Terrorism Insurance (Payments) Direction (No. 2) 2019
I, Michael Sukkar, Assistant Treasurer, give the following direction to the Australian Reinsurance Pool Corporation.
Dated 4 September 2019
Michael Sukkar
Assistant Treasurer
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 (No. 2) 2019.
2 Commencement
(1) Each provision of this 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Note: This table relates only to the provisions of this instrument as originally made.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;
(b) $35 million, as a capital holding fee;
(c) $10 million, as a temporary dividend.
(2) The payments are to be made to the Commonwealth on or before 31 March 2020 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 (No. 2) 2019, enacted under the Terrorism Insurance Act 2003, was introduced to address the financial obligations of the Australian Reinsurance Pool Corporation towards the Commonwealth. This legislative instrument was issued by Michael Sukkar, the Assistant Treasurer, to direct the Corporation to make specified payments to the Commonwealth by a certain date. The enactment of this instrument is crucial to ensure that the financial commitments agreed upon are met, thus maintaining the stability and trust in the reinsurance pool system. This direction aims to facilitate the timely transfer of funds to the Department of the Treasury, as outlined, thereby supporting the broader objectives of the Terrorism Insurance Act 2003.
Scope and Application
The Terrorism Insurance (Payments) Direction (No. 2) 2019 applies to the Australian Reinsurance Pool Corporation, as directed by Michael Sukkar, the Assistant Treasurer. This legislative instrument is made under the Terrorism Insurance Act 2003 and applies nationally across Australia. The direction mandates the Corporation to make specific payments to the Commonwealth, including a guarantee fee, a capital holding fee, and a temporary dividend. The payments are to be made by electronic transfer to a designated account of the Department of the Treasury by 31 March 2020. The instrument does not specify exclusions, exemptions, or thresholds but relies on the definitions and provisions outlined in the Terrorism Insurance Act 2003. The authority for this direction extends from the Act itself, and any amendments to the Act will correspondingly affect the interpretation of this instrument.
Key Provisions
The main operative sections of the Terrorism Insurance (Payments) Direction (No. 2) 2019 are outlined in Part 2, specifically in section 5. This section mandates the Australian Reinsurance Pool Corporation to make payments to the Commonwealth. The payments consist of a guarantee fee of $55 million (section 5(1)(a)), a capital holding fee of $35 million (section 5(1)(b)), and a temporary dividend of $10 million (section 5(1)(c)). The payments must be made by electronic transfer to a specified account of the Department of the Treasury by 31 March 2020 (section 5(2)).
The obligations imposed by this Direction on the Australian Reinsurance Pool Corporation are clear and straightforward. The Corporation is required to remit the specified amounts to the Commonwealth by the stipulated deadline. This includes ensuring the electronic transfer of the funds to the Department of the Treasury's account, which is detailed in section 5(2). The Direction provides specific instructions on the account name, BSB number, and account number to which the payments should be directed.
Failure to comply with the provisions of this Direction could have serious legal consequences. While the Direction itself does not explicitly state penalties for non-compliance, breaches of similar legislative directions under the Terrorism Insurance Act 2003 may result in civil or criminal penalties. Civil penalties can include fines and orders for restitution, while criminal penalties might include imprisonment, depending on the severity and intent of the breach. The maximum penalties would be determined by the relevant provisions of the Terrorism Insurance Act 2003, which could involve significant financial penalties and imprisonment terms for serious violations.