Explanatory Statement
Statutory Rules 1988, No. 137
Issued by the Authority of the Treasurer
Currency Regulations (Amendment)
Paragraph 14(2)(a) of the Currency Act (the Act) provides that a coin to be made and issued by the Treasurer shall be of the standard composition specified, by regulation, in the Schedule to the Act in relation to that coin; subsection 13(3) provides that more than one standard composition or weight may be specified in relation to coins of a particular denomination. Paragraph 14(2)(b) provides that a coin shall be of the standard weight, design and dimensions as prescribed in relation to that coin; subsection 14(2A) provides that more than one standard weight, design or set of dimensions may be prescribed in relation to that coin.
It is proposed that a $2 sterling silver coin in proof condition be issued in conjunction with the release of the $2 circulating coin on 20 June 1988. It is also proposed that a four coin ($5, $2, $1 and 50 cent) Bicentennial commemorative collector set, also in sterling silver and in proof quality, be issued in September 1988. These coins would have the same designs, diameters and thicknesses as the base alloy coins of the same denomination but their alloy compositions, standard weights and remedies in respect of weight would differ. The silver coins would be produced and marketed as premier collector items.
The design of the 1988 $200 gold coin will feature a special Bicentennial commemorative design depicting Governor Arthur Phillip’s arrival at Sydney Cove in 1788. This design will complement the design of the 1987 $200 gold coin which depicted Governor Phillip set against a theme of the departure of the First Fleet from Portsmouth in 1787.
The amendments to the Currency Regulations (the Regulations) authorise the issue of the $5, $2, $1 and 50 cent sterling silver coins and the design of the 1988 $200 gold coin. Specifically, regulation 1 of the Currency Regulations (Amendment) substitutes a new regulation 3 in the Regulations prescribing that the standard weight, diameter, thickness and remedy in respect of weight in relation to each coin, be specified in the Schedule to the Regulations.
Amending regulation 2 prescribes the reverse design of the $200 gold coin. Amending regulation 3 repeals regulations 5 and 6 of the Regulations and amending regulation 4 prescribes in the Schedule to the Act the standard composition for the $5, $2, $1 and 50 cent silver coins.
Finally, the amending regulation 5 substitutes a new Schedule in the Regulations.
Overview
The Currency Regulations (Amendment) Statutory Rules 1988, No. 137, issued by the authority of the Treasurer, were enacted to facilitate the issuance of special commemorative coins to mark significant historical events. This legislative measure aimed to address the gap in the existing Currency Act by allowing for the specification of unique compositions, weights, designs, and dimensions for commemorative coins. The objective of the amendments was to enable the production and marketing of premier collector items such as the $2 sterling silver coin and a four-coin Bicentennial commemorative set in proof quality, alongside the release of circulating coins. Additionally, the regulations permitted the issuance of a $200 gold coin featuring a special Bicentennial design commemorating Governor Arthur Phillip’s arrival at Sydney Cove in 1788. The Currency Regulations (Amendment) thus provided the necessary framework to legally produce and issue these commemorative coins, aligning with the policy objective of celebrating Australia's heritage through numismatic expressions.
Scope and Application
The Currency Regulations (Amendment) Statutory Rules 1988, No. 137, issued by the authority of the Treasurer, amends the Currency Regulations to facilitate the issuance of special commemorative coins by the Commonwealth of Australia. These amendments apply to the issuance of specific coins, namely a $2 sterling silver coin in proof condition, a four-coin ($5, $2, $1 and 50 cent) Bicentennial commemorative collector set in sterling silver, and a 1988 $200 gold coin featuring a special Bicentennial commemorative design. These coins are to be produced and marketed as premier collector items and will have distinct alloy compositions, standard weights, and remedies in respect of weight compared to their base alloy counterparts. The amendments extend to the specifications of the coins’ weights, diameters, thicknesses, and design as prescribed in the Schedule to the Regulations. The regulations also clarify that more than one standard composition, weight, design, or set of dimensions may be specified for coins of the same denomination. The regulations do not explicitly state any exclusions or exemptions, but their application is confined to the specified coins and their production. The regulations do not extend beyond the Commonwealth of Australia, but their reach is limited to the specified coins and their production within the scope of the Currency Act.
Key Provisions
The proposed amendment to the Currency Regulations (Amendment) Statutory Rules 1988, No. 137, focuses on the issuance of special commemorative coins and the design of the 1988 $200 gold coin. According to the explanatory statement, regulation 1 replaces regulation 3 in the Currency Regulations, which now mandates the specification of the standard weight, diameter, thickness, and remedy in respect of weight for each coin in the Schedule to the Regulations (section 1). This amendment allows for the issuance of the $5, $2, $1 and 50 cent sterling silver coins, which will have the same designs and physical dimensions as their base alloy counterparts but will differ in alloy composition and standard weight.
Regulation 2, as amended, pertains to the design of the 1988 $200 gold coin, which will feature a special Bicentennial commemorative design depicting Governor Arthur Phillip's arrival at Sydney Cove in 1788. This design complements the 1987 $200 gold coin, which featured Governor Phillip against a theme of the departure of the First Fleet from Portsmouth in 1787 (section 2). Regulation 3 repeals regulations 5 and 6 of the Currency Regulations, thereby removing outdated specifications that are no longer applicable, and regulation 4 amends the Schedule to the Act to include the standard composition for the $5, $2, $1 and 50 cent silver coins (section 3).
The obligations imposed by these regulations on the parties involved include the adherence to the new specifications for the coins’ composition, weight, diameter, thickness, and design. The Treasurer, in exercising their authority under the Currency Act, must ensure that the coins meet the newly prescribed standards and are produced and marketed as premier collector items. The regulations also mandate that the reverse design of the 1988 $200 gold coin be consistent with the specified commemorative theme.
In terms of offences and penalties, the explanatory statement does not explicitly detail the consequences for non-compliance with the new regulations. However, under the Currency Act, breaches of the regulations could potentially lead to criminal or civil penalties. For instance, under section 16 of the Currency Act, it is an offence to make or issue coins that do not comply with the specifications prescribed by regulation. Such offences could attract penalties including fines or imprisonment, with the severity of the penalty depending on the nature and extent of the breach. The maximum penalties, as stipulated in the Act, may include fines of up to $126,000 for corporations and up to $25,200 for individuals, along with potential imprisonment terms for serious offences.