{"id":"C2019A00046","name":"Australian Business Securitisation Fund Act 2019","slug":"australian-business-securitisation-fund-act-2019","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"46 of 2019","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436317,"registerId":"C2019A00046-fast-fetch-1775953550625","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Australian Business Securitisation Fund Act 2019","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nAustralian Business Securitisation Fund Act 2019\n\n \n\nNo. 46, 2019\n\n \n\n \n\n \n\n \n\n \n\nAn Act to establish the Australian Business Securitisation Fund, and for related purposes\n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Short title\n\n2 Commencement\n\n3 Objects of this Act\n\n4 Simplified outline of this Act\n\n5 Definitions\n\n6 Crown to be bound\n\n7 Extension to external Territories\n\n8 Extra‑territorial application\n\nPart 2—The Australian Business Securitisation Fund\n\n9 Simplified outline of this Part\n\n10 Establishment of the Australian Business Securitisation Fund\n\n11 Establishment of the Australian Business Securitisation Fund Special Account\n\n12 Investments of the Fund\n\n13 Investment Mandate\n\n14 Credits to the Account\n\n15 Purposes of the Account\n\n16 Reducing the balance of the Account\n\nPart 3—Miscellaneous\n\n17 Simplified outline of this Part\n\n18 Constitutional limits\n\n19 Delegations by the Minister\n\n20 Annual report\n\n21 Review of operation of this Act\n\n22 Rules\n\n \n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\nAustralian Business Securitisation Fund Act 2019\n\nNo. 46, 2019\n\n \n\n \n\n \n\nAn Act to establish the Australian Business Securitisation Fund, and for related purposes\n\n[Assented to 5 April 2019]\n\nThe Parliament of Australia enacts:\n\nPart 1—Preliminary\n\n \n\n1  Short title\n\n  This Act is the Australian Business Securitisation Fund Act 2019.\n\n2  Commencement\n\n (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.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this Act The day after this Act receives the Royal Assent. 6 April 2019\n\n\nNote: 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.\n\n (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.\n\n3  Objects of this Act\n\n  The objects of this Act are to increase the availability, and reduce the cost, of credit provided to small and medium enterprises by the Commonwealth investing in debt securities in accordance with this Act.\n\n4  Simplified outline of this Act\n\nThis Act sets up the Australian Business Securitisation Fund.\n\nThe Fund consists of the Australian Business Securitisation Fund Special Account and the investments of the Fund.\n\nThe investments of the Fund must be debt securities that meet certain requirements.\n\nThe Minister is responsible for making investment decisions for the Fund, however, the Minister may delegate the power to make these decisions.\n\nInvestment decisions must be made in accordance with any directions given by the Minister.\n\n5  Definitions\n\n  In this Act:\n\nAccount means the Australian Business Securitisation Fund Special Account established by section 11.\n\namount of credit has the same meaning as in the National Credit Code.\n\nauthorised debt security: see subsection 12(4).\n\ncredit has the same meaning as in the National Credit Code.\n\ndebtor has the same meaning as in the National Credit Code.\n\neligible delegate: see subsection 19(2).\n\nFinance Minister means the Minister who administers the Public Governance, Performance and Accountability Act 2013.\n\nFund means the Australian Business Securitisation Fund established by section 10.\n\ninvestment means any mode of application of money or financial assets for the purpose of gaining a return (whether by way of income, capital gain or any other form of return).\n\nInvestment Mandate has the meaning given by subsection 13(1).\n\ninvestment of the Fund means an investment that, under section 12, is taken to be an investment of the Fund.\n\nlisted entity has the same meaning as in the Public Governance, Performance and Accountability Act 2013.\n\nNational Credit Code has the same meaning as in the National Consumer Credit Protection Act 2009.\n\nnon‑corporate Commonwealth entity has the same meaning as in the Public Governance, Performance and Accountability Act 2013.\n\nofficial has the same meaning as in the Public Governance, Performance and Accountability Act 2013.\n\nrules means rules made under section 22.\n\n6  Crown to be bound\n\n (1) This Act binds the Crown in each of its capacities.\n\n (2) This Act does not make the Crown liable to be prosecuted for an offence.\n\n7  Extension to external Territories\n\n  This Act extends to every external Territory.\n\n8  Extra‑territorial application\n\n  This Act extends to acts, omissions, matters and things outside Australia.\n\nPart 2—The Australian Business Securitisation Fund\n\n \n\n9  Simplified outline of this Part\n\nThis Part sets up the Australian Business Securitisation Fund.\n\nThe Fund consists of the Australian Business Securitisation Fund Special Account and the investments of the Fund.\n\nThe investments of the Fund must be debt securities that meet certain requirements and the investments must be made in accordance with any directions given by the Minister.\n\nA total of $2 billion must be credited to the Account, with an initial amount of $250 million credited on 1 July 2019 and additional amounts credited on each 1 July for the following 4 years. The Minister may also, with the agreement of the Finance Minister, determine that additional amounts be credited to the Fund.\n\nAmounts may be debited from the Account for the purposes of the Account, which include paying the costs of making investments. The Minister may also determine that the balance of the Account be reduced.\n\n10  Establishment of the Australian Business Securitisation Fund\n\n (1) The Australian Business Securitisation Fund is established by this section.\n\n (2) The Australian Business Securitisation Fund consists of:\n\n (a) the Australian Business Securitisation Fund Special Account; and\n\n (b) the investments of the Fund.\n\n11  Establishment of the Australian Business Securitisation Fund Special Account\n\n (1) The Australian Business Securitisation Fund Special Account is established by this section.\n\n (2) The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.\n\nNote: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.\n\n12  Investments of the Fund\n\n (1) The Minister may, on behalf of the Commonwealth, invest amounts standing to the credit of the Account in any authorised debt security.\n\n (2) Investments under subsection (1) are taken to be investments of the Fund.\n\n (3) At any time before an investment of the Fund matures, the Minister may, on behalf of the Commonwealth, authorise the re‑investment of the proceeds upon maturity in an authorised debt security with the same entity. The new investment is taken to be an investment of the Fund.\n\n (4) An authorised debt security is a debt security that:\n\n (a) is issued by:\n\n (i) a trustee of a trust; or\n\n (ii) a body corporate that is a special purpose vehicle; and\n\n (b) is expressed in Australian dollars; and\n\n (c) relates to one or more amounts of credit provided (whether secured or unsecured) to one or more debtors where each such amount of credit:\n\n (i) is provided wholly or predominantly for business purposes; and\n\n (ii) is less than $5 million or, if the rules prescribe another amount of money, is less than that amount; and\n\n (iii) complies with any other requirements or restrictions prescribed by the rules; and\n\n (d) complies with any other requirements or restrictions prescribed by the rules.\n\n (5) Section 58 of the Public Governance, Performance and Accountability Act 2013 (which deals with investment by the Commonwealth) does not apply to an investment of the Fund.\n\n13  Investment Mandate\n\n (1) The Minister may, by legislative instrument, give directions about the exercise of the Minister’s powers under section 12. The directions together constitute the Investment Mandate.\n\nNote: Section 42 (disallowance) and Part 4 of Chapter 3 (sunsetting) of the Legislation Act 2003 do not apply to the directions (see regulations made for the purposes of paragraphs 44(2)(b) and 54(2)(b) of that Act).\n\n (2) The Minister must comply with the Investment Mandate.\n\n (3) Without limiting subsection (1), the Investment Mandate may include directions about any of the following:\n\n (a) strategies and policies to be followed for making investments;\n\n (b) decision‑making criteria for making investments;\n\n (c) limits on making investments;\n\n (d) risk and return relating to investments;\n\n (e) governance arrangements relating to investments;\n\n (f) any other matters that the Minister thinks appropriate.\n\n (4) The Minister must not give a direction under subsection (1):\n\n (a) that has the purpose, or is likely to have the effect, of directly or indirectly requiring the Minister to make, or not to make, a particular investment; or\n\n (b) that is inconsistent with this Act (including the objects of this Act).\n\n14  Credits to the Account\n\n (1) There must be credited to the Account amounts equal to the following:\n\n (a) $250 million, to be credited on 1 July 2019;\n\n (b) $250 million, to be credited on 1 July 2020;\n\n (c) $500 million, to be credited on 1 July 2021;\n\n (d) $500 million, to be credited on 1 July 2022;\n\n (e) $500 million, to be credited on 1 July 2023;\n\n (f) income derived from an investment of the Fund;\n\n (g) a return of capital, or any other financial distribution, relating to an investment of the Fund;\n\n (h) the proceeds of the realisation of an investment of the Fund.\n\n (2) The Minister may, by notifiable instrument, determine that an amount equal to a specified amount is to be credited to the Account at a time specified in, or ascertained in accordance with, the determination.\n\n (3) The time specified in, or ascertained in accordance with, the determination must be on or after the time the determination is made.\n\n (4) The determination must be expressed to be for a specified budget year.\n\n (5) Before making a determination under subsection (2), the Minister must obtain the agreement of the Finance Minister to the determination.\n\n15  Purposes of the Account\n\n  The purposes of the Account are as follows:\n\n (a) paying the costs of the making of an investment under section 12;\n\n (b) paying or discharging any other costs, expenses and other obligations incurred by the Commonwealth exclusively in connection with the Fund;\n\n (c) reducing the balance of the Account under section 16 (and therefore the available appropriation for the Account) without making a real or notional payment.\n\n16  Reducing the balance of the Account\n\n (1) The Minister may, by writing, direct that a specified amount is to be debited from the Account on a specified day (which must be on or after the day the direction is made).\n\n (2) A direction under subsection (1) is not a legislative instrument.\n\n (3) The Minister must give a copy of a direction under subsection (1) to the Finance Minister.\n\nPart 3—Miscellaneous\n\n \n\n17  Simplified outline of this Part\n\nThis Part contains miscellaneous provisions, including provisions about constitutional limits, delegation of the Minister’s powers and functions under this Act, reporting on the operation of this Act and conducting a review of the operation of this Act.\n\nThis Part also contains the general rule‑making power.\n\n18  Constitutional limits\n\n  The Minister may exercise a power or perform a function conferred on the Minister by section 12 only:\n\n (a) with respect to trade or commerce:\n\n (i) between Australia and places outside Australia; or\n\n (ii) among the States; or\n\n (iii) within a Territory, between a State and a Territory or between 2 Territories; or\n\n (b) with respect to a Territory; or\n\n (c) with respect to the implied power of the Parliament to make laws with respect to nationhood; or\n\n (d) with respect to the executive power of the Commonwealth.\n\n19  Delegations by the Minister\n\n (1) The Minister may, by written instrument, delegate to an eligible delegate (see subsection (2)) any of the Minister’s powers or functions under this Act (other than the Minister’s powers under section 13, 14 or 22).\n\n (2) An eligible delegate is an official of the Department of the Treasury, or a listed entity that is prescribed by the rules, who:\n\n (a) is an SES employee; or\n\n (b) is an APS employee who holds or performs the duties of an Executive Level 2, or equivalent, position; or\n\n (c) occupies an office or position at an equivalent level to that of an SES employee, or an Executive Level 2 position.\n\n (3) Before delegating a power or function under subsection (1), the Minister must have regard to:\n\n (a) if the power or function is to be delegated to a person holding, occupying, or performing the duties of, a specified office or position—whether the office or position is sufficiently senior for the person to exercise the power or perform the function or duty; or\n\n (b) otherwise—whether the person has appropriate qualifications or expertise to exercise the power or perform the function.\n\n (4) A person exercising powers or performing functions under a delegation under subsection (1) must comply with any written directions of the Minister.\n\n (5) A direction under subsection (4) must not be inconsistent with this Act (including the objects of this Act) or a legislative instrument made under this Act.\n\n20  Annual report\n\n  The annual report prepared by the Chief Executive Officer of the Australian Office of Financial Management and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include a report on the operation of this Act during the period.\n\n21  Review of operation of this Act\n\n (1) The Minister must cause a review of the operation of this Act to be undertaken as soon as possible after each of the following:\n\n (a) the second anniversary of the commencement of this Act;\n\n (b) the fifth anniversary of the commencement of this Act.\n\n (2) The review must include a review of the effectiveness of this Act in meeting the objectives of this Act.\n\n (3) The persons undertaking the review must give the Minister a written report of the review.\n\n (4) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.\n\n22  Rules\n\n (1) The Minister may, by legislative instrument, make rules prescribing matters:\n\n (a) required or permitted by this Act to be prescribed by the rules; or\n\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n\n (2) To avoid doubt, the rules may not do the following:\n\n (a) create an offence or civil penalty;\n\n (b) provide powers of:\n\n (i) arrest or detention; or\n\n (ii) entry, search or seizure;\n\n (c) impose a tax;\n\n (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;\n\n (e) directly amend the text of this Act.\n\n \n\n \n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 13 February 2019\n\nSenate on 3 April 2019]\n\n(29/19)\n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"Based solely on the text of the Act as enacted, the scope aligns with its stated object (s3): to increase SME credit availability and lower cost by investing Commonwealth funds in authorised debt securities. The Act prescribes the funding schedule (s14), eligibility limits for investments (s12), ministerial decision‑making subject to an Investment Mandate (s13), and delegated administration (s19). No changes to that scope are evident within the provided text."},"complexity_factors":["Use of legislative instruments: Investment Mandate (s13) and Rules (s22) create detailed, binding directions outside the primary Act.","Cross‑statutory references: multiple defined terms and interaction with the National Credit Code and the Public Governance, Performance and Accountability Act 2013 (see ss5, 11, 12(5)).","Ministerial discretion and limits: broad invest/authorise powers in s12 constrained by mandate provisions (s13) and constitutional limits (s18).","Delegation regime: delegations to senior Treasury or prescribed listed‑entity officials with prescribed eligibility checks (s19).","Funding mechanics: a calendarised $2 billion credit schedule and a power to add amounts only with Finance Minister agreement (s14), plus a mechanism to reduce the account balance without payment (s16).","Rule‑making breadth: rules may prescribe eligibility thresholds (affecting loan cap under s12(4)(c)(ii)) and other requirements, subject to express prohibitions (s22(2)).","Operational reporting and review obligations: annual reporting via the AOFM (s20) and statutory reviews at years 2 and 5 (s21)."],"plain_english_summary":"This Act creates the Australian Business Securitisation Fund to increase availability and reduce the cost of credit to small and medium enterprises by investing Commonwealth money in qualifying debt securities. It establishes a $2 billion special account funded over five years, sets eligibility rules for those securities, and vests investment powers in the Minister (subject to an Investment Mandate and permitted delegations). The measure matters because it directs public capital into securitised business lending and changes who makes investment choices and who bears the funding risk."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose of establishing a securitisation fund for SME credit. The scope has not expanded beyond the core mechanism of government investment in debt securities to improve SME lending markets."},"complexity_factors":["Moderate cross-referencing to external legislation (Public Governance, Performance and Accountability Act 2013, National Consumer Credit Protection Act 2009, National Credit Code)","Conditional logic around 'authorised debt security' definition with multiple cumulative requirements (subsection 12(4))","Phased appropriation schedule ($250m/$250m/$500m/$500m/$500m) requiring tracking over 5 years","Delegation framework with eligibility criteria tied to public service classification levels (SES/EL2)","Constitutional 'safety net' provision (section 18) listing multiple heads of power to ensure validity","Rule-making power with explicit exclusions (cannot create offences, taxes, or direct amendments)","Interaction between legislative instruments (Investment Mandate) and disallowance exemptions"],"plain_english_summary":"This legislation creates a **$2 billion government investment fund** designed to help small and medium businesses (SMEs) get cheaper loans.\n\n**What it does:**\n- Establishes the **Australian Business Securitisation Fund** — a pool of government money that invests in debt securities (basically, bundles of business loans).\n- The Fund buys these debt securities from financial institutions, which gives those institutions more cash to lend to small businesses. The idea is that this increased supply of credit will lower interest rates for SMEs.\n\n**Who it affects:**\n- **Small and medium enterprises** looking to borrow money for business purposes (loans under $5 million).\n- **Banks and non-bank lenders** that package SME loans into securities and sell them to the Fund.\n- **The Treasurer/Minister**, who makes investment decisions (though these can be delegated to senior Treasury officials).\n\n**Key mechanics:**\n- The Fund is built up gradually: $250 million in 2019, another $250 million in 2020, then $500 million each year from 2021–2023.\n- Investments must be in **authorised debt securities** — these must be Australian dollar-denominated, relate to business loans under $5 million, and be issued by special financial vehicles (trusts or special purpose companies).\n- The Minister sets an **Investment Mandate** (rules about how to invest), but cannot use this to pick specific investments — it's about setting strategy and risk limits.\n- The Fund operates under the **Public Governance, Performance and Accountability Act 2013** (the standard law for how government money is managed).\n\n**Why it matters:**\nSmall businesses often struggle to access affordable credit compared to big corporations. By the government becoming a buyer in the securitisation market (where loans are bundled and sold as investments), the legislation aims to make it easier and cheaper for SMEs to borrow money to grow their businesses."}},"importantCases":[],"_links":{"self":"/api/acts/australian-business-securitisation-fund-act-2019","history":"/api/acts/australian-business-securitisation-fund-act-2019/history","analysis":"/api/acts/australian-business-securitisation-fund-act-2019/analysis","conflicts":"/api/acts/australian-business-securitisation-fund-act-2019/conflicts","importantCases":"/api/acts/australian-business-securitisation-fund-act-2019/important-cases","documents":"/api/acts/australian-business-securitisation-fund-act-2019/documents"}}