{"id":"nsw:act-1996-064","name":"Bank Mergers (Application of Laws) Act 1996","slug":"bank-mergers-application-of-laws-act-1996","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"64 of 1996","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105538,"registerId":"nsw-act-1996-064-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act is the [Bank Mergers (Application of Laws) Act 1996](/view/html/inforce/current/act-1996-064).","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Act commences on the date of assent.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> In this Act:\n> \n> merger includes the acquisition of property and assets, and the assumption of liabilities, of a bank by another bank or the transfer of property and assets and liabilities of a bank to another bank.\n> \n> proclaimed law means a law of another State or Territory that is declared under this Act to be a law to which this Act applies.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Proclamations","content":"#### 4 Proclamations\n\n4 Proclamations\n\n> > (1) The Governor may by proclamation declare a law of another State or Territory providing for or relating to the merger of banks to be a law to which this Act applies.\n> \n> > (2) Such a proclamation may:\n> > \n> > > (a) exclude specified provisions of the proclaimed law from the operation of this Act, and\n> > \n> > > (b) modify the effect of specified provisions of the proclaimed law in their application under this Act, and\n> > \n> > > (c) without limiting paragraph (b), supplement the provisions of the proclaimed law in their application under this Act with additional provisions that apply by virtue of this Act, and\n> > \n> > > (d) provide that a requirement has been made under section 6.\n> \n> > (3) A proclamation under this Act may be amended or repealed by a further proclamation.\n> \n> > (4) A proclamation may be made in respect of a law of another State or Territory whether or not that law has commenced in that State or Territory.\n> \n> Editorial note—\n> \n> For proclamations under this section, see Gazettes No 110 of 27.9.1996; No 137 of 29.11.1996 and No 46 of 1.5.1997, p 2423.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Extension of proclaimed law","content":"#### 5 Extension of proclaimed law\n\n5 Extension of proclaimed law\n\n> > (1) The application of a proclaimed law is extended so that it applies in this State as if it were a law of this State.\n> \n> > (2) However, in its application in this State a proclaimed law is to be read subject to:\n> > \n> > > (a) the exclusions, modifications and supplementations set out in the relevant proclamation, as amended by any further proclamations, and\n> > \n> > > (b) the provisions of subsection (4).\n> \n> > (3) The application in this State of a proclaimed law is not affected by its amendment or repeal in the State or Territory in which it was enacted, except to the extent provided by the relevant proclamation, as amended by any further proclamations.\n> \n> > (4) Provisions of a proclaimed law relating to:\n> > \n> > > (a) the provision of government guarantees, or\n> > \n> > > (b) exemption from payment of duties, taxes, charges, rates or other imposts,\n> > \n> > are excluded from the operation of subsection (1), except to the extent that the relevant proclamation, as amended by any further proclamations, includes them (and subject to any modifications or supplementations specified in the proclamation).","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Payment of amount instead of State duties or other imposts","content":"#### 6 Payment of amount instead of State duties or other imposts\n\n6 Payment of amount instead of State duties or other imposts\n\n> > (1) Despite any other provision of this Act, the application in this State of a proclaimed law does not take effect until any requirement made under this section, and referred to in the proclamation under this Act, has been complied with and the Treasurer has given a certificate under subsection (4) to that effect.\n> \n> > (2) The Treasurer may require one or more of the banks concerned:\n> > \n> > > (a) to pay to the Treasurer instead of all duties, taxes, charges, rates or other imposts for which the bank or banks concerned would be liable under the law of this State as a result of, or in connection with, the merger an amount that is, in the opinion of the Treasurer, proper in the circumstances, and\n> > \n> > > (b) to pay that amount before the commencement of the proclamation or to give a written undertaking to pay the amount on or after that commencement.\n> \n> > (3) The amount payable to the Treasurer is to be determined by the Treasurer in accordance with such principles as the Treasurer thinks appropriate.\n> \n> > (4) The Treasurer must, when satisfied that a requirement under this section has been complied with, give the bank subject to the requirement a certificate stating that the requirement has been complied with.\n> \n> > (5) The Treasurer must, when satisfied that an amount required under this section to be paid on or after the commencement of a proclamation has been paid, give the bank subject to the requirement a certificate stating that the amount has been paid.\n> \n> > (6) If a certificate is given under this section stating that a requirement to pay an amount has been complied with or that an amount has been paid, the bank given the certificate is not liable for any further duties, taxes, charges, rates or other imposts of the kind referred to in subsection (2).\n> \n> > (7) A certificate under this section is, for all purposes and in all courts, tribunals and proceedings, conclusive evidence of the matters certified.\n> \n> > (8) This section does not apply to any fee or charge payable to the Registrar-General in respect of any act, dealing or other transaction relating to land.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Review of Act","content":"#### 7 Review of Act\n\n7 Review of Act\n\n> > (1) The Minister is to review this Act to determine whether the policy objectives of the Act remain valid and whether the terms of the Act remain appropriate for securing those objectives.\n> \n> > (2) The review is to be undertaken as soon as possible after the period of 5 years from the date of assent to this Act.\n> \n> > (3) A report on the outcome of the review is to be tabled in each House of Parliament within 12 months after the end of the period of 5 years.","sortOrder":6}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"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":4,"scope_assessment":{"changed":false,"description":"The Act itself sets out a mechanism to apply another State/Territory’s bank‑merger law in this State, and includes fiscal safeguards and a five‑year review. The text contains no internal indication that its scope has been altered from its original framing; it prescribes proclamation, payment, evidentiary and review rules as its operative scope (see ss4–7)."},"complexity_factors":["Governor’s proclamation power to import another jurisdiction’s law into this State and to exclude, modify or supplement it (s4)","Extension mechanism that treats proclaimed law as local law but limits effect for guarantees and tax exemptions (s5(1), s5(4))","Treasurer’s broad discretion to require payment in lieu of State duties, set the amount on principles the Treasurer thinks appropriate, and require payment timing or undertakings (s6(2)–(3))","Conclusive evidentiary effect of Treasurer’s certificate removing further liability for the specified imposts (s6(4)–(7))","Commencement dependency where application of a proclaimed law can be made contingent on compliance with a Treasurer requirement (s6(1))","Interaction rule that a proclaimed law’s later amendment or repeal in its originating jurisdiction does not affect its application here except as the proclamation provides (s5(3))","Exclusion of Registrar‑General fees from the Treasurer payment regime (s6(8))","Statutory review obligation for the Minister five years after assent, imposing a timetable for reassessment of objectives and terms (s7)"],"plain_english_summary":"This Act lets the Governor declare a law of another State or Territory dealing with bank mergers to operate in this State as if it were a local law, subject to specified exclusions, modifications or added provisions. The Treasurer may require merging banks to pay an amount instead of State duties, set at the Treasurer’s discretion and evidenced by a conclusive certificate once paid. The Minister must review the Act five years after assent. It affects banks in cross‑jurisdictional mergers, the State Treasurer’s fiscal discretion and the timing of legal recognition for such mergers."},"summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"Based on the available metadata, the Act appears to have remained exactly as originally enacted in 1996 with no amendments. This suggests the scope has not changed from its original intent. However, without access to the full text of the Act, it is not possible to confirm whether its practical scope has been affected by subsequent Commonwealth legislation in the banking sector, which could have rendered parts of it redundant or inoperative in practice."},"complexity_factors":["The Act sits at the intersection of corporate law, banking regulation, and statutory interpretation — all technical areas","Bank mergers involve complex legal questions about which jurisdiction's laws apply (state vs federal)","The interaction between NSW state law and Commonwealth banking regulation (which generally dominates banking law in Australia) adds a layer of constitutional complexity","The Act has never been amended, making its relationship to subsequent federal banking legislation unclear without reading the full text","Limited information available — only metadata provided, not the operative provisions — making full complexity assessment impossible","Score is moderated downward because the Act appears narrow and targeted in scope rather than a broad regulatory scheme"],"plain_english_summary":"The Bank Mergers (Application of Laws) Act 1996 (NSW) is a technical statute intended to remove legal uncertainty about which laws, contracts and obligations continue to apply when banks combine. It principally affects banks operating in NSW and, indirectly, their customers and creditors.\n\nThe version available appears to be a metadata/status page only, so this summary is inferred from the title and context; the Act has been in force since 25 September 1996 and has never been amended."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act appears to maintain its original narrow purpose of facilitating bank mergers through proclamation mechanisms and tax payment negotiations. The review clause in section 7 suggests the legislature anticipated it might need updating, but the core scope remains focused on cross-border bank merger facilitation."},"complexity_factors":["Conditional operation: Section 6 creates a complex trigger mechanism where proclaimed laws only take effect after Treasurer certification and payment/undertaking requirements are met","Nested modifications: Section 5(2) requires reading proclaimed laws subject to exclusions, modifications AND supplementations set out in proclamations, creating layered conditional logic","Cross-referencing between instruments: The Act operates by reference to external state/territory laws that are not contained in the Act itself, requiring readers to locate and reconcile multiple documents","Exception to exception structure: Section 5(4) excludes certain provisions (government guarantees and tax exemptions) from automatic extension, then creates an exception to that exclusion allowing proclamations to include them back in","Conclusive evidence clause: Section 6(7) creates an unusual evidentiary rule giving Treasurer's certificates absolute legal weight","Sunset review mechanism: Section 7 mandates post-enactment review, adding procedural complexity though not operational complexity"],"plain_english_summary":"This law helps big bank mergers happen smoothly across Australian state borders.\n\n**What it does:**\nWhen two banks want to merge (one bank taking over another's assets and debts), they often need special laws passed to make the transfer legal and to sort out tax issues. This Act lets the NSW Government \"import\" similar laws from other states or territories and apply them in NSW. This means banks don't need to get separate NSW legislation passed every time they merge.\n\n**Key features:**\n*   **Proclamations:** The Governor can declare that a bank merger law from another state (like Victoria or Queensland) will apply in NSW, with tweaks if needed.\n*   **Tax workaround:** Normally, transferring bank assets would trigger stamp duty and other state taxes. This Act lets the Treasurer strike a deal with the banks to pay a lump sum instead of going through normal tax calculations.\n*   **Automatic protection:** Once the Treasurer certifies that the banks have paid up, they're protected from any further NSW taxes on that merger.\n\n**Who it affects:**\n*   Banks planning mergers or takeovers\n*   The NSW Treasurer (who negotiates the tax payments)\n*   Other states' governments (whose laws can be \"borrowed\")\n\n**Why it matters:**\nWithout this law, major bank mergers would need bespoke (custom-made) NSW legislation every time, slowing down deals and creating legal uncertainty. It streamlines cross-border banking consolidation while ensuring NSW still gets a fair financial return through the Treasurer's negotiated payments."}},"importantCases":[],"_links":{"self":"/api/acts/bank-mergers-application-of-laws-act-1996","history":"/api/acts/bank-mergers-application-of-laws-act-1996/history","analysis":"/api/acts/bank-mergers-application-of-laws-act-1996/analysis","conflicts":"/api/acts/bank-mergers-application-of-laws-act-1996/conflicts","importantCases":"/api/acts/bank-mergers-application-of-laws-act-1996/important-cases","documents":"/api/acts/bank-mergers-application-of-laws-act-1996/documents"}}