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BANKING (STATE BANK OF SOUTH AUSTRALIA AND OTHER MATTERS) BILL 1994

Order of the day read for the further consideration of the bill in

committee of the whole.

In the committee

Explanatory memorandum: The Parliamentary Secretary to the Minister for

Primary Industries and Energy (Senator Sherry) tabled a supplementary

explanatory memorandum relating to the Government amendments to be moved

to the bill.

Bill further debated.

On the motion of Senator Sherry the following amendments, taken together

by leave, were agreed to:

Clause 36, page 15, before 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;".

Clause 37, page 15, at end of 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.".

After clause 38, page 16, insert the following 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 acquisitionof 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.".

Heading to Subdivision B of Division 4 of Part 2.4, page 19, line 25, at

end of heading, add "or to a designated subsidiary of the State Bank of

South Australia".

Clause 45, page 19, paragraph (a), line 30, before "under a re-transfer

provision.", insert ", or to a designated subsidiary of the State Bank

of South Australia,".

Clause 45, page 19, paragraph (c), line 35, omit "the State Bank of

South Australia", substitute "Bank of South Australia Limited".

Clause 46, page 20 lines 1 to 10, 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.".

Clause 47, page 20, lines 11 to 28, 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

Limited 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.".

Clause 48, page 20, subclause (1), line 32, before "under this

Subdivision", insert ", or to a designated subsidiary of the State Bank

of South Australia,".

Clause 48, page 20, paragraph (1)(a), line 36, before "under Division

4", insert "or to the designated subsidiary, as the case requires,".

Clause 48, page 21, paragraph (2)(a), line 7, before "under this

Subdivision", insert ", or to a designated subsidiary of the State Bank

of South Australia,".

Clause 49, page 21, at end of 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.".

After clause 60, page 25, insert the following 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 19881A.

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(1)(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

subparagraph20A(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 relates 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

subparagraph20A(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

subparagraph20A(1)(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

19871B.

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.'.".

Bill, as amended, agreed to.

Bill to be reported with amendments.

The Acting Deputy President (Senator Colston) resumed the Chair and the

Temporary Chairman of Committees (Senator McGauran) reported

accordingly.

On the motion of Senator Sherry the report from the committee was

adopted and the bill read a third time.