The Personal Liability for Corporate Fault Reform Bill 2012 was introduced in the House of Reps on Wed 19.9.2012. It implements the Council of Australian Governments’ (COAG) Directors’ Liability reform, which aims to harmonise the imposition of personal criminal liability for corporate fault across Australian jurisdictions.
The amendments proposed to be made by this Bill would apply the Principles agreed as part of the COAG Directors’ Liability reform to Commonwealth legislation across various portfolios, including the Corporations Act 2001, ITAA 1936, Taxation Administration Act 1953, Superannuation Guarantee (Administration) Act 1992, and several other Acts.
The Bill proposes to amend these Acts to:
- remove personal criminal liability for corporate fault where such liability is not justified;
- remove the burden of proof on defendants to establish a defence to a charge;
- replace personal criminal liability for corporate fault with civil liability where a non-criminal penalty is appropriate; and
- where personal criminal liability is justified, to make clear the circumstances where such liability would apply.
DATE OF EFFECT: The Bill will commence on the day following Royal Assent.
[LTN 182, 19/9]