National Security (Supplementary) Regulations (Amendment)

Overview

The Statutory Rules 1942 No. 495, enacted under the National Security Act 1939-1940, represents a legislative response to the urgent national security concerns of the time, specifically targeting the practice of offering premiums on Australian coins beyond their face value. This regulation was made by the Deputy of the Governor-General, acting on the advice of the Federal Executive Council, and it seeks to maintain the integrity and value of Australian currency by prohibiting any form of premium being offered or accepted for the delivery or transfer of coins issued under the Coinage Act 1909. The policy objective underlying this regulation is to ensure that the face value of Australian coins remains the sole determinant of their worth, thereby safeguarding against economic distortions and maintaining financial stability during a period of national crisis.

Scope and Application

The regulation introduced under the National Security Act 1939-1940 pertains to prohibiting premiums on Australian coins, excluding gold coins, issued in accordance with the Coinage Act 1909 or as amended. This legislation applies to any person who engages in the act of paying, giving, offering to pay or give, accepting, or offering to accept any sum of money, or a document representing a sum of money, that exceeds the face value of the coins in exchange for their delivery or transfer. This prohibition is intended to prevent the payment or acceptance of premiums over and above the face value of the coins. The geographic and jurisdictional reach of this regulation is nationwide, encompassing the entire Commonwealth of Australia. The regulation does not explicitly provide for exclusions or exemptions, nor does it outline any thresholds; it broadly applies to any transactions involving Australian coins, except gold coins. The regulation may extend or restrict its application through subordinate instruments, although no specific details are provided in the text regarding such extensions or restrictions.

Key Provisions

The key provision of this statutory instrument, added as Regulation 82 to the National Security (Supplementary) Regulations, prohibits the payment or acceptance of any sum of money, document, or other thing that represents a premium over the face value of Australian coins (other than gold coins) issued under the Coinage Act 1909 or as amended. This prohibition applies to any such transactions conducted as consideration for the delivery or transfer of these coins to another person (Regulation 82(1)). This amendment aims to prevent the creation of a market for Australian coins that exceeds their nominal value, potentially protecting the integrity of the nation's currency system. The obligations imposed by this regulation are primarily on individuals and entities engaging in transactions involving Australian coins. They must ensure that any payment or consideration provided for the coins does not exceed the face value of the coins, and they must not seek or offer any premium in such transactions (Regulation 82(1)). This requirement is designed to maintain the economic stability of the currency by preventing inflation or devaluation of the coins through speculative activities. Breach of this regulation constitutes an offence under the National Security Act 1939-1940. Specifically, any person who contravenes Regulation 82 by paying, offering to pay, accepting, or offering to accept a premium for Australian coins is liable to a penalty. The statutory framework does not specify the exact penalty in the provided text; however, given the context and typical penalties under the National Security Act, the breach could result in significant fines or imprisonment, or both, depending on the severity and intent of the offence. The penalties are intended to deter any activities that could undermine the economic stability or security of the nation's currency.