered by subsection 329LD(2)—as soon as practicable after the payment is approved, the operator notifies each fund member of, or ensures that each fund member has access on the website of the fund (if any) to, the following information: (a) the person to whom the amount is to be paid; (b) details of the particular training or welfare services for which the amount is to be paid | Ongoing |
| 22 | The training requirements in section 329LG are met | Ongoing |
329LB Constitution of fund (condition 6)
(1) For the purposes of condition 6, the constitution of a fund complies with this section if, under the constitution:
(a) the operator of the fund must be a constitutional corporation and must not be an organisation; and
(b) no more than 5% of the fund’s assets may be invested in an entity (within the meaning of the Income Tax Assessment Act 1997) controlled by a contributor to the fund or an associate of a contributor; and
(c) the assets of the fund must not be used to provide or facilitate any form of financial assistance, including a loan or donation, to a contributor, a fund member, an associate of a contributor or an associate of a fund member; and
(d) contributions to the fund may only be used for purposes authorised by section 329LC; and
(e) income of the fund may only be used for purposes authorised by section 329LD; and
(f) contributions to the fund, or income of the fund, must not be used to make a payment to an employee that, if made by the employee’s employer, would contravene section 470 or 474 of the Fair Work Act (payments relating to periods of industrial action); and
(g) money that is, or under the constitution is to be treated as, unclaimed or forfeited (however described), must not be paid to an industrial association within the meaning of the Fair Work Act or a related party of an industrial association; and
(h) a separate account must be kept for each fund member, in a way that enables the fund member’s entitlements to be calculated.
(2) Paragraph (1)(g) does not limit paragraph (1)(d) or (e).
(3) For the purposes of paragraph (1)(g), section 9B (meaning of related party) applies to an industrial association that is not an organisation as if:
(a) references in that section to an organisation were references to an industrial association; and
(b) references to an officer of an organisation were references to a person who is an officer of an industrial association within the meaning of the Fair Work Act.
329LC Authorised uses of contributions
(1) For the purposes of paragraph 329LB(1)(d), contributions to the fund may only be used for the following purposes:
(a) to pay a kind of worker entitlement to:
(i) fund members in respect of whom amounts are paid to the fund, in a form mentioned in subsection 329HC(2), for that kind of worker entitlement; or
(ii) death benefits dependants (within the meaning of the Income Tax Assessment Act 1997) of those fund members; or
(iii) legal personal representatives (within the meaning of the Income Tax Assessment Act 1997) of those fund members;
(b) to make investments to generate income from the assets of the fund;
(c) to reimburse contributors to the fund who have paid entitlements directly to fund members in circumstances in which the contributor was legally required or permitted to do so;
(d) to return contributions to contributors to the fund;
(e) to pay, at market value, for insurance cover to make payments of worker entitlements to persons mentioned in paragraph (a);
(f) to transfer contributions to another worker entitlement fund registered under this Part;
(g) to pay the reasonable administrative expenses of the fund;
(h) to pay amounts, to the external administrator (within the meaning of the Payment Systems and Netting Act 1998) of a contributor to the fund, that would otherwise be payable to the contributor as mentioned in paragraph (c) or (d);
(i) to pay interest on, or to repay, money lent to the fund.
(2) For the purposes of this Part, an amount that is paid into a fund at a time as a contribution continues at all later times, while held by the fund, to have the character of a contribution.
329LD Authorised uses of income
(1) For the purposes of paragraph 329LB(1)(e), income of the fund may only be used for the following purposes:
(a) a purpose mentioned in subsection 329LC(1);
(b) to make payments other than worker entitlements to persons mentioned in paragraph 329LC(1)(a);
(c) to make payments to a contributor to the fund whose contributions are in respect of employees or former employees of the contributor;
(d) to make training or welfare payments covered by subsection (2).
(2) A payment is a training or welfare payment covered by this subsection if:
(a) the payment is made for the sole purpose of providing training or welfare services to either or both of the following:
(i) participants or former participants in any industry in which fund members participate;
(ii) spouses or dependants of such participants or former participants; and
(b) if the services are not provided by the operator of the fund:
(i) the services are provided at market value and on commercial terms; and
(ii) all arrangements for providing the services are negotiated at arm’s length from any director of the operator who has a material personal interest in the provider of the services; and
(c) the services are provided in a way that does not discriminate unfairly between fund members; and
(d) before it is made, the payment is approved by the voting directors of the operator; and
(e) the voting directors who approve the payment include:
(i) a voting director who is independent in the way described in condition 9; and
(ii) a voting director who is independent in the way described in condition 10.
(3) For the purposes of this Part, an amount that is earned, derived or received as income by a fund at a time while the fund is registered continues at all later times, while held by the fund, to have the character of income.
329LE Good fame or character (condition 8)
For the purposes of condition 8, in considering whether there is reason to believe at a time that a person is not of good fame or character, the Commissioner must have regard to the following:
(a) any conviction of the person, within the period of 10 years ending immediately before the time, for an offence that involves dishonesty and is punishable by imprisonment for at least 3 months;
(b) whether the person has at any time been:
(i) because of a conviction, ineligible to be a candidate for an election, or elected or appointed, to an office in an organisation; or
(ii) otherwise disqualified under this Act from holding office in an organisation;
(c) any other matters the Commissioner considers relevant.
Note: Under Part VIIC of the Crimes Act 1914 a person is relieved in certain circumstances from the requirement to disclose spent convictions and persons aware of such convictions must disregard them.
329LF Audited annual reports (condition 14)
(1) For the purposes of condition 14, the operator of a registered worker entitlement fund must give the Commissioner a written annual report for each financial year.
(2) The annual report for the fund must be:
(a) prepared for the financial year in accordance with any applicable Australian Accounting Standards; and
(b) given to the Commissioner within 3 months after the end of the financial year.
(3) The annual report must include the following:
(a) a statement of the profit or loss of the fund, net of tax and net of benefits paid to fund members, for the financial year;
(b) a statement of the financial position of the fund as at the end of the financial year, including all assets and liabilities (including liabilities for accrued benefits);
(c) a statement of the benefits, including the type of benefits, paid for the financial year to fund members;
(d) in relation to payments for insurance cover mentioned in paragraph 329LC(1)(e)—a statement of:
(i) the total amount paid for the financial year; and
(ii) the person to whom the amount was paid; and
(iii) the nature of the insurance cover; and
(iv) any commissions or benefits received or obtained by the operator of the fund or a related party of the operator (within the meaning of subsection (7)) in relation to the insurance cover for the year; and
(e) a statement of any management or administration fees paid for the financial year and the recipients;
(f) the number and total value of any benefits forfeited during the financial year;
(g) in relation to training or welfare payments covered by subsection 329LD(2)—a statement of:
(i) the total amount paid for the financial year; and
(ii) the amount of each individual payment made; and
(iii) the person or persons to whom the individual payments were made; and
(iv) the particular purposes for which the individual payments were made;
(h) any other matters prescribed by the worker entitlement fund rules.
(4) The annual report must be audited by a registered auditor or a registered company auditor and the auditor’s report of the audit must be attached to (and form part of) the annual report.
(5) The auditor’s report must set out the following matters:
(a) whether the auditor is of the opinion that the annual report is in accordance with the requirements of subsections (2) and (3) (and if not, the reasons why);
(b) whether the auditor is of the opinion that the auditor has been given all information, explanation and assistance necessary for the conduct of the audit (and if not, the reasons why);
(c) whether the auditor is of the opinion that the operator has kept financial records sufficient to enable an annual report for the fund to be prepared and audited in accordance with this Part (and if not, the reasons why);
(d) any other matters prescribed by the worker entitlement fund rules.
(6) The audit, and the auditor’s report, must be in accordance with any applicable Australian Auditing Standards.
(7) A person is a related party of the operator for the purposes of subparagraph (3)(d)(iv) if:
(a) the person would be a related party of the operator within the meaning of Chapter 2E of the Corporations Act 2001 if (for an operator that is not a public company) the operator were a public company; or
(b) the person is an officer or staff member of the operator.
329LG Training requirements (condition 22)
Training requirements
(1) For the purposes of condition 22, the training requirements are met if each officer and staff member of the operator of the fund, whose duties include duties that relate to the financial management of the fund, has, within the time required by subsection (2), undertaken training that:
(a) covers those duties; and
(b) is approved by the Commissioner under subsection (3).
(2) A person who is required to undertake training under subsection (1) must do so within 6 months after assuming duties that relate to the financial management of the fund.
Approval of training
(3) If the Commissioner is satisfied that training provided by:
(a) an organisation; or
(b) a peak council; or
(c) a body or person the Commissioner is satisfied has appropriate skills and expertise to provide the training;
covers any of the duties mentioned in subsection (1), the Commissioner may approve the training for the purposes of that subsection.
(4) If the approval is made in writing, the approval is not a legislative instrument.
Exemption from training requirements
(5) The operator may, in writing, apply to the Commissioner for a person to be exempted from the training requirements.
(6) The Commissioner may grant the exemption, subject to any conditions the Commissioner considers appropriate, if the Commissioner is satisfied that the person has a proper understanding of his or her duties relating to the financial management of the fund because of his or her:
(a) experience as a company director; or
(b) experience as an officer of a registered organisation; or
(c) other professional qualifications and experience.
(7) The training requirements in subsection (1) do not apply in relation to a person who is exempt under subsection (6).
Division 5—Consequences of non‑compliance with ongoing conditions for registration of worker entitlement fund
Subdivision A—Consequences of non‑compliance other than deregistration
329MA Direction to comply with ongoing condition
(1) The Commissioner may, for the purposes of ensuring that:
(a) an ongoing condition is being complied with in relation to a registered worker entitlement fund; or
(b) a report, notice, information or a statement given in accordance with condition 14, 15, 16, 17, 18 or 19 is not false or misleading in a material particular;
give the operator of the fund a written notice directing the operator to take, or stop taking, one or more actions specified in the notice.
(2) The Commissioner must not give a notice under subsection (1) unless the Commissioner is satisfied that doing so is in the best interests of the contributors to the fund or the fund members.
(3) The operator of a registered worker entitlement fund must comply with a notice given to the operator under subsection (1).
Civil penalty: 60 penalty units.
(4) Subsection (1) does not apply to a single‑employer fund.
329MB Infringement notices for civil penalties in relation to conditions 6, 7, 14, 15, 16, 17, 18, 19, 20 and 21
Provisions subject to an infringement notice
(1) The following provisions are subject to an infringement notice under Part 5 of the Regulatory Powers Act:
(a) section 329ME (civil penalty in relation to condition 6 and aspects of condition 7 (constitution));
(b) section 329MF (civil penalties in relation to conditions 14, 15, 16, 17, 18, 19, 20 and 21 (giving information etc.)).
Note 1: Part 5 of the Regulatory Powers Act creates a framework for using infringement notices in relation to provisions.
Note 2: An infringement notice cannot be given to the operator of a single‑employer fund because the civil penalties mentioned in paragraph (a) and (b) do not apply to those funds.
Infringement officer
(2) For the purposes of Part 5 of the Regulatory Powers Act, each of the following persons is an infringement officer in relation to the provisions mentioned in subsection (1):
(a) the Commissioner;
(b) a person authorised by the Commissioner under subsection (3).
(3) The Commissioner may, in writing, authorise any of the following persons for the purposes of paragraph (2)(b):
(a) a member of the staff mentioned in subsection 329CA(1);
(b) a person mentioned in section 329CB.
Relevant chief executive
(4) For the purposes of Part 5 of the Regulatory Powers Act, the Commissioner is the relevant chief executive in relation to the provisions mentioned in subsection (1).
(5) The Commissioner may, in writing, delegate to an infringement officer the powers and functions of the relevant chief executive under the following provisions:
(a) subsection 105(2) of the Regulatory Powers Act (power to extend period for payment);
(b) subsection 106(2) of the Regulatory Powers Act (power to withdraw infringement notice).
(6) A person exercising powers or performing functions under a delegation under subsection (5) must comply with any directions of the Commissioner.
329MC Civil penalty in relation to condition 4 (equal and non‑discriminatory treatment)
(1) The operator of a registered worker entitlement fund must not do an act or omit to do an act that has the result that condition 4 is contravened.
Civil penalty: 100 penalty units.
(2) Subsection (1) does not apply to a single‑employer fund.
329MD Civil penalty in relation to condition 5 (classes of membership)
(1) The operator of a registered worker entitlement fund must not do an act or omit to do an act that has the result that condition 5 is contravened.
Civil penalty: 100 penalty units.
(2) Subsection (1) does not apply to a single‑employer fund.
329ME Civil penalty in relation to condition 6 and aspects of condition 7 (constitution)
(1) The operator of a registered worker entitlement fund must not do an act or omit to do an act that has the result that any of the following is contravened:
(a) condition 6;
(b) a provision of the constitution of the fund referred to in subsection 329LB(1);
(c) a requirement prescribed by the worker entitlement fund rules for the purposes of paragraph (b) of condition 6 and specified in those rules to be a requirement to which this paragraph applies.
Civil penalty: 100 penalty units.
(2) Subsection (1) does not apply to a single‑employer fund.
329MF Civil penalties in relation to conditions 14, 15, 16, 17, 18, 19, 20 and 21 (giving information etc.)
(1) The operator of a registered worker entitlement fund must comply with conditions 14, 15, 16, 17, 18, 19, 20 and 21.
Note: These conditions do not apply to a single‑employer fund.
Civil penalty: 100 penalty units.
(2) The operator of a registered worker entitlement fund must ensure that a report, notice, information or statement given to a person (or to which a person is given access) for the purposes of condition 14, 15, 16, 17, 18, 19 or 21 is not false or misleading in a material particular.
Note: These conditions do not apply to a single‑employer fund.
Civil penalty: 100 penalty units.
Subdivision B—Deregistration for non‑compliance
329MG Notice of proposed deregistration for non‑compliance with ongoing condition
(1) If the Commissioner is satisfied that an ongoing condition applicable to a registered worker entitlement fund has not been, or is not being, complied with in relation to the fund, the Commissioner may:
(a) give written notice to the operator of the fund that the Commissioner proposes to deregister the fund on the grounds of non‑compliance with the condition or conditions specified in the notice; and
(b) publish a copy of the notice on the Commission’s website.
(2) The notice must:
(a) specify the grounds for deregistration; and
(b) if the grounds include non‑compliance with condition 1 or 2—state the effect of section 329MH; and
(c) specify the proposed day of deregistration (which must be at least 56 days after the day the notice is given); and
(d) invite the operator to make submissions on the proposed deregistration; and
(e) specify the deadline by which any such submissions must be made (which must be at least 28 days after the day the notice is given).
(3) In deciding whether to exercise the Commissioner’s power under subsection (1), the Commissioner must consider:
(a) the seriousness of the non‑compliance; and
(b) any previous non‑compliance with ongoing conditions in relation to the fund; and
(c) whether deregistration would be in the best interests of the fund members; and
(d) whether action under Subdivision A may be more appropriate in the circumstances.
(4) Subsection (3) does not limit the matters the Commissioner may consider in deciding whether to exercise the Commissioner’s power under subsection (1).
329MH Mandatory deregistration for non‑compliance with condition 1 or 2
(1) If:
(a) the Commissioner gives the operator of a fund a notice of proposed deregistration in accordance with section 329MG; and
(b) the grounds specified for deregistration include non‑compliance with condition 1 or 2; and
(c) after considering any submissions that were made by the specified deadline, the Commissioner continues to be satisfied that the condition has not been, or is not being, complied with;
the Commissioner must, by written notice given to the operator of the fund, deregister the fund under this section.
(2) Deregistration under this section takes effect from the day proposed for deregistration in the notice of proposed deregistration.
(3) If the fund is deregistered, the Commissioner must remove the details of the fund from the register maintained under section 329KD as soon as practicable.
329MI Deregistration for non‑compliance with other conditions
(1) If:
(a) the Commissioner gives the operator of a fund a notice of proposed deregistration in accordance with section 329MG; and
(b) the grounds specified for deregistration do not include non‑compliance with condition 1 or 2; and
(c) after considering any submissions that were made by the specified deadline, the Commissioner continues to be satisfied that a specified ongoing condition has not been, or is not being, complied with;
the Commissioner may, by written notice given to the operator of the fund, deregister the fund under this section.
(2) Deregistration under this section takes effect from the day specified in the notice, which may be either:
(a) the day proposed for deregistration in the notice of proposed deregistration; or
(b) a later day determined by the Commissioner.
(3) If the fund is deregistered, the Commissioner must remove the details of the fund from the register maintained under section 329KD as soon as practicable.
(4) In deciding whether to exercise the Commissioner’s power under subsection (1), the Commissioner must consider:
(a) the seriousness of the non‑compliance; and
(b) any previous non‑compliance with ongoing conditions in relation to the fund; and
(c) whether deregistration would be in the best interests of the fund members; and
(d) whether action under Subdivision A may be more appropriate in the circumstances.
(5) Subsection (4) does not limit the matters the Commissioner may consider in deciding whether to exercise the Commissioner’s power under subsection (1).
329MJ Decision not to deregister
If, after giving the operator of a registered worker entitlement fund a notice of proposed deregistration in accordance with section 329MG, the Commissioner decides not to deregister the fund, the Commissioner must, no later than 14 days after making the decision:
(a) give the operator of the fund a written notice setting out the decision and the reasons for it; and
(b) publish a copy of the decision on the Commission’s website.
329MK Natural justice
This Subdivision is taken to be an exhaustive statement of the requirements of the natural justice hearing rule in relation to the Commissioner’s decision to deregister a registered worker entitlement fund under this Subdivision.
Division 6—Other matters
329NA Deregistration of worker entitlement fund on request
(1) If:
(a) the operator of a registered worker entitlement fund other than a single‑employer fund applies to the Commissioner for deregistration of the fund, in the form (if any) approved by the Commissioner; and
(b) the Commissioner is satisfied that it is appropriate to deregister the fund;
the Commissioner may, by written notice given to the operator of the fund, deregister the fund.
(2) Deregistration under this section takes effect from the day specified in the notice.
(3) If the Commissioner decides not to deregister the fund, the Commissioner must, no later than 14 days after the decision, give the person a notice in writing setting out the decision and the reasons for it.
(4) If the fund is deregistered, the Commissioner must remove the details of the fund from the register maintained under section 329KD as soon as practicable.
329NB Deregistration because worker entitlement fund has ceased to exist
(1) If the Commissioner is satisfied that a registered worker entitlement fund has been wound up or has otherwise ceased to exist, the Commissioner may, by written notice:
(a) given to the last‑known operator of the fund; or
(b) if it is not practicable to comply with paragraph (a)—published on the Commission’s website;
deregister the fund.
(2) Deregistration under this section takes effect from the day specified in the notice.
(3) If the fund is deregistered, the Commissioner must remove the details of the fund from the register maintained under section 329KD as soon as practicable.
329NC Final reports after deregistration
(1) This section applies in relation to a person (the former operator) who was the operator of a worker entitlement fund immediately before the day (the deregistration day) on which the deregistration of the fund under any provision of this Part takes effect.
Final annual report (condition 14)
(2) The former operator must, no later than 90 days after the deregistration day, give the Commissioner a report in accordance with section 329LF, as if references in that section (and in any rules made for the purposes of that section) to a financial year were references to the period:
(a) beginning on the first day of the financial year in which the deregistration day occurs; and
(b) ending on the deregistration day.
Civil penalty: 100 penalty units.
Final information for contributors (condition 16)
(3) The former operator must, no later than 90 days after the deregistration day, give each contributor to the fund the information prescribed by the worker entitlement fund rules for the purposes of condition 16, as if that information were prescribed for the period:
(a) beginning immediately after the period for which the last such information was given to the contributors; and
(b) ending on the deregistration day.
Civil penalty: 100 penalty units.
Final information for fund members (condition 17)
(4) The former operator must, no later than 90 days after the deregistration day, give each fund member in respect of whom contributions to the fund were made for the period:
(a) beginning on the first day of the financial year in which the deregistration day occurs; and
(b) ending on the deregistration day;
a statement of the contributions made in respect of the person during that period.
Civil penalty: 100 penalty units.
No reports required if registration reinstated
(5) Subsections (2), (3) and (4) do not apply if the registration of the fund is reinstated under section 329ND before the end of the 90 day period mentioned in those subsections.
No reports required for single‑employer fund
(6) Subsections (2), (3) and (4) do not apply if the fund was a single‑employer fund immediately before it was deregistered.
329ND Reinstatement of registration of worker entitlement fund
(1) The Commissioner may, by written notice given to the operator of a previously registered worker entitlement fund, reinstate the registration of the fund with effect from the day specified in the notice (which may be before the day the notice is given) if the Commissioner is satisfied that:
(a) the fund should not have been deregistered; or
(b) the ongoing conditions for registration of a worker entitlement fund are now being complied with in relation to the fund.
(2) If the Commissioner reinstates the registration of a worker entitlement fund, the Commissioner must include the details of the fund on the register maintained under section 329KD again as soon as practicable.
329NE Automatic deregistration of single‑employer fund on revocation of election
(1) If the operator of a registered worker entitlement fund that is a single‑employer fund revokes the election for the fund under section 329HD, the fund is taken to be deregistered with effect from the day specified, in the revocation, for deregistration.
(2) The Commissioner must remove the details of the fund from the register maintained under section 329KD as soon as practicable.
329NF Information gathering
(1) This section applies if the Commissioner believes on reasonable grounds that a person has information or a document that is relevant to determining either or both of the following matters:
(a) whether an ongoing condition applicable to a registered worker entitlement fund has been or is being complied with in relation to the fund;
(b) whether section 329NC has been complied with in relation to a worker entitlement fund that has been deregistered under any provision of this Part.
(2) For the purposes of determining the matter, the Commissioner may, by written notice given to the person, require the person to do either or both of the following:
(a) give the Commissioner specified information or a specified kind of information;
(b) produce to the Commissioner specified documents or specified kinds of documents, or copies of them.
(3) The notice:
(a) must specify the time by which the person must comply with the notice (which must be at least 14 days after the day the notice is given); and
(b) may specify the manner and form for complying with the notice.
(4) A person who is given a notice under subsection (2) must comply with the notice.
Penalty: 30 penalty units.
(5) Subsection (4) does not apply to the extent that the person has a reasonable excuse.
Note: A defendant bears an evidential burden in relation to the matter in subsection (5) (see subsection 13.3(3) of the Criminal Code).
(6) It is a reasonable excuse for an individual to refuse or fail to answer a question or produce a document on the ground that to do so might tend to incriminate the individual or expose the individual to a penalty.
329NG Publication of annual reports
The Commissioner must publish on the Commission’s website annual reports given to the Commissioner in accordance with condition 14.
329NH Sharing information with Commissioner of Taxation
If the Commissioner receives:
(a) a copy of the constitution of a registered worker entitlement fund or a fund for which an application for registration under this Part has been made; or
(b) information about a change to the constitution of a registered worker entitlement fund;
the Commissioner must, as soon as practicable, give a copy to the Commissioner of Taxation.
329NI Review by Administrative Appeals Tribunal
Applications may be made to the Administrative Appeals Tribunal for review of a decision made by the Commissioner:
(a) under section 329KC, to refuse an application for registration of a worker entitlement fund; or
(b) under section 329MH, 329MI or 329NB, to deregister a worker entitlement fund; or
(c) under section 329NA, not to deregister a worker entitlement fund; or
(d) under section 329ND, to reinstate the registration of a worker entitlement fund.
Note: Other decisions made under this Part are not subject to review. See subsection 604(1) of the Fair Work Act.
329NJ Worker entitlement fund rules
(1) The Minister may, by legislative instrument, make rules prescribing matters:
(a) required or permitted to be prescribed by the worker entitlement fund rules; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Part.
(2) Without limiting subsection (1), the worker entitlement fund rules may require worker entitlement funds to be audited in accordance with the rules.
(3) Despite subsection 14(2) of the Legislation Act 2003, the worker entitlement fund rules may prescribe matters for the purposes of subsection (2) of this section by applying, adopting or incorporating, with or without modification, any matter contained in any of the following as in force at a particular time or as in force from time to time:
(a) an accounting standard formulated by the Australian Accounting Standards Board as mentioned in paragraph 227(1)(c) of the Australian Securities and Investments Commission Act 2001;
(b) an auditing and assurance standard formulated by the Auditing and Assurance Standards Board as mentioned in paragraph 227B(1)(b) of the Australian Securities and Investments Commission Act 2001.
Note: Accounting standards and auditing standards made under sections 334 and 336 of the Corporations Act 2001 are disallowable legislative instruments and so they may also be applied, adopted or incorporated as in force at a particular time or as in force from time to time. See subsection 14(1) of the Legislation Act 2003.
(4) To avoid doubt, the worker entitlement fund rules may not do the following:
(a) create an offence or civil penalty;
(b) provide powers of:
(i) arrest or detention; or
(ii) entry, search or seizure;
(c) impose a tax;
(d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;
(e) directly amend the text of this Act.
(5) Worker entitlement fund rules that are inconsistent with the regulations have no effect to the extent of the inconsistency, but the rules are taken to be consistent with the regulations to the extent they are capable of operating concurrently with the regulations.
14 At the end of subsection 330(1)
Add:
; (e) the ongoing conditions applicable to a registered worker entitlement fund (see section 329LA).
15 At the end of subsection 331(1)
Add:
; or (e) an ongoing condition applicable to a registered worker entitlement fund (see section 329LA) has been or is being complied with.
16 At the end of subsection 344(2)
Add:
Note: If the body corporate is an operator of a worker entitlement fund, see also subsection 329HE(3).
Fringe Benefits Tax Assessment Act 1986
17 Paragraph 58PA(a)
Repeal the paragraph, substitute:
(a) a person makes a contribution to:
(i) a fund that is registered under Part 3C of Chapter 11 of the Fair Work (Registered Organisations) Act 2009 (registered worker entitlement funds); or
(ii) a fund established by or under, and operating under, a law of the Commonwealth, a State or a Territory, for the purpose of ensuring that long service leave is paid; and
18 Section 58PB
Repeal the section.
19 Subsection 136(1) (definition of approved worker entitlement fund)
Repeal the definition.
Income Tax Assessment Act 1997
20 Paragraph 126‑130(2)(b)
Repeal the paragraph, substitute:
(b) the amendment or replacement is done for the purpose of having the fund registered under Part 3C of Chapter 11 of the Fair Work (Registered Organisations) Act 2009 (registered worker entitlement funds); and
Taxation Administration Act 1953
21 Subsection 355‑65(8) in Schedule 1 (after table item 5)
Insert:
| 5AA | The Registered Organisations Commissioner (within the meaning of the Fair Work (Registered Organisations) Act 2009) (the RO Commissioner) | is for the purpose of performing any of the RO Commissioner’s functions, or exercising any of the RO Commissioner’s powers, under the Fair Work (Registered Organisations) Act 2009. |
22 Paragraph 426‑5(ba) in Schedule 1
Repeal the paragraph.
23 Subsection 426‑55(1) in Schedule 1 (paragraph (b) of the note)
Omit “58PB(4) and (4A),”.
24 Paragraphs 426‑65(1)(ba) and (bb) in Schedule 1
Repeal the paragraphs.
Part 2—Application and transitional amendments
Fair Work Act 2009
25 In the appropriate position in Schedule 1
Insert:
Part 7—Amendments made by the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017
Division 1—Amendments made by Schedule 2
31 Definitions
In this Part:
commencement means the time Parts 1 to 3 of Schedule 2 to the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017 commence.
RO Commissioner means the Commissioner within the meaning of the Registered Organisations Act.
transitioning approved fund means a worker entitlement fund:
(a) that is covered by subclause 33(1) or (2); and
(b) for which the transition period has not ended under clause 34.
transitioning non‑approved fund has the meaning given by clause 38.
32 Application of amendments
(1) The amendments of this Act made by Part 1 of Schedule 2 to the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017 apply in relation to the following:
(a) a modern award made or varied after commencement;
(b) an enterprise agreement or a contract of employment made after commencement.
(2) However, those amendments do not apply in relation to:
(a) a transitioning approved fund; or
(b) a transitioning non‑approved fund.
33 Funds that have a transition period
Endorsed funds
(1) A worker entitlement fund is covered by this subclause if, immediately before commencement, the fund was an approved worker entitlement fund within the meaning of subsection 58PB(2) of the Fringe Benefits Tax Assessment Act 1986.
Note: The RO Commissioner must include the details of these funds on the register maintained under section 329KD of the Fair Work (Registered Organisations) Act 2009 (see item 27 of Schedule 2 to the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017).
Funds that have applied for endorsement
(2) A worker entitlement fund is covered by this subclause if:
(a) before the day the Bill for the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017 was introduced into the Parliament:
(i) the fund applied for endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 as an approved worker entitlement fund; or
(ii) an entity applied for endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 for the operation of the fund as an approved worker entitlement fund; and
(b) the Commissioner of Taxation did not respond to the application before commencement by refusing to endorse the fund or entity.
Note: The RO Commissioner must include the details of these funds on the register maintained under section 329KD of the Fair Work (Registered Organisations) Act 2009 (see item 27 of Schedule 2 to the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017).
34 End of transition period for certain funds
The transition period for a worker entitlement fund covered by subclause 33(1) or (2) ends:
(a) at the later of the end of the period of 6 months starting on commencement and 1 July 2018; or
(b) if any of the following events happens before then—when the event happens:
(i) the RO Commissioner grants an application for registration of the fund under section 329KB of the Registered Organisations Act;
(ii) the Commissioner of Taxation refuses to endorse the fund, or entity that operates the fund, in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 as it continues to apply in relation to the fund or entity under item 30 of Schedule 2 to the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017;
(iii) the Commissioner of Taxation revokes the endorsement of the fund, or entity that operates the fund, in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 as it continues to apply in relation to the fund or entity under item 30 of Schedule 2 to the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017.
35 Disclosure of information for purposes of transition periods
Section 355‑25 in Schedule 1 to the Taxation Administration Act 1953 does not apply in relation to a disclosure of information by a taxation officer (within the meaning of section 355‑30 in Schedule 1 to that Act) to the RO Commissioner if the information is notice of a decision of the Commissioner of Taxation referred to in subparagraph 34(1)(b)(ii) or (iii) of this Part.
36 References in industrial instruments to approved worker entitlement funds
For the purposes of the operation of an industrial instrument (within the meaning of the Fringe Benefits Tax Assessment Act 1986) after commencement, a reference (however expressed) in the instrument to an approved worker entitlement fund within the meaning of the Fringe Benefits Tax Assessment Act 1986 is taken to include a reference to a worker entitlement fund registered under Part 3C of Chapter 11 of the Fair Work (Registered Organisations) Act 2009.
37 Application of section 604 to certain decisions made under Part 3 of Schedule 2
Section 604 (appeal of decisions) does not apply in relation to a decision made under Part 3 of Schedule 2 to the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017.
38 Transitioning non‑approved funds
(1) A worker entitlement fund is a transitioning non‑approved fund if:
(a) the fund was in existence before commencement; and
(b) on commencement, the fund is not covered by subclause 33(1) or (2); and
(c) neither of the following has ever applied in relation to the fund:
(i) the fund applied for endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 as an approved worker entitlement fund;
(ii) an entity applied for endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 for the operation of the fund as an approved worker entitlement fund.
(2) A fund ceases to be a transitioning non‑approved fund:
(a) at the end of the period of 6 months beginning on commencement; or
(b) if the RO Commissioner grants an application for registration of the fund under section 329KB of the Registered Organisations Act before the end of that period—when the RO Commissioner does so.
Part 3—Application and transitional provisions
26 Definitions
In this Part:
commencement means the time this Part commences.
RO Act means the Fair Work (Registered Organisations) Act 2009.
RO Commissioner means the Commissioner within the meaning of the RO Act.
transitioning approved fund means a worker entitlement fund:
(a) that is covered by subclause 33(1) or (2) of Schedule 1 to the Fair Work Act 2009; and
(b) for which the transition period has not ended under clause 34 of that Schedule.
transitioning non‑approved fund has the meaning given by clause 38 of Schedule 1 to the Fair Work Act 2009.
27 Inclusion of transitioning approved funds on register of worker entitlement funds
(1) If, immediately after commencement, a worker entitlement fund is a transitioning approved fund, the RO Commissioner must, as soon as practicable, include the following details of the fund on the register maintained under section 329KD of the RO Act:
(a) the name of the fund;
(b) which of subclauses 33(1) and (2) of Schedule 1 to the Fair Work Act 2009 the fund is covered by;
(c) if another entity is the operator of the fund—the name of the operator of the fund.
(2) The RO Commissioner must remove the details of the fund from the register as soon as practicable after the transition period for the fund ends in accordance with clause 34 of Schedule 1 to the Fair Work Act 2009.
(3) To avoid doubt, a fund whose name is on the register because of subitem (1) is not registered for the purposes of Part 3C of Chapter 11 of the RO Act.
28 Application of certain amendments of the Fair Work (Registered Organisations) Act 2009
Definition of worker entitlements
(1) The definition of worker entitlement in section 329HB of the RO Act, as inserted by this Schedule, applies in relation to a payment whether made before or after commencement.
Contributions and transfers
(2) For the purposes of subsection 329HC(2) and subparagraph 329LC(1)(a)(i), a reference to amounts paid in the form of contributions or transfers from other funds includes a reference to amounts paid in such a form whether before or after commencement.
Penalties in relation to unregistered worker entitlement funds
(3) Sections 329JA and 329JB of the RO Act, as inserted by this Schedule, do not apply in relation to:
(a) a transitioning approved fund; or
(b) a transitioning non‑approved fund.
Training requirements
(4) The condition in item 22 of the table in section 329LA of the RO Act (training requirements), as inserted by this Schedule, does not apply in relation to a fund or a person whose duties relate to the financial management of the fund, until the day after the end of the period of 6 months starting on the day this item commences.
(5) If a person is, on the day the condition starts to apply in accordance with subitem (4), a person who is required to undertake training under subsection 329LG(1) of the RO Act, the person must do so within 6 months after the day the condition starts to apply.
29 Application of amendments of section 58PA of the Fringe Benefits Tax Assessment Act 1986
(1) The amendments of section 58PA of the Fringe Benefits Tax Assessment Act 1986 made by this Schedule apply in relation to a contribution made after commencement.
(2) For the purposes of that section as amended by this Schedule, the reference in paragraph 58PA(a) to a fund that is registered under Part 3C of Chapter 11 of the RO Act is taken to include a reference to a transitioning approved fund.
30 Application of other amendments of tax‑related legislation
(1) The following amendments made by this Schedule do not apply in relation to a transitioning approved fund:
(a) the amendments of the Fringe Benefits Tax Assessment Act 1986 other than of section 58PA;
(b) the amendments of Division 426 in Schedule 1 to the Taxation Administration Act 1953.
(2) Section 126‑130 of the Income Tax Assessment Act 1997 as amended by this Schedule applies from commencement in relation to any fund (including a fund referred to in subitem (3)).
(3) That section also has the effect it would have had, if it had not been amended by this Schedule, in relation to a transitioning approved fund.
(4) The amendment made by this Schedule of section 355‑65 in Schedule 1 to the Taxation Administration Act 1953 applies in relation to disclosures of information after commencement, whether the information was acquired before or after commencement.
31 Modification of conditions for certain funds
(1) The Commissioner may, by legislative instrument, modify a provision of Division 4 of Part 3C of Chapter 11 of the RO Act (conditions for registration of worker entitlement funds) for a fund specified in the instrument, if the fund:
(a) is covered by subclause 33(1) or (2) of Schedule 1 to the Fair Work Act 2009; or
(b) is, or was, a transitioning non‑approved fund.
Note: The Commissioner may vary or revoke modifications (see subsection 33(3) of the Acts Interpretation Act 1901).
(2) If the Commissioner modifies a provision for a fund, Part 3C of Chapter 11 of the RO Act applies in relation to the fund as if the provision were modified in that way.
(3) A modification ceases to have effect at the earlier of:
(a) the day after the end of the period of 2 years beginning on:
(i) if paragraph (1)(a) applies to the fund—the day the transition period for the fund ends in accordance with clause 34 of Schedule 1 to the Fair Work Act 2009; or
(ii) if paragraph (1)(b) applies to the fund—the day the fund ceases to be a transitioning non‑approved fund; and
(b) the time specified by the Commissioner in the instrument of modification.
(4) A legislative instrument made for the purposes of subitem (1) may prescribe matters of a transitional nature (including prescribing any saving or application provisions) relating to the modifications made by the instrument.
(5) In this item:
modify a provision means modify the operation of the provision without amending its text.
Part 4—Pre‑commencement applications for registration
32 Pre‑commencement applications for registration
(1) During the pre‑commencement period, a person may apply to the Commissioner for registration of a worker entitlement fund, as if new section 329KA had already commenced.
(2) The following provisions apply during the pre‑commencement period in relation to such an application, as if they had already commenced:
(a) new section 329HB and subitems 28(1) and (2) of this Schedule;
(b) new sections 329HC and 329HE;
(c) new section 329KA;
(d) new section 329KB;
(e) new section 329KC;
(f) new section 329NH;
(g) new section 329NI.
(3) For the purposes of applying new subparagraph 329KB(1)(b)(ii) in relation to an application made during the pre‑commencement period, new Division 4 of Part 3C of Chapter 11 applies as if it had already commenced.
(4) Despite new paragraph 329KB(2)(a), the Commissioner is not required to add the name of a fund to the register to be maintained under new section 329KD until after the main commencement time.
(5) New section 329KE applies in relation to an application granted during the pre‑commencement period as if the application were granted at the main commencement time.
(6) In this item:
main commencement time means the time Part 1 of this Schedule commences.
new: a reference to a new provision is a reference to a provision of the Fair Work (Registered Organisations) Act 2009 to be inserted by Part 1 of this Schedule at the main commencement time.
pre‑commencement period means the period beginning on the day this item commences and ending immediately before the main commencement time.
Part 5—Contingent amendments
Fair Work (Registered Organisations) Act 2009
33 Paragraph 329LE(b)
Repeal the paragraph, substitute:
(b) whether the person has at any time been disqualified from holding office in an organisation;
34 Subsection 343B(2A)
Repeal the subsection, substitute:
(2A) Despite subsection (1), the Commissioner’s functions or powers under the following provisions can only be delegated to a member of the staff assisting the Commissioner who is an SES employee or an acting SES employee:
(a) Subdivision A of Division 4 of Part 3 of Chapter 8 (registration of auditors);
(b) section 329LG (training requirements in relation to registered worker entitlement funds).
Note: This item does not commence if item 12 of Schedule 5 to the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Act 2017 commences before Parts 1 to 3 of this Schedule.
35 At the end of subsection 343B(2A)
Add:
; (c) section 329LG (training requirements in relation to registered worker entitlement funds).
Schedule 3—Election payments
Fair Work Act 2009
1 Section 12
Insert:
regulated election purpose: a payment is made for a regulated election purpose if the payment is made for a purpose that includes the purpose of funding, supporting or promoting the election of a candidate or group of candidates for an election or elections to an office in an industrial association (including the election of a person or group of persons in a future election or elections).
2 At the end of section 194
Add:
; or (l) a term that has the effect of requiring or permitting a payment to be made for a regulated election purpose.
3 Subsection 324(1) (note 2)
Omit “and 333B”, substitute “, 333B and 333C”.
4 Paragraph 327(b)
After “333B”, insert “or 333C”.
5 At the end of Division 4 of Part 2‑9
Add:
333C Certain terms relating to election payments have no effect
A term of a contract of employment between an employer and an employee has no effect to the extent that the term would require or permit a payment to be made (whether by deduction or by any other means) for a regulated election purpose.
6 At the end of Part 7 of Schedule 1
Add:
Division 2—Amendments made by Schedule 3
39 Amendments made by Schedule 3
The amendments of this Act made by Schedule 3 to the Fair Work Laws Amendment (Proper Use of Worker Benefits) Act 2017 apply in relation to an enterprise agreement or a contract of employment made after commencement.
Schedule 4—Prohibiting coerced payments to employee benefit funds
Fair Work Act 2009
1 After section 355
Insert:
355A Coercion—payments to employee benefit funds
(1) A person must not organise or take, or threaten to organise or take, any action against another person with intent to coerce the other person, or a third person, to pay an amount to a fund covered by subsection (3).
Note: This subsection is a civil remedy provision (see Part 4‑1).
(2) Subsection (1) does not apply to protected industrial action.
(3) The following funds are covered by this subsection:
(a) a superannuation fund;
(b) a fund the purposes of which are or include paying for or providing training to members of one or more organisations or to employees generally;
(c) a fund the purposes of which are or include paying for or providing welfare services to members of one or more organisations or to employees generally;
(d) a fund the purposes of which are or include paying for or providing life insurance cover or disability insurance cover to members of one or more organisations or to employees generally;
(f) a fund for a managed investment scheme (within the meaning of the Corporations Act 2001), if:
(i) the scheme is promoted or arranged by an organisation or a related party (within the meaning of the Registered Organisations Act) of an organisation; and
(ii) the scheme is for the purposes of, or for purposes that include, managing financial risk; and
(iii) employees of a national system employer benefit or may benefit from the scheme if specified events occur in relation to the employees; and
(iv) the national system employer is a member of, or makes payments in relation to, the scheme.
2 After paragraph 355A(3)(d)
Insert:
(e) a worker entitlement fund;
3 Subsection 539(2) (after table item 11)
Insert:
| 11A | 355A(1) | (a) a person affected by the contravention; (b) an industrial association; (c) an inspector; (d) the Registered Organisations Commissioner | (a) the Federal Court; (b) the Federal Circuit Court | 60 penalty units |
Schedule 5—Disclosable arrangements
Fair Work (Registered Organisations) Act 2009
1 Section 6
Insert:
disclosable arrangement has the meaning given by section 329PE.
disclosable arrangements rules means rules made under subsection 329PF(1).
insurance broker means a person who carries on the business of arranging contracts of insurance, whether in Australia or elsewhere, as agent for intending insureds.
insurance intermediary means a person who:
(a) for reward; and
(b) as an agent for one or more insurers or as an agent for intending insureds;
arranges contracts of insurance in Australia or elsewhere, and includes an insurance broker.
insurer means a person who carries on an insurance business.
linked has the meaning given by section 329PD.
2 Section 317
Before:
Part 4 provides for the Commissioner to make inquiries as to compliance with financial accountability requirements and civil penalty provisions. The Commissioner may also conduct investigations.
insert:
Part 3D requires the disclosure of financial benefits that can reasonably be expected to be received in relation to certain kinds of arrangements. Disclosures must be made:
(a) by an organisation, to a federal system employer with whom an arrangement is entered into; and
(b) by a federal system employer, to the employees covered by the arrangement.
3 Before Part 4 of Chapter 11
Insert:
Part 3D—Disclosable arrangements
Division 1—Preliminary
329PA Simplified outline of this Part
Financial benefits that can reasonably be expected to be received (directly or indirectly) in connection with a disclosable arrangement must be disclosed. Disclosure must be made:
(a) by an organisation, to a federal system employer with whom an arrangement is entered into, about financial benefits for the organisation or a person linked to the organisation; and
(b) by a federal system employer, to the employees covered by the arrangement, about financial benefits for the employer or a person linked to the employer.
A federal system employer must pass on to employees disclosures made by an organisation to the employer.
Organisations and federal system employers must give copies of their disclosures to the Commissioner, who must publish them on the Commission’s website.
329PB Application of this Part to branches
In this Part, a reference to an organisation includes a reference to a branch of an organisation.
329PC Financial benefits
This Part does not apply in relation to a financial benefit prescribed by the disclosable arrangements rules for the purposes of this section.
329PD Person linked to an organisation or federal system employer
(1) A person is linked to an organisation if the person is a related party of the organisation.
(2) A person is linked to a federal system employer if the person is an associated entity of the employer (within the meaning of section 50AAA of the Corporations Act 2001).
329PE Disclosable arrangements
(1) A disclosable arrangement is an arrangement to which another subsection of this section applies.
(2) This subsection applies to an arrangement (whether or not in writing, and whether formal or informal), between an organisation or a person linked to an organisation, and a federal system employer, for:
(a) insurance promoted or arranged by the organisation or a person linked to the organisation to be offered or provided to employees of the employer; or
(b) the organisation or a person linked to the organisation to refer the employer to an insurer or insurance intermediary for the purposes of employees of the employer being offered or provided insurance.
(3) This subsection applies to an arrangement (whether or not in writing, and whether formal or informal) for a federal system employer to become a member of, or make payments in relation to, a managed investment scheme (within the meaning of the Corporations Act 2001):
(a) that is promoted or arranged by an organisation or a person linked to an organisation; and
(b) that is for the purposes of, or for purposes that include, managing financial risk; and
(c) from which employees of the employer benefit or may benefit if specified events occur in relation to the employees.
(4) This subsection applies to an arrangement (whether or not in writing, and whether formal or informal) between an organisation or a person linked to an organisation, and a federal system employer, if all of the following apply:
(a) the arrangement is for the employer to become a member of, or make payments to:
(i) a fund the purposes of which are or include paying for or providing training to members of one or more organisations or to employees generally; or
(ii) a fund the purposes of which are or include paying for or providing welfare services to members of one or more organisations or to employees generally;
(b) the arrangement or fund is promoted or arranged by the organisation or a person linked to the organisation;
(c) employees of the employer benefit or may benefit from the arrangement or fund.
(5) This subsection applies to an arrangement (whether or not in writing, and whether formal or informal) between an organisation or a person linked to an organisation, and a federal system employer, if the arrangement is prescribed by the disclosable arrangements rules.
329PF Disclosable arrangements rules
(1) The Minister may, by legislative instrument, make rules prescribing matters:
(a) required or permitted to be prescribed by the disclosable arrangements rules; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Part.
(2) To avoid doubt, the disclosable arrangements rules may not do the following:
(a) create an offence or civil penalty;
(b) provide powers of:
(i) arrest or detention; or
(ii) entry, search or seizure;
(c) impose a tax;
(d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;
(e) directly amend the text of this Act.
(3) Disclosable arrangements rules that are inconsistent with the regulations have no effect to the extent of the inconsistency, but disclosable arrangements rules are taken to be consistent with the regulations to the extent they are capable of operating concurrently with the regulations.
Division 2—Disclosure by organisations to employers
329QA Disclosure by organisations to employer
Disclosure before entering into arrangement
(1) If:
(a) an organisation or a person linked to an organisation proposes to enter into a disclosable arrangement with a federal system employer; and
(b) the organisation or a person linked to the organisation will, or can reasonably be expected to, receive or obtain (directly or indirectly) a financial benefit in connection with the arrangement;
the organisation must, before the arrangement is entered into, give the employer a document in accordance with subsection (3).
Civil penalty: 60 penalty units.
Disclosure after entering into arrangement
(2) If:
(a) a disclosable arrangement is in effect between an organisation or a person linked to an organisation, and a federal system employer; and
(b) paragraph (1)(b) did not apply before the arrangement was entered into; and
(c) as a result of a change proposed to the arrangement, the organisation or a person linked to the organisation will, or can reasonably be expected to, receive or obtain (directly or indirectly) a financial benefit in connection with the arrangement;
the organisation must, before the change takes effect, give the employer a document in accordance with subsection (3).
Civil penalty: 60 penalty units.
Disclosure document
(3) The document must:
(a) describe the connection between the arrangement and the financial benefits that will or can reasonably be expected to be received or obtained in connection with the arrangement by the organisation or persons linked to the organisation (the expected recipients); and
(b) describe the nature and (as far as reasonably practicable) amount of those financial benefits in relation to each expected recipient; and
(c) name each expected recipient; and
(d) be in accordance with any other requirements prescribed by the disclosable arrangements rules for the purposes of this paragraph; and
(e) be given in a manner (if any) prescribed by the disclosable arrangements rules.
Note 1: This Part does not apply to financial benefits prescribed by the disclosable arrangements rules for the purposes of section 329PC.
Note 2: An employer who is given a document under this section must make it available to employees (see section 329RA).
Organisation taken to receive financial benefit if consideration provided by fund for officer’s services
(4) If:
(a) an organisation or a person linked to an organisation is a party to a disclosable arrangement mentioned in subsection 329PE(3) or (4); and
(b) the organisation or an officer of the organisation will, or can reasonably be expected to, receive from the managed investment scheme or fund to which the arrangement relates consideration for services provided by an officer of the organisation;
the consideration is taken, for the purposes of this Part, to be a financial benefit that the organisation will, or can reasonably be expected to, receive in connection with the arrangement.
(5) Subsection (4) does not limit the circumstances in which an organisation will, or can reasonably be expected to, receive or obtain a financial benefit in connection with a disclosable arrangement.
329QB Keeping organisation’s disclosures up to date
(1) If:
(a) an organisation has given an employer a document under section 329QA or this section in relation to a disclosable arrangement; and
(b) either or both of the following apply:
(i) as a result of a change proposed to the arrangement, the organisation or a person linked to the organisation will, or can reasonably be expected to, receive or obtain (directly or indirectly) a financial benefit in connection with the arrangement;
(ii) the organisation becomes aware that the document is, or knows that the document will become, inaccurate or misleading in a material particular;
the organisation must, as soon as practicable, give the employer a document in accordance with subsection (2).
Civil penalty: 60 penalty units.
(2) The document under subsection (1) must:
(a) if subparagraph (1)(b)(i) applies—include, in relation to the financial benefit, the information mentioned in paragraphs 329QA(3)(a), (b) and (c); and
(b) if subparagraph (1)(b)(ii) applies—identify and correct the inaccuracy or misleading impression; and
(c) be in writing; and
(d) include any details prescribed by the disclosable arrangements rules; and
(e) be in accordance with any other requirements prescribed by the disclosable arrangements rules.
Note: An employer who is given a document under this section must make it available to employees (see section 329RA).
329QC Civil penalty for false or misleading disclosures
A person must not make a statement for inclusion in a document under section 329QA or 329QB if the person knows, or is reckless as to whether, the statement is false or misleading.
Civil penalty: 60 penalty units.
329QD Alternative disclosure under section 179 of the Fair Work Act
(1) An organisation is taken to have complied with section 329QA or 329QB, in relation to a financial benefit that the organisation or a person linked to the organisation will or can reasonably be expected to receive or obtain (directly or indirectly) in connection with a disclosable arrangement, if:
(a) the organisation gives the employer a document under section 179 of the Fair Work Act that meets the requirements of section 329QA or 329QB of this Act in relation to the arrangement (other than any requirements in relation to manner and form); and
(b) the organisation gives the document to the employer by the time required under section 329QA or 329QB.
(2) An organisation must comply with subsections 329QB(1) (keeping disclosures up to date) and 329SA(2) (giving copies to Commissioner) as if the document were a document given under section 329QA.
Division 3—Disclosure by employers to employees
329RA Employer must notify employees of organisation’s disclosure
A federal system employer to whom a document is given under section 329QA or 329QB in relation to a disclosable arrangement must take all reasonable steps to ensure that the employees of the employer who are or will be covered by the arrangement are given a copy of, or access to a copy of, the document as soon as practicable.
Civil penalty: 60 penalty units.
329RB Disclosure by employers before entering into disclosable arrangements
Disclosure before entering into arrangement
(1) If:
(a) a federal system employer proposes to enter into a disclosable arrangement with an organisation or a person linked to an organisation; and
(b) the employer or a person linked to the employer will, or can reasonably be expected to, receive or obtain (directly or indirectly) a financial benefit in connection with the arrangement other than a financial benefit exempt under subsection (4);
the employer must, before the arrangement is entered into, give the employees of the employer who will be covered by the arrangement a document in accordance with subsection (3).
Civil penalty: 60 penalty units.
Disclosure after entering into arrangement
(2) If:
(a) a disclosable arrangement is in effect between a federal system employer and an organisation or a person linked to an organisation; and
(b) paragraph (1)(b) did not apply before the arrangement was entered into; and
(c) as a result of a change proposed to the arrangement, the employer or a person linked to the employer will, or can reasonably be expected to, receive or obtain (directly or indirectly) a financial benefit in connection with the arrangement other than a financial benefit exempt under subsection (4);
the employer must, before the change takes effect, give the employees of the employer who will be covered by the arrangement a document in accordance with subsection (3).
Civil penalty: 60 penalty units.
Disclosure document
(3) The document must:
(a) describe the connection between the arrangement and the financial benefits (other than those exempt under subsection (4)) that will or can reasonably be expected to be received or obtained in connection with the arrangement by the employer or persons linked to the employer (the expected recipients); and
(b) describe the nature and (as far as reasonably practicable) amount of those financial benefits in relation to each expected recipient; and
(c) name each expected recipient; and
(d) be in accordance with any other requirements prescribed by the disclosable arrangements rules for the purposes of this paragraph; and
(e) be given in a manner (if any) prescribed by the disclosable arrangements rules.
Note: This Part does not apply to financial benefits prescribed by the disclosable arrangements rules for the purposes of section 329PC.
Financial benefit exempt from disclosure
(4) A financial benefit in relation to a disclosable arrangement is exempt under this subsection if the benefit is:
(a) received or obtained in the ordinary course of the expected recipient’s business; or
(b) a financial benefit provided directly to the employer’s employees.
Employer taken to receive financial benefit if consideration provided by fund for officer’s services
(5) If:
(a) a federal system employer is a party to a disclosable arrangement mentioned in subsection 329PE(3) or (4); and
(b) the employer or an officer (within the meaning of the Corporations Act 2001) of the employer will, or can reasonably be expected to, receive from the managed investment scheme or fund to which the arrangement relates consideration for services provided by an officer of the employer;
the consideration is taken, for the purposes of this Part, to be a financial benefit that the employer will, or can reasonably be expected to, receive in connection with the arrangement.
(6) Subsection (5) does not limit the circumstances in which a federal system employer will, or can reasonably be expected to, receive or obtain a financial benefit in connection with a disclosable arrangement.
329RC Keeping employer’s disclosures up to date
(1) If:
(a) a federal system employer has given employees a document under section 329RB or this section in relation to a disclosable arrangement; and
(b) either or both of the following apply:
(i) as a result of a change proposed to the arrangement, the employer or a person linked to the employer will, or can reasonably be expected to, receive or obtain (directly or indirectly) a financial benefit in connection with the arrangement other than a financial benefit exempt under subsection 329RB(4);
(ii) the employer becomes aware that the document is, or knows that the document will become, inaccurate or misleading in a material particular;
the employer must, as soon as practicable, give the employees of the employer who are covered by the arrangement a document in accordance with subsection (2).
Civil penalty: 60 penalty units.
(2) The document under subsection (1) must:
(a) if subparagraph (1)(b)(i) applies—include, in relation to the financial benefit, the information mentioned in paragraphs 329RB(3)(a), (b) and (c); and
(b) if subparagraph (1)(b)(ii) applies—identify and correct the inaccuracy or misleading impression; and
(c) be in writing; and
(d) include any details prescribed by the disclosable arrangements rules; and
(e) be in accordance with any other requirements prescribed by the disclosable arrangements rules.
329RD Civil penalty for false or misleading disclosures
A person must not make a statement for inclusion in a document under section 329RB or 329RC if the person knows, or is reckless as to whether, the statement is false or misleading.
Civil penalty: 60 penalty units.
329RE Alternative disclosure under section 179A of the Fair Work Act
(1) An employer is taken to have complied with section 329RB or 329RC, in relation to a financial benefit that the employer or a person linked to the employer will or can reasonably be expected to receive or obtain (directly or indirectly) in connection with a disclosable arrangement, if:
(a) the employer gives the employees a copy of, or access to a copy of, a document under subsection 180(4B) of the Fair Work Act that meets the requirements of section 329RB or 329RC of this Act in relation to the arrangement (other than any requirements in relation to manner and form); and
(b) the employer gives the document to the employees by the time required under section 329RB or 329RC.
(2) An employer must comply with subsections 329RC(1) (keeping disclosures up to date) and 329SA(2) (giving copies to Commissioner) as if the document were a document given under section 329RB.
Division 4—Notice of disclosures to be given to Commissioner
329SA Organisation and employer must notify Commissioner
Copies of documents
(1) This section applies to each of the following (a discloser):
(a) an organisation that gives a document to a federal system employer under section 329QA or 329QB;
(b) a federal system employer that gives a document to employees under section 329RB or 329RC.
(2) The discloser must give a copy of the document to the Commissioner, no later than 28 days after the later of:
(a) the day the arrangement to which the document relates is entered into; and
(b) the day the document is given to the employer or employees.
Civil penalty: 60 penalty units.
Notice of end of arrangement
(3) If:
(a) the discloser has given the Commissioner a copy of a document in relation to an arrangement; and
(b) the arrangement comes to an end;
the discloser must, as soon as practicable and in accordance with subsection (4), give the Commissioner notice of the end of the arrangement.
Civil penalty: 60 penalty units.
(4) The notice under subsection (3) must:
(a) be in writing; and
(b) include any details prescribed by the disclosable arrangements rules; and
(c) be in accordance with any other requirements prescribed by the disclosable arrangements rules.
329SB Civil penalty for false or misleading notice
A person must not make a statement for inclusion in a notice under subsection 329SA(3) if the person knows, or is reckless as to whether, the statement is false or misleading.
Civil penalty: 60 penalty units.
329SC Publication by Commissioner
(1) The Commissioner must publish on the Commission’s website copies of documents given to the Commissioner under subsection 329SA(2), as soon as practicable.
(2) However, the Commissioner:
(a) must omit any residential addresses; and
(b) may, at the Commissioner’s discretion, omit other personal information.
(3) Subsection (1) does not prevent the Commissioner from removing from the Commission’s website documents that have been replaced or which relate to arrangements for which notices of their end have been given under subsection 329SA(3).
4 At the end of paragraph 329PE(4)(a)
Add:
or (iii) a worker entitlement fund;
5 Application of amendments
(1) Part 3D of Chapter 11 of the Fair Work (Registered Organisations) Act 2009, as inserted by this Schedule, applies in relation to disclosable arrangements entered into on or after the day this item commences.
(2) That Part also applies in relation to a disclosable arrangement entered into before, and in effect on, the day this item commences, as if:
(a) the arrangement had been entered into on the day this item commences; and
(b) the references in sections 329QA and 329RB to a financial benefit that will or can reasonably be expected to be received or obtained in connection with the arrangement were references to financial benefits that will or can reasonably be expected to be received or obtained on or after that day; and
(c) the time by which a document must be given under section 329QA or 329RB in relation to the arrangement was the day that is 6 months after the day this item commences.
(3) A discloser (within the meaning of subsection 329SA(1) of the Fair Work (Registered Organisations) Act 2009) is taken to comply with subsection 329SA(2) of that Act in relation to a document given under section 329QA or 329RB (as it applies in accordance with subitem (2) of this item), if the discloser gives the Commissioner a copy of the document no later than 28 days after giving the document to the employer under section 329QA or the employees under section 329RB.