Explanatory Statement
Statutory Rules 1989, No 299
Issued by the Authority of the Treasurer
Currency Regulations (Amendment)
Paragraph 14(2)(a) of the Currency Act 1965 (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) of 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; subsection 14(2A) provides that more than one standard weight, design or set of dimensions may be prescribed in relation to that coin. In addition, sub-section 14(3) provides that in making a coin, a remedy in respect of weight is allowed.
On 29 June 1989, the Treasurer approved a new design theme for the Australian Nugget gold proof coins series commencing with the 1989 issue featuring Kangaroos. Gold Corporation has been appointed under an agreement with the Commonwealth to make and issue a series of Australian gold bullion coins called the Australian Nuggets. The Kangaroo theme replaces the earlier theme depicting twelve famous Australian gold nugget discoveries.
The 1989 Australian Nugget proof gold coins include, for the first time, a 1/20 oz coin which is legal tender for $5, in addition to the existing 1 oz, ½ oz, ¼ oz and 1/10 oz coins which have legal tender values of $100, $50, $25 and $15 respectively. As is the nature of gold proof coins, their price will be determined by the ruling world price of gold plus a premium expressed as a percentage of that price.
The new design for the reverse side of the 1989 coin features a red kangaroo, replacing the nugget theme. The Nugget theme depicted twelve famous gold nugget discoveries on the proof issues of the past three years. In all other respects the 1989 Australian Nugget proof gold coins are unchanged from the Australian Nugget proof gold coins for the past three years.
The obverse side of all five coins carries the traditional effigy of Her Majesty, Queen Elizabeth II.
The amendments of the Currency Regulations prescribe the design details of the four existing coins (1 oz, ½ oz, ¼ oz and 1/10 oz) pursuant to paragraphs 14(2)(b) and 14(2)(A). The amendments also prescribe the design, standard composition, physical characteristics and remedy in respect of weight of the new $5 coin pursuant to paragraphs 14(2)(a), 14(2)(b), and subsection 14(3).
Overview
The Currency Regulations (Amendment) Statutory Rules 1989, No 299, issued under the authority of the Treasurer, were enacted in 1989 to address the need for updating the design and specifications of Australian gold proof coins. This legislation sought to rectify the existing framework by providing more precise regulatory details for the composition, weight, design, and dimensions of coins as stipulated in the Currency Act 1965. The policy objective was to ensure that the coins meet the standard specifications and legal tender values as required by law while also introducing a new design theme for the Australian Nugget gold proof coins series. The introduction of the new Kangaroo theme replaced the previous theme of famous Australian gold nugget discoveries and included a new 1/20 oz coin with a legal tender value of $5, alongside the existing denominations. This amendment aimed to align the physical characteristics and legal status of the coins with contemporary standards and market conditions.
Scope and Application
The Currency Regulations (Amendment) Statutory Rules 1989, No 299, issued under the authority of the Treasurer, pertains to the Currency Act 1965. This legislation applies to coins that are made and issued by the Treasurer, encompassing the standard composition, weight, design, dimensions, and remedies in respect of weight as specified by regulation. The Act applies to the entire Commonwealth of Australia, setting the legal framework for the production and issuance of Australian coins by the Treasurer. These regulations particularly affect entities like Gold Corporation, which have been appointed by the Commonwealth to manufacture and issue series of Australian gold bullion coins, such as the Australian Nuggets. The amendments introduced by these regulations update the design details for existing coins and introduce new specifications for the newly minted 1/20 oz coin, aligning with the statutory requirements under the Currency Act. These regulations do not explicitly mention any exclusions or exemptions, though the scope of application is inherently limited to coins issued by the Treasurer within Australia.
Key Provisions
The key provisions of the Currency Regulations (Amendment) primarily address the specifications for the design, composition, and physical characteristics of coins to be issued by the Treasurer. Specifically, section 14(2)(a) of the Currency Act 1965 requires that any coin issued by the Treasurer must adhere to the standard composition specified by regulation. Section 14(2)(b) mandates that coins must meet the prescribed standard weight, design, and dimensions. These regulations are designed to ensure uniformity and quality in the coins issued, which is crucial for their legal tender status and public acceptance. Furthermore, section 14(3) allows for a remedy in respect of weight, providing a measure of flexibility in maintaining the integrity of the coin's specifications.
The obligations imposed by these regulations on parties such as Gold Corporation, which has been appointed to produce and issue the Australian Nugget gold bullion coins, are stringent. They must ensure that each coin meets the prescribed standards for composition, weight, design, and dimensions. For instance, the new 1/20 oz coin, legal tender for $5, must be crafted with the specified gold composition and weight, and feature the new red kangaroo design on the reverse. The obverse must carry the traditional effigy of Her Majesty, Queen Elizabeth II. Any deviation from these specifications could render the coins non-compliant with legal tender requirements.
Failure to comply with the Currency Regulations can result in significant penalties. While the exact penalties are not specified in the explanatory statement, breaches of such regulations typically fall under the purview of the Currency Act, which can impose substantial fines. Additionally, there may be civil and criminal consequences for issuing non-compliant coins, including the potential for legal action by the Commonwealth or affected parties. The severity of these penalties underscores the importance of adhering to the precise standards set forth by the regulations.