Public Governance, Performance and Accountability (Pacific Banking Guarantee) Delegations 2025
I, Steven Kennedy, Secretary to the Department of the Treasury, make the following delegations.
Dated 28 February 2025
Dr Steven Kennedy
Secretary
Department of the Treasury
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Definitions
Part 2—Delegations relating to guarantees, indemnities or warranties by the Commonwealth
5 Delegations relating to guarantees, indemnities or warranties by the Commonwealth
Part 1—Preliminary
1 Name
This instrument is the Public Governance, Performance and Accountability (Pacific Banking Guarantee) Delegations 2025.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | Immediately after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the Public Governance, Performance and Accountability Act 2013.
4 Definitions
Note: Expressions have the same meaning in this instrument as in the Public Governance, Performance and Accountability Act 2013 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
In this instrument:
ABN has the meaning given by the A New Tax System (Australian Business Number) Act 1999.
ANZ Bank means Australia and New Zealand Banking Group Limited (ABN 11 005 357 522).
banking business has the meaning given by the Banking Act 1959.
Pacific region includes:
(a) the islands of the Pacific; and
(b) Papua New Guinea; and
(c) Timor‑Leste.
Secretary means the Secretary to the Treasury (also the accountable authority of the Treasury).
the Act means the Public Governance, Performance and Accountability Act 2013.
the Treasury means the Department of the Treasury.
Part 2—Delegations relating to guarantees, indemnities or warranties by the Commonwealth
5 Delegations relating to guarantees, indemnities or warranties by the Commonwealth
(1) Under subsection 110(1) of the Act, each person holding, occupying or performing the duties of each of the following offices or positions in the Treasury, is delegated the Secretary’s powers under section 60 of the Act, as delegated to the Secretary by the Minister for Finance in writing on 27 February 2025 (MC25-000691 refers):
(a) a Deputy Secretary.
Directions
(2) Under subsection 110(6) of the Act, a delegate under subsection (1) is directed to exercise the power in a manner consistent with all of the following:
(a) subclause 6.1(3) and clause 6.2 of Schedule 1 to the Public Governance, Performance and Accountability (Finance Minister to Accountable Authorities of Non‑Corporate Commonwealth Entities) Delegation 2022;
(b) the power is to be exercised only in connection with a guarantee granted, or to be granted, to ANZ Bank;
(c) guarantees granted under the power must:
(i) relate to the carrying on of a banking business in the Pacific region; and
(ii) not result in the Commonwealth assuming a contingent financial liability of more than $2 billion over 10 years; and
(iii) require that a fee is payable by ANZ Bank, at least annually, in relation to the benefit derived from the guarantee or the cost to the Commonwealth of administering the guarantee, or both.
Note: The document in paragraph (a) could, in 2025, be viewed on the Department of Finance’s website (https://www.finance.gov.au).
Overview
The Public Governance, Performance and Accountability (Pacific Banking Guarantee) Delegations 2025 was enacted to provide specific delegations for the Commonwealth's guarantee of banking activities in the Pacific region, under the authority of the Public Governance, Performance and Accountability Act 2013. This legislative instrument addresses the need for clear delegations of authority to ensure that guarantees provided by the Commonwealth are consistent with broader financial and policy objectives, particularly in relation to the banking operations of ANZ Bank in the Pacific region. Enacted by Dr Steven Kennedy, the Secretary to the Department of the Treasury, the delegations are aimed at ensuring that any guarantees do not result in the Commonwealth assuming a contingent financial liability exceeding $2 billion over ten years and that ANZ Bank pays a fee to cover the costs or benefits of the guarantee. This ensures accountability and financial prudence in the provision of such guarantees.
Scope and Application
The Public Governance, Performance and Accountability (Pacific Banking Guarantee) Delegations 2025 applies to individuals holding specific offices or positions within the Department of the Treasury, including Deputy Secretaries. This instrument delegates powers under the Public Governance, Performance and Accountability Act 2013, enabling these officials to make decisions regarding guarantees, indemnities, or warranties by the Commonwealth. These powers are specifically directed towards the granting of guarantees to Australia and New Zealand Banking Group Limited (ANZ Bank) in connection with banking businesses operating in the Pacific region, subject to certain conditions such as limiting the contingent financial liability to no more than $2 billion over a 10-year period and requiring ANZ Bank to pay a fee for the benefits derived from the guarantee. The geographic scope of this legislation is confined to the Pacific region, which includes the islands of the Pacific, Papua New Guinea, and Timor-Leste. The instrument commences immediately after it is registered, and its provisions are subject to further direction and regulation through subordinate instruments, ensuring alignment with existing legislative frameworks and policies.
Key Provisions
The Public Governance, Performance and Accountability (Pacific Banking Guarantee) Delegations 2025I, made by Steven Kennedy, the Secretary to the Department of the Treasury, delegates certain powers under section 60 of the Public Governance, Performance and Accountability Act 2013 (the Act). Specifically, the power to grant guarantees, indemnities, or warranties by the Commonwealth in relation to ANZ Bank's banking business in the Pacific region has been delegated (section 5(1)). The delegation is effective immediately after the instrument is registered, as specified in section 2(1). The powers are subject to conditions outlined in section 5(2) and the directions in Schedule 1 to the Public Governance, Performance and Accountability (Finance Minister to Accountable Authorities of Non-Corporate Commonwealth Entities) Delegation 2022.
The Act imposes several obligations on the parties and entities it governs. These include ensuring that any guarantees granted are directly related to ANZ Bank's banking business in the Pacific region and do not result in a contingent financial liability exceeding $2 billion over a ten-year period (section 5(2)(b)(ii)). Additionally, any guarantees must include a requirement for ANZ Bank to pay a fee, at least annually, to cover the benefit derived from the guarantee or the cost to the Commonwealth of administering it (section 5(2)(b)(iii)). The exercise of the delegated power must also align with the conditions set out in subclause 6.1(3) and clause 6.2 of Schedule 1 to the aforementioned 2022 delegation (section 5(2)(a)).
Under the Act, breaches of the terms and conditions set forth in the delegations may lead to both civil and criminal consequences. The specific penalties are not detailed in the instrument but would typically include fines and other sanctions as prescribed under the Act. The maximum penalties would depend on the nature and severity of the breach, as outlined in the overarching legislation, the Public Governance, Performance and Accountability Act 2013. Entities and individuals who misuse the delegated powers could face legal action, and severe breaches might result in criminal charges, reflecting the importance of adhering to the guidelines set by the Act.