International Monetary Agreements Act 1970
No. 25, 1970
An Act relating to a proposed Adjustment of the Quotas of Members of the International Monetary Fund
Contents
1 Short title [see Note 1]
2 Commencement [see Note 1]
3 Consent to increase in quota
4 Appropriation
5 Issue of securities
International Monetary Agreements Act 1970
No. 25, 1970
An Act relating to a proposed Adjustment of the Quotas of Members of the International Monetary Fund
[Assented to 17 June 1970]
The Parliament of Australia enacts:
WHEREAS the International Monetary Fund has proposed an adjustment of the quotas of members of the Fund and, in particular, has proposed that the quota of Australia be increased from Five hundred million United States dollars to Six hundred and sixty‑five million United States dollars:
BE it therefore enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:
1 Short title [see Note 1]
This Act may be cited as the International Monetary Agreements Act 1970.
2 Commencement [see Note 1]
This Act shall come into operation on the day on which it receives the Royal Assent.
3 Consent to increase in quota
Approval is given to Australia consenting to Australia’s quota in the International Monetary Fund being increased from Five hundred million United States dollars to Six hundred and sixty‑five million United States dollars.
4 Appropriation
The moneys required for the purposes of the making of any payment required to be made by Australia to the International Monetary Fund by reason of the increase in Australia’s quota in that Fund referred to in the last preceding section are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.
5 Issue of securities
Section 7 of the International Monetary Agreements Act 1947‑1968 applies to any payment to the International Monetary Fund, being a payment referred to in the last preceding section, as it applies to payments under that Act.
Overview
The International Monetary Agreements Act 1970 was enacted by the Parliament of Australia to facilitate the consent and appropriation required for Australia's participation in the International Monetary Fund's proposed adjustment of member quotas. Specifically, the Act addresses the proposed increase of Australia's quota from five hundred million United States dollars to six hundred and sixty-five million United States dollars, reflecting Australia's commitment to supporting global financial stability and economic cooperation. The Act ensures that the necessary financial resources are appropriated from the Consolidated Revenue Fund to meet Australia's obligations under the quota adjustment. Additionally, it aligns the issuance of securities for these payments with the provisions of the International Monetary Agreements Act 1947-1968, ensuring continuity and consistency in Australia's international financial dealings.
Scope and Application
The International Monetary Agreements Act 1970 applies to the Commonwealth of Australia in its capacity as a member of the International Monetary Fund (IMF) and pertains specifically to the consent of Australia to an adjustment in its quota within the IMF. The Act facilitates the increase of Australia's quota from five hundred million United States dollars to six hundred and sixty-five million United States dollars. This legislative action involves financial appropriations necessary for such quota adjustments, with the required funds to be sourced from the Consolidated Revenue Fund. The Act also extends the applicability of Section 7 of the International Monetary Agreements Act 1947-1968 to any payments Australia makes to the IMF due to the quota adjustment. The jurisdictional reach of the Act is limited to Commonwealth actions and obligations under the IMF framework, without any explicit geographic or jurisdictional restrictions beyond this. There are no stated exclusions, exemptions, or thresholds within the Act itself, although the application of subordinate instruments could potentially extend or restrict the scope of its provisions.
Key Provisions
The International Monetary Agreements Act 1970 (sections 3 and 4) provides the framework for Australia’s consent to an increase in its quota in the International Monetary Fund (IMF) from US$500 million to US$665 million and mandates that the necessary funds be appropriated from the Consolidated Revenue Fund. The Act also applies section 7 of the International Monetary Agreements Act 1947-1968 to any payments resulting from this quota adjustment.
Under this Act, the Australian government is obligated to consent to the quota increase as proposed by the IMF, ensuring that Australia's financial commitment to the IMF aligns with the agreed-upon terms. Additionally, the Act stipulates that the funds required to meet this obligation are to be sourced from the Consolidated Revenue Fund, thus formalising the financial responsibility of the government. This appropriation is a critical administrative step to ensure that the necessary resources are available for the payment.
Failure to comply with the provisions of this Act could result in legal repercussions, though the Act itself does not explicitly detail specific offences, penalties, or consequences for non-compliance. However, the seriousness of international financial commitments and the legal obligations associated with them suggest that any breach could lead to significant legal and diplomatic consequences. The absence of detailed penalties in the Act may imply that the consequences of non-compliance would be addressed through other relevant laws or international agreements.