Doing business in Australia: The nine main regulators

1.   The Australian Competition and Consumer Commission (ACCC)

The ACCC is an independent Commonwealth statutory authority whose remit is to enforce the Competition and Consumer Act 2010 and a range of additional legislation, promoting competition, fair trading, and regulating national infrastructure. Its main role is to protect, strengthen, and supplement the way competition works in Australian markets. The ACCC will take action where this improves consumer welfare, protects competition, or stops conduct that is anti-competitive or harmful to consumers. The regulator’s four key goals are to:

  • maintain and promote competition and remedy market failure

  • protect the interests and safety of consumers, and support fair trading in markets

  • promote the economically efficient operation of, use of, and investment in monopoly infrastructure

  • increase engagement with the broad range of groups affected by its remit.

The ACCC’s role complements that of state and territory consumer affairs agencies, who administer similar consumer protection legislation in their jurisdictions.

2.   The Australian Prudential Regulation Authority (APRA)

The APRA is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most of the superannuation industry. Once licensed by APRA, an institution is subject to ongoing supervision to ensure it is managing risks prudently and meeting prudential requirements and to identify those institutions that are unable or unwilling to follow the rules. The APRA’s approach to their role is mainly risk-based and recognises that management and boards of supervised institutions are primarily responsible for financial soundness. Through its supervision, APRA’s aim is to identify potential weaknesses in the institutions as early as possible. Institutions facing greater risks receive closer supervision, and it will intervene in the institution’s operations if necessary.

3.   Australian Securities and Investments Commission (ASIC)

ASIC is the corporate, markets, and financial services regulator. It is an independent Commonwealth government body set up under the Australian Securities and Investments Commission Act and which carries out most of its work under the Corporations Act. Its remit is to ensure that Australia’s financial markets are fair and transparent, instilling confidence and trust in investors and consumers. The regulator is required to maintain, facilitate and improve the performance of the financial system and promote confident and informed participation by investors and consumers. ASIC uses its enforcement powers to detect and deal with unlawful conduct, to recover money in appropriate circumstances and sometimes to prevent unlawful conduct before it happens. It responds to breaches of laws within its regulatory responsibility, ranging from minor regulatory offences through to serious misconduct.

4.   Australian Securities Exchange Limited (ASX)

The ASX was formed in 1987 and had markets trading in equities, derivatives, futures, and fixed-interest securities. It functions as a market operator, clearing house and payments system facilitator. It also oversees compliance with its operating rules, promotes standards of corporate governance among Australia’s listed companies and helps to educate retail investors by providing information. The domestic and international customer base of ASX is diverse and includes issuers of a variety of listed securities and financial products; investment and trading banks; fund managers; hedge funds; commodity trading advisers; brokers and proprietary traders; market data vendors; and retail investors.

5.   Australian Taxation Office (ATO)

The ATO is the principal revenue collection agency of the Australian Government, and it has responsibility for administering Australia’s Federal taxation system. The regulator administers major aspects of Australia's superannuation system, acts as custodian of the Australian Business Register, and manager of business operations of the Australian Valuation Office. The role of the ATO is to ensure the community has confidence in the administration of Australia's taxation and superannuation systems. It emphasises the importance of willing and proper participation in tax matters in order to underpin nation-building. Central to how it works are important frameworks and models, such as the compliance model, integrity framework, Taxpayers' Charter, and service standards.

The ATO administers annual taxation self-assessments and conducts random audits to verify individual and company assessments. It also collects excise on tobacco, fuel and petroleum products, and alcohol and administers the Higher Education Loan Programme and the Private Health Insurance rebate.

6.   Foreign Investment Review Board (FIRB)

The FIRB is a non-statutory body established in 1976 to advise the Treasurer and the Government on Australia’s foreign investment policy and its administration. The FIRB's functions are advisory only. Responsibility for making decisions on the policy and proposals rests with the Treasurer. The Treasury's Foreign Investment and Trade Policy Division provides secretariat services to the FIRB and is responsible for the day-to-day administration of the arrangements. The main role of the FIRB is to examine proposed investments in Australia that are subject to the Policy, the Foreign Acquisitions and Takeovers Act 1975 (and supporting legislation), and to make recommendations to the Treasurer. It also provides guidance to foreign persons and their representatives or agents on the Policy and the Act and monitors compliance with the Policy and the Act.

7.   Reserve Bank of Australia (RBA)

The RBA is Australia's independent central bank and derives its functions and powers from the Reserve Bank Act 1959. It has responsibility for monetary, financial system and payments system policies, and other financial matters. Its duty is to contribute to the stability of the currency, full employment, and economic prosperity. It sets the cash rate to meet an agreed medium-term inflation target, working to maintain a strong financial system and efficient payments system and issuing the nation's banknotes. The RBA provides certain banking services as required to the Australian Government and its agencies, and to a number of overseas central banks and official institutions. Additionally, it manages Australia's gold and foreign exchange reserves. The Bank has two boards: the Reserve Bank Board, which has responsibility for monetary policy and financial stability; and the Payments System Board, which has responsibility for matters relating to payments system policy.

8.   IP Australia

IP Australia is the Australian Government agency that administers intellectual property (IP) rights and legislation relating to patents, trademarks, designs, and plant breeder's rights. It is a prescribed agency within the Department of Industry with a remit to:

  • create a secure environment for investment in innovation

  • enable firms to build brand value and business reputation

  • encourage the disclosure of inventions and the transfer of knowledge and technology

  • provide a legal framework for trading intellectual assets

It maintains the registers of patents, designs, trademarks and plant breeder's rights and regularly produces journals detailing new applications and registrations.

9.   .au Domain Administration (auDA)

The .auDA is the policy authority and industry self-regulatory body for the .au domain space. Its role is to perform the following functions:

  • develop and implement domain name policy

  • license 2LD registry operators

  • accredit and license registrars

  • implement consumer safeguards

  • facilitate .au Dispute Resolution Policy

  • represent .au at ICANN and other international forums.

What should I do next?

If you would like to discuss the content of this article, please contact You Legal. We will be happy to answer any questions, and provide guidance and advice with your business plans where we can.

* This blog is for general guidance only.  Legal advice should be sought before taking action in relation to any specific issues.

 

UncategorizedSarah Bartholomeusz