Banking Amendment Regulations 2011 (No. 1) (Cth)

Text

Banking Amendment Regulations 2011 (No. 1)¹

Select Legislative Instrument 2011 No. 224

I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Banking Act 1959.

Dated 23 November 2011

QUENTIN BRYCE

Governor-General

By Her Excellency’s Command

WAYNE SWAN

Treasurer

1              Name of Regulations

                These Regulations are the Banking Amendment Regulations 2011 (No. 1).

2              Commencement

                These Regulations commence on the day after they are registered.

3              Amendment of Banking Regulations 1966

Schedule 1 amends the Banking Regulations 1966.

Schedule 1        Amendments

(regulation 3)

[1]           Subregulation 2 (1), after definition of holder of the stored value

insert

limit means the amount worked out under subregulation 5 (1).

[2]           Subregulation 2 (1), after definition of retirement savings account

insert

total category 1 deposits means the amount worked out under subregulation 5 (2).

total category 2 deposits means the amount worked out under subregulation 5 (3).

[3]           After subregulation 2 (2)

insert

         (3)   Use the table to work out whether an amount held by an account-holder with a declared ADI is a category 1 deposit or a category 2 deposit.

Item	This amount ...	is ...
Before 1 February 2012
1	any amount in any account	a category 1 deposit
On and after 1 February 2012
2	an amount in a term deposit that:    (a)  came into existence before 11 September 2011; and   (b)  has not matured or rolled over	a category 1 deposit
3	an amount in a term deposit that:    (a)  came into existence before 11 September 2011; and   (b)  has matured or rolled over on or after 11 September 2011	a category 2 deposit
4	an amount in a term deposit that came into existence on or after 11 September 2011	a category 2 deposit
5	an amount in any other account	a category 2 deposit

[4]           Regulation 5

substitute

5              Financial claims scheme — limit on payments

         (1)   For subsection 16AG (1) of the Act, before 1 January 2013, the limit in relation to a protected account, or protected accounts, that an account-holder has with a particular declared ADI at a particular time, is worked out as follows:

Step 1       Add together the total category 1 deposits and total category 2 deposits.

Step 2       If the result worked out under Step 1 is not greater than $1 000 000, the result is the limit.

Step 3       If the result worked out in Step 1 is greater than $1 000 000, work out the limit by subtracting the difference between the result worked out in Step 1 and $1 000 000.

Note   The limit is a single amount that applies to all of the protected accounts that the account-holder has with the declared ADI.

         (2)   Work out the total category 1 deposits by adding together the amounts held by the account-holder in category 1 deposits.

         (3)   Work out the total category 2 deposits as follows:

Step 1       Add together the amounts held by the account-holder in category 2 deposits.

Step 2       If the amount worked out in Step 1 is not greater than $250 000, this is the total category 2 deposits.

Step 3       If the amount worked out in Step 1 is greater than $250 000, work out the total category 2 deposits by subtracting the difference between the result worked out in Step 1 and $250 000.

         (4)   On or after 1 January 2013, the limit in relation to a protected account, or protected accounts, that an account-holder has with a particular declared ADI at a particular time is $250 000.

Note

1.       All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See