{"id":"C2004A03384","name":"International Financial Institutions (Share Increase) Act 1986","slug":"international-financial-institutions-share-increase-act-1986","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"143 of 1986","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7480,"registerId":"commonwealth-C2004A03384-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the International Financial Institutions (Share Increase) Act 1986.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act shall come into operation on the day on which it receives the Royal Assent.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n  In this Act, unless the contrary intention appears:\n\n> Bank means the International Bank for Reconstruction and Development.\n\n> Corporation means the International Finance Corporation established under the Articles of Agreement set out in the First Schedule to the International Finance Corporation Act 1955.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Agreements for purchase of additional shares of capital stock of the Bank","content":"#### 4 Agreements for purchase of additional shares of capital stock of the Bank\n\n  The Treasurer may, on behalf of Australia, make an agreement or agreements with the Bank for the purchase by Australia of 815 additional shares of the capital stock of the Bank at a price per share that is the equivalent of 100,000 United States dollars, being dollars in the currency of the United States of America of the weight and fineness that was in effect on 1 July 1944.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Agreements for purchase of additional shares of capital stock of the Corporation","content":"#### 5 Agreements for purchase of additional shares of capital stock of the Corporation\n\n  The Treasurer may, on behalf of Australia, make an agreement or agreements with the Corporation for the purchase by Australia of 14,560 additional shares of the capital stock of the Corporation at a price per share of 1,000 United States dollars or their equivalent in any other freely convertible currency or currencies.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Agreements subject to terms and conditions","content":"#### 6 Agreements subject to terms and conditions\n\n  Subject to this Act, an agreement referred to in section 4 or 5 may contain such terms and conditions as the Treasurer determines.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Appropriation and issue of securities","content":"#### 7 Appropriation and issue of securities\n\n  (1) There may be paid out of the Consolidated Revenue Fund, which is appropriated accordingly, the moneys necessary for the purpose of making any payment to be made by Australia in pursuance of an agreement made under section 4 or 5.\n  (2) Section 7 of the International Monetary Agreements Act 1947 applies to any payment to be made by Australia in pursuance of an agreement made under section 4 as it applies to payments under that Act.","sortOrder":6}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: authorising specific share purchases in the World Bank and IFC. The scope has not expanded beyond this narrow financial authorisation."},"complexity_factors":["Only 2 defined terms in the interpretation section ('Bank' and 'Corporation')","No cross-references to other legislation except a single reference to section 7 of the International Monetary Agreements Act 1947","Straightforward conditional logic with no nested exceptions","Single-purpose legislation with clear, linear structure (7 short sections)","No delegated legislative powers or complex procedural requirements","Specific monetary amounts and share numbers hard-coded into the text rather than formulaic calculations"],"plain_english_summary":"This law lets Australia buy more shares in two major international financial organisations: the World Bank (formally called the International Bank for Reconstruction and Development) and the International Finance Corporation (IFC).\n\n**What it does:**\n- **Authorises share purchases**: The Treasurer can sign agreements to buy:\n  - **815 shares** in the World Bank at US$100,000 per share (using the old gold-standard dollar value from 1944)\n  - **14,560 shares** in the IFC at US$1,000 per share (or equivalent in other stable currencies)\n\n- **Provides the money**: It appropriates (sets aside) funds from the government's main bank account (the Consolidated Revenue Fund) to pay for these shares.\n\n- **Gives flexibility**: The Treasurer can negotiate the specific terms and conditions of these agreements.\n\n**Who it affects:**\n- Primarily the Australian government and its Treasury officials\n- Indirectly, Australian taxpayers (since public money funds the share purchases)\n\n**Why it matters:**\nBuying these shares increases Australia's ownership stake and voting power in these global institutions. This gives Australia more influence over international development lending, financial policies, and how these organisations operate. It's essentially Australia's way of maintaining its seat at the table in global economic governance."},"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":"The Act's text confines authority to making the specified share purchases and providing for their payment and terms. There is no text indicating an expansion or contraction of that scope beyond those concrete authorisations and the appropriation mechanism."},"complexity_factors":["Very narrow, concrete authorisation limited to specified share amounts and prices (ss 4–5).","Executive discretion to set terms and conditions for agreements increases administrative decision-making (s 6).","Direct appropriation/payment mechanism from the Consolidated Revenue Fund creates a fiscal implementation step (s 7(1)).","Cross-reference to the International Monetary Agreements Act 1947 may add legal procedural requirements for payments under s 7(2).","Currency equivalence and conversion wording (US dollar equivalence or freely convertible currencies) introduces operational exchange‑rate handling.","Low ongoing regulatory or compliance burden on third parties; primary effects are administrative and fiscal."],"plain_english_summary":"This Act authorises the Treasurer to purchase additional shares in two World Bank bodies on Australia's behalf: 815 shares in the International Bank for Reconstruction and Development at US$100,000 each, and 14,560 shares in the International Finance Corporation at US$1,000 each (or equivalent). Payments are to be made from the Consolidated Revenue Fund, and the Treasurer may set the terms and conditions of the purchases. It therefore creates a specific government fiscal obligation and gives executive discretion over how the purchases are carried out (see ss 4–7)."},"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is tightly scoped and does exactly what its title suggests — it authorises a specific share purchase increase in two named international financial institutions. There is no evidence of scope creep or deviation from the original intent. The Treasurer's discretion is confined to agreeing terms and conditions, not to expanding the purpose or beneficiaries of the legislation."},"complexity_factors":["Reference to a historical currency standard (1944 US dollar weight and fineness) that requires background knowledge to understand","Cross-references to two other Acts (International Finance Corporation Act 1955 and International Monetary Agreements Act 1947) which apply supplementary rules without restating them","Operates within a broader international treaty framework not visible in the Act itself","Dual-institution structure requires tracking separate share quantities and pricing mechanisms for each"],"plain_english_summary":"This Act authorises Australia to buy additional shares in the World Bank and its private-sector arm (the IFC), with the Treasurer empowered to sign the purchase agreements and payment drawn from the Consolidated Revenue Fund. The purchases raise Australia’s ownership stake and voting influence in major development financiers, using public funds and therefore affecting the federal government’s finances and, indirectly, Australian taxpayers and stakeholders in international development."}},"importantCases":[],"_links":{"self":"/api/acts/international-financial-institutions-share-increase-act-1986","history":"/api/acts/international-financial-institutions-share-increase-act-1986/history","analysis":"/api/acts/international-financial-institutions-share-increase-act-1986/analysis","conflicts":"/api/acts/international-financial-institutions-share-increase-act-1986/conflicts","importantCases":"/api/acts/international-financial-institutions-share-increase-act-1986/important-cases","documents":"/api/acts/international-financial-institutions-share-increase-act-1986/documents"}}