edited
24th Mar 2023
Financial Accountability Regime Bill 2023 - Report from Federation Chamber - Penalities and indemnity
Passed by a large majority
No rebellions 45% attendance
5th Sep 2023, 12:16 PM – Senate Financial Accountability Regime Bill 2023, Financial Accountability Regime (Consequential Amendments) Bill 2023 - in Committee - Accountability
Summary
EditThe majority voted against amendments introduced by Tasmanian Senator Nick McKim (Greens), which means they failed. The amendments related to civil penalties and indemnities for accountable persons.
There was one rebel voted, with Queensland Senator Gerard Rennick (Queensland) voting Yes against the rest of his party.
Amendment text
(1) Clause 4, page 4 (line 7), omit "or by the Regulator through disqualification", substitute "by the Regulator through disqualification, or through civil penalties for non-compliance".
(2) Clause 14, page 18 (line 12), omit "or disqualification by the Regulator", substitute ", disqualification by the Regulator, or civil penalties for non-compliance".
(3) Clause 18, page 22 (after line 6), at the end of subclause (1), add:
Note: Failure to comply with an obligation under this Chapter is a contravention of a civil penalty provision (see section 80).
(4) Clause 35, page 42 (line 7), after "disqualified", insert "or liable to a civil penalty".
(5) Clause 40, page 49 (after line 17), after paragraph (4)(e), insert:
(ea) details of any civil penalty order made against the person for a contravention of a civil penalty provision of this Act; and
(6) Clause 80, page 85 (after line 12), at the end of the clause, add:
(3) A person contravenes this subsection if:
(a) the person is an accountable person of:
(i) an accountable entity that is a medium or large banking entity; or
(ii) an accountable entity that is not an ADI or an authorised NOHC of an ADI; and
(b) the person is subject to an obligation under Chapter 2 in relation to the entity; and
(c) the person fails to comply with the obligation.
Note: It is generally not necessary to prove a person's state of mind in proceedings for a contravention of a civil penalty provision (see section 94 of the Regulatory Powers Act, which applies because of section 82 of this Act).
(4) A person is liable to a civil penalty if the person contravenes subsection (3).
(5) In this section:
medium or large banking entity means:
(a) an ADI that is, immediately before the day that is 6 months after this Act commences, a medium ADI or large ADI under the Banking Act 1959; or
(b) an authorised NOHC of such an ADI.
(7) Clause 83, page 88 (line 9), omit "Note 1", substitute "Note".
(8) Clause 83, page 88 (lines 11 and 12), omit note 2 to subclause (3).
(9) Heading to clause 97, page 102 (line 24), at the end of the heading, add "and accountable persons".
(10) Clause 97, page 102 (after line 32), after subclause (1), insert:
(1A) An accountable entity, or a significant related entity of an accountable entity, must not (whether by agreement or by making a payment, and whether directly or through an interposed entity):
(a) indemnify a person who is or was an accountable person of:
(i) the accountable entity; or
(ii) a significant related entity of the accountable entity;
against the consequences of breaching an obligation under this Act; or
(b) pay, or agree to pay, a premium for a contract insuring such a person against the consequences of breaching an obligation under this Act.
(11) Clause 97, page 103 (line 1), omit "Subsection (1) does not", substitute "Subsections (1) and (1A) do not".
(12) Clause 97, page 103 (line 4), at the end of subclause (3), add "or (1A)".
(13) Clause 97, page 103 (lines 6 to 9), omit paragraph (4)(a), substitute:
(a) subsections (1) and (1A) apply to a related body corporate (other than a significant related entity) of an accountable entity in the same way as they apply to a significant related entity of the accountable entity; and
Votes Not passed by a small majority
There was 1 rebellion in this division.
- Gerard Rennick voted Yes against the majority of the Liberal Party.
| Party | Votes | |
|---|---|---|
| Australian Greens (100% turnout) | 11 Yes – 0 No | |
| Penny Allman-Payne Queensland | Yes | |
| Dorinda Cox WA | Yes | |
| Mehreen Faruqi NSW | Yes | |
| Sarah Hanson-Young SA | Yes | |
| Nick McKim Tasmania | Yes | |
| Barbara Pocock SA | Yes | |
| Janet Rice Victoria | Yes | |
| David Shoebridge NSW | Yes | |
| Jordon Steele-John WA | Yes | |
| Larissa Waters Queensland | Yes | |
| Peter Whish-Wilson Tasmania | Yes | |
| Australian Labor Party (80% turnout) | 0 Yes – 20 No | |
| Tim Ayres NSW | No | |
| Carol Brown Tasmania | No | |
| Anthony Chisholm Queensland | No | |
| Raff Ciccone Victoria | No | |
| Katy Gallagher ACT | No | |
| Nita Green Queensland | No | |
| Karen Grogan SA | No | |
| Jenny McAllister NSW | No | |
| Deborah O'Neill NSW | No | |
| Fatima Payman WA | No | |
| Helen Polley Tasmania | No | |
| Louise Pratt WA | No | |
| Tony Sheldon NSW | No | |
| Marielle Smith SA | No | |
| Glenn Sterle WA | No | |
| Jana Stewart Victoria | No | |
| Anne Urquhart Tasmania | No | |
| Jess Walsh Victoria | No | |
| Murray Watt Queensland | No | |
| Linda White Victoria | No | |
| Catryna Bilyk Tasmania | Absent | |
| Patrick Dodson WA | Absent | |
| Don Farrell SA | Absent | |
| Malarndirri McCarthy NT | Absent | |
| Penny Wong SA | Absent | |
| Jacinta Nampijinpa Price NT Country Liberal Party | Absent | |
| Andrew McLachlan SA Deputy President | No | |
| David Pocock ACT Independent | Yes | |
| Lidia Thorpe Victoria Independent | Absent | |
| David Van Victoria Independent | Absent | |
| Jacqui Lambie Network (100% turnout) | 2 Yes – 0 No | |
| Jacqui Lambie Tasmania | Yes | |
| Tammy Tyrrell Tasmania | Yes | |
| Liberal National Party (0% turnout) | Absent | |
| Matthew Canavan Queensland | Absent | |
| James McGrath Queensland | Absent | |
| Liberal Party (39% turnout) | 1 Yes – 8 No | |
| Gerard Rennick Queensland | Yes | |
| Michaelia Cash WA | No | |
| Jonathon Duniam Tasmania | No | |
| Sarah Henderson Victoria | No | |
| Hollie Hughes NSW | No | |
| Kerrynne Liddle SA | No | |
| Matt O'Sullivan WA | No | |
| Linda Reynolds WA | No | |
| Paul Scarr Queensland | No | |
| Alex Antic SA | Absent | |
| Wendy Askew Tasmania | Absent | |
| Simon Birmingham SA | Absent | |
| Andrew Bragg NSW | Absent | |
| Slade Brockman WA | Absent | |
| Claire Chandler Tasmania | Absent | |
| Richard Colbeck Tasmania | Absent | |
| David Fawcett SA | Absent | |
| Jane Hume Victoria | Absent | |
| Maria Kovacic NSW | Absent | |
| James Paterson Victoria | Absent | |
| Marise Payne NSW | Absent | |
| Anne Ruston SA | Absent | |
| Dean Smith WA | Absent | |
| National Party (50% turnout) | 0 Yes – 2 No | |
| Ross Cadell NSW | No | |
| Perin Davey NSW | No | |
| Susan McDonald Queensland | Absent | |
| Bridget McKenzie Victoria | Absent | |
| Pauline Hanson's One Nation Party (50% turnout) | 1 Yes – 0 No | |
| Malcolm Roberts Queensland | Yes | |
| Pauline Hanson Queensland | Absent | |
| Sue Lines WA President | Absent | |
| Ralph Babet Victoria United Australia Party | Yes | |
| Totals (63% turnout) | 17 Yes – 31 No |
Red entries are rebel votes against the majority of a party.
Turnout is the percentage of members eligible to vote that did vote.