Federal govt's beneficial ownership register plan to be centralised
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The news: The federal government plans to launch and maintain an open register of beneficial ownership of companies to boost transparency about who ultimately controls unlisted companies, which may be different from the legal owners.
The government is targeting early 2028 to have the Australian Securities and Investments Commission (ASIC) beneficial ownership register designed and legislated, according to a spokesperson.
The government had previously expected to launch a beneficial ownership registry through a two-staged approach, with lists to initially be maintained by companies rather than the government.
The context: In a statement, Assistant Minister for Productivity, Competition, Charities and Treasury Andrew Leigh said the federal government will “now proceed directly to a public, Commonwealth-operated register of beneficial ownership information for unlisted companies”.
He also noted that “further detailed policy development work” on the beneficial ownership register would be undertaken from early 2027, which will be followed by public consultation. The government will also progress work on developing a beneficial ownership regime in relation to trusts.
Leigh said this aligns with plans to integrate beneficial ownership information with the new ASIC companies register, currently expected to be finalised by the end of 2026.
The federal government previously announced in August 2023 that it had abandoned the former modernising business registers program amid huge cost blowouts, with federal funding currently targeted at stabilising the existing registry and further upgrade work.
What they said: “The work will include adapting policy specifications as outlined in the 2022 consultation paper and the December 2024 update, and the findings of a privacy impact assessment, to direct implementation of a public, Commonwealth‑operated register,” Leigh said.
“The changes announced today further respond to feedback the Government received in previous consultations. A centralised register is better for the purpose of law enforcement and civil society and this change will reduce the regulatory impact of a two‑staged approach.”
Transparency International CEO Clancy Moore said: “A public corporate transparency register that is accessible by journalists, civil society and law enforcement is essential to ‘follow the money’ and combat money laundering and corruption.
“A beneficial ownership register that is also supported by some of Australia’s leading companies like ANZ, BHP and NAB as it will help them do customer due-diligence checks and reduce the risk of corruption across their supply chains and customer bases.”
The sources: Assistant Minister Andrew Leigh media release, Transparency International media release, InnovationAus.com
