Federal Register of Legislation - Australian Government

Primary content

Bank Integration Act 1991

  • - C2007C00558
  • In force - Superseded Version
  • View Series
Act No. 210 of 1991 as amended, taking into account amendments up to Act No. 143 of 2007
An Act to facilitate the integration of certain banks, and for related purposes
Administered by: Treasury
Registered 28 Sep 2007
Start Date 24 Sep 2007
End Date 19 Apr 2012

Bank Integration Act 1991

Act No. 210 of 1991 as amended

This compilation was prepared on 27 September 2007
taking into account amendments up to Act No. 143 of 2007

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

  

  

  


Contents

Part 1—Preliminary                                                                                                               1

1............ Short title [see Note 1]....................................................................... 1

2............ Commencement [see Note 1].............................................................. 1

3............ Extension to external Territories......................................................... 1

4............ Crown to be bound............................................................................. 1

5............ Interpretation...................................................................................... 1

6............ Extra‑territorial operation of Act........................................................ 4

Part 2—Steps leading to bank reorganisations                                                      6

7............ Notice of proposed bank reorganisation............................................. 6

8............ Reserve Bank certification.................................................................. 6

9............ Treasurer may fix succession day for a particular receiving bank and transferring bank         7

10.......... Interests of depositors of transferring banks to be protected............ 7

11.......... Complementary legislation to be enacted........................................... 7

Part 3—Bank reorganisations                                                                                         9

12.......... Consequence of succession day.......................................................... 9

13.......... Assets and liabilities........................................................................... 9

14.......... Translated instruments..................................................................... 10

15.......... Places of business............................................................................. 10

16.......... Transferring banks to lose authority to carry on banking business.. 10

17.......... Legal proceedings and evidence........................................................ 10

18.......... Permitted business names................................................................. 11

19.......... Employment unaffected................................................................... 11

20.......... Receiving banks to do what is necessary to carry out reorganisation 12

Part 4—Taxation matters                                                                                                 13

21.......... Exemptions from certain taxes and charges...................................... 13

22.......... Application of the Income Tax Assessment Acts............................ 13

Part 5—Miscellaneous                                                                                                       16

23.......... Certificates evidencing operation of Act etc..................................... 16

24.......... Certificates in relation to land and interests in land.......................... 16

25.......... Certificates in relation to other assets.............................................. 17

26.......... Documents purporting to be certificates.......................................... 17

27.......... Compensation for acquisition of property....................................... 17

28.......... Act to have effect despite other laws............................................... 18

29.......... Regulations....................................................................................... 18

Part 6—Consequential amendments of the Commonwealth Banks Act 1959 and other Acts         19

30.......... Principal Act..................................................................................... 19

31.......... Repeal of Part V............................................................................... 19

32.......... Consequential amendments.............................................................. 19

Schedule 1—Receiving and transferring banks                                                  20

Schedule 2—Permitted business names                                                                   21

Schedule 3—Consequential amendments                                                               22

Notes                                                                                                                                            23


An Act to facilitate the integration of certain banks, and for related purposes

Part 1Preliminary

 

1  Short title [see Note 1]

                   This Act may be cited as the Bank Integration Act 1991.

2  Commencement [see Note 1]

                   This Act commences on the day on which it receives the Royal Assent.

3  Extension to external Territories

                   This Act extends to all external Territories.

4  Crown to be bound

                   This Act binds the Crown in right of the Commonwealth, of each of the States, of the Northern Territory, of the Australian Capital Territory and of Norfolk Island.

5  Interpretation

             (1)  In this Act, unless the contrary intention appears:

asset means property, or a right, of any kind, and includes:

                     (a)  any legal or equitable estate or interest (whether present or future, vested or contingent, tangible or intangible, in real or personal property) of any kind; and

                     (b)  any chose in action; and

                     (c)  any right, interest or claim of any kind including rights, interests or claims in or in relation to property (whether arising under an instrument or otherwise, and whether liquidated or unliquidated, certain or contingent, accrued or accruing); and

                     (e)  a CGT asset within the meaning of the Income Tax Assessment Act 1997.

authorised person, in relation to a particular provision, a particular receiving bank and the relevant transferring bank, means:

                     (a)  the Treasurer; or

                     (b)  if the Treasurer designates, in writing:

                              (i)  the chief executive officer or another senior executive of the receiving bank; or

                             (ii)  an SES employee or acting SES employee;

                            as an authorised officer in relation to that provision and those banks—the officer so designated.

BNZ means Bank of New Zealand.

BNZ Savings means Bank of New Zealand Savings Bank Limited.

business, in relation to a bank, includes the assets and liabilities of the bank.

chief executive officer, in relation to a receiving bank, means the officer having the day to day management of the affairs of the bank and includes an officer acting from time to time in that capacity.

Commonwealth Bank means the Commonwealth Bank of Australia.

Commonwealth Savings Bank means the Commonwealth Savings Bank of Australia.

complementary legislation, in relation to the operation of this Act in respect of a particular receiving bank (other than the Commonwealth Bank or the BNZ) and the relevant transferring bank, means legislation of the kind referred to in subsection 11(1) in relation to those banks.

incorporating State means:

                     (a)  in relation to a receiving bank other than the Commonwealth Bank, the Westpac Banking Corporation or BNZ—the State in which the bank was incorporated; and

                     (b)  in relation to the Westpac Banking Corporation—New South Wales.

instrument includes a document and an oral agreement.

interest, in relation to land, includes:

                     (a)  a legal or equitable estate or interest in the land; or

                     (b)  a right, power or privilege over, or in relation to, the land.

liability includes a duty or obligation of any kind (whether arising under an instrument or otherwise, and whether actual, contingent or prospective).

parallel New Zealand legislation, in relation to the operation of this Act in respect of BNZ and BNZ Savings, means a law of New Zealand to vest the undertaking of BNZ Savings in BNZ and to enable the subsequent dissolution of BNZ Savings.

proceeding to which this Act applies, in relation to a receiving bank, means a legal proceeding (including a proceeding before an administrative tribunal or an arbitration) that relates to business that becomes transferred business in relation to that bank.

receiving bank means a bank whose name is included in Column 1 of Schedule 1.

relevant receiving bank, in relation to a transferring bank, means the receiving bank whose name is included in Column 1 of Schedule 1 opposite the name of the transferring bank in Column 2 of that Schedule.

relevant transferring bank, in relation to a receiving bank, means a transferring bank whose name is included in Column 2 of Schedule 1 opposite the name of the receiving bank in Column 1 of that Schedule.

security, in relation to payment of a debt or other liability, includes an agreement to give such a security on demand or otherwise.

succession day, in relation to a receiving bank and a relevant transferring bank, means the day fixed under section 9 as the succession day for those banks.

tax includes:

                     (b)  stamp duty; and

                     (c)  any other tax, duty, levy or charge; and

                     (d)  any fee (however described) that is not a tax.

transferred asset, in relation to a receiving bank, means an asset that has become, under this Act, an asset of the receiving bank.

transferred business, in relation to a receiving bank, means the business that has become, under this Act, business of the receiving bank.

transferred liability, in relation to a receiving bank, means a liability that has become, under this Act, a liability of the receiving bank.

transferring bank means a bank whose name is included in Column 2 of Schedule 1.

translated instrument, in relation to a particular transferring bank, means an instrument (including a legislative instrument other than this Act) subsisting immediately before the succession day for that bank and the relevant receiving bank:

                     (a)  to which the transferring bank is a party; or

                     (b)  that was given to, by or in favour of, the transferring bank; or

                     (c)  that refers to the transferring bank; or

                     (d)  under which money is, or may become, payable, or other property is, or may become, liable to be transferred, to or by the transferring bank.

             (2)  Where reference is made in this Act to anything done for a purpose connected with, or arising out of, the operation or effect of this Act or of any complementary legislation or any parallel New Zealand legislation, that reference is taken to include any transaction entered into, or any instrument or document made, executed, lodged or given, for that purpose.

6  Extra‑territorial operation of Act

             (1)  It is the intention of the Parliament that this Act should apply, as far as possible, in relation to the following:

                     (a)  land outside Australia;

                     (b)  things outside Australia;

                     (c)  acts, transactions and matters done, entered into or occurring outside Australia;

                     (d)  land, things, acts, transactions and matters (wherever situated, done, entered into or occurring) that would, apart from this Act, be governed or otherwise affected by the law of a foreign country.

             (2)  Subsection (1) applies to BNZ and BNZ Savings only in so far as the extraterritorial operation of the Act is necessary to deal with the business of BNZ Savings that relates to its Australian operations.


 

Part 2Steps leading to bank reorganisations

 

7  Notice of proposed bank reorganisation

             (1)  Where, having regard to Commonwealth Government policy concerning integration of banks, a receiving bank (other than BNZ) and the relevant transferring bank agree to seek the statutory vesting of the business of the transferring bank in the receiving bank, the receiving bank may give notice in writing of their agreement:

                     (a)  to the Reserve Bank; and

                     (b)  to the Treasurer.

             (2)  Where, having regard to Commonwealth Government policy concerning integration of banks, BNZ and BNZ Savings agree to seek the statutory vesting of the business of BNZ Savings that relates to its Australian operations in BNZ, BNZ may give notice in writing of their agreement:

                     (a)  to the Reserve Bank; and

                     (b)  to the Treasurer.

8  Reserve Bank certification

             (1)  Where the Reserve Bank receives notice of a proposal under paragraph 7(1)(a) from a receiving bank, it must, through the exercise of its powers under Part II of the Banking Act 1959, satisfy itself that the interests of the depositors of both the receiving bank and of the relevant transferring bank would be adequately protected if the vesting proceeds, and, if it is so satisfied, must certify to that effect to the Treasurer.

             (2)  Where the Reserve Bank receives a notice of a proposal under paragraph 7(2)(a) from BNZ, it must, through the exercise of its powers under Part II of the Banking Act 1959, satisfy itself that the interests of the depositors of BNZ in its Australian operations and of BNZ Savings in its Australian operations would be adequately protected if the vesting proceeds, and, if it is so satisfied, must certify to that effect to the Treasurer.

9  Treasurer may fix succession day for a particular receiving bank and transferring bank

             (1)  Subject to sections 10 and 11, where the Treasurer receives notice of a proposal under paragraph 7(1)(b) from a receiving bank, he or she may:

                     (a)  if the receiving bank is the Commonwealth Bank—in consultation with the chief executive officer of the bank; and

                     (b)  if the receiving bank is another bank—in consultation with the Treasurer (however described) of the incorporating State and the chief executive officer of the bank;

by notice published in the Gazette, fix a day on which the business of the relevant transferring bank is to vest in the receiving bank.

             (2)  Subject to section 10, where the Treasurer receives notice of a proposal under paragraph 7(2)(b) from BNZ, he or she may, in consultation with the Minister of Finance of New Zealand and the chief executive officer of BNZ, by notice published in the Gazette, fix a day on which the business of BNZ Savings that relates to its Australian operations is to vest in BNZ.

             (3)  The day fixed in a notice under subsection (1) or (2) is to be called the succession day for the receiving bank and the relevant transferring bank referred to in the notice and must not be a day occurring before the day of publication of the notice.

10  Interests of depositors of transferring banks to be protected

                   The Treasurer must not fix a succession day for a receiving bank and a relevant transferring bank unless the Treasurer is satisfied, having regard to the certificate given to the Treasurer by the Reserve Bank under section 8 and to any other relevant matter of which the Treasurer is aware, that the interests of the depositors of the receiving and transferring banks are adequately protected.

11  Complementary legislation to be enacted

             (1)  The Treasurer must not fix a succession day for a receiving bank (other than the Commonwealth Bank or BNZ) and the relevant transferring bank unless he or she is satisfied that legislation has been enacted in the State in which both the transferring bank and the receiving bank are established to facilitate the proposed vesting of the business of the transferring bank in the receiving bank.

             (2)  Complementary legislation under subsection (1) must include provision:

                     (a)  to ensure that the receiving bank is taken, on the succession day, to be the successor in law to the transferring bank; and

                     (b)  without limiting the generality of the concept of successor in law, to ensure that, on the succession day:

                              (i)  the assets of the transferring bank vest in, or are otherwise available for the use of, the receiving bank; and

                             (ii)  the liabilities of the transferring bank become liabilities of the receiving bank; and

                     (c)  to secure exemption from any tax imposed under the law of that State in respect of:

                              (i)  the operation or effect of this Act or that complementary legislation; or

                             (ii)  anything done for a purpose connected with, or arising out of, that operation or effect; and

                     (d)  to provide for the dissolution on the succession day of the company that operated as the transferring bank.

             (3)  In subsection (2):

tax, in relation to the complementary legislation of a particular State, does not include any fee or tax prescribed by the Corporations Regulations of that State.


 

Part 3Bank reorganisations

 

12  Consequence of succession day

             (1)  On the succession day for a receiving bank (other than BNZ) and the relevant transferring bank, the receiving bank becomes the successor in law of the transferring bank.

             (2)  On the succession day for BNZ and BNZ Savings, the business of BNZ Savings that relates to its Australian operations ceases to be the business of that bank and becomes the business of BNZ.

13  Assets and liabilities

             (1)  Without limiting, by implication, the operation of subsection 12(1), on the succession day for a receiving bank and the relevant transferring bank:

                     (a)  all assets of the transferring bank, wherever located, vest in, or are otherwise available for the use of, the receiving bank; and

                     (b)  all liabilities of the transferring bank, wherever located, become liabilities of the receiving bank.

             (2)  Without limiting, by implication, the operation of subsection 12(2), on the succession day for BNZ and BNZ Savings:

                     (a)  all assets of BNZ Savings, wherever located, acquired in respect of the business of BNZ Savings that relates to its Australian operations:

                              (i)  vest in, or are otherwise available for the use of, BNZ; and

                             (ii)  are to be treated as assets acquired in respect of the business of BNZ that relates to its Australian operations; and

                     (b)  all liabilities of BNZ Savings, wherever located, incurred in respect of the business of BNZ Savings that relates to its Australian operations:

                              (i)  become liabilities of BNZ; and

                             (ii)  are to be treated as liabilities incurred in respect of the business of BNZ that relates to its Australian operations.

14  Translated instruments

             (1)  Subject to subsection (2), each translated instrument in respect of a particular transferring bank continues to have effect, according to its tenor, on and after the succession day for that bank and the relevant receiving bank, as if a reference in the instrument to the transferring bank were a reference to the receiving bank.

             (2)  In its application to translated instruments in respect of BNZ Savings, subsection (1) applies to those instruments only in so far as they relate to business of the bank relating to its Australian operations.

15  Places of business

             (1)  Subject to subsection (2), on and after the succession day for a receiving bank and the relevant transferring bank, a place that, immediately before that day, was a place of business for the transferring bank is taken to be a place of business for the receiving bank.

             (2)  In its application to BNZ and BNZ Savings, subsection (1) applies only to places of business in Australia or the external Territories.

16  Transferring banks to lose authority to carry on banking business

                   On the succession day for a receiving bank (other than the Commonwealth Bank) and the relevant transferring bank, the authority to carry on banking business in Australia that was granted to the transferring bank under section 9 of the Banking Act 1959 is revoked.

17  Legal proceedings and evidence

             (1)  Subject to subsection (2), where, immediately before the succession day for a receiving bank and the relevant transferring bank, proceedings (including arbitration proceedings) to which the transferring bank was a party were pending or existing in any court or tribunal, the receiving bank is, on that day, substituted for the transferring bank as a party to the proceedings and has the same rights in the proceedings as the transferring bank had.

             (2)  Subsection (1) only applies to proceedings to which BNZ Savings was a party if those proceedings relate to the business of that bank that relates to its Australian operations.

             (3)  Where, before the succession day for a receiving bank and the relevant transferring bank, documentary or other evidence would have been admissible for or against the interests of the transferring bank, that evidence is admissible, on or at any time after that day, for or against the interests of the receiving bank.

18  Permitted business names

             (1)  For a period of 6 months beginning on the succession day in relation to a transferring bank whose name is included in Column 1 of Schedule 2, the relevant receiving bank may operate in a State or Territory under any name (in this section called a permitted business name in relation to that receiving bank) that is included in Column 2 of that Schedule opposite the name of that transferring bank.

             (2)  This section does not prevent a receiving bank from:

                     (a)  operating in a State or Territory under a name other than a permitted business name; or

                     (b)  registering a name under a law of a State or Territory.

             (3)  In this section:

operate under a permitted business name, in relation to a particular State or Territory, includes engage in any conduct in respect of which, for the purpose of the law of that State or Territory relating to the registration of business names, that permitted business name would, apart from the operation of this section, have been required to be registered.

19  Employment unaffected

             (1)  This section applies to every person who, immediately before the succession day fixed for a receiving bank and a relevant transferring bank, was performing duty in the transferring bank.

             (2)  The terms and conditions of employment (including any accrued entitlement to employment benefits) of each person to whom this section applies are not affected by the operation or effect of this Act or of any complementary legislation.

20  Receiving banks to do what is necessary to carry out reorganisation

                   Each receiving bank must do whatever is necessary to ensure that this Part is fully effective, particularly in relation to its business outside Australia.


 

Part 4Taxation matters

 

21  Exemptions from certain taxes and charges

             (1)  Tax is not payable under a law of the Commonwealth or of a State or Territory in respect of:

                     (a)  the operation or effect of this Act or of any complementary legislation in its application to the vesting of the business of a transferring bank in the relevant receiving bank; or

                     (b)  anything done for a purpose connected with, or arising out of, that operation or effect.

             (2)  In its application to BNZ Savings and BNZ, subsection (1) only applies to the business of BNZ Savings that relates to its Australian operations.

             (3)  In subsection (1):

complementary legislation includes parallel New Zealand legislation.

tax does not include:

                     (a)  any tax assessed under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997; or

                     (b)  any fee or tax prescribed by the Corporations Regulations of the Australian Capital Territory, of the Northern Territory or of any State other than Western Australia; or

                     (c)  any fee prescribed by the Corporations Regulations of Western Australia or any tax imposed by the Corporations (Taxing) Act 1990 of Western Australia.

22  Application of the Income Tax Assessment Acts

             (1)  Where a succession day is fixed for a receiving bank and the relevant transferring bank, this section applies to the business of that transferring bank that becomes, on that day, the transferred business of the receiving bank.

             (2)  It is the intention of the Parliament:

                     (a)  that, on and after the succession day for a receiving bank and the relevant transferring bank, the receiving bank should, for all purposes of the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997, be placed in the same position in relation to the business to which this section applies as the transferring bank would have been apart from the operation or effect of this Act and of any complementary legislation and from anything done for a purpose connected with, or arising out of, that operation or effect; and

                     (b)  that the operation or effect of this Act and of any complementary legislation and anything done for a purpose connected with, or arising out of, that operation or effect in relation to the business to which this section applies should, for all purposes of the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997, be revenue neutral, that is to say that no assessable income, deduction, capital gain or capital loss should be derived, or incurred, or should accrue, by or to the transferring bank or the receiving bank in relation to that business merely because of the operation or effect of this Act and of any complementary legislation or of anything done for a purpose connected with, or arising out of, that operation or effect.

             (3)  Where a succession day is fixed for a receiving bank and the relevant transferring bank, then, for the purposes of the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997, nothing in this Act affects the continuity of any partnership in which a transferring bank was a partner immediately before the succession day.

             (4)  Where a succession day is fixed for a receiving bank and the relevant transferring bank, then, for the purposes of the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997:

                     (a)  all assessable income derived or taken to be derived by the transferring bank; and

                     (b)  all allowable deductions and capital losses incurred or taken to be incurred by the transferring bank; and

                     (c)  all other consequences (including the balances of tax losses that are carried forward) for the transferring bank;

are taken to have been derived or incurred by, or to have occurred in relation to, the receiving bank and not the transferring bank.

             (5)  Where a succession day is fixed for a receiving bank and the relevant transferring bank, then, for the purposes of Part 3‑6 of the Income Tax Assessment Act 1997 (about the imputation system):

                     (a)  if the transferring bank has a franking surplus at the end of the day before the succession day, then, at the beginning of the succession day:

                              (i)  a franking debit equal to that franking surplus arises in the transferring bank; and

                             (ii)  a franking credit equal to that franking surplus arises in the receiving bank; and

                     (b)  if the transferring bank has a franking deficit at the end of the day before the succession day and the succession day is not the first day of the transferring bank’s income year, then, at the beginning of the succession day:

                              (i)  a franking credit equal to that franking deficit arises in the transferring bank; and

                             (ii)  a franking debit equal to that franking deficit arises in the receiving bank.

             (6)  Subsections (3), (4) and (5) do not limit the generality of subsection (2).

             (7)  If, in any respect, the operation of subsection (2) requires further clarification, regulations may be made modifying or adapting the application of particular provisions of the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 for that purpose.

             (8)  For the purposes of subsection (2), where the dissolution of a transferring bank under complementary legislation involves any cancellation or other disposal of the shareholding in that bank, that cancellation or other disposal of a transferring bank is to be regarded as an effect of the complementary legislation.

             (9)  This section applies to BNZ and BNZ Savings only in so far as the business of BNZ Savings relating to its Australian operations vests in BNZ.

           (10)  In this section, complementary legislation includes parallel New Zealand legislation.


 

Part 5Miscellaneous

 

23  Certificates evidencing operation of Act etc.

             (1)  An authorised person may, by certificate signed by that person, certify any matter in relation to the operation or effect of this Act, and, in particular may certify that:

                     (a)  specified matter or thing relevant to a receiving bank is an aspect of the operation or effect of this Act; or

                     (b)  a specified thing was done for a purpose connected with, or arising out of, the operation or effect of this Act in relation to that receiving bank; or

                     (c)  a specified asset of a relevant transferring bank has become a transferred asset of that receiving bank; or

                     (d)  a specified liability of a relevant transferring bank has become a transferred liability of the receiving bank.

             (2)  For all purposes and in all proceedings, a certificate under subsection (1) is conclusive evidence of the matters certified, except to the extent that the contrary is established.

24  Certificates in relation to land and interests in land

                   Where:

                     (a)  a receiving bank becomes, under this Act, the owner of land, or of an interest in land, that is situated in a State or Territory; and

                     (b)  there is lodged with the Registrar of Titles or other appropriate officer of the State or Territory in which the land is situated a certificate that:

                              (i)  is signed by an authorised person; and

                             (ii)  identifies the land or interest; and

                            (iii)  states that the receiving bank has, under this Act, become the owner of that land or interest;

the officer with whom the certificate is lodged may:

                     (c)  register the matter in the same manner as dealings in land or interests in land of that kind are registered; and

                     (d)  deal with, and give effect to, the certificate.

25  Certificates in relation to other assets

             (1)  Where:

                     (a)  an asset (other than an interest in land) becomes, under this Act, an asset of a receiving bank; and

                     (b)  there is lodged with the person or authority who has, under a law of the Commonwealth, a State or a Territory, responsibility for keeping a register in respect of assets of that kind a certificate that:

                              (i)  is signed by an authorised person; and

                             (ii)  identifies the asset; and

                            (iii)  states that the asset has, under this Act, become an asset of the receiving bank;

that person or authority may:

                     (c)  register the matter in the same manner as transactions in relation to assets of that kind are registered; and

                     (d)  deal with, and give effect to, the certificate.

             (2)  This section does not affect the operations of the Corporations Act 2001.

26  Documents purporting to be certificates

                   A document purporting to be a certificate given under this Part is, unless the contrary is established, taken to be such a certificate and to have been properly given.

27  Compensation for acquisition of property

             (1)  Where, apart from this section, the operation or effect of this Act in relation to a particular receiving bank would result in the acquisition of property from a person otherwise than on just terms, there is payable to the person by the receiving bank such reasonable amount of compensation as is agreed on between the person and the receiving bank or, failing agreement, as is determined by a court of competent jurisdiction.

             (2)  Any damages or compensation recovered or other remedy given in a proceeding that is commenced otherwise than under this section is to be taken into account in assessing compensation payable in a proceeding that is commenced under this section and that arises out of the same event or transaction.

             (3)  In this section:

acquisition of property and just terms have the same respective meanings as in paragraph 51(xxxi) of the Constitution.

28  Act to have effect despite other laws

             (1)  This Act has effect in spite of anything in any contract, deed, undertaking, agreement or other instrument.

             (2)  Nothing done by or under this Act:

                     (a)  places a receiving bank, the relevant transferring bank or another person in breach of contract or confidence or otherwise makes any of them guilty of a civil wrong; or

                     (b)  places a receiving bank, the relevant transferring bank or another person in breach of:

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

                             (ii)  any contractual provision prohibiting, restricting or regulating the assignment or transfer of any asset or liability or the disclosure of any information; or

                     (c)  releases any surety, wholly or partly, from all or any of the surety’s obligations.

             (3)  Without limiting subsection (1), where, apart from this section, the advice or consent of a person would be necessary in a particular respect, the advice is taken to have been obtained or the consent is taken to have been given, as the case requires.

29  Regulations

                   The Governor‑General may make regulations, not inconsistent with this Act, prescribing all matters:

                     (a)  required or permitted by this Act to be prescribed; or

                     (b)  necessary or convenient to be prescribed for carrying out or giving effect to this Act.


 

Part 6Consequential amendments of the Commonwealth Banks Act 1959 and other Acts

 

30  Principal Act

                   In this Part, Principal Act means the Commonwealth Banks Act 1959.

31  Repeal of Part V

                   On the succession day for the Commonwealth Bank and the Commonwealth Savings Bank, Part V of the Principal Act is repealed.

32  Consequential amendments

                   On the succession day for the Commonwealth Bank and the Commonwealth Savings Bank, the Acts referred to in Schedule 3 are amended as set out in that Schedule.


Schedule 1Receiving and transferring banks

Section 5

 

 

Column 1

Column 2

Receiving banks

Transferring banks

Australia and New Zealand
Banking Group Limited

Australia and New Zealand
Savings Bank Limited

Bank of New Zealand

Bank of New Zealand Savings
Bank Limited

Bank of Queensland Limited

Bank of Queensland Savings
Bank Limited

Citibank Limited

Citibank Savings Limited

Commonwealth Bank of
Australia

Commonwealth Savings Bank
of Australia

National Australia Bank
Limited

National Australia Savings
Bank Limited

National Mutual Royal Bank
Limited

National Mutual Royal
Savings Bank Limited

Westpac Banking Corporation

Westpac Savings Bank
Limited


 

Schedule 2Permitted business names

Section 18              

 

 

Column 1

Column 2

Transferring banks

Permitted business names

Australia and New Zealand
Savings Bank Limited

Australia and New Zealand
Savings Bank Limited

Bank of New Zealand
Savings Bank Limited

Bank of New Zealand Savings
Bank Limited

Bank of Queensland Savings
Bank Limited

Bank of Queensland Savings
Bank Limited

Citibank Savings Limited

Citibank Savings

Commonwealth Savings Bank
of Australia

Commonwealth Savings Bank

Commonwealth Savings Bank
of Australia

CSB

National Mutual Royal
Savings Bank Limited

National Mutual Royal
Savings Bank Limited

Westpac Savings Bank
Limited

Westpac Savings Bank


 

Schedule 3Consequential amendments

Section 32              

 

 

Note:

The amendments made by this Schedule are incorporated in the compilations on ComLaw.

Banking Act 1959

Banks (Shareholding) Act 1972 [repealed by Act No. 54, 1998, Sch. 3]

Commonwealth Banks Act 1959

For access to the wording of the amendments made by this Schedule see Act No. 210, 1991.


Notes to the Bank Integration Act 1991

Note 1

The Bank Integration Act 1991 as shown in this compilation comprises Act No. 210, 1991 amended as indicated in the Tables below.

For application, saving or transitional provisions made by the Corporations (Repeals, Consequentials and Transitionals) Act 2001, see Act No. 55, 2001.

For all other relevant information pertaining to application, saving or transitional provisions see Table A.

Table of Acts

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Bank Integration Act 1991

210, 1991

24 Dec 1991

24 Dec 1991

 

Statute Law Revision Act 1996

43, 1996

25 Oct 1996

Schedule 3 (item 6): 24 Dec 1991 (a)

Income Tax (Consequential Amendments) Act 1997

39, 1997

17 Apr 1997

1 July 1997

Tax Law Improvement Act (No. 1) 1998

46, 1998

22 June 1998

Schedule 2 (item 527): 22 June 1998 (b)

S. 4

Public Employment (Consequential and Transitional) Amendment Act 1999

146, 1999

11 Nov 1999

Schedule 1 (item 279): 5 Dec 1999 (see Gazette 1999, No. S584) (c)

Corporations (Repeals, Consequentials and Transitionals) Act 2001

55, 2001

28 June 2001

Ss. 4–14 and Schedule 3 (item 79): 15 July 2001 (see Gazette 2001, No. S285) (d)

Ss. 4–14 [see Note 1]

Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006

101, 2006

14 Sept 2006

Schedule 2 (items 21–24), Schedule 5 (item 42) and Schedule 6 (items 1, 5–11): Royal Assent

Sch. 6 (items 1,
5–11)

Tax Laws Amendment (2007 Measures No. 4) Act 2007

143, 2007

24 Sept 2007

Schedule 1 (items 8, 222, 225, 226): Royal Assent

Sch. 1 (items 222, 225, 226)


(a)     The Bank Integration Act 1991 was amended by Schedule 3 (item 6) only of the Statute Law Revision Act 1996, subsection 2(3) of which provides as follows:

                 (3)   Each item in Schedule 3 is taken to have commenced when the Act containing the provision amended by the item received the Royal Assent.

(b)    The Bank Integration Act 1991 was amended by Schedule 2 (item 527) only of the Tax Law Improvement Act (No. 2) 1998, subsections 2(1) and (2) of which provide as follows:

                 (1)   Subject to this section, this Act commences on the day on which it receives the Royal Assent.

                 (2)   Schedule 2 (except item 3 of it) commences immediately after the commencement of Schedule 1.

(c)     The Bank Integration Act 1991 was amended by Schedule 1 (item 279) only of the Public Employment (Consequential and Transitional) Amendment Act 1999, subsections 2(1) and (2) of which provide as follows:

                 (1)   In this Act, commencing time means the time when the Public Service Act 1999 commences.

                 (2)   Subject to this section, this Act commences at the commencing time.

(d)     The Bank Integration Act 1991 was amended by Schedule 3 (item 79) only of the Corporations (Repeals, Consequentials and Transitionals) Act 2001, subsection 2(3) of which provides as follows:

                 (3)   Subject to subsections (4) to (10), Schedule 3 commences, or is taken to have commenced, at the same time as the Corporations Act 2001.


Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed     rs. = repealed and substituted

Provision affected

How affected

S. 5......................................

am. No. 46, 1998; No. 146, 1999; No. 101, 2006

S. 21....................................

am. No. 39, 1997

Heading to s. 22..................

rs. No. 39, 1997

S. 22....................................

am. No. 39, 1997; No. 101, 2006; No. 143, 2007

S. 25....................................

am. No. 55, 2001

Schedule 3..........................

am. No. 43, 1996


Table A

Application, saving or transitional provisions

Tax Law Improvement Act (No. 1) 1998 (No. 46, 1998)

4  Application of amendments

An amendment made by an item in a Schedule (except an item in Schedule 1 or in Part 1 of any of Schedules 2 to 8) applies to assessments for the 1998‑99 income year and later income years, unless otherwise indicated in the Schedule in which the item appears.

 

Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006
(No. 101, 2006)

Schedule 6

1  Application of Schedule 1 and 2 amendments

Except as mentioned in items 2 and 3, the repeals and amendments made by Schedules 1 and 2 apply:

                     (a)  so far as they affect assessments—to assessments for the 2006‑07 income year and all later income years; and

                     (b)  otherwise—to acts done or omitted to be done, or states of affairs existing, after the commencement of the repeals and amendments.

5  Application of Schedule 5 amendments

The repeals and amendments made by Schedule 5 apply to acts done or omitted to be done, or states of affairs existing, after the commencement of the amendments.

6  Object

The object of this Part is to ensure that, despite the repeals and amendments made by this Act, the full legal and administrative consequences of:

                     (a)  any act done or omitted to be done; or

                     (b)  any state of affairs existing; or

                     (c)  any period ending;

before such a repeal or amendment applies, can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken after the repeal or amendment applies.

7  Making and amending assessments, and doing other things, in relation to past matters

Even though an Act is repealed or amended by this Act, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003):

                     (a)  making or amending an assessment (including under a provision that is itself repealed or amended);

                     (b)  exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);

in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

Example 1: On 31 July 1999, Greg Ltd lodged its annual return under former section 160ARE of the Income Tax Assessment Act 1936. The return stated that the company had a credit on its franking account and that no franking deficit tax was payable for the 1998‑99 franking year. Under former section 160ARH of that Act, the Commissioner was taken to have made an assessment consistent with the return.

                   Following an audit undertaken after the repeal of Part IIIAA of that Act, the Commissioner concludes that Greg Ltd fraudulently overfranked dividends it paid during the 1998‑99 franking year, and had a franking account deficit for that franking year. As a result, the Commissioner considers that franking deficit tax and a penalty by way of additional tax are payable.

                   The Commissioner can amend the assessment under former section 160ARN of that Act, because item 7 of this Schedule disregards the repeal of that section for the purposes of making an assessment in relation to the 1998‑99 franking year. Item 7 will also disregard the repeal of Division 11 of former Part IIIAA to the extent necessary for the Commissioner to assess Greg Ltd’s liability to a penalty by way of additional tax.

                   Despite the repeal of sections 160ARU and 160ARV, item 9 will ensure that the general interest charge will accrue on the unpaid franking deficit tax and penalty until they are paid.

                   Item 7 will also preserve Greg Ltd’s right, under former section 160ART of that Act, to object against the Commissioner’s amended assessment (including the penalty), since the objection is the exercise of a right in relation to a franking year that ended before the repeal of Part IIIAA.

Example 2: During the 1997‑98 income year, Duffy Property Ltd withheld amounts from its employees’ wages as required by former Divisions 1AAA and 2 of Part VI of the Income Tax Assessment Act 1936. The company failed to notify the Commissioner of those amounts, and failed to remit them to the Commissioner.

                   Following an audit undertaken after the repeal of those Divisions, the Commissioner discovers that the withheld amounts have not been remitted. The company’s records are incomplete and the Commissioner is unable to completely ascertain the extent of its liability for the withheld amounts. Under section 222AGA of that Act, the Commissioner makes an estimate of the liability.

                   Item 7 will disregard the repeal of section 220AAZA of that Act (which empowered the Commissioner to recover the amount of the estimate). Even though the estimate is made after the repeal, it relates to amounts withheld before the repeal.

8  Saving of provisions about effect of assessments

If a provision or part of a provision that is repealed or amended by this Act deals with the effect of an assessment, the repeal or amendment is disregarded in relation to assessments made, before or after the repeal or amendment applies, in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

9  Saving of provisions about general interest charge, failure to notify penalty or late reconciliation statement penalty

If:

                     (a)  a provision or part of a provision that is repealed or amended by this Act provides for the payment of:

                              (i)  general interest charge, failure to notify penalty or late reconciliation statement penalty (all within the meaning of the Income Tax Assessment Act 1936); or

                             (ii)  interest under the Taxation (Interest on Overpayments and Early Payments) Act 1983; and

                     (b)  in a particular case, the period in respect of which the charge, penalty or interest is payable (whether under the provision or under the Taxation Administration Act 1953) has not begun, or has begun but not ended, when the provision is repealed or amended;

then, despite the repeal or amendment, the provision or part continues to apply in the particular case until the end of the period.

10  Repeals disregarded for the purposes of dependent provisions

If the operation of a provision (the subject provision) of any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003) made under any Act depends to any extent on an Act, or a provision of an Act, that is repealed by this Act, the repeal is disregarded so far as it affects the operation of the subject provision.

11  Schedule does not limit operation of section 8 of the Acts Interpretation Act 1901

This Schedule does not limit the operation of section 8 of the Acts Interpretation Act 1901.

 

Tax Laws Amendment (2007 Measures No. 4) Act 2007 (No. 143, 2007)

Schedule 1

222  Application

Subject to items 223 and 224, the amendments made by this Schedule apply in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after the day on which this Act receives the Royal Assent.

225  Object

The object of this Part is to ensure that, despite the repeals and amendments made by this Act, the full legal and administrative consequences of:

                     (a)  any act done or omitted to be done; or

                     (b)  any state of affairs existing; or

                     (c)  any period ending;

before such a repeal or amendment applies, can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken after the repeal or amendment applies.

226  Making and amending assessments, and doing other things, in relation to past matters

Even though an Act is repealed or amended by this Act, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003):

                     (a)  making or amending an assessment (including under a provision that is itself repealed or amended);

                     (b)  exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);

in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

Example:    For the 2006‑07 income year, Smart Investor Pty Ltd, an Australian resident private investment company, has assessable foreign income in the passive income class on which it has paid foreign tax for which it wishes to claim a foreign tax credit. The company also has a tax loss for the year from its Australian investments. When it lodges its tax return for the year it does not elect to claim a deduction for any of the tax loss under section 79DA of the ITAA 1936, because the Australian tax payable on its passive foreign income equals the foreign tax it has paid.

                   In 2009 the amount of foreign tax payable in respect of some foreign rental income it had included in its return for the 2006‑07 year is reduced and Smart Investor receives a refund of the difference in foreign tax. Smart Investor Pty Ltd then applies to be able to make an election under section 79DA, that is, after the Tax Laws Amendment (2007 Measures No. 4) Act 2007 (which repeals section 79DA) receives Royal Assent. The Commissioner allows Smart Investor to submit an election to claim a deduction for so much of its 2006‑07 tax loss as to reduce the amount of Australian tax payable on its 2006‑07 assessable foreign income to the revised foreign tax paid, by the end of 2009.

                   Despite the repeal of section 79DA, item 226 allows the Commissioner to permit an election to be lodged after the return for 2006‑07 has been lodged, and to amend Smart Investor’s assessment for that year, because these actions relate to a thing done, and periods ending, before the repeal of section 79DA applies.