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Currency Amendment Bill 1980
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PARLIAMENT OF AUSTRALIA DEPARTMENT OF THE PARLIAMENTARY LIBRARY
CURRENCY AMENDMENT BILL 1980
Date Introduced: House: Presented by:
Purpose
20 March 1980 House of Representatives Hon. John Howard, M.P., Treasurer
Short Digest of Bill
To amend the Currency Act 1965 to empower the (~ Treasurer to issue gold coins of four denominations.
Background
In line with a revival of interest in gold in
recent years there has been a surge of interest ingold
coins minted by an increasing number of overseas countries. Apart from catering to the revived interests of coin
collectors and investors in bull ion, the issue of gold coins can be a significant revenue raising measure for the
governments concerned. The success of the South Afri can Krugerrand since its introduction in 1970 is probably the most spectacular example.
()
The Treasurer first announced the Austral ian Government's intention to issue a "collector" type gold coin of face value $100 and possibly also a "bullion" type gold coin, on 10 July 1979. The subsequent increase in, and
continuing volatility of, the price of gold has caused
practical problems for finalising details of the issue and minting of the coins. (The price of gold at the beginning
of July last year was about $A250 per ounce, rising to about $A750 at the end of January and is currently $A500 per
ounce. It is still fluctuating daily). However it has now
been decided that a "collector" coin of face value $200 will be issued and possibly also three bullion "investor" type coins of face values $100, $50 and $25 respectively.
The main difference between the "collector" type coin and the proposed "investor" type coin is that the
former, being intended for numismatic (coin collecting) purposes only, will be issued in batches at given times at
pri ces well above the actual worth of the gold content at
the time of issue, so that the Government earns a seignorage (i.e. a profit on the difference between the cost of
production and sale price). The -proposed "investor" type coin, on the other hand, is a means by which the Government can sell gold as such; the coins would be on sale
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continuously at prices marginally above the actual worth of their specified gold content at the time of sale.
As announced in the Treasurer's Second Reading Speech, the collector coin is expected to be released about September thi s year and the fi rst bull ion coi ns may be
released later in the year. (Some outstanding matters have still to be settled regarding the bullion coins).
Main Provisions
C1 ause 7 inserts a new sect ion 14A into the
Principal Act to provide for coins of denominations of $200, $100, $50 and $25 to be issued at the respect i ve pri ces -.)
determined from time to time by the Treasurer, or a delegate -
of the Treasurer.
The amendment proposed in C1 ause 6 provides that the denomination of the proposed $200 collector coin may be varied from time to time by regulation.
Clause 8 amends the legal tenders provisions to provide that the gold coins will be legal tender for the payment of a debt of any amount (on the basi s of the face value of the coin rather than its actual value).
Further explanation of these and other provisions in the Bill is contained in the Treasurer's Second Reading Speech.
27 March 1980
Finance. Industries. Trade & Development Group LEGISLATIVE RESEARCH SERVICE
