Reserve Bank Act 1973

Overview

The Reserve Bank Act 1973 was enacted to amend the existing Reserve Bank Act 1959-1966, updating its provisions to reflect changes in the legislative environment and to better serve the needs of the Australian financial system. This Act was passed by the Queen, the Senate, and the House of Representatives of Australia and received Royal Assent on 26 October 1973. The overarching objective of the Act was to refine the functions and scope of the Reserve Bank, including its interaction with other territories and financial associations, while ensuring that the legislative language remained clear and consistent. This amendment aimed to address the evolving needs of the financial sector, providing a more streamlined and effective framework for the Reserve Bank’s operations.

Scope and Application

The Reserve Bank Act 1973 amends and consolidates the original Reserve Bank Act 1959-1966, with provisions extending to all Australian territories, subject to any cessation declaration by the Treasurer. This Act applies to the Reserve Bank of Australia, its functions, and related entities, including associations of co-operative associations. The Act provides for formal amendments to the Principal Act, such as removing references to the Commonwealth and updating section numbers from words to figures, as well as other specified textual modifications. The application of the Act to territories can be modified through notices published in the Gazette, with specified provisions for such cessations. The Act’s amendments are detailed in the Schedule, ensuring clarity and precision in the legal framework governing the Reserve Bank’s operations.

Key Provisions

The Reserve Bank Act 1973 amends the Reserve Bank Act 1959-1966, with specific sections coming into operation on different dates. Section 5 of the Act is deemed to have commenced on 22 March 1971, while the remaining provisions come into effect upon receiving Royal Assent. Section 3 of the Principal Act is repealed, and Section 6 is repealed and replaced with new provisions that extend the Act's application to all territories, subject to certain conditions. The Treasurer has the authority to declare via a Gazette notice that the Act will cease to apply to an external territory, effective from a specified date. The amended Act imposes several obligations on parties and entities it governs. It broadens the scope of entities under the Department's purview by including "associations of co-operative associations" as referenced in paragraph (c) of Section 57(1). Additionally, the Act mandates formal amendments to various sections of the Principal Act, such as omitting references to "the Commonwealth" and replacing worded numbers with numerical figures. The Schedule details specific changes, including the omission of certain phrases and substitution of numerical values in various sections. Breaches of the provisions set forth in the Reserve Bank Act 1973 may result in both civil and criminal consequences. While the Act itself does not explicitly outline specific offences or penalties, associated regulations or subsidiary legislation could impose fines or other penalties for non-compliance. For instance, failure to adhere to the amended provisions regarding the Department's functions or the formal amendments could lead to enforcement actions, including potential fines or other sanctions as stipulated in relevant regulations. The exact nature and extent of penalties would depend on the specific provisions breached and the context of the non-compliance.