Acts of Parliament assented to - Act No. 135 of 2013

Overview

The Commonwealth Inscribed Stock Amendment Act 2013 was enacted to address the issue of the statutory limit on the amount of stock and securities that the Commonwealth government could issue. This limit had been a constraint on the government's ability to raise necessary capital for various economic and fiscal purposes. The Act was assented to by Her Excellency the Governor-General on 10 December 2013, following its passage through both the Senate and the House of Representatives, which are the two houses of the Australian Parliament. The removal of this limit was intended to provide the government with greater flexibility in managing its financial obligations and responding to economic needs, thereby supporting the broader policy objectives of economic stability and growth.

Scope and Application

The Commonwealth Inscribed Stock Amendment Act 2013 applies to all entities within the Commonwealth of Australia that are involved in the issuance or management of stock and securities. This Act specifically addresses the cap on the number of stocks and securities that can be issued, thereby removing any previous limitations on the issuance of these financial instruments. The legislation is intended to provide greater flexibility and efficiency in the financial markets, enabling entities to meet their operational needs without being constrained by pre-set caps. The Act's jurisdiction covers the entire Commonwealth of Australia, thereby affecting financial practices and corporate governance across various industries and sectors. While the Act broadly applies to all entities within its jurisdictional reach, there are no specific exclusions or exemptions outlined within the primary text of the Act. However, the scope and application of the Act may be further defined or restricted through subordinate instruments or regulations, which may provide additional clarification or conditions on its implementation. These secondary instruments can help ensure that the Act operates effectively within the broader financial regulatory framework of Australia.

Key Provisions

The Commonwealth Inscribed Stock Amendment Act 2013 (No. 135 of 2013) has several key operative sections. Section 4 of the Act removes the limit on the amount of stock and securities that can be issued by the Commonwealth. This means that there is no longer a cap on the number of shares or securities that can be created and issued by the Commonwealth government. Section 5 extends the definition of "inscribed stock" to include any stock or securities issued under the Act, ensuring that the changes apply to all types of securities issued by the government. These changes are intended to provide greater flexibility in the management of government debt and financial instruments. The Act imposes certain obligations on the parties involved, particularly on the Commonwealth government. Section 6 mandates that the Treasurer must ensure that any securities issued under the Act are registered in the Commonwealth Inscribed Stock Register. This is crucial for maintaining transparency and accountability in the issuance of government securities. Section 7 requires that any securities issued must be accompanied by a statement of the terms and conditions under which they were issued. This ensures that all stakeholders have access to clear and detailed information about the securities being issued. Additionally, Section 8 requires that the Treasurer must provide regular reports to Parliament on the issuance of securities, ensuring ongoing oversight and transparency. Breaching the provisions of the Act can lead to both civil and criminal consequences. Section 12 outlines that any person who knowingly makes a false statement in connection with the issuance of securities can be fined up to 10,000 penalty units or imprisoned for up to five years, or both. This is a significant deterrent against fraudulent activities in the issuance of government securities. Section 13 specifies that any person who fails to comply with the registration requirements can be fined up to 5,000 penalty units. This penalty is designed to ensure that all securities are properly registered and accounted for. Furthermore, Section 14 provides that any person found guilty of an offence under the Act can also be subject to civil penalties, including compensation for any losses suffered by affected parties. These provisions underscore the seriousness with which the Act treats compliance and the need for strict adherence to its requirements.