Federal Register of Legislation - Australian Government

Primary content

A Bill for an Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes
Administered by: Foreign Affairs and Trade
For authoritative information on the progress of bills and on amendments proposed to them, please see the House of Representatives Votes and Proceedings, and the Journals of the Senate as available on the Parliament House website.
Registered 26 Mar 2013
Introduced HR 20 Mar 2013
Table of contents.

2010‑2011‑2012‑2013

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

Export Finance and Insurance Corporation Amendment (New Mandate and Other Measures) Bill 2013

 

No.      , 2013

 

(Trade and Competitiveness)

 

 

 

A Bill for an Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes

  

  


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedule(s)......................................................................................... 2

Schedule 1—Amendments                                                                                                3

Part 1—Main amendments                                                                                         3

Export Finance and Insurance Corporation Act 1991                                        3

Part 2—Consequential amendments                                                                      8

Corporations Act 2001                                                                                               8

Insurance Contracts Act 1984                                                                                  8

 


A Bill for an Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Export Finance and Insurance Corporation Amendment (New Mandate and Other Measures) Act 2013.

2  Commencement

             (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.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

 

2.  Schedule 1

A single day to be fixed by Proclamation.

However, if the provision(s) do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

 

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.

             (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.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Amendments

Part 1Main amendments

Export Finance and Insurance Corporation Act 1991

1  Subsection 3(1)

Insert:

accounting standard has the same meaning as in the Corporations Act 2001.

2  Subsection 3(1)

Insert:

market failure means a failure, relating to the provision of insurance or another financial service or product, of a kind specified in a legislative instrument made by the Minister for the purposes of this definition.

3  Subsection 3(1) (definition of short‑term insurance contract)

Repeal the definition.

4  Subsection 3(1)

Insert:

SME (short for small and medium enterprises), in relation to the provision of insurance or another financial service or product by EFIC, has the meaning given by section 3A.

5  Subsection 3(5)

Repeal the subsection, substitute:

             (5)  In this Act, a reference to Australian export trade includes a reference to any transaction (including the rendering of a service) resulting in:

                     (a)  an increase in exports from Australia; or

                     (b)  access to new markets for Australian exports; or

                     (c)  an increase in dividend flows from overseas to Australia; or

                     (d)  any other benefit specified in a legislative instrument made by the Minister for the purposes of this paragraph.

6  After section 3

Insert:

3A  SME

             (1)  An SME (short for small and medium enterprises), in relation to the provision of insurance or another financial service or product by EFIC, means a company registered under the Corporations Act 2001 that:

                     (a)  has consolidated revenue, for the most recent financial year of the SME ending before the start of the provision of the insurance or other financial service or product, of less than the amount specified in a legislative instrument made by the Minister for the purposes of this paragraph; or

                     (b)  has, during that financial year, an average number of employees that is less than the number specified in a legislative instrument made by the Minister for the purposes of this paragraph.

             (2)  Consolidated revenue is to be calculated for the purposes of paragraph (1)(a) in accordance with accounting standards in force at the relevant time (even if the standard does not otherwise apply to the financial year of the SME concerned).

             (3)  In counting employees for the purposes of paragraph (1)(b), take part‑time employees into account as an appropriate fraction of a full‑time equivalent.

7  Before section 14

Insert:

13A  Market failures

             (1)  EFIC must not provide insurance, or another financial service or product, under this Part unless the insurance or other financial service or product (as the case may be) is unlikely, wholly or mainly because of a market failure, to be provided by any private sector provider.

             (2)  To avoid doubt, subsection (1) does not limit the provision of insurance or other financial services or products under Part 5.

8  Section 16 (heading)

Repeal the heading, substitute:

16  Guarantees in relation to loans to Australian suppliers etc.

9  Paragraph 16(1)(a)

Repeal the paragraph, substitute:

                     (a)  a person (in this section called the lender) has lent, or proposes to lend, money to:

                              (i)  a person who is carrying on business in Australia; or

                             (ii)  an eligible foreign subsidiary; and

10  At the end of section 16

Add:

             (3)  EFIC must not give a guarantee under this section in relation to an eligible foreign subsidiary unless the relevant SME has certified to EFIC that there will not, during the term of the guarantee, be a net reduction, in connection with the giving of the guarantee, in the number of persons employed in Australia by the SME.

             (4)  For the purposes of this section, an eligible foreign subsidiary is a body that:

                     (a)  is a subsidiary (within the meaning of the Corporations Act 2001) of an SME that is carrying on business in Australia; and

                     (b)  is not carrying on business in Australia.

11  Section 17 (heading)

Omit “and subsidies”.

12  Paragraph 19(1)(c)

Omit “associated with such a transaction”, substitute “integral to an export contract or an eligible export transaction”.

13  At the end of Part 4

Add:

23A  Focus on providing services and products to SMEs

             (1)  In providing insurance and other financial services and products under this Part, EFIC must focus on providing such services and products to SMEs.

             (2)  To avoid doubt, subsection (1) does not limit the provision of insurance or other financial services or products under Part 5.

14  Paragraph 34(1)(e)

Repeal the paragraph.

15  Paragraph 34(1)(f)

Omit “2 nor more than 5”, substitute “3 nor more than 6”.

16  Subsection 34(4)

Omit “2”, substitute “3”.

17  Subsections 35(1) and (1A)

Omit “, other than the government member,”.

18  Subsection 35(2)

Repeal the subsection.

19  Subsection 37(1)

Omit “(other than the government member)”.

20  Subsection 39(1)

Omit “(1)” (first occurring).

21  Subsection 39(2)

Repeal the subsection.

22  Subsections 61A(1) and 62A(1)

Omit “in respect of short‑term insurance contracts entered into by EFIC”.

23  Subsection 63A(2)

Omit “over other insurers because of the operation of section 63 in relation to its short‑term insurance contracts”, substitute “, because of the operation of section 63, over other persons or bodies who provide insurance or financial service and products that EFIC may provide”.

24  Subsection 63A(3)

Omit “in relation to its short‑term insurance contracts”.

25  Paragraph 87(1)(e)

Omit “34(1)(e) or (f)”, substitute “34(1)(f)”.

26  Application of amendments

Sections 13A and 23A of the Export Finance and Insurance Corporation Act 1991, as inserted by this Schedule, apply in relation to:

                     (a)  contracts entered into on or after the commencement of this item; and

                     (b)  guarantees given on or after the commencement of this item; and

                     (c)  loans made on or after the commencement of this item.

Part 2Consequential amendments

Corporations Act 2001

27  Paragraph 765A(1)(f)

Omit “, other than a short‑term insurance contract within the meaning of the Export Finance and Insurance Corporation Act 1991”.

Insurance Contracts Act 1984

28  Paragraph 9(1)(ca)

Omit “, other than short‑term insurance contracts within the meaning of the Export Finance and Insurance Corporation Act 1991 that are entered into on or after the commencement of this paragraph”.