{"id":"F1997B01739","name":"Bank for International Settlements (Privileges and Immunities) Regulations","slug":"bank-for-international-settlements-privileges-and-immunities-regulations","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"284 of 1989","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":29359,"registerId":"commonwealth-F1997B01739-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Bank for International Settlements (Privileges and Immunities) Regulations","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\nStatutory Rules 1989 No. 2841\n\n——————\n\nBank for International Settlements\n\n(Privileges and Immunities) Regulations\n\nI, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the International Organizations (Privileges and Immunities) Act 1963.\n\nDated 25 October 1989.\n\nBILL HAYDEN\n\nGovernor-General\n\nBy His Excellency’s Command,\n\nJohn N Button.\n\nMinister of State for Industry, Technology and Commerce, for and on behalf of the\n\nMinister of State for Foreign Affairs\n\nand Trade\n\n––––––\n\nCitation\n\n1. These Regulations may be cited as the Bank for International Settlements (Privileges and Immunities) Regulations.\n\nInterpretation\n\n2. In these Regulations, unless the contrary intention appears:\n\n“Bank” means the Bank for International Settlements;\n\n“the Act” means the International Organizations (Privileges and Immunities) Act 1963.\n\nAct to apply to the Bank\n\n3. The Bank is declared to be an international organization to which the Act applies.\n\nBank to have juridical personality and legal capacities\n\n4. The Bank:\n\n(a) is a body corporate:\n\n(S.R. 321/89)—Cat. No. 14/11.10.1989\n\n  \n\n(b) has the capacity to contract; and\n\n(c) is capable, in its corporate name, of acquiring, holding and disposing of real and personal property and of instituting legal proceedings.\n\nPrivileges and immunities of the Bank\n\n5. The Bank is exempt from tax on income or gains it derives from investments in Australia, being income or gains that, if it were not so exempt:\n\n(a) would be subject to withholding tax in accordance with subsection 128b (5) of the Income Tax Assessment Act 1936; or\n\n(b) would be included in the assessable income of the Bank in accordance with section 26bb or 26c of that Act.\n\nNOTE\n\n1\\. Notified in the Commonwealth of Australia Gazette on 31 October 1989.\n\nPrinted by Authority by the Commonwealth Government Printer","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":2,"scope_assessment":{"changed":false,"description":"These Regulations implement a narrow, specific purpose: to bring the Bank for International Settlements within the scope of the International Organizations (Privileges and Immunities) Act 1963 and to grant a narrowly‑defined tax exemption for certain investment income/gains in Australia. They do not expand the Act’s subject-matter beyond that implementation, nor do they add broad new powers or unrelated obligations. The Regulations therefore do not represent a material change in scope beyond the instrument’s original, stated purpose."},"complexity_factors":["Very short instrument (5 Regulations)","Only 2 defined terms in the interpretation section (\"Bank\" and \"the Act\") (regulation 2)","Direct cross-reference to the International Organizations (Privileges and Immunities) Act 1963 (regulation 3)","Targeted cross-references to multiple provisions of the Income Tax Assessment Act 1936 (subsection 128B(5), sections 26BB and 26C) (regulation 5)","Substantive effect depends on interpretation of external Acts (adds interpretive complexity outside the instrument)","Single conditional exemption (regulation 5) rather than multiple nested exceptions — limited internal conditionality"],"plain_english_summary":"**What these Regulations do (plain terms)**\n\n- These Regulations declare that the Bank for International Settlements (the “Bank” or “BIS”) is an international organisation to which the International Organizations (Privileges and Immunities) Act 1963 (the “Act”) applies (regulation 3). The regulation also defines the short names used (regulation 2).\n\n- By applying the Act to the Bank, the Regulations give the Bank the legal capacities described here (regulation 4): it is a body corporate (a legal person), it can enter contracts, it can own, buy and sell property in its corporate name, and it can start or defend legal proceedings in Australia.\n\n- The Regulations also create a narrow tax exemption for the Bank (regulation 5): income or gains the Bank derives from investments in Australia are exempt from Australian tax where, but for the exemption, that income or gain would either (a) be subject to withholding tax under subsection 128B(5) of the Income Tax Assessment Act 1936 (ITAA 1936), or (b) be included in the Bank’s assessable income under sections 26BB or 26C of the ITAA 1936.\n\n**Who this affects**\n\n- The Bank for International Settlements: it gains formal legal status and specified tax relief in Australia (regs 3–5).\n- Australian tax authorities (and, if relevant, withholding agents): they must treat certain BIS investment income/gains as exempt under the conditions set out in regulation 5.\n- Counterparties, landlords, courts and registries dealing with the Bank: they will treat the BIS as a corporate legal person with the capacities listed (regulation 4).\n\n**Why it matters (mechanics and incentives)**\n\n- Legal operation: declaring the BIS an organisation covered by the Act gives it recognised legal personality and transactional capacity in Australia (regulation 4). That reduces legal uncertainty for contracts, property ownership and litigation involving the BIS.\n\n- Tax incentive: the specified exemption for investment income/gains (regulation 5) lowers the BIS’s Australian tax exposure on those receipts. That mechanically reduces the tax collected by Australia on such BIS investment returns and may affect the BIS’s decisions about holding or structuring investments in Australia.\n\n**Official purpose claim and testing it against costs and trade-offs**\n\n- The regulations operate to extend the privileges and immunities of the International Organizations (Privileges and Immunities) Act 1963 to the BIS (regulation 3). The likely stated purpose is to allow the BIS to function in Australia on terms consistent with its international status.\n\n- Costs and trade-offs: the regulation creates foregone tax revenue for Australia in respect of certain BIS investment income/gains (regulation 5). The regulation also confers legal capacity that private entities do not receive from this instrument alone (regulation 4). These are the concrete trade-offs: legal certainty and operational ease for the BIS versus limited tax revenue and potentially preferential treatment relative to private financial institutions.\n\n- Incentives and behaviour: because certain investment returns are exempted from Australian tax, the BIS may have a reduced tax-driven incentive to restructure or relocate those specific investments. For private sector actors, the change may alter contractual counterparty risk or negotiation positions when the BIS is involved (because the BIS is formally a body corporate able to sue and be sued).\n\n**Implementation notes, compliance burden and risks**\n\n- Implementation depends on interaction with two other statutes: the International Organizations (Privileges and Immunities) Act 1963 (which supplies the broader set of privileges and immunities) and particular provisions of the Income Tax Assessment Act 1936 (128B(5), 26BB, 26C) that define the kinds of income/gains referred to (regulation 5). That cross-reference creates interpretive reliance on those Acts for the exact scope of the exemption.\n\n- Administrative burden is modest for most private parties. The principal compliance/admin effects fall on tax authorities (to apply the exemption) and on registries/courts (to recognise the Bank’s corporate status and capacities).\n\n- Implementation risk and ambiguity: because the tax exemption is defined by reference to particular tax code provisions, disputes could arise about whether a given receipt is an \"income or gain from investments in Australia\" and whether it falls within the referenced ITAA 1936 provisions. Resolving those disputes will require applying the tax Act’s definitions and tests.\n\n**Bottom line (mechanical effect)**\n\n- The Regulations make the BIS an international organisation under the International Organizations (Privileges and Immunities) Act 1963, grant it corporate legal personality and normal corporate capacities in Australia (contracts, property, litigation), and exempt certain investment income/gains arising in Australia from Australian tax subject to the specified provisions of the Income Tax Assessment Act 1936 (regs 3–5)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: granting specific privileges and immunities to the BIS. It has not expanded beyond the narrow scope of implementing Australia's obligations toward this specific international financial institution."},"complexity_factors":["Only 5 operative sections total","Just 2 defined terms ('Bank' and 'the Act')","No cross-references beyond naming the parent Act and specific tax provisions","Straightforward declaratory structure — 'The Bank is declared...', 'The Bank is exempt...'","Single purpose legislation with no exceptions, conditions, or procedural requirements"],"plain_english_summary":"This legislation gives special legal protections to the Bank for International Settlements (BIS) — a global financial institution based in Switzerland that acts as a bank for central banks.\n\n**What it does:**\n- **Declares the BIS as an 'international organization'** under Australian law, which triggers automatic legal protections under the International Organizations (Privileges and Immunities) Act 1963.\n- **Gives the BIS corporate status** — it can own property, sign contracts, and sue or be sued in Australian courts, just like a company.\n- **Grants tax exemption** — the BIS doesn't have to pay Australian tax on income or profits from its investments here (specifically withholding tax and certain types of interest income).\n\n**Who it affects:**\n- The Bank for International Settlements itself\n- Australian tax authorities (who must not tax the BIS on certain income)\n- Anyone doing business with the BIS in Australia\n\n**Why it matters:**\nThis ensures the BIS can operate in Australia on equal footing with other international bodies (like the UN or IMF) without being burdened by domestic taxes. It's part of Australia's commitment to international financial cooperation — the BIS helps stabilise global banking systems, and member countries (including Australia) agree not to tax its investment returns."}},"importantCases":[],"_links":{"self":"/api/acts/bank-for-international-settlements-privileges-and-immunities-regulations","history":"/api/acts/bank-for-international-settlements-privileges-and-immunities-regulations/history","analysis":"/api/acts/bank-for-international-settlements-privileges-and-immunities-regulations/analysis","conflicts":"/api/acts/bank-for-international-settlements-privileges-and-immunities-regulations/conflicts","importantCases":"/api/acts/bank-for-international-settlements-privileges-and-immunities-regulations/important-cases","documents":"/api/acts/bank-for-international-settlements-privileges-and-immunities-regulations/documents"}}