Terrorism Insurance (Payments) Direction 2022
I, Michael Sukkar, Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing, give the following direction to the Australian Reinsurance Pool Corporation.
Dated 10 March 2022
Michael Sukkar
Assistant Treasurer
Minister for Housing
Minister for Homelessness, Social and Community Housing
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Definitions
Part 2—Direction to make payments
5 Payments to the Commonwealth
Part 1—Preliminary
1 Name
This instrument is the Terrorism Insurance (Payments) Direction 2022.
2 Commencement
(1) Each provision of instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the Terrorism Insurance Act 2003.
4 Definitions
Note: Paragraph 13(1)(b) of the Legislation Act 2003 has the effect that expressions have the same meaning in this instrument as in the Terrorism Insurance Act 2003 as in force from time to time.
In this instrument:
the Act means the Terrorism Insurance Act 2003.
Part 2—Direction to make payments
5 Payments to the Commonwealth
(1) Under section 38 of the Act, the Corporation is directed to make each of the following payments to the Commonwealth:
(a) $55 million, as a guarantee fee; and
(b) $35 million, as a capital holding fee.
(2) The payments are to be made to the Commonwealth on or before 31 March 2022 by electronic transfer to:
Account name—Department of the Treasury Official Administered Receipts Account
BSB—092‑009
Account Number—918 379
Overview
The Terrorism Insurance (Payments) Direction 2022, issued by Michael Sukkar, Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing, was enacted to direct the Australian Reinsurance Pool Corporation to make specified payments to the Commonwealth. This direction was made under the Terrorism Insurance Act 2003, with the aim of providing financial support to the government. The instrument commenced the day after its registration and mandates the payment of $55 million as a guarantee fee and $35 million as a capital holding fee, to be completed by 31 March 2022 via electronic transfer to a designated Treasury account. The policy objective of this direction is to ensure the government receives necessary funding from the reinsurance pool in a timely manner.
Scope and Application
The Terrorism Insurance (Payments) Direction 2022I, issued by Michael Sukkar, the Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing, applies to the Australian Reinsurance Pool Corporation under the Terrorism Insurance Act 2003. The direction mandates specific financial payments to the Commonwealth and is geographically applicable within Australia. It is effective from the day after the instrument is registered, as outlined in the commencement section. The direction requires the Corporation to remit a guarantee fee of $55 million and a capital holding fee of $35 million to the Commonwealth by electronic transfer to a specified account by 31 March 2022. The scope of the direction is confined to these payments, and any additional provisions or modifications are to be addressed through subordinate instruments. The terms and definitions used in the direction align with those in the Terrorism Insurance Act 2003, ensuring consistency in interpretation and application.
Key Provisions
The Terrorism Insurance (Payments) Direction 2022 (F2022N00056) directs the Australian Reinsurance Pool Corporation to make specific payments to the Commonwealth. Under section 38 of the Terrorism Insurance Act 2003, the Corporation is required to make two payments: a $55 million guarantee fee and a $35 million capital holding fee. These payments are to be completed by 31 March 2022, via electronic transfer to the Department of the Treasury Official Administered Receipts Account, with the provided BSB and account number.
The Corporation must adhere to the direction's requirements, ensuring the payments are made on time and through the specified account. Failure to comply with the direction may have legal consequences, though specific penalties or remedies are not detailed in the direction itself. Instead, the Terrorism Insurance Act 2003 and other relevant legislation would govern any penalties or enforcement actions.
The direction imposes clear obligations on the Corporation to ensure timely and accurate payments to the Commonwealth. This includes ensuring the correct account details are used for the electronic transfer and that the payments are made by the stipulated date. Additionally, the Corporation must maintain records and documentation to prove compliance with the direction, should it be required in any legal or administrative proceedings.
There are no explicitly stated offences or penalties for breaching this direction within the document. However, the direction is made under the authority of the Terrorism Insurance Act 2003, which may contain provisions for penalties and enforcement actions in the event of non-compliance. The specific penalties for breaches of the Terrorism Insurance Act 2003 or related directions would be determined by the courts and could include fines, legal actions, or other administrative sanctions. It is essential for the Corporation to comply with the direction to avoid any potential legal consequences.