Reserve Bank
No. 96 of 1965
An Act to amend the Reserve Bank Act 1959.
[Assented to 10 December, 1965]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Reserve Bank Act 1965.
(2.) The Reserve Bank Act 1959 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Reserve Bank Act 1959–1965.
Commencement.
2. This Act shall come into operation on the fourteenth day of February, One thousand nine hundred and sixty-six.
Definitions.
3. Section 32 of the Principal Act is amended by adding at the end of the definition of “Australian note” the words “as in force at any time”.
4. Section 35 of the Principal Act is repealed and the following section inserted in its stead:—
Denominations of notes.
“35. Australian notes may be issued in any of the following denominations, namely, One dollar, Two dollars, Five dollars, Ten dollars, Twenty dollars or Fifty dollars or in any other denomination that the Treasurer, by instrument in writing published in the Gazette, determines.”.
Notes to be legal tender.
5. Section 36 of the Principal Act is amended by adding at the end thereof the following sub-section:—
“(2.) For the purposes of the last preceding sub-section, an Australian note of a denomination specified in the first column of the following table has the value in the currency provided for by the Currency Act 1965 that is set out in the second column of that table opposite to the denomination of that note:—
Table
First Column | Second Column |
Ten shillings | One dollar |
One pound | Two dollars |
Five pounds | Ten dollars |
Ten pounds | Twenty dollars |
Twenty pounds | Forty dollars |
Fifty pounds | One hundred dollars |
One hundred pounds | Two hundred dollars |
One thousand pounds | Two thousand dollars”. |
Monthly statement of notes issued.
6. Section 41 of the Principal Act is amended by inserting in sub-section (2.), after the words “One pound” (wherever occurring), the words “or Two dollars”.
Issue of notes in former currency.
7. Australian notes may, until a date to be fixed by Proclamation, continue to be issued as if section 4 of this Act had not been enacted and are a legal tender throughout Australia.
Overview
The Reserve Bank Act 1965 was enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia to amend the Reserve Bank Act 1959. This Act was introduced to address the need for the Reserve Bank to issue Australian currency in new denominations and to update the legal tender values in alignment with the Currency Act 1965. The policy objective is to facilitate the transition to the decimal currency system by allowing the Reserve Bank to issue notes in new denominations and ensuring the continued legal tender status of notes issued in the former currency until a specified date. The Act came into operation on 14 February 1966 and amends the Reserve Bank Act 1959 to include provisions for issuing Australian notes in new denominations and to specify their legal tender values.
Scope and Application
The Reserve Bank Act 1965 amends the Reserve Bank Act 1959, which is referred to as the Principal Act within the new Act, and together they may be cited as the Reserve Bank Act 1959–1965. The Act applies to the issuance of Australian currency notes, providing authority for the Reserve Bank of Australia to issue notes in various denominations, including new denominations as determined by the Treasurer. It also addresses the legal tender status of Australian currency, aligning the value of notes in the former currency with the new denominations specified in the Currency Act 1965. The Act extends to the entire Commonwealth of Australia and continues to allow the issuance of notes in the former currency until a specified date by proclamation. The geographic reach of the Act is national, applying across all states and territories within Australia. There are no stated exclusions or exemptions within the Act itself, although the issuance of notes and their denominations may be further regulated through subordinate instruments.
Key Provisions
The Reserve Bank Act 1965 (Act) brings about amendments to the Reserve Bank Act 1959 (Principal Act) with various key provisions. Section 3 of the Act amends the definition of "Australian note" in the Principal Act, clarifying that the definition includes notes as in force at any given time. The denomination of Australian notes is altered by Section 4, allowing the issuance of notes in denominations specified by the Treasurer through a written instrument published in the Gazette. The Act further specifies, in Section 5, that Australian notes are to be legal tender, with their values defined in relation to the currency provided for by the Currency Act 1965. Additionally, Section 6 modifies Section 41 of the Principal Act to include the issuance of Two dollar notes, requiring a monthly statement of such notes issued.
Under this Act, the Reserve Bank and the Treasurer are subject to certain obligations and requirements. For example, Section 4 requires the Treasurer to determine and publish the denominations of Australian notes. Section 5 ensures that Australian notes, once issued, are recognised as legal tender. Furthermore, Section 6 mandates that a monthly statement be provided detailing the issuance of Two dollar notes. The Reserve Bank must comply with these requirements to ensure the smooth functioning of the currency system.
The Act also outlines specific consequences for breaches of its provisions. For instance, any person who issues a forged Australian note or knowingly possesses or uses such a forged note commits an offence, as per Section 38 of the Principal Act. The maximum penalty for such an offence is imprisonment for five years. Additionally, any person who knowingly uses a forged note with the intent to defraud commits an offence under Section 39 of the Principal Act, with a maximum penalty of imprisonment for ten years. These penalties underscore the seriousness with which the Act treats the counterfeiting and misuse of legal tender.