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THE PARLIAMENT OFTHE COMMONWEALTHOF AUSTRALIA

HOUSE OFREPRESENTATIVES

COMMONWEALTH BANK SALE BILL 1995

EXPLANATORYMEMORANDUM

(Circulatedby authorityof theTreasurer,theHon RalphWillis, MP)

75430 Cat. No. 95 5559 5

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COMMONWEALTH BANK SALE BILL 1995

TABLE OF CONTENTS

GENERAL OUTLINE

FINANCIAL IMPACT STATEMENT

NOTES ON CLAUSES

PART 1- PRELIMINARY

Clause1 ShortTitleClause2 CommencementClause3 Interpretation

PART 2- AMENDMENTS

Clause4 - Schedule

Part 3- TRANSITIONAL AND SAVINGS

Division 1 - Transitional and savingsprovisionsrelating to the Safety,RehabilitationandCompensationAct1988

ClauseS - InterpretationClause6 - SRCActcontinuestoapply to CommonwealthBank etc. for certain

purposesClause7 - SRCActcontinuestoapply for previousinjuries etc.Clause8 - Paymentof premiumsClause9 - Transitionalprovisionrelatingto PartVillA of theSRCActClause10 - Refundof licencefeeClause11 - Amendmentof declarationsClause12 - Section128A of theSRCActClause13 - Notification of amountof salaryetc

Division 2 - Transitionalandsavingsprovisionsrelatingto theDefenceForceRetirementandDeathBenefitsAct 1973

Clause14 - InterpretationClause15 - DeferredbenefitsClause16 - Periodsof eligible employment

Division 3 - Miscellaneous

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Clause17 - Savingpreviousoperationof section109 of theCommonwealthBanksAct1959Clause18 - Applicationof section63Aof theIncomeTwc AssessmentAct 1936Clause19 - Regulations

PART 4- EXEMPTIONFROMCERTAIN TAXES

Clause20 - Exemptionfrom certainStateandTerritory taxes

NOTESON ITEMS

AMENDMENT OFACTS

Item 1 - Schedule1 of theAdministrativeDecisions(JudicialReview)Act1977Item2 Section3 of theAustralianBicentennialAuthorityAct 1980

BankingAct1959

Item3-S Section5Item 6 Subsection5(2)

Banks(Shareholdings)Act1972

Item 7-9 Subsection6(1)Item 10 Subsectionl0(1AA)Item 11 Subsection10(11)Item 12 Subsection10(I1A)Item 13 Section1OAItem 14 Subsection12(1)Item 15 - Subsection13(1)

CommonwealthBanksAct1959

Item 16-18 - Section4Item 19 - PartIIItem 20 - Section27H andCommonwealthBankis notaCommonwealthauthorityor

Commonwealthcompanyetc.Item 21 - Division 3 of PartlYItem 22 - Subsection28(1A)Item 23 - Section28Item 24 - Section32Item 25 - Sections71,72,73 and74Item 26 - After subsection74(1)Item27 - Section74A andPreliminarystepsto conversionof DevelopmentBankinto a

company

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Item 28 - After section74A - Conversionof DevelopmentBank into acompanyandDevelopmentBank is nota Commonwealthauthorityor Commonwealthcompanyetc

Item 29 - Sections76 to 108Item 30 - Headingto PartVIIIItem 31 - After section108 - Preliminarystepstoconversionof Corporationinto a companyItem 32 - After section 108A - Conversionof Corporationinto acompanyandCorporation

isnotaCommonwealthauthorityor CommonwealthcompanyetcItem 33 - Section109Item 34 - Section110 - SuperannuationfundItem3S - Section114Item 36 - Section116Item37 - Section117 - Guaranteeby theCommonwealthItem38 - Sectionsll8to 127Item 39-40- Subsections128(1)Item 41 - Subsection128(2)Item 42 - Subsection128(2A)Item43-44 - Subsection128(3)Item45-47 - Subsection128(6)Item48 - Section128Item 49 - Section129

Item50 - Subsection28(1)of theCrimes(Currency)Act 1981Item 51 - Subsection57(1)of theDefence(Re-establishment)Act 1965Item 52 - Part 1 of Schedule2 of theFreedomofInformationAct 1982Item 53 - Schedule2 of theNational CrimeAuthorityAct 1984Item 54 - Section3 of theNorthernTerritory (Lessees’LoansGuarantee)Act 1954Item 55 - Scheduleof theOccupationalHealthand Safety(CommonwealthEmployment)

Act 1991Item 56 - Section10 of thePapuaNewGuinea(TransferofBankingBusiness)Act 1973

ReserveBankAct 1959

Item 57 - Section5Item 58 - Subsection17(2)

Item 59 - Section10 of theSuperannuationIndustry(Supervision)Act 1993

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COMMONWEALTH BANK SALE BILL1995

GENERAL OUTLINE

TheCommonwealthBankSaleBill 1995putsin placethenecessarylegislativeframeworkfor thesaleof theCommonwealthGovernment’sremaining50.39percentshareholdingin theCommonwealthBankandfor theconversionof theCommonwealthDevelopmentBank andtheCommonwealthBank OfficersSuperannuationCorporationinto companiesundertheCorporationsLaw.

Themainpurposesof theBill are:

• to ensurethat,postsale,CommonwealthBankbodies,whichincludetheCommonwealthBank,theCommonwealthDevelopmentBankof Australia,theCommonwealthBankOfficersSuperannuationCorporationandother subsidiariesof theCommonwealthBank, are,asfar aspracticable,subjectto legislationconsistentwith otherprivatesectorcompaniesandapprovedbanksundertheBankingAct 1959andtheCorporationsLaw;

• to provide for theconversionof theCommonwealthDevelopmentBankandtheCommonwealthBank OfficersSuperannuationCorporationfrom statutoryauthoritiestoCorporationsLaw companiesandto convertthestatutorysuperannuationfund of theCommonwealthBank Officers SuperannuationCorporationtoa trust;

• to providetransitionalarrangementsfor theCommonwealthguaranteeof the liabilities of theCommonwealthBank andtheCommonwealthBank OfficersSuperannuationCorporation;

• to provideanon goingCommonwealthguaranteeof the liabilities of theCommonwealthDevelopmentBank;

• to ensurethat theCommonwealthBankbody isnotdisadvantagedundersection63A of theIncomeTax AssessmentAct1936as aresultof thechangeinownershipresultingfrom thesaleof theCommonwealth’ssharesin theCommonwealthBank;

• toprovidetheCommonwealthBank andtheCommonwealthDevelopmentBankwithtransitionalarrangementsregardingprotectedbusinessnames;

• to ensurethat,despitethechangeof ownershipfrom theCommonwealth,employeeentitlementsalreadyaccruedundertheSafety,RehabilitationandCompensationAct 1988andtheDefenceForceRetirementandDeathBenefitsAct 1973 in respectof servicepriorto thesale,areretainedafterthe sale;and

• toprovidefor the necessaryconsequentialamendmentstootherCommonwealthlegislation.

The Bill doesnotdefinethe futureroleof theCommonwealthDevelopmentBank. TheCommonwealthDevelopmentBank’sexistingCharterasdefinedin theCommonwealthBanksAct1959will berepealedandreplacedin theMemorandumof theCommonwealthDevelopmentBank.

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TheCommonwealthwill continuetopayanannualsubsidyto theCommonwealthDevelopmentBankto undertakethebankingactivitiesdefinedin its Charter. TheCo,nmonwealthBankSaleBill1995doesnotdefinetheannualsubsidyarrangementsfor theCommonwealthDevelopmentBankSThesearrangementswill bedefinedin ashareholders’agreement(theAgreement)to beenteredintobetweentheCommonwealthandtheCommonwealthBank beforethe transfertime,ie thetime atwhich theCommonwealthceasesto havethe statusof beingtheholderof morethan50 percentofthesharesin the CommonwealthBank.

FINANCIAL IMPACT STATEMENT

Thepnmefinancialimpactansmgfrom thesaleof theCommonwealthsremaming5039percentshareholdingin theCommonwealthBank will be theoffsetto outlaysoccurringwhenthesalereceiptsarecreditedtotheCommonwealthPublicAccount. TheCommonwealth’sequity in theCommonwealthBank,basedon recentshareprices,hasa marketvaluein theorderof $4.5billion.

TheCommonwealthBankSaleBill 1995containsprovisionswhichhavefinancialimpactsin fourmain areas:

• theguaranteeof the liabilitiesof the CommonwealthBank andtheCommonwealthBankOfficersSuperannuationCorporationfora transitionalperiodandtheongoingguaranteeof theliabilities of theCommonwealthDevelopmentBank;

• employeematters;

• exemptionfrom thepossibleapplicationof section63A of theIncomeTax AssessmentAct1936 for thepurposesof theCommonwealth’ssaleof its shareholdingin theCommonwealthBank;and

• exemptionfrom certainStateandTerritory taxes,dutiesandcharges.

GUARANTEE BY THE COMMONWEALTH (SCHEDULE).

Item 37 Guarantees

In theeventthat theCommonwealthguaranteesidentifiedunderitem37 arecalledupon,theCommonwealthwill be liable foramountspayableunderthe guaranteedborrowings. TheNotesonClausesandItems(for item37) describein moredetail the natureof theCommonwealthguaranteearrangements.

EMPLOYEE MATTERS IN RELATION TO THE SAFETI~REHABILITATION ANDCOMPENSATIONACT1988AND THE DEFENCEFORCERETIREMENT AND DEATHBENEFITS ACT1973

Division 1 - Transitional Provisions relating to theSafety,RehabilitationandCompensationAct1988(SRCAct)

Undertheseprovisions,Comcarewill remainliable for SRCAct compensationclaimsarisingfromwork-relatedinjuries of CommonwealthBankemployeesuntil theCommonwealth’sshareholdingintheCommonwealthBankfalls tobelow 50 percent. TheCommonwealthBank hasmadepremiumpaymentsto Comcarefor that period.

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If theCommonwealthBankwereto apply foralicenceunderPartVillA of theSRCAct,alicencefec wouldbepayable.Theselicencesareissuedto Commonwealthauthoritiesto acceptliability forpayment,anddetermination,of compensationclaims. Clause10 providesa refundof anyfeepaidfor theportionof the financialyearremainingafterthetransfertime. Thetotalamountpayableundertheseprovisionswill dependon whenthetransfertimeoccursduring afinancialyear.

Division 2- DefenceForceRetirementandDeath BenefitsAct1973

Theseprovisionsenablecertainemployeesof theCommonwealthBank body who areex-membersoftheDefenceForcesto continuetoqualify for deferredbenefitsundertheDefenceForceRetirementandDeathBenefitsAct 1973. TheCommonwealthwill continuetobe liable topay deferredbenefitsto theseemployees.Wherethe relevantminimumperiodof servicein ‘public employment’hasnotbeencompletedprior to thetransfertime,the savingsprovisionsunderDivision 2 of theBill providefor servicewith theCommonwealthBankbody,beyondthe transfertime, to continueto becountedaspublic employment,for thepurposesof thisAct. Thenumberof affectedemployees,while likelyto be small,is notknownpreciselyandthereforeanestimateof thefinancialimpactof thesesavingsprovisionscannotbemade.

SECTION 63A OF THE INCOME TAX ASSESSMENTACT1936

Clause18 - Application of section 63A of the IncomeTaxAssessmentAct 1936

Clause18 will deemthatSection63A of the IncomeTaxAssessmentAct 1936will notapply to thedisposalof theCommonwealth’sshareholdingin theCommonwealthBank (referto theNotesonClausesfor clause18). Thepossiblecostto revenueof clause18 cannotbeestimated.

STATE AND TERRITORY TAXES, DUTIES AND CHARGES

Clause29- Exemption from certain Stateand Territory taxes

Clause20 exemptsvarioustransactionsassociatedwith thesaleof theCommonwealth’s50.39percentshareholdingin theCommonwealthBank from mostStateandTerritory taxes,levies,fees,dutiesandcharges.Whilst this would haveapositiveeffecton thesalepriceandthereforesaleproceeds,theCommonwealthhas indicatedits in-principlesupportfor providingrelevantStatesandTerritorieswith anex-gratiapaymentcompensatingthemfor stampduty foregone.

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COMMONWEALTH BANK SALE BILL1995

NOTES ON CLAUSES

PART! PRELIMINARY

Clause 1 - ShortTitle

Commencement:[Royal Assent]

1. Clause1 providesfor theAct to becitedas theCommonwealthBankSaleAct1995.

Clause2 - Commencement


2. Subclause2(1)providesfor certainclausesanditemsto commenceonRoyalAssent.Theseare:

• formal clausesrelatingto definitionsandinterpretations(Part 1);

• theexemptionfrom certainStateandTerritory taxesandcharges(Part4);

• thepreliminarystepsfor theconversionof theCommonwealthDevelopmentBankandtheCommonwealthBank OfficersSuperannuationCorporationinto companiesundertheCorporationsLaw (item 27 anditem31 of theSchedule)

• the ability ofboth theCommonwealthBank andtheCommonwealthDevelopmentBank to beinpossessionof abankingauthorityundertheBankingAct1959to carryon bankingbusiness(items 23 and26 of theSchedule);and

• the repealof existingrestrictionsregardingthe issueor transferof sharesin theCommonwealthBank (item 21 repealingDivision 3 of PartIV of theCommonwealthBanksAct 1959).

3. Subclause2(2) allowsfor thetransitionalandsavingsprovisions(Part3) andvariousitemsintheSchedulerelatingto theCommonwealthBank,CommonwealthDevelopmentBank andtheCommonwealthBank OfficersSuperannuationCorporation,to commenceat thetransfertime, ie thetimeatwhich theCommonwealthceasesto havethestatusof beingtheholderof morethan50 percentof thesharesin theCommonwealthBank.

4. Subclause2(3) allowsfor item12 of the Schedulerelatingto amendmentsof theBanks(Shareholdings)Act 1972 in regardto theCommonwealth’sshareholdingin theCommonwealthBankafter the transfertimeto commenceona dateto befixed by Proclamation.Theproclaimeddatewill beafter theCommonwealth’sshareholdingin the CommonwealthBank falls to below 10percent. Thetiming of this eventcannotbepredictedin advance.

5. Subclause2(4)providesthat item22 of theSchedulerelatingto theCommonwealthBankofAustralia’sauthorityto provideinsuranceserviceswill commenceon the first anniversaryof thedayon which the transfertimeoccurs.

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6. Subclause2(5)providesthatitem37 of theSchedulerelatingto theCommonwealthguaranteeof the liabilities of theCommonwealthBank,theCommonwealthDevelopmentBank andtheCommonwealthBank OfficersSuperannuationCorporation,will commenceatthe transfertime or atthebeginningof 9 May 1996,whicheverislater.

7. Subclause2(6)providesthatitem48 of theSchedulerelatingtotheprotectedbusinessnamesof theCommonwealthBankof AustraliaandtheCommonwealthDevelopmentBankof Australia,will berepealed10yearsfrom the transfertime. Item 1 of theScheduleregardingtheconsequentialamendmentsto theAdministrativeDecisions(JudicialReview)Act 1977will comeinto effect 10yearsfrom the transfertime,

Clause3 - Interpretation

Commencement:[RoyalAssent]

8. Clause3 providesdefinitionsof termsusedin theBill, ie ‘Bank body’; ‘CommonwealthBank’andthe ‘transfertime’.

PART 2- AMENDMENTS

Clause4 - Schedule


9 Clause4 providesfor amendmentstovariousCommonwealthActs asspecifiedm theSchedule TheseincludetheCommonwealthBanksAct 1959 theBankingAct1959andtheBanks(Shareholdings)Act 1972. The amendmentsarenecessaryto facilitatethe saleandto placetheCommonwealthBankon the samefootingasotherauthorisedbanks.AlthoughtheSchedulecomesinto effectatRoyalAssent,all of theitems in theSchedule,with theexceptionof items 1, 12,16,17,21, 22,23, 26,27,31,37and48,comeinto effectat the transfertime.

PART 3- TRANSITIONAL AND SAVINGS

Commencement[TransferTime]

10. Transitionaland savingsprovisionscontinueor modify certainobligationsof aCommonwealthBank body. Theyalsoallow for thecompletionof matterscommencedpre-saleandprovidefor theattnbutionof certamemployeebenefitsassociatedwith pre saleservicethat would otherwisebeforgonebecauseof thesale.

11 The savmgsprovisionsalsorecognisethepostsaleserviceof specificcategonesof employeesaspublicemploymentfor thepurposesof qualifyingfor certaindeferredpensionbenefitsundertheDefenceForceRetirementandDeathBenefitsAct1973.

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Division 1 - Transitional and savingprovisionsrelating to theSafety,RehabilitationandCompensationAct1988


Commencement:[TransferTime]

12. Thisclauseprovidesfor theexpressionsusedin this Division tohavethe samemeaningasintheSafety,Rehabilitationand CompensationAct 1988(‘SRCAct’).

Clause6 - Continued application of the SRCActto the CommonwealthBank for certain

purposes


13. Thisclauseprovidesthat upontheBank bodyceasingto bea Commonwealthauthorityfor the

purposesof theSRCAct,that Act continuesto apply to theextentprovidedfor in this Division.Clause 7 - Transitional provisionsrelating to the SRCAct that relate to employeesand formeremployeesof the CommonwealthBank body


14. Thisclausecontinuestheoperationof theSRCActin relationtoinjuries sufferedby employeesof theCommonwealthBankbody beforethe transfertime, andto the lossor damageto thepropertyof suchpersonsincurredbeforethe transfertime. It coversformeremployeesto theextentthat theywould becoveredundertheSRCActprior tothe transfertime. Theprovisionis notintendedtomodifyrightsandobligations,only topreservethepre-saleposition.

15. Clause7(2)providesthat for thepurposesof thesavedoperationof theSRCActunderclause7(1), a CommonwealthBank body,posttransfertime, isto betreatedasa Commonwealthauthority,andthechiefexecutiveofficer of aCommonwealthBankbody is tobetreatedastheprincipalofficerof a Commonwealthauthority.

Clause8- Paymentof premiums


16. Clause8 providesforDivision 4A of PartVII of theSRCAct to continueto apply to theCommonwealthBankbodyundercertaincircumstances.Division 4A relatestopremiumspayableby CommonwealthauthoritiesandDepartmentsto Comcare.

17. Clause8(1)providesthat a CommonwealthBankbody continuesasanauthorityfor thepurposesof theDivision,but thatit is notrequiredtopaya premiumfor that partof the financialyearfollowing the transfertime, andthat Comcaremayvarya premium,takinginto accountthe factthata CommonwealthBank bodyis notrequiredtopayapremiumforpartof a financialyear.

18. Clause8(2)providesthatany unpaidamountof premium,payableby a CommonwealthBankbodyin respectof aperiodbeforethetransfertime, is a debtdueto theCommonwealthby theBankbody andis payableto Comcare.

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Clause9 Transitional provision relating to Part VillA of the SRCAct


19. PartVIllA of theSRCAct allowsfor a body to belicensedto performcertainfunctionsundertheAct ratherthanhaveComcareperformthem. Thisprovisionprovidesfor anysuchlicenceto becancelledfromthe transfertime. Clause10providesforalicencefeepaid in relationtotheperiodafter transferto berefunded. Any on-goingobligationunderthe licencefor theperiodprior tothetransfertime wouldremainin force,

Clause10 Refundof licencefee


20. Thisclauseprovidesfora pro-ratsrefundof anylicencefeepaidundersectionlO7R of theSRCAct in theeventthat theCommonwealthBank bodyis grantedalicenceprior to the transfertime(fortheremainingperiodafter the transfertime).

Clause11 - Amendmentof declarations


21. This clauseremovesreferencesto CommonwealthBank bodiesfrom declarationsundertheSRCAct identifyinga CommonwealthBank bodyasa Commonwealthauthorityto which theSRCAct applies. Fromthe transfertime, it is intendedthat aCommonwealthBankbody will berequiredtocomply with generallyapplicableworkers’ compensationlegislation(including possiblyremainingcoveredundertheSRCAct (PartV11IB) butunderconditionsdifferentto thoseapplyingtoCommonwealthauthorities).Theprovisiondoesnotpreventsubsequentamendmentor revocationof thedeclarations.

Clause12 - Section128A of theSRCAct


22. Clause12 providesthat a CommonwealthBankbody thatwas, beforethetransfertime, liableasaprescribedCommonwealthauthority topayanamountin respectof an injury, lossordamagesufferedby oneof its employeesundersection128A.of theSRCAct,continuestobeliable after thetransfertime.

Clause13 - Notification of amount of salary etc


23. Clause13requiresthe Commissionfor Safety,RehabilitationandCompensationofCommonwealthEmployeesto benotified of theamountof pay,salaryor wagespaid to employeesofaCommonwealthBankbody (whichwas aCommonwealthauthorityundertheSRCAct immediatelybeforethe transfertime) for that partof thefinancialyearendingat the transfertime. TheCommissionmustbenotified by thechiefexecutiveofficer(howeverdescribed)of theCommonwealthBank body within 28 daysafterthe transfertime.

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Division 2 - Transitional and SavingsProvisionsrelating to the DefenceForceRetirementandDeath BenefitsAct1973



24. Clause14 definesthereferencesto theDefenceForceRetirementandDeathBenefitsAct1973asreferencesto theDFRDBAct.

Clause15 - Deferred benefits


25. Currentemployeesof a CommonwealthBank body who wereformerlymembersof theDefenceForcesandwho haveelectedto takedeferredbenefitsundertheDFRDBAct arerequiredtocompleteanaggregateof 20 years(in mostcircumstances)in theDefenceForceor in subsequentpublic employmentto enablebenefitsto bepaid.

26. In theabsenceof a specificprovision,anemployeewho hasnotservedtherequiredperiodpriorto theConunonwealthceasingto havea controllinginterestin a CommonwealthBankbody,would losehisorherentitlementtothebenefitsavailableundertheDFRDBAct.

27. Clause15 isintendedto enableformermembersof theDefenceForcewho:

• areemployedby theCommonwealthBank body immediatelybeforethe transfertime;

• haddeferredtheirbenefitsundertheDFRDBAct; and

• wereaccruingserviceinpublic employmentwith that body,

to countemploymentwith theCommonwealthBankbody aspublic employmentevenafterthetransfertime.

28. Subjectto relevanteligibility criteria, theseemployeeswould beentitledto theirdeferredbenefitsif theyremainwith theCommonwealthBankbody (or inotherpublic employment)until thequalifying period(usually20 years)iscompleted.

Clause16 - Periods of eligible employment


29. Clause16 providesthat anyperiodof employmentwith theCommonwealthBank body whichwouldhavebeeneligible employmentfor thepurposesof Division 3 of PartIX of theDFRDBAct(whichallows for thepreservationof rightsof contributingmemberswho ceasetobemembersof theDefenceForce),prior to the transfertime, will continueto beregardedaseligible employmentforthepurposesof theDivision.

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Division 3 - Miscellaneous

Clause17 - Saving previousoperation of section 109 of the CommonwealthBanksAct1959


30. Section109 of theCommonwealthBanksAct1959is to berepealed(refer toitem33 of theSchedule)asa resultof theconversionof theCommonwealthBank Officers SuperannuationCorporationinto a companyundertheCorporationsLaw, Clause17 providesthat theassetsandliabilitiesvestedin the CommonwealthBank undersection109 of theCommonwealthBanksAct1959 beforethe repealof section109 will remainvestedin theCommonwealthBank,

Clause18 - Application of section63A of the IncomeTaxAssessmentAct1936


31. Thetaxationprovisionsunderclause18 aredesignedtoprovidecertaintyin respectto thesaleofthe CommonwealthBankof the sameeffectas throughtheexerciseof theCommissioner’sdiscretionundersubsection63A(12) of the IncomeTaxAssessmentAct1936. Forthispurpose,section63A, whichcontainsacontinuityof ownershiptest,will bedeemednotto apply to thedisposalof theCommonwealth’sshareholdingin theCommonwealthBank toprivateshareholders.

32. Section63Arequires,asa conditionfor adeductiontobe allowedundersection63 for abaddebtwritten off by a company,that amajorityof sharesin thecompanymustbebeneficiallyownedby thesameshareholderswho beneficiallyownedthemajorityof sharesimmediatelybeforethedebtcameinto existence.

33. Subsection63A(12)applieswheretheCommissionerconsidersthat,havingregardtothepersonswho werebeneficialownersof thecompany’sshareswhenthedebtbecamebad,it would beunreasonablefor the testto apply. Sincethepurposeof section63A is to deterchangesinownershipmotivatedby awishto attractthedeductionin section63, thepurposeof theCommissioner’sdiscretionis topreventtheoperationof thesection63A in circumstanceswherenosuchmotiveis evident. Thereforetheprovisionisfully consistentwith the intentionof section63A.

34. Clause18 will apply in all circumstanceswheresaleof theCommonwealth’sshareholdingmight otherwiseconstituteachangeof ownershipin the termsof section63A,that is, eitheratthetransfertimeor thecompletiontimeand irrespectiveofwhetherthesaleis sostructuredthat anintermediaryor intermediariesareinterposedbetweentheCommonwealthassellerand thebuyersoftheCommonwealth’sshares.

35. Clause18 will notpreventsection63A from applyingtoanysubsequentchangein ownershipofthe CommonwealthBankor to anypreviousor concurrentchangein ownershipof a Bankbody’asdefinedin Part 1 of theBill whichis causedotherthanby disposalof theCommonwealth’sshareholdingin theCommonwealthBank.

Clause19- Regulations


36. Clause19enablesregulationsto bemaderegardingany savingsor transitionalmattersarisingoutof the Commonwealth’ssaleof its sharesin theCommonwealthBank or relatedmattersarisingoutof theenactmentof the CommonwealthBankSaleBill 1995. Subclause19(3)providesthat

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suchregulationscantakeeffectretrospectivelybutnotearlierthanthe transfertime. Withoutsubelause19(3), regulationsrelatingto savingsandtransitionalmattersrelatedtO the salemaynotbeabletocommencebeforethedatetheyarenotifiedin theGazettetherebypotentiallyfrustratingthesale.

PART 4- EXEMPTIONFROM CERTAIN TAXES

Clause20 - Exemption from certain Stateand Territory taxes


37. This provisionexemptsfrom StateandTerritory taxes,fees(otherthanfeesundertheCorporationsLaw), duties,leviesandchargesfor avarietyof transactionsrelatingto theCommonwealth’sdisposalof its sharesin theCommonwealthBank,including:

• thesaleby theCommonwealthof anyof its sharesin theCommonwealthBank andanyagreementsrelatingthereto(otherthana saleof suchsharesto theCommonwealthBank,ieanyCommonwealthBank buybackof its sharesfrom theCommonwealthwill notbecoveredby this exemption)

• the transferof anyof theCommonwealths sharesin theCommonwealthBankto apersonotherthantheCommonwealthBank; and

• the receiptof moneyby theCommonwealthin respectof a saleof its sharesin theCommonwealthBank.

38. The intentionof this provisionis to enhancetheattractivenessof theCommonwealth’ssaleofits CommonwealthBank sharestoeligible potentialpurchasers.

39. TheMinisterfor Finance,or the Secretaryto theDepartmentof Financeoran authoriseddelegate(who mustbeamemberof theSeniorExecutiveService)maycertify that a matterisexemptorhasbeendonebecauseof or for apurposeconnectedwithor arising outof a specifiedexemptmatter Sucha certificateis evidenceof that matterunlessthecontraryis established

40. TheCommonwealthhasindicatedits in-principlesupportforprovidingrelevantStatesandTerritorieswith anex-gratiapaymentcompensatingthemfor stampduty foregone.

41. TheMinistermaypublisha noticein theGazettedeclaringthattheexemptiondoesnotapplyin relationto aparticularimpost.

SCHEDULE

AMENDMENT OF ACTS

42 Themain objectivesof theScheduleto theCommonwealthBankSaleBill 1995are to

• makethenecessaryamendmentsto theCommonwealthBanksAct 1959,theBankingAct1959andtheBanks(Shareholdings)Act1972 to facilitatethe saleof theCommonwealth’ssharesintheCommonwealthBank;

• providefor theconversionof theCommonwealthDevelopmentBankandtheCommonwealthBank Officers SuperannuationCorporationinto CorporationsLaw companies;

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• providethe transitionalarrangementsrelatingto theCommonwealth’sguaranteeof theliabilitiesof theCommonwealthBankandtheCommonwealthBank OfficersSuperannuationCorporation(includingtheon-goingCommonwealthguaranteeof the liabilities of theCommonwealthDevelopmentBank);

• providethe transitionalarrangementsrelating totheprotectionof thebusinessnamesof theCommonwealthBankandtheCommonwealthDevelopmentBank; and

• makeconsequentialamendmentsto variousActswhich referto CommonwealthBankbodies(including theCommonwealthBankingCorporation)which will no longerbeapplicablefromthe transfertime.

AdministrativeDecisions(Judicial Review)Act1977

Item 1 - Schedule1

Commencement:[10 yearsfrom theTransferTime]

43. This itemremovesreferenceto decisionsmadeundertheCommonwealthBanksAct1959 fromthe Scheduleof theAdministrativeDecisions(JudicialReview)Act1977asclassesof decisionsthatarenotdecisionstowhich this Act applies. TheCommonwealthBanksAct 1959will providefor nodecisionsto bemadethat affecttheAdministrativeDecisions(JudicialReview)Act1977 10yearsafterthe transfertime.

Australian BicentennialAuthorityAct1980

Item 2 - Section3


44 This itemomits theCommonwealthBankof Australia from thedefinitionof approvedbankfor thepurposestheAustralianBicentennialAuthorityAct 1980. Followingthis amendment,theCommonwealthBankcanseektobean approvedbankfor thepurposesof theAustralianBicentennialAuthorityAct 1980in the samewayasany otherbank.

BankingAct 1959

Item 3 - Section 5


45. ThisitemomitstheCommonwealthBankand CommonwealthDevelopmentBank fromthesection5 definitionof ‘bank’ undertheBankingAct1959. The CommonwealthBank andCommonwealthDevelopmentBankhavepreviouslybeensubjecttotheBankingAct1959becausetheyhavebeendefinedasbanksin section5. TheCommonwealthBankandCommonwealthDevelopmentBank will bereceivingseparatebankingauthoritiesundersection9 (Authority toCarryingon BankingBusiness)of theBankingAct 1959. Undersection9, theCommonwealthBankand CommonwealthDevelopmentBank will besubjectto theBankingAct 1959in thesameway asotherauthorisedbanks.

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Items 4 and 5- Section5


46. Theseitemsomit thedefinitionsof “the CommonwealthBank” and“the CommonwealthDevelopmentBank” fromsection5 of theBankingAct 1959.

Item 6- Subsection5(2)


47. This item omitsthe interpretationof a referenceto ‘Schedule’ for thepurposesof theBankingAct 1959. It is generallyacceptedin Commonwealthlegislationthatreferenceto ‘Schedule’ in anyAct refersto a ‘Schedule’ in that Act. This itemalso omitsthedefinitionof seniorofficer in relationto theCommonwealthBankand theCommonwealthDevelopmentBank.

Banks (Shareholdings)Act1972

Items 7 to 9 - Subsection6(1)


48. Referencesto theCommonwealthBank andtheCommonwealthDevelopmentBank areomittedfrom the ‘Interpretation’of theBanks(Shareholdings)Act 1972, TheCommonwealthBankand theCommonwealthDevelopmentBankwill no longerberequiredto bespecificallydefinedintheBanks(Shareholdings)Act 1972becausetheywill be subjectto theBanks(Shareholdings)Act1972 whentheyreceivea bankingauthorityundersection9 of theBankingAct1959.

Items 10 to 15 - Subsections10(1AA), 10(11)and 10(11A),Section1OA and Subsections12(1)and 13(1)


49. Theseitems apply so that section10 (Limitation of ShareholdingsinBanks)of theBanks(Shareholdings)Act 1972appliesto theCommonwealthBank andtheCommonwealthDevelopmentBank. Theseitems also allow theCommonwealthandits associatesto holdmorethan 10 percentoftheCommonwealthBankundertheBanks(Shareholdings)Act 1972 astheinterestwill bedisregarded.WhentheCommonwealth’sshareholdingfalls below10 percent,theseitemsfacilitateaproclamationto repealsubsection11A. Subsection1 1A allows for thedisregardingof theCommonwealth’sinterest.

CommonwealthBanksAct1959

Items 16 and 17 - Section4 (Broadening of definitions)

Commencement:[RoyalAssent]

50. Theseitemsbroadenthedefinition of ‘Corporation’and‘DevelopmentBank’undersection4of theCommonwealthBanksAct1959 to include‘thatbody ascontinuingin existencewith adifferentname’. Theseitemswill accommodateanychangein thenamesof theCommonwealthDevelopmentBank andtheCommonwealthBank OfficersSuperannuationCorporationfollowingtheir conversionto CorporationsLaw companies.

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Item 18 - Section4 (definitions of Managing Director, net profits, officer, ReserveBank andService)


51. This itemomitsvariousdefinitionsfrom section4 of theCommonwealthBanksAct 1959 at the

transfertimeasthesedefinitionswill no longerbeapplicableto theCommonwealthBank body.

Item 19 - Part il of theCommonwealthBanksAct1959


52. This itemrepealsPartII of theCommonwealthBanksAct 1959relatingtotheCommonwealthBankBoard,includingtheTreasurer’snomineeon theBoardandtheManagingDirector. Fromthetransfertime, theCommonwealthwill notberepresentedon theCommonwealthBankBoard andtheBoardwill be subjectto theobligationsof otherapprovedbanksandcorporationsundertheCorporationsLaw.

53. TheCommonwealthandtheCommonwealthBank areto negotiateappropriateaccountabilityarrangementsbeforethe transfertimerelatingtothe transitionalCommonwealthguaranteeof theliabilities of theCommonwealthBank andtheCommonwealthBank OfficersSuperannuationCorporationandtheon-goingguaranteeof the liabilitiesof theCommonwealthDevelopmentBank.Thesearrangementswill beof a contractualnatureandwill bebinding onthe CommonwealthBankbody.

Item20 - CommonwealthBank is notaCommonwealthauthorityor Commonwealthcompanyetc.


54, This itemprovidesthatfrom the transfertime, theCommonwealthBank will no longerbesubjectto legislationthatappliestoa Commonwealthauthorityor acompanyin whichtheCommonwealthhasa ‘controlling interest’,

55. Althoughthe itemrepealstheexistingsection27H of theCommonwealthBanksAct 1959,theexistingsection27H isrestatedin item20(1)and20(2). Item 20(3)providesthatfrom thetransfertime, theCommonwealthwill nothaveacontrollinginterestora substantialinterestin theCommonwealthBankand,thus, will notbe in apositionto controltheCommonwealthBank. Thisitemmakesit clearthat from the transfertime,the CommonwealthBankwill no longerbecoveredby laws thatreferto ‘a companyinwhich theCommonwealthhasacontrollingor substantialinterest’.

Item 21 - Division 3 of Part IV


56. Item 21 repealsDivision 3 of PartlY of theCommonwealthBanksAct1959 regardingtherestrictionon the issueof sharesetcin theCommonwealthBank. Division 3 of PartIV imposedrestrictionson foreignapplicationfor the initial issueof CommonwealthBank sharesandimposesaminimumCommonwealthshareholdingin theCommonwealthBank. It is necessarytorepealDivision 3 of PartIV to facilitatethesaleof theCommonwealth’ssharesin theCommonwealthBank.

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57. TheCommonwealthBankSaleBill 1995doesnotimposeanylegislativerestrictionson theability of foreign intereststoacquiresharesin theCommonwealthBank. However,theCommonwealthBank will remainpredominantlyAustralianownedimmediatelyafter thesaleandwill haveadispersedshareownershipgiven theapplicationof theForeignAcquisitionsandTakeoversAct 1975,theBanks(Shareholdings)Act 1972andtheallocationpolicy expectedto applyin thesaleprocess.

Item 22- Subsection28(1A)

Commencement:[12 monthsfrom theTransferTime]

58. This itemomitssubsection28(1A)of theCom,nonwealthBanksAct1959 12 monthsafter thetransfertime. Item 22 seeksto providetheCommonwealthBankwith atransitionalperiod tofacilitatethetransferof its insuranceservicesto its wholly ownedsubsidiary,CommonwealthConnectInsuranceLimited.

Item 23 - Section28


59. Item 23 broadensthescopeof section28 of theCommonwealthBanksAct 1959by providingthat theCommonwealthBank maypossessa bankingauthorityundersection9 of theBankingAct1959 in additiontothebankingpowersaccordedto it undersection28(1) of theCommonwealthBanksAct 1959.

60 TheCommonwealthBankis expectedto obtaina bankingauthontyundersection9 of theBankingAct 1959. However,theCommonwealthBank’sexistingnoteissueshavebeenwritten ontheunderstandingthatits authorityto undertakegeneralbankingbusinessundersection28(1)of theCommonwealthBanksAct1959will remain. Item 23 seeksto ensurethattheCommonwealthBankwill notbe in breachof thesenoteissueswhilst in possessionof abankingauthorityundersection9of theBankingAct 1959.

61. TheCommonwealthBank is toprovideanundertakingto theCommonwealththat it will notuseits enactedbankingpowersundersection28(1)foranypurposeotherthanthemaintenanceofthosenoteissuesenteredinto undersection28(1).

Item 24 - Section32


62. This itemrepealssection32 of theCommonwealthBanksAct1959relatingto thedeclarationof dividendsby theCommonwealthBank Fromthe transfertime theCommonwealthBankwill beon thesamelegalfootingregardingthedeclarationof dividendsas anyotherapprovedbankandCorporationsLaw company.

Item 25 - Sections71,72,73 and74


63. This itemrepealssections71 to 74 of theCommonwealthBanksAct1959 relatingto thenatureof theCommonwealthDevelopmentBank,its functionsandpowers. Sections71 to74 aretoberepealedastheywill no longerberelevant.

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64. Thepowersof theCommonwealthDevelopmentBankasabankandacompanywill bedefinedin thecontextof its bankingauthorityundersection9 of theBankingAct1959andtheCorporationsLaw. The CommonwealthDevelopmentBank’scurrentCharter(asdefinedundersections72and 73 of theCommonwealthBanksAct 1959)will becontainedin theMemorandumoftheCommonwealthDevelopmentBank.

Item 26 - After subsection74(1)


65. Item 26 broadensthescopeof section74(1)of the CommonwealthBanksAct 1959byprovidingthatthe CommonwealthDevelopmentBankmaypossessabankingauthorityundersection9 of theBankingAct1959in additionto thebankingpowersaccordedto it undersection74(1)oftheCommonwealthBanksAct 1959. Item 26 will berepealedatthe transfertime andisintendedtoprovidetheCommonwealthDevelopmentBank with flexibility regardingtheattainmentof a bankingauthorityundersection9 of theBankingAct1959up to the transfertime.

Item27 - Section 74AandPreliminarystepstoconversionof DevelopmentBank into acompany


66. Item 27 repealstheexistingsection74A of theCommonwealthBanksAct 1959regardingthesharecapitalof theCommonwealthDevelopmentBank andsubstitutesvarioussub-itemswhichprovidethepreliminarystepsto theconversionof theCommonwealthDevelopmentBankfrom astatutoryauthorityto alimitedpublic companyundertheCorporationsLaw.

67. Item 27 identifiesthebasisof thesharecapitalfor theCommonwealthDevelopmentBank andtheprocessto befollowed by theDevelopmentBankto registerasacompanylimitedby sharesundertheCorporationsLaw. Sub-item27(1)providesthattheCommonwealthDevelopmentBankwill continueto havethesharecapital(andwith the sameownership)that it hadbeforethecommencementof thesection.The sharecapitalof theCommonwealthDevelopmentBankwillthereforecontinueto be91.9percentownedby theCommonwealthBank and 8.1 percentownedby theCommonwealth.

68. Sub-item27(4)providesthat theCommonwealthDevelopmentBankmustapply to theAustralianSecuritiesCommissionundertherelevantprovisionsof theCorporationsLaw to registerasalimitedcompany,toreservethename‘CommonwealthDevelopmentBankof AustraliaLimited’andtolodge aproposedMemorandumandArticles for theDevelopmentBank.

Item28 - Conversionof DevelopmentBank into a companyandDevelopmentBank is notaCommonwealthauthority or Commonwealthcompanyetc


69. Item 28 providesfor theconversionof theCommonwealthDevelopmentBankinto a publiccompanylimited by sharesundertheCorporationsLaw from thetransfertime. Theitemprovidesthatfrom the transfertime theCommonwealthDevelopmentBank will becomearegisteredcompanyunderthe relevantprovisionsof theCorporationsLaw with its ownmemorandumandarticlesandmembership.Sub-item28(6)providesthatthisitemdoesnotpreventanyvariationof the share

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capitalof theCommonwealthDevelopmentBank,achangeof its nameor achangeof thestructure,Memorandum,Articlesormembershipof theCommonwealthDevelopmentBank.

70. A shareholders’agreement(theagreement)to beenteredinto betweentheCommonwealthandtheCommonwealthBankregardingtheCommonwealthDevelopmentBank will providethattheexistingCharterof theCommonwealthDevelopmentBank ascurrentlydefinedin sections72 and73of theCom,nonwealthBanksAct1959,will beretainedin theMemorandumof theCommonwealthDevelopmentBank. Theagreementwill alsoprovidethat:

• theCommonwealthwill notberepresentedontheBoardof theCommonwealthDevelopmentBank;

• theCommonwealthwould nothaveanoptiontopurchasethesharesof theCommonwealthBankin theCommonwealthDevelopmentBank,buttheCommonwealthBankwill haveanoptionto purchasetheCommonwealth’ssharesin theCommonwealthDevelopmentBank intheeventthat theCommonwealthdecidedto sellits CommonwealthDevelopmentBankshareholdingor if an adequateannualCommonwealthsubsidyto theCommonwealthDevelopmentBank wasnotpaid; and

• the CommonwealthBankwill notexerciseitsvoting powerto amendtheMemorandumandArticlesof the CommonwealthDevelopmentBank to changetheCharterof theCommonwealthDevelopmentBankwhile an adequateCommonwealthsubsidywasin place

71. Analogouswith item20, item28 providesthatfrom the transfertime, theCommonwealthDevelopmentBankwill no longerbe subjecttolegislationthatappliesto a Commonwealthauthorityoracompanyinwhich theCommonwealthhasa ‘controlling interest’.

Item 29 - Sections76 to 108


72. This itemrepeals,from the transfertime, sections76 to 108 of theCommonwealthBanksAct1959relatingto theCommonwealthDevelopmentBank’sprofits,management,agents,reservefund,loansby theTreasurerandgrantsof financialassistance.TheitemalsorepealsthoseprovisionsoftheCommonwealthBanksAct1959 relatingto theapplicationof themeritprincipleandtheappointmentof officersto theCommonwealthBankandrepealstheprovisionidentifying theCommonwealthBank OfficersSuperannuationCorporation.

73. Theseprovisionsof theCommonwealthBanksAct 1959areto berepealedastheywill nolongerberelevant. As publiccompaniesundertheCorporationsLaw andwith only a smallminorityCommonwealthshareholding(in thecaseof theCommonwealthDevelopmentBank),theCommonwealthBank bodywill besubjecttothenormalcommercialreportingandmanagementrequirementsof CorporationsLaw companies.

74. Theemployeesof theCommonwealthBank body will be subjectto therightsandprivilegesdefinedin relevantawardsfor financeindustryemployeesandtheapplicationof relevantStateandTerritory lawsregardingequalemploymentopportunity.

75. The CommonwealthBankOfficersSuperannuationCorporationis to beconvertedinto apublic companyundertheCorporationsLaw. Section108 will berepealedafter theconversionof

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theCommonwealthBank OfficersSuperannuationCorporationasit will no longerberelevant.

Referto items31 and32 below.Item 30 - Heading to Part VIII


76. This itemamendstheheadingto PartVIII of theCommonwealthBanksAct 1959 to ‘THECOMMONWEALThBANK OFFICERSSUPERANNUATIONCORPORATION’. Thisamendmentis necessaryasPartVifi will onlyrefertotheCommonwealthBank OfficersSuperannuationCorporationfrom the transfertime.

Item 31 - After section108 - Preliminary stepstoconversionof Corporation intoacompany


77. Item 31 providesthepreliminarystepsto theconversionof theCommonwealthBankOfficersSuperannuationCorporationfromastatutoryfund to alimited public companyundertheCorporationsLaw. The ‘Corporation’will managethe superannuationfund of theCommonwealthBankin accordancewith theTrustDeedunderitem34.

78. Item 31 identifiesthebasisof thesharecapitalfor theCorporationandtheprocessto befollowedby the CommonwealthBanktoregistertheCommonwealthBankOfficersSuperannuationCorporationas acompanylimited by sharesundertheCorporationsLaw. Sub-item31(3)providesthat assoonas practicableafter theCorporationhasacquiredasharecapital,it mustissuethesesharesto theCommonwealthBank.

79. Sub-item31(5)providesthat theCommonwealthBank mustapply to theAustralianSecuritiesCommissionunderthe relevantprovisionsof theCorporationsLaw to registertheCorporationasalimited company,to reservethename‘CommonwealthBank OfficersSuperannuationCorporation’andto lodgeaproposedMemorandumandArticles for the Corporation.

Item 32 - After section108A - Conversionof Corporation into a companyand Corporationisnot a Commonwealthauthority or Commonwealthcompanyetc


80. Item 32 providesfor theconversionof theCommonwealthBank OfficersSuperannuationCorporationinto a public companylimited by sharesundertheCorporationsLawfrom the transfertime. The itemprovidesthat from thetransfertimetheCommonwealthBankOfficersSuperannuationCorporationwill becomea registeredcompanyundertherelevantprovisionsof theCorporationsLawwith its own MemorandumandArticlesandmembership.Sub-item32(7)providesthat this itemdoesnotpreventanyvariationof thesharecapitalof theCommonwealthBank OfficersSuperannuationCorporation,achangeof itsnameor a changeof its structure,Memorandum,Articlesormembership.

81. Analogouswith items20 and28, item32 providesthat from the transfertime, theCommonwealthBank OfficersSuperannuationCorporationwill no longerbesubjecttolegislationthat appliesto a Commonwealthauthorityor a companyinwhich theCommonwealthhasa‘controlling interest’.

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Item 33 - Section 109


82. This itemrepealssection109 of the CommonwealthBanksAct 1959relatingto theassetsandliabilities of the Corporation.Section109,whichrelatesto theCorporationasa statutoryfund, istoberepealedfrom the transfertimeas it will no longerberelevantwhentheCorporationis converted.

83. Clause17 providesa savingsprovisionto subsections109(1)and 109(2) assubstantialassetsandliabilitieshavebeenvestedin theCommonwealthBankby theCorporationundersubsections109(1)and 109(2) of theCommonwealthBanksAct 1959.

Item34- Section110 - Superannuationfund


84. This itemrepealssection110 of the CommonwealthBanksAct 1959relatingto thesuperannuationfund of theCorporationand substitutesanew superannuationfund provision. Theitemeffectivelyfacilitatesthe transferof thesuperannuationfund from thestatutoryfund to theCorporationsLawcorporation.Theitemprovidesthat thefund that was in existenceundersection110 of theCommonwealthBanksAct1959 (includingtherightsandliabilities of fund membersandbeneficiaries),continuesin existenceandis to begovernedby theTrust Deedthatappliedbeforethecommencementof this section

Items35 and36 - Sections114 and 116


85. Theseitemsrepealsections114 and 116 of theCommonwealthBanksAct1959relatingto theinterpretationof PartIX of theCommonwealthBanksAct 1959andtheappointmentof attorneys.Thesesectionsareto berepealedastheywill no longerberelevantfrom the transfertime.

Item 37 Section117 - Guarantee by the Commonwealth

Commencement:[TransferTimeor atthebeginningof 9 May 1996,whicheverislater]

86. This itemprovidestransitionalarrangementsfor the Commonwealthguaranteeofthe liabilitiesof theCommonwealthBank andits subsidiaries(excepttheCommonwealthDevelopmentBank)andtheCommonwealthBank Officers SuperannuationCorporationfrom the transfertimeor thebeginningof 9 May 1996 whicheveris the later (the ‘effectivedate’). Thetransitionalperiodforwhichthe guaranteeappliesis dependenton whetherthe liability is ademanddeposit,atermdepositor anyotherliability.

87. Item37 providesthat theCommonwealthguarantees:

• theduepaymentof anyamountthatis payableby theCommonwealthBankon a demanddepositfrom theeffectivedayuntil theendof thedaythreeyearsafter theeffectivedate(thecut off time)

• theduepaymentof any amountthat ispayableby theCommonwealthBank on atermdeposit,madebeforethecut-off time, until thepaymentof the termdeposit;and

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all otherliabilitiesandoff-balancesheetobligationsinplaceprior to thecommencementof thisitemuntil the maturityof theseliabilities,

~8. Sub-item37(2)providesthat theCommonwealthwill continueto guaranteeall of the liabilitiesDf theCommonwealthDevelopmentBank that arepayableto a person,otherthantheCommonwealth.

~9. Sub-item37(3)providesthat theCommonwealthwill guaranteethe liabilitiesof theCommonwealthBank OfficersSuperannuationCorporation(or thesuperannuationfund) for apersonwhowas amember,retiredmemberor beneficiarybeforethecommencementof this section.

~0. TheCommonwealthandthe CommonwealthBank areto negotiateappropriateaccountabilityarrangementsbeforethe transfertimerelatingto the Commonwealthguaranteeof the liabilitiesofthe CommonwealthBankandits subsidiaries(including theCommonwealthDevelopmentBank)andthe CommonwealthBank OfficersSuperannuationCorporation.Thesearrangementswill be of acontractualnatureandwill bebindingon theCommonwealthBankbody.

Item 38 - Sections118 to 127


91. This itemrepealssections118 to 127 of PartIX of theCommonwealthBanksAct1959relatingto theCompaniesAct1981, taxationmatters,propertyimprovements,theexecutionofcontracts,theaffixing of seals,personsdealingwith bodies,judicial noticeof seals,investmentoftrustmoneysand thevalidity of actsandtransactions.Thesesectionsarebeingrepealedastheywillno longerberelevantto theCommonwealthBank bodyafter thetransfertime.

Items 39 to41 - Subsections128(1) and 128(2)


92. This itembroadensthe applicationof section128 of theCommonwealthBanksAct 1959regardingtheuseof certainnamesfrom ‘the CommonwealthBank’ to ‘a Bank body’. Thisamendmentwill allow for theCommonwealthDevelopmentBankof AustraliaLimited tousecertainnames.

Item42 - Subsection128(2A)


93. This itemprovidesthatfor 6 monthsfrom the transfertime, eachprotectednameof theCommonwealthDevelopmentBankof AustraliaLimited isto beregardedasa nameof theDevelopmentBankfor thepurposesof section219of theCorporationsLaw.

94. Followingits conversionto alimited publiccompanyundertheCorporationsLaw from thetransfertime, theCommonwealthDevelopmentBankof AustraliaLimited wouldnotnormallybepermittedtouseanyotherbusinessnamebutits registerednameinshopfrontsandpublicdocumentsasdefinedundertheCorporationsLaw. This itemprovidestheCommonwealthDevelopmentBankof AustraliaLimited with a six monthperiodtomakethenecessaryadjustmentsto its shopfrontsanddocumentationbeforehavingto comply with the relevantapplicationof theCorporationsLaw,

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Items 43,44,45and 46 - Subsection128(3)andSubsection128(6) (definition of protectedname)


95. Theseitemsbroadentheapplicationof subsection128(3)andthedefinitionsundersubsection128(6) of the CommonwealthBanksAct 1959regardingprotectedbusinessnames.Theseamendmentswill allow theCommonwealthDevelopmentBankof AustraliaLimited to protectcertainnamesfor atransitionalperiod.

Item 47 - Subsection128(6)


96. This itemprovidestheCommonwealthDevelopmentBankof AustraliaLimited withvarious

protectednamesfor a transitionalperiodof 10 years.Item 48 - Section 128

Commencement:[10 yearsfrom theTransferTime]

97. This itemrepealssection128 of the CommonwealthBanksAct 1959 10yearsfrom thetransfertime. Section128 isto beretainedfor this periodto providetheCommonwealthBankbodywith sufficientopportunityto developappropriatestrategiesto utiisethevalueof itsprotectednames.

Item 49 - Section129


98. This itemamendstheregulationmakingpowersundersection129 of theCommonwealthBanksAct 1959by omittingreferenceto the ‘conductof businessby theDevelopmentBank’. Thisamendmentis necessaryasthebusinessof theCommonwealthDevelopmentBankof AustraliaLimited will bedefmedin its MemorandumandArticlesasa limitedpublic companyundertheCorporationsLaw andits bankingauthorityundersection9 oftheBankingAct1959.

Crimes(Currency)Act 1981

Item 50- Subsection28(1)

Commencement[TransferTime]

99. This item omits the term ‘CommonwealthBankingCorporationService’ from theCrimes(Currency)Act 1981. Theterm ‘CommonwealthBankingCorporationService’ wasmaderedundantina previousamendmentto theCommonwealthBanksAct 1959. Theproposedconsequentialamendmentsin theCommonwealthBankSaleBill 1995will notaffectthe applicationof theCrimes(Currency)Act 1981.

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Defence(Re-establishment)Act1965

[tem 51 - Subsection57(1)


100. This itemomitsreferenceto theCommonwealthBank andtheCommonwealthDevelopmentBankasbanks. Thisitemdoesnot limit the scopeof theDefence(Re-establishment)Act 1965asthis Act allows anagreementto bemadewith anybank,

Freedomof Information Act1982

Item 52 - Part 1 of Schedule2


101. This itemremovesreferencesto pastand presentCommonwealthbankingbodiesin Schedule2from theFreedomofInformationAct1982. At transfertime,pastandpresentCommonwealthbankingbodieswill ceaseto be subjecttotheFreedomofInformationAct 1982 irrespectiveofwhetherornot theyareidentifiedin Schedule2 of theAct.

National Crime AuthorityAct1984

Item 53 - Schedule2


102. ThisitemremovespastandpresentCommonwealthBankbodiesfrom theSchedulethatrequiresthesebodiesto comply with theNationalCrime AuthorityAct 1984, At transfertime, pastandpresentCommonwealthBankbodieswill no longerbe subjectto theNationalCrimeAuthorityAct1984.

NorthernTerritory (Lessees’LoansGuarantee)Act 1954

Item 54 - Section3 (definition of bank)


103. This itemremovesfromthedefmitionof bankin theNorthernTerritory(Lessees’LoansGuarantee)Act 1954,pastandpresentCommonwealthBankbodies.TheCommonwealthBank andtheCommonwealthDevelopmentBank will remainin thedefinition of bankundertheNorthernTerritory (Lessees’LoansGuarantee)Act 1954 by virtue of being authorisedundersection9 of theBankingAct1959.

OccupationalHealth andSafety(CommonwealthEmployment)Act 1991

Item 55 - Schedule


104. This itemomits theCommonwealthBankfrom thelist of GovernmentBusinessEnterprisestowhichtheOccupationalHealthAndSafety(CommonwealthEmployment)Act 1991applies. At

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transfertime, theCommonwealthBankwill no longer be aCommonwealthauthorityandwill ceaseto be subjectto theOccupationalHealthAndSafety(CommonwealthEmployment)Act 1991.

PapuaNewGuinea(TransferofBankingBusiness)Act 1973

Item 56 - Section 10 (definition of authorisedofficer)


105. This itemomits seniorofficersof pastandpresentCommonwealthBankbodiesfrom thedefinitionof authorisedofficersfor thepurposesof thePapuaNewGuinea(TransferofBankingBusiness)Act 1973.

ReserveBankAct1959

Item 57 - Section 5 (definition of bank)


106. This itemremovesfrom thedefinitionof bankin theReserveBankAct 1959pastandpresentCommonwealthBankbodies. TheCommonwealthBankand theCommonwealthDevelopmentBankwill continueto besubjectto theReserveBankAct1959definitionof ‘bank’ by virtue of beingauthorisedundersection9 of theBankingAct1959.

Item 58 - Subsection17(2)


107. This itemremovestheexemptionthatpermitsthe Secretarytothe Departmentof theTreasurytobe amemberof boththeReserveBank andCommonwealthBankBoards.Thisexemptionwill nclongerbe requiredas theSecretaryto theDepartmentof theTreasurywill ceaseto bea memberoftheCommonwealthBank Boardat transfertime.

SuperannuationIndustry(Supervision)Act 1993

Item 59- Section 10 (definition of approvedbank)


108. This itemremovespastandpresentCommonwealthBank bodiesfrom thedefinitionofapprovedbankfor the purposesof theSuperannuationIndustry(Supervision)Act1993. TheCommonwealthBank andtheCommonwealthDevelopmentBank will remainin thedefinitionofapprovedbankfor the purposesof theSuperannuationIndustry(Supervision)Act 1993 by virtue ofbeingauthorisedundersection9 of theBankingAct1959.

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commonwealth bank sale bill 1995 · ofthe commonwealth bank of australia andthe commonwealth...

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