This Act facilitates the sale of the Commonwealth’s shares in the Commonwealth Bank by defining the transfer time and putting in place transitional and saving rules to carry forward certain pre‑transfer obligations and entitlements. It preserves application of the Safety, Rehabilitation and Compensation Act and certain retirement benefit rules for events before transfer, creates premium/refund mechanics and exempts specified sale‑related transactions from State and Territory taxes.
It affects the Commonwealth Bank (and subsidiaries), their employees, Comcare, State/Territory tax authorities and the Minister/Secretary. Outstanding premiums remain payable to the Commonwealth (s8). The Minister/Secretary may certify tax‑exempt transactions (s20) and the Governor‑General may make regulations (s19).
The Commonwealth Bank Sale Act 1995 implements a set of transitional, saving and tax-exemption rules that operate around the Commonwealth’s sale of its shares in the Commonwealth Bank of Australia. Mechanically the Act does four classes of things.
First, it defines the trigger point for many of its provisions: transfer time, the moment when the Commonwealth no longer holds shares that carry more than 50% of the total voting rights (s 3). Several parts (notably Part 3 and many Schedule items) commence at that transfer time; other Schedule items commence on specified later dates (s 2(2)-(6)).
Second, it preserves selected aspects of Commonwealth law that would otherwise cease to apply when the Bank bodies stop being Commonwealth authorities. In particular, Division 1 of Part 3 preserves application of the Safety, Rehabilitation and Compensation Act 1988 (the SRC Act) in relation to injuries and property loss suffered before transfer time (s 6-7); it treats certain licence arrangements under the SRC Act as revoked at transfer time but provides a mechanism for licence-fee refund (s 9-10); it modifies premium‑payment treatment (s 8); and it creates a narrow post‑transfer notification obligation on the chief executive officer of a Bank body (s 13).
Third, the Act preserves certain employee-entitlement consequences under the Defence Force Retirement and Death Benefits Act 1973 (DFRDB Act) by declaring that affected employees are taken to continue in public employment for relevant purposes and that periods of eligible employment are preserved (s 14-16).
Fourth, the Act creates a specific exemption from State and Territory taxes for transactions connected to the Commonwealth’s sale of its shares in the Commonwealth Bank (Part 4; s 20). The exemption covers stamp duty and “any other tax, fee, duty, levy or charge” except for fees under State/Territory Corporations Law or taxes, fees, duties, levies or charges specified in a Gazette notice signed by the Minister (s 20(5)).
Current sections
Direct links to the current provisions in Commonwealth Bank Sale Act 1995.
25
Part 1
Preliminary
Part 1—Preliminary
1
Short title
1 Short title
This Act may be cited as the Commonwealth Bank Sale Act 1995.
2
Commencement
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 3, and all the items of the Schedule (except items 1, 12, 16, 17, 21, 22, 23, 26, 27, 31, 37 and 48), commence at the transfer time.
(3) Item 12 of the Schedule commences on a date to be fixed by Proclamation.
(4) Item 22 of the Schedule commences on the first anniversary of the day on which the transfer time occurs.
(5) Item 37 of the Schedule commences at the transfer time or at the beginning of 9 May 1996, whichever is later.
(6) Items 1 and 48 of the Schedule commence on the 10th anniversary of the day on which the transfer time occurs.
3
Interpretation
3 Interpretation
In this Act, unless the contrary intention appears:
Bank body means:
(a) the Commonwealth Bank, the Commonwealth Development Bank of Australia Limited or the Commonwealth Bank Officers Superannuation Corporation; or
(b) a body corporate that is a subsidiary (as defined in Division 6 of Part 1.2 of the Corporations Law) of the Commonwealth Bank.
Commonwealth Bank means the Commonwealth Bank of Australia.
transfer time means the time when the Commonwealth ceases to have the status of being the holder of shares in the Commonwealth Bank that carry more than 50% of the total voting rights attached to the voting shares in the Commonwealth Bank.
Part 3
Transitional and saving
An Act to facilitate the sale of the Commonwealth’s shares in the Commonwealth Bank, and for related purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Commonwealth Bank Sale Act 1995.
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 3, and all the items of the Schedule (except items 1, 12, 16, 17, 21, 22, 23, 26, 27, 31, 37 and 48), commence at the transfer time.
(3) Item 12 of the Schedule commences on a date to be fixed by Proclamation.
(4) Item 22 of the Schedule commences on the first anniversary of the day on which the transfer time occurs.
(5) Item 37 of the Schedule commences at the transfer time or at the beginning of 9 May 1996, whichever is later.
(6) Items 1 and 48 of the Schedule commence on the 10th anniversary of the day on which the transfer time occurs.
3 Interpretation
In this Act, unless the contrary intention appears:
Bank body means:
(a) the Commonwealth Bank, the Commonwealth Development Bank of Australia Limited or the Commonwealth Bank Officers Superannuation Corporation; or
(b) a body corporate that is a subsidiary (as defined in Division 6 of Part 1.2 of the Corporations Law) of the Commonwealth Bank.
Commonwealth Bank means the Commonwealth Bank of Australia.
transfer time means the time when the Commonwealth ceases to have the status of being the holder of shares in the Commonwealth Bank that carry more than 50% of the total voting rights attached to the voting shares in the Commonwealth Bank.
Part 3—Transitional and saving
Division 1—Safety, Rehabilitation and Compensation Act 1988
5 Interpretation
(1) Unless the contrary intention appears, expressions used in this Division that are also used in the SRC Act have the same respective meanings as in that Act.
(2) In this Division:
SRC Act means the Safety, Rehabilitation and Compensation Act 1988.
6 SRC Act continues to apply to Commonwealth Bank etc. for certain purposes
If a Bank body ceases to be a Commonwealth authority for the purposes of the SRC Act at the transfer time, the SRC Act continues to apply in relation to the Bank body to the extent, and in the manner, set out in sections 7 to 11 of this Act.
7 SRC Act continues to apply for previous injuries etc.
(1) The SRC Act continues to apply after the transfer time in relation to:
(a) injuries suffered by employees of the Bank body before the transfer time; and
(b) loss of, or damage to, property incurred by employees of the Bank body before the transfer time;
including employees who have stopped being employees of the Bank body before the transfer time.
(2) For the purposes of subsection (1), the SRC Act continues to apply as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the chief executive officer (however described) of the Bank body continued to be the principal officer of a Commonwealth authority.
8 Payment of premiums
(1) After the transfer time, Division 4A of Part VII of the SRC Act applies to the Bank body as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the Bank body were not required to pay a premium under that Division in respect of the part of a financial year that occurs after the transfer time; and
(c) the following word and paragraph were added at the end of subsection 96H(1) of the SRC Act:
“; or (f) in the case of an authority—the authority is not required to pay a premium under this Division in respect of part of a financial year.”.
(2) If an amount of premium payable by the Bank body in respect of a period before the transfer time remains unpaid, the amount is a debt due to the Commonwealth by the Bank body and is payable to Comcare.
9 Part VIIIA of the SRC Act
Part VIIIA of the SRC Act continues to apply to the Bank body after the transfer time as if any licence granted to the Bank body under that Part were revoked at the transfer time.
10 Refund of licence fee
(1) If the Bank body has paid a licence fee under section 107R of the SRC Act in respect of the licence fee year in which the transfer time occurs, then the Bank body is entitled to be paid a refund of the amount worked out using the following formula:
View image in the official source
where:
Number of refund days means the total number of days in the period beginning at the transfer time and ending on the last day of the licence fee year in which the transfer time occurs.
(2) In this section:
licence fee year means the year beginning on the date of commencement of a licence granted under section 107J of the SRC Act and ending on the day before the anniversary of that date.
11 Amendment of declarations
(1) If a notice was published in the Gazette before the transfer time declaring the Bank body to be a body corporate to which the SRC Act applies for the purposes of the definition of Commonwealth authority in subsection 4(1) of the SRC Act, then the notice has effect after the transfer time as if it did not contain a reference to the Bank body.
(2) Subsection (1) does not, by implication, prevent the amendment or revocation of the notice.
12 Section 128A of the SRC Act
Section 128A of the SRC Act continues to apply to the Commonwealth Bank after the transfer time as if the Commonwealth Bank continued to be a prescribed Commonwealth authority for the purposes of that section.
13 Notification of amount of salary etc.
(1) This section applies to a Bank body that was a Commonwealth authority for the purposes of the SRC Act immediately before the transfer time.
(2) The chief executive officer (however described) of the Bank body must notify the Commission, within 28 days after the transfer time, of the amount of salary, wages or pay paid to employees of the Bank body in the period starting on 1 July in the financial year in which the transfer time occurred and ending at the transfer time.
Division 2—Defence Force Retirement and Death Benefits Act 1973
14 Interpretation
In this Division:
DFRDB Act means the Defence Force Retirement and Death Benefits Act 1973.
15 Deferred benefits
(1) This section applies if, immediately before the transfer time, an employee of a Bank body was a person to whom deferred benefits were applicable under section 78 of the DFRDB Act.
(2) For the purposes of Division 3 of Part IX of the DFRDB Act, the employee is taken to continue in public employment, after the transfer time, so long as the employee continues to be employed by a Bank body.
(3) This section is subject to Division 3 of Part IX of the DFRDB Act.
16 Periods of eligible employment
If, immediately before the transfer time, a particular period of employment of a person by a Bank body was a period of eligible employment for the purposes of Division 3 of Part IX of the DFRDB Act, that period of employment continues to be a period of eligible employment for the purposes of that Division.
Division 3—Miscellaneous
17 Saving previous operation of section 109 of the Commonwealth Banks Act
The repeal of section 109 of the Commonwealth Banks Act 1959 does not affect:
(a) the vesting of property in the Commonwealth Bank under that section before the repeal; or
(b) the incurring of liabilities by the Commonwealth Bank under that section before the repeal.
18 Application of bad debt provisions of the Income Tax Assessment Act
(1) In applying Subdivision 165‑C or 166‑C of the Income Tax Assessment Act 1997 to decide whether a Bank body can deduct an amount for a bad debt in the year of income in which the completion time occurred, or in a later year of income, it must be assumed that the persons who beneficially owned the shares in the Commonwealth Bank immediately after the completion time were also the beneficial owners of the shares at all times before the completion time.
(2) In this section:
completion time means the time when the Commonwealth ceases to be a shareholder in the Commonwealth Bank.
19 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) In particular, regulations may be made in relation to matters of a transitional or saving nature arising out of the sale of the Commonwealth’s shares in the Commonwealth Bank, or otherwise arising out of the enactment of this Act.
(3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to regulations that are made under this section and that commence at or after the transfer time.
Part 4—Exemption from certain taxes
20 Exemption from certain State and Territory taxes
(1) No tax is payable under a law of a State or Territory in respect of an exempt matter or anything connected with an exempt matter.
(2) An authorised person may, by signed writing, certify that:
(a) a specified matter or thing is an exempt matter; or
(b) a specified thing was done in connection with a specified exempt matter.
(3) For all purposes and in all proceedings, a certificate under subsection (2) is evidence of the matter stated in the certificate.
(4) A document that appears to be a certificate under subsection (2) is taken to be such a certificate and to have been properly given unless the contrary is established.
(5) In this section:
authorised person means:
(a) the Minister; or
(b) the Secretary of the Department; or
(c) a person who:
(i) is an SES employee, or acting SES employee, in the Department; and
(ii) is authorised in writing by the Secretary of the Department for the purposes of this section.
exempt matter means any of the following:
(a) the sale by the Commonwealth of any of its shares in the Commonwealth Bank (other than a sale of those shares to the Commonwealth Bank);
(b) an agreement relating to a sale that is covered by paragraph (a);
(c) the transfer of any of the Commonwealth’s shares in the Commonwealth Bank to a person other than the Commonwealth Bank;
(d) the receipt of money by the Commonwealth in respect of a sale that is covered by paragraph (a).
tax means stamp duty, or any other tax, fee, duty, levy or charge, but does not include:
(a) a fee payable under the Corporations Law of a State or Territory; or
(b) a tax, fee, duty, levy or charge specified in a notice signed by the Minister and published in the Gazette.
Division 1
Safety, Rehabilitation and Compensation Act 1988
An Act to facilitate the sale of the Commonwealth’s shares in the Commonwealth Bank, and for related purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Commonwealth Bank Sale Act 1995.
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 3, and all the items of the Schedule (except items 1, 12, 16, 17, 21, 22, 23, 26, 27, 31, 37 and 48), commence at the transfer time.
(3) Item 12 of the Schedule commences on a date to be fixed by Proclamation.
(4) Item 22 of the Schedule commences on the first anniversary of the day on which the transfer time occurs.
(5) Item 37 of the Schedule commences at the transfer time or at the beginning of 9 May 1996, whichever is later.
(6) Items 1 and 48 of the Schedule commence on the 10th anniversary of the day on which the transfer time occurs.
3 Interpretation
In this Act, unless the contrary intention appears:
Bank body means:
(a) the Commonwealth Bank, the Commonwealth Development Bank of Australia Limited or the Commonwealth Bank Officers Superannuation Corporation; or
(b) a body corporate that is a subsidiary (as defined in Division 6 of Part 1.2 of the Corporations Law) of the Commonwealth Bank.
Commonwealth Bank means the Commonwealth Bank of Australia.
transfer time means the time when the Commonwealth ceases to have the status of being the holder of shares in the Commonwealth Bank that carry more than 50% of the total voting rights attached to the voting shares in the Commonwealth Bank.
Part 3—Transitional and saving
Division 1—Safety, Rehabilitation and Compensation Act 1988
5 Interpretation
(1) Unless the contrary intention appears, expressions used in this Division that are also used in the SRC Act have the same respective meanings as in that Act.
(2) In this Division:
SRC Act means the Safety, Rehabilitation and Compensation Act 1988.
6 SRC Act continues to apply to Commonwealth Bank etc. for certain purposes
If a Bank body ceases to be a Commonwealth authority for the purposes of the SRC Act at the transfer time, the SRC Act continues to apply in relation to the Bank body to the extent, and in the manner, set out in sections 7 to 11 of this Act.
7 SRC Act continues to apply for previous injuries etc.
(1) The SRC Act continues to apply after the transfer time in relation to:
(a) injuries suffered by employees of the Bank body before the transfer time; and
(b) loss of, or damage to, property incurred by employees of the Bank body before the transfer time;
including employees who have stopped being employees of the Bank body before the transfer time.
(2) For the purposes of subsection (1), the SRC Act continues to apply as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the chief executive officer (however described) of the Bank body continued to be the principal officer of a Commonwealth authority.
8 Payment of premiums
(1) After the transfer time, Division 4A of Part VII of the SRC Act applies to the Bank body as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the Bank body were not required to pay a premium under that Division in respect of the part of a financial year that occurs after the transfer time; and
(c) the following word and paragraph were added at the end of subsection 96H(1) of the SRC Act:
“; or (f) in the case of an authority—the authority is not required to pay a premium under this Division in respect of part of a financial year.”.
(2) If an amount of premium payable by the Bank body in respect of a period before the transfer time remains unpaid, the amount is a debt due to the Commonwealth by the Bank body and is payable to Comcare.
9 Part VIIIA of the SRC Act
Part VIIIA of the SRC Act continues to apply to the Bank body after the transfer time as if any licence granted to the Bank body under that Part were revoked at the transfer time.
10 Refund of licence fee
(1) If the Bank body has paid a licence fee under section 107R of the SRC Act in respect of the licence fee year in which the transfer time occurs, then the Bank body is entitled to be paid a refund of the amount worked out using the following formula:
View image in the official source
where:
Number of refund days means the total number of days in the period beginning at the transfer time and ending on the last day of the licence fee year in which the transfer time occurs.
(2) In this section:
licence fee year means the year beginning on the date of commencement of a licence granted under section 107J of the SRC Act and ending on the day before the anniversary of that date.
11 Amendment of declarations
(1) If a notice was published in the Gazette before the transfer time declaring the Bank body to be a body corporate to which the SRC Act applies for the purposes of the definition of Commonwealth authority in subsection 4(1) of the SRC Act, then the notice has effect after the transfer time as if it did not contain a reference to the Bank body.
(2) Subsection (1) does not, by implication, prevent the amendment or revocation of the notice.
12 Section 128A of the SRC Act
Section 128A of the SRC Act continues to apply to the Commonwealth Bank after the transfer time as if the Commonwealth Bank continued to be a prescribed Commonwealth authority for the purposes of that section.
13 Notification of amount of salary etc.
(1) This section applies to a Bank body that was a Commonwealth authority for the purposes of the SRC Act immediately before the transfer time.
(2) The chief executive officer (however described) of the Bank body must notify the Commission, within 28 days after the transfer time, of the amount of salary, wages or pay paid to employees of the Bank body in the period starting on 1 July in the financial year in which the transfer time occurred and ending at the transfer time.
Division 2—Defence Force Retirement and Death Benefits Act 1973
14 Interpretation
In this Division:
DFRDB Act means the Defence Force Retirement and Death Benefits Act 1973.
15 Deferred benefits
(1) This section applies if, immediately before the transfer time, an employee of a Bank body was a person to whom deferred benefits were applicable under section 78 of the DFRDB Act.
(2) For the purposes of Division 3 of Part IX of the DFRDB Act, the employee is taken to continue in public employment, after the transfer time, so long as the employee continues to be employed by a Bank body.
(3) This section is subject to Division 3 of Part IX of the DFRDB Act.
16 Periods of eligible employment
If, immediately before the transfer time, a particular period of employment of a person by a Bank body was a period of eligible employment for the purposes of Division 3 of Part IX of the DFRDB Act, that period of employment continues to be a period of eligible employment for the purposes of that Division.
Division 3—Miscellaneous
17 Saving previous operation of section 109 of the Commonwealth Banks Act
The repeal of section 109 of the Commonwealth Banks Act 1959 does not affect:
(a) the vesting of property in the Commonwealth Bank under that section before the repeal; or
(b) the incurring of liabilities by the Commonwealth Bank under that section before the repeal.
18 Application of bad debt provisions of the Income Tax Assessment Act
(1) In applying Subdivision 165‑C or 166‑C of the Income Tax Assessment Act 1997 to decide whether a Bank body can deduct an amount for a bad debt in the year of income in which the completion time occurred, or in a later year of income, it must be assumed that the persons who beneficially owned the shares in the Commonwealth Bank immediately after the completion time were also the beneficial owners of the shares at all times before the completion time.
(2) In this section:
completion time means the time when the Commonwealth ceases to be a shareholder in the Commonwealth Bank.
19 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) In particular, regulations may be made in relation to matters of a transitional or saving nature arising out of the sale of the Commonwealth’s shares in the Commonwealth Bank, or otherwise arising out of the enactment of this Act.
(3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to regulations that are made under this section and that commence at or after the transfer time.
Part 4—Exemption from certain taxes
20 Exemption from certain State and Territory taxes
(1) No tax is payable under a law of a State or Territory in respect of an exempt matter or anything connected with an exempt matter.
(2) An authorised person may, by signed writing, certify that:
(a) a specified matter or thing is an exempt matter; or
(b) a specified thing was done in connection with a specified exempt matter.
(3) For all purposes and in all proceedings, a certificate under subsection (2) is evidence of the matter stated in the certificate.
(4) A document that appears to be a certificate under subsection (2) is taken to be such a certificate and to have been properly given unless the contrary is established.
(5) In this section:
authorised person means:
(a) the Minister; or
(b) the Secretary of the Department; or
(c) a person who:
(i) is an SES employee, or acting SES employee, in the Department; and
(ii) is authorised in writing by the Secretary of the Department for the purposes of this section.
exempt matter means any of the following:
(a) the sale by the Commonwealth of any of its shares in the Commonwealth Bank (other than a sale of those shares to the Commonwealth Bank);
(b) an agreement relating to a sale that is covered by paragraph (a);
(c) the transfer of any of the Commonwealth’s shares in the Commonwealth Bank to a person other than the Commonwealth Bank;
(d) the receipt of money by the Commonwealth in respect of a sale that is covered by paragraph (a).
tax means stamp duty, or any other tax, fee, duty, levy or charge, but does not include:
(a) a fee payable under the Corporations Law of a State or Territory; or
(b) a tax, fee, duty, levy or charge specified in a notice signed by the Minister and published in the Gazette.
5
Interpretation
5 Interpretation
(1) Unless the contrary intention appears, expressions used in this Division that are also used in the SRC Act have the same respective meanings as in that Act.
(2) In this Division:
SRC Act means the Safety, Rehabilitation and Compensation Act 1988.
6
SRC Act continues to apply to Commonwealth Bank etc. for certain purposes
6 SRC Act continues to apply to Commonwealth Bank etc. for certain purposes
If a Bank body ceases to be a Commonwealth authority for the purposes of the SRC Act at the transfer time, the SRC Act continues to apply in relation to the Bank body to the extent, and in the manner, set out in sections 7 to 11 of this Act.
7
SRC Act continues to apply for previous injuries etc.
7 SRC Act continues to apply for previous injuries etc.
(1) The SRC Act continues to apply after the transfer time in relation to:
(a) injuries suffered by employees of the Bank body before the transfer time; and
(b) loss of, or damage to, property incurred by employees of the Bank body before the transfer time;
including employees who have stopped being employees of the Bank body before the transfer time.
(2) For the purposes of subsection (1), the SRC Act continues to apply as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the chief executive officer (however described) of the Bank body continued to be the principal officer of a Commonwealth authority.
8
Payment of premiums
8 Payment of premiums
(1) After the transfer time, Division 4A of Part VII of the SRC Act applies to the Bank body as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the Bank body were not required to pay a premium under that Division in respect of the part of a financial year that occurs after the transfer time; and
(c) the following word and paragraph were added at the end of subsection 96H(1) of the SRC Act:
“; or (f) in the case of an authority—the authority is not required to pay a premium under this Division in respect of part of a financial year.”.
(2) If an amount of premium payable by the Bank body in respect of a period before the transfer time remains unpaid, the amount is a debt due to the Commonwealth by the Bank body and is payable to Comcare.
9
Part VIIIA of the SRC Act
9 Part VIIIA of the SRC Act
Part VIIIA of the SRC Act continues to apply to the Bank body after the transfer time as if any licence granted to the Bank body under that Part were revoked at the transfer time.
10
Refund of licence fee
10 Refund of licence fee
(1) If the Bank body has paid a licence fee under section 107R of the SRC Act in respect of the licence fee year in which the transfer time occurs, then the Bank body is entitled to be paid a refund of the amount worked out using the following formula:
View image in the official source
where:
Number of refund days means the total number of days in the period beginning at the transfer time and ending on the last day of the licence fee year in which the transfer time occurs.
(2) In this section:
licence fee year means the year beginning on the date of commencement of a licence granted under section 107J of the SRC Act and ending on the day before the anniversary of that date.
11
Amendment of declarations
11 Amendment of declarations
(1) If a notice was published in the Gazette before the transfer time declaring the Bank body to be a body corporate to which the SRC Act applies for the purposes of the definition of Commonwealth authority in subsection 4(1) of the SRC Act, then the notice has effect after the transfer time as if it did not contain a reference to the Bank body.
(2) Subsection (1) does not, by implication, prevent the amendment or revocation of the notice.
12
Section 128A of the SRC Act
12 Section 128A of the SRC Act
Section 128A of the SRC Act continues to apply to the Commonwealth Bank after the transfer time as if the Commonwealth Bank continued to be a prescribed Commonwealth authority for the purposes of that section.
13
Notification of amount of salary etc.
13 Notification of amount of salary etc.
(1) This section applies to a Bank body that was a Commonwealth authority for the purposes of the SRC Act immediately before the transfer time.
(2) The chief executive officer (however described) of the Bank body must notify the Commission, within 28 days after the transfer time, of the amount of salary, wages or pay paid to employees of the Bank body in the period starting on 1 July in the financial year in which the transfer time occurred and ending at the transfer time.
Division 2
Defence Force Retirement and Death Benefits Act 1973
An Act to facilitate the sale of the Commonwealth’s shares in the Commonwealth Bank, and for related purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Commonwealth Bank Sale Act 1995.
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 3, and all the items of the Schedule (except items 1, 12, 16, 17, 21, 22, 23, 26, 27, 31, 37 and 48), commence at the transfer time.
(3) Item 12 of the Schedule commences on a date to be fixed by Proclamation.
(4) Item 22 of the Schedule commences on the first anniversary of the day on which the transfer time occurs.
(5) Item 37 of the Schedule commences at the transfer time or at the beginning of 9 May 1996, whichever is later.
(6) Items 1 and 48 of the Schedule commence on the 10th anniversary of the day on which the transfer time occurs.
3 Interpretation
In this Act, unless the contrary intention appears:
Bank body means:
(a) the Commonwealth Bank, the Commonwealth Development Bank of Australia Limited or the Commonwealth Bank Officers Superannuation Corporation; or
(b) a body corporate that is a subsidiary (as defined in Division 6 of Part 1.2 of the Corporations Law) of the Commonwealth Bank.
Commonwealth Bank means the Commonwealth Bank of Australia.
transfer time means the time when the Commonwealth ceases to have the status of being the holder of shares in the Commonwealth Bank that carry more than 50% of the total voting rights attached to the voting shares in the Commonwealth Bank.
Part 3—Transitional and saving
Division 1—Safety, Rehabilitation and Compensation Act 1988
5 Interpretation
(1) Unless the contrary intention appears, expressions used in this Division that are also used in the SRC Act have the same respective meanings as in that Act.
(2) In this Division:
SRC Act means the Safety, Rehabilitation and Compensation Act 1988.
6 SRC Act continues to apply to Commonwealth Bank etc. for certain purposes
If a Bank body ceases to be a Commonwealth authority for the purposes of the SRC Act at the transfer time, the SRC Act continues to apply in relation to the Bank body to the extent, and in the manner, set out in sections 7 to 11 of this Act.
7 SRC Act continues to apply for previous injuries etc.
(1) The SRC Act continues to apply after the transfer time in relation to:
(a) injuries suffered by employees of the Bank body before the transfer time; and
(b) loss of, or damage to, property incurred by employees of the Bank body before the transfer time;
including employees who have stopped being employees of the Bank body before the transfer time.
(2) For the purposes of subsection (1), the SRC Act continues to apply as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the chief executive officer (however described) of the Bank body continued to be the principal officer of a Commonwealth authority.
8 Payment of premiums
(1) After the transfer time, Division 4A of Part VII of the SRC Act applies to the Bank body as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the Bank body were not required to pay a premium under that Division in respect of the part of a financial year that occurs after the transfer time; and
(c) the following word and paragraph were added at the end of subsection 96H(1) of the SRC Act:
“; or (f) in the case of an authority—the authority is not required to pay a premium under this Division in respect of part of a financial year.”.
(2) If an amount of premium payable by the Bank body in respect of a period before the transfer time remains unpaid, the amount is a debt due to the Commonwealth by the Bank body and is payable to Comcare.
9 Part VIIIA of the SRC Act
Part VIIIA of the SRC Act continues to apply to the Bank body after the transfer time as if any licence granted to the Bank body under that Part were revoked at the transfer time.
10 Refund of licence fee
(1) If the Bank body has paid a licence fee under section 107R of the SRC Act in respect of the licence fee year in which the transfer time occurs, then the Bank body is entitled to be paid a refund of the amount worked out using the following formula:
View image in the official source
where:
Number of refund days means the total number of days in the period beginning at the transfer time and ending on the last day of the licence fee year in which the transfer time occurs.
(2) In this section:
licence fee year means the year beginning on the date of commencement of a licence granted under section 107J of the SRC Act and ending on the day before the anniversary of that date.
11 Amendment of declarations
(1) If a notice was published in the Gazette before the transfer time declaring the Bank body to be a body corporate to which the SRC Act applies for the purposes of the definition of Commonwealth authority in subsection 4(1) of the SRC Act, then the notice has effect after the transfer time as if it did not contain a reference to the Bank body.
(2) Subsection (1) does not, by implication, prevent the amendment or revocation of the notice.
12 Section 128A of the SRC Act
Section 128A of the SRC Act continues to apply to the Commonwealth Bank after the transfer time as if the Commonwealth Bank continued to be a prescribed Commonwealth authority for the purposes of that section.
13 Notification of amount of salary etc.
(1) This section applies to a Bank body that was a Commonwealth authority for the purposes of the SRC Act immediately before the transfer time.
(2) The chief executive officer (however described) of the Bank body must notify the Commission, within 28 days after the transfer time, of the amount of salary, wages or pay paid to employees of the Bank body in the period starting on 1 July in the financial year in which the transfer time occurred and ending at the transfer time.
Division 2—Defence Force Retirement and Death Benefits Act 1973
14 Interpretation
In this Division:
DFRDB Act means the Defence Force Retirement and Death Benefits Act 1973.
15 Deferred benefits
(1) This section applies if, immediately before the transfer time, an employee of a Bank body was a person to whom deferred benefits were applicable under section 78 of the DFRDB Act.
(2) For the purposes of Division 3 of Part IX of the DFRDB Act, the employee is taken to continue in public employment, after the transfer time, so long as the employee continues to be employed by a Bank body.
(3) This section is subject to Division 3 of Part IX of the DFRDB Act.
16 Periods of eligible employment
If, immediately before the transfer time, a particular period of employment of a person by a Bank body was a period of eligible employment for the purposes of Division 3 of Part IX of the DFRDB Act, that period of employment continues to be a period of eligible employment for the purposes of that Division.
Division 3—Miscellaneous
17 Saving previous operation of section 109 of the Commonwealth Banks Act
The repeal of section 109 of the Commonwealth Banks Act 1959 does not affect:
(a) the vesting of property in the Commonwealth Bank under that section before the repeal; or
(b) the incurring of liabilities by the Commonwealth Bank under that section before the repeal.
18 Application of bad debt provisions of the Income Tax Assessment Act
(1) In applying Subdivision 165‑C or 166‑C of the Income Tax Assessment Act 1997 to decide whether a Bank body can deduct an amount for a bad debt in the year of income in which the completion time occurred, or in a later year of income, it must be assumed that the persons who beneficially owned the shares in the Commonwealth Bank immediately after the completion time were also the beneficial owners of the shares at all times before the completion time.
(2) In this section:
completion time means the time when the Commonwealth ceases to be a shareholder in the Commonwealth Bank.
19 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) In particular, regulations may be made in relation to matters of a transitional or saving nature arising out of the sale of the Commonwealth’s shares in the Commonwealth Bank, or otherwise arising out of the enactment of this Act.
(3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to regulations that are made under this section and that commence at or after the transfer time.
Part 4—Exemption from certain taxes
20 Exemption from certain State and Territory taxes
(1) No tax is payable under a law of a State or Territory in respect of an exempt matter or anything connected with an exempt matter.
(2) An authorised person may, by signed writing, certify that:
(a) a specified matter or thing is an exempt matter; or
(b) a specified thing was done in connection with a specified exempt matter.
(3) For all purposes and in all proceedings, a certificate under subsection (2) is evidence of the matter stated in the certificate.
(4) A document that appears to be a certificate under subsection (2) is taken to be such a certificate and to have been properly given unless the contrary is established.
(5) In this section:
authorised person means:
(a) the Minister; or
(b) the Secretary of the Department; or
(c) a person who:
(i) is an SES employee, or acting SES employee, in the Department; and
(ii) is authorised in writing by the Secretary of the Department for the purposes of this section.
exempt matter means any of the following:
(a) the sale by the Commonwealth of any of its shares in the Commonwealth Bank (other than a sale of those shares to the Commonwealth Bank);
(b) an agreement relating to a sale that is covered by paragraph (a);
(c) the transfer of any of the Commonwealth’s shares in the Commonwealth Bank to a person other than the Commonwealth Bank;
(d) the receipt of money by the Commonwealth in respect of a sale that is covered by paragraph (a).
tax means stamp duty, or any other tax, fee, duty, levy or charge, but does not include:
(a) a fee payable under the Corporations Law of a State or Territory; or
(b) a tax, fee, duty, levy or charge specified in a notice signed by the Minister and published in the Gazette.
14
Interpretation
14 Interpretation
In this Division:
DFRDB Act means the Defence Force Retirement and Death Benefits Act 1973.
15
Deferred benefits
15 Deferred benefits
(1) This section applies if, immediately before the transfer time, an employee of a Bank body was a person to whom deferred benefits were applicable under section 78 of the DFRDB Act.
(2) For the purposes of Division 3 of Part IX of the DFRDB Act, the employee is taken to continue in public employment, after the transfer time, so long as the employee continues to be employed by a Bank body.
(3) This section is subject to Division 3 of Part IX of the DFRDB Act.
16
Periods of eligible employment
16 Periods of eligible employment
If, immediately before the transfer time, a particular period of employment of a person by a Bank body was a period of eligible employment for the purposes of Division 3 of Part IX of the DFRDB Act, that period of employment continues to be a period of eligible employment for the purposes of that Division.
Division 3
Miscellaneous
An Act to facilitate the sale of the Commonwealth’s shares in the Commonwealth Bank, and for related purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Commonwealth Bank Sale Act 1995.
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 3, and all the items of the Schedule (except items 1, 12, 16, 17, 21, 22, 23, 26, 27, 31, 37 and 48), commence at the transfer time.
(3) Item 12 of the Schedule commences on a date to be fixed by Proclamation.
(4) Item 22 of the Schedule commences on the first anniversary of the day on which the transfer time occurs.
(5) Item 37 of the Schedule commences at the transfer time or at the beginning of 9 May 1996, whichever is later.
(6) Items 1 and 48 of the Schedule commence on the 10th anniversary of the day on which the transfer time occurs.
3 Interpretation
In this Act, unless the contrary intention appears:
Bank body means:
(a) the Commonwealth Bank, the Commonwealth Development Bank of Australia Limited or the Commonwealth Bank Officers Superannuation Corporation; or
(b) a body corporate that is a subsidiary (as defined in Division 6 of Part 1.2 of the Corporations Law) of the Commonwealth Bank.
Commonwealth Bank means the Commonwealth Bank of Australia.
transfer time means the time when the Commonwealth ceases to have the status of being the holder of shares in the Commonwealth Bank that carry more than 50% of the total voting rights attached to the voting shares in the Commonwealth Bank.
Part 3—Transitional and saving
Division 1—Safety, Rehabilitation and Compensation Act 1988
5 Interpretation
(1) Unless the contrary intention appears, expressions used in this Division that are also used in the SRC Act have the same respective meanings as in that Act.
(2) In this Division:
SRC Act means the Safety, Rehabilitation and Compensation Act 1988.
6 SRC Act continues to apply to Commonwealth Bank etc. for certain purposes
If a Bank body ceases to be a Commonwealth authority for the purposes of the SRC Act at the transfer time, the SRC Act continues to apply in relation to the Bank body to the extent, and in the manner, set out in sections 7 to 11 of this Act.
7 SRC Act continues to apply for previous injuries etc.
(1) The SRC Act continues to apply after the transfer time in relation to:
(a) injuries suffered by employees of the Bank body before the transfer time; and
(b) loss of, or damage to, property incurred by employees of the Bank body before the transfer time;
including employees who have stopped being employees of the Bank body before the transfer time.
(2) For the purposes of subsection (1), the SRC Act continues to apply as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the chief executive officer (however described) of the Bank body continued to be the principal officer of a Commonwealth authority.
8 Payment of premiums
(1) After the transfer time, Division 4A of Part VII of the SRC Act applies to the Bank body as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the Bank body were not required to pay a premium under that Division in respect of the part of a financial year that occurs after the transfer time; and
(c) the following word and paragraph were added at the end of subsection 96H(1) of the SRC Act:
“; or (f) in the case of an authority—the authority is not required to pay a premium under this Division in respect of part of a financial year.”.
(2) If an amount of premium payable by the Bank body in respect of a period before the transfer time remains unpaid, the amount is a debt due to the Commonwealth by the Bank body and is payable to Comcare.
9 Part VIIIA of the SRC Act
Part VIIIA of the SRC Act continues to apply to the Bank body after the transfer time as if any licence granted to the Bank body under that Part were revoked at the transfer time.
10 Refund of licence fee
(1) If the Bank body has paid a licence fee under section 107R of the SRC Act in respect of the licence fee year in which the transfer time occurs, then the Bank body is entitled to be paid a refund of the amount worked out using the following formula:
View image in the official source
where:
Number of refund days means the total number of days in the period beginning at the transfer time and ending on the last day of the licence fee year in which the transfer time occurs.
(2) In this section:
licence fee year means the year beginning on the date of commencement of a licence granted under section 107J of the SRC Act and ending on the day before the anniversary of that date.
11 Amendment of declarations
(1) If a notice was published in the Gazette before the transfer time declaring the Bank body to be a body corporate to which the SRC Act applies for the purposes of the definition of Commonwealth authority in subsection 4(1) of the SRC Act, then the notice has effect after the transfer time as if it did not contain a reference to the Bank body.
(2) Subsection (1) does not, by implication, prevent the amendment or revocation of the notice.
12 Section 128A of the SRC Act
Section 128A of the SRC Act continues to apply to the Commonwealth Bank after the transfer time as if the Commonwealth Bank continued to be a prescribed Commonwealth authority for the purposes of that section.
13 Notification of amount of salary etc.
(1) This section applies to a Bank body that was a Commonwealth authority for the purposes of the SRC Act immediately before the transfer time.
(2) The chief executive officer (however described) of the Bank body must notify the Commission, within 28 days after the transfer time, of the amount of salary, wages or pay paid to employees of the Bank body in the period starting on 1 July in the financial year in which the transfer time occurred and ending at the transfer time.
Division 2—Defence Force Retirement and Death Benefits Act 1973
14 Interpretation
In this Division:
DFRDB Act means the Defence Force Retirement and Death Benefits Act 1973.
15 Deferred benefits
(1) This section applies if, immediately before the transfer time, an employee of a Bank body was a person to whom deferred benefits were applicable under section 78 of the DFRDB Act.
(2) For the purposes of Division 3 of Part IX of the DFRDB Act, the employee is taken to continue in public employment, after the transfer time, so long as the employee continues to be employed by a Bank body.
(3) This section is subject to Division 3 of Part IX of the DFRDB Act.
16 Periods of eligible employment
If, immediately before the transfer time, a particular period of employment of a person by a Bank body was a period of eligible employment for the purposes of Division 3 of Part IX of the DFRDB Act, that period of employment continues to be a period of eligible employment for the purposes of that Division.
Division 3—Miscellaneous
17 Saving previous operation of section 109 of the Commonwealth Banks Act
The repeal of section 109 of the Commonwealth Banks Act 1959 does not affect:
(a) the vesting of property in the Commonwealth Bank under that section before the repeal; or
(b) the incurring of liabilities by the Commonwealth Bank under that section before the repeal.
18 Application of bad debt provisions of the Income Tax Assessment Act
(1) In applying Subdivision 165‑C or 166‑C of the Income Tax Assessment Act 1997 to decide whether a Bank body can deduct an amount for a bad debt in the year of income in which the completion time occurred, or in a later year of income, it must be assumed that the persons who beneficially owned the shares in the Commonwealth Bank immediately after the completion time were also the beneficial owners of the shares at all times before the completion time.
(2) In this section:
completion time means the time when the Commonwealth ceases to be a shareholder in the Commonwealth Bank.
19 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) In particular, regulations may be made in relation to matters of a transitional or saving nature arising out of the sale of the Commonwealth’s shares in the Commonwealth Bank, or otherwise arising out of the enactment of this Act.
(3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to regulations that are made under this section and that commence at or after the transfer time.
Part 4—Exemption from certain taxes
20 Exemption from certain State and Territory taxes
(1) No tax is payable under a law of a State or Territory in respect of an exempt matter or anything connected with an exempt matter.
(2) An authorised person may, by signed writing, certify that:
(a) a specified matter or thing is an exempt matter; or
(b) a specified thing was done in connection with a specified exempt matter.
(3) For all purposes and in all proceedings, a certificate under subsection (2) is evidence of the matter stated in the certificate.
(4) A document that appears to be a certificate under subsection (2) is taken to be such a certificate and to have been properly given unless the contrary is established.
(5) In this section:
authorised person means:
(a) the Minister; or
(b) the Secretary of the Department; or
(c) a person who:
(i) is an SES employee, or acting SES employee, in the Department; and
(ii) is authorised in writing by the Secretary of the Department for the purposes of this section.
exempt matter means any of the following:
(a) the sale by the Commonwealth of any of its shares in the Commonwealth Bank (other than a sale of those shares to the Commonwealth Bank);
(b) an agreement relating to a sale that is covered by paragraph (a);
(c) the transfer of any of the Commonwealth’s shares in the Commonwealth Bank to a person other than the Commonwealth Bank;
(d) the receipt of money by the Commonwealth in respect of a sale that is covered by paragraph (a).
tax means stamp duty, or any other tax, fee, duty, levy or charge, but does not include:
(a) a fee payable under the Corporations Law of a State or Territory; or
(b) a tax, fee, duty, levy or charge specified in a notice signed by the Minister and published in the Gazette.
17
Saving previous operation of section 109 of the Commonwealth Banks Act
17 Saving previous operation of section 109 of the Commonwealth Banks Act
The repeal of section 109 of the Commonwealth Banks Act 1959 does not affect:
(a) the vesting of property in the Commonwealth Bank under that section before the repeal; or
(b) the incurring of liabilities by the Commonwealth Bank under that section before the repeal.
18
Application of bad debt provisions of the Income Tax Assessment Act
18 Application of bad debt provisions of the Income Tax Assessment Act
(1) In applying Subdivision 165‑C or 166‑C of the Income Tax Assessment Act 1997 to decide whether a Bank body can deduct an amount for a bad debt in the year of income in which the completion time occurred, or in a later year of income, it must be assumed that the persons who beneficially owned the shares in the Commonwealth Bank immediately after the completion time were also the beneficial owners of the shares at all times before the completion time.
(2) In this section:
completion time means the time when the Commonwealth ceases to be a shareholder in the Commonwealth Bank.
19
Regulations
19 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) In particular, regulations may be made in relation to matters of a transitional or saving nature arising out of the sale of the Commonwealth’s shares in the Commonwealth Bank, or otherwise arising out of the enactment of this Act.
(3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to regulations that are made under this section and that commence at or after the transfer time.
Part 4
Exemption from certain taxes
Part 4—Exemption from certain taxes
20
Exemption from certain State and Territory taxes
20 Exemption from certain State and Territory taxes
(1) No tax is payable under a law of a State or Territory in respect of an exempt matter or anything connected with an exempt matter.
(2) An authorised person may, by signed writing, certify that:
(a) a specified matter or thing is an exempt matter; or
(b) a specified thing was done in connection with a specified exempt matter.
(3) For all purposes and in all proceedings, a certificate under subsection (2) is evidence of the matter stated in the certificate.
(4) A document that appears to be a certificate under subsection (2) is taken to be such a certificate and to have been properly given unless the contrary is established.
(5) In this section:
authorised person means:
(a) the Minister; or
(b) the Secretary of the Department; or
(c) a person who:
(i) is an SES employee, or acting SES employee, in the Department; and
(ii) is authorised in writing by the Secretary of the Department for the purposes of this section.
exempt matter means any of the following:
(a) the sale by the Commonwealth of any of its shares in the Commonwealth Bank (other than a sale of those shares to the Commonwealth Bank);
(b) an agreement relating to a sale that is covered by paragraph (a);
(c) the transfer of any of the Commonwealth’s shares in the Commonwealth Bank to a person other than the Commonwealth Bank;
(d) the receipt of money by the Commonwealth in respect of a sale that is covered by paragraph (a).
tax means stamp duty, or any other tax, fee, duty, levy or charge, but does not include:
(a) a fee payable under the Corporations Law of a State or Territory; or
(b) a tax, fee, duty, levy or charge specified in a notice signed by the Minister and published in the Gazette.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1—Preliminary
1 Short title
1 Short title
This Act may be cited as the Commonwealth Bank Sale Act 1995.
2 Commencement
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 3, and all the items of the Schedule (except items 1, 12, 16, 17, 21, 22, 23, 26, 27, 31, 37 and 48), commence at the transfer time.
(3) Item 12 of the Schedule commences on a date to be fixed by Proclamation.
(4) Item 22 of the Schedule commences on the first anniversary of the day on which the transfer time occurs.
(5) Item 37 of the Schedule commences at the transfer time or at the beginning of 9 May 1996, whichever is later.
(6) Items 1 and 48 of the Schedule commence on the 10th anniversary of the day on which the transfer time occurs.
3 Interpretation
3 Interpretation
In this Act, unless the contrary intention appears:
Bank body means:
(a) the Commonwealth Bank, the Commonwealth Development Bank of Australia Limited or the Commonwealth Bank Officers Superannuation Corporation; or
(b) a body corporate that is a subsidiary (as defined in Division 6 of Part 1.2 of the Corporations Law) of the Commonwealth Bank.
Commonwealth Bank means the Commonwealth Bank of Australia.
transfer time means the time when the Commonwealth ceases to have the status of being the holder of shares in the Commonwealth Bank that carry more than 50% of the total voting rights attached to the voting shares in the Commonwealth Bank.
Part 3 Transitional and saving
An Act to facilitate the sale of the Commonwealth’s shares in the Commonwealth Bank, and for related purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Commonwealth Bank Sale Act 1995.
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 3, and all the items of the Schedule (except items 1, 12, 16, 17, 21, 22, 23, 26, 27, 31, 37 and 48), commence at the transfer time.
(3) Item 12 of the Schedule commences on a date to be fixed by Proclamation.
(4) Item 22 of the Schedule commences on the first anniversary of the day on which the transfer time occurs.
(5) Item 37 of the Schedule commences at the transfer time or at the beginning of 9 May 1996, whichever is later.
(6) Items 1 and 48 of the Schedule commence on the 10th anniversary of the day on which the transfer time occurs.
Operational mechanisms include authorisation and certification powers for specified Commonwealth officers to issue certificates that a matter is an “exempt matter” or connected with one; those certificates are prima facie evidence and documents that appear to be certificates are taken to be such unless the contrary is established (s 20(2)-(4)). The Governor‑General is empowered to make regulations for matters required or convenient to carry the Act into effect, and the Act exempts such regulations from the retrospective restriction in s 12(2) of the Legislation Act 2003 where they commence at or after the transfer time (s 19).
The Act therefore changes legal relationships by (a) continuing Commonwealth statutory protections for pre‑transfer events despite privatisation; (b) altering premium and licence treatment post‑transfer under the SRC Act; (c) preserving certain retirement‑benefit continuities; and (d) removing specified State and Territory tax liabilities for the Commonwealth and connected transfer arrangements, subject to certification by authorised officers (s 6-13, s 15-16, s 20).
Main concepts
Key defined terms and structural concepts determine the Act’s operation.
Bank body (s 3) is defined to include the Commonwealth Bank of Australia, the Commonwealth Development Bank of Australia Limited, the Commonwealth Bank Officers Superannuation Corporation, and any body corporate that is a subsidiary of the Commonwealth Bank within the meaning of the Corporations Law. That definition sets the universe of entities that attract the saving and transitional treatment spelled out in Part 3.
Transfer time (s 3) is the pivotal temporal concept. It is the moment when the Commonwealth ceases to hold shares carrying more than 50% of voting rights attached to the voting shares in the Commonwealth Bank. Many provisions expressly commence at that moment (s 2(2)), and the Act’s transitional treatment depends on it.
SRC Act continuity (s 6-13). The Act adopts the SRC Act’s own definitions for expressions used in Division 1 (s 5(1)) and then provides that, if a Bank body ceases to be a Commonwealth authority for the purposes of the SRC Act at transfer time, the SRC Act nevertheless continues to apply for a set of specific purposes. Those purposes include compensation for injuries and property loss suffered before transfer time (s 7); special handling of premium obligations for the financial year in which transfer occurs (s 8); treating licences under Part VIIIA of the SRC Act as revoked at transfer time and providing a refund mechanism for licence fees paid for the licence fee year that contains the transfer time (s 9-10); and requiring notification of salary totals to the Commission within 28 days after transfer time (s 13).
Preservation of DFRDB entitlements (s 14-16). Employees who, immediately before transfer time, had deferred benefits under the DFRDB Act are treated as continuing in public employment for the purposes of Division 3 of Part IX of the DFRDB Act so long as they remain employed by a Bank body (s 15). Periods of employment that were “eligible employment” remain so (s 16).
Tax exemption (s 20). The Act specifies that no State or Territory tax is payable in respect of an “exempt matter” (s 20(1)). Exempt matters are narrowly listed: the Commonwealth’s sale of shares (except a sale to the Commonwealth Bank), agreements relating to that sale, transfers of Commonwealth shares to persons other than the Commonwealth Bank, and receipt of money by the Commonwealth in respect of such a sale (s 20(5)). The Act authorises specified Commonwealth officers to certify that a matter is exempt, and sets evidentiary consequences for such certificates (s 20(2)-(4)). The definition of tax for the exemption is broad but explicitly excludes Corporations Law fees and any tax, fee, duty, levy or charge specified in a Gazette notice signed by the Minister (s 20(5)).
Regulation‑making and retrospective limitation (s 19). The Governor‑General may make regulations for prescribed matters and transitional or saving matters linked to the sale. Importantly, s 19(3) states that s 12(2) of the Legislation Act 2003 (which limits retrospective application of legislative instruments) does not apply to regulations made under s 19 that commence at or after transfer time, thereby allowing certain regulations to have retrospective effect back to transfer time if they commence at or after it.
Completion time (s 18(2) definition). For the purpose of applying Subdivisions 165‑C or 166‑C of the Income Tax Assessment Act 1997 when deciding a bad debt deduction, the Act introduces the term completion time, defined as when the Commonwealth ceases to be a shareholder in the Commonwealth Bank, and prescribes a factual assumption about beneficial ownership across the completion time for that tax purpose (s 18).
These concepts are the statutory levers by which the Act secures continuity of certain Commonwealth protections and removes specified State/Territory tax consequences tied to the sale process.
Who it affects
The Act identifies who stands to gain, who bears obligations, and which third parties are implicated.
Bank bodies (s 3). The principal directly affected corporate entities are the Commonwealth Bank of Australia; the Commonwealth Development Bank of Australia Limited; the Commonwealth Bank Officers Superannuation Corporation; and subsidiaries of the Commonwealth Bank as defined under the Corporations Law. The Act’s transitional savings, premium treatment, licence revocation and refund, and notification obligations apply to those Bank bodies if they cease to be Commonwealth authorities on transfer time (s 6-13).
Employees and former employees of Bank bodies (s 7, s 13). The SRC Act continuance covers injuries to employees and loss or damage to property incurred by employees before transfer time, and explicitly includes employees who stopped being employees before transfer time (s 7(1)). The chief executive officer of a Bank body has a statutory notification duty to the Commission about salary, wages or pay paid to employees for the portion of the financial year up to transfer time (s 13).
Deferred‑benefit recipients under the DFRDB Act (s 15-16). Employees who immediately prior to transfer time were persons to whom deferred benefits applied under s 78 of the DFRDB Act are treated as continuing in public employment for purposes of that Act so long as they remain employed by a Bank body. Periods of eligible employment remain eligible (s 15-16).
Commonwealth executive decision‑makers (s 20(2), s 19). The Minister, the Secretary of the Department, and authorised SES employees (if authorised in writing by the Secretary) are empowered to certify tax‑exempt matters (s 20(5)). The Governor‑General may make regulations required to carry the Act into effect (s 19).
State and Territory revenue agencies and transferees. The Act removes liability for State and Territory taxes, stamp duties and similar charges for transactions described as exempt matters in s 20(1)-(5). That affects how state revenue offices treat instruments, transfers of shares, agreements and monetary receipts connected to sales of Commonwealth shares. The Act places a practical evidentiary mechanism in the hands of Commonwealth authorised persons to provide certificates that operate as evidence for all purposes (s 20(2)-(4)).
Comcare and SRC Commission (s 8(2), s 13). If Division 4A Part VII premiums under the SRC Act remain unpaid for periods before transfer time, the unpaid amount becomes a debt due to the Commonwealth and is payable to Comcare (s 8(2)). The Commission receives the s 13 notification of salary totals within 28 days after transfer time.
Tax advisers and bank tax positions (s 18). For the purposes of applying Subdivisions 165‑C or 166‑C of the Income Tax Assessment Act 1997 to bad debt deductions, the Act mandates an assumption about the continuity of beneficial ownership across the completion time, a rule that affects how tax advisers evaluate claims where ownership changed on privatisation (s 18).
Parties who may rely on certificates and the evidentiary presumptions (s 20(3)-(4)). External parties, including purchasers and state revenue authorities, will be affected by the Act’s evidentiary regime because certificates issued by authorised persons are evidence of the matters stated and documents that appear to be certificates are taken to be such unless the contrary is established (s 20(3)-(4)).
In short, the Act places benefits, obligations and evidentiary tools in the hands of the Commonwealth and its officials, preserves certain employee rights and tax assumptions affecting banks and their employees, and directly affects state revenue treatment and private parties that transact with the Commonwealth or the Commonwealth Bank around the sale.
Key duties and rights
The Act creates a small set of express duties on public officials and Bank bodies, and confers rights and legal effects intended to ease the sale transition.
Duties
Certification duty and evidentiary power (authorised officers) (s 20(2)). The Act permits an authorised person,the Minister, the Secretary of the Department, or an authorised SES employee,to certify in signed writing that a specified matter is an exempt matter or that a specified thing was done connected to an exempt matter. While the Act does not require that an authorised person issue certificates in particular circumstances, it confers the power; exercising that power creates evidentiary consequences (s 20(3)-(4)).
Notification duty on chief executive officer of Bank body (s 13). The chief executive officer of a Bank body that was a Commonwealth authority immediately before transfer time must notify the Commission within 28 days after transfer time of the amount of salary, wages or pay paid to employees of the Bank body in the period from 1 July in the financial year in which transfer time occurred and ending at transfer time. This is an affirmative reporting obligation with a specified timeframe.
Debt payment obligation for unpaid premiums (s 8(2)). If a premium payable by the Bank body in respect of a period before transfer time remains unpaid after transfer time, that amount is a debt due to the Commonwealth and payable to Comcare. This places an enforceable financial obligation on the Bank body to pay pre‑transfer premiums.
Regulation‑making (executive) duty to prescribe for transitional matters if required (s 19(1)-(2)). The Act empowers the Governor‑General to make regulations necessary or convenient for carrying out the Act, including transitional or saving matters arising from the sale. The power imports an executive duty to make such regulations where considered necessary.
Rights and statutory effects
SRC Act continuity for pre‑transfer injuries and property loss (s 7). Employees (including former employees whose employment ended before transfer time) retain the benefit of the SRC Act in relation to injuries and property loss suffered before transfer time. The effect is that entitlements and procedures under the SRC Act continue as if the Bank body had remained a Commonwealth authority (s 7(2)).
Premium exemption for part of financial year after transfer time (s 8(1)(b)). The Act treats Bank bodies as not required to pay a Division 4A premium under Part VII of the SRC Act in respect of the part of a financial year that occurs after transfer time. That is an affirmative concession in premium liability.
Licence revocation and refund rights (s 9-10). Part VIIIA licences granted to a Bank body under the SRC Act are treated as revoked at transfer time (s 9). If a licence fee under s 107R was paid for the licence fee year that includes transfer time, the Bank body is entitled to a refund calculated using the formula printed in s 10(1), with Number of refund days defined as the days from transfer time to the last day of the licence fee year.
Continuation for specified DFRDB benefits (s 15-16). Employees who had deferred benefits or who had eligible employment periods immediately before transfer time retain relevant DFRDB Act treatment if they continue to be employed by a Bank body.
Tax exemption and certificate evidence (s 20). The Commonwealth, and anyone transacting with it, are granted an exemption from State and Territory taxes in respect of defined exempt matters. An authorised person’s certificate that a matter is exempt is evidence of that fact for all purposes and in all proceedings; documents that appear to be such certificates are taken to be such unless the contrary is established (s 20(2)-(4)).
Rights, duties and administrative discretion are therefore concentrated in the Commonwealth’s executive and in the Bank bodies. The Act imposes a narrow reporting duty on bank executives and provides statutory presumptions and debt obligations that create enforceable financial and evidentiary effects.
Penalties and enforcement
The Act is light on express criminal penalties; enforcement is primarily civil, fiscal and evidentiary.
Absence of express criminal sanctions
The text of the Act does not create specific criminal offences or fines for failure to comply with the notification duty in s 13, nor for failure by an authorised person to issue or withdraw a certificate under s 20. There are no specified penalties attached to most of the Act’s obligations and powers. Consequently, enforcement is likely to rely on ordinary civil and administrative mechanisms or on other statutory regimes that remain applicable.
Civil and fiscal enforcement mechanisms
Debt recovery (s 8(2)). The Act expressly converts unpaid premiums payable by a Bank body in respect of periods before transfer time into a debt due to the Commonwealth and payable to Comcare. That turns unpaid premium obligations into enforceable civil debts subject to standard Commonwealth debt recovery and collection mechanisms. Comcare is the recipient of that debt, which creates a direct public recovery channel.
Evidentiary presumptions (s 20(3)-(4)). Certificates issued by authorised persons are evidence of the matters they state for all purposes and in all proceedings. A document that appears to be such a certificate is taken to be one unless the contrary is established. The statutory evidentiary weight shifts the practical burden of proof onto third parties challenging certificate validity. While not a penalty, this evidentiary regime facilitates administrative decisions in favour of the Commonwealth and changes the litigation posture by requiring challengers to disprove apparent certificates.
Licence revocation and refund operation (s 9-10). Part VIIIA licences under the SRC Act are treated as revoked at transfer time; s 10 provides a statutory refund mechanism calculated by formula. The revocation itself may remove regulatory permissions and licences automatically; any post‑transfer activity requiring a licence may need to be re‑assessed. The Act’s refund mechanism is an administrative monetary adjustment rather than a sanction mechanism.
Regulatory discretion and retrospective regulations
Regulatory power and retrospective effect (s 19). The Governor‑General may make regulations necessary to give effect to the Act, and s 19(3) provides that s 12(2) of the Legislation Act 2003 (which prevents retrospective legislative instruments) does not apply to regulations made under s 19 that commence at or after transfer time. That opens the possibility that regulations made under s 19 could have practical retrospective effect to transfer time, affecting parties who acted between transfer time and the date the regulations themselves commence. The Act therefore imports a regulatory enforcement risk that may be realised through civil regulatory instruments rather than criminal sanctions.
Interaction with other enforcement regimes
Where this Act creates obligations that interact with other statutes that carry penalties or enforcement mechanisms (for example, the SRC Act or the Income Tax Assessment Act), enforcement may be pursued under those other statutes, but the Act does not itself create additional penalty provisions. For example, unpaid premiums become a debt payable to Comcare and so enforcement would proceed under debt recovery mechanisms rather than under a new criminal sanction in this Act.
In sum, enforcement under the Act relies on civil debt recovery, administrative primacy provided by evidentiary certificates, and the executive’s regulation‑making power. The Act does not create a separate new penal regime or express criminal offences; practical enforcement is procedural and financial.
How it interacts with other laws
The Act is tightly drafted to produce specific cross‑statutory effects; it amends how other Commonwealth statutes apply to the Bank bodies or in relation to the sale transaction.
Safety, Rehabilitation and Compensation Act 1988 (SRC Act)
Definitions and continuity (s 5-7). The Act adopts SRC Act expressions for those terms used in Division 1 (s 5(1)). If a Bank body ceases to be a Commonwealth authority at transfer time, the SRC Act continues to apply in relation to the Bank body for a defined set of purposes (s 6). The SRC Act’s continuing application is expressly limited to injuries and property loss suffered before transfer time, and is to be applied as if the Bank body remained a Commonwealth authority and its chief executive officer remained the principal officer of a Commonwealth authority (s 7).
Premiums and licences (s 8-10). Division 4A of Part VII of the SRC Act is applied after transfer time as if Bank bodies remained Commonwealth authorities, except that the Bank body is not required to pay a premium under that Division for the part of a financial year after transfer time (s 8(1)(b)). Unpaid premiums for periods before transfer time are treated as debts payable to Comcare (s 8(2)). Part VIIIA licences are treated as revoked at transfer time (s 9), and s 10 establishes a statutory refund method for licence fees paid for the licence fee year that includes transfer time.
Administrative declarations (s 11-12). Notices published in the Gazette declaring Bank bodies to be bodies corporate to which the SRC Act applies are to be treated after transfer time as if they did not contain a reference to the Bank body, subject to possible amendment or revocation (s 11). Section 128A of the SRC Act continues to apply to the Commonwealth Bank after transfer time as if it continued to be a prescribed Commonwealth authority for purposes of that section (s 12).
DFRDB Act (Defence Force Retirement and Death Benefits Act 1973)
Continuity of deferred benefits and eligible employment (s 15-16). The Act integrates with the DFRDB Act by declaring that persons with deferred benefits or eligible employment periods immediately before transfer time continue to be treated as in public employment for specified purposes if they remain employed by a Bank body (s 15-16). Those provisions operate subject to Division 3 of Part IX of the DFRDB Act.
Income Tax Assessment Act 1997
Bad debt deductions (s 18). When applying Subdivisions 165‑C or 166‑C to determine whether a Bank body can deduct a bad debt in the year of income in which the completion time occurred (completion time is when the Commonwealth ceases to be a shareholder) or a later year, the Act requires that it be assumed that the persons who beneficially owned the shares immediately after completion time were also beneficial owners before completion time (s 18(1)-(2)). That is a rule of statutory assumption for tax law purposes, designed to neutralise ownership changes for the specific tax calculation.
Commonwealth Banks Act 1959
Saving of prior operations (s 17). The repeal of s 109 of the Commonwealth Banks Act 1959 is saved insofar as vesting of property and incurring of liabilities under that section before repeal is not affected (s 17). The Act therefore preserves prior transfers and obligations effected under the earlier statute.
Legislation Act 2003
Exclusion of retrospective limitation (s 19(3)). The Act specifies that s 12(2) of the Legislation Act 2003, which ordinarily restricts retrospective application of legislative instruments, does not apply to regulations made under s 19 that commence at or after transfer time. That creates a specific interaction allowing certain regulations to have retrospective effect tied to transfer time.
Corporations Law (State/Territory)
Tax exemption carve‑out (s 20(5)). The tax exemption does not apply to a fee payable under the Corporations Law of a State or Territory. The Act therefore preserves state fees under the Corporations Law and prevents the tax exemption from swallowing those regulatory levies.
State and Territory laws
Superseding state taxation (s 20(1)). Section 20 creates an exemption from “tax” under State or Territory laws in respect of exempt matters. The Act therefore changes the incidence of State/Territory taxes for the particular sale transactions specified, subject to the exceptions set out in s 20(5).
Regulations and retrospective instruments
The Act’s regulation‑making power (s 19) and its specific exclusion of s 12(2) of the Legislation Act (s 19(3)) create the possibility of regulations having effect to carry transitional or saving provisions back to transfer time. Those regulations could interact substantively with other statutes, including the SRC Act and state taxes.
Overall, the Act functions as a targeted cross‑statutory instrument that preserves particular Commonwealth statutory benefits for pre‑transfer events, adjusts the tax and premium consequences of sale, and provides executive powers to smooth the legal transition. Its drafting explicitly integrates with the SRC Act, the DFRDB Act, income tax law, the repealed Commonwealth Banks Act 1959, and State/Territory tax and Corporations Law regimes.
Amendment history
The text supplied does not contain a recorded series of amendments or a post‑enactment amendment log. What the Act does provide, however, are commencement and staging provisions that set out delayed commencements for discrete parts and workshop‑style Schedule items.
Commencement structure (s 2). The Act generally commences on Royal Assent (s 2(1)). Part 3 and almost all items of the Schedule commence at the transfer time, with express exceptions for listed Schedule items (s 2(2)). Item 12 of the Schedule is to commence on a date to be fixed by Proclamation (s 2(3)). Item 22 commences on the first anniversary of the day on which the transfer time occurs (s 2(4)). Item 37 commences at transfer time or at the beginning of 9 May 1996, whichever is later (s 2(5)). Items 1 and 48 of the Schedule commence on the tenth anniversary of the day on which transfer time occurs (s 2(6)). These staggered commencements indicate legislative design to phase in particular legal changes.
No textual amendment schedule displayed. The supplied Act text does not include any later amendment enactments, amendment dates, or marginal notes indicating legislative changes after 1995. The Act contains references to external statutes (for example, the Legislation Act 2003 in s 19(3)) but does not in itself display tracked changes or amending schedules in the text provided.
Schedule items referenced but not reproduced here. Section 2 refers to items in the Schedule and stages their commencement. The supplied text does not reproduce the Schedule contents in full; therefore the scope and substantive content of the Schedule items, some of which are timed to commence a year or ten years after transfer, are not visible in the material before us. For present purposes, the Act’s operational amendment history is limited to its commencement and staging rules rather than later textual amendments.
Interaction with later Acts. The text explicitly engages with the Legislation Act 2003 by disapplying its s 12(2) retrospective restriction to regulations made under s 19 of this Act that commence at or after transfer time (s 19(3)). That indicates that subsequent Commonwealth legislation has been considered when drafting the Act, but the text does not contain amending language altering this Act itself.
If legal practitioners require a formal amendment history, a consolidated text or register should be consulted,this Act as provided contains commencement and staging directives but no post‑enactment amendment schedule in the supplied material.
Litigation history
The Act text itself contains no references to case law, and no cases are named in the provisions that were supplied. The Act creates evidentiary presumptions and debt obligations that could generate litigation, but the statutory text does not record any judicial decisions interpreting or applying it.
Practical points on litigation risk
Evidentiary certificates (s 20(2)-(4)). Because certificates that an authorised person issues are “evidence of the matter stated” and documents which appear to be certificates are taken to be such unless the contrary is established, disputes over tax liability arising from sale transactions could centre on challenges to the validity, scope, or provenance of certificates. Those are questions likely to be litigated in civil courts or tax tribunals if challenged, but the Act does not set out any special judicial forum or procedure.
Debt claims (s 8(2)). Unpaid premiums converted to debts payable to the Commonwealth and to Comcare could be enforced through civil recovery mechanisms. That might spawn litigation if a Bank body disputes the quantum or its liability for premiums assessed prior to transfer time.
Regulatory retrospection (s 19). The power to make regulations that may operate with effect from transfer time, combined with the disapplication of the Legislation Act limitation, creates a factual environment where parties could litigate about the validity or fairness of regulations that apply retrospectively. The Act itself does not assign exclusive jurisdiction for such challenges.
Absence of recorded cases in the supplied text
The supplied Act does not name or summarise judicial authorities. For a practitioner requiring litigation history, the next step is to search legal databases (law reports, tribunal decisions, Federal Court, Full‑Federal Court, High Court, administrative tribunals and specialist bodies such as the AAT and Taxation Board) for decisions citing the Commonwealth Bank Sale Act 1995, and for disputes about s 20 certificates, s 8 debts, s 13 notifications, or s 18 tax assumptions. The Act’s text provides the legal hooks that would be litigated but contains no judicial exposition itself.
In short, no litigation history is contained in the Act text provided. Where litigation arises, the likely hot spots are evidentiary weight of certificates, civil recovery of debts for unpaid SRC premiums, and challenges to regulations that purport to operate to transfer time.
Gotchas
This Act contains several drafting and operational features that create practical risks and traps for parties and advisers. The following list focuses on concrete legal pitfalls grounded in the text.
Transfer time versus completion time , distinct triggers (s 3, s 18(2)). The Act defines transfer time as when the Commonwealth ceases to hold shares carrying more than 50% voting rights (s 3). Separately, for tax bad‑debt purposes the Act uses the term completion time, defined as when the Commonwealth ceases to be a shareholder (s 18(2)). These are not necessarily identical moments; a change from majority voting control could occur at a different moment from the final share disposal. Advisers must not conflate the triggers when applying different parts of the Act.
Certificates are prima facie evidence and superficially conclusive (s 20(2)-(4)). An authorised person’s certificate is evidence of exemption, and a document that appears to be a certificate is taken to be one unless the contrary is established. This evidentiary posture shifts the burden to challengers who must establish that a certificate is false or invalid. Parties relying on certificates should preserve originals, chain of custody and authorisations; parties opposing a certificate should prepare to marshal contemporaneous documentary or testimonial evidence to rebut it.
Wide but carved‑out tax exemption (s 20(1), s 20(5)). The exemption covers “stamp duty, or any other tax, fee, duty, levy or charge” in States or Territories, but explicitly excludes fees payable under State/Territory Corporations Law and items specified in a Gazette notice signed by the Minister (s 20(5)). Practitioners must check whether State revenue offices treat a particular impost as a Corporations Law fee or whether the Minister has published a Gazette notice reserving particular charges from the exemption. The statutory definition leaves room for dispute about classification of particular levies.
Regulations may be retrospective to transfer time (s 19(3)). The Act disapplies s 12(2) of the Legislation Act 2003 for regulations under s 19 that commence at or after transfer time. That permits regulations to be made after transfer time with effect back to transfer time, potentially altering the legal consequences of actions carried out in the interim. Parties should monitor both the Federal Register of Legislation and Gazette notices closely for regulations exercising this power.
Licence revocation and fee refund mechanics (s 9-10). Part VIIIA licences under the SRC Act are treated as revoked at transfer time (s 9). Section 10 entitles licence‑fee payers to a refund calculated under a formula printed in the Act, but the Act sets the refund in terms of a formula image and defines “Number of refund days” only. Practitioners must ensure that calculations follow the statutory formula, preserve payment receipts, and note that licence revocation may have operational consequences requiring reapplication for licences under the SRC Act or state occupational health regimes post‑transfer.
Unpaid premiums remain debts payable to Comcare (s 8(2)). Even though the Bank body is not required to pay premiums for the part of the financial year after transfer time (s 8(1)(b)), any amount of premium payable for a period before transfer time that remains unpaid becomes a debt to the Commonwealth payable to Comcare. That shifts fiscal risk onto the Bank body post‑transfer and may expose new private owners to legacy liabilities if not cleared.
CEO reporting obligation is tight and unpenalised on its face (s 13). The chief executive officer of the Bank body must notify the Commission within 28 days after transfer time of salary amounts for the period from 1 July to transfer time. The Act sets the time limit but does not supply a penalty in the supplied text. Practitioners should nonetheless treat the obligation as mandatory and document compliance; absence of an express penalty does not immunise non‑compliance from administrative consequences.
Preservation of DFRDB benefits is subject to the DFRDB Act’s own parts (s 15(3)). The s 15 continuance is expressly subject to Division 3 of Part IX of the DFRDB Act. Advisers must interpret the interplay carefully to avoid overstating entitlement continuity.
Assumption for tax bad‑debt ownership (s 18). For applying Subdivisions 165‑C or 166‑C, the Act requires assuming beneficial ownership of shares remained constant across completion time. That statutory assumption may affect the timing and quantum of bad‑debt deductions; tax advisers must recalibrate opinions and tax returns accordingly.
Gazette notices and amendment (s 11). Notices published before transfer time declaring Bank bodies to be bodies corporate to which the SRC Act applies are treated after transfer time as if they did not contain a reference to the Bank body; however s 11(2) clarifies that this does not prevent amendment or revocation of the notice. There is potential for conflicting instruments in the public record if amendments and revocations are not synchronised.
Narrow scope of persons authorised to issue certificates (s 20(5)). Only the Minister, the Secretary of the Department, and authorised SES employees (authorised in writing by the Secretary) may issue certificates under s 20(2). Third parties relying on certificates should verify authorisation status; relying on an apparent certificate without checking authorisation risks later challenge.
These are practical gotchas that follow directly from the Act’s text and timing rules. Effective transactional planning and compliance requires attention to the statutory triggers and to the administrative mechanics of certificates, refunds, notifications and regulatory instruments.
How to comply
Compliance under this Act divides into a set of concrete administrative, reporting, recordkeeping and legal tasks for the Commonwealth, Bank bodies and transactional counterparties.
For Bank bodies (Commonwealth Bank, CDBA Ltd, Commonwealth Bank Officers Superannuation Corporation, subsidiaries)
Record and confirm transfer/completion dates. Precisely determine and document the transfer time (s 3) and, where relevant, the completion time for share disposal (s 18(2)). Keep certified copies of share registers, disposal instruments and corporate minutes that evidence the exact moment control or shareholding changed.
SRC Act preparations. If the Bank body ceases to be a Commonwealth authority at transfer time, prepare to operate under the SRC Act for pre‑transfer injuries and property loss as if the Bank body remained a Commonwealth authority (s 7). Reconcile outstanding premium calculations for periods before transfer time; arrange payment of any unpaid premiums to Comcare because those unpaid amounts are debts payable to the Commonwealth (s 8(2)).
Licence and fee handling. Treat Part VIIIA licences under the SRC Act as revoked at transfer time (s 9). If licence fees were paid under s 107R for the licence fee year that includes transfer time, calculate the refund entitlement under s 10 using the formula printed in the Act; retain documentation supporting the licence fee payment and the licence fee year start date. Maintain records showing calculation of “Number of refund days” as defined in s 10.
CEO notification obligation. The chief executive officer (however described) must notify the Commission within 28 days after transfer time of salary, wages or pay paid in the period from 1 July to transfer time (s 13). Put in place payroll extracts and a compliance checklist so the notice is prepared, verified and lodged within 28 days. Preserve contemporaneous proof of filing and content.
Tax posture and bad debts. For bad‑debt deduction analysis under Subdivisions 165‑C or 166‑C of the Income Tax Assessment Act 1997, adopt the statutory assumption that beneficial owners after completion time were beneficial owners before completion time when calculating deductible amounts (s 18). Coordinate with tax advisers to adjust tax positions and internally document reliance on s 18 for any disputed deduction.
Internal control for unpaid premiums and debts. If any premiums for periods before transfer time are unpaid, allocate funds and create a payment plan to Comcare promptly because these amounts are debts due to the Commonwealth (s 8(2)).
For the Commonwealth executive and authorised persons
Authorisations in writing. Ensure the Minister, Secretary, and any SES employees intended to issue certificates under s 20 are properly identified and authorised in writing as required by s 20(5). Maintain a register evidencing the written authorisation.
Certificate drafting, control and publication. Draft certificate templates that clearly identify the exempt matter, connect the certificate to the relevant sale or agreement, and are signed by authorised persons. Because certificates are evidence for all purposes and documents that appear to be certificates will be taken as such unless the contrary is established, maintain secure custody and reproducible originals; consider publishing copies to counterparties but protect provenance.
Monitor and publish Gazette notices. If the Minister intends to exclude particular taxes, fees, duties or charges from the exemption by Gazette notice, ensure the notice is signed by the Minister and published in the Gazette as required by s 20(5). Maintain a public register of such notices for the benefit of State/Territory revenue offices and market participants.
Regulation design and timing. If regulations under s 19 are required, design them mindful that s 19(3) disapplies the Legislation Act 2003 s 12(2) limitation; consider whether making a regulation that operates with effect from transfer time is necessary and legally defensible. Where retrospective effect is contemplated, prepare explanatory material sufficient to survive judicial or administrative challenge.
For State and Territory revenue agencies and purchasers/transferees
Request and validate certificates. Before assessing stamp duty or other State/Territory imposts on an instrument, request an authorised certificate under s 20(2). Verify the document appears to be a certificate and, where in doubt, seek direct confirmation from the Department or from the Commonwealth’s legal advisers. Keep copies of certificates as proof that no tax was payable.
Check the exceptions. Confirm whether the transaction involves a Corporations Law fee or a tax specified in a Gazette notice signed by the Minister; if so, the exemption under s 20 will not apply to those specific fees or taxes.
Retain documentary proof for potential challenges. Because certificates are conclusive evidence absent proof to the contrary, purchasers and state revenue offices should retain documentary proof of reliance on any certificate and the identity of the authorised person who signed it.
General recordkeeping and documentation
Preserve contemporaneous corporate minutes, share registers, payment receipts, licence documents, payroll records, Comcare correspondence, authorised person authorisations, certificates, and Gazette notices. These records will be central to meeting notification duties, calculating refunds, defending against challenges to certificates, and proving compliance with premium and licence directions.
Implement compliance checklists keyed to statutory triggers. For example: within 28 days of transfer time file the s 13 notice; if applicable, calculate and claim the s 10 licence‑fee refund; ensure unpaid premiums before transfer time are settled with Comcare; secure any s 20 certificates before lodging instruments with state authorities.
Legal review and tax advice. Obtain specialist legal advice on the application of s 19 regulations if they are made, on the boundaries of the tax exemption (s 20), and on the interpretation of the completion time versus transfer time for specific transactions (s 3, s 18). Tax advisers should review bad‑debt claims in light of s 18’s statutory assumption.
Following these steps will implement the Act’s express duties and preserve rights created by the Act. Because many provisions create administrative effects rather than bespoke criminal penalties, documentation and proactive engagement with the Commonwealth and State/Territory agencies are central to compliance.
Division 1Safety, Rehabilitation and Compensation Act 1988
In this Act, unless the contrary intention appears:
Bank body means:
(a) the Commonwealth Bank, the Commonwealth Development Bank of Australia Limited or the Commonwealth Bank Officers Superannuation Corporation; or
(b) a body corporate that is a subsidiary (as defined in Division 6 of Part 1.2 of the Corporations Law) of the Commonwealth Bank.
Commonwealth Bank means the Commonwealth Bank of Australia.
transfer time means the time when the Commonwealth ceases to have the status of being the holder of shares in the Commonwealth Bank that carry more than 50% of the total voting rights attached to the voting shares in the Commonwealth Bank.
Part 3—Transitional and saving
Division 1—Safety, Rehabilitation and Compensation Act 1988
5 Interpretation
(1) Unless the contrary intention appears, expressions used in this Division that are also used in the SRC Act have the same respective meanings as in that Act.
(2) In this Division:
SRC Act means the Safety, Rehabilitation and Compensation Act 1988.
6 SRC Act continues to apply to Commonwealth Bank etc. for certain purposes
If a Bank body ceases to be a Commonwealth authority for the purposes of the SRC Act at the transfer time, the SRC Act continues to apply in relation to the Bank body to the extent, and in the manner, set out in sections 7 to 11 of this Act.
7 SRC Act continues to apply for previous injuries etc.
(1) The SRC Act continues to apply after the transfer time in relation to:
(a) injuries suffered by employees of the Bank body before the transfer time; and
(b) loss of, or damage to, property incurred by employees of the Bank body before the transfer time;
including employees who have stopped being employees of the Bank body before the transfer time.
(2) For the purposes of subsection (1), the SRC Act continues to apply as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the chief executive officer (however described) of the Bank body continued to be the principal officer of a Commonwealth authority.
8 Payment of premiums
(1) After the transfer time, Division 4A of Part VII of the SRC Act applies to the Bank body as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the Bank body were not required to pay a premium under that Division in respect of the part of a financial year that occurs after the transfer time; and
(c) the following word and paragraph were added at the end of subsection 96H(1) of the SRC Act:
“; or (f) in the case of an authority—the authority is not required to pay a premium under this Division in respect of part of a financial year.”.
(2) If an amount of premium payable by the Bank body in respect of a period before the transfer time remains unpaid, the amount is a debt due to the Commonwealth by the Bank body and is payable to Comcare.
9 Part VIIIA of the SRC Act
Part VIIIA of the SRC Act continues to apply to the Bank body after the transfer time as if any licence granted to the Bank body under that Part were revoked at the transfer time.
10 Refund of licence fee
(1) If the Bank body has paid a licence fee under section 107R of the SRC Act in respect of the licence fee year in which the transfer time occurs, then the Bank body is entitled to be paid a refund of the amount worked out using the following formula:
where:
Number of refund days means the total number of days in the period beginning at the transfer time and ending on the last day of the licence fee year in which the transfer time occurs.
(2) In this section:
licence fee year means the year beginning on the date of commencement of a licence granted under section 107J of the SRC Act and ending on the day before the anniversary of that date.
11 Amendment of declarations
(1) If a notice was published in the Gazette before the transfer time declaring the Bank body to be a body corporate to which the SRC Act applies for the purposes of the definition of Commonwealth authority in subsection 4(1) of the SRC Act, then the notice has effect after the transfer time as if it did not contain a reference to the Bank body.
(2) Subsection (1) does not, by implication, prevent the amendment or revocation of the notice.
12 Section 128A of the SRC Act
Section 128A of the SRC Act continues to apply to the Commonwealth Bank after the transfer time as if the Commonwealth Bank continued to be a prescribed Commonwealth authority for the purposes of that section.
13 Notification of amount of salary etc.
(1) This section applies to a Bank body that was a Commonwealth authority for the purposes of the SRC Act immediately before the transfer time.
(2) The chief executive officer (however described) of the Bank body must notify the Commission, within 28 days after the transfer time, of the amount of salary, wages or pay paid to employees of the Bank body in the period starting on 1 July in the financial year in which the transfer time occurred and ending at the transfer time.
Division 2—Defence Force Retirement and Death Benefits Act 1973
14 Interpretation
In this Division:
DFRDB Act means the Defence Force Retirement and Death Benefits Act 1973.
15 Deferred benefits
(1) This section applies if, immediately before the transfer time, an employee of a Bank body was a person to whom deferred benefits were applicable under section 78 of the DFRDB Act.
(2) For the purposes of Division 3 of Part IX of the DFRDB Act, the employee is taken to continue in public employment, after the transfer time, so long as the employee continues to be employed by a Bank body.
(3) This section is subject to Division 3 of Part IX of the DFRDB Act.
16 Periods of eligible employment
If, immediately before the transfer time, a particular period of employment of a person by a Bank body was a period of eligible employment for the purposes of Division 3 of Part IX of the DFRDB Act, that period of employment continues to be a period of eligible employment for the purposes of that Division.
Division 3—Miscellaneous
17 Saving previous operation of section 109 of the Commonwealth Banks Act
The repeal of section 109 of the Commonwealth Banks Act 1959 does not affect:
(a) the vesting of property in the Commonwealth Bank under that section before the repeal; or
(b) the incurring of liabilities by the Commonwealth Bank under that section before the repeal.
18 Application of bad debt provisions of the Income Tax Assessment Act
(1) In applying Subdivision 165‑C or 166‑C of the Income Tax Assessment Act 1997 to decide whether a Bank body can deduct an amount for a bad debt in the year of income in which the completion time occurred, or in a later year of income, it must be assumed that the persons who beneficially owned the shares in the Commonwealth Bank immediately after the completion time were also the beneficial owners of the shares at all times before the completion time.
(2) In this section:
completion time means the time when the Commonwealth ceases to be a shareholder in the Commonwealth Bank.
19 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) In particular, regulations may be made in relation to matters of a transitional or saving nature arising out of the sale of the Commonwealth’s shares in the Commonwealth Bank, or otherwise arising out of the enactment of this Act.
(3) Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply to regulations that are made under this section and that commence at or after the transfer time.
Part 4—Exemption from certain taxes
20 Exemption from certain State and Territory taxes
(1) No tax is payable under a law of a State or Territory in respect of an exempt matter or anything connected with an exempt matter.
(2) An authorised person may, by signed writing, certify that:
(a) a specified matter or thing is an exempt matter; or
(b) a specified thing was done in connection with a specified exempt matter.
(3) For all purposes and in all proceedings, a certificate under subsection (2) is evidence of the matter stated in the certificate.
(4) A document that appears to be a certificate under subsection (2) is taken to be such a certificate and to have been properly given unless the contrary is established.
(5) In this section:
authorised person means:
(a) the Minister; or
(b) the Secretary of the Department; or
(c) a person who:
(i) is an SES employee, or acting SES employee, in the Department; and
(ii) is authorised in writing by the Secretary of the Department for the purposes of this section.
exempt matter means any of the following:
(a) the sale by the Commonwealth of any of its shares in the Commonwealth Bank (other than a sale of those shares to the Commonwealth Bank);
(b) an agreement relating to a sale that is covered by paragraph (a);
(c) the transfer of any of the Commonwealth’s shares in the Commonwealth Bank to a person other than the Commonwealth Bank;
(d) the receipt of money by the Commonwealth in respect of a sale that is covered by paragraph (a).
tax means stamp duty, or any other tax, fee, duty, levy or charge, but does not include:
(a) a fee payable under the Corporations Law of a State or Territory; or
(b) a tax, fee, duty, levy or charge specified in a notice signed by the Minister and published in the Gazette.
Division 1 Safety, Rehabilitation and Compensation Act 1988
An Act to facilitate the sale of the Commonwealth’s shares in the Commonwealth Bank, and for related purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Commonwealth Bank Sale Act 1995.
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 3, and all the items of the Schedule (except items 1, 12, 16, 17, 21, 22, 23, 26, 27, 31, 37 and 48), commence at the transfer time.
(3) Item 12 of the Schedule commences on a date to be fixed by Proclamation.
(4) Item 22 of the Schedule commences on the first anniversary of the day on which the transfer time occurs.
(5) Item 37 of the Schedule commences at the transfer time or at the beginning of 9 May 1996, whichever is later.
(6) Items 1 and 48 of the Schedule commence on the 10th anniversary of the day on which the transfer time occurs.
3 Interpretation
In this Act, unless the contrary intention appears:
Bank body means:
(a) the Commonwealth Bank, the Commonwealth Development Bank of Australia Limited or the Commonwealth Bank Officers Superannuation Corporation; or
(b) a body corporate that is a subsidiary (as defined in Division 6 of Part 1.2 of the Corporations Law) of the Commonwealth Bank.
Commonwealth Bank means the Commonwealth Bank of Australia.
transfer time means the time when the Commonwealth ceases to have the status of being the holder of shares in the Commonwealth Bank that carry more than 50% of the total voting rights attached to the voting shares in the Commonwealth Bank.
Part 3—Transitional and saving
Division 1—Safety, Rehabilitation and Compensation Act 1988
5 Interpretation
(1) Unless the contrary intention appears, expressions used in this Division that are also used in the SRC Act have the same respective meanings as in that Act.
(2) In this Division:
SRC Act means the Safety, Rehabilitation and Compensation Act 1988.
6 SRC Act continues to apply to Commonwealth Bank etc. for certain purposes
If a Bank body ceases to be a Commonwealth authority for the purposes of the SRC Act at the transfer time, the SRC Act continues to apply in relation to the Bank body to the extent, and in the manner, set out in sections 7 to 11 of this Act.
7 SRC Act continues to apply for previous injuries etc.
(1) The SRC Act continues to apply after the transfer time in relation to:
(a) injuries suffered by employees of the Bank body before the transfer time; and
(b) loss of, or damage to, property incurred by employees of the Bank body before the transfer time;
including employees who have stopped being employees of the Bank body before the transfer time.
(2) For the purposes of subsection (1), the SRC Act continues to apply as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the chief executive officer (however described) of the Bank body continued to be the principal officer of a Commonwealth authority.
8 Payment of premiums
(1) After the transfer time, Division 4A of Part VII of the SRC Act applies to the Bank body as if:
(a) the Bank body continued to be a Commonwealth authority; and
(b) the Bank body were not required to pay a premium under that Division in respect of the part of a financial year that occurs after the transfer time; and
(c) the following word and paragraph were added at the end of subsection 96H(1) of the SRC Act:
“; or (f) in the case of an authority—the authority is not required to pay a premium under this Division in respect of part of a financial year.”.
This is an opening excerpt, not the complete document.