Banking Act 1973

Administered by Department of the Treasury

Legislation au C1973A00116 In force Act

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Banking Act 1973

No. 116 of 1973

 

AN ACT

To amend the Banking Act 1959–1967.

[Assented to 26 October 1973]

BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows;—

Short title and citation.

1. (1) This Act may be cited as the Banking Act 1973.

(2) The Banking Act 1959–1967 is in this Act referred to as the Principal Act.

(3) The Principal Act, as amended by this Act, may be cited as the Banking Act 1959–1973.

Commencement.

2. (1) Sections 1, 2, 3, 5, 6 and 11 shall come into operation on the day on which this Act receives the Royal Assent.

(2) The remaining provisions of this Act shall come into operation on the date on which the provisions of the Principal Act, as amended by this Act, other than sub-section 6a(2), cease to extend to Papua New Guinea.

Repeal of section 3.

3. Section 3 of the Principal Act is repealed.


Interpretation.

4. Section 5 of the Principal Act is amended—

(a) by omitting from the definition of “bank” in sub-section (1) the words “, the Papua and New Guinea Development Bank”; and

(b) by omitting from sub-section (1) the definition of “Papua and New Guinea Development Bank”.

Application of Act.

5. Section 6 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-section:—

“(2) Subject to section 6a, this Act extends to all the Territories.”.

6. After section 6 of the Principal. Act the following section is inserted in Part I:—

Cessation of application of Act to Territory.

“6a. (1) The Treasurer may, by notice published in the Gazette, declare that, on a date specified in the notice, this Act shall cease to extend to an external Territory specified in the notice, and, on. and after the date specified in such a notice, this Act, other than sub-section (2) of this section, does not extend to the Territory so specified and a reference in this Act, other than this section, to a Territory does not include a reference to the Territory so specified.

“(2) Section 8 of the Acts Interpretation Act 1901–1973 applies in relation to a notice published under this section as if the notice were an Act repealing this Act to the extent that, immediately before the date specified in the notice, this Act extended to the Territory specified in the notice.”.

Australian Resources Development Bank may carry on banking business.

7. Section 9a of the Principal Act is amended by omitting the words “Papua and New Guinea Development Bank and the”.

Advance policy.

8. Section 36 of the Principal Act is amended by omitting from sub-section (4) the words “,the Papua and New Guinea Development Bank”.

Definition.

9. Section 51 of the Principal Act is amended by omitting the words “,the Papua and New Guinea Development Bank”.

Second Schedule.

10. The Second Schedule to the Principal Act is amended—

(a) by omitting from the third footnote to Form A the words “,the Commonwealth Development Bank or the Papua and New Guinea Development Bank” and substituting the words “or the Commonwealth Development Bank”;

(b) by omitting from the fourth footnote to Part I of Form D the words “,the Commonwealth Development Bank or the Papua and New Guinea Development Bank” and substituting the words “or the Commonwealth Development Bank”;


(c) by omitting from Part II of Form D the word “Papua” and the words “New Guinea”;

(d) by omitting from Form E the word “Papua” and the words “New Guinea”;

(e) by omitting from Part II of Form I the word “Papua” and the words “New Guinea”.

Formal amendments.

11. The Principal Act is amended as set out in the Schedule.

 

SCHEDULE Section 11

FORMAL AMENDMENTS

1. The following provisions of the Principal Act are amended by omitting the words “of the Commonwealth”:—

Sections 5(1) (definition of “Australia”), 26(2)(a), 53(e) and 68(3).

2. The following provisions of the Principal Act are amended by omitting any number expressed in words that is used to identify a section of that Act or of another Act, and substituting that number expressed in figures:—

Sections 6(1), 9(1), 9a, 14(2)(c), 17(1) (definition of “determination”), 22(3)(b), 25(1)(e), 26(1) and (2), 30(1), 31(1), 37(3)(a), 44, 49(3)(b)(i), 65(3), 69(5)(b), 70(2)(a) and Second Schedule, footnotes to Forms A, D, G and I.

3. The following provisions of the Principal Act are amended by omitting the words “of this Act” and “of this section” (wherever occurring):—

Sections 5(1) (definition of “bank”), 6(1), 9(1) and (10), 9a, 13(3), 14(2)(c), (4), (5) and (6), 17(1) (definition of “determination”), 22(3)(b), 25(1)(e), 26(1) and (2), 30(1), 31(1), 33(3), (4) and (5), 44, 49(3)(b)(i), 63(3), 65(3) and (4), 69(5)(c) and 70(2)(a).

4. Section 31 of the Principal Act is amended by omitting from sub-section (4) the words “first day of July, each first day of October, each first day of January and each first day of April “and substituting the words “1 July, each 1 October, each 1 January and each 1 April”.

5. Section 69 of the Principal Act is amended by omitting from sub-section (3) the words “thirty-first day of” and substituting the figures “31”.

 

Overview

The Banking Act 1973, enacted by the Parliament of Australia, was introduced to amend the Banking Act 1959-1967. This Act made various amendments to the Principal Act, including the cessation of its application to Papua New Guinea, effective from a date specified by the Treasurer. The purpose of these changes was to align the banking regulations with the evolving geopolitical landscape and to streamline the application of the Act to Australian territories. The policy objective was to ensure that the banking regulations were consistently applied across all territories under Australian jurisdiction while accommodating the unique needs and circumstances of each territory. The Banking Act 1973 also introduced amendments to the definitions, scope, and formal aspects of the Principal Act to ensure clarity and precision in its application. This included removing specific references to Papua New Guinea and adjusting the terminology and formatting of various sections to maintain coherence and ease of understanding. The amendments aimed to provide a more streamlined and efficient regulatory framework for the banking sector in Australia, ensuring that the laws were up-to-date and relevant to the current context.

Scope and Application

The Banking Act 1973, as amended, applies to all banks and authorised deposit-taking institutions within Australia, as well as to their directors, employees, and agents. The Act's jurisdictional reach is national, applying throughout Australia, including its territories, as per the amendments made to section 6 of the Principal Act. The Act does not extend to Papua New Guinea, as clarified by section 6a, which allows the Treasurer to declare the cessation of the Act's application to specified external territories through a notice in the Gazette. This cessation takes effect from a date specified in the notice, effectively excluding the territory from the Act's purview. The Act's application may also be extended or restricted through subordinate instruments, as indicated by the application of section 8 of the Acts Interpretation Act 1901–1973 to notices published under section 6a of the Banking Act 1973.

Key Provisions

The Banking Act 1973 (C1973A00116) primarily amends the Banking Act 1959–1967 (the Principal Act) by altering several definitions, extending the application of the Act, and removing specific references to Papua and New Guinea. Section 1 establishes the short title and citation of the Act, while section 2 details the commencement of certain provisions. Section 3 repeals a specific section of the Principal Act. Section 4 amends the definition of "bank" by removing the Papua and New Guinea Development Bank from the definition. Section 5 revises the geographical application of the Act to include all Australian territories. Section 6a introduces a mechanism for the Treasurer to declare the cessation of the Act's application to external territories through a notice in the Gazette. The Banking Act 1973 imposes specific obligations on the parties and entities it governs. Section 6a allows the Treasurer to declare the cessation of the Act's application to specified territories, thereby limiting the scope of the Act's operation. This section also ensures that references to territories in the Act do not include those territories where the Act no longer applies. The Act amends various definitions and provisions within the Principal Act to remove references to Papua and New Guinea and adjust other definitions and application scopes. The Act outlines specific consequences for non-compliance with its provisions. While the Act itself does not explicitly state penalties for breaches, the broader legislative framework may impose penalties for non-compliance with banking regulations. The penalties for breaches of related banking laws can include fines and imprisonment, depending on the severity of the breach and the relevant provisions of the broader legislative framework. For instance, penalties for breaches of other banking-related laws can range from substantial fines to imprisonment for serious violations. It is important to consult the relevant sections of other applicable laws for specific penalty details.

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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.