Gold-Mining Industry Assistance
No. 119 of 1968
An Act to amend the Gold-Mining Industry Assistance Act 1954–1966.
[Assented to 2 December 1968]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Gold-Mining Industry Assistance Act 1968.
(2.) The Gold-Mining Industry Assistance Act 1954–1966 is in this Act referred to as the Principal Act.
(3) The Principal Act, as amended by this Act, may be cited as the Gold-Mining Industry Assistance Act 1954–1968.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
3. Section 11 of the Principal Act is repealed and the following section inserted in its stead:—
Sales at prices in excess of Thirty-one dollars twenty-live cents per ounce.
“11.—(1.) Where—
(a) bullion or refined gold has been sold, whether by the producer referred to in the next succeeding paragraph or by another person, at a price in excess of a price based on a value of Thirty-one dollars twenty-five cents per ounce of fine gold;
(b) a producer has received, or is entitled to receive, moneys representing the amount of the excess or a share in that amount; and
(c) in the opinion of the Treasurer, the right of the producer to receive those moneys arose in relation to bullion produced by him in a year,
the subsidy otherwise payable in respect of bullion produced by the producer in that year shall be reduced—
(d) if the price fixed and published by the Reserve Bank under section forty-four of the Banking Act 1959–1967 did not, at the time the bullion or refined gold was sold, exceed Thirty-one dollars twenty-five cents per ounce of fine gold—by an amount equal to seventy-five per centum of the amount of those moneys; or
(e) if the price so fixed and published exceeded, at the time the bullion or refined gold was sold, Thirty-one dollars twenty-five cents per ounce of fine gold—by the amount of those moneys.
“(2.) For the purposes of the last preceding sub-section, a delivery of gold in accordance with section forty-two of the Banking Act 1959–1967 shall be deemed to be a sale of that gold, and the amount paid for that gold by the Reserve Bank shall be deemed to be the price for which it was sold.”.
Application of amendment.
4. The amendment made by this Act applies in relation to gold bullion produced or deemed, by virtue of sub-section (3.) or (4.) of section 4 of the Principal Act, or of that Act as amended by this Act, to have been produced on or after the first day of July, One thousand nine hundred and sixty-eight.
Overview
The Gold-Mining Industry Assistance Act 1968 was enacted by the Parliament of Australia to address issues in the gold-mining industry, particularly concerning the regulation of gold sales and the associated subsidies. The Act amends the Gold-Mining Industry Assistance Act 1954–1966, aiming to ensure that producers do not profit excessively from gold sales. The policy objective is to maintain a controlled environment in the gold market, preventing producers from benefiting from prices that exceed a certain threshold. This was particularly relevant at a time when global gold prices were volatile and required careful regulation to support the stability and growth of the Australian gold-mining sector. The Act specifically targets the reduction of subsidies for gold producers who sell their bullion at prices above the set limit, ensuring that the financial benefits do not disproportionately favour producers over other stakeholders in the industry.
Scope and Application
The Gold-Mining Industry Assistance Act 1968 amends the Gold-Mining Industry Assistance Act 1954–1966 to introduce modifications to the subsidy mechanism for gold producers within the Australian Commonwealth. This Act applies specifically to gold producers who sell bullion or refined gold at prices exceeding thirty-one dollars twenty-five cents per ounce of fine gold. The amendments also apply to any entity that receives or is entitled to receive a share of the excess proceeds from such sales. The Act's provisions are effective for gold bullion produced or deemed to have been produced on or after 1 July 1968. The legislation’s reach is confined to the gold-mining industry within Australia, and it does not extend beyond this sector or geographic boundary. The Act does not explicitly state exclusions or exemptions, but the amendments to the subsidy mechanism suggest that only those producers affected by the price exceeding the specified threshold are subject to the reduction in subsidies. Additionally, the Act allows for the application of the amendment through subordinate instruments, which could further define or extend the scope of its provisions.
Key Provisions
The Gold-Mining Industry Assistance Act 1968 amends the Gold-Mining Industry Assistance Act 1954–1966, introducing new provisions regarding the reduction of subsidies for gold bullion sold at prices exceeding a specified limit. Section 11 of the Principal Act is repealed and replaced with a new section that addresses the situation where gold bullion or refined gold is sold at a price exceeding thirty-one dollars twenty-five cents per ounce of fine gold. If a producer receives, or is entitled to receive, moneys representing the excess of this price, and the Treasurer determines that this right arose from bullion produced by the producer in a particular year, the subsidy payable for that year’s bullion production will be reduced. The reduction is either seventy-five per cent of the excess amount if the Reserve Bank’s price at the time of sale did not exceed thirty-one dollars twenty-five cents, or the full amount of the excess if the Reserve Bank’s price did exceed this amount. Additionally, a delivery of gold under the Banking Act 1959–1967 is considered a sale, with the price paid by the Reserve Bank deemed as the sale price.
The Act imposes obligations on gold producers to ensure that any sales of gold above the specified price are accurately reported, and the associated subsidies are adjusted accordingly. Producers must cooperate with the Treasurer's assessment of their entitlement to any excess moneys, ensuring transparency and compliance with the provisions of the Act. The Act also requires producers to maintain records of gold sales and the prices received, which will be used to determine the applicable subsidy reduction.
Failure to comply with the provisions of this Act can result in civil consequences for the producers, including the reduction or withholding of subsidies. The Act does not explicitly outline criminal penalties, but non-compliance may lead to investigations and potential legal action by the relevant authorities. Producers found to have deliberately misrepresented the prices at which gold was sold could face further scrutiny and penalties, including financial penalties or legal sanctions, as determined by the relevant authorities.