EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Foreign Affairs
International Organisations (Privileges and Immunities) Act 1963
International Organisations (Privileges and Immunities – Nauru Trust Fund) Regulations 2026
The International Organisations (Privileges and Immunities) Act 1963 (the Act) provides a framework for the granting of privileges and immunities to certain international organisations, and to persons connected to those organisations, in Australia.
Section 13 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 5(1) of the Act relevantly provides that regulations may declare an organisation of which Australia and a country or countries other than Australia are members, or that is constituted by a person or persons representing Australia and a country or countries other than Australia, to be an international organisation to which the Act applies.
The purpose of the International Organisations (Privileges and Immunities – Nauru Trust Fund) Regulations 2026 (the replacement Regulations) is to remake the International Organisations (Privileges and Immunities – Nauru Trust Fund) Regulation 2015 (the sunsetting Regulations) prior to the sunsetting date of 1 April 2026. The replacement regulations are the same in substance to the sunsetting Regulations.
The replacement Regulations declare the Intergenerational Trust Fund for the People of the Republic of Nauru (the Fund) as an international organisation to which the Act applies and confer exemptions from currency and exchange restrictions and exemptions from income tax on the Fund. This enables the Fund to maintain its existing status and privileges in Australia.
The Fund was established in accordance with the Memorandum of Understanding between the Government of the Republic of Nauru and the Government of Australia Regarding an Intergenerational Trust Fund for the People of Nauru (Fund MoU). The Fund MoU is a less-than-treaty status instrument that does not give rise to binding international obligations. The Fund MoU was signed by the Government of the Republic of Nauru and Government of Australia in 2015. The Fund is governed by a Committee comprising one member representing Australia and Nauru respectively (in addition to a representative from each other contributing partner).
The purpose of the Fund is to provide Nauru with an ongoing source of revenue for investments in education, health, environment and infrastructure. Under the terms of the Fund MoU, Australia and Nauru are required to provide the Fund with juridical personality in their respective domestic laws, as well as exemptions from currency and exchange restrictions and income taxation exemptions for the Fund, its property and assets. The sunsetting Regulations gave effect to these commitments, however, they are due to sunset on 1 April 2026. The replacement Regulations will therefore replace the sunsetting Regulations without altering the substance of the sunsetting Regulations. This will ensure that Australia continues to give effect to its commitments under the Fund MoU and will enable the Fund to maintain its status and related privileges in Australia, ensuring the Fund continues to achieve its purpose.
In accordance with section 17 of the Legislation Act 2003, all relevant Australian Government departments were consulted in the preparation of the replacement Regulations. No substantive feedback was received as part of this consultation. The department did not undertake public consultation as the replacement Regulations are technical in nature, remake an existing law without altering its substance, and provide limited taxation and financial privileges to a body corporate. These privileges have a minor regulatory impact and ensure that Australia gives effect to its commitments under the Fund MoU.
The replacement Regulations commence on 1 April 2026 and are a legislative instrument for the purposes of the Legislation Act 2003.
Details of the replacement Regulations are set out in the Attachment A.
The replacement Regulations have been assessed to be compatible with human rights for the purposes of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is set out below at Attachment B.
ATTACHMENT A
Details of the International Organisations (Privileges and Immunities – Nauru Trust Fund) Regulations 2026
Section 1 – Name
This section provides that the title of the instrument is the International Organisations (Privileges and Immunities – Nauru Trust Fund) Regulations 2026 (the replacement Regulations).
Section 2 – Commencement
This section provides for the commencement of the replacement Regulations, as set out in the table in subsection 2(1).
Column 2 of the Table in subsection 2(1) provides that the whole of the replacement Regulations commence on 1 April 2026.
Subsection 2(2) provides that any information in column 3 of the table is not part of the replacement Regulations. Information may be inserted in this column, or information in it may be edited, in any published version of the replacement Regulations.
Section 3 – Authority
This section provides that the replacement Regulations are made under the International Organisations (Privileges and Immunities) Act 1963 (the Act).
Section 4 – Schedules
This section provides that each instrument that is specified in a Schedule to the replacement Regulations is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the replacement Regulations has effect according to its terms.
Section 5 – Definitions
This section defines the terms ‘Act’ and Fund’ for the purposes of the replacement Regulations.
Namely, ‘Act’ means the International Organisations (Privileges and Immunities) Act 1963. ‘Fund’ means the Intergenerational Trust Fund for the People of the Republic of Nauru.
The Intergenerational Trust Fund for the People of the Republic of Nauru (the Fund) was established under the Memorandum of Understanding between the Government of the Republic of Nauru and the Government of Australia Regarding an Intergenerational Trust Fund for the People of Nauru (Fund MoU).
Section 6 – Act applies to Fund
This section provides that the Fund is declared to be an international organisation to which the Act applies. This declaration is made pursuant to subsection 5(1) of the Act, which relevantly provides that regulations may declare an organisation of which Australia and a country or countries other than Australia are members, or that is constituted by a person or persons representing Australia and a country or countries other than Australia, to be an international organisation to which the Act applies.
Section 7 – Legal personality and capacities of Fund
Subparagraph 6(1)(a)(i) of the Act relevantly provides that regulations may confer upon an international organisation to which the Act applies juridical personality and such legal capacities as are necessary for the exercise of the powers and performance of the functions of the organisation.
Section 7 of the replacement Regulations, for the purposes of subparagraph 6(1)(a)(i) of the Act, provides the Fund with legal personality and capacities necessary for the Fund to exercise its powers and perform its functions (as set out under the Fund MoU). In particular, section 7 confers the Fund with body corporate status under Australian law, as well as the following legal capacities in its corporate name: the ability to enter into contracts, acquire and dispose of property, institute legal proceedings (which includes being a party to legal proceedings) and to take any other action to protect the Fund’s assets.
This section gives effect to Australia’s commitments under the Fund MoU.
Section 8 – Privileges and immunities of Fund
Subparagraph 6(1)(a)(ii) of the Act relevantly provides that regulations may confer upon an international organisation to which the Act applies all or any of the privileges in the First Schedule of the Act. These privileges may be conferred without restriction or to the extent or subject to the conditions prescribed in the regulations.
Section 8 of the replacement Regulations, for the purposes of subparagraph 6(1)(a)(ii) of the Act, provides the Fund with:
- an exemption from currency and exchange restrictions, and
- an exemption of the Fund, its property and its assets from income tax.
Item 5 of the First Schedule of the Act permits an exemption from currency and exchange restrictions to be conferred on an international organisation to which the Act applies. Section 8 confers this privilege on the Fund without any limitations.
Item 7 of the First Schedule of the Act permits an exemption of the organisation from the liability to pay or collect taxes and other duties on the importation and exportation of goods and of the income, property, assets and transactions of the organisation from such taxes. Section 8 confers this privilege on the Fund, but is limited to an exemption of the Fund, its property and its assets from income tax only.
This section gives effect to Australia’s commitments under the Fund MoU.
Schedule 1 – Repeals
Schedule 1 repeals the whole of the International Organisations (Privileges and Immunities—Nauru Trust Fund) Regulation 2015.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
International Organisations (Privileges and Immunities – Nauru Trust Fund) Regulations 2026
This Disallowable Legislative 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
The International Organisations (Privileges and Immunities) Act 1963 (the Act) provides a framework for the granting of privileges and immunities to certain international organisations, and to persons connected to those organisations, in Australia.
Section 13 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 5(1) of the Act relevantly provides that regulations may declare an organisation of which Australia and a country or countries other than Australia are members, or that is constituted by a person or persons representing Australia and a country or countries other than Australia, to be an international organisation to which the Act applies.
The purpose of the International Organisations (Privileges and Immunities – Nauru Trust Fund) Regulations 2026 (the replacement Regulations) is to remake the International Organisations (Privileges and Immunities – Nauru Trust Fund) Regulation 2015 (the sunsetting Regulations) prior to the sunsetting date of 1 April 2026. The replacement Regulations are the same in substance to the sunsetting Regulations.
The replacement Regulations declare the Intergenerational Trust Fund for the People of the Republic of Nauru (the Fund) as an international organisation to which the Act applies and confer exemptions from currency and exchange restrictions and exemptions from income tax on the Fund. This enables the Fund to maintain its existing status and privileges in Australia.
The Fund was established in accordance with the Memorandum of Understanding between the Government of the Republic of Nauru and the Government of Australia Regarding an Intergenerational Trust Fund for the People of Nauru (Fund MoU). The Fund MoU is a less-than-treaty status instrument that does not give rise to binding international obligations. The Fund MoU was signed by the Government of the Republic of Nauru and Government of Australia in 2015. The Fund is governed by a Committee comprising one member representing Australia and Nauru respectively (in addition to a representative from contributing partners New Zealand and Taiwan).
The purpose of the Fund is to provide Nauru with an ongoing source of revenue for investments in education, health, environment and infrastructure. Under the terms of the Fund MoU, Australia and Nauru are required to provide the Fund with juridical personality in their respective domestic laws, as well as exemptions from currency and exchange restrictions and income taxation exemptions for the Fund, its property and assets. The sunsetting Regulations gave effect to these commitments, however are due to sunset on 1 April 2026. The replacement Regulations will therefore replace the sunsetting Regulations without altering the substance of the sunsetting Regulations. This will ensure that Australia continues to give effect to its commitments under the Fund MoU and will enable the Fund to maintain its status and related privileges in Australia, ensuring the Fund continues to achieve its purpose.
Human rights implications
The replacement Regulations do not engage any of the applicable rights or freedoms. The replacement Regulations are technical in nature and provide the Fund with body corporate status as well as relevant tax and financial related privileges. The replacement Regulations do not confer any immunities on the Fund. The replacement Regulations therefore do not have any human rights implications.
Conclusion
The replacement Regulations are compatible with human rights as they do not raise any human rights issues.