EXPLANATORY STATEMENT
STATUTORY RULES 1986, NO 358
Issued by the Authority of the Treasurer
CURRENCY REGULATIONS (AMENDMENT)
Paragraph 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. In addition, sub-section 14(3) provides that in making a coin, a remedy in respect of weight is allowable as prescribed.
On 9 August 1985 the Treasurer announced that the Government had given its in-principle approval to a request by the Premier of Western Australia to allow his Government, on behalf of the Commonwealth, to produce and issue gold bullion coins recognised as legal tender under the Act. Following consultations between the two Governments on issues raised by the proposal, agreement has now been reached on the details of a gold bullion coin program.
The program consists of legal tender gold bullion coins comprised of one, one-half, one-quarter and one-tenth ounce fine gold of not less than 99.99 per cent purity. The coins will be legal tender for the values of $100, $50, $25 and $15 respectively. As is the nature of gold bullion coins, however, their price will be determined by the ruling world price of gold plus a premium expressed as a percentage of that price.
The obverse side of all four coins will carry the effigy of Her Majesty, Queen Elizabeth II. The reverse side designs will feature representations of large gold nuggets that have been discovered in Australia and which provide the basis of the name under which the coins are to be known, ‘The Australian Nuggets’.
The amendments of the Currency Regulations prescribe the design details, composition, physical characteristics and remedy in respect of weight of the coins pursuant to paragraph 14 (2) (b) and section 14 (3) respectively of the Act.
The amendments of the Currency Regulations have effect on and after 12 December 1986.
Overview
The Currency Regulations (Amendment) Statutory Rules 1986, No. 358, issued under the authority of the Treasurer, amend the Currency Regulations to address the introduction of a new series of gold bullion coins. Enacted in 1986, these regulations were introduced to facilitate the production and issuance of gold bullion coins by the Government of Western Australia on behalf of the Commonwealth, thereby expanding the range of legal tender coins under the Currency Act 1965. This initiative was in response to a request by the Premier of Western Australia, approved in principle by the Government in August 1985, to issue gold bullion coins of various weights and values. The primary policy objective was to provide a new form of legal tender, enhancing the diversity of currency available in the Australian market and potentially attracting interest from collectors and investors.
Scope and Application
The Currency Regulations (Amendment) issued under the Currency Act 1965 pertains to the production and issuance of gold bullion coins recognised as legal tender. This Act applies to the federal government, specifically the Treasurer, who is responsible for making and issuing coins that meet the prescribed standards in terms of weight, design, and dimensions. The scope of these regulations includes the production of gold bullion coins in specific weights and fineness, as well as their legal tender values. These coins will bear the effigy of Her Majesty, Queen Elizabeth II, on the obverse side and feature representations of Australian gold nuggets on the reverse side, collectively named ‘The Australian Nuggets’. The regulations extend nationally across Australia, covering both Commonwealth and state jurisdictions, although the initiative was a collaborative effort between the federal government and the Government of Western Australia. There are no stated exclusions or exemptions within the text provided, and the application of these regulations is limited to the specifics of the gold bullion coin program as outlined. Any further elaboration or restrictions on the application of these regulations would be detailed in subordinate instruments.
Key Provisions
The Currency Regulations (Amendment) establish specific requirements for the design, composition, and physical characteristics of the gold bullion coins to be produced under the government program. Section 14(2)(b) of the Currency Act 1965 mandates that any coin made and issued by the Treasurer must meet prescribed standards in terms of weight, design, and dimensions. These regulations detail the allowable weight variations under section 14(3). The coins, which will be legal tender with values of $100, $50, $25, and $15, will feature one, one-half, one-quarter, and one-tenth ounce of fine gold with a purity of no less than 99.99%.
The regulations impose certain obligations on the parties involved in the production and issuance of these coins. The obverse side of each coin must display the effigy of Her Majesty, Queen Elizabeth II. The reverse side will feature representations of large gold nuggets, linking the coins to the name "The Australian Nuggets". The physical dimensions, weight, and gold purity of the coins are strictly prescribed, ensuring uniformity and reliability in their market value.
Failure to comply with the stipulations of these regulations could result in both civil and criminal consequences. While the specific penalties are not detailed in the explanatory statement, breaches of the Currency Act 1965 typically incur severe penalties, which may include fines and imprisonment, given the sensitive nature of currency regulation. The precise penalties would depend on the severity and intent behind the breach, as well as any previous infractions.