This instrument is the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026.

(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.	28 January 2026

Note: This table relates only to the provisions of this instrument as originally made.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.

3 Authority

This instrument is made under the Regional Investment Corporation Act 2018.

4 Schedules

Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1—Amendments

Part 1—Main amendments

Regional Investment Corporation Operating Mandate Direction 2018

1 Part 1 (heading)

Repeal the heading, substitute:

Part 1—Preliminary

2 Section 4

Insert:

Commonwealth borrowing costs component has the meaning given by section 4A.

Corporation administrative costs component has the meaning given by section 4A.

3 After Part 1

Insert:

Part 2—Interest rates on loans

4A Interest rates on farm business loans

(1) The Corporation must set, and adjust as required, the interest rates on all farm business loans in accordance with this section.

(2) The interest rate for a period is the sum of the following components for that period:

(a) the Commonwealth borrowing costs component;

(b) the Corporation administrative costs component.

Commonwealth borrowing costs component for period 1 February to 31 July

(3) The Commonwealth borrowing costs component, for a 6‑month period (the relevant period) beginning on a 1 February, is worked out as follows:

Method statement

Step 1. Work out the average of the daily 10‑year Australian Government bond rate for the most recent 6‑month period beginning on 1 May (with the average worked out to 2 decimal places, rounding up if the third decimal place is 5 or more).

Step 2. Compare that average with the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 August.

Step 3. If there is a more than 0.1% difference between that average and the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 August, the Commonwealth borrowing costs component, for the relevant period, is that average.

Step 4. If there is not a more than 0.1% difference between that average and the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 August, the Commonwealth borrowing costs component, for the relevant period, remains the Commonwealth borrowing costs component referred to in step 2.

Commonwealth borrowing costs component for period 1 August to 31 January

(4) The Commonwealth borrowing costs component, for a 6‑month period (the relevant period) beginning on a 1 August, is worked out as follows:

Method statement

Step 1. Work out the average of the daily 10‑year Australian Government bond rate for the most recent 6‑month period beginning on 1 November (with the average worked out to 2 decimal places, rounding up if the third decimal place is 5 or more).

Step 2. Compare that average with the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 February.

Step 3. If there is a more than 0.1% difference between that average and the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 February, the Commonwealth borrowing costs component, for the relevant period, is that average.

Step 4. If there is not a more than 0.1% difference between that average and the Commonwealth borrowing costs component for the most recent 6‑month period beginning on 1 February, the Commonwealth borrowing costs component, for the relevant period, remains the Commonwealth borrowing costs component referred to in step 2.

Corporation administrative costs component for period 1 February to 31 July

(5) The Corporation administrative costs component, for a 6‑month period beginning on a 1 February, is, subject to a direction under section 12 of the Act in relation to that period, the Corporation administrative costs component for the most recent 6‑month period beginning on 1 August.

Corporation administrative costs component for period 1 August to 31 January

(6) The Corporation administrative costs component, for a 6‑month period beginning on a 1 August, is, subject to a direction under section 12 of the Act in relation to that period, the Corporation administrative costs component for the most recent 6‑month period beginning on 1 February.

4B Interest rates on other loans

The Corporation must ensure that the interest rates on all loans made under programs prescribed by the rules for the purposes of paragraph 8(1)(g) of the Act are the interest rates applicable to farm business loans under section 4A of this instrument.

4 Part 2 (heading)

Repeal the heading, substitute:

Part 3—Other directions

5 Section 8

Repeal the section.

6 Part 3 (heading)

Repeal the heading, substitute:

Part 4—Application, saving and transitional provisions

7 At the end of Part 3

Add:

23 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application and transitional provisions

(1) Sections 4A and 4B, as inserted by Part 1 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026, apply in relation to the 6‑month period beginning on 1 February 2026 and each later 6‑month period.

(2) For the purposes of section 4A:

(a) the Commonwealth borrowing costs component, for the 6‑month period beginning on 1 February 2026, is taken to be 4.28%; and

(b) the Corporation administrative costs component, for the 6‑month period beginning on 1 February 2026, is taken to be 0.9%.

Part 2—Consequential amendments

Regional Investment Corporation (Agribusiness Natural Disaster Loans—2019 North Queensland Flood) Rule 2019

8 Paragraph 10(3)(b)

Omit “at the rate mentioned in subsection (4)”.

9 At the end of subsection 10(3)

Add:

Note: Part 2 of the Regional Investment Corporation Operating Mandate Direction 2018 deals with the interest rates applying to the loan.

10 Subsection 10(4)

Repeal the subsection.

11 At the end of the instrument

Add:

Part 5—Application, saving and transitional provisions

19 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application provision

The amendments of this instrument made by Part 2 of Schedule 1 to the Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026 apply in relation to the 6‑month period beginning on 1 February 2026 and each later 6‑month period.

Regional Investment Corporation (Agristarter Loans) Rule 2019

12 Paragraph 10(3)(c)

Repeal the paragraph.

13 At the end of subsection 10(3)

Add:

Note: Part 2 of the Regional Investment Corporation Operating Mandate Direction 2018 deals with the interest rates applying to the loan.

14 Subsection 10(4)

Repeal the subsection.

15 At the end of the instrument

Add:

Part 5—Application, saving and transitional provisions

19 Regional Investment Corporation Legislation Amendment (Interest Rates) Instrument 2026—application provision