Borrowing and Investment Powers (Authority) Regulations 2022

Three core statutory concepts structure the instrument.

1. Prescribed authority (reg 5; Schedule 1). The Regulations implement the Act’s definitional machinery by prescribing specific persons and bodies as "authorities" for s 3(1) of the Act. This is a closed-list approach: Column 1 of Schedule 1 enumerates by name which councils, institutes, hospitals, water corporations and other statutory entities are treated as authorities under the Act for borrowing and investment purposes.

2. Sectional application (reg 6; Schedule 1, Column 2). For each prescribed authority the Regulations identify, by reference to section numbers of the Act, which provisions of the Act will apply to that authority. Reg 6 implements s 3A of the Act by prescribing particular sections (in Column 2) as applying to the relevant authority named in Column 1. The wording is precise: a numbered section of the Act specified in Column 2 is "prescribed as applying" to the authority named in Column 1. The Regulations therefore operate by selection: not all sections of the Act apply to every listed body; the Schedule is the granular control mechanism.

3. Schedule design and variation. The Schedule is split into Parts by type of body (councils; educational institutions; public hospitals and public health services; water authorities; other authorities). Within each Part each named authority is allocated a bundle of section numbers. The bundles differ materially. Many local councils are listed uniformly (for example Columns 1-79: s 5, 8, 11, 13, 15), whereas many water corporations and state statutory bodies are mapped to an extended set including later lettered sections (11AA, 11AB, 14A, 20A). Some educational institutions are limited to a single section (s 10), suggesting a narrow application of the Act to those entities. The Schedule also includes notes that it was later amended by statutory rules (Sch 1 Pt 5 amended by S.R. Nos 52/2022 regs 7, 9; 111/2024 reg 3; 87/2025 reg 3).

Mechanically, the Regulations do not itself change the Act; they exercise delegated power under s 31 of the Act to determine mapping. The Regulations are therefore an enabling, administrative instrument: to know an authority’s substantive rights and obligations one must read the Act provisions listed opposite that authority in Schedule 1. The Endnotes also import interpretative features from the Interpretation of Legislation Act 1984 (ILA) into how the Statutory Rule should be read (for example headings, examples and punctuation form part of the Statutory Rule from 1 January 2001), which affects how Schedule entries and headings are to be read as part of the instrument.

The Regulations affect three broad groups directly and several groups indirectly.

Directly affected bodies (paying, deciding and operational consequences):

• Local government councils named in Schedule 1 Part 1 (Items 1-79). Each of these councils is prescribed as an authority for the Act and will be subject to the specific numbered sections listed opposite its name (for the majority: 5, 8, 11, 13, 15). Those councils must therefore, from the Regulation commencement date, observe the rights and constraints contained in those sections of the Act.
• Educational institutions listed in Part 2 (Items 80-87). Many TAFE institutes are listed, with most mapped only to s 10; Holmesglen Institute is listed with a broader array (5, 8, 10, 11, 14, 15, 20, 20A). These mappings determine which Act provisions govern their borrowing/investment powers.
• Public hospitals, public health services and health-related bodies listed in Part 3 (Items 88-156) which largely have sections 11 and 15 applied to them, indicating a particular subset of the Act is intended to govern those services’ financial powers.
• Water authorities listed in Part 4 (Items 157-174), with many mapped to an extensive set of sections including 11AA and 11AB in addition to numerals 5-21, indicating broad application of the Act.
• A wide range of other statutory bodies in Part 5 (Items 175-243), including state trusts, corporations, cultural institutions, emergency services and commercial entities (for example, Melbourne Water, Port of Melbourne Authority, V/Line, Transport Accident Commission, Treasury Corporation of Victoria, Victorian Managed Insurance Authority, and Victorian Funds Management Corporation). Some entries carry express cross-references to other Acts (for example, item 225 is "Subject to the Treasury Corporation of Victoria Act 1992").

Indirectly affected parties:

• Lenders, credit markets and financiers who deal with these authorities will be affected insofar as the Act’s sections that are applied create borrowing powers, limitations, guarantees or security frameworks for the authority; the Regulations determine which authorities may present particular contractual or statutory attributes to third parties.
• Local taxpayers and service users, because application of the Act’s borrowing/investment rules can alter an authority’s capacity to borrow, to invest surpluses, or to provide services funded by borrowing (the Regulations determine which bodies have which powers under the Act).
• Government departments and central agencies responsible for public finance, because the list and section mapping affect fiscal exposures and require record-keeping and oversight.

Who decides: the Regulations are made by the Executive in exercise of s 31 of the Act (reg 2); changes to the mapping require a new statutory rule under the same authorising power. Who pays: the immediate compliance costs fall on the named authorities (updating policies, legal review, board resolutions, record-keeping), potential fiscal consequences fall on their constituents, and credit counterparties will adjust pricing or conditions depending on the Act sections that apply.

The Regulations do not themselves create novel duties or rights; they operate by applying specific sections of the Borrowing and Investment Powers Act 1987 to named authorities. The key mechanistic duties and rights therefore derive from the Act’s sections listed in Schedule 1 and become actionable only when read with the Act.

Statutory mechanics (regs 5-6). Reg 5 prescribes the person or body named in Column 1 of an item in Schedule 1 as an "authority" for the purposes of s 3(1) of the Act. Reg 6 prescribes that a section of the Act specified in Column 2 of that item applies to that authority for the purposes of s 3A of the Act. The language "prescribed as applying" is deterministic: if Schedule 1 records section X opposite authority Y, then the legal consequences and obligations contained in section X of the Act attach to Y.

Operational implications to look for in the Act (read the sections listed in Column 2). While the Regulations do not reproduce Act text, the section numbers indicate the scope of duties and rights that will attach:

• Authorities listed with only a single section number (for example many education TAFEs mapped only to s 10) will acquire a narrow set of rights/duties under the Act , whatever s 10 provides.
• Authorities mapped to multiple sections (for example many water corporations and large statutory corporations) will acquire a complex matrix of duties/rights covering several aspects of the Act (for example powers to borrow, to invest, to give security, reporting duties, or limits). Notably, several Schedule entries reference lettered sections such as 11AA, 11AB and 20A; these are discrete sub‑provisions of the Act and can indicate additional, specific obligations or exceptions.

Institutional qualifications and constraints. Schedule 1 also contains explicit qualifiers in limited cases. For example item 225 (Treasury Corporation of Victoria) is listed "Subject to the Treasury Corporation of Victoria Act 1992", so the Act’s provisions as applied by the Regulations are constrained by that separate Act. Users must therefore read both this instrument and any tied Acts to find the full set of duties/constraints.

Temporal effect. Duties and rights begin when the relevant application of the Act takes effect for the authority, which is controlled by the Regulations’ commencement provisions (reg 3) and any subsequent amendments recorded in the Endnotes. Authorities should not assume retroactive application beyond the stated commencement dates.

Practical consequence: the named body has a statutory legal position under the Act only insofar as a section is prescribed in the Schedule. The precise duties (e.g., approval thresholds, reporting to Treasurer, security arrangements) will be those set out in the cited sections of the Act. The Regulations therefore impose an obligation on legal and financial officers of each prescribed authority to identify and comply with the applicable Act sections listed opposite their body in Schedule 1.

The Regulations themselves do not set penalties or enforcement mechanisms beyond prescribing which Act sections apply to which authorities. Enforcement and penalties, if any, will be those provided in the Borrowing and Investment Powers Act 1987 in the sections that are applied to each authority as listed in Schedule 1 (see regs 5-6). The Regulations therefore function as an allocation device: the presence or absence of a particular section in Column 2 determines whether that Act section’s enforcement and penalty provisions bind the authority.

Where penalties are likely to arise. To know whether a named authority faces fines, criminal offences or administrative remedies for breach, one must consult the text of each numbered section of the Act that is prescribed in Column 2. For example, some sections may impose criminal liability on officers for misuse of borrowing powers; others may provide civil remedies or require compliance reporting. The Regulation does not indicate which sections contain penalties; it only indicates applicability.

Oversight and interlocking enforcement. The Endnotes and Schedule show that some authorities are subject to other Acts (for example the Treasury Corporation of Victoria Act 1992 for item 225). Where such cross‑statutory relationships exist enforcement may involve more than one regulator or public official (for example the Treasurer, a Board, or a statutory regulator). Similarly, authorities that operate commercially (for example Melbourne Water or V/Line) may be subject to separate regulatory oversight, and enforcement in practice may be exercised through administrative oversight, reporting obligations or departmental review rather than direct criminal prosecution.

Revocations and transitional enforcement issues. The table of amendments in the Endnotes records revocations of Parts and later amendments by subsequent Statutory Rules. Parties enforcing or relying upon rights should confirm the current electronic version on the Victorian legislation website because the Schedule has been amended (see Endnotes: Borrowing and Investment Powers (Authority) Amendment Regulations 2024 S.R. No. 111/2024; 2025 S.R. No. 87/2025). Enforcement risk includes reliance on an out‑of‑date printed schedule.

Recommendations for enforcement due diligence. For any practical enforcement or compliance query, consult:

• the current consolidated Act provisions identified in Schedule 1 Column 2 for the authority in question;
• other Acts referenced (e.g., Treasury Corporation of Victoria Act 1992 for item 225);
• the current consolidated electronic version of this Statutory Rule (to capture amendments, revocations and the sunset provision in the Subordinate Legislation Act 1994 noted in the Endnotes).

The Regulations are a delegated instrument that links named bodies to the Borrowing and Investment Powers Act 1987; several interaction points with other legislation and interpretative Acts are recorded in the instrument.

Enabling statute and operation. Reg 2 states these Regulations are made under s 31 of the Borrowing and Investment Powers Act 1987. Regs 5-6 implement, respectively, the Act’s definitional provision for "authority" (s 3(1)) and the mechanism in s 3A to apply specific sections to particular authorities. The Regulations therefore depend on and operate through the Act’s allocation of delegated rule‑making power.

Cross‑statutory qualifications. Schedule 1 contains express qualifications attaching to particular entries. The clearest example is item 225 (Treasury Corporation of Victoria) where the entry is noted "Subject to the Treasury Corporation of Victoria Act 1992". That indicates an interaction, and possible primacy or constraint, between the two Acts for that authority. Other authorities listed may be established or constrained by their own enabling statutes; the Regulations do not displace those enabling Acts and any conflict would be resolved by statutory construction principles, but practitioners should examine the relevant enabling Act for each authority to see if it modifies or limits the Act’s application.

Interpretation of this Statutory Rule. The Endnotes import interpretative rules from the Interpretation of Legislation Act 1984 (ILA). The Endnotes state that from 1 January 2001 headings, examples, diagrams, notes, punctuation and provision numbers form part of the Statutory Rule (ILA s 36 and s 54A referenced). This means the headings and notes in Schedule 1 and the structure of the columns may have interpretative significance when construing the Regulation.

Sunset and subordinate legislation regime. The Endnotes record that the Regulations will sunset ten years after making on 30 June 2032 under s 5 of the Subordinate Legislation Act 1994. That legislative framework means the Regulations will lapse unless remade, which interacts with other long‑term statutory arrangements that rely on these prescriptions. Practitioners should plan compliance and policy reviews against that expiry timeline.

Amendments by statutory rule. The Table of Amendments shows subsequent Statutory Rules amended Schedule 1 (S.R. No. 111/2024; S.R. No. 87/2025). The practical effect is that the set of authorities and the sections applied can be modified by later subordinate instruments rather than by primary Act amendment; this interaction shifts the locus of change from Parliament to Executive action under the Act’s s 31 authority. Users should therefore track the consolidated electronic version.

Interaction with public finance and procurement regimes. Although not explicit in the Regulations, the mapping will often interact with other financial governance regimes (for example departmental Finance Orders, the Treasury Corporation Act, public sector borrowing programmes or prudential rules for statutory corporations). Where an authority is brought within additional sections of the Act it may trigger internal approval processes, Treasurer consent requirements, or reporting obligations under other statutes. Practitioners must cross‑reference the listed Act sections with other applicable statutes and administrative instruments for a full compliance picture.

The Regulations were originally made as Borrowing and Investment Powers (Authority) Regulations 2022, S.R. No. 52/2022, made on 30 June 2022 under s 31 of the Borrowing and Investment Powers Act 1987 (Endnotes: General information; Table of Amendments). Commencement was staged: the Preliminary and operative regs (1-6) came into operation on 1 July 2022 (reg 3(1)); Pt 3 was to commence on 1 September 2022 (reg 3(2)); Pt 4 on 1 July 2023 (reg 3(3)). The endnotes make specific note that regs 7-8 and regs 9-10 were subsequently revoked (see Table of Amendments: "Reg. 8 revoked Pt 3 (regs 7, 8) on 2.9.22; reg. 10 revoked Pt 4 (regs 9, 10) on 2.7.23").

Subsequent subordinate instruments altered the Schedule. The Endnotes list two amendment statutory rules:

• Borrowing and Investment Powers (Authority) Amendment Regulations 2024, S.R. No. 111/2024, made 15 October 2024 and commenced 15 October 2024.
• Borrowing and Investment Powers (Authority) Amendment Regulations 2025, S.R. No. 87/2025, made 2 September 2025 and commenced 2 September 2025.

Schedule 1’s Part 5 contains a marginal note: "Sch. 1 Pt 5 amended by S.R. Nos 52/2022 regs 7, 9, 111/2024 reg. 3, 87/2025 reg. 3." That confirms the Schedule has been edited since first made, and that amendments have been carried out by further Statutory Rules under the same delegated power. The Endnotes also track the instrument’s sunset under the Subordinate Legislation Act 1994, specifying that the instrument is to lapse on 30 June 2032 unless remade.

The Endnotes include interpretative notes about the incorporation of style changes authorised by the Interpretation of Legislation Act 1984 (ILA) (section 54A), and set out that headings, examples, punctuation and provision numbers form part of the Statutory Rule from 1 January 2001. These interpretative changes may affect how earlier or later insertions in the Schedule are to be read if an earlier Statutory Rule was amended by a later one.

For practice: the consolidated form presented in this instrument is stated to be "Version incorporating amendments as at 2 September 2025", which is the authoritative consolidated text to consult. The Table of Amendments in the Endnotes should be used to confirm the timing of each change and whether any revoked Parts affect particular entries in Schedule 1.

The text provided contains no recorded litigation history. The Endnotes include "Explanatory details" but state "No entries at date of publication." There are no cases, proceedings, or judicial decisions cited within this Statutory Rule nor any recorded challenges provided in the material before you. Because the Regulations operate by reference to sections of the Borrowing and Investment Powers Act 1987, any litigation concerning the practical application, interpretation or enforcement of borrowing and investment powers for a named authority would in practice involve:

• issues of statutory construction of the referenced Act sections when applied to a particular authority; and
• potential review of Executive action to add or remove an authority or apply particular sections, which could give rise to administrative law challenges if procedural requirements under the enabling Act or the Subordinate Legislation Act 1994 were not met.

Absent case citations in the instrument, there is no recorded litigation to summarise here. Practitioners should search the consolidated legislation and court databases for any disputes concerning particular authorities’ borrowing or investment activities, and for any judicial interpretation of the Act’s s 3, s 3A or s 31 powers as applied via these Regulations. The lack of litigation in the instrument means users cannot rely on precedent contained within this Statutory Rule and must look to external decisions if legal disputes arise.

1. The Regulations are an index, not a substantive code. The primary "gotcha" is misreading the Regulations as setting out substantive borrowing or investment limits. They do not. To determine an authority’s precise legal position you must read the text of each Act section listed opposite that authority in Schedule 1. The Regulations merely trigger the Act sections for named bodies (regs 5-6). Failure to cross‑reference will leave you unaware of the operative duties, approvals and penalties.

2. Variability across seemingly similar entities. The Schedule shows significant variation in which sections apply to bodies that may look similar on their face. Example: many councils are mapped to the same handful of sections (5, 8, 11, 13, 15), but many water corporations and major state corporations are mapped to extended bundles including 11AA, 11AB and 20A. If you advise multiple local governments or water corporates, do not assume uniform application; check each Schedule entry.

3. Lettered sections and new sub‑provisions. Several Schedule entries include lettered sections (11AA, 11AB, 14A, 20A). Lettered sub‑sections often reflect later legislative insertions with specific, narrow effects. Do not assume their effect from the numbering alone; read the statutory text. They may impose discrete obligations (for example on guarantees, indemnities, or reporting) that can materially change risk allocation.

4. Cross‑statutory qualifications and exceptions. Item 225 (Treasury Corporation of Victoria) is explicitly "Subject to the Treasury Corporation of Victoria Act 1992". That is a concrete exception: the Treasury Corporation’s powers under this instrument are to be read in the shadow of its own enabling statute. Practitioners must identify whether other authorities have similar constraints in their enabling Acts.

5. Commencement and revocation complexity. The instrument’s commencement provisions are staggered (reg 3), but the Table of Amendments records that Parts 3 and 4 (and associated regs) were revoked shortly after making (reg 8 revoked Pt 3; reg 10 revoked Pt 4). The Endnotes therefore show that the effective state of the law has changed since the initial making. You must consult the consolidated version (the instrument states it is "Version incorporating amendments as at 2 September 2025") and the Victorian legislation website for the current legal position. Relying on a pre‑amendment printout risks error.

6. Administrative burden and coordination. Many listed authorities are large public bodies with multiple statutory instruments and internal governance rules. Matching the Schedule to internal delegations, board charters, accounting policies and lending documentation will require legal and financial teams to collaborate. The Regulations do not supply implementation guidance or transition rules; those are an internal operational responsibility.

7. Sunset date. The Regulations will sunset on 30 June 2032 under the Subordinate Legislation Act 1994 (Endnotes). Authorities relying on prescribed status should plan for potential non‑renewal or remaking, and the possibility that a re‑prescription exercise could alter which sections apply.

8. Reliance on printed formatting and typographical idiosyncrasies. The Endnotes highlight that certain interpretation rules apply (ILA s 36 and s 54A); headings, punctuation and provision numbers form part of the Statutory Rule. Where the printed Schedule presents anomalies or typographical quirks, prefer the consolidated electronic version on the official legislation site to avoid constructional disputes.

9. Amendments by Statutory Rule, not primary Act. The instrument’s core mechanism , allocating Act sections to named bodies , can be changed by subsequent Statutory Rules under the Act’s s 31 power. This creates an implementation risk where the Executive alters authority mappings without an Act amendment. Stakeholders who may be affected economically (creditors, investors, taxpayers) should monitor subordinate‑legislation changes rather than only primary legislation.

Step 1 , Identify your position in the Schedule. Confirm whether your organisation is named in Schedule 1 and note the exact Column 2 section numbers assigned to it. Use the consolidated electronic version of the Regulation (the instrument states "Version incorporating amendments as at 2 September 2025") to ensure you have current listings (regs 5-6; Endnotes, Table of Amendments).

Step 2 , Read the Act sections listed. The Regulations do not reproduce the Act. Take each section number listed against your authority and read the corresponding provisions of the Borrowing and Investment Powers Act 1987 to identify duties, approvals, limits, reporting requirements and any prescribed procedures. Lettered sections (for example 11AA, 11AB, 20A) are discrete and may impose specific constraints.

Step 3 , Cross‑check enabling and constraining legislation. Check whether your authority is also governed or constrained by another Act (Schedule 1 item 225 is a specific example referencing the Treasury Corporation of Victoria Act 1992). Identify any other enabling or procedural statutes, regulations, or Finance Orders that impose approvals, Ministerial consents or internal procedural steps for borrowing or investing.

Step 4 , Update governance documents and delegations. If the Act sections confer or restrict borrowing/investment powers, ensure that your board charters, delegations of authority, investment policy and treasury manual reflect those powers. Document board or ministerial approvals that are required under the cited sections. Where the Act requires approvals in a particular form (for example written consent of the Treasurer or a statutory officer), implement documentary standards to evidence compliance.

Step 5 , Integrate financial and risk controls. Align treasury operations with any statutory ceilings, security requirements or reporting cycles established in the Act sections. Update credit documentation (debentures, guarantees, security interests) so that lenders and auditors can see that the authority’s borrowing is authorised within the prescribed statutory framework.

Step 6 , Reporting and record keeping. Where the applied Act sections require reporting to the Treasurer, publication, or auditor notification, set up schedules and responsible officers to ensure timely compliance. Keep contemporaneous documentation of decisions to borrow or invest that show the precise statutory basis under the Act sections cited in the Schedule.

Step 7 , Legal review for transactions. Before entering material borrowings, loans, pledges of security or investment arrangements, obtain a legal opinion that the transaction is within the authority conferred by the applicable Act sections as applied under Schedule 1. That opinion should reference both the Act sections and any other Acts noted as qualifying the application.

Step 8 , Monitor subordinate legislation and sunset. Because the Schedule has been amended by later Statutory Rules (S.R. Nos 111/2024 and 87/2025) and because the entire Regulation has a sunset date of 30 June 2032, set up an internal watch to capture future Statutory Rules amending Schedule 1 and to note when the instrument approaches expiry. Changes to the Schedule can alter powers materially.

Step 9 , Coordinate with auditors and financiers. Notify external auditors and primary lenders of the statutory basis for borrowing or investment; confirm whether external financiers require additional assurances (for example, a legal opinion on the authority to borrow) and build those requirements into transaction timetables.

Step 10 , Document transitional issues. If your authority’s mapping in Schedule 1 changed by an amendment, document the effective date and any transitional arrangements for transactions that straddle amendments. The Regulations themselves do not provide transition rules, so internal records must show the legal basis at the time of each transaction.

Practical checklist (operational):

• Confirm your Schedule 1 item number and Column 2 listing on the consolidated version.
• Compile the texts of the Act sections listed and annotate obligations, approvals, limits and penalties.
• Cross‑reference with any enabling or constraining Acts (e.g., Treasury Corporation Act).
• Draft or amend board papers and minutes to evidence statutory authority for proposed transactions.
• In major transactions obtain a contemporaneous solicitor’s opinion and ensure lenders have evidence of power.
• Implement ongoing reporting schedules in compliance with any statutory reporting duties.
• Keep a regulatory watch on amendments and the sunset timetable (Endnotes).

By following these steps an authority will bridge the mechanical mapping in these Regulations to the substantive duties and operational procedures required by the Act sections that the Regulations impose.