The Treasury has released the third and final part of the Federal Government’s Personal Liability for Corporate Fault Reform Bill 2012 for public comment.

The reforms will amend several provisions in taxation legislation that apply personal criminal liability for corporate fault.

The move to reform directors’ liability began in 2009 but stalled when the states failed to audit their statute books and review their laws.

However, the Government says it is committed to ensuring the final bill goes into Parliament before the end of the year.

The first and second tranches were released earlier this year and applied Council of Australian Governments (COAG) guidelines to Commonwealth non-tax legislation, to determine if the continued application of derivative liability was appropriate.

Federal MP Bernie Ripoll says the Government is acting to remove personal criminal liability from directors “where it breaches principles of good corporate governance and criminal justice”.

He warns against excessive liability, adding: “It is important that responsible business growth is not stifled by excessive personal criminal liability being imposed on directors.”

However, Mr Ripoll says appropriate measures will remain in place for stakeholders when directors have committed an offence.

All Commonwealth legislation has been assessed against reform objectives and principles agreed upon by COAG.

Mr Ripoll says the draft bill will bring Commonwealth legislation into line with these principles.

Submissions close on September 3.