Banking exemption No. 1 of 2011

Administered by Department of the Treasury

Legislation au F2011L01146 Not in force Legislative Instrument

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as amended

made under subsection 11 (1) of the

Banking Act 1959

This compilation was prepared on 30 March 2012
taking into account amendments up to Banking exemption No. 2 of 2012

Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra

Banking exemption No. 1 of 2011

I, Charles Watts Littrell, a delegate of APRA, under subsection 11(1) of the Banking Act 1959 (the Act):

DETERMINE that in relation to the business, operations or activities of a Religious Charitable Development Fund (Fund) listed in the attached Schedule 1:

1. section 7 of the Act does not apply to a person who is a controlling entity of a Fund; and

2. section 8 of the Act does not apply to

(a) a Fund that is a body corporate; or

(b) a body corporate that is a controlling entity of a Fund.

This Determination is subject to the conditions specified in the attached Schedule 2.

This Determination expires at the end of 2 years from the date this Determination comes into effect.

Under subsection 12(1) of the Legislative Instruments Act 2003 (the LIA), this Determination comes into effect on the later of: (a) the first moment of the day following the day when it is registered under the LIA and (b) 27 June 2011.

Interpretation [see Note 1]

In this Notice

APRA means the Australian Prudential Regulation Authority.

controlling entity means a person or body corporate who or which is a trustee of, or otherwise concerned in the management of, a Fund.

Note 1 Under subsection 11(1) of the Act, APRA may, by order published in the Gazette, determine that all provisions (other than section 63) or specified provisions (other than section 63) of the Act do not apply to a person while the order continues in force.

Note 2 Under subsection 11(2) of the Act, an order under subsection 11(2) may be expressed to apply to a particular person or to a class of persons, may specify the period during which the order remains in force and may be made subject to conditions.

Note 3 Under subsection 11(3) of the Act, a person is guilty of an offence if the person does or fails to do an act and doing or failing to do that act results in a contravention of a condition to which an order under section 11 is subject (being an order that is in force and that applies to the person). The maximum penalty is 200 penalty units or, by virtue of subsection 4B(3) of the Crimes Act 1914 in the case of a body corporate, a penalty not exceeding 1,000 penalty units. By virtue of subsection 11(3A) of the Act, an offence against subsection 11(3) is an indictable offence. Under subsection 11(3B) of the Act, if a person commits an offence against subsection 11(3), the person is guilty of an offence against that subsection in respect of the first day on which the offence is committed and each subsequent day (if any) on which the circumstances that gave rise to the person committing the offence continue (including the day of conviction for any such offence or any later day).

Note 4 Under subsection 11(4) of the Act, APRA may, by order published in the gazette, vary or revoke an order under section 11.

Schedule 1 - Religious Charitable Development Funds

Anglican Funds - South Australia
Anglican Community Fund (Inc) (previously known as Anglican Deposit Fund Perth (Inc))
Anglican Development Fund – Gippsland
Anglican Development Fund (Diocese of Melbourne)
Anglican Development Fund (Diocese of Tasmania)
Anglican Development Fund Diocese of Bathurst
Anglican Development Fund Diocese of Canberra & Goulburn
Anglican Financial Services (ANFIN) (Diocese of Brisbane)
Anglican Managed Investments Fund Diocese of Bathurst
Anglican Savings and Development Fund Diocese of Newcastle
Archdiocese of Adelaide – Catholic Development Fund
Archdiocese of Brisbane – Archdiocesan Development Fund (or The Corporation of the Trustees of the Roman Catholic Archdiocese of Brisbane)
Archdiocese of Canberra and Goulburn – Catholic Development Fund (or The Trustees of the Roman Catholic Church for the Archdiocese of Canberra and Goulburn (ACT) & (NSW)
Archdiocese of Hobart - Catholic Development Fund
Archdiocese of Melbourne - Catholic Development Fund
Archdiocese of Perth - Catholic Development Fund
Archdiocese of Sydney - Catholic Development Fund (or The Trustees of the Roman Catholic Church for the Archdiocese of Sydney)
Armidale Diocesan Investment Group

Assemblies of God in Australia Ltd
Baptist Financial Services Australia Limited

Catholic Development Fund Diocese of Port Pirie

Centenary Development Foundation
Christian Outreach Centre
Churches of Christ Building Extension Mutual Fund Incorporated

Diocesan Development Fund – Anglican Diocese of Bendigo
Diocesan Development Fund (Diocese of Armidale)
Diocese of Ballarat – Catholic Development Fund
Diocese of Bathurst – Catholic Development Fund
Diocese of Broken Bay – Catholic Development Fund (or Trustees of the Roman Catholic Church for the Diocese of Broken Bay)
Diocese of Bunbury – Catholic Development Fund
Diocese of Cairns – Catholic Development Fund (or The Roman Catholic Trust Corporation for the Diocese of Cairns)
Diocese of Darwin – Diocesan Development Fund (or Catholic Church of the Diocese of Darwin Property Trust – Darwin Diocesan Development Fund)
Diocese of Lismore – Diocesan Investment Fund (or The Trustees of the Roman Catholic Church for the Diocese of Lismore)
Diocese of Maitland–Newcastle - Catholic Development Fund (or The Trustees of Church Property for the Diocese of Newcastle)
Diocese of Parramatta - Diocesan Development Fund
Diocese of Rockhampton - Diocesan Development Fund
Diocese of Sale - Catholic Development Fund
Diocese of Sandhurst – Diocesan Development Fund
Diocese of Toowoomba - Diocesan Development Fund
Diocese of Townsville - Diocesan Development Fund
Diocese of Wagga Wagga - Diocesan Provident Fund (or The Trustees of the Roman Catholic Church for the Diocese of Wagga Wagga)
Diocese of Wollongong – Catholic Development Fund
EFKS Financial and Investment Services
Glebe Income Accounts (Anglican Church Diocese of Sydney)

Lutheran Lay People's League of Australia Incorporated

Murray Anglican Development Fund
Riverina Anglican Development Fund
Stewards’ Foundation of Christian Brethren
Temple Society Australia

The Baptist Union of Queensland
The Churches of Christ Property Trust

The Corporate Trustees of the Diocese of Grafton – Grafton Diocese Investment Fund
The Properties Corporation of the Churches of Christ

The Uniting Church in Australia Property Trust (SA)
The Uniting Church Investment Service
UCA – Investment Fund (Presbytery of Canberra Region)
UCA Funds (incorporating UCA Cash Management Fund Limited, UCA Growth Fund Limited, UCA Funds Management Limited, the Development Fund, The Uniting Church in Australia Property Trust (Victoria) and the Funeral Fund)
Uniting Church in Australia Synod of Western Australia Uniting Church Investment Fund
Uniting Financial Services (incorporating The Uniting Church (NSW) Trust Association Limited, The Uniting Church in Australia Property Trust (NSW), the Funeral Fund and the Self-Help Fund)

Wangaratta Anglican Development Fund

Schedule 2 - Conditions

1. The Fund must be and continue to be:

(a) recognised at law as being formed for religious and charitable purposes stated in a trust deed, ordinance or other foundation document governing the Fund (Fund constitution); and

(b) limited to the purposes stated in the Fund constitution; and

2. The Fund’s financial products must have the sole or dominant intention of furthering the religious and charitable purposes of the Fund.

3. A copy of the Fund constitution setting out the Fund’s religious and/or charitable purpose/s must be available for inspection on request by APRA.

4. The Fund or its controlling entity must not offer via the Fund:

(a) cheque account facilities unless the account holder is:

(i) a body constituted by or under the authority of a decision of the central governing body of a related religious organisation; or

(ii) a body in relation to which the central governing body of a related religious organisation is empowered to make ordinances or other binding rules; or

(iii) a person acting as a trustee of a trust for or for the use, benefit or purposes of a related religious organisation; or

(iv) an employee of a body mentioned in subparagraphs (i) to (iii) above who receives their stipend or remuneration via an account of the Fund; or

(b) Electronic Funds Transfer at Point Of Sale (EFTPOS) facilities; or

5. The Fund or its controlling entity must in all cases ensure that advertising and marketing material of the Fund contains clear and prominent disclosures (the required disclosures) to the effect that:

(a) neither the controlling entity nor the Fund is prudentially supervised by APRA;

(b) contributions to the Fund do not obtain the benefit of the depositor protection provisions of the Banking Act 1959; and

6. The Fund or its controlling entity may advertise and market the Fund on-line or in print produced by or under the auspices of the controlling entity (or the religious institution that established the Fund). All advertising and marketing material of the Fund must contain the required disclosures outlined in condition 5.

Notes to the Banking exemption No. 1 of 2011

Note 1

The Banking exemption No. 1 of 2011 (in force under subsection 11 (1) of the Banking Act 1959) as shown in this compilation is amended as indicated in the Tables below.

Table of Instruments

Year and Number	Date of FRLI registration	Date of commencement	Application, saving or transitional provisions
Banking exemption No. 1 of 2011	22 June 2011 (see F2011L01146)	27 June 2011
Banking exemption No. 2 of 2011	3 Aug 2011 (see F2011L01596)	3 Aug 2011	—
Banking exemption No. 3 of 2011	20 Sept 2011 (see F2011L01926)	20 Sept 2011	—
Banking exemption No. 4 of 2011	17 Oct 2011 (see F2011L02078)	17 Oct 2011	—
Banking exemption No. 6 of 2011	21 Dec 2011 (see F2011L02771)	21 Dec 2011	—
Banking exemption No. 2 of 2012	30 Mar 2012 (see F2012L00722)	30 Mar 2012	—

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Schedule 1
Schedule 1..............	am. 2011 Nos. 2, 3, 4 and 6; 2012 No. 2

Overview

The Banking exemption No. 1 of 2011, enacted under the Banking Act 1959, was introduced to address a specific gap in the regulation of financial activities conducted by religious charitable development funds. The Act was enacted by the Parliament of Australia and aims to provide exemptions to certain provisions of the Banking Act for religious charitable development funds, ensuring they operate within the parameters of their charitable and religious purposes. This legislative instrument, issued by a delegate of the Australian Prudential Regulation Authority (APRA), exempts specified religious charitable development funds from certain banking regulations, provided they meet specific conditions related to their operations and financial activities. The exemptions are subject to the conditions outlined in Schedule 2, which include requirements for the funds to be recognised as entities formed for religious and charitable purposes, to be operated on a not-for-profit basis, and to have their financial products intended to further their religious and charitable purposes. The Banking exemption No. 1 of 2011, as amended, applies to the listed religious charitable development funds, granting them exemptions from certain banking provisions to allow them to operate in alignment with their charitable objectives while ensuring that they do not engage in activities that could expose them to undue financial risk. The exemptions are conditional and subject to review, with the determination coming into effect on the later of the registration date under the Legislative Instruments Act 2003 or 27 June 2011. This legislative measure reflects a policy objective to balance the need for financial regulation with the unique operational context of religious charitable entities.

Scope and Application

The Banking exemption No. 1 of 2011, as amended, made under subsection 11(1) of the Banking Act 1959, provides exemptions from certain provisions of the Act for Religious Charitable Development Funds (Funds) listed in Schedule 1. Specifically, this exemption exempts controlling entities of these Funds from the application of section 7 of the Act, and exempts the Funds themselves, if they are bodies corporate, or bodies corporate that are controlling entities of such Funds, from the application of section 8 of the Act. This exemption is subject to conditions specified in Schedule 2, which include requirements that the Fund must be recognised at law as being formed for religious and charitable purposes, must be operated not-for-profit, and must not offer certain financial services like cheque account facilities, EFTPOS, or ATM facilities. Additionally, the exemption requires that all advertising and marketing material must include clear disclosures that the Fund is not prudentially supervised by the Australian Prudential Regulation Authority (APRA) and that contributions do not receive the benefit of depositor protection provisions. This exemption is applicable nationally and is subject to a two-year duration, with the potential for APRA to vary or revoke the exemption. The exemption came into effect on 27 June 2011 and has been subject to amendments through subsequent legislative instruments.

Key Provisions

The main operative sections of the Banking exemption No. 1 of 2011, made under subsection 11(1) of the Banking Act 1959, specify that section 7 of the Act does not apply to a person who is a controlling entity of a Religious Charitable Development Fund (Fund), and section 8 of the Act does not apply to a Fund that is a body corporate or a body corporate that is a controlling entity of a Fund. This exemption is subject to conditions detailed in Schedule 2 of the legislation. These conditions include that the Fund must be recognised as formed for religious and charitable purposes, limited to these purposes, and operated not-for-profit. The Fund's financial products must also have the sole or dominant intention of furthering the religious and charitable purposes of the Fund. Furthermore, the Fund must not offer certain facilities such as cheque account facilities, EFTPOS facilities, or ATM facilities, unless specific criteria are met. Any advertising and marketing materials must contain clear and prominent disclosures that neither the Fund nor its controlling entity is prudentially supervised by APRA, contributions to the Fund do not benefit from the depositor protection provisions of the Banking Act 1959, and the Fund is designed for investors who wish to promote the charitable purposes of the Fund. The Act imposes several obligations on the parties and entities it governs. Firstly, the Fund must be recognised at law as being formed for religious and charitable purposes stated in its constitution and must be limited to these purposes. It must also be operated not-for-profit. Secondly, the Fund’s financial products must be designed with the sole or dominant intention of furthering the religious and charitable purposes of the Fund. Thirdly, a copy of the Fund’s constitution must be available for inspection by the Australian Prudential Regulation Authority (APRA) upon request. Additionally, the Fund or its controlling entity must ensure that any advertising and marketing materials contain specific disclosures, including that neither the Fund nor its controlling entity is prudentially supervised by APRA and that contributions to the Fund do not benefit from depositor protection provisions. The Fund is also prohibited from offering certain facilities such as cheque account facilities, EFTPOS facilities, or ATM facilities unless specific criteria are met. Any breach of the conditions specified in the exemption may result in serious consequences. Under subsection 11(3) of the Banking Act 1959, a person is guilty of an offence if they do or fail to do an act that results in a contravention of a condition to which the exemption is subject. The maximum penalty for an individual is 200 penalty units, while for a body corporate, the penalty can be up to 1,000 penalty units. An offence against subsection 11(3) is an indictable offence, meaning it can be prosecuted in a higher court. Furthermore, under subsection 11(3B) of the Act, if a person commits an offence against subsection 11(3), they are guilty of an offence for each day the contravention continues, including the day of conviction. This means that the penalties can accumulate over time if the breach persists.

Area of Law: Financial Law; Banking Law
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Licensing & Registration; Reporting & Disclosure Obligations

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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.

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