Reserve Bank Act 1959
No. 4, 1959
Compilation No. 32
Compilation date: 1 March 2025
Includes amendments: Act No. 87, 2024 and Act No. 96, 2024
About this compilation
This compilation
This is a compilation of the Reserve Bank Act 1959 that shows the text of the law as amended and in force on 1 March 2025 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part I—Preliminary
1 Short title
2 Commencement
4 Repeal and saving
5 Interpretation
6 Application to Territories
6A Cessation of application to Territory
6B Application of Criminal Code
Part II—Constitution, policy and management of the Reserve Bank
Division 1—Constitution of the Reserve Bank
Subdivision A—The Reserve Bank of Australia
7 The Reserve Bank of Australia
Subdivision B—Application of the Public Governance, Performance and Accountability Act 2013
7A Accountable authority of the Bank
7B Provisions of the Public Governance, Performance and Accountability Act 2013 that do not apply
7C Officials of the Bank and general duties of officials
Subdivision C—Duty of Board members to disclose interests
7D Disclosure of interests—key decisions of the Monetary Policy Board
7E Disclosure of interests—other decisions of the Monetary Policy Board and decisions of the Payments System Board
Subdivision D—Termination for contravening general duties of officials
7F Termination for contravening general duties of officials
Division 2—Overarching objective and functions and powers of the Bank
8AA Overarching objective of the Bank
8AB Functions of the Bank
8 General powers
Division 3—The Boards of the Bank
Subdivision A—Overview
9 Overview
Subdivision B—The Monetary Policy Board
9A Establishment of the Monetary Policy Board
9B Functions of the Monetary Policy Board
Subdivision C—The Payments System Board
10A Establishment of…
Overview
The Reserve Bank Act 1959 (Cth) was enacted to address the need for a central banking institution that could manage Australia's monetary policy, financial system stability, and act as the nation's banker. The Act was passed by the Australian Parliament and received Royal Assent on 23 April 1959, coming into operation on 14 January 1960. The primary objective of the Act is to establish the Reserve Bank of Australia, outline its overarching objective, functions, powers, and governance structure, and regulate its operations. The Reserve Bank Act 1959 was amended several times to reflect changes in the financial sector, monetary policy, and the Bank's role in maintaining financial system stability. The most recent amendments were made by the Treasury Laws Amendment (Reserve Bank Reforms) Act 2024, which came into effect on 1 March 2025.
Scope and Application
The Reserve Bank Act 1959 governs the Reserve Bank of Australia, which is the central bank of the Commonwealth of Australia. The Act applies to the Reserve Bank, its officers, and any entities or individuals involved in the operations of the Bank, including the various boards and their members, as well as the Reserve Bank Service staff. The Act extends to all Australian territories except for any territory specifically excluded by a legislative instrument issued by the Treasurer. The Act’s provisions include the establishment, constitution, and management of the Reserve Bank, the overarching objective and functions of the Bank, the issuance and regulation of Australian currency, and the stability of the financial system. The Act also outlines the powers of the Governor and Deputy Governor and sets out the roles and responsibilities of the Monetary Policy Board, Payments System Board, and Governance Board. The Act further provides for the Reserve Bank’s financial operations, including the handling of profits and reserves, and mandates the Bank’s duty to act as the Commonwealth’s banker. Additionally, the Act contains provisions related to secrecy, the execution of contracts, and the protection from liability for actions taken in good faith under specific circumstances. The scope of the Act is broad, encompassing the regulation of the Reserve Bank’s activities and its interaction with other financial institutions and regulatory bodies.
Key Provisions
- The Reserve Bank Act 1959 sets out the framework for the Reserve Bank of Australia's governance, operations, and functions. Key provisions include the establishment of the Reserve Bank, the overarching objective of promoting economic prosperity and welfare, and the functions of the Bank in areas such as monetary policy, financial system stability, and central banking. The Act outlines the composition and responsibilities of the Bank's Boards, including the Monetary Policy Board, Payments System Board, and Governance Board, and mandates their roles in decision-making and policy formulation. It also details the appointment, terms, and duties of the Governor and Deputy Governor, as well as the requirements for Board members, such as making declarations of secrecy and allegiance. Obligations under the Act include the Reserve Bank's duty to act as the central bank, issue Australian notes, and contribute to financial system stability. The Act also establishes the Reserve Bank Service, detailing the appointment and engagement of staff and consultants. Offences and penalties are specified for violations, such as unauthorised note issuance by individuals or entities, with penalties including imprisonment and fines. The Act also includes provisions for secrecy and protection of sensitive information, with strict penalties for unauthorised disclosure. Finally, the Act addresses the validity of the Bank's acts and transactions, ensuring they are not challenged on the basis of non-compliance with the Act's provisions.
- Area of Law
- Central Banking
- Financial Regulation
- Instrument
- Act
- Concepts
- Commencement Provisions
- Repeal & Amendment
- Regulatory Standards
- Central Bank Functions
- Monetary Policy
- Financial System Stability
