Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Delegations 2023
I, Stephen Jones, Assistant Treasurer and Minister for Financial Services, make the following delegations.
Dated 20 June 2023
Stephen Jones
Assistant Treasurer
Minister for Financial Services
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Schedules
5 Definitions
Part 2—Delegations
6 Delegations
7 Directions to delegates
Schedule 1—Repeals
Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020
Part 1—Preliminary
1 Name
This instrument is the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Delegations 2023.
2 Commencement
(1) Each provision of instrument 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 instrument | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.
4 Schedules
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
5 Definitions
Note: Expressions have the same meaning in this instrument as in the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
In this instrument:
the Act means the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.
the Treasury means the Department of the Treasury.
Part 2—Delegations
6 Delegations
Under subsection 7(1) of the Act, any person holding, occupying or performing the duties of any of the following offices or positions in the Treasury is delegated all of the Minister’s powers under section 5 of the Act:
(a) the Secretary;
(b) a Deputy Secretary;
(c) an SES employee (other than a Deputy Secretary).
7 Directions to delegates
(1) Under subsection 7(2) of the Act, a delegate under section 6 of this instrument is directed to exercise the power in a manner consistent with the following:
(a) the total face value, in Australian currency, of loans in connection with which guarantees are granted under the Act should not exceed $40 billion; and
(b) all loans in connection with which a guarantee is granted under the Act are intended to be used only for business purposes.
(2) Under subsection 7(2) of the Act, a delegate covered by paragraph 6(c) of this instrument is directed to exercise the power only in relation to administering guarantees already granted under the Act.
Example: An SES employee (other than a Deputy Secretary) may determine whether or not to make a payment in response to a claim made by a participating lender in respect of a guaranteed liability. However, the SES employee may not grant a new guarantee.
Schedule 1—Repeals
Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020
1 The whole of the instrument
Repeal the instrument.
Overview
The Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Delegations 2023 was enacted by Stephen Jones, the Assistant Treasurer and Minister for Financial Services. This legislative instrument, which commenced on the day after its registration, is made under the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020. Its primary purpose is to delegate the Minister's powers to specified officials within the Department of the Treasury, ensuring effective administration of the lending guarantees aimed at supporting small and medium enterprises during the economic impact of the coronavirus. The delegations are designed to ensure that the total face value of loans does not exceed $40 billion and that all loans are intended solely for business purposes. This delegation also includes specific directions for the exercise of powers, such as limiting certain officials to administering existing guarantees rather than granting new ones.
Scope and Application
The Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Delegations 2023, made under the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020, outlines delegations of the Minister’s powers to specified officers within the Department of the Treasury. This instrument, which commenced the day after its registration, applies to the Secretary, Deputy Secretaries, and other Senior Executive Service (SES) employees within the Treasury. The delegations primarily concern the administration of guarantees related to loans for small and medium enterprises, with a cap on the total face value of loans not exceeding $40 billion and ensuring that all loans are for business purposes. Additionally, the instrument provides specific directions for delegates to exercise their powers consistently with these guidelines and repeals a previous delegation instrument from 2020. This legislative instrument extends the reach of the Act by enabling specified officers within the Treasury to act on behalf of the Minister, thereby facilitating the efficient administration of the coronavirus economic response package for small and medium enterprises.
Key Provisions
The primary operative sections of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Delegations 2023I are found within Part 2, which outlines the delegations and directions to the delegates. Section 6 of the instrument specifies that certain officers within the Department of the Treasury, namely the Secretary, a Deputy Secretary, and an SES employee (excluding a Deputy Secretary), are delegated with the Minister's powers under section 5 of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020. Section 7 then provides directions to these delegates, stipulating that they should exercise their powers in accordance with certain conditions, including a cap on the total face value of loans and the intended use of the loans for business purposes.
The obligations imposed by this instrument on the parties it governs are primarily administrative and compliance-focused. The delegates must ensure that the total face value of loans for which guarantees are granted under the Act does not exceed $40 billion and that all such loans are intended for business use. Additionally, an SES employee (other than a Deputy Secretary) may only exercise their delegated powers in relation to administering guarantees already granted under the Act, and not for granting new guarantees.
There are no explicit offences, penalties, or civil/criminal consequences stated within this instrument for breach of its provisions. The instrument operates within the framework established by the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020, and any breaches of the Act would be subject to the penalties and consequences outlined therein. Given that the instrument itself does not detail penalties, any enforcement actions would likely be pursued under the primary Act, which could include both civil and criminal penalties as appropriate. The exact nature and severity of such penalties would depend on the specific provisions of the Act that are contravened.