International Arbitration Amendment Act 1989

Administered by Attorney-General's Department

Legislation au C2004A03773 Not in force Act

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International Arbitration Amendment Act 1989

No. 25 of 1989

 

An Act to amend the Arbitration (Foreign Awards and Agreements) Act 1974

[Assented to 15 May 1989]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title etc.

1. (1) This Act may be cited as the International Arbitration Amendment Act 1989.

(2) In this Act, “Principal Act” means the Arbitration (Foreign Awards and Agreements) Act 19741.

Long title of Principal Act

2. The long title of the Principal Act is repealed and the following title is substituted:

“An Act relating to the recognition and enforcement of foreign arbitral awards, and the conduct of international commercial arbitrations, in Australia, and for related purposes.”.


Heading

3. Before section 1 of the Principal Act the following heading is inserted:

“PART I—PRELIMINARY”.

Short title of Principal Act

4. Section 1 of the Principal Act is amended by omitting “Arbitration (Foreign Awards and Agreements)” and substituting “International Arbitration”.

5. After section 2 of the Principal Act the following sections and heading are inserted:

Territories

“2a. This Act extends to all external Territories.

Crown to be bound

“2b. This Act binds the Crown in right of the Commonwealth, of each of the States, of the Northern Territory and of Norfolk Island.

Effect on Sea-carriage of Goods Act

“2c. Nothing in this Act affects the operation of section 9 of the Sea-carriage of Goods Act 1924.

“PART II—ENFORCEMENT OF FOREIGN AWARDS”.

Repeal of sections 5, 6 and 11

6. Sections 5, 6 and 11 of the Principal Act are repealed.

7. After section 14 of the Principal Act the following Part is inserted:

“PART III—INTERNATIONAL COMMERCIAL ARBITRATION

“Division 1—Preliminary

Interpretation

“15. (1) In this Part:

‘Model Law’ means the UNCITRAL Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law on 21 June 1985, the English text of which is set out in Schedule 2.

“(2) Except so far as the contrary intention appears, a word or expression that is used both in this Part and in the Model Law (whether or not a particular meaning is given to it by the Model Law) has, in this Part, the same meaning as it has in the Model Law.


“Division 2—Model Law

Model Law to have force of law

“16. (1) Subject to this Part, the Model Law has the force of law in Australia.

“(2) In the Model Law:

‘State’ means Australia (including the external Territories) and any foreign country;

‘this State’ means Australia (including the external Territories).

Interpretation of Model Law—use of extrinsic material

“17. (1) For the purposes of interpreting the Model Law, reference may be made to the…

Overview

The International Arbitration Amendment Act 1989 was enacted to update and modernise the Arbitration (Foreign Awards and Agreements) Act 1974, providing a more robust legal framework for international commercial arbitrations within Australia. The Act was assented to on 15 May 1989 by the Queen, on the advice of the Parliament of the Commonwealth of Australia. The primary objective of the Amendment Act was to incorporate the United Nations Commission on International Trade Law's (UNCITRAL) Model Law on International Commercial Arbitration, adopted on 21 June 1985, into Australian law, thereby aligning Australia's domestic arbitration legislation with international best practices. This legislative change aimed to enhance the efficiency, predictability, and enforceability of international arbitrations conducted in Australia, thereby fostering greater confidence among international businesses in choosing Australian courts and institutions for dispute resolution.

Scope and Application

The International Arbitration Amendment Act 1989 applies to the Commonwealth of Australia, including its external territories, and binds the Crown in right of the Commonwealth, the states, the Northern Territory, and Norfolk Island. It amends the Arbitration (Foreign Awards and Agreements) Act 1974, which is now referred to as the International Arbitration Act 1989. The amended Act concerns the recognition and enforcement of foreign arbitral awards, and the conduct of international commercial arbitrations in Australia. The Act extends the application of the principal Act to all external territories and binds the Crown in right of the Commonwealth, the states, the Northern Territory, and Norfolk Island. Notably, it does not affect the operation of section 9 of the Sea-carriage of Goods Act 1924. The Act incorporates the UNCITRAL Model Law on International Commercial Arbitration as part of Australian law, subject to certain exceptions and specific provisions regarding interpretation, application, and enforcement. This includes provisions for the appointment of arbitrators, the jurisdiction of arbitral tribunals, and the making, interpretation, and enforcement of arbitral awards. The Act also includes provisions for the consolidation of arbitral proceedings, the awarding of interest and costs, and the liability of arbitrators. Certain sections of the principal Act are repealed, and new sections are inserted to reflect the changes brought about by this amendment.

Key Provisions

  • The International Arbitration Amendment Act 1989 introduces several significant changes to the Arbitration (Foreign Awards and Agreements) Act 1974, hereinafter referred to as the "Principal Act." The primary changes are the introduction of new sections and the amendment of existing provisions to align with the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration. This Act extends the application of the Principal Act to all external territories, binds the Crown in right of the Commonwealth, and ensures that the amendments do not affect the operation of the Sea-Carriage of Goods Act 1924.
  • The Act introduces a new Part III titled "International Commercial Arbitration," which includes preliminary provisions, interpretation of the Model Law, and provisions for the enforcement of arbitral awards. The Model Law is given the force of law in Australia, and its interpretation allows reference to documents from UNCITRAL and its working group. The courts specified under the Model Law are designated as competent to perform certain functions, and provisions are made for the application of Chapter VIII of the Model Law in specific cases.
  • Under the new Act, the Model Law provisions on the public policy of Australia, consolidation of arbitral proceedings, interest on awards, and costs are incorporated. The liability of arbitrators and representation in proceedings are also addressed, with arbitrators not being liable for negligence but liable for fraud. The Act also includes provisions for the application of Part III to existing arbitration agreements and specifies that the Part does not apply unless the parties agree otherwise.
  • The penalties and consequences for breach of this Act are not explicitly detailed within the text of the Act. However, breaches of the provisions could potentially lead to civil or criminal consequences depending on the nature of the breach, such as non-compliance with the enforcement of arbitral awards, failure to adhere to the provisions of the Model Law, or misrepresentation in proceedings. The specific penalties would be determined by the courts when adjudicating on cases involving breaches of the Act, and could include orders for setting aside arbitral awards, refusal of recognition or enforcement of awards, and potential fines or imprisonment for criminal breaches.

Legal classification tags

Area of Law
International Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Enforcement Powers
Licensing & Registration
Regulatory Standards
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.