Commonwealth: Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020 (Cth)

Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020 No. 29, 2020 Compilation No. 1 Compilation date: 9 April 2020 Includes amendments up to: Act No. 38, 2020 Registered: 29 April 2020 About this compilation This compilation This is a compilation of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020 that shows the text of the law as amended and in force on 9 April 2020 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents 1 Short title 2 Commencement 3 Simplified outline of this Act 4 Definitions 4A Non‑ADI lender 5 Loan guarantees by the Commonwealth 6 Appropriation for the purposes of loan guarantee liabilities 7 Delegation by the Minister 8 Legislative rules Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act about loan guarantees, and for related purposes 1 Short title This Act is the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020. 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 Provisions Commencement Date/Details 1. The whole of this Act The day after this Act receives the Royal Assent. 25 March 2020 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 Simplified outline of this Act • The Minister may, on behalf of the Commonwealth, grant a guarantee to a financial institution in connection with loans made, or to be made, by the financial institution to SME entities if granting the guarantee is likely to assist in dealing with the economic impacts of the Coronavirus known as COVID‑19. • The Consolidated Revenue Fund is appropriated for the purposes of meeting any liabilities that the Commonwealth incurs under those guarantees. 4 Definitions In this Act: constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies. financial institution means: (a) a body corporate that is an ADI for the purposes of the Banking Act 1959; or (b) a non‑ADI lender (within the meaning of the Banking Act 1959). legislative rules means rules made under section 8. SME entity has the meaning given by the legislative rules. 4A Non‑ADI lender For the purposes of paragraph (b) of the definition of financial institution in section 4, disregard paragraphs 7(2)(i), (ia) and (j) of the Financial Sector (Collection of Data) Act 2001. 5 Loan guarantees by the Commonwealth (1) The Minister may, on behalf of the Commonwealth, grant a guarantee to a financial institution in connection with loans made, or to be made, by the financial institution to SME entities. (2) The Minister must not grant a guarantee unless: (a) the Minister is satisfied that granting the guarantee is likely to assist in dealing with the economic impacts of the Coronavirus known as COVID‑19; and (b) the guarantee is in connection with loans made, or to be made, by a financial institution that is a constitutional corporation. (3) The grant of a guarantee must be in accordance with any requirements prescribed by the legislative rules. (4) For the purposes of the application of this section to a loan made by a financial institution, it is immaterial whether the loan was made before, at or after the commencement of this section. 6 Appropriation for the purposes of loan guarantee liabilities (1) The Consolidated Revenue Fund is appropriated for the purposes of meeting any liabilities that the Commonwealth incurs under guarantees granted under section 5. (2) The total amount appropriated under subsection (1) must not exceed $20 billion. 7 Delegation by the Minister (1) The Minister may, by writing, delegate any or all of the Minister's powers under section 5 to: (a) the Secretary of the Department; or (b) an SES employee, or acting SES employee, in the Department. Note: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901. (2) In exercising powers under a delegation under subsection (1), the delegate must comply with any directions of the Minister. 8 Legislative rules The Minister may, by legislative instrument, make rules (legislative rules) prescribing matters required or permitted by this Act to be prescribed by the legislative rules. Endnotes Endnote 1—About the endnotes The endnotes provide information about this compilation and the compiled law. The following endnotes are included in every compilation: Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history Abbreviation key—Endnote 2 The abbreviation key sets out abbreviations that may be used in the endnotes. Legislation history and amendment history—Endnotes 3 and 4 Amending laws are annotated in the legislation history and amendment history. The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation. The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law. Editorial changes The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date. If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel. Misdescribed amendments A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation "(md)" added to the details of the amendment included in the amendment history. If a misdescribed amendment cannot be given effect as intended, the abbreviation "(md not incorp)" is added to the details of the amendment included in the amendment history. Endnote 2—Abbreviation key ad = added or inserted o = order(s) am = amended Ord = Ordinance amdt = amendment orig = original c = clause(s) par = paragraph(s)/subparagraph(s) C[x] = Compilation No. x /sub‑subparagraph(s) Ch = Chapter(s) pres = present def = definition(s) prev = previous Dict = Dictionary (prev…) = previously disallowed = disallowed by Parliament Pt = Part(s) Div = Division(s) r = regulation(s)/rule(s) ed = editorial change reloc = relocated exp = expires/expired or ceases/ceased to have renum = renumbered effect rep = repealed F = Federal Register of Legislation rs = repealed and substituted gaz = gazette s = section(s)/subsection(s) LA = Legislation Act 2003 Sch = Schedule(s) LIA = Legislative Instruments Act 2003 Sdiv = Subdivision(s) (md) = misdescribed amendment can be given SLI = Select Legislative Instrument effect SR = Statutory Rules (md not incorp) = misdescribed amendment Sub‑Ch = Sub‑Chapter(s) cannot be given effect SubPt = Subpart(s) mod = modified/modification underlining = whole or part not No. = Number(s) commenced or to be commenced Endnote 3—Legislation history Act Number and year Assent Commencement Application, saving and transitional provisions Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020 29, 2020 24 Mar 2020 25 Mar 2020 (s 2(1) item 1) Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020 38, 2020 9 Apr 2020 Sch 3: 9 Apr 2020 (s 2(1) item 7) — Endnote 4—Amendment history Provision affected How affected s 4A.................... ad No 38, 2020