Commonwealth Banks Act (No. 2) 1973

Overview

The Commonwealth Banks Act (No. 2) 1973 was enacted to amend the Commonwealth Banks Act 1959–1968, as previously amended by the Commonwealth Banks Act 1973. This Act was introduced to address specific gaps and areas needing clarification in the regulation of banks within Australia. It was passed by the Queen, the Senate, and the House of Representatives of Australia and received Royal Assent on 26 October 1973. The primary objective of this legislation was to refine and update the legal framework governing banks, ensuring it remains relevant and effective. The Act makes several formal amendments, including changes to the numerical expressions, removal of certain phrases, and adjustments to definitions and references, aiming to streamline the legislation and enhance its clarity and enforceability.

Scope and Application

The Commonwealth Banks Act (No. 2) 1973 amends the Commonwealth Banks Act 1959–1968 and extends its application to all territories, including the external territories. The Act applies to banks authorised under the Commonwealth Banks Act and their associated entities, governing their conduct and operations. The Act's jurisdiction spans across Commonwealth territories, and its application can be ceased for specified external territories through a notice published in the Gazette by the Treasurer. The Act does not specify any exclusions or exemptions, though certain provisions may be subject to further regulation through subordinate instruments. The formal amendments detailed in the Schedule include changes to various sections of the Principal Act, primarily involving the substitution of numerical expressions and the removal of certain words to streamline the text.

Key Provisions

The Commonwealth Banks Act (No. 2) 1973 primarily serves to amend the Commonwealth Banks Act 1959–1968 (referred to as the Principal Act). Section 1 details the citation of the Act and specifies the Principal Act as amended by this Act may be cited as the Commonwealth Banks Act 1959–1973. Section 2 declares the Act shall come into operation on the day it receives Royal Assent. Section 3 repeals section 3 of the Principal Act, while section 4 repeals section 5 of the Principal Act and substitutes new provisions regarding the application of the Act to the Territories, including the cessation of application to an external Territory through a notice published by the Treasurer in the Gazette (section 5a). The Act imposes specific obligations on the parties and entities it governs. Under section 5a, the Treasurer is empowered to declare via a notice in the Gazette that the Act will cease to apply to a specified external Territory on a date specified in the notice. This amendment ensures that the Act’s application can be adjusted to reflect changes in the administrative or political status of territories. Additionally, the formal amendments outlined in the Schedule affect various sections of the Principal Act, primarily by converting written numbers to figures and removing redundant phrases for clarity and consistency. Breaches of the provisions set forth in the Commonwealth Banks Act (No. 2) 1973 may result in civil or criminal consequences, although the specific penalties are not detailed within the text of this Act. Generally, failure to comply with banking regulations can result in fines, sanctions, or other legal actions depending on the nature and severity of the breach. The Act, however, does not explicitly state the maximum penalties for non-compliance; these would typically be found in the Principal Act or other related legislation. Compliance with the Act is crucial to avoid potential legal repercussions, which may include financial penalties, enforcement actions by regulatory authorities, or other civil and criminal liabilities.