FOI 2528
Document 1
Question on notice no. 93
Portfolio question number: 93
2018-19 Budget estimates
Economics Committee, Treasury Portfolio
Senator Peter Whish-Wilson: asked the Department of the Treasury on 30 May
2018
Senator WHISH-WILSON: Mr Jordan, in relation to your opening statement and your
responses to Senator Keneally's questions about Four Corners, [...] The government
announced its commitment to establish a beneficial owners register in December
2016. Can you update us on that?
[...]
Ms Mrakovcic: That question should probably be referred to Markets Group in
Treasury. I'm happy to take it on notice for them.
[...]
Senator WHISH-WILSON: It's company structures, right?
Ms Purvis-Smith: That's right. My understanding is that Markets Group have put out
a consultation paper and are responsible for the legislation, so questions in relation to
that should be referred to Markets Group.
Senator WHISH-WILSON: But it is an anti-tax-avoidance strategy, correct?
Ms Purvis-Smith: In relation to the material on companies-and again, I think this is
best framed to Markets Group-it's relating to the change in the Corporations Act.
Senator WHISH-WILSON: If you could take that on notice, and I'll put some
questions to them as well. I want to know what work's been done on it, and whether
we're still going to see some kind of legislation.
Answer —
See attachment.
Senate Economics Legislation Committee
ANSWERS TO QUESTIONS ON NOTICE
Treasury Portfolio
Budget Estimates
2018 - 2019
Division/Agency: Consumer and Corporations Policy Division
Question No:
93
Topic:
Beneficial Owners Register
Reference:
Hansard page 17 (30 May 2018)
Senator:
Peter Whish-Wilson
Question:
Senator WHISH-WILSON: Mr Jordan, in relation to your opening statement and your
responses to Senator Keneally's questions about Four Corners, [...] The government
announced its commitment to establish a beneficial owners register in December 2016. Can
you update us on that?
[...]
Ms Mrakovcic: That question should probably be referred to Markets Group in Treasury. I'm
happy to take it on notice for them.
[...]
Senator WHISH-WILSON: It's company structures, right?
Ms Purvis-Smith: That's right. My understanding is that Markets Group have put out a
consultation paper and are responsible for the legislation, so questions in relation to that
should be referred to Markets Group.
Senator WHISH-WILSON: But it is an anti-tax-avoidance strategy, correct?
Ms Purvis-Smith: In relation to the material on companies—and again, I think this is best
framed to Markets Group—it's relating to the change in the Corporations Act.
Senator WHISH-WILSON: If you could take that on notice, and I'll put some questions to
them as well. I want to know what work's been done on it, and whether we're still going to
see some kind of legislation.
Answer:
The Government committed in December 2016 in the Open Government National Action
Plan to improve transparency of information of beneficial ownership and control of
companies available to relevant authorities. The Government’s objective is to assist relevant
authorities to address illegal activities of tax evasion, money laundering, corruption and
terrorism financing.
As part of this commitment, the Government released a public consultation paper seeking
views on the details, scope and implementation of a beneficial ownership register for
companies. Treasury has considered submissions to the public consultation and has provided
the Minister for Revenue and Financial Services with recommendations to increase the
transparency of beneficial ownership of companies.
What action, if any, is to be taken in relation to this matter is a policy matter for Government.
SQ18-000306
Senate Economics Legislation Committee
ANSWERS TO QUESTIONS ON NOTICE
FOI 2528
Document 2
Treasury Portfolio
Additional Estimates
2018 - 2019
Division/Agency: Consumer and Corporations Policy Division
Question No:
AET68
Topic:
Law enforcement agencies
Reference:
Hansard page 76 (20 February 2019)
Senator:
Chris Ketter
Question:
Senator KETTER: Which law enforcement agencies have argued in favour of a beneficial
ownership register?
Ms O'Rourke: We have got all of the submissions available, but we might take on notice
exactly which agencies are the ones that have supported the different options that Ms
Williamson described.
Senator KETTER: The ATO, for example?
Ms O'Rourke: Again, I'd like to take the question on notice to make sure I properly describe
their position.
Answer:
The Government undertook public consultation on the details, scope and implementation of a
beneficial ownership register for companies as well as other options to improve beneficial
ownership transparency from 13 February to 13 March 2017.
Treasury also engaged with the Australian Securities and Investments Commission (ASIC),
the Australian Taxation Office and the Australian Transaction Reports and Analysis Centre as
part of this consultation process. These agencies supported increasing transparency of
beneficial ownership information for companies, and supported a register of beneficial
ownership as one avenue to achieve this objective. However, ASIC does not support
implementing a register on its current information technology platforms.
SQ19-000027
BENEFICIAL OWNERSHIP
FOI 2528
Document 3
Key Message:
•
The Government is committed to improving the transparency of information
around beneficial ownership and control of companies available to relevant
authorities. The Government is currently considering what action may be
needed to improve the transparency of beneficial ownership information.
Key Facts And Figures:
•
Exploitation of company and trust structures results in gains for criminals and financial losses to the
Australian economy. Greater transparency around who controls and benefits from these entities will
enable authorities to better tackle illicit activities including tax evasion and money laundering.
Coalition Action:
International commitments
•
As a founding member of the Financial Action Task Force (FATF), Australia is committed to developing
and meeting international standards to combat money laundering and terrorist financing. Australia has
also committed to the G20 High-Level Principles on Beneficial Ownership Transparency to improve the
transparency of Australia’s beneficial ownership information. Australia reiterated its commitment to the
FATF standards and beneficial ownership transparency at G20 meetings in 2015, 2016, 2017 and 2018.
Australia’s first Open Government National Action Plan 2016-18
•
On 7 December 2016, the Government committed to improve the transparency of information on
beneficial ownership and control of companies for relevant authorities in Australia’s first Open
Government National Action Plan 2016-18 (NAP1).
•
Australia has completed two of the three milestones under this commitment: 1) Treasury “to release a
public consultation paper”, and 2) Treasury “continuing to consult with stakeholders [and] provide a
recommendation to Government”.
•
The final milestone is outstanding. That is, to “Begin work to implement Government decision on
transparency of beneficial ownership of companies.” This milestone is marked as “Delayed” on the
Open Government National Action Plan (OGNAP) website and the overall NAP1 commitment for
beneficial ownership has not been completed.
•
The Government will continue to publicly report on the status of this commitment via the OGNAP
website until it has been completed.
Release of consultation paper
•
Between 13 February and 13 March 2017 the Government released for public consultation a paper
entitled ‘Increasing Transparency of the Beneficial Ownership of Companies’. Twenty-three non-
confidential submissions to the consultation have been published on the Treasury website. Submissions
were received from professional bodies, academics and individuals. The majority of stakeholders broadly
supported increasing the collection of information on the beneficial ownership of companies.
Page 1 of 2
QTB Number
QB18-000056
Adviser
s 22
Contact Officer
s 22
Contact Number
(02) s 22
Division responsible
Consumer and Corporations Policy Division Name
Office Responsible
Treasurer
Date of Update
26 June 2019
BENEFICIAL OWNERSHIP
Background:
s 22
–
The Government has consulted publicly on improving transparency around who owns, controls and
benefits from companies to assist relevant law enforcement authorities in combating illicit activities
including tax evasion, money laundering, bribery, corruption and terrorism financing.
–
The Government is currently considering what action may be needed to improve the transparency
of beneficial ownership information.
:
As with any law or regulatory change, careful consideration needs to be given as to the impacts
of collecting beneficial ownership information, what information should be collected and
which agencies it should be made available to.
Page 2 of 2
QTB Number
QB18-000056
Adviser
s 22
Contact Officer
s 22
Contact Number
(02) s 22
Division responsible
Consumer and Corporations Policy Division Name
Office Responsible
Treasurer
Date of Update
26 June 2019
FOI 2528
Document 4
Question on notice no. 98
Portfolio question number: 98
2018-19 Supplementary budget estimates
Economics Committee, Treasury Portfolio
Senator Peter Whish-Wilson: asked the Department of the Treasury on 24 October
2018
(1. What is the status of the commitment to establish a beneficial ownership register
for companies?
2. When will a beneficial ownership register for companies be established?
Answer —
See attachment.
Senate Economics Legislation Committee
ANSWERS TO QUESTIONS ON NOTICE
Treasury Portfolio
Supplementary Budget Estimates
2018 - 2019
Division/Agency: Consumer and Corporations Policy Division
Question No:
98
Topic:
Beneficial ownership register
Reference:
Written (2 November 2018)
Senator:
Peter Whish-Wilson
Question:
1. What is the status of the commitment to establish a beneficial ownership register for
companies?
2. When will a beneficial ownership register for companies be established?
Answer:
1. In December 2016 the Government committed in the Open Government National Action
Plan to improve transparency of information of beneficial ownership and control of
companies available to relevant authorities. The Government’s objective is to assist relevant
authorities to address illegal activities such as tax evasion, money laundering, corruption and
terrorist financing.
As part of this commitment, the Government released a public consultation paper seeking
views on the details, scope and implementation of a beneficial ownership register for
companies.
2. No commitment to implement a register has been made by Government. The Government
is considering what action may be needed to increase the transparency of beneficial
ownership of companies.
SQ18-000560
FOI 2528
Document 5
Question on notice no. 100
Portfolio question number: 100
2018-19 Supplementary budget estimates
Economics Committee, Treasury Portfolio
Senator Chris Ketter: asked the Department of the Treasury on 24 October 2018
(1. Treasury's consultation on increasing transparency of the beneficial ownership of
companies finished on March 2017. Has Treasury provided advice to Government
stemming from this consultation?
2. When did Treasury provide advice to Government about beneficial ownership?
3. Has Treasury engaged in legislative drafting for beneficial ownership as a result of
this consultation?
4. When will Treasury release draft legislation on reforms to beneficial ownership?
Answer —
See attachment.
Senate Economics Legislation Committee
ANSWERS TO QUESTIONS ON NOTICE
Treasury Portfolio
Supplementary Budget Estimates
2018 - 2019
Division/Agency: Consumer and Corporations Policy Division
Question No:
100
Topic:
Beneficial Ownership
Reference:
Written (02 November 2018)
Senator:
Chris Ketter
Question:
1. Treasury’s consultation on increasing transparency of the beneficial ownership of
companies finished on March 2017. Has Treasury provided advice to Government stemming
from this consultation?
2. When did Treasury provide advice to Government about beneficial ownership?
3. Has Treasury engaged in legislative drafting for beneficial ownership as a result of this
consultation?
4. When will Treasury release draft legislation on reforms to beneficial ownership?
Answer:
1. Yes.
2. Treasury’s advice to the Minister for Revenue and Financial Services was provided after
the consultation period closed and during the implementation period for the OGNAP.
3. The Government is considering what action may be needed to increase the transparency of
beneficial ownership of companies. Next steps could include development of any necessary
legislative reforms and their implementation.
4. See response to question 3.
SQ18-000562
FOI 2528
Document 6
Question on notice no. 69
Portfolio question number: 69
2018-19 Additional estimates
Economics Committee, Treasury Portfolio
Senator Chris Ketter: asked the Department of the Treasury on 20 February 2019
Senator KETTER: Can you tell me which stakeholders argued against a beneficial
ownership register?
Ms O'Rourke: If you don't mind, I'd like to take that on notice to give you a complete
list?
Answer —
See attachment.
Senate Economics Legislation Committee
ANSWERS TO QUESTIONS ON NOTICE
Treasury Portfolio
Additional Estimates
2018 - 2019
Division/Agency: Consumer and Corporations Policy Division
Question No:
AET69
Topic:
Which stakeholders argued against a beneficial ownership register?
Reference:
Hansard page 77 (20 February 2019)
Senator:
Chris Ketter
Question:
Senator KETTER: Can you tell me which stakeholders argued against a beneficial ownership
register?
Ms O'Rourke: If you don't mind, I'd like to take that on notice to give you a complete list?
Answer:
The Government consulted publicly on the details, scope and implementation of a beneficial
ownership register for companies as well as other options to improve beneficial ownership
transparency from 13 February to 13 March 2017.
All non-confidential submissions have been published on Treasury’s website. One of these
submissions – from the Australian Investor Relations Association – argued against the
establishment of a centrally operated register of beneficial ownership.
SQ19-000031
