{"id":"C2020A00027","name":"Structured Finance Support (Coronavirus Economic Response Package) Act 2020","slug":"structured-finance-support-coronavirus-economic-response-package-act-2020","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"27 of 2020","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436318,"registerId":"C2020A00027-fast-fetch-1775953552722","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Structured Finance Support (Coronavirus Economic Response Package) Act 2020","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nStructured Finance Support (Coronavirus Economic Response Package) Act 2020\n\n \n\nNo. 27, 2020\n\n \n\n \n\n \n\n \n\n \n\nAn Act to establish the Structured Finance Support (Coronavirus Economic Response) Fund, and for related purposes\n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Short title\n\n2 Commencement\n\n3 Objects of this Act\n\n4 Simplified outline of this Act\n\n5 Definitions\n\n6 Crown to be bound\n\n7 Extension to external Territories\n\n8 Extra‑territorial application\n\nPart 2—The Structured Finance Support (Coronavirus Economic Response) Fund\n\n9 Simplified outline of this Part\n\n10 Establishment of the Structured Finance Support (Coronavirus Economic Response) Fund\n\n11 Establishment of the Structured Finance Support (Coronavirus Economic Response) Fund Special Account\n\n12 Investments of the Fund\n\n13 Credits to the Account\n\n14 Purposes of the Account\n\n15 Reducing the balance of the Account\n\nPart 3—Miscellaneous\n\n16 Simplified outline of this Part\n\n17 Constitutional limits\n\n18 Delegations by the Minister\n\n19 Annual report\n\n20 Rules\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\nStructured Finance Support (Coronavirus Economic Response Package) Act 2020\n\nNo. 27, 2020\n\n \n\n \n\n \n\nAn Act to establish the Structured Finance Support (Coronavirus Economic Response) Fund, and for related purposes\n\n[Assented to 24 March 2020]\n\nThe Parliament of Australia enacts:\n\nPart 1—Preliminary\n\n \n\n1  Short title\n\n  This Act is the Structured Finance Support (Coronavirus Economic Response Package) Act 2020.\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. 25 March 2020\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  Objects of this Act\n\n  The objects of this Act are:\n\n (a) to ensure continued access to funding markets impacted by the economic effects of the Coronavirus known as COVID‑19; and\n\n (b) to mitigate impacts, resulting from those economic effects, on competition in consumer and business lending markets;\n\nby the Commonwealth making investments in accordance with this Act.\n\n4  Simplified outline of this Act\n\nThis Act sets up the Structured Finance Support (Coronavirus Economic Response) Fund.\n\nThe Fund consists of the Structured Finance Support (Coronavirus Economic Response) Fund Special Account and the investments of the Fund.\n\nThe Minister is responsible for making investment decisions for the Fund, however, the Minister may delegate the power to make these decisions.\n\nInvestment decisions must be made in accordance with any directions given by the Minister.\n\n5  Definitions\n\n  In this Act:\n\nAccount means the Structured Finance Support (Coronavirus Economic Response) Fund Special Account established by section 11.\n\namount of credit has the same meaning as in the National Credit Code.\n\nauthorised debt security has the meaning given by subsection 12(4).\n\ncredit has the same meaning as in the National Credit Code.\n\neligible delegate has the meaning given by subsection 18(2).\n\nFinance Minister means the Minister who administers the Public Governance, Performance and Accountability Act 2013.\n\nFund means the Structured Finance Support (Coronavirus Economic Response) Fund established by section 10.\n\ninvestment means any mode of application of money or financial assets for the purpose of gaining a return (whether by way of income, capital gain or any other form of return).\n\ninvestment of the Fund means an investment that, under section 12, is taken to be an investment of the Fund.\n\nlisted entity has the same meaning as in the Public Governance, Performance and Accountability Act 2013.\n\nNational Credit Code has the same meaning as in the National Consumer Credit Protection Act 2009.\n\nofficial has the same meaning as in the Public Governance, Performance and Accountability Act 2013.\n\nrules means rules made under section 20.\n\n6  Crown to be bound\n\n (1) This Act binds the Crown in each of its capacities.\n\n (2) This Act does not make the Crown liable to be prosecuted for an offence.\n\n7  Extension to external Territories\n\n  This Act extends to every external Territory.\n\n8  Extra‑territorial application\n\n  This Act extends to acts, omissions, matters and things outside Australia.\n\nPart 2—The Structured Finance Support (Coronavirus Economic Response) Fund\n\n \n\n9  Simplified outline of this Part\n\nThis Part sets up the Structured Finance Support (Coronavirus Economic Response) Fund.\n\nThe Fund consists of the Structured Finance Support (Coronavirus Economic Response) Fund Special Account and the investments of the Fund.\n\n$15 billion must be credited to the Account. The Minister may also, with the agreement of the Finance Minister, determine that additional amounts be credited to the Fund.\n\nAmounts may be debited from the Account for the purposes of the Account, which include paying the costs of making investments. The Minister may also determine that the balance of the Account be reduced.\n\n10  Establishment of the Structured Finance Support (Coronavirus Economic Response) Fund\n\n (1) The Structured Finance Support (Coronavirus Economic Response) Fund is established by this section.\n\n (2) The Structured Finance Support (Coronavirus Economic Response) Fund consists of:\n\n (a) the Structured Finance Support (Coronavirus Economic Response) Fund Special Account; and\n\n (b) the investments of the Fund.\n\n11  Establishment of the Structured Finance Support (Coronavirus Economic Response) Fund Special Account\n\n (1) The Structured Finance Support (Coronavirus Economic Response) Fund Special Account is established by this section.\n\n (2) The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.\n\nNote: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.\n\n12  Investments of the Fund\n\n (1) The Minister may, on behalf of the Commonwealth and to further an object of this Act, invest amounts standing to the credit of the Account in:\n\n (a) any authorised debt security; or\n\n (b) any other investment, of a kind prescribed by the rules, that complies with the requirements or restrictions (if any) prescribed by the rules.\n\n (2) Investments under subsection (1) are taken to be investments of the Fund.\n\n (3) At any time before an investment of the Fund matures, the Minister may, on behalf of the Commonwealth, authorise the re‑investment of the proceeds upon maturity in an authorised debt security, or an investment to which paragraph (1)(b) applies, with the same entity. The new investment is taken to be an investment of the Fund.\n\n (4) An authorised debt security is a debt security that:\n\n (a) is issued by:\n\n (i) a trustee of a trust; or\n\n (ii) a body corporate that is a special purpose vehicle; and\n\n (b) is expressed in Australian dollars; and\n\n (c) relates to one or more amounts of credit; and\n\n (d) complies with the requirements or restrictions (if any) prescribed by the rules.\n\n (5) Section 58 of the Public Governance, Performance and Accountability Act 2013 (which deals with investment by the Commonwealth) does not apply to an investment of the Fund.\n\n13  Credits to the Account\n\n (1) There must be credited to the Account amounts equal to the following:\n\n (a) $15 billion, to be credited on the day this Act commences;\n\n (b) income derived from an investment of the Fund;\n\n (c) a return of capital, or any other financial distribution, relating to an investment of the Fund;\n\n (d) the proceeds of the realisation of an investment of the Fund.\n\n (2) The Minister may, by notifiable instrument, determine that an amount equal to a specified amount is to be credited to the Account at a time specified in, or ascertained in accordance with, the determination.\n\n (3) The time specified in, or ascertained in accordance with, the determination must be on or after the time the determination is made.\n\n (4) The determination must be expressed to be for a specified budget year.\n\n (5) Before making a determination under subsection (2), the Minister must obtain the agreement of the Finance Minister to the determination.\n\n14  Purposes of the Account\n\n  The purposes of the Account are as follows:\n\n (a) paying the costs of, including the costs incidental to, the making of an investment under section 12;\n\n (b) paying or discharging any other costs, expenses and other obligations incurred by the Commonwealth exclusively in connection with the Fund;\n\n (c) reducing the balance of the Account under section 15 (and therefore the available appropriation for the Account) without making a real or notional payment.\n\n15  Reducing the balance of the Account\n\n (1) The Minister may, by writing, direct that a specified amount is to be debited from the Account on a specified day (which must be on or after the day the direction is made).\n\n (2) A direction under subsection (1) is not a legislative instrument.\n\n (3) The Minister must give a copy of a direction under subsection (1) to the Finance Minister.\n\nPart 3—Miscellaneous\n\n \n\n16  Simplified outline of this Part\n\nThis Part contains miscellaneous provisions, including provisions about constitutional limits, delegation of the Minister’s powers and functions under this Act, and reporting on the operation of this Act.\n\nThis Part also contains the general rule‑making power.\n\n17  Constitutional limits\n\n  The Minister may exercise a power or perform a function conferred on the Minister by section 12 only:\n\n (a) with respect to the implied power of the Parliament to make laws with respect to nationhood; or\n\n (b) otherwise with respect to the executive power of the Commonwealth; or\n\n (c) with respect to trade or commerce:\n\n (i) between Australia and places outside Australia; or\n\n (ii) among the States; or\n\n (iii) within a Territory, between a State and a Territory or between 2 Territories; or\n\n (d) with respect to banking (other than State banking not extending beyond the limits of the State concerned).\n\n18  Delegations by the Minister\n\n (1) The Minister may, by written instrument, delegate to an eligible delegate (see subsection (2)) any of the Minister’s powers or functions under this Act (other than the Minister’s powers under section 13 or 20).\n\n (2) An eligible delegate is an official of the Department of the Treasury, or a listed entity that is prescribed by the rules, who:\n\n (a) is an SES employee; or\n\n (b) is an APS employee who holds or performs the duties of an Executive Level 2, or equivalent, position; or\n\n (c) occupies an office or position at an equivalent level to that of an SES employee, or an Executive Level 2 position.\n\n (3) Before delegating a power or function under subsection (1), the Minister must have regard to:\n\n (a) if the power or function is to be delegated to a person holding, occupying, or performing the duties of, a specified office or position—whether the office or position is sufficiently senior for the person to exercise the power or perform the function or duty; or\n\n (b) otherwise—whether the person has appropriate qualifications or expertise to exercise the power or perform the function.\n\n (4) A person exercising powers or performing functions under a delegation under subsection (1) must comply with any written directions of the Minister.\n\n (5) Without limiting subsection (4), directions may be about any of the following:\n\n (a) strategies and policies to be followed for making investments;\n\n (b) decision‑making criteria for making investments;\n\n (c) limits on making investments;\n\n (d) risk and return relating to investments;\n\n (e) governance arrangements relating to investments;\n\n (f) any other matters that the Minister thinks appropriate.\n\n (6) A direction under subsection (4):\n\n (a) must not have the purpose, or be likely to have the effect, of directly or indirectly requiring that a particular investment be made or not be made; and\n\n (b) must not be inconsistent with this Act (including the objects of this Act) or a legislative instrument made under this Act.\n\n19  Annual report\n\n  The annual report prepared by the Chief Executive Officer of the Australian Office of Financial Management and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include a report on the operation of this Act during the period.\n\n20  Rules\n\n (1) The Minister may, by legislative instrument, make rules prescribing matters:\n\n (a) required or permitted by this Act to be prescribed by the rules; or\n\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n\n (2) To avoid doubt, the rules may not do the following:\n\n (a) create an offence or civil penalty;\n\n (b) provide powers of:\n\n (i) arrest or detention; or\n\n (ii) entry, search or seizure;\n\n (c) impose a tax;\n\n (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;\n\n (e) directly amend the text of this Act.\n\n \n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 23 March 2020\n\nSenate on 23 March 2020]\n\n(42/20)\n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This Act remains narrowly focused on establishing a Fund to invest in structured-finance/credit‑related instruments to support funding markets during the COVID‑19 economic shock (s 3). It does not expand into unrelated policy areas, nor does it create broad regulatory obligations on the financial sector; operational detail is left to rules but that is an administrative design choice rather than an expansion of scope. Therefore the statutory scope is consistent with the Act’s stated objects and has not materially grown beyond its original purpose."},"complexity_factors":["Short Act (about 20 sections) with focused purpose — lowers baseline complexity","Approximately 13 defined terms in the interpretation section (Account, amount of credit, authorised debt security, credit, eligible delegate, Finance Minister, Fund, investment, investment of the Fund, listed entity, National Credit Code, official, rules)","Cross-references to other statutes: PGPA Act (s 11, s 12(5), s 19), National Consumer Credit Protection Act/National Credit Code (definitions)","Conditional delegation regime with eligibility thresholds and limits (s 18(1)–(6))","Ministerial rule‑making power with express prohibitions (s 20) — shifts detail into legislative instruments","Exclusion of s 58 PGPA investment constraints for Fund investments (s 12(5)) — a non-standard investment governance wrinkle","Initial one-off appropriation ($15 billion) with additional credits subject to Finance Minister agreement (s 13(1)(a), (2)–(5))","Restrictions on Ministerial directions (cannot require a particular investment), adding a layer of conditional governance (s 18(6))","Constitutional head-of-power limits on exercise of investment power (s 17)"],"plain_english_summary":"**What this Act does (mechanics first)\n\n- Establishes a dedicated fund called the Structured Finance Support (Coronavirus Economic Response) Fund (the Fund). The Fund is made up of a Special Account and the Fund's investments (ss 10–11).\n- Credits $15 billion to that Special Account on commencement (s 13(1)(a)). The Minister may also arrange further credits for a specified budget year, but only with the Finance Minister’s agreement (s 13(2)–(5)).\n- Gives the Minister power to invest amounts standing to the credit of the Account in: (a) \"authorised debt securities\" (securities issued by a trustee or a special purpose vehicle, in Australian dollars, and relating to amounts of credit) or (b) other investment types prescribed by rules (s 12(1), (4)). Investments made under the Act are treated as investments of the Fund (s 12(2)).\n- Exempts these Fund investments from the Commonwealth’s usual investment rule in s 58 of the Public Governance, Performance and Accountability Act 2013 (s 12(5)).\n- Allows the Account to be used to pay the costs of making investments and other expenses connected exclusively with the Fund; the Minister can also reduce the Account balance by written direction (ss 14–15).\n- Provides for Ministerial delegation of most powers to senior Treasury/AOFM officials or other listed entities (subject to rules and some limits), and allows the Minister to give written directions about investment strategy and limits, but those directions cannot require or forbid a specific individual investment (s 18(1), (4)–(6)).\n- Enables the Minister to make rules as legislative instruments to prescribe additional matters, but those rules cannot create offences, impose a tax, set appropriation amounts, or directly amend the Act (s 20).\n- Requires the Australian Office of Financial Management’s annual report to include the operation of this Act (s 19).\n\nWhy it exists (official purpose, stated in the Act)\n\n- The Act’s stated objects are to ensure continued access to funding markets affected by the economic effects of COVID‑19, and to mitigate any competitive impacts in consumer and business lending markets, by allowing the Commonwealth to make investments under this Act (s 3).\n\nWho is directly affected\n\n- Commonwealth budget/taxpayers: the $15 billion initial credit is public money and the government takes exposure to the Fund’s investments (s 13(1)(a)).\n- Financial market participants who issue or sponsor securitisations or similar structured finance vehicles (trustees, special purpose vehicles, originators): the authorised debt security definition targets securities issued by trustees or special purpose vehicles and relating to credit (s 12(4)).\n- Investors and counterparties in those markets: the Commonwealth’s participation changes available demand/liquidity for certain securities (s 12).\n- Treasury and operational staff (including the Australian Office of Financial Management): they implement investment decisions, can be delegated functions, and must report on operations (ss 18, 19).\n\nHow it works in practice and the key trade-offs, incentives and implementation risks\n\n- Targeting mechanism and effect on private markets: by limiting authorised investments to securities issued by trustees or special purpose vehicles that relate to amounts of credit and are in Australian dollars, the Act mechanically targets securitisation-style instruments rather than lending to individual borrowers (s 12(4)). That tends to shore up funding for lenders who package credit into tradable securities and sell them into the market.\n\n- Fiscal exposure and opportunity cost: $15 billion is credited up-front (s 13(1)(a)), creating a sizeable contingent exposure of the Commonwealth. Additional credits require the Finance Minister’s agreement (s 13(5)), which introduces a check but does not eliminate fiscal risk. The $15 billion represents an opportunity cost relative to other spending or guarantees.\n\n- Market distortion and selection effects: the Commonwealth’s purchases of particular securitised products increase demand for those instruments and therefore lower funding costs for issuers who can issue them. Firms that cannot package loans into authorised debt securities (for example small lenders without securitisation capability) do not directly benefit unless secondary effects alter broader market conditions. The Act therefore creates concentrated potential benefits to issuers able to access the specified instruments, with diffuse costs to taxpayers (see s 12(1), (4)).\n\n- Moral hazard and private incentives: government commitment to buy or invest in securitised products can reduce private-sector incentives to manage credit risk carefully if originators expect easier funding; the Act does not impose direct underwriting requirements on participating issuers in the text of the Act itself (risks could be addressed in the rules or in the terms of particular investments) (cf. s 12 and s 20).\n\n- Operational discretion and oversight: the Minister has broad discretion to make investments (s 12) and to issue rules (s 20). The Minister may delegate most functions to senior Treasury or listed officials (s 18(1)–(2)). Ministerial directions can set strategy, limits and decision criteria (s 18(5)), but may not require or forbid a particular investment (s 18(6)(a)). The Fund’s investments are specifically excluded from the PGPA Act s 58 investment rule, meaning the usual statutory investment constraints do not apply to these transactions (s 12(5)). Those features concentrate implementation decisions in the executive and operational apparatus and reduce some statutory investment constraints.\n\n- Transparency and reporting: the AOFM’s annual report must include information on the operation of the Act (s 19). Rules are legislative instruments and so are subject to parliamentary scrutiny and disallowance mechanisms applicable to those instruments, but the Act permits the Minister to specify necessary details by rule rather than in the Act itself (s 20).\n\n- Constitutional and geographic limits: the Minister’s exercise of the investment power is expressly limited to certain heads of power (nationhood, executive power, trade or commerce across borders or among States, and banking) (s 17). The Act extends to external Territories and applies extra‑territorially to acts and omissions outside Australia (ss 7–8).\n\nPractical consequences to watch (implementation and market effects)\n\n- Who decides and who pays: the Minister (or eligible delegates in Treasury/AOFM) decides what to buy; taxpayers bear credit and market risk (ss 12, 18, 13).\n- Administrative burden for market participants: issuers seeking access will need to structure securities so they qualify as authorised debt securities or meet any requirements in rules; the Act centralises deal‑selection and execution in the Commonwealth’s operational arm rather than creating a new licensing regime (s 12, s 20).\n- Limits that remain legislative vs delegated: many operational details are left to rules (s 20), which speeds responsiveness but places key design choices in legislative instruments rather than primary legislation.\n\nBottom line\n\n- Mechanically, the Act creates a $15 billion-capitalised Fund that the Commonwealth can use to invest in specified securitisation-style debt instruments to support funding markets affected by COVID‑19 (ss 10–13). The Act focuses the assistance on tradable credit-backed instruments (s 12(4)), vests decision authority in the Minister with operational delegation to senior Treasury/AOFM officials (s 18), and relies on rules to flesh out detailed eligibility and governance (s 20). The main trade-offs are concentrated benefit to securitisation-capable issuers, fiscal exposure borne by taxpayers, and a relatively high degree of executive discretion in how the Fund is deployed (ss 12, 13, 18)."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: establishing a temporary crisis-response fund to support structured finance markets during COVID-19. The scope has not expanded beyond the initial $15 billion fund establishment and investment mechanism."},"complexity_factors":["Short statute — only 20 sections across 3 Parts","Minimal defined terms (12 definitions in section 5, mostly referencing external legislation like the National Credit Code and PGPA Act)","Straightforward structural logic: establish fund → credit money → make investments → report","Limited conditional logic — primarily simple delegations and ministerial directions","No nested exceptions or complex cross-referencing structures","Heavy reliance on external legislative frameworks (PGPA Act, National Consumer Credit Protection Act) rather than creating complex internal machinery"],"plain_english_summary":"This law creates a $15 billion government investment fund to keep money flowing through Australia's financial markets during the COVID-19 pandemic.\n\n**What it does:**\n- Establishes the **Structured Finance Support Fund** — a pot of money the government can use to buy debt securities (basically IOUs issued by financial institutions)\n- The fund starts with **$15 billion** and can be topped up with more money if needed\n- The Minister for Finance (or their delegates) decides how to invest this money to support lending markets\n\n**Who it affects:**\n- **Financial institutions** — banks and lenders that package up loans (like mortgages or business loans) and sell them as investments\n- **Borrowers** — businesses and consumers who need loans, by helping ensure banks can keep lending even when markets freeze up\n- **The Australian Office of Financial Management** — which manages the fund and reports on it annually\n\n**Why it matters:**\nWhen COVID-19 hit in early 2020, financial markets panicked. Banks and other lenders struggled to sell bundles of loans to investors, which threatened to dry up credit for ordinary Australians. This law lets the Commonwealth step in as a \"buyer of last resort\" — purchasing these debt securities to keep the system moving and prevent a credit crunch.\n\n**Key features:**\n- Investments must be in **Australian dollars** and relate to credit (loans)\n- The Minister can delegate decision-making to senior Treasury officials\n- The fund operates under the **Public Governance, Performance and Accountability Act** (the standard rules for government money management)\n- Annual reporting ensures transparency"},"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"}},"importantCases":[],"_links":{"self":"/api/acts/structured-finance-support-coronavirus-economic-response-package-act-2020","history":"/api/acts/structured-finance-support-coronavirus-economic-response-package-act-2020/history","analysis":"/api/acts/structured-finance-support-coronavirus-economic-response-package-act-2020/analysis","conflicts":"/api/acts/structured-finance-support-coronavirus-economic-response-package-act-2020/conflicts","importantCases":"/api/acts/structured-finance-support-coronavirus-economic-response-package-act-2020/important-cases","documents":"/api/acts/structured-finance-support-coronavirus-economic-response-package-act-2020/documents"}}