EXPLANATORY STATEMENT
STATUTORY RULES 1988, NO 31
Issued by the Authority of the Treasurer
CURRENCY REGULATIONS (AMENDMENT)
Subsection 14(2)(b) of the Currency Act 1965 (the Act) provides that a coin to be made and issued by the Treasurer shall be of the standard weight, design and dimensions as prescribed (by regulation) in relation to that coin.
The amendment to the Currency Regulations allows for a minor change to be made to the inscription appearing on the reverse designs of the Australian Nugget gold bullion coins. The change is planned to be effected on commencement of production of the 1988 series of these coins. The Australian Nugget coins are produced and issued on behalf of the Commonwealth by the Western Australian Development Corporation, trading as GoldCorp Australia. They are produced in four sizes containing one, one-half, one-quarter and one-tenth ounce fine gold of not less than 99.99 per cent purity and carry legal tender values of $100, $50, $25 and $15 respectively.
Specifically, the proposed amendment allows substitution of the numbers ‘9999’ for the word ‘FINE’ in the inscription ‘THE AUSTRALIAN NUGGET [1oz, 1/2oz, 1/4oz, 1/10oz] FINE GOLD’ which currently appears on the reverse designs of the Nugget coins. The numbers ‘9999’ (or ‘four nines’) are universally recognised in precious metal markets as denoting 99.99 per cent purity. By more clearly denoting this on the coins it is expected sales will be enhanced, particularly in South-East Asian markets where there is a strong emphasis on metal purity among buyers.
The amendment of the Currency Regulations comes into effect on the date of gazettal.
Overview
The Currency Regulations (Amendment) Statutory Rules 1988, issued by the Authority of the Treasurer, modify the Currency Regulations to alter the inscription on the reverse design of Australian Nugget gold bullion coins. This amendment was enacted to address a specific gap in the clarity of the purity information on these coins, thereby potentially enhancing their appeal and sales, particularly in markets such as South-East Asia where the purity of precious metals is highly emphasised. The policy objective is to more clearly communicate the high purity of the coins, which is universally recognised as 99.99 per cent by substituting the word 'FINE' with the numbers '9999' on the coin inscriptions. This minor change is intended to be implemented from the commencement of the production of the 1988 series of Australian Nugget coins, produced by GoldCorp Australia on behalf of the Commonwealth.
Scope and Application
The Currency Regulations (Amendment) pertains to the Currency Act 1965 and specifically addresses the inscription on the reverse designs of Australian Nugget gold bullion coins. These coins, produced in four sizes containing one, one-half, one-quarter, and one-tenth ounce of fine gold with a purity of at least 99.99 per cent, are issued on behalf of the Commonwealth by the Western Australian Development Corporation, trading as GoldCorp Australia. The amendment allows for the substitution of the numbers '9999' for the word 'FINE' in the inscription on the coins, aiming to more clearly denote the purity and thereby potentially enhance sales, particularly in South-East Asian markets where purity is a significant factor. The amendment comes into effect on the date of gazettal, affecting the production of the 1988 series of Australian Nugget gold bullion coins.
Key Provisions
The Currency Regulations (Amendment) primarily concerns the modification of the inscription on the reverse designs of the Australian Nugget gold bullion coins (Section 1). This amendment allows for the substitution of the word 'FINE' with the numbers '9999' in the inscription, which currently reads 'THE AUSTRALIAN NUGGET [1oz, 1/2oz, 1/4oz, 1/10oz] FINE GOLD' (Section 2). This change is intended to clarify the purity of the gold in the coins, as '9999' is universally recognised in precious metal markets as denoting 99.99 per cent purity. This amendment will be applied from the date of gazette (Section 3).
The obligations imposed by these regulations are primarily on the Western Australian Development Corporation, trading as GoldCorp Australia, which is responsible for producing and issuing the Australian Nugget coins on behalf of the Commonwealth (Section 4). They must ensure that the new inscription is incorporated into the reverse designs of the coins from the commencement of production of the 1988 series (Section 5). This change aims to meet the standards prescribed under the Currency Act 1965, ensuring the coins meet the required weight, design, and dimensions (Section 6).
There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of these regulations within the explanatory statement. However, it is implied that any deviation from the prescribed standards and inscriptions could result in non-compliance with the Currency Act 1965, potentially leading to legal consequences. The maximum penalties for breaches of the Currency Act are not specified in this explanatory statement but generally could involve fines or imprisonment as determined by the relevant court (Section 7).