Loans Securities Regulations 2025

Administered by Department of the Treasury

Legislation au F2025L01133 Regulations In force Legislative Instrument

Legislation content

 

EXPLANATORY STATEMENT

Issued by authority of the Assistant Treasurer and Minister for Financial Services

Loans Securities Act 1919

Loans Securities Regulations 2025

Section 7 of the Loans Securities Act 1919 (the Act) provides that the Governor‑General may make regulations prescribing 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, or for the conduct of any business relating to the issue, sale, transfer and dealing with securities to which the Act applies.

The Act includes activities related to debt instruments issued by the Commonwealth, permitting borrowing subject to certain conditions, when there is already an authority to borrow under the Commonwealth Inscribed Stock Act 1911(CIS Act). The Act was enacted to overcome doubts as to the sufficiency of the CIS Act to enable the borrowing of money in foreign currencies. The Act also gives the Treasurer the authority to enter into financial arrangements such as swaps and to enter into securities lending arrangements. Under the Act securities were issued in paper form, which are payable on presentation of the security.

The purpose of the Loans Securities Regulations 2025 (the Regulations) is to remake the Loans Securities Regulation 2015. The Legislation Act 2003 (Legislation Act) provides that all legislative instruments, other than exempt instruments, progressively ‘sunset’ according to the timetable set out in the Legislation Act. When a legislative instrument sunsets, it is automatically repealed. The Loans Securities Regulation 2015 sunsets on 1 October 2025.

The Regulations are necessary to provide a mechanism for an applicant to seek payment for paper securities that have been lost, stolen or mutilated. The Treasurer must be satisfied of the applicant’s claim and the security must not have been previously paid. While securities are no longer issued in paper form under the Act, there are outstanding securities within their prescription period that have been issued in paper form.

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

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003. The Regulations are subject to disallowance and sunsetting.

The Regulations commence on 1 October 2025.

Public consultation on the proposed Regulations was undertaken in August 2025. No submissions were received.

Details of the Regulations are set out in Attachment A.

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

ATTACHMENT A

Details of the Loans Securities Regulations 2025

Section 1 – Name

This section provides that the name of the regulations is the Loans Securities Regulations 2025 (the Regulations).

Section 2 – Commencement

Schedule 1 to the Regulations commence on 1 October 2025. This is to coincide with the sunsetting date of the previous Regulation to ensure no gap in the law.

Section 3 – Authority

The Regulations are made under the Loans Securities Act 1919 (the Act).

Section 4 – Schedules

This section provides that each instrument that is specified in the Schedules to this instrument are amended or repealed as set out in the applicable items in the Schedules, and any other item in the Schedules to this instrument has effect according to its terms. Schedule 1 repeals the Loans Securities Regulation 2015.

Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend or vary any such instrument.

Section 5 – Definitions

This section provides definitions for the purpose of the Regulations.

Section 6 – Paying out lost, stolen, destroyed or mutilated securities

This section provides that an owner of a security may apply to the Treasurer for the payment of a paper security that has been accidentally lost, stolen, destroyed or mutilated prior to being paid off.

The Treasurer may authorise payment of the security, and any unpaid interest, where the Treasurer is satisfied that the security is lost, stolen, destroyed or mutilated. The owner of the security must also give an indemnity bond, to the satisfaction of the Treasurer, to indemnify the Commonwealth against the double payment of the security. This must also include any interest paid on the security. Payments made under this section are appropriated in accordance with section 4 of the Act.

Section 7 – Delegation

This section provides that the Treasurer may, in writing, delegate the powers and functions in this instrument to an SES employee in the Department, as such, this delegation includes SES employees in the Australian Office of Financial Management. Any delegate must comply with the directions of the Treasurer when exercising delegated powers or functions. Any delegations (including any directions to the delegate) are not legislative instruments, as set out in items 1 and 2 of the table in subsection 6(1) of the Legislation (Exemptions and Other Matters) Regulation 2015.

 


ATTACHMENT B

 

Statement of Compatibility with Human Rights

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

Loans Securities Regulations 2025

This 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 of the Legislative Instrument

The Loans Securities Regulations 2025 provide a mechanism for an applicant to seek payment for paper securities that have been lost, stolen or mutilated. The Treasurer must be satisfied of the applicant’s claim and the security must not have been previously paid. While securities are no longer issued in payment form under the Act, there are outstanding securities that have been issued in paper form.

Human rights implications

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

Conclusion

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

Overview

The Loans Securities Act 1919 was enacted to address uncertainties regarding the sufficiency of the Commonwealth Inscribed Stock Act 1911 for borrowing money in foreign currencies, as well as to grant the Treasurer authority to enter into financial arrangements such as swaps and securities lending arrangements. This Act permits the issuance of debt instruments by the Commonwealth under specific conditions. The Act was introduced by the Parliament of Australia, and its policy objective is to provide a clear legal framework for the issuance and management of securities by the Commonwealth, ensuring both domestic and international borrowing activities are conducted under regulated conditions. Complementing this Act are the Loans Securities Regulations 2025, which were developed to replace the Loans Securities Regulation 2015 upon its sunset on 1 October 2025. These regulations establish a process for handling claims related to lost, stolen, destroyed, or mutilated paper securities, ensuring that such claims can be processed provided the security has not been previously paid and the Treasurer is satisfied with the applicant's claim. The regulations were subject to public consultation, with no submissions received, and are designed to maintain continuity in the legal framework governing securities issued under the Act.

Scope and Application

The Loans Securities Act 1919 applies to the issuance, sale, transfer, and dealing with securities issued by the Commonwealth, including debt instruments in foreign currencies, and empowers the Treasurer to enter into various financial arrangements. The Act operates within the Commonwealth jurisdiction, providing a legal framework for borrowing and financial transactions authorised by the Commonwealth. The Act allows for the issuance of securities in both paper and electronic forms, although the issuance in paper form is now obsolete, as per the Loans Securities Regulations 2025. The Regulations, which sunset on 1 October 2025, provide for the payment of lost, stolen, destroyed, or mutilated paper securities, ensuring that the process for such claims is clearly defined until the existing paper securities expire. The Regulations are subject to disallowance and sunsetting, as mandated by the Legislation Act 2003. While the Act broadly covers financial instruments and related activities, it does not specify any particular exclusions or thresholds, allowing the Treasurer broad discretion within the defined scope. The Act and Regulations are instruments of national jurisdiction, extending their application across the Commonwealth of Australia.

Key Provisions

The Loans Securities Regulations 2025 (the Regulations) are a set of rules designed to facilitate the payment process for lost, stolen, destroyed or mutilated paper securities under the Loans Securities Act 1919 (the Act). Section 6 of the Regulations allows an owner of a security to apply to the Treasurer for the payment of a paper security if it has been lost, stolen, destroyed or mutilated before it was paid off. The Treasurer has the discretion to authorise the payment of the security, along with any unpaid interest, provided that the Treasurer is satisfied with the validity of the claim and that the security has not been previously paid. To safeguard against double payments, the owner must provide an indemnity bond to the Treasurer, ensuring the Commonwealth is indemnified against any double payments, including interest. The Regulations impose several obligations on the parties involved. Firstly, the owner of the lost, stolen, destroyed or mutilated security must submit a claim to the Treasurer, providing all necessary documentation and an indemnity bond. The Treasurer, upon receiving such a claim, must evaluate the application, verify the details and make a decision based on the information presented. The Regulations also allow the Treasurer to delegate their powers and functions to an SES employee in the Department of the Treasury, as per Section 7. Any delegations made must adhere to the directions of the Treasurer, ensuring the authority is exercised appropriately. Failure to comply with the requirements set out in the Regulations could potentially lead to civil or administrative consequences, although specific penalties are not outlined in the text. The Regulations do not specify any criminal offences or penalties for breach, but it is implied that any improper or fraudulent claims could result in legal actions or penalties under other applicable laws. The compatibility statement confirms that the Regulations do not infringe on any human rights and freedoms as recognised in relevant international instruments.

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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.