Overview

The Revocation of authority to carry on banking business 2025, which was enacted in 2025, applies to Australian Unity Bank Limited and revokes its section 9 authority to carry on banking business in Australia. This instrument is an official notice issued by Jane Magill, a delegate of the Australian Prudential Regulation Authority (APRA), under subsection 9A(1) of the Banking Act 1959. The revocation was made in response to a written request from Australian Unity Bank Limited and is effective from 28 November 2025. The policy objective behind the revocation is to ensure that it does not negatively impact the national interest or the interests of depositors of the bank. APRA is mandated to publish the notice of revocation in the Gazette, and may also choose to disseminate the notice through other means.

Scope and Application

The Revocation of Authority to Carry on Banking Business 2025, made under the Banking Act 1959, applies specifically to Australian Unity Bank Limited, a body corporate identified by its ABN 30 087 652 079. This legislative instrument pertains to the revocation of the bank's section 9 authority to conduct banking business in Australia, a decision executed by Jane Magill, a delegate of the Australian Prudential Regulation Authority (APRA). The revocation is effective from 28 November 2025, following the bank's written request to APRA and upon Magill's satisfaction that the revocation does not contravene the national interest or the interests of the bank's depositors. The instrument adheres to the jurisdictional scope of the Commonwealth of Australia, as administered by APRA, and mandates the publication of the revocation notice in the Gazette, with potential additional publications by APRA as deemed necessary.

Key Provisions

The Revocation of Authority to Carry on Banking Business 2025 (Gazette) outlines the revocation of Australian Unity Bank Limited's (AUL) section 9 authority to conduct banking business in Australia under the Banking Act 1959. This revocation follows a written request by AUL to the Australian Prudential Regulation Authority (APRA) and is effective from 28 November 2025 (s.1). The revocation is issued by Jane Magill, a delegate of APRA, under the authority granted by subsection 9A(1) of the Banking Act 1959. The authority to revoke the banking license is exercised on the condition that the revocation is deemed not to be against the national interest or the interests of AUL's depositors (s.2). The term 'banking business' and 'section 9 authority' are defined as per subsection 5(1) of the Act, ensuring clarity on the scope of the revoked authority. The Revocation of Authority to Carry on Banking Business 2025 imposes several obligations on AUL. Firstly, AUL must ensure it complies with the conditions set forth in the Banking Act 1959, including any notice requirements to APRA. Secondly, AUL must cease all banking operations in Australia as per the authority revoked. This includes halting any services or transactions that fall under the definition of banking business as per the Act. AUL must also notify its customers and stakeholders of the revocation and ensure that it has made adequate arrangements to protect the interests of depositors, which may involve transferring accounts or liquidating assets as necessary. Breach of the provisions set out in the Revocation of Authority to Carry on Banking Business 2025 can lead to severe consequences. AUL could face civil or criminal penalties if it continues to conduct banking business without the requisite authority. Under the Banking Act 1959, continuing to operate without the necessary license can result in fines or imprisonment. The exact penalties for such offences are determined by the severity and intent behind the breach, but they can include substantial fines and imprisonment terms as outlined in relevant sections of the Act. Furthermore, APRA may impose additional administrative penalties or require remedial actions to rectify the breach. These measures are intended to ensure compliance and uphold the integrity of Australia's banking regulations.