International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025

Administered by Department of the Treasury

Legislation au F2025L00299 In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Assistant Minister for Competition, Charities and Treasury

International Monetary Agreements Act 1947

International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025

Subsection 8B(3) of the International Monetary Agreements Act 1947 (the Act) provides that the Treasurer may, by legislative instrument, give notice of an amendment or renewal of the New Arrangements to Borrow by a decision of the Executive Board of the International Monetary Fund (Fund).

The purpose of the International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025 (the Instrument) is to give notice that the New Arrangements to Borrow has been renewed for a period of 5 years commencing from 1 January 2026.

Section 8B of the Act provides a mechanism for amounts to be appropriated and paid out of the Consolidated Revenue Fund to enable Australia to carry out its obligations under the New Arrangements to Borrow.

The New Arrangements to Borrow is a voluntary multilateral borrowing agreement between the Fund and 40 member countries that allows the Fund to borrow from those members, when required, to maintain stability in the global economy. On 19 July 2024, the Executive Board of the Fund decided to renew the New Arrangements to Borrow for 5 years from 1 January 2026 and make other minor amendments.

The Act does not specify any conditions that need to be satisfied before the power to make the Instrument may be exercised.

Consultation was not undertaken as the Instrument relates to Australia continuing its participating in the New Arrangements to Borrow. The New Arrangements to Borrow are a long‑standing international arrangement and the Instrument merely renews Australia’s participation. While the Fund’s decision also makes minor amendments, the Instrument does not create any new substantive obligations that would require a broader consultation.  

The Instrument is a legislative instrument for the purposes of the Legislation Act 2003. The Instrument is subject to disallowance, but the Instrument is not subject to sunsetting in accordance with table item 1 of section 11 of the Legislation (Exemptions and Other Matters) Regulation 2015.

The Instrument commences on the day after the last day on which a motion to disallow the instrument under section 42 of the Legislation Act 2003 could be passed. The Instrument will not commence at all if the Instrument is disallowed or taken to have been disallowed on or before that last day. This ensures that there will be a sufficient time for parliamentary scrutiny of the Instrument before it commences.

Details of the Instrument are set out in Attachment A.

A statement of Compatibility with Human Rights is at Attachment B.

The Office of Impact Analysis (OIA) has been consulted (OIA ref: OIA25-09292) and agreed that an Impact Analysis is not required.

 

ATTACHMENT A

Details of the International Monetary Agreements (New Arrangements to Borrow – Notice of Decision of the Fund No. 1) Instrument 2025

Section 1 – Name

This section provides that the name of the Instrument is the International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025 (the Instrument).

Section 2 – Commencement

The Instrument commences on the day after the last day on which a motion to disallow the instrument under section 42 of the Legislation Act 2003 could be passed. The Instrument will not commence at all if the Instrument is disallowed or taken to have been disallowed on or before that last day. This ensures that there will be a sufficient time for parliamentary scrutiny of the Instrument before it commences.

Section 3 – Authority

The Instrument is made under the International Monetary Fund Act 1947 (the Act).

Section 4 – Definitions

This section provides that, in the Instrument, references to the Act mean the International Monetary Agreements Act 1947. The note to the section clarifies that expressions have the same meaning in this instrument as in the Act. This is set out in paragraph 13(1)(b) of the Legislation Act 2003.

Section 5 – Giving notice of a decision

This section provides that Decision No. 17794-(24/78) of the Executive Board of the International Monetary Fund, dated 19 July 2024, is notified for the purpose of subsection 8B(3) of the Act.  

References to the New Arrangements to Borrow in the Act only incorporate amendments that are set out in the definition of ‘New Arrangements to Borrow’ in section 3 of the Act or that are notified by legislative instrument under subsection 8B(3) of the Act.

Notifying this decision allows the Treasurer to pay amounts out of the Consolidated Revenue Fund to enable Australia to carry out its obligations under the New Arrangements to Borrow, if required.

ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025

This Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of the International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025 is to give notice that minor amendments have been made to the New Arrangements to Borrow and that it has been renewed for a period of 5 years commencing from 1 January 2026.

The New Arrangements to Borrow is a voluntary multilateral borrowing agreement between the International Monetary Fund to borrow from those members, when required, to maintain stability in the global economy. On 19 July 2024, the Executive Board of the International Monetary Fund decided to renew the New Arrangements to Borrow for 5 years from 1 January 2026.

Human rights implications

This Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025 was enacted to notify Australia's participation in the renewed New Arrangements to Borrow (NAB) by the International Monetary Fund (IMF) for a period of five years, commencing from 1 January 2026. This legislative instrument was introduced under the authority of the International Monetary Agreements Act 1947, and the purpose is to ensure Australia's ongoing commitment to the NAB, a voluntary multilateral borrowing agreement that allows the IMF to borrow from member countries to maintain global economic stability. The policy objective is to facilitate the appropriation and payment of funds from the Consolidated Revenue Fund to meet Australia's obligations under the NAB. The instrument was made without consultation, as it pertains to the continuation of a long-standing international arrangement with minor amendments, and no new substantive obligations were introduced.

Scope and Application

The International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025 applies to Australia as a participating member in the New Arrangements to Borrow, a multilateral borrowing agreement managed by the International Monetary Fund. This legislative instrument is made under the authority of the International Monetary Agreements Act 1947 and is aimed at notifying the decision by the Executive Board of the International Monetary Fund to renew this arrangement for a further five years starting from 1 January 2026. The scope of the Instrument is limited to the administrative and financial obligations of Australia in relation to this agreement. There are no specific exclusions or exemptions outlined in the Instrument, but it is subject to disallowance under the Legislation Act 2003 and is not subject to sunsetting according to the Legislation (Exemptions and Other Matters) Regulation 2015. The Instrument will only come into effect after parliamentary scrutiny, ensuring that there is adequate time for review before its commencement.

Key Provisions

The main operative sections of the International Monetary Agreements (New Arrangements to Borrow—Notice of Decision of the Fund No. 1) Instrument 2025 (the Instrument) primarily focus on notifying the renewal of the New Arrangements to Borrow (NAB) and its minor amendments. Section 5 of the Instrument specifies that Decision No. 17794-(24/78) of the Executive Board of the International Monetary Fund (IMF), dated 19 July 2024, is notified under subsection 8B(3) of the International Monetary Agreements Act 1947 (the Act). This notification allows the Treasurer to allocate funds from the Consolidated Revenue Fund to meet Australia's obligations under the NAB, should the need arise. The Instrument also outlines its commencement, which occurs on the day following the last opportunity to disallow it under section 42 of the Legislation Act 2003, ensuring sufficient time for parliamentary scrutiny. The Instrument imposes certain obligations and requirements on the parties it governs, primarily focusing on the Treasurer and the Consolidated Revenue Fund. Under Section 8B of the Act, the Treasurer is authorised to appropriate and pay amounts from the Consolidated Revenue Fund to enable Australia to fulfil its commitments under the NAB. This is crucial for maintaining Australia's participation in the NAB, a multilateral agreement aimed at ensuring global economic stability. Furthermore, the Instrument ensures that any changes to the NAB, including its renewal and minor amendments, are duly notified and recognised by Australian law. Failure to comply with the provisions of the Instrument may lead to significant consequences. While the Instrument itself does not specify particular offences, breaches of the obligations outlined in Section 8B of the Act could potentially result in legal or financial repercussions. The consequences of such breaches would depend on the specific nature of the non-compliance, and could include civil or criminal penalties. Although the exact penalties are not detailed in the Instrument, they would likely be determined by the broader legal framework governing the Consolidated Revenue Fund and the International Monetary Agreements Act 1947. The Instrument's compatibility with human rights, as confirmed in Attachment B, indicates that there are no human rights concerns associated with its provisions.

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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.