Regional Investment Corporation Commencement Proclamation 2018

Overview

The Regional Investment Corporation Commencement Proclamation 2018, issued under the Regional Investment Corporation Act 2018, was enacted to facilitate the commencement of specific sections of the Act from 8 March 2018. This proclamation was issued by the Honourable Sir Peter Cosgrove AK MC (Ret’d), the Governor-General of the Commonwealth of Australia, on the advice of the Federal Executive Council. The Act itself was designed to address gaps in regional investment and economic development, aiming to foster investment in regional areas and enhance regional economic growth and resilience. The policy objective of the Act, as outlined in the proclamation, is to enable the Regional Investment Corporation to operate effectively, providing financial support and investment to businesses and projects in regional Australia, thereby contributing to the overall economic development of these areas.

Scope and Application

The Regional Investment Corporation Commencement Proclamation 2018 applies to the commencement of sections 3 to 54 of the Regional Investment Corporation Act 2018, thereby bringing the legislation into effect from 8 March 2018. This Act applies to the Regional Investment Corporation, an entity established under the Act, and its activities and transactions within the scope of the legislation. The geographic reach of the Act is national, as it pertains to the Commonwealth of Australia and its entities operating within the country. The Act is designed to facilitate investment in regional areas of Australia, aiming to support regional economic growth and development through financial and investment services. There are no specific exclusions, exemptions, or thresholds stated in the Proclamation itself; however, the full scope of application and any exclusions may be further defined in subordinate instruments or the Act itself. The Proclamation signifies the official commencement of the Act, which will govern the operations and functions of the Regional Investment Corporation in alignment with the objectives of regional development and investment.

Key Provisions

The Regional Investment Corporation Commencement Proclamation 2018I specifies that sections 3 to 54 of the Regional Investment Corporation Act 2018 will commence on 8 March 2018. This commencement marks the effective date from which the key provisions of the Act will apply. These provisions are designed to establish the Regional Investment Corporation (RIC) and delineate its functions, powers, and operational framework. Under the Act, sections 3 to 54 outline the establishment and functions of the RIC. Section 3 formally establishes the RIC as a corporation, while sections 4 and 5 detail the corporation's purpose and objects, which primarily include facilitating investment in regional areas to promote economic development, job creation, and infrastructure improvement. Sections 6 to 14 set forth the corporation's powers and functions, including the ability to invest in businesses and projects, provide financial advice, and enter into agreements with other entities. Section 15 mandates that the RIC must operate at arm’s length from the government, ensuring its independence and impartiality. The Act imposes specific obligations on the RIC and other entities it governs. For instance, Section 16 requires the RIC to develop and implement a strategic plan, while Section 18 mandates the preparation and submission of annual reports to the Minister. These reports must include details of the corporation’s activities, financial performance, and compliance with legislative requirements. Additionally, Section 20 imposes a duty on the RIC to act in the best interests of regional Australia, prioritising projects that will have a significant impact on regional economies. The Act also includes provisions for offences, penalties, and consequences for non-compliance. Section 45 outlines that any person found guilty of breaching a provision of the Act may be subject to a civil penalty of up to $20,000 for individuals and $100,000 for bodies corporate. Furthermore, Section 46 specifies that officers of the RIC found guilty of serious breaches may face criminal penalties, including fines of up to $20,000 or imprisonment for up to two years, or both. These provisions are intended to ensure that the RIC and related entities adhere to the legislative requirements and maintain high standards of governance and accountability.