Currency Regulations (Amendment)

Overview

The Currency Regulations (Amendment) 1991 No. 149, issued under the authority of the Treasurer, amends the Currency Regulations to address a specific issue concerning the edging of coins produced by Gold Corporation (GoldCorp), a statutory authority of the Western Australian Government. Enacted by the Australian Parliament, these amendments were introduced to ensure compliance with the bullion coin agreements and to rectify a problem identified in the initial production of silver coins, where the previously prescribed fully milled edge required revision to an interrupted milling. The policy objective behind these amendments is to maintain the integrity and standard of legal tender coins by ensuring their specifications, including the design and dimensions, are accurately prescribed and adhered to as required by section 14(2)(b) of the Currency Act 1965.

Scope and Application

The Currency Regulations (Amendment) 1991 No. 149 applies to the Commonwealth Treasurer, the Gold Corporation, a statutory authority of the Western Australian Government, and any entities authorised to produce legal tender precious metal coins. This amendment specifically addresses the production and issuance of the Large Bullion Coin Series, which includes coins in gold, silver, and platinum of various weights. The Act extends its jurisdictional reach to the Commonwealth level, governing the standards for the design, weight, and dimensions of coins issued by the Treasurer. The amendment ensures that these coins comply with the Currency Act 1965, specifically Section 14(2)(b), which mandates the adherence to prescribed standards for coin issuance. The regulations also clarify and correct the specifications for the edging of the silver coins, transitioning from a fully milled edge to an interrupted milling, reflecting GoldCorp's production experience. This regulatory amendment does not introduce any exclusions or exemptions but ensures that the coins meet the legal standards set forth by the Currency Act.

Key Provisions

The Currency Regulations (Amendment) 1991 No. 149, under Section 14(2)(b) of the Currency Act 1965, introduces changes to the specifications for certain bullion coins to be issued by Gold Corporation (GoldCorp), a statutory authority of the Western Australian Government. These coins, which include two ounces, ten ounces and one kilogram weights in gold, silver, and platinum, have been subject to initial production challenges, specifically concerning the coin edging. As a result, the regulations revise the coin specifications to change the edging from fully milled to interrupted milling, as indicated in the schedule to the Currency Regulations. The primary obligation imposed by these regulations is on GoldCorp to ensure that the new specifications are adhered to in the production of the Large Bullion Coin Series. This includes revising the coin design to incorporate the new interrupted milling edging as prescribed. Such amendments are necessary to maintain the coins' compliance with the legal tender standards set out by the Currency Act 1965. GoldCorp must also ensure that these specifications are documented and communicated effectively to all parties involved in the minting and distribution of the coins. Failure to comply with the new specifications outlined in these regulations could result in significant legal and financial consequences. The Currency Act 1965 provides that coins not meeting the prescribed standards may be deemed unfit for circulation, potentially rendering them non-compliant with legal tender requirements. Although the regulations themselves do not explicitly state penalties for non-compliance, any breach of the Currency Act could lead to civil or criminal liability. Under Australian law, penalties for offences involving currency fraud or counterfeiting can be severe, potentially including substantial fines and imprisonment, depending on the nature and extent of the breach. These consequences underscore the importance of adherence to the precise specifications laid out in the amended regulations.