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Monday, 9 May 1994
Page: 432


Senator SHERRY (Parliamentary Secretary to the Minister for Primary Industries and Energy) (4.11 p.m.) —We are just checking on that matter for Senator Chapman. With respect to Senator Kernot's inquiry about the reason why clause 52 is in the bill, it is there quite simply to enforce the agreement at the state level. If clause 52 were not in the bill, it could be open to legal action in an attempt to enforce what has been agreed to at a state level.

  In relation to the proclamation date, I cannot give Senator Chapman a response. All I can suggest is that, when we have further advice on that matter, we will provide the information to him. I seek leave to move the government's amendments together.

  Leave granted.


Senator SHERRY —I move:

(1)Clause 36, page 15, before the definition of "transfer provision" insert the following definition:

"`re-transfer provision' means:

    (a)section 16 of the State Bank (Corporatisation) Act 1994 of South Australia; or

    (b)a corresponding provision of a law of another State or of a Territory;".

(2)Clause 37, page 15, at the end of the clause add the following subclause:

  "(2) For the purposes of section 66 of the Taxation Laws Amendment Act (No. 2) 1992, a unit of property that was acquired by Bank of South Australia Limited as a result of the operation of a transfer provision is taken to have been acquired by Bank of South Australia Limited under a contract entered into after 26 February 1992.".

(3)After clause 38, page 16, insert the following new clause:

Development allowance and general investment allowance—uncompleted contracts for the acquisition of property

  "38A.(1) This section applies to a unit of property if:

    (a)the State Bank of South Australia or a designated subsidiary of the State Bank of South Australia entered into a contract for the acquisition of the property; and

    (b)before the property was acquired by the State Bank of South Australia or the designated subsidiary, as the case may be, Bank of South Australia Limited acquired the rights under the contract as a result of the operation of a transfer provision; and

    (c)Bank of South Australia Limited acquired the property as a result of the performance of the contract.

  "(2) The provisions of Subdivisions B and BA of Division 3 of Part III of the Income Tax Assessment Act 1936 apply, and are taken always to have applied, as if expenditure of a capital nature incurred by the State Bank of South Australia, or the designated subsidiary, as the case may be, under the contract in respect of the proposed acquisition of the property had been incurred instead by Bank of South Australia Limited.".

(4)Heading to Subdivision B of Division 4 of Part 2.4, page 19, line 25, add at the end of the heading "or to a designated subsidiary of the State Bank of South Australia".

(5)Clause 45, page 19, paragraph (a), line 30, insert ", or to a designated subsidiary of the State Bank of South Australia,'' before "under a re-transfer provision".

(6)Clause 45, page 19, paragraph (c), line 35, omit "the State Bank of South Australia", substitute "Bank of South Australia Limited".

(7)Clause 46, page 20, omit the clause, substitute the following clauses:

Eligible tax file number information may be disclosed to the State Bank of South Australia

  "46.(1) This section applies if the investment is transferred, or is proposed to be transferred, to the State Bank of South Australia.

  "(2) Bank of South Australia Limited may disclose the eligible tax file number information in relation to the investment to the State Bank of South Australia if:

    (a)at least 22 days before the disclosure, Bank of South Australia Limited sends the investor a notice under section 47 about the proposed disclosure; and

    (b)the investor does not object to the disclosure in accordance with the notice.

Eligible tax file number information may be disclosed to a designated subsidiary of the State Bank of South Australia

  "46A.(1) This section applies if the investment is transferred, or is proposed to be transferred, to a designated subsidiary of the State Bank of South Australia.

  "(2) Bank of South Australia Limited may disclose the eligible tax file number information in relation to the investment to the designated subsidiary if:

    (a)at least 22 days before the disclosure, Bank of South Australia Limited sends the investor a notice under section 47 about the proposed disclosure; and

    (b)the investor does not object to the disclosure in accordance with the notice.".

(8)Clause 47, page 20, omit the clause, substitute the following clause:

Notices telling investors about proposed transfer of eligible tax file number information and inviting objections

  "47. Bank of South Australia Limited may send an investor a notice, in a form approved by the Commissioner, that:

  (a)states that Bank of South Australia Limited proposes to disclose specified kinds of eligible tax file number information to the State Bank of South Australia or to a designated subsidiary of the State Bank of South Australia; and

  (b)states that the investor may give Bank of South Australia a written objection within 21 days after:

      (i)if the notice is sent by post—the day on which the notice is posted; or

      (ii)if the notice is sent by being delivered to the investor personally—the day of delivery; or

      (iii)if the notice is sent by being left at a particular place or address—the day on which the notice is left at that place or address; and

  (c)states that if the investor lodges such an objection, the information will not be disclosed to the State Bank of South Australia, or to the designated subsidiary, as the case requires; and

  (d)contains such additional information as is required by the form.

Note: Section 28A of the Acts Interpretation Act 1901 sets out the methods of sending notices.".

(9)Clause 48, page 20, subclause (l), line 32, insert ", or to a designated subsidiary of the State Bank of South Australia," before "under this Subdivision".

(10)Clause 48, page 20, paragraph (1)(a), line 36, insert "or to the designated subsidiary, as the case requires," before "under Division 4".

(11)Clause 48, page 21, paragraph (2)(a), line 7, insert ", or to a designated subsidiary of the State Bank of South Australia," before "under this Subdivision".

(12)Clause 49, page 21, at the end of the clause add the following subclause:

  "(2) If information covered by paragraph 40(e) is disclosed to a designated subsidiary of the State Bank of South Australia under this Subdivision, subsection 202EC(4) of the Income Tax Assessment Act 1936 has effect as if the reference in that subsection to subsection 202EC(1) of that Act included a reference to section 46A of this Act.".

(13)After clause 60, page 25, insert the following new Parts:

"PART 3.1A—AMENDMENT OF THE FINANCIAL TRANSACTION REPORTS ACT 1988

  Object of Part

  "60A. The object of this Part is to facilitate the transfer of accounts between banks by requiring or authorising the transfer of certain records relating to those accounts.

  Principal Act

  "60B. In this Part, `Principal Act' means the Financial Transaction Reports Act 1988.

  Insertion of new sections

  "60C. After section 23 of the Principal Act the following sections are inserted:

Active bank accounts transferred to another bank—obligations of banks in relation to records of information

When section applies

`23A.(1) This section applies to a record of information if:

  (a)the record is in the possession of a bank (the "transferor bank") in fulfilment of an obligation imposed on the transferor bank by subsection 23(1) or (7); and

  (b)the record relates wholly or partly to an account (the "transferred account") that has been, or is proposed to be, transferred to another bank (the "transferee bank") under:

      (i)a law of the Commonwealth or of a State or Territory; or

      (ii)an arrangement between the transferor bank and the transferee bank.

Transferor bank to give records to transferee bank

  `(2) The transferor bank must comply with whichever of the following rules is applicable:

  (a)if the record relates wholly to the transferred account—the transferor bank must give the record to the transferee bank within the 120-day period beginning 30 days before the transfer;

  (b)if the record relates partly to the transferred account and partly to an account that is not so transferred or proposed to be so transferred—the transferor bank must:

      (i)make a copy of so much of the record as relates to the transferred account; and

      (ii)give the copy to the transferee bank;

  within the 120-day period beginning 30 days before the transfer.

Offence

  `(3) A person who intentionally or recklessly contravenes subsection (2) is guilty of an offence punishable on conviction by a fine not exceeding 10 penalty units.

Transferor bank released from obligations under section 23

  `(4) If the transferor bank complies with subsection (2) of this section in relation to the record, the transferor bank; does not contravene section 23 in relation to so much of the record as relates to the transferred account.

Obligations of transferee bank—section 23

  `(5) If the transferee bank is given a document under subsection (2) of this section, section 23 applies to the transferee bank in relation to the document as if the document were a record made or obtained by the transferee bank in the course of obtaining account information or signatory information about the transferred account.

Certain records to be treated as identification records in the hands of the transferee bank

  `(6) If the transferee bank is given a document under subsection (2) of this section, section 20A applies to the transferee bank in relation to the document as follows:

  (a)if the document (or its original) was covered by paragraph 20A(l)(a)—as if the document were an identification reference for the signatory to the transferred account;

  (b)if the document (or its original) was covered by subparagraph 20A(1)(b)(i)—as if:

      (i)the transferee bank had carried out the prescribed verification procedure (within the meaning of that subparagraph) to identify the signatory to the transferred account; and

      (ii)the document were a record of that procedure;

  (c)if the document (or its original) was covered by subparagraph 20A(1)(b)(ii)—as if:

      (i)the transferee bank had carried out a verification procedure to identify the signatory to the transferred account; and

      (ii)the procedure had been approved by the Director for the transferee bank; and

      (iii)the document were a record of that procedure.

Definition

`(7) In this section: "record"

includes a copy of a record.

Closed bank accounts transferred to another bank—obligations of banks in relation to records of information

When section applies

  "23B.(1) This section applies to a record of information if:

  (a)the record is in the possession of a bank (the "transferor bank") in fulfilment of an obligation imposed on the transferor bank by subsection 23(1) or (7); and

  (b)the record relates wholly or partly to a closed account; and

  (c)the transferor bank complies with an obligation imposed on it under subsection 23A(2) in relation to another bank (the "transferee bank") during the 120-day period mentioned in that subsection; and

  (d)the transferor bank and the transferee bank agree in writing that so much of the record as relates to the closed account should be transferred by the transferor bank to the transferee bank during that 120-day period.

Transferor bank may give records to transferee bank

  `(2) The transferor bank may:

  (a)if the record relates wholly to the closed account—give the record to the transferee bank within that 120-day period; or

  (b)if the record relate, partly to the closed account and partly to some other account (whether active or otherwise):

      (i)make a copy of so much of the record as relates to the closed account; and

      (ii)give the copy to the transferee bank;

    within that 120-day period.

Transferor bank released from obligations under section 23

  `(3) If the transferor bank gives a document to the transferee bank under subsection (2) of this section, the transferor bank does not contravene section 23 in relation to so much of the document as relates to the closed account.

Obligations of transferee bank—section 23

  `(4) If the transferee bank is given a document under subsection (2) of this section, section 23 applies to the transferee bank in relation to the document as if the document were a record made or obtained by the transferee bank in the course of obtaining account information or signatory information about the closed account.

Certain records to be treated as identification records in the hands of the transferee bank

  `(5) If the transferee bank: is given a document under subsection (2) of this section, section 20A applies to the transferee bank in relation to the document as follows:

  (a)if the document (or its original) was covered by paragraph 20A(1)(a)—as if the document were an identification reference for the signatory to the closed account;

  (b)if the document (or its original) was covered by subparagraph 20A(1)(b)(i)—as if:

      (i)the transferee bank had carried out the prescribed verification procedure (within the meaning of that subparagraph) to identify the signatory to the closed account; and

      (ii)the document were a record of that procedure;

  (c)if the document (or its original) was covered by subparagraph 20A(l)(b)(ii)—as if:

      (i)the transferee bank had carried out a verification procedure to identify the signatory to the closed account; and

      (ii)the procedure had been approved by the Director for the transferee bank; and

      (iii)the document were a record of that procedure.

Definition

  `(6) In this section:

"record" includes a copy of a record.'.

"PART 3.1B—AMENDMENT OF THE PROCEEDS OF CRIME ACT 1987

Object of Part

  "60D. The object of this Part is to facilitate the transfer of accounts between banks by requiring or authorising the transfer of certain documents relating to those accounts.

Principal Act

  "60E. In this Part, `Principal Act' means the Proceeds of Crime Act 1987.

Insertion of new sections

  "60F. After section 78 of the Principal Act the following sections are inserted:

Active bank accounts transferred to another bank—obligations of banks in relation to documents

When section applies

  `78A.(1) This section applies to a document if:

  (a)the document is in the possession of a bank (the "transferor bank") in fulfilment of an obligation imposed on the transferor bank by subsection 77(1), (2) or (3) or 78(1); and

  (b)the document relates to an account (the "transferred account") that has been, or is proposed to be, transferred to another bank (the "transferee bank") under:

      (i)a law of the Commonwealth or of a State or Territory; or

      (ii)an arrangement between the transferor bank and the transferee bank.

Transferor bank to give documents to transferee bank

  `(2) The transferor bank must give the document to the transferee bank within the 120-day period beginning 30 days before the transfer.

Offence

  `(3) A person who intentionally or recklessly contravenes subsection (2) is guilty of an offence punishable on conviction by a fine not exceeding 10 penalty units.

Transferor bank released from obligations under sections 77 and 78

  `(4) If the transferor bank complies with subsection (2) of this section in relation to the document, the transferor bank does not contravene section 77 or 78 in relation to the document.

Obligations of transferee bank—sections 77 and 78

  `(5) If the transferee bank is given a document under subsection (2) of this section, this Division applies to the transferee bank in relation to the document as follows:

  (a)if the document was covered by subsection 77(1) or 78(1)—as if the document were an essential customer generated financial transaction document in relation to the transferee bank;

  (b)if the document was covered by subsection 77(2)—as if the document were a customer generated financial transaction document in relation to the transferee bank and were not an essential customer generated financial transaction document;

  (c)if the document was covered by subsection 77(3)—as if the document were a financial transaction document in relation to the transferee bank and were a document:

      (i)that is not a customer generated financial transaction document; and

      (ii)whose retention is necessary to preserve a record of the financial transaction concerned;

  (d)in any case—as if the minimum retention period applicable to the document were the period of 7 years after the day on which the transferred account is closed.

Definition

  `(6) In this section:

"document" includes a copy of a document.

Closed bank accounts transferred to another bank—obligations of banks in relation to documents

When section applies

  "78B.(1) This section applies to a document if:

  (a)the document is in the possession of a bank (the "transferor bank") in fulfilment of an obligation imposed on the transferor bank by subsection 77(1), (2) or (3) or 78(1); and

  (b) the document relates to a closed account; and

  (c)the transferor bank complies with an obligation imposed on it under subsection 78A(2) in relation to another bank (the "transferee bank") during the 120-day period mentioned in that subsection; and

  (d)the transferor bank and the transferee bank agree in writing that the document should be transferred by the transferor bank to the transferee bank during that 120-day period.

Transferor bank may give documents to transferee bank

  `(2) The transferor bank may give the document to the transferee bank within that 120-day period.

Transferor bank released from obligations under sections 77 and 78

  `(3) If the transferor bank gives a document to the transferee bank under subsection (2) of this section, the transferor bank does not contravene section 77 or 78 in relation to the document.

Obligations of transferee bank—sections 77 and 78

  `(4) If the transferee bank is given a document under subsection (2) of this section, this Division applies to the transferee bank in relation to the document as follows:

  (a)if the document was covered by subsection 77(1) or 78(1)—as if the document were an essential customer generated financial transaction document in relation to the transferee bank;

  (b)if the document was covered by subsection 77(2)—as if the document were a customer generated financial transaction document in relation to the transferee bank and were not an essential customer generated financial transaction document;

  (c)if the document was covered by subsection 77(3)—as if the document were a financial transaction document in relation to the transferee bank and were a document:

      (i)that is not a customer generated financial transaction document; and

      (ii)whose retention is necessary to preserve a record of the financial transaction concerned;

  (d)in any case—as if the minimum retention period applicable to the document were the period of 7 years after the day on which the closed account was closed.

Definition

  `(5) In this section:

"document" includes a copy of a document.'.".

  Amendments agreed to.

  Bill, as amended, agreed to.

  Bill reported with amendments; report adopted.