Australia has inadequate corporate regulatory systems. This enables people who have been involved in corruption and other illegal activities to register companies in Australia.
A stronger corporate regulatory system requires greater transparency and proper due diligence. In 2020, the Australian government allocated funding for implementation of the Modernising Business Registers (MBR) program. This program aims to improve the administration of business registers and unify the Australian Business Register and the 31 business registers held with the Australian Securities and Investments Commission (ASIC). This is long overdue and a welcomed step. It goes some way in addressing the flaws in the current system, but greater reform is required for it to be fit for purpose. It appears it will assist with preventing phoenixing activities and tax evasion, but is a missed opportunity to overhaul the system to address arguably the more important issue of having a reliable system for due diligence.