Overview

The Commonwealth Securities (Treasury Portfolio Agency) (Consequential) Instrument 2023 (the Instrument) was enacted to repeal the Directions Relating to Commonwealth Borrowing, Securities Lending and the Investment of Public Money 2008. This legislative instrument was introduced to streamline and modernise the existing legal framework governing Commonwealth borrowing and securities lending, replacing the outdated 2008 Directions with the more recent Commonwealth Securities (Treasury Portfolio Agency) Delegations 2023. The Instrument was issued under the authority of the Treasurer, pursuant to Sections 51JA of the Commonwealth Inscribed Stock Act 1911 and Section 5E of the Loans Securities Act 1919, and it is exempt from disallowance under section 44 of the Legislation Act 2003 as it repeals a direction by a Minister to a person. The Instrument commenced on the same day as Part 2 of the Commonwealth Securities (Treasury Portfolio Agency) Delegations 2023, which was the 21st day after the Commonwealth Inscribed Stock (Treasurer) Delegations 2023 were registered on the Federal Register of Legislation.

Scope and Application

The Commonwealth Securities (Treasury Portfolio Agency) (Consequential) Instrument 2023 amends and repeals previous instruments under the authority of the Commonwealth Inscribed Stock Act 1911 and the Loans Securities Act 1919. This legislative instrument applies to the Treasurer and their delegates who are involved in the borrowing of money and the management of securities on behalf of the Commonwealth. It outlines the manner in which these powers should be exercised and specifies the types of collateral required for securities lending arrangements. The Instrument repeals the Directions Relating to Commonwealth Borrowing, Securities Lending and the Investment of Public Money 2008, replacing them with the Commonwealth Securities (Treasury Portfolio Agency) Delegations 2023. It is a minor and machinery-based instrument exempt from disallowance and does not require consultation due to its nature. The Instrument came into effect on the same day as Part 2 of the Commonwealth Securities (Treasury Portfolio Agency) Delegations 2023, which is 21 days after the Commonwealth Inscribed Stock (Treasurer) Delegations 2023 were registered on the Federal Register of Legislation.

Key Provisions

The Commonwealth Securities (Treasury Portfolio Agency) (Consequential) Instrument 2023 (the Instrument) is crafted to repeal the Directions Relating to Commonwealth Borrowing, Securities Lending and the Investment of Public Money 2008 (the 2008 Directions). This change is effective under the authority granted by the Commonwealth Inscribed Stock Act 1911 (CIS Act) and the Loans Securities Act 1919 (LS Act), specifically under sections 51JA of the CIS Act and 5E of the LS Act. These sections empower the Treasurer to issue directions concerning the manner in which the power to borrow money on behalf of the Commonwealth should be exercised, and the types of collateral required for securities lending arrangements. The Instrument introduces the Commonwealth Securities (Treasury Portfolio Agency) Delegations 2023, which replace the 2008 Directions. It is made under the Legislation Act 2003 and is considered a legislative instrument. According to section 33(3) of the Acts Interpretation Act 1901, the power to make such an instrument includes the ability to repeal, rescind, revoke, amend, or vary any instrument of a legislative or administrative character. Notably, this Instrument is exempt from disallowance as per section 44 of the Legislation Act 2003, since it repeals a direction by a Minister to a person, as outlined in section 9 of the Legislation (Exemptions and Other Matters) Regulation 2015. The Instrument's commencement is synchronized with the commencement of Part 2 of the Commonwealth Securities (Treasury Portfolio Agency) Delegations 2023, which is 21 days after the Commonwealth Inscribed Stock (Treasurer) Delegations 2023 were registered on the Federal Register of Legislation. Entities governed by the Instrument, primarily the Treasurer and the relevant delegates, are required to adhere to the new delegations and directions set out in the Commonwealth Securities (Treasury Portfolio Agency) Delegations 2023. These obligations encompass ensuring that all borrowing activities are conducted in accordance with the specified delegations, and that all securities lending arrangements meet the collateral requirements outlined in the new legislation. Additionally, the Treasurer must issue appropriate directions under the updated legal framework, ensuring that these are consistently applied and documented as required. Failure to comply with the provisions of the Instrument and the associated delegations may result in significant consequences. While the explanatory statement does not detail specific offences or penalties, breaches of legislative instruments in Australia generally attract civil or criminal penalties, depending on the nature and severity of the breach. These penalties can range from fines to more severe sanctions, including imprisonment for criminal offences. The exact penalties would be determined based on the specific context of the breach and the provisions of the applicable acts under which the Instrument operates.