{"id":"C2025A00044","name":"Pacific Banking Guarantee Act 2025","slug":"pacific-banking-guarantee-act-2025","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"44 of 2025","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436437,"registerId":"C2025A00044-fast-fetch-1775953640560","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Pacific Banking Guarantee Act 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nPacific Banking Guarantee Act 2025\n\nNo. 44, 2025\n\n \n\n \n\n \n\n \n\n \n\nAn Act to appropriate money for guarantees relating to banking in the Pacific region, and for related purposes\n\n \n\n \n\n \n\nContents\n\n1 Short title\n\n2 Commencement\n\n3 Definitions\n\n4 Extra‑territorial application\n\n5 Appropriation\n\n \n\n![Commonwealth Coat of Arms of Australia](image.002.png)\n\n \n\n \n\nPacific Banking Guarantee Act 2025\n\nNo. 44, 2025\n\n \n\n \n\n \n\nAn Act to appropriate money for guarantees relating to banking in the Pacific region, and for related purposes\n\n[Assented to 5 September 2025]\n\nThe Parliament of Australia enacts:\n\n \n\n1  Short title\n\n  This Act is the Pacific Banking Guarantee Act 2025.\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Act receives the Royal Assent. 6 September 2025\n\n\nNote: This table relates only to the provisions of this Act as originally enacted.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  Definitions\n\n  In this Act:\n\nADI means an authorised deposit‑taking institution within the meaning of the Banking Act 1959.\n\nPacific banking guarantee has the meaning given by subsection 5(2).\n\nPacific region includes:\n\n (a) the islands of the Pacific; and\n\n (b) Papua New Guinea; and\n\n (c) Timor‑Leste.\n\n4  Extra‑territorial application\n\n  This Act extends to acts, omissions, matters and things outside Australia.\n\n5  Appropriation\n\n (1) The Consolidated Revenue Fund is appropriated for the purposes of meeting any liabilities that the Commonwealth incurs under Pacific banking guarantees.\n\n (2) A guarantee with an ADI is a Pacific banking guarantee if:\n\n (a) the guarantee is granted to the ADI on behalf of the Commonwealth under section 60 of the Public Governance, Performance and Accountability Act 2013; and\n\n (b) the guarantee relates to the ADI’s banking business (within the meaning of the Banking Act 1959) in the Pacific region; and\n\n (c) the ADI’s headquarters are located in Australia.\n\n \n\n \n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 24 July 2025\n\nSenate on 31 July 2025]\n\n \n\n(38/25)\n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The supplied text contains no amendments or alternate versions; the Act sets its scope explicitly via its definitions (s3), extra‑territorial reach (s4) and the conditions for guarantees (s5(2)). There is no indication in the provided text that the scope has changed from any earlier or original drafting."},"complexity_factors":["Direct appropriation of the Consolidated Revenue Fund to meet liabilities (s5(1)) — a budgetary/legal funding mechanism.","Eligibility conditions for a 'Pacific banking guarantee' are compact but conditional (s5(2)): must be granted under PGPA s60, relate to banking business in the Pacific, and the ADI’s headquarters must be in Australia.","Cross‑references to other statutes increase interpretive work: 'ADI' defined by the Banking Act 1959 and guarantees made under PGPA Act s60 (s3; s5(2)(a)).","Geographic scope set by definition of 'Pacific region' (s3) — includes islands of the Pacific, Papua New Guinea and Timor‑Leste — which affects reach and eligibility.","Extra‑territorial application (s4) extends legal effect beyond Australia, adding jurisdictional complexity.","The Act is procedurally minimal and relies on the PGPA framework for decision and process details, creating administrative discretion and implementation dependence.","No caps, reporting requirements or procedural safeguards are specified in this Act itself, so practical compliance and oversight depend on other instruments."],"plain_english_summary":"This Act authorises the Commonwealth to use the Consolidated Revenue Fund to meet liabilities from guarantees given for Australian ADIs’ banking business in the Pacific region (s5(1)–(2)). Guarantees must be made on the Commonwealth’s behalf under section 60 of the Public Governance, Performance and Accountability Act 2013, require the ADI’s headquarters be in Australia, and the Act applies extra‑territorially (ss4,5(2))."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly scoped to its original purpose. The long title ('An Act to appropriate money for guarantees relating to banking in the Pacific region, and for related purposes') accurately describes the content. There are no creeping expansions into unrelated policy areas, no broad regulation-making powers, and no ambiguous 'related purposes' that could stretch the scope. The definition of 'Pacific region' is exhaustive and specific rather than open-ended."},"complexity_factors":["Extremely short: only 5 operative sections","Minimal defined terms: only 3 definitions (ADI, Pacific banking guarantee, Pacific region)","No nested exceptions or conditional logic — the guarantee criteria in section 5(2) are straightforward conjunctive tests (all three conditions must be met)","Single cross-reference to the Banking Act 1959 for the definition of 'banking business' and 'ADI'","Single cross-reference to the Public Governance, Performance and Accountability Act 2013 for the guarantee mechanism","No subordinate legislation or regulation-making powers","Simple appropriation mechanism: direct draw from Consolidated Revenue Fund without caps, conditions, or sunset clauses"],"plain_english_summary":"**What this law does:**\n\nThis Act creates a financial backstop for Australian banks that want to do business in the Pacific. It lets the Australian Government guarantee (promise to pay if things go wrong) certain banking activities by Australian banks operating in Pacific countries.\n\n**Who it affects:**\n\n- **Australian banks** (specifically \"authorised deposit-taking institutions\" or ADIs — think major banks like Commonwealth Bank, Westpac, ANZ, NAB) that have their headquarters in Australia and want to expand or continue operations in Pacific nations\n- **Pacific region countries** — specifically the islands of the Pacific, Papua New Guinea, and Timor-Leste\n- **The Australian taxpayer** — because the money comes from the Consolidated Revenue Fund (the government's main bank account, funded by taxes)\n\n**How it works:**\n\nThe government can issue guarantees under its existing powers in the Public Governance, Performance and Accountability Act 2013. When the government guarantees a bank's Pacific operations, this Act sets aside money from the federal budget to cover any losses if the bank defaults and the government has to pay out.\n\n**Why it matters:**\n\nBanking in the Pacific can be risky and expensive for Australian banks. This government backing makes it cheaper and safer for Australian banks to operate there, which helps:\n- Keep Pacific communities connected to financial services\n- Counter influence from other countries (read: China) in the region\n- Support economic development in Australia's neighbourhood\n\nThe Act also explicitly covers activities outside Australia (extra-territorial application), which is necessary because the banking happens overseas."}},"importantCases":[],"_links":{"self":"/api/acts/pacific-banking-guarantee-act-2025","history":"/api/acts/pacific-banking-guarantee-act-2025/history","analysis":"/api/acts/pacific-banking-guarantee-act-2025/analysis","conflicts":"/api/acts/pacific-banking-guarantee-act-2025/conflicts","importantCases":"/api/acts/pacific-banking-guarantee-act-2025/important-cases","documents":"/api/acts/pacific-banking-guarantee-act-2025/documents"}}