{"id":"F2008L04298","name":"Banking Act 1959 - Declaration of Covered Financial Products (27/10/2008)","slug":"banking-act-1959-declaration-of-covered-financial-products-27-10-2008","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":76294,"registerId":"commonwealth-F2008L04298-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Banking Act 1959","sectionType":"section","heading":"Banking Act 1959","content":"##### Banking Act 1959\n\nDECLARATION OF COVERED FINANCIAL PRODUCTS\n\nI, WAYNE MAXWELL SWAN, Treasurer, pursuant to subsection 5(8) of the Banking Act 1959 DECLARE that the financial products specified below are covered financial products.\n\n(a) Saving accounts\n\n(b) Call accounts\n\n(c) Term deposits\n\n(d) Current accounts\n\n(e) Cheque accounts\n\n(f) Debit card accounts\n\n(g) Transactions accounts\n\n(h) Personal basic account\n\n(i) Cash management accounts\n\n(j) Farm management deposits\n\n(k) Pensioner deeming accounts\n\n(l) Mortgage offset accounts, either 100 per cent or partial offset, that are separate deposit accounts\n\n(m) Trustee accounts\n\n(n) Retirement Savings Accounts\n\n(o) First home saver accounts that are deposit accounts\n\n(p) Other deposit accounts that meet the following conditions:\n\n    (i) the terms applicable to the deposit do not permit the amount from time to time standing to the credit of the facility to be reduced otherwise than as a result of one or more of the following:\n\n– a withdrawal, transfer or debit on the instruction of, or by authority of, the depositor, not being on account of entry fees, exit fees or charges for the management of the funds (but this does not exclude charges for the maintenance of the facility itself);\n\n– a payment of charges or duties on deposits into, or withdrawals from, the facility that are payable under a law of the Commonwealth or of a State or Territory;\n\n– a payment that a law of the Commonwealth, or of a State or Territory, requires to be made out of the facility;\n\n– a payment that an order of a court requires to be made out of the facility;\n\n– the exercise of a right to combine accounts;\n\n– the correction of an error; and\n\n    (ii) any return to be generated for the depositor on the amount from time to time standing to the credit of the deposit is an amount that is set out in, or that is calculated by reference to a rate or rates that are set out in, the governing terms.\n\nDated: 27 October 2008\n\nWayne Swan\n\nTreasurer","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"This declaration explicitly specifies which deposit and transaction account types are to be treated as \"covered financial products\" under the Act, thereby defining and fixing the scope of coverage by naming listed products and by adding a conditional residual category for other deposit accounts (see items (a)–(p), and conditions in (p)(i)–(ii))."},"complexity_factors":["Legal delegation: declaration made under subsection 5(8) of the Banking Act 1959, so statutory authority and interpretation of that subsection matter.","Explicit enumeration: a straightforward list of specific account types (items (a)–(o)) reduces ambiguity for many products.","Residual category with conditions: item (p) creates a catch-all for “other deposit accounts” subject to two detailed conditions ((p)(i) & (p)(ii)), requiring contract interpretation of \"terms applicable\" and \"governing terms\".","Interpretive tasks for institutions: banks must review product terms to decide coverage, particularly for partial-offset or separate deposit accounts and for permitted reductions/exceptions listed in (p)(i).","Operational compliance: firms may need documentation and systems updates to classify and report covered products consistently."],"plain_english_summary":"This instrument, made by the Treasurer under subsection 5(8) of the Banking Act 1959, declares a list of deposit and transaction account types (for example: savings, call, term, current/cheque, debit and transaction accounts, mortgage offset accounts, trustee and retirement savings accounts, farm management deposits and similar deposit accounts) to be “covered financial products.” It does not itself set fees or entitlements; it changes which products are legally classified as covered. The Treasurer decides the classification; deposit-taking institutions must identify which of their accounts meet the listed definitions and conditions."},"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"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument performs exactly the function intended by subsection 5(8) of the Banking Act 1959: to specify which financial products are covered by the deposit guarantee scheme. The scope remains tightly focused on deposit-taking products and has not expanded beyond this core purpose."},"complexity_factors":["Single operative provision with straightforward declaratory function","16 enumerated categories (a)-(p), with one containing nested sub-paragraphs (i)-(ii) and bullet points","Paragraph (p) contains technical conditions limiting how funds can be withdrawn and how returns are calculated — this is the most complex element","No cross-references to other legislation beyond the empowering provision (subsection 5(8))","No defined terms section — relies on ordinary meanings and established banking terminology","Total length: approximately 250 words"],"plain_english_summary":"This is the Treasurer’s formal declaration under the Banking Act identifying which bank deposits and accounts are “covered financial products” protected by the Financial Claims Scheme (currently guaranteeing deposits up to $250,000 per depositor per institution). It tells banks and customers which accounts qualify—everyday, term/call, special-purpose, trustee and certain offset accounts—and includes a catch‑all condition to stop firms recharacterising products to avoid the guarantee, giving legal certainty about deposit protection."}},"importantCases":[],"_links":{"self":"/api/acts/banking-act-1959-declaration-of-covered-financial-products-27-10-2008","history":"/api/acts/banking-act-1959-declaration-of-covered-financial-products-27-10-2008/history","analysis":"/api/acts/banking-act-1959-declaration-of-covered-financial-products-27-10-2008/analysis","conflicts":"/api/acts/banking-act-1959-declaration-of-covered-financial-products-27-10-2008/conflicts","importantCases":"/api/acts/banking-act-1959-declaration-of-covered-financial-products-27-10-2008/important-cases","documents":"/api/acts/banking-act-1959-declaration-of-covered-financial-products-27-10-2008/documents"}}