Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Show Starter Loan Enforcement) Authorisation 2022
I, Dr James Edward Chalmers, Treasurer, make the following instrument of authorisation.
Dated 9 June 2022
Dr James Edward Chalmers
Treasurer
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Schedules
5 Definitions
Part 2—Authorisation
6 Authorisation for Arts Minister to perform functions or duties or exercise powers in respect of the Show Starter Loan Scheme
Schedule 1—Repeals
Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Show Starter Loan Enforcement Authorisation 2020
Part 1—Preliminary
1 Name
This instrument is the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Show Starter Loan Enforcement) Authorisation 2022.
2 Commencement
(1) Each provision of this 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Note: This table relates only to the provisions of this instrument as originally made.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 following:
(a) the Acts Interpretation Act 1901; and
(b) 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Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.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: Paragraph 13(1)(b) of the Legislation Act 2003 has the effect that 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.
In this instrument:
Arts Minister means the minister administering the National Gallery Act 1975 (including any person from time to time holding, occupying, or performing the duties of the Minister that administers that Act).
Directed Enforcement Action has the meaning given by the Australian Government Show Starter Loan Scheme Rules.
Note: In 2022, the Scheme Rules could be viewed on the Department of the Treasury’s website (https://treasury.gov.au/).
Show Starter Loan Scheme has the meaning given by the Australian Government Show Starter Loan Scheme Rules.
the Act means the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.
Part 2—Authorisation
6 Authorisation for Arts Minister to perform functions or duties or exercise powers in respect of the Show Starter Loan Scheme
(1) Under subsection 34AAB(1) of the Acts Interpretation Act 1901, the Arts Minister is authorised to act on the Treasurer’s behalf in the performance of the Treasurer’s functions and duties, or the exercise of Treasurer’s powers, that the Treasurer may perform or exercise under the Act in relation to the giving of directions on behalf of the Commonwealth under the Act to financial institutions to take Directed Enforcement Action under the Show Starter Loan Scheme.
(2) The authorisation under subsection (1) has effect from the commencement of this instrument, and continues in effect until the earlier of the following days:
(a) 30 September 2027; and
(b) the day another person is appointed as Treasurer.
Schedule 1—Repeals
Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Show Starter Loan Enforcement Authorisation 2020
1 The whole of the instrument
Repeal the instrument.
Overview
The Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Show Starter Loan Enforcement) Authorisation 2022 was introduced to address the need for continued enforcement of the Show Starter Loan Scheme, which was established to support small and medium enterprises during the COVID-19 pandemic. This notifiable instrument was enacted to allow the Arts Minister to perform functions or duties or exercise powers on behalf of the Treasurer under the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020. The authorisation is intended to ensure that the Scheme's objectives are met effectively, including the enforcement of directed actions against financial institutions. The instrument was made under the authority of the Acts Interpretation Act 1901 and the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020, and it repeals the earlier Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Show Starter Loan Enforcement Authorisation 2020. The policy objective is to provide a seamless continuation of the enforcement mechanisms necessary to support the financial stability of small and medium enterprises during the economic challenges posed by the pandemic.
Scope and Application
The Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Show Starter Loan Enforcement) Authorisation 2022 applies to the Arts Minister, who is authorised to perform certain functions or duties or exercise powers in relation to the Show Starter Loan Scheme on behalf of the Treasurer. This authorisation is made under the Acts Interpretation Act 1901 and the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020. The authorisation allows the Arts Minister to give directions to financial institutions to take Directed Enforcement Action under the Show Starter Loan Scheme. The instrument applies from the day after it is registered, and continues until the earlier of 30 September 2027 or the day another person is appointed as Treasurer. The instrument repeals the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Show Starter Loan Enforcement Authorisation 2020.
Key Provisions
The main operative sections of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Show Starter Loan Enforcement) Authorisation 2022 (F2022N00140) are found in Part 2, Section 6, which authorises the Arts Minister to perform specific functions, duties, or powers on behalf of the Treasurer under the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020. This authorisation allows the Arts Minister to act on the Treasurer's behalf in issuing directions to financial institutions to take Directed Enforcement Action under the Show Starter Loan Scheme. This authorisation is effective from the day after the instrument is registered and continues until 30 September 2027, or until another person is appointed as Treasurer, whichever is earlier.
The obligations and requirements imposed by this authorisation on the Arts Minister and the financial institutions are primarily to adhere to the directions issued by the Treasurer through the Arts Minister. These directions are intended to ensure that the provisions of the Show Starter Loan Scheme are enforced effectively, thereby supporting small and medium enterprises during the economic challenges posed by the coronavirus pandemic. The Arts Minister must act in accordance with the Act, ensuring that the enforcement actions align with the objectives of providing financial support and stability to the targeted businesses. Financial institutions, on the other hand, must comply with the directed enforcement actions, which may include specific measures to ensure that loans are appropriately managed and disbursed under the Scheme.
The authorisation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches. However, non-compliance with the directions issued under the Act could potentially lead to legal action under the broader provisions of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020. The Act itself may impose penalties or sanctions for non-compliance, and breaches of the authorisation could be subject to legal remedies or enforcement actions as prescribed by the Act. The specific penalties or consequences would depend on the nature and severity of the breach, as well as the provisions of the overarching legislation.