Creates a new "Strategic Reserve" function for the Export Finance and Insurance Corporation (EFIC). EFIC can now engage in activities that secure, or are intended to secure, supplies of "strategic materials" in support of Australia’s national and economic security (new function added at section 7(dh); definition additions in section 3).
Defines key terms. "Strategic material" covers: items on the government’s Critical Minerals List; a list of fuels (including gasoline, diesel, kerosene, crude oil, fuel oil and any other fuel the Minister specifies); and any material vulnerable to supply‑chain disruption (new and amended definitions in subsection 3(1) and s.3(6)). An "SR arrangement" is any arrangement of the kind described in the new SR‑specific provisions (see subsection 3(1) and section 23BA).
Specifies what EFIC may do for the Strategic Reserve. EFIC may insure, guarantee, lend or enter into other arrangements to buy, sell, transport or store strategic materials, or buy/sell rights relating to them (new section 23BA). The Minister may also specify further kinds of arrangements by legislative instrument (s.23BA(3)).
Requires ministerial oversight and ministerial referral. EFIC must refer any application to do an SR activity to the responsible Minister before acting (s.23BA(2); additions to s.25). The Minister can approve or direct EFIC to enter SR arrangements even where EFIC might not otherwise be authorised to do so (s.27(4C)–(4D); s.29(3A)).
The Export Finance and Insurance Corporation Amendment (Strategic Reserve) Act 2026 amends the Export Finance and Insurance Corporation Act 1991 by inserting a new Strategic Reserve function for the Export Finance and Insurance Corporation. Clause 8 of Schedule 1 adds paragraph 7(1)(dh), which authorises EFIC to engage in, encourage and facilitate eligible activities that secure, or are intended to secure, a supply of strategic materials in support of Australia’s national and economic security interests. New section 23BA, inserted after section 23B, permits EFIC to enter into contracts of insurance or indemnity, give guarantees, make loans, or enter into other arrangements (SR arrangements) to buy, sell, transport or store strategic materials, or to buy or sell rights relating to them. Subsection 23BA(4) provides that instruments made under section 105B of the Public Governance, Performance and Accountability Act 2013 do not apply to this function. Part 5 of the EFIC Act is amended so that ministerial approvals and directions under sections 27, 28, 29 and 30 now expressly cover SR arrangements, with the Minister able to approve or direct entry into such arrangements when satisfied it is in the national interest. New section 66AA establishes that the Commonwealth is liable to pay EFIC amounts needed to discharge liabilities under approved or directed SR arrangements, while EFIC must pay net receipts from those arrangements to the Commonwealth. Section 67 is substituted to allow the Minister to determine subsidy principles covering SR arrangements. Section 84A is amended to include the Strategic Reserve function within EFIC’s functions for the purposes of the annual report. Section 90A is inserted to require periodic independent reviews of the Act and instruments, with the first review to be completed before 31 December 2029 and subsequent reviews every five years. Part 2 also inserts new section 48 dealing with remuneration and allowances for committee members and makes consequential changes to sections 54, 56, 84, 87, 88 and 89 to accommodate SR arrangements. Subsection 3(1) is amended to insert definitions of strategic material, SR arrangement, EFIC’s Strategic Reserve function and Resources Minister. The Minister may determine additional fuels by legislative instrument under new subsection 3(6).
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Gives the Minister power to attach conditions. Ministerial approvals or directions that relate to SR arrangements can include conditions about the volume and price of the strategic material and other terms (s.28(d); s.29(5)(d)).
Establishes a Commonwealth financial backstop and receipt flow. If EFIC enters SR arrangements with Ministerial approval or direction, the Act:
requires EFIC to pay receipts from those SR arrangements to the Commonwealth (subject to limited deductions) (s.66AA(2)–(3), (7)); and
makes the Commonwealth liable to pay EFIC amounts needed to discharge EFIC liabilities under the SR arrangements (s.66AA(4)). The Finance Minister can instead approve EFIC borrowing and the Commonwealth assumes a liability to discharge that borrowing (s.66AA(5)–(6)).
Allows subsidies and payment principles to be determined. The Minister may make a legislative instrument setting principles under which the Commonwealth will pay EFIC subsidies in respect of contracts, guarantees, loans and SR arrangements (amended s.67).
Adjusts EFIC governance, publication and disclosure. EFIC must publish notices in the Gazette of contracts/guarantees/loans/SR arrangements entered under ministerial approval or direction, but the notices must not name the parties to contracts, guarantees or SR arrangements (amended s.30). Certain Commonwealth procurement instruments under the PGPA Act do not apply to the Strategic Reserve function (s.23BA(4)).
Adds transparency and review rules. The Minister must commission periodic independent reviews of the Act’s operation and effectiveness (first review due by 31 Dec 2029; recurring every ~5 years) and must table review reports in Parliament (new s.90A).
Who this affects and why it matters
EFIC (the statutory corporation): gains a new operational remit to secure strategic materials and expanded transaction types (insurance, guarantees, loans, buying/selling/storing materials or rights) (s.7(dh); s.23BA).
Ministers (Resources Minister, Finance Minister and the responsible Minister for EFIC approvals/directions): obtain significant decision‑making power — to define fuels, to approve or direct EFIC to act, to attach price/volume conditions, and to set subsidy principles (s.3(6); s.27(4C)–(4D); s.28(d); s.67).
Taxpayers / Commonwealth balance sheet: take on an explicit contingent and, in some cases, actual liability for EFIC’s SR activities (s.66AA(4)–(6)). Receipts from SR arrangements flow to the Commonwealth, not retained by EFIC, except for an administration fee and costs as directed (s.66AA(2), (7)).
Private market participants (traders, storage operators, lenders, insurers, miners, fuel suppliers): may face EFIC as a buyer, seller, financier or guarantor in markets for strategic materials. That introduces a government‑backed counterparty with possible preferential access to finance or contractual backing (s.23BA; s.66AA; s.67).
Official stated purpose and a reality check against mechanics
The instrumentic purpose in parliamentary materials is to "secure supplies of strategic materials in support of national and economic security". Mechanically, the Bill achieves this by: (a) giving EFIC explicit statutory power to transact in physical and contractual rights in strategic materials (s.23BA); (b) allowing ministerial approvals/directions to override normal authorisation limits (s.27(4C)–(4D); s.29(3A)); and (c) placing a Commonwealth financial guarantee/backstop on EFIC’s SR liabilities (s.66AA(4)–(6)).
Trade‑offs and implementation risks to watch (linked to the specific provisions):
Fiscal risk: the Commonwealth becomes liable for EFIC’s SR losses for Minister‑approved/directed SR arrangements (s.66AA(4)). That is a contingent liability that may become cash cost. The Finance Minister can convert the liability into Commonwealth‑backed borrowing (s.66AA(5)–(6)), but that still exposes the budget to interest/costs.
Market effects: EFIC buying, storing or financing strategic materials (s.23BA(1)(d) and (e)) can crowd out private suppliers or alter prices, because EFIC has government backing and access to subsidies (s.67) and receipts flow to the Commonwealth (s.66AA(2)). The Act permits Ministerial conditions on price and volume (s.28(d); s.29(5)(d)), which can directly affect market transactions.
Concentrated benefits and rent‑seeking risk: parties that secure EFIC SR contracts gain favourable counterparty security and potential pricing/volume guarantees; costs are borne broadly by taxpayers via the Commonwealth liability framework (s.66AA).
EFIC’s operational independence is reduced: the Minister can require EFIC to enter SR arrangements (s.29(3A)) and can approve arrangements even if EFIC is not otherwise authorised to do them (s.27(4C)–(4D)); this increases political discretion over commercial decisions.
Administrative and compliance burden: new referral and approval pathways (s.23BA(2); s.25 additions), publication rules (s.30), and the requirement for periodic independent reviews (s.90A) create extra procedural steps and reporting obligations.
Implementation complexity: valuing and managing physical stock, contingent liabilities, storage/transport logistics, and coordinating with other procurement or emergency frameworks (PGPA procurement rules are explicitly excluded for SR activities — s.23BA(4)).
Who pays, who decides, and what behaviour changes
Who pays: taxpayers/the Commonwealth are exposed to liabilities arising from Minister‑approved or directed SR arrangements and will receive receipts from SR arrangements (s.66AA(2), (4)). EFIC may also be paid subsidies under principles set by the Minister (s.67).
Who decides: the responsible Minister(s) exercise decisive control — defining fuels (s.3(6)), approving/direction powers over EFIC SR activities (s.27, s.29), determining subsidy principles (s.67) and directing receipt flows via the Finance Minister (s.66AA(2)).
What behaviour changes: EFIC shifts from primarily export finance/insurance activities to also conducting or facilitating physical market activity in strategic materials (buying/selling/storing and financing). Private firms may respond by bidding for EFIC contracts, seeking EFIC guarantees or competing with EFIC‑sponsored stockpiles.
Key sections for quick reference: definitions and ministerial powers (s.3; s.3(6)); Strategic Reserve powers (s.23BA); referral and approval/direction rules (s.25; s.27; s.29); publishing/confidentiality (s.30); Commonwealth backstop and receipt rules (s.66AA); subsidy principles (s.67); periodic reviews (s.90A).
Main concepts
The central concept is EFIC’s Strategic Reserve function, defined in new paragraph 7(1)(dh) as activities that secure or are intended to secure supplies of strategic materials for national and economic security. Strategic material is defined in subsection 3(1) to include items on the Critical Minerals List published by the Department administered by the Resources Minister, specific fuels (gasoline, diesel, kerosene, crude oil, fuel oil and any further fuels determined by legislative instrument), and any material, good or thing that may be imported or produced in Australia and is experiencing or vulnerable to supply chain disruptions. SR arrangement is defined to cover arrangements under new paragraphs 23BA(1)(d) or (e), including third-party facilitation of buying, selling, transporting or storing strategic materials or rights relating to them. National interest is the test applied by the Minister when giving approvals under new subsections 27(4C) and 27(4D) or directions under section 29. The Commonwealth assumes ultimate financial responsibility for liabilities arising from approved or directed SR arrangements under section 66AA, while receiving net receipts from those arrangements. Procurement rules under the Public Governance, Performance and Accountability Act 2013 are expressly excluded from applying to the Strategic Reserve function. Gazette publication of arrangements is required under amended section 30, but names of parties must not be stated. Periodic independent reviews under new section 90A must examine the scope of the Act, EFIC’s functions and governance, and whether further amendments are needed.
Who it affects
EFIC is directly affected as the entity authorised to perform the new Strategic Reserve function and to enter into SR arrangements. The Minister responsible for the EFIC Act gains expanded powers to approve or direct particular SR arrangements and to determine subsidy principles and additional fuels. The Finance Minister gains powers to direct payment of receipts and to approve borrowing in place of direct Commonwealth payment under section 66AA. The Resources Minister’s published Critical Minerals List becomes a statutory reference point for the definition of strategic material. Australian businesses and entities involved in the production, import, export, transport or storage of critical minerals, fuels or other supply-chain-vulnerable goods may seek EFIC support through SR arrangements. Third parties may be engaged by EFIC under paragraph 23BA(1)(d) to perform buying, selling, transport or storage activities. Government departments and agencies involved in national security, economic security, resources policy and supply chain resilience will interact with EFIC’s new activities. Parliamentary oversight is affected through the requirement to table review reports under subsection 90A(6) and through existing scrutiny of legislative instruments. No specific classes of individuals or small businesses are singled out; the framework is available for any eligible activity meeting the national interest test.
What people will want to know
People will want to know how an entity applies for an SR arrangement. Applications are made to EFIC and, under section 25, must be referred to the Minister unless a direction under section 26 prevents referral. The Minister may approve the arrangement if satisfied it is in the national interest. People will want to know which materials qualify. The definition covers the current Critical Minerals List, the listed fuels, and any goods experiencing or vulnerable to supply chain disruption; the Minister can add fuels by legislative instrument. People will want to know who bears financial risk. Under section 66AA the Commonwealth is liable to meet EFIC’s liabilities on approved or directed arrangements, while EFIC pays net receipts to the Commonwealth after deducting an administration fee and costs. People will want to know about transparency. EFIC must publish a notice in the Gazette giving particulars of the nature and extent of each SR arrangement, but names of parties must not be included. People will want to know about future scrutiny. The first independent review of the Act and instruments must be completed before 31 December 2029, with subsequent reviews every five years, and reports must be tabled in Parliament. People will want to know whether existing EFIC commercial rules apply. Subsection 8(7) provides that the general prohibition on EFIC performing certain activities does not apply to the Strategic Reserve function, and procurement rules are excluded.
Status and what happens next
The Act received royal assent on 1 April 2026 as Act No. 21 of 2026. Sections 1 to 3 and anything not covered by the commencement table commenced on assent. Schedule 1 commenced on 2 April 2026. The Act is therefore fully in force. EFIC may now receive applications for SR arrangements and, once referred to and approved or directed by the Minister, may enter into contracts, guarantees, loans or other arrangements to secure strategic materials. The Minister may make legislative instruments determining additional fuels or kinds of arrangements. The first periodic review under section 90A must be completed before 31 December 2029. EFIC must publish Gazette notices for each SR arrangement entered into under the new provisions. No further parliamentary stages are required. An electronic version of the Act is available on the Federal Register of Legislation.
Powers, duties and rights created
EFIC gains the power under section 23BA to enter into contracts of insurance or indemnity, give guarantees, make loans, and enter into other SR arrangements for the purposes of the Strategic Reserve function, subject to ministerial referral under section 25. The Minister gains the power under subsections 27(4C) and 27(4D) to approve loans and SR arrangements when satisfied it is in the national interest, and under section 29 to direct EFIC to enter into specified classes of SR arrangements. The Minister may impose conditions relating to volume, price and other terms under amended section 28. The Finance Minister may direct EFIC to pay receipts from SR arrangements to the Commonwealth and may approve borrowing instead of direct payment under section 66AA. EFIC has a duty under subsection 66AA(2) to pay net receipts from applicable SR arrangements to the Commonwealth and may deduct an administration fee and costs. The Commonwealth has the right under subsection 66AA(4) to have its liability to EFIC replaced by a liability to meet borrowing costs if the Finance Minister approves borrowing. EFIC and committee members gain rights to remuneration and allowances determined by the Remuneration Tribunal or by EFIC under new section 48. Any person may access the independent review reports once tabled in Parliament under subsection 90A(6). EFIC has the right to a subsidy determined under the principles in substituted section 67.
Money, penalties and enforcement
No new criminal penalties or civil penalty provisions are created by the Act. Financial consequences are governed by section 66AA: EFIC must pay all net receipts from national-interest SR arrangements to the Commonwealth, calculated by deducting amounts paid or payable by EFIC from amounts received. The Commonwealth is liable to pay EFIC the amount needed to discharge liabilities under those arrangements, although the Finance Minister may instead direct EFIC to borrow the amount, with the Commonwealth then liable for repayment and interest. EFIC may deduct an administration fee and borrowing costs before paying receipts to the Commonwealth. Amended section 30 requires EFIC to publish a Gazette notice of each SR arrangement, including particulars of its nature and extent, but without naming parties. Existing provisions on EFIC’s accounts, audits and annual reports continue to apply, with the Strategic Reserve function now included under section 84A. Enforcement of EFIC’s obligations occurs through the existing governance framework of the EFIC Act, including ministerial directions and parliamentary tabling of review reports. No specific enforcement mechanisms or infringement notices are introduced for the new function.
Pressure points and controversies
The Act exempts the Strategic Reserve function from instruments made under section 105B of the Public Governance, Performance and Accountability Act 2013 relating to procurement, creating a policy trade-off between operational flexibility for national security purposes and standard Commonwealth procurement safeguards. Ministerial power to approve or direct particular SR arrangements on national interest grounds, including conditions on volume and price, shifts decision-making from EFIC’s board to the executive, raising questions about the balance between commercial independence and government control. The requirement to publish anonymised Gazette notices balances transparency with protection of commercial parties. The broad definition of strategic material, which includes any good vulnerable to supply chain disruption and allows the Minister to add fuels by legislative instrument, gives significant discretion that could expand the function over time. New section 90A mandates periodic independent reviews examining scope, functions and governance, providing a statutory mechanism to assess whether the framework remains appropriate. Proposed amendments were moved in both Houses by members of the opposition, the Australian Greens and One Nation, but the Act as passed contains no additional schedules of amendments. The framework creates a Commonwealth financial backstop for liabilities while requiring net receipts to be returned to consolidated revenue, presenting a fiscal trade-off between contingent risk and potential returns.
What changes if it passes
Now that the Act has passed and commenced, EFIC possesses a statutory function and explicit powers to facilitate the securing of strategic materials through insurance, guarantees, loans and other arrangements, backed by Commonwealth assumption of liability where the Minister has acted on national interest grounds. The previous restriction in subsection 23(5) and subsection 23A(4) that prevented certain activities no longer applies to the Strategic Reserve function. EFIC can engage third parties to buy, sell, transport or store strategic materials without being bound by standard procurement rules. The Minister can direct EFIC to enter into classes of SR arrangements and can set conditions on volume, price and other terms. Net receipts from these arrangements flow to the Commonwealth after deduction of fees and costs, while the Commonwealth stands behind liabilities. A statutory cycle of independent reviews, beginning before the end of 2029, will examine whether the Act’s scope and EFIC’s governance require further amendment. Entities dealing in critical minerals, fuels or supply-chain-vulnerable goods now have a new avenue for government-supported arrangements aimed at national and economic security. Gazette publication of arrangement details, without party names, becomes mandatory. Remuneration arrangements for EFIC committees are clarified for both board and non-board members.
Social post angles
Australia now has a dedicated Strategic Reserve function inside EFIC to secure critical minerals and fuels. The new powers allow government-backed arrangements for supply security. EFIC can buy, sell, store or transport strategic materials under ministerial national interest approvals. The Commonwealth will meet liabilities on approved deals but receives net receipts from the arrangements. A broad definition lets the Minister add fuels and covers any goods facing supply chain risk. First independent review of the whole framework must finish before 31 December 2029. Gazette notices will disclose arrangement details without naming the parties involved. EFIC committees gain clearer remuneration rules for members who are also board directors or external experts.
CW - Opposition [sheet 3760]
CANAVAN, Sen Matthew
Schedules of amendments
No documents at present
Notes
An electronic version of this Act is available on the Federal Register of Legislation (www.legislation.gov.au)
Export Finance and Insurance Corporation Amendment (Strategic Reserve) Act 2026
No. 21, 2026
An Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes
Contents
1 Short title 1
2 Commencement 2
3 Schedules 2
Schedule 1,Amendments 3
Part 1,Strategic Reserve 3
Export Finance and Insurance Corporation Act 1991 3
Part 2,Other amendments 13
Export Finance and Insurance Corporation Act 1991 13
Export Finance and Insurance Corporation Amendment (Strategic Reserve) Act 2026
No. 21, 2026
An Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes
[Assented to 1 April 2026]
The Parliament of Australia enacts:
1 Short title
This Act is the Export Finance and Insurance Corporation Amendment (Strategic Reserve) Act 2026.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
Sections 1 to 3 and anything in this Act not elsewhere covered by this table
The day this Act receives the Royal Assent.
1 April 2026
Schedule 1
The day after this Act receives the Royal Assent.
2 April 2026
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1,Amendments
Part 1,Strategic Reserve
Export Finance and Insurance Corporation Act 1991
1 Subsection 3(1)
Insert:
EFIC’s Strategic Reserve function means the function set out in paragraph 7(1)(dh).
Resources Minister means the Minister administering the Offshore Minerals Act 1994.
SR arrangement means an arrangement of a kind referred to in paragraph 23BA(1)(d) or (e).
Note: Paragraphs 23BA(1)(a), (b) and (c) refer to other things that are not covered by this definition.
strategic material means:
(a) a thing specified in the list titled Critical Minerals List published by the Department administered by the Resources Minister, as existing from time to time; or
(b) each of the following fuels:
(i) gasoline;
(ii) diesel;
(iii) kerosene;
(iv) crude oil;
(v) fuel oil;
(vi) a fuel of a kind determined under subsection (6); or
(c) any material, good, or other thing, of a kind that:
(i) may be imported into Australia, or could be produced in Australia; and
(ii) is experiencing, or is vulnerable to experiencing, supply chain disruptions.
Paragraphs (a) and (b) of this definition do not limit paragraph (c) of this definition.
Note: In relation to paragraph (a), the Critical Minerals List could in 2026 be viewed on the Department’s website (https://www.industry.gov.au).
2 At the end of section 3
Add:
Minister may determine fuels that are strategic materials
(6) The Minister may, by legislative instrument, determine a kind of fuel for the purposes of subparagraph (b)(vi) of the definition of strategic material in subsection (1).
3 Paragraph 3B(m)
Omit “business.”, substitute “business;”.
4 At the end of section 3B
Add:
(n) an activity with respect to bounties on the production or export of goods;
(o) an activity with respect to matters incidental to the execution of any of the legislative powers of the Parliament or the executive power of the Commonwealth.
5 Section 3C (heading)
After “products”, insert “, or SR arrangements,”.
6 Subsection 3C(1)
Omit “or provides a financial service or product,”, substitute “provides a financial service or product, or enters into an SR arrangement,”.
7 Subsection 3C(2)
Omit “or the financial service or product is provided,”, substitute “the financial service or product is provided, or the SR arrangement is entered into,”.
8 After subsection 7(1)(dg)
Insert:
(dh) to engage in, encourage and facilitate eligible activities that secure, or are intended to secure, a supply of strategic materials in support of Australia’s national and economic security interests;
9 At the end of section 7
Add:
(4) In performing EFIC’s Strategic Reserve function, different strategic materials may be dealt with separately.
10 At the end of section 8
Add:
EFIC’s Strategic Reserve function
(7) Subsection (1) and subparagraph (2)(b)(i) do not apply in relation to EFIC’s Strategic Reserve function.
11 Paragraphs 9(5)(a) and (b)
Repeal the paragraphs, substitute:
(a) requiring any Minister’s approval of any of the following:
(i) the entry by EFIC into a particular contract;
(ii) the giving by EFIC of a particular guarantee;
(iii) the making by EFIC of a particular loan;
(iv) the entry by EFIC into a particular SR arrangement; or
(b) giving any Minister power to determine that EFIC is or is not to do any of the following:
(i) enter into a particular contract;
(ii) give a particular guarantee;
(iii) make a particular loan;
(iv) enter into a particular SR arrangement.
12 Subsection 23(5)
Repeal the subsection (including the note).
13 Subsection 23A(4)
Repeal the subsection (including the note).
14 After section 23B
Insert:
23BA Arrangements and other things to support EFIC’s Strategic Reserve function
(1) EFIC may do one or more of the following things for the purposes of EFIC’s Strategic Reserve function:
(a) enter into a contract of insurance or indemnity;
(b) give a guarantee;
(c) make a loan;
(d) enter into an arrangement of another kind to facilitate any of the following things, including an arrangement for a third party to do such a thing:
(i) buy, sell, transport or store a strategic material;
(ii) buy or sell rights to, or relating to, a strategic material;
(e) enter into an arrangement of any other kind specified in an instrument under subsection (3).
Note: A reference to a loan or to the lending of money includes a reference to the provision of finance, the provision of a financial accommodation or the making of equity investments, in any form: see subsection 3(2).
(2) However, EFIC must not do a thing under this section unless an application for the doing of the thing has been referred to the Minister under section 25.
Note: A direction under section 26 may prevent such applications from being referred to the Minister. EFIC cannot do a thing under this section in those circumstances.
(3) The Minister may, by legislative instrument, make a determination specifying a kind of arrangement for the purposes of paragraph (1)(e).
Certain instruments relating to Commonwealth procurement not applicable
(4) An instrument made under section 105B of the Public Governance, Performance and Accountability Act 2013 does not apply in relation to EFIC’s Strategic Reserve function.
Note: Section 105B of the Public Governance, Performance and Accountability Act 2013 provides for the making of instruments relating to procurement.
15 Paragraph 25(1)(c)
Omit “Part 4.”, substitute “Part 4; or”.
16 At the end of subsection 25(1)
Add:
(d) enter into an SR arrangement.
Note: For SR arrangement, see subsection 3(1).
17 At the end of section 25
Add:
(4) An application relating to a proposed SR arrangement may be referred to the Minister whether or not EFIC is authorised to enter into the arrangement on the terms and conditions proposed.
18 After subsection 27(4B)
Insert:
(4C) The Minister may approve of EFIC making a loan under section 23BA if the Minister is satisfied that it is in the national interest that EFIC make the loan.
Note: The provision of loans includes providing finance, providing a financial accommodation or making an equity investment, in any form: see subsection 3(2).
(4D) The Minister may approve of EFIC entering into an SR arrangement if the Minister is satisfied that it is in the national interest that EFIC enter into the arrangement.
19 Subsections 27(8) and (9)
Omit “or make a loan”, substitute “make a loan, or enter into an SR arrangement,”.
20 Paragraph 28(c)
Omit “given.”, substitute “given; and”.
21 At the end of section 28
Add:
(d) where the approval relates to an SR arrangement:
(i) conditions relating to the volume and price of the strategic material to which the arrangement relates; and
(ii) conditions relating to any other terms and conditions of the arrangement.
22 After subsection 29(3)
Insert:
(3A) The Minister may direct that whenever EFIC receives an application for EFIC to enter into an SR arrangement included in a specified class of SR arrangements, EFIC is to enter into the arrangement, whether or not EFIC would, apart from this section, be authorised to enter into the arrangement on the terms and conditions proposed.
23 Paragraph 29(5)(c)
Omit “given.”, substitute “given; or”.
24 At the end of subsection 29(5)
Add:
(d) where the direction relates to an SR arrangement:
(i) the volume and price of the strategic material to which the arrangement relates; and
(ii) any other terms and conditions of the arrangement.
25 Subsections 29(8) and (9)
Omit “or make a loan,”, substitute “, make a loan, or enter into an SR arrangement,”.
26 Subsection 30(1)
Repeal the subsection, substitute:
(1) If, in accordance with an approval or direction under this Part, EFIC:
(a) enters into a contract; or
(b) gives a guarantee; or
(c) makes a loan; or
(d) enters into an SR arrangement;
EFIC must cause notice of the contract, guarantee, loan or arrangement to be published in the Gazette.
27 Paragraph 30(2)(c)
Omit “lent.”, substitute “lent;”.
28 At the end of subsection 30(2)
Add:
(d) in the case of an SR arrangement,particulars of the nature and extent of the arrangement.
29 Subsection 30(4)
Repeal the subsection, substitute:
(4) A notice under subsection (1) must not state the name of:
(a) any of the parties to a contract; or
(b) any person in respect of whom a guarantee has been given by EFIC; or
(c) any of the parties to an SR arrangement.
30 Paragraph 54(9)(c)
Omit “liability.”, substitute “liability; and”.
31 At the end of subsection 54(9)
Add:
(d) an expected loss by, or liability of, EFIC under or in relation to an SR arrangement is to be ignored to the extent that the Commonwealth would be liable to pay an amount to EFIC under section 66AA in relation to the loss or liability.
32 Paragraph 56(2)(c)
Omit “matter.”, substitute “matter; and”.
33 At the end of subsection 56(2)
Add:
(d) a likely liability of EFIC in relation to an SR arrangement is to be ignored to the extent that the Commonwealth would be liable to pay an amount to EFIC under section 66AA in relation to the same matter.
34 After section 66
Insert:
66AA SR arrangements in the national interest
(1) This section applies to an SR arrangement if the arrangement is entered into by EFIC in accordance with an approval or direction under Part 5.
(2) Subject to subsection (7), EFIC is required to pay to the Commonwealth, from time to time, as directed by the Finance Minister, all of the receipts by EFIC from SR arrangements to which this section applies.
(3) For the purposes of subsection (2), the receipts from an SR arrangement are calculated by deducting from the total of the amounts received by EFIC in relation to the arrangement all amounts paid or payable by EFIC in relation to the arrangement.
(4) Subject to subsection (6), the Commonwealth is liable to pay to EFIC the amount needed to discharge any liability of EFIC under an SR arrangement to which this section applies.
(5) Instead of the Commonwealth paying the amount due under subsection (4) when the liability of the Commonwealth arises, the Minister may, on behalf of the Commonwealth, direct EFIC to seek approval under section 59 for EFIC to borrow an amount equal to the amount due by the Commonwealth.
(6) If the Finance Minister gives approval under section 59, the Commonwealth’s liability under subsection (4) is replaced by a liability to pay EFIC the amount needed to discharge the borrowing by EFIC and to pay all costs (including interest) incurred by EFIC in connection with the borrowing.
(7) EFIC may deduct from any amount that it is required to pay under subsection (2) in relation to SR arrangements to which this section applies:
(a) an administration fee, to be ascertained in such manner as the Finance Minister directs in writing; and
(b) any costs (including interest) incurred by EFIC in connection with the arrangements.
35 Section 67
Repeal the section, substitute:
67 Subsidy to EFIC
(1) The Minister may, by legislative instrument, determine principles according to which the Commonwealth will pay to EFIC a subsidy in respect of the following:
(a) contracts entered into by EFIC;
(b) guarantees given by EFIC;
(c) loans made by EFIC;
(d) SR arrangements entered into by EFIC.
(2) Where a thing mentioned in subsection (1) has been done by EFIC, EFIC is entitled to be paid by the Commonwealth such amount (if any) by way of subsidy as is payable according to a determination in force under subsection (1).
36 Paragraph 84A(1)(b)
Omit “function.”, substitute “function;”.
37 At the end of subsection 84A(1)
Add:
(c) EFIC’s Strategic Reserve function.
38 Paragraph 87(6)(c)
Omit “Act.”, substitute “Act; or”.
39 At the end of subsection 87(6)
Add:
(d) an SR arrangement entered into, or proposed to be entered into, under this Act.
40 Subsection 88(1) (paragraph (c) of the definition of application)
Omit “EFIC.”, substitute “EFIC; or”.
41 Subsection 88(1) (at the end of the definition of application)
Add:
(d) an application to EFIC to enter into an SR arrangement.
42 Subsection 88(1) (paragraph (c) of the definition of claim)
Omit “EFIC.”, substitute “EFIC; or”.
43 Subsection 88(1) (at the end of the definition of claim)
Add:
(d) a claim under an SR arrangement entered into by EFIC.
A determination that was in force under subsection 67(1) of the Export Finance and Insurance Corporation Act 1991 immediately before the commencement of this item continues in force (and may be dealt with) on and after that commencement as if it had been made under subsection 67(1) of that Act as substituted by this Part.
Part 2,Other amendments
Export Finance and Insurance Corporation Act 1991
47 After section 47
Insert:
48 Remuneration and allowances for committee members
Committee members who are also Board members
(1) If:
(a) a committee member is also a Board member; and
(b) the Board decides that the committee member is to be remunerated in relation to the member’s committee membership;
the committee member is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the committee member is to be paid the remuneration that is determined under subsection (4).
(2) A committee member who is a Board member is to be paid the allowances that are determined under subsection (4).
(3) Subsections (1) and (2) have effect subject to the Remuneration Tribunal Act 1973.
(4) The Minister may, by legislative instrument, determine:
(a) remuneration for the purposes of subsection (1); and
(b) allowances for the purposes of subsection (2).
Committee members who are not Board members
(5) If the Board decides that a committee member other than a Board member is to be remunerated, the committee member is to be paid the remuneration and allowances determined by EFIC in writing.
48 Subsection 84(1)
Omit “sections 48, 54, 71 and 72”, substitute “sections 54, 71 and 72”.
49 After section 90
Insert:
90A Periodic reviews of the operation and effectiveness of this Act
(1) The Minister must cause periodic independent reviews to be conducted in relation to the operation and effectiveness of:
(a) this Act; and
(b) any instruments made under this Act.
(2) Without limiting subsection (1), the review must include consideration of:
(a) the scope of this Act; and
(b) EFIC’s functions; and
(c) EFIC’s governance; and
(d) whether amendments to this Act, including to expand the scope of this Act, are necessary or desirable to improve the operation or effectiveness of this Act.
Timing of reviews
(3) The first review must be completed before 31 December 2029.
(4) Each later review must be completed before the end of 5 years after the completion of the previous review.
Minister to be given report of review
(5) The persons conducting each review must give the Minister a written report of the review as soon as practicable after the review is completed. The report must not include information that is commercially sensitive.
Minister to table copy of report of review
(6) The Minister must cause a copy of the report of each review to be tabled in each House of the Parliament within 15 sitting days of that House after the Minister receives the report.