Commonwealth Coat of Arms of Australia

 

Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2025

We, Julie Collins, Minister for Agriculture, Fisheries and Forestry, and Katy Gallagher, Minister for Finance, make the following instrument.

Dated 29 July 2025

Julie Collins

Katy Gallagher

Minister for Agriculture, Fisheries and Forestry

Minister for Finance

 

 

 

 

1 Name

2 Commencement

3 Authority

4 Schedules

Schedule 1—Amendments

Part 1—Amendment of the Operating Mandate

Regional Investment Corporation Operating Mandate Direction 2018

Part 2—Amendment of the Rules

Regional Investment Corporation (Drought Loans Expansion) Rule 2020

Regional Investment Corporation (Small Business Drought Loans) Rules 2020

 

  This instrument is the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2025.

 (1) Each provision of this instrument 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

Provisions

Commencement

Date/Details

1.  The whole of this instrument

The day on which this instrument is registered.

30 July 2025

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

 (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

  This instrument is made under subsection 11(1) and section 54 of the Regional Investment Corporation Act 2018.

  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

1  Subsections 8(1) and (2)

Omit “Board”, substitute “Corporation”.

2  Paragraph 8(2)(a)

After “only”, insert “some or all of”.

3  Paragraph 8(2)(a)

Omit “concessional loans and”, substitute “farm business loans and all of”.

4  At the end of paragraph 8(2)(a)

Add “to fund the Corporation to make such loans”.

5  Paragraph 8(2)(b)

Omit all the words after “and May”.

6  After paragraph 8(2)(b)

Insert:

 (ba) The proportion of the interest rate referable to the Commonwealth’s borrowing costs will be revised on review in line with material changes to the Commonwealth 10year bond rate, where a material change is taken to be a movement of more than 10 basis points (0.1 per cent).

7  At the end of subsection 8(2)

Add:

Note: For paragraph (ba), a material change to the Commonwealth 10year bond rate may not result in an increase to the interest rate for a program if the proportion of the interest rate referable to the Corporation’s administrative costs is reduced proportionally.

8  At the end of Part 3

Add:

  The amendments made by Part 1 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2025 apply to the setting of interest rates as mentioned in section 8 after the day on which this section commences.

9  Subparagraph 29(a)(i)

After “cover”, insert “some or all of”.

10  Subparagraph 29(a)(i)

After “drought loans and”, insert “all of”.

11  Subparagraph 29(a)(ii)

Omit “, and, if necessary, revising it in line with changes of more than 0.1% in the Commonwealth 10year bond rate”.

12  At the end of paragraph 29(a)

Add:

 (iii) provides for the proportion of the interest rate referable to the Commonwealth’s borrowing costs to be revised on review in line with changes of more than 0.1% in the Commonwealth 10year bond rate; and

13  At the end of section 29

Add:

Note: For subparagraph (a)(iii), a material change to the Commonwealth 10year bond rate may not result in an increase to the interest rate for a program if the proportion of the interest rate referable to the Corporation’s administrative costs is reduced proportionally.

14  At the end of Part 4

Add:

  The amendments of this instrument made by Part 2 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2025 apply to the determining of interest rates as mentioned in section 17 after the day on which this section commences.

15  Subparagraph 25(a)(i)

After “cover”, insert “some or all of”.

16  Subparagraph 25(a)(i)

After “drought loans and”, insert “all of”.

17  Subparagraph 25(a)(ii)

Omit “and, if necessary, revising it in line with changes of more than 0.1% in the Commonwealth 10year bond rate”.

18  At the end of paragraph 25(a)

Add:

 (iii) provides for the proportion of the interest rate referable to the Commonwealth’s borrowing costs to be revised on review in line with changes of more than 0.1% in the Commonwealth 10year bond rate; and

19  At the end of section 25

Add:

Note: For subparagraph (a)(iii), a material change to the Commonwealth 10year bond rate may not result in an increase to the interest rate for a program if the proportion of the interest rate referable to the Corporation’s administrative costs is reduced proportionally.

20  At the end of Part 4

Add:

  The amendments of this instrument made by Part 2 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2025 apply to the determining of interest rates as mentioned in section 13 after the day on which this section commences.