Treasury Laws Amendment (2020 Measures No. 3) (New Arrangements to Borrow) Instrument 2021
I, Michael Sukkar, Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing, make the following instrument.
Dated 17 March 2021
Michael Sukkar
Assistant Treasurer
Minister for Housing
Minister for Homelessness, Social and Community Housing
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
Part 2—Announcement—entry into force of International Monetary Fund Decision
4 Entry into force of Decision No. 16645‑(20/5)
Part 1—Preliminary
1 Name
This instrument is the Treasury Laws Amendment (2020 Measures No. 3) (New Arrangements to Borrow) Instrument 2021.
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Note: This table relates only to the provisions of this instrument as originally made.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 Treasury Laws Amendment (2020 Measures No. 3) Act 2020.
Part 2—Announcement—entry into force of International Monetary Fund Decision
4 Entry into force of Decision No. 16645‑(20/5)
For the purposes of item 3 of the table in section 2 of the Treasury Laws Amendment (2020 Measures No. 3) Act 2020, Decision No. 16645‑(20/5) of the Executive Board of the International Monetary Fund, dated 16 January 2020, came into force for Australia on 1 January 2021.
Overview
The Treasury Laws Amendment (2020 Measures No. 3) (New Arrangements to Borrow) Instrument 2021 (F2021N00044) was enacted to facilitate the entry into force of International Monetary Fund Decision No. 16645-(20/5) for Australia. This instrument, created under the authority of the Treasury Laws Amendment (2020 Measures No. 3) Act 2020, was introduced to address the need for Australia to comply with international financial arrangements set by the IMF. The policy objective behind this legislation is to ensure that Australia maintains its ability to borrow under the IMF’s New Arrangements to Borrow, thereby supporting the nation's financial stability and economic resilience. The instrument came into effect the day after its registration, as stipulated in the commencement provisions.
Scope and Application
The Treasury Laws Amendment (2020 Measures No. 3) (New Arrangements to Borrow) Instrument 2021 applies to the Australian government in relation to its borrowing arrangements with the International Monetary Fund (IMF). This instrument is a legislative tool made under the Treasury Laws Amendment (2020 Measures No. 3) Act 2020 and its application is limited to the entry into force of Decision No. 16645-(20/5) of the IMF's Executive Board, dated 16 January 2020, which became effective for Australia on 1 January 2021. The instrument is designed to facilitate the government's compliance with this IMF decision and is jurisdictional in scope, applying to the Commonwealth of Australia. The instrument does not specify any exclusions or exemptions, nor does it mention any thresholds that need to be met for its application. Any further specification or detail regarding the application of this instrument may be provided through subordinate instruments, which extend or restrict its application as necessary.
Key Provisions
The Treasury Laws Amendment (2020 Measures No. 3) (New Arrangements to Borrow) Instrument 2021 primarily consists of two parts, with the first part detailing preliminary information and the second part announcing the entry into force of an International Monetary Fund Decision. Section 1 specifies the name of the instrument, while Section 2 outlines the commencement of the instrument, which is effective the day after it is registered (Section 2(1)). Section 3 confirms the authority under which the instrument is made, referencing the Treasury Laws Amendment (2020 Measures No. 3) Act 2020.
The operative sections of this instrument, particularly Section 4, are concerned with the announcement that Decision No. 16645-(20/5) of the Executive Board of the International Monetary Fund has come into force for Australia on 1 January 2021. This section effectively updates the legal framework in alignment with international financial agreements and obligations.
Entities governed by this Act are required to adhere to the provisions concerning the entry into force of the IMF Decision. This includes ensuring compliance with any related financial or economic obligations stipulated by the Decision. The Act mandates that these entities must integrate the terms of the Decision into their operational frameworks, reflecting the new borrowing arrangements set out by the IMF.
Failure to comply with the provisions of this instrument may result in legal consequences. Although specific offences and penalties are not detailed within the Act itself, breaches of associated legislative instruments or related financial obligations could lead to civil or criminal penalties. The maximum penalties would depend on the specific breach and the relevant governing legislation, potentially including fines or other sanctions as prescribed by the relevant laws.