Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Act 2019

Administered by Department of Foreign Affairs and Trade

Legislation au C2019A00033 In force Act

Legislation content

 

 

 

 

 

 

Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Act 2019

 

No. 33, 2019

 

 

 

 

 

An Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Export Finance and Insurance Corporation Act 1991

 

 

 

 

Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Act 2019

No. 33, 2019

 

 

 

An Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes

[Assented to 5 April 2019]

The Parliament of Australia enacts:

1  Short title

  This Act is the Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Act 2019.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

The day after this Act receives the Royal Assent.

6 April 2019

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

 

Export Finance and Insurance Corporation Act 1991

1  Title

Omit “by the provision of insurance and financial services and products”, substitute “and overseas infrastructure development”.

2  Subsection 3(1)

Insert:

ADI has the same meaning as in the Banking Act 1959.

Note: ADI is short for authorised deposit‑taking institution.

Australian benefit means a benefit that flows (whether directly or indirectly) from overseas to:

 (a) Australia; or

 (b) a person carrying on business or other activities in Australia.

EFIC’s overseas infrastructure financing functions means the functions set out in paragraphs 7(1)(dd) and (de).

overseas infrastructure development means the development or enhancement of infrastructure that will be, or is, located or used wholly or substantially outside Australia.

overseas infrastructure financing means lending money to support overseas infrastructure development, if EFIC reasonably believes that lending the money is likely to result in an Australian benefit.

Note: Lending money includes providing finance, or providing a financial accommodation, in any form: see subsection (2).

3  Paragraph 7(1)(b)

Omit “banks”, substitute “ADIs”.

4  After paragraph 7(1)(dc)

Insert:

 (dd) to engage in overseas infrastructure financing under section 23A;

 (de) to encourage and facilitate overseas infrastructure financing by:

 (i) giving guarantees under section 18A; and

 (ii) encouraging ADIs, and other financial institutions, carrying on business in Australia to engage in, or assist in, overseas infrastructure financing; and

 (iii) providing information and advice to any person regarding overseas infrastructure financing;

5  At the end of section 8

Add:

EFIC’s overseas infrastructure financing functions

 (4) EFIC is to perform EFIC’s overseas infrastructure financing functions in such a manner as EFIC reasonably believes is likely to result in the maximum Australian benefits.

 (5) Subsection (1) and subparagraph (2)(b)(i) do not apply in relation to EFIC’s overseas infrastructure financing functions.

6  After section 18

Insert:

18A  Guarantees to co‑lenders in relation to overseas infrastructure development

  If, for the purpose of supporting overseas infrastructure development:

 (a) EFIC has lent, or proposes to lend, money under section 23A to a person; and

 (b) another person (the co‑lender), by arrangement with EFIC, has also lent, or proposes to lend, money to that person, or to another person;

EFIC may guarantee to the co‑lender the repayment of the whole or any part of the money lent, or to be lent, by the co‑lender and the payment of the whole or a part of any interest or other charges that may become payable to the co‑lender in respect of the money lent, or to be lent, by the co‑lender.

7  At the end of subsection 23(1)

Add:

Note: EFIC’s power under subsection (1) to lend money includes the power to provide finance, or to provide a financial accommodation, in any form: see subsection 3(2).

8  At the end of Part 4

Add:

23A  Loans to support overseas infrastructure development

 (1) EFIC may lend money for the purpose of supporting overseas infrastructure development.

Note: EFIC’s power under subsection (1) to lend money includes the power to provide finance, or to provide a financial accommodation, in any form: see subsection 3(2).

 (2) The money may be lent to such person or persons as EFIC thinks appropriate.

 (3) However, EFIC must not lend money under this section unless EFIC reasonably believes that lending the money is likely to result in an Australian benefit.

Note: See also subsection 8(4).

9  After subsection 27(4)

Insert:

 (4A) The Minister may approve of EFIC making a loan under section 23A in respect of overseas infrastructure development if the Minister is satisfied that it is in the national interest that EFIC make the loan in respect of the development.

10  Paragraph 54(8)(a)

Omit “$200,000,000”, substitute “$1,200,000,000”.

11  At the end of subsection 67(1)

Add “or in relation to overseas infrastructure development”.

12  Subsection 67(2)

After “eligible export transaction”, insert “or in connection with overseas infrastructure development”.

13  Subsection 81(1)

Omit “or under the acronym EFIC”, substitute “, under the acronym EFIC or under the name “Export Finance Australia””.

14  Subsection 81(2)

Omit “or the acronym EFIC” (first occurring), substitute “, the acronym EFIC, the name “Export Finance Australia””.

15  Subsection 81(2)

Omit “or the acronym EFIC” (second occurring), substitute “, the acronym EFIC or the name “Export Finance Australia””.

16  Subsections 81(3) and (4)

Repeal the subsections, substitute:

 (3) Nothing in subsection (2) applies to the use of a name or acronym (the protected name or acronym) by a person in a particular manner if:

 (a) to the extent that subsection (2) applies in relation to the name of EFIC or the acronym EFIC—immediately before the commencement of this Act, the person was using the protected name or acronym in good faith in that manner; or

 (b) to the extent that subsection (2) applies in relation to the name “Export Finance Australia”—immediately before the commencement of this paragraph, the person was using the protected name or acronym in good faith in that manner.

 (4) Nothing in subsection (2) affects rights conferred by law in relation to the use of a name or acronym, or the use of the name or acronym in pursuance of such a right, if:

 (a) to the extent that subsection (2) applies in relation to the name of EFIC or the acronym EFIC—the rights were in existence immediately before the commencement of this Act; or

 (b) to the extent that subsection (2) applies in relation to the name “Export Finance Australia”—the rights were in existence immediately before the commencement of this paragraph.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 February 2019

Senate on 2 April 2019]

 

(3/19)

 

Overview

The Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Act 2019 was enacted by the Parliament of Australia to amend the Export Finance and Insurance Corporation Act 1991, thereby enhancing the capacity of the Export Finance and Insurance Corporation (EFIC) to support overseas infrastructure financing activities. This Act was introduced to address the need for a more robust framework to facilitate infrastructure development outside Australia, while ensuring that such developments yield benefits to Australia. The policy objective underpinning this legislation is to encourage Australian participation in global infrastructure projects, thereby fostering economic growth and strengthening international relationships. By amending the existing Act, the legislation expands the scope of EFIC’s functions to include overseas infrastructure financing, providing a clearer pathway for EFIC to engage in activities that are likely to result in Australian benefits. The Act introduces several key amendments, including the expansion of EFIC’s functions to explicitly encompass overseas infrastructure financing, the ability to provide guarantees to co-lenders involved in such projects, and the establishment of a framework for the Minister to approve loans that are deemed to be in the national interest. Additionally, the Act raises the financial limit for EFIC’s activities and introduces a new name, “Export Finance Australia,” alongside the existing acronym, EFIC, to better reflect its broadened role. The overall aim is to better position EFIC to support Australian businesses and interests in international infrastructure markets, thus contributing to the nation's economic and strategic objectives.

Scope and Application

The Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Act 2019 amends the Export Finance and Insurance Corporation Act 1991 to expand the scope and functions of the Export Finance and Insurance Corporation (EFIC). The Act applies to EFIC, which is an instrumentality of the Australian government, and seeks to enhance its role in facilitating overseas infrastructure financing. This includes enabling EFIC to engage in overseas infrastructure financing through lending and providing guarantees to co-lenders, provided that such activities are likely to result in an Australian benefit. The amended Act allows EFIC to lend money to support overseas infrastructure development and to offer guarantees to co-lenders involved in such projects, thereby encouraging participation in overseas infrastructure financing by Australian financial institutions. The Act also updates the name and acronym of EFIC to "Export Finance Australia" while ensuring that any existing rights related to the use of the former names or acronyms are preserved. Geographically, the Act operates within the Commonwealth of Australia, extending EFIC's functions to include international activities that benefit Australia. The amended provisions came into effect on 6 April 2019, the day after the Act received Royal Assent. The Act does not explicitly state exclusions, exemptions, or thresholds, but it does provide that the Minister may approve loans under the new provisions if they are deemed to be in the national interest. This legislative amendment broadens the scope of EFIC's activities and seeks to position Australia as a key player in international infrastructure financing.

Key Provisions

The Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Act 2019 amends the Export Finance and Insurance Corporation Act 1991 to expand the scope and functions of the Export Finance and Insurance Corporation (EFIC). This Act introduces new provisions to enable EFIC to engage in overseas infrastructure financing, which is defined as lending money to support the development or enhancement of infrastructure located or used outside Australia, provided that EFIC reasonably believes this lending will result in an Australian benefit (section 3). The Act further clarifies that authorised deposit-taking institutions (ADIs) have the same meaning as in the Banking Act 1959, and that Australian benefit refers to any benefit flowing from overseas to Australia or a person conducting business or activities in Australia (section 3). The Act imposes several obligations on EFIC. It mandates that EFIC engage in overseas infrastructure financing in a manner that EFIC reasonably believes will result in the maximum Australian benefits (section 4(4)). EFIC is also authorised to provide guarantees to co-lenders in relation to overseas infrastructure development, to encourage and facilitate such financing by giving guarantees, encouraging ADIs and other financial institutions to engage in or assist with overseas infrastructure financing, and by providing information and advice (sections 18A and 7(1)(dd)-(de)). Additionally, EFIC can lend money to support overseas infrastructure development, but only if it reasonably believes that such lending will result in an Australian benefit (section 23A). The Minister’s approval is required for loans made under section 23A if it is in the national interest (section 23(1)). The Act also addresses the legal implications of EFIC's expanded functions. It allows EFIC to use the name "Export Finance Australia" alongside its acronym, and it provides protections for persons who were using the name or acronym in good faith before the commencement of the Act (section 81). There are no explicit offences or penalties mentioned within the provisions of this Act; however, any breaches of the conditions or obligations imposed by the amended Act could potentially lead to civil or administrative actions under the Export Finance and Insurance Corporation Act 1991 or other relevant legislation.

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International Trade Law
Instrument
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.