Title Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Bill 2020
Database Bills & Legislation
Long Title a Bill for an Act about loan guarantees, and for related purposes
Date 23-03-2020 10:01 PM
Source House of Reps
Parl No. 46
Bill Number 43/20
Bill Type Government
Portfolio Treasury
Reps Bill Code M
Status Act
System Id legislation/bills/r6529_aspassed/0000


Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Bill 2020
</head> <body lang="EN-AU" link="blue" vlink="blue"> <div class="WordSection1"> <p class="Session">2019‑2020</p> <p class="MsoNormal"><span style="font-size:14.0pt"> </span></p> <p class="MsoNormal"><span style="font-size:14.0pt">The Parliament of the</span></p> <p class="MsoNormal"><span style="font-size:14.0pt">Commonwealth of Australia</span></p> <p class="MsoNormal"><span style="font-size:14.0pt"> </span></p> <p class="House">HOUSE OF REPRESENTATIVES</p> <p class="MsoNormal"> </p> <p class="MsoNormal"> </p> <p class="MsoNormal"> </p> <p class="MsoNormal"> </p> <p class="Reading">As passed by both Houses</p> <p class="MsoNormal"><span style="font-size:9.5pt"> </span></p> <p class="MsoNormal"><span style="font-size:9.5pt"> </span></p> <p class="MsoNormal"><span style="font-size:9.5pt"> </span></p> <p class="MsoNormal"><span style="font-size:9.5pt"> </span></p> <p class="ShortT">Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Bill<a name="BK_S1P1L18C32"/> 2020</p> <p class="MsoNormal"> </p> <p class="Actno">No.      , 2020</p> <p class="MsoNormal"> </p> <p class="MsoNormal"><a name="BK_S1P1L26C1"/> </p> <p class="MsoNormal"> </p> <p class="MsoNormal"> </p> <p class="MsoNormal"> </p> <p class="LongT">A Bill for an Act about loan guarantees, and for related purposes</p> <p class="MsoHeader"><span class="CharChapNo"> </span><span class="CharChapText"> </span></p> <p class="MsoHeader"><span class="CharPartNo"> </span><span class="CharPartText"> </span></p> <p class="MsoHeader"><span class="CharDivNo"> </span><span class="CharDivText"> </span></p> </div> <span style="font-size:11.0pt;font-family:"Times New Roman","serif""><br clear="all" style="page-break-before:always"/></span> <div class="WordSection2"> <p class="MsoNormal"><span style="font-size:18.0pt">Contents</span></p> <p class="MsoToc5"><a name="BKCheck15B_1"/>1............ Short title............................................................................................. 1</p> <p class="MsoToc5">2............ Commencement................................................................................... 1</p> <p class="MsoToc5">3............ Simplified outline of this Act.............................................................. 2</p> <p class="MsoToc5">4............ Definitions.......................................................................................... 2</p> <p class="MsoToc5">5............ Loan guarantees by the Commonwealth.............................................. 3</p> <p class="MsoToc5">6............ Appropriation for the purposes of loan guarantee liabilities................ 3</p> <p class="MsoToc5">7............ Delegation by the Minister.................................................................. 4</p> <p class="MsoToc5">8............ Legislative rules.................................................................................. 4</p> <p class="MsoNormal"> </p> </div> <span style="font-size:11.0pt;font-family:"Times New Roman","serif""><br clear="all" style="page-break-before:always"/></span> <div class="WordSection3"> <p class="Page1">A Bill for an Act about loan guarantees, and for related purposes</p> <p class="MsoNormal" style="margin-top:12.0pt;line-height:normal"> <span style="font-size:16.0pt">The Parliament of Australia enacts:</span></p> <opc-section depth="0" ref="e615351e4d1c4fdb8bdf29136c57904c" title="1  Short title"><a name="e615351e4d1c4fdb8bdf29136c57904c"/><p class="ActHead5"><a name="_Toc35692759"><span class="CharSectno">1</span>  Short title</a></p> <p class="subsection">                    This Act is the <i>Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020</i>.</p> </opc-section><opc-section depth="0" ref="2c246daea8ba4808af223a416b303163" title="2  Commencement"><a name="2c246daea8ba4808af223a416b303163"/><p class="ActHead5"><a name="_Toc35692760"><span class="CharSectno">2</span>  Commencement</a></p> <p class="subsection">              (1)  Each provision of this Act 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.</p> <p class="Tabletext"> </p> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="margin-left:5.35pt;border-collapse:collapse;border:none"> <thead> <tr> <td width="474" colspan="3" valign="top" style="width:355.55pt;border-top:solid windowtext 1.5pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; padding:0cm 5.35pt 0cm 5.35pt"> <p class="TableHeading">Commencement information</p> </td> </tr> <tr> <td width="113" valign="top" style="width:3.0cm;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt"> <p class="TableHeading">Column 1</p> </td> <td width="255" valign="top" style="width:191.4pt;border:none;border-bottom: solid windowtext 1.0pt;padding:0cm 5.35pt 0cm 5.35pt"> <p class="TableHeading">Column 2</p> </td> <td width="105" valign="top" style="width:79.1pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt"> <p class="TableHeading">Column 3</p> </td> </tr> <tr> <td width="113" valign="top" style="width:3.0cm;border:none;border-bottom:solid windowtext 1.5pt; padding:0cm 5.35pt 0cm 5.35pt"> <p class="TableHeading">Provisions</p> </td> <td width="255" valign="top" style="width:191.4pt;border:none;border-bottom: solid windowtext 1.5pt;padding:0cm 5.35pt 0cm 5.35pt"> <p class="TableHeading">Commencement</p> </td> <td width="105" valign="top" style="width:79.1pt;border:none;border-bottom:solid windowtext 1.5pt; padding:0cm 5.35pt 0cm 5.35pt"> <p class="TableHeading">Date/Details</p> </td> </tr> </thead> <tr> <td width="113" valign="top" style="width:3.0cm;border:none;border-bottom:solid windowtext 1.5pt; padding:0cm 5.35pt 0cm 5.35pt"> <p class="Tabletext">1.  The whole of this Act</p> </td> <td width="255" valign="top" style="width:191.4pt;border:none;border-bottom:solid windowtext 1.5pt; padding:0cm 5.35pt 0cm 5.35pt"> <p class="Tabletext">The day after this Act receives the Royal Assent<a name="BK_S3P2L8C7"/>.</p> </td> <td width="105" valign="top" style="width:79.1pt;border:none;border-bottom:solid windowtext 1.5pt; padding:0cm 5.35pt 0cm 5.35pt"> <p class="Tabletext"> </p> </td> </tr> </table> <p class="notetext"><span style="layout-grid-mode:line">Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.</span></p> <p class="subsection">              (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.</p> </opc-section><opc-section depth="0" ref="39e6bedccd714eb9a7487ff66b31807c" title="3  Simplified outline of this Act"><a name="39e6bedccd714eb9a7487ff66b31807c"/><p class="ActHead5"><a name="_Toc35692761"><span class="CharSectno">3</span>  Simplified outline of this Act</a></p> <div style="border:solid windowtext 1.0pt;padding:5.0pt 5.0pt 5.0pt 5.0pt; margin-left:2.0cm;margin-right:0cm"> <p class="SOBullet" style="margin-left:21.25pt"> •      <a name="BK_S3P2L16C3"/>The Minister may, on behalf of the Commonwealth, grant a guarantee to a financial institution in connection with loans made, or to be made, by the financial institution to SME entities if granting the guarantee is likely to assist in dealing with the economic impacts of the Coronavirus known as COVID‑19.</p> <p class="SOBullet" style="margin-left:21.25pt"> •      The Consolidated Revenue Fund<a name="BK_S3P2L22C32"/> is appropriated for the purposes of meeting any liabilities that the Commonwealth incurs under those guarantees.</p> </div> </opc-section><opc-section depth="0" ref="6782b1b27e7a4652beebb8944a618dca" title="4  Definitions"><a name="6782b1b27e7a4652beebb8944a618dca"/><p class="ActHead5"><a name="_Toc35692762"><span class="CharSectno">4</span>  Definitions</a></p> <p class="subsection">                    In this Act:</p> <p class="Definition"><b><i>constitutional corporation</i><a name="BK_S3P2L27C27"/></b> means a corporation<a name="BK_S3P2L27C47"/> to which paragraph 51(xx) of the Constitution applies.</p> <p class="Definition"><b><i>financial institution</i></b> means:</p> <p class="paragraph">                      (a)  a body corporate that is an ADI for the purposes of the <i>Banking Act 1959</i>; or</p> <p class="paragraph">                      (b)  a non‑ADI lender (within the meaning of the <i>Banking Act 1959</i>).</p> <p class="Definition"><b><i>legislative rules</i></b> means rules made under section 8.</p> <p class="Definition"><b><i>SME entity</i></b> has the meaning given by the legislative rules.</p> </opc-section><opc-section depth="0" ref="1e89c35e602247f685246fd9915c6e1c" title="5  Loan guarantees by the Commonwealth"><a name="1e89c35e602247f685246fd9915c6e1c"/><p class="ActHead5"><a name="_Toc35692763"><span class="CharSectno">5</span>  Loan guarantees by the Commonwealth</a></p> <p class="subsection">              (1)  The Minister may, on behalf of the Commonwealth, grant a guarantee to a financial institution in connection with loans made, or to be made, by the financial institution to SME entities.</p> <p class="subsection">              (2)  The Minister must not grant a guarantee unless:</p> <p class="paragraph">                      (a)  the Minister is satisfied that granting the guarantee is likely to assist in dealing with the economic impacts of the Coronavirus known as COVID‑19; and</p> <p class="paragraph">                      (b)  the guarantee is in connection with loans made, or to be made, by a financial institution that is a constitutional corporation.</p> <p class="subsection">              (3)  The grant of a guarantee must be in accordance with any requirements prescribed by the legislative rules.</p> <p class="subsection">              (4)  For the purposes of the application of this section to a loan made by a financial institution, it is immaterial whether the loan was made before, at or after the commencement of this section.</p> </opc-section><opc-section depth="0" ref="59f5158de73a4e519435e3078fafe2b5" title="6  Appropriation for the purposes of loan guarantee liabilities"><a name="59f5158de73a4e519435e3078fafe2b5"/><p class="ActHead5"><a name="_Toc35692764"><span class="CharSectno">6</span>  Appropriation for the purposes of loan guarantee liabilities</a></p> <p class="subsection">              (1)  The Consolidated Revenue Fund is appropriated for the purposes of meeting any liabilities that the Commonwealth incurs under guarantees granted under section 5.</p> <p class="subsection">              (2)  The total amount appropriated under subsection (1) must not exceed $20 billion.</p> </opc-section><opc-section depth="0" ref="7f2b58cfee0c433993a07d2dea6f4e6a" title="7  Delegation by the Minister"><a name="7f2b58cfee0c433993a07d2dea6f4e6a"/><p class="ActHead5"><a name="_Toc35692765"><span class="CharSectno">7</span>  Delegation by the Minister</a></p> <p class="subsection">              (1)  The Minister may, by writi<a name="BK_S3P4L2C32"/>ng, delegate any or all of the Minister’s powers under section 5 to:</p> <p class="paragraph">                      (a)  the Secretary of the Department; or</p> <p class="paragraph">                      (b)  an S<a name="BK_S3P4L5C10"/>ES employee, or acting SES employee, in the Department.</p> <p class="notetext"> Note:          The expressions <b><i>SES employee</i></b> and <b><i>acting SES employee</i></b> are defined in section 2B of the <i>Acts Interpretation Act 1901</i>.</p> <p class="subsection">              (2)  In exercising powers under a delegation under subsection (1), the delegate must comply with any directions of the Minister.</p> </opc-section><opc-section depth="0" ref="3257c84ea93f4c0fbe0101fd72d7ba1d" title="8  Legislative rules"><a name="3257c84ea93f4c0fbe0101fd72d7ba1d"/><p class="ActHead5"><a name="_Toc35692766"><span class="CharSectno">8</span>  Legislative rules</a></p> <p class="subsection">                    The Minister may, by legislative instrument, make<a name="BK_S3P4L12C52"/> rules (<b><i>legislative rules</i></b>) prescribing matters required or permitted by this Act to be prescribed by the legislative rules.</p> <div> <table cellspacing="0" cellpadding="0" hspace="0" vspace="0" align="left"> <tr> <td valign="top" align="left" style="padding-top:0cm;padding-right:9.0pt; padding-bottom:0cm;padding-left:9.0pt"> <p class="MsoNormal">(43/20)</p> </td> </tr> </table> </div> <p class="MsoNormal"> </p> </opc-section></div> </body> </div></div></body></html>