Part IIIAA—The Monetary Policy Board

An Act relating to the Reserve Bank of Australia, and for other purposes ## Part I—Preliminary #### 1 Short title This Act may be cited as the Reserve Bank Act 1959. #### 2 Commencement This Act shall come into operation on a date to be fixed by Proclamation. #### 4 Repeal and saving (1) The following Acts are repealed: Commonwealth Bank Act 1945; Commonwealth Bank Act 1948; Commonwealth Bank Act 1951; Commonwealth Bank Act 1953. (2) Subsection (1) does not affect the operation of any amendment of an Act made by an Act referred to in that subsection or any provision for the citation of an Act as so amended. #### 5 Interpretation (1) In this Act, unless the contrary intention appears: > ADI (authorised deposit‑taking institution) means a body corporate that is an ADI for the purposes of the Banking Act 1959. > APRA means the Australian Prudential Regulation Authority. > APRA member has the same meaning as in the Australian Prudential Regulation Authority Act 1998. > APRA staff member has the same meaning as in the Australian Prudential Regulation Authority Act 1998. > Australia includes the Territories. > Australian note means a note issued under any of the following Commonwealth laws as in force at any time: (a) the Australian Notes Act 1910; (b) Part VII of the Commonwealth Bank Act 1911; (c) Part VI of the Commonwealth Bank Act 1945; (d) Part V of this Act. > Bank’s PSB member has the meaning given by paragraph 25A(b). > Chair: (a) of the Governance Board—has the meaning given by paragraph 25NC(1)(a); or (b) of the Monetary Policy Board—has the meaning given by subsection 25AC(1); or (c) of the Payments System Board—has the meaning given by section 25C. > Deputy Chair: (a) of the Governance Board—has the meaning given by paragraph 25NC(1)(b); or (b) of the Monetary Policy Board—has the meaning given by subsection 25AC(2); or (c) of the Payments System Board—has the meaning given by subsection 25D(1). > Deputy Governor means the Deputy Governor of the Bank. > external Governance Board member has the meaning given by paragraph 25NA(d). > external Monetary Policy Board member has the meaning given by paragraph 25AA(d). > external Payments System Board member has the meaning given by paragraph 25A(d). > Governance Board means the Governance Board of the Reserve Bank. > Monetary Policy Board means the Monetary Policy Board of the Reserve Bank. > overarching objective has the meaning given by subsection 8AA(1). > Payments System Board means the Payments System Board of the Reserve Bank. > payments system policy means policy for the purposes of the Bank’s functions or powers under: (a) the Payment Systems (Regulation) Act 1998; and (b) the Payment Systems and Netting Act 1998; and (c) Parts 7.3 and 7.3B of the Corporations Act 2001. > repealed Act means an Act repealed by this Act or by the Commonwealth Bank Act 1945. > Secretary means the Secretary of the Department. > senior RBS member has the meaning given by paragraph 25NA(c). > staff member of the Reserve Bank Service means: (a) a person appointed by the Bank under section 67; or (b) a person engaged by the Bank under section 68. > statutory office means the office of Governor or Deputy Governor. > the Bank or the Reserve Bank means the Reserve Bank of Australia. > the former Commonwealth Bank of Australia means the Commonwealth Bank of Australia established under the Commonwealth Bank Act 1911 and continued in existence under the Commonwealth Bank Act 1945. > the Governor means the Governor of the Bank. > Treasurer means the Minister administering this Act. (2) Unless the contrary intention appears, a reference in this Act to an Act includes a reference to regulations made under that Act. #### 6 Application to Territories Subject to section 6A, this Act extends to all the Territories. #### 6A Cessation of application to Territory The Treasurer may, by legislative instrument, declare that, on a date specified in the instrument, this Act shall cease to extend to an external Territory specified in the instrument, and, on and after the date specified in such an instrument, this Act does not extend to the Territory so specified and a reference in this Act, other than this section, to a Territory does not include a reference to the Territory so specified. #### 6B Application of Criminal Code The Criminal Code applies to all offences against this Act. ## Part II—Constitution, policy and management of the Reserve Bank ### Division 1—Constitution of the Reserve Bank #### Subdivision A—The Reserve Bank of Australia #### 7 The Reserve Bank of Australia Notwithstanding the repeal effected by subsection 4(1), the body corporate established under the Commonwealth Bank Act 1911 and continued in existence under the Commonwealth Bank Act 1945, under the name Commonwealth Bank of Australia: (a) is preserved and continues in existence as a body corporate under and subject to the provisions of this Act, under the name Reserve Bank of Australia, but so that the corporate identity of the body corporate shall not be affected; and (b) shall have a seal; and (c) is capable of acquiring, holding and disposing of real and personal property and of suing and being sued. > Note: Subject to this Part, the Public Governance, Performance and Accountability Act 2013 applies to the Bank. That Act deals with matters relating to corporate Commonwealth entities, including reporting and the use and management of public resources. #### Subdivision B—Application of the Public Governance, Performance and Accountability Act 2013 #### 7A Accountable authority of the Bank For the purposes of the Public Governance, Performance and Accountability Act 2013, the Governance Board is the accountable authority of the Bank. #### 7B Provisions of the Public Governance, Performance and Accountability Act 2013 that do not apply The following sections of the Public Governance, Performance and Accountability Act 2013 do not apply in relation to the Bank: (a) section 36 (which deals with budget estimates); (b) section 54 (which deals with banking by corporate Commonwealth entities); (c) section 55 (which deals with banking of relevant money by Ministers and officials); (d) section 59 (which deals with investment by corporate Commonwealth entities). #### 7C Officials of the Bank and general duties of officials (1) For the purposes of the Public Governance, Performance and Accountability Act 2013, the following members of the Bank’s Boards are officials (within the meaning of that Act) of the Bank: (a) the Governor; (b) the Deputy Governor; (c) the senior RBS member; (d) each external Governance Board member; (e) if the Bank’s PSB member is a staff member of the Reserve Bank Service—the Bank’s PSB member. > Note: Paragraphs (a) to (d) cover all of the Governance Board members. (2) A member of the Monetary Policy Board or the Payments System Board who is not covered by subsection (1) is taken, for the purposes of the Public Governance, Performance and Accountability Act 2013, not to be an official (within the meaning of that Act) of the Bank. Provisions about general duties of officials still apply to members who are not officials (3) Subdivision A of Division 3 of Part 2‑2 of the Public Governance, Performance and Accountability Act 2013 (which deals with general duties of officials) applies in relation to a member of the Monetary Policy Board or the Payments System Board who is not covered by subsection (1) as if the member were an official (within the meaning of that Act) of the Bank. > Note: Section 29 of the Public Governance, Performance and Accountability Act 2013 (which is in Subdivision A of Division 3 of Part 2‑2 of that Act, and deals with the duty to disclose interests) is affected by Subdivision C of this Division. #### Subdivision C—Duty of Board members to disclose interests #### 7D Disclosure of interests—key decisions of the Monetary Policy Board (1) This section applies if: (a) either or both of the following matters: (i) the monetary policy of the Bank; (ii) the policy of the Bank (other than the payments system policy of the Bank) for contributing to the stability of Australia’s financial system; are being considered at a meeting of the Monetary Policy Board; and (b) a member of the Board has a material personal interest that relates to the matter; and (c) within the previous 12 months the member has disclosed, in writing, the member’s interest to the Treasurer (whether the disclosure occurs before or after this section commences); and (d) there has been no substantial change in the nature or extent of the interest since the disclosure. (2) The member may do either or both of the following: (a) be present during any consideration by the Board of the matter at the meeting; (b) vote on the matter at the meeting. (3) The member is taken to have complied with: (a) section 29 of the Public Governance, Performance and Accountability Act 2013; and (b) any rules made for the purposes of that section; in relation to the member’s consideration of the matter at the meeting of the Board. (4) This section applies: (a) despite section 7A and subsections 7C(1) and (3) of this Act; and (b) instead of any rules made for the purposes of section 29 of the Public Governance, Performance and Accountability Act 2013. #### 7E Disclosure of interests—other decisions of the Monetary Policy Board and decisions of the Payments System Board (1) This section applies if: (a) a member of the Monetary Policy Board has a material personal interest that relates to a matter being considered at a meeting of the Monetary Policy Board and section 7D does not apply; or (b) a member of the Payments System Board has a material personal interest that relates to a matter being considered at a meeting of the Payments System Board. (2) The following provisions: (a) section 29 of the Public Governance, Performance and Accountability Act 2013; (b) sections 12, 14, 15 and 16D of the Public Governance, Performance and Accountability Rule 2014; apply to the member in relation to the member’s consideration of the matter at the meeting of the relevant Board as if: (c) the relevant Board were the accountable authority of the Bank; and (d) the member and each other member of the relevant Board were the members of the accountable authority; and (e) instead of referring to a material personal interest that relates to the affairs of the Bank, section 29 of that Act, and sections 14 and 15 of that Rule, referred to a material personal interest that relates to the affairs of the relevant Board. (3) This section applies: (a) despite section 7A and subsections 7C(1) and (3) of this Act; and (b) instead of any rules made for the purposes of section 29 of the Public Governance, Performance and Accountability Act 2013 (other than as referred to in paragraph (2)(b) of this section). #### Subdivision D—Termination for contravening general duties of officials #### 7F Termination for contravening general duties of officials Section 30 of the Public Governance, Performance and Accountability Act 2013 (about terminating the appointment of an accountable authority, or a member of an accountable authority, for contravening general duties of officials): (a) applies in relation to the following: (i) an external Monetary Policy Board member; (ii) an external Payments System Board member; as if the member were a member of the accountable authority of the Bank; and (b) despite subsection 30(6) of that Act, does not apply in relation to the following: (i) the Governor; (ii) the Deputy Governor; (iii) the senior RBS member. > Note: Section 30 of the Public Governance, Performance and Accountability Act 2013 continues to apply to the external Governance Board members as members of the accountable authority of the Bank. The effect of section 30 of that Act together with this section is that the appointment of: (a) an external Monetary Policy Board member; or (b) an external Payments System Board member; or (c) an external Governance Board member; > Note: may be terminated by the Treasurer in the circumstances provided under section 30 of that Act. ### Division 2—Overarching objective and functions and powers of the Bank #### 8AA Overarching objective of the Bank (1) The overarching objective of the Bank is to promote the economic prosperity and welfare of the people of Australia both now and into the future. (2) The Bank must perform its functions and exercise its powers in a way that achieves the Bank’s overarching objective. (3) Subsection (2) has effect subject to any other law of the Commonwealth conferring functions or powers on the Bank. #### 8AB Functions of the Bank The Bank has the functions conferred on the Bank by this Act or by any other law of the Commonwealth. > Note: The Bank’s functions conferred by this Act include being Australia’s central bank (see section 26), issuing Australian notes (see section 34) and contributing to the stability of Australia’s financial system (see section 45). #### 8 General powers The Bank has such powers as are necessary for the purposes of this Act and any other Act conferring functions on the Bank and, in particular, and in addition to any other powers conferred on it by this Act and such other Acts, has power: (a) to receive money on deposit; (b) to borrow money; (c) to lend money; (d) to buy, sell, discount and re‑discount bills of exchange, promissory notes and treasury bills; (e) to buy and sell securities issued by the Commonwealth and other securities; (f) to buy, sell and otherwise deal in foreign currency, specie, gold and other precious metals; (g) to establish credits and give guarantees; (h) to issue bills and drafts and effect transfers of money; (i) to underwrite loans; and (j) to do anything incidental to any of its powers. ### Division 3—The Boards of the Bank #### Subdivision A—Overview #### 9 Overview (1) The Bank has 3 Boards: (a) the Monetary Policy Board (see Subdivision B); and (b) the Payments System Board (see Subdivision C); and (c) the Governance Board (see Subdivision D). (2) The Governor is to resolve any disagreements between the Boards. #### Subdivision B—The Monetary Policy Board #### 9A Establishment of the Monetary Policy Board The Monetary Policy Board of the Reserve Bank is established by this section. #### 9B Functions of the Monetary Policy Board (1) The functions of the Monetary Policy Board are: (a) to determine the monetary policy of the Bank in a way that, in the Board’s opinion, best contributes to: (i) price stability in Australia; and (ii) the maintenance of full employment in Australia; and (b) to determine the policy of the Bank (other than the payments system policy of the Bank) for contributing to the stability of Australia’s financial system; and (c) to promote the proper, efficient and effective implementation by the Bank of the policies mentioned in paragraphs (a) and (b); and (d) any other functions conferred on the Board by this Act; and (e) to do anything incidental or conducive to the performance of any of the above functions. > Note: One way the Monetary Policy Board contributes to the achievement of the Bank’s overarching objective is by determining the policies mentioned in paragraphs (a) and (b). (2) The Monetary Policy Board has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions. (3) However, the Monetary Policy Board must perform its functions and exercise its powers having regard to the duties of the Governance Board as the accountable authority of the Bank for the purposes of the Public Governance, Performance and Accountability Act 2013. (4) Without limiting section 87 (about the validity of acts of the Bank), any failure by the Monetary Policy Board to comply with subsection (3) of this section does not: (a) affect the validity of the Board’s performance of its functions or the exercise of its powers; or (b) give rise to an action or other proceeding for damages. #### Subdivision C—The Payments System Board #### 10A Establishment of the Payments System Board There is to be a Payments System Board of the Reserve Bank which is to be constituted as provided in Part IIIA. #### 10B Functions of the Payments System Board (1) The functions of the Payments System Board are: (a) to determine the payments system policy of the Bank in a way that, in the Board’s opinion, is directed to the greatest advantage of the people of Australia; and (b) to promote the proper, efficient and effective implementation by the Bank of that policy; and (c) to ensure the Bank’s functions and powers under the Payment Systems (Regulation) Act 1998 and the Payment Systems and Netting Act 1998 are performed and exercised in a way that, in the Board’s opinion, best contributes to: (i) controlling risk in the financial system; and (ii) promoting the efficiency of the payments system; and (iii) promoting competition in the market for payment services, consistent with the overall stability of the financial system; and (d) to ensure the Bank’s functions and powers under Parts 7.3 and 7.3B of the Corporations Act 2001 are performed and exercised in a way that, in the Board’s opinion, best contributes to the overall stability of the financial system; and (e) any other functions conferred on the Board by this Act; and (f) to do anything incidental or conducive to the performance of any of the above functions. > Note: One way the Payments System Board contributes to the achievement of the Bank’s overarching objective is by determining the Bank’s payments system policy. (2) The Payments System Board has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions. (3) However, the Payments System Board must perform its functions and exercise its powers having regard to the duties of the Governance Board as the accountable authority of the Bank for the purposes of the Public Governance, Performance and Accountability Act 2013. (4) Without limiting section 87 (about the validity of acts of the Bank), any failure by the Payments System Board to comply with subsection (3) of this section does not: (a) affect the validity of the Board’s performance of its functions or the exercise of its powers; or (b) give rise to an action or other proceeding for damages. #### Subdivision D—The Governance Board #### 10C Establishment of the Governance Board The Governance Board of the Reserve Bank is established by this section. #### 10D Functions of the Governance Board (1) The functions of the Governance Board are: (a) to oversee, and determine policies for, the management and organisational affairs of the Bank (including to oversee, and determine policies for, the Bank’s balance sheet management, to the extent that doing so does not involve the Board doing anything described in paragraph (3)(a)); and (b) to determine the policies of the Bank for the performance of the Bank’s functions in relation to: (i) delivering banking services to the Commonwealth as the Commonwealth’s banker and financial agent; and (ii) issuing, re‑issuing and cancelling Australian notes; and (c) to determine the policies of the Bank in relation to any matter not covered by the functions of the Monetary Policy Board or the Payments System Board; and (d) any other functions conferred on the Governance Board by this Act or any other Act; and (e) to do anything incidental or conducive to the performance of any of the above functions. > Note: One way the Governance Board contributes to the achievement of the Bank’s overarching objective is by determining the Bank’s policies referred to in paragraphs (a), (b) and (c). (2) The Governance Board has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions. (3) Nothing in this Act, or in any other Act, authorises the Governance Board to: (a) do anything that would limit the Monetary Policy Board performing its functions or exercising its powers in ways that affect the Bank’s balance sheet; or (b) perform any functions conferred on the Monetary Policy Board or the Payments System Board, including determining the Bank’s policies referred to in subsection 9B(1) or 10B(1); or (c) determine the Bank’s approach for implementing those policies. (4) The Governance Board must: (a) consult the Monetary Policy Board before doing anything that would materially affect that Board’s performance of its functions or exercise of its powers; and (b) consult the Payments System Board before doing anything that would materially affect that Board’s performance of its functions or exercise of its powers. (5) Without limiting section 87 (about the validity of acts of the Bank), any failure by the Governance Board to comply with subsection (4) of this section does not: (a) affect the validity of anything done by the Governance Board; or (b) give rise to an action or other proceeding for damages. #### Subdivision E—Informing Government about performance of functions and exercise of powers #### 11A Informing the Government about performance of functions and exercise of powers (1) The Monetary Policy Board must, from time to time, inform the Government about the performance of its functions and the exercise of its powers, including its determination of any policy referred to in subsection 9B(1). (2) The Payments System Board must, from time to time, inform the Government about the performance of its functions and the exercise of its powers, including its determination of any policy referred to in subsection 10B(1). > Note: Section 19 of the Public Governance, Performance and Accountability Act 2013 requires the Governance Board, as the accountable authority of the Bank, to keep the Treasurer informed of its decisions and the Bank’s activities. #### 11 Differences of opinion with Government on questions of policy (2) In the event of a difference of opinion between the Government and one of the Boards (the relevant Board) about whether a policy determined by the relevant Board is directed to the greatest advantage of the people of Australia, the Treasurer and the relevant Board shall endeavour to reach agreement. (3) If the Treasurer and the relevant Board are unable to reach agreement, the relevant Board shall forthwith furnish to the Treasurer a statement in relation to the matter in respect of which the difference of opinion has arisen. (4) The Treasurer may then submit a recommendation to the Governor‑General, and the Governor‑General, acting with the advice of the Federal Executive Council, may, by order, determine the policy to be adopted by the Bank. (5) The Treasurer shall inform the relevant Board of the policy so determined and shall, at the same time, inform the relevant Board that the Government accepts responsibility for the adoption by the Bank of that policy and will take such action (if any) within its powers as the Government considers to be necessary by reason of the adoption of that policy. (6) The relevant Board shall thereupon ensure that effect is given to the policy determined by the order and shall, if the order so requires, continue to ensure that effect is given to that policy while the order remains in operation. (7) The Treasurer shall cause to be laid before each House of the Parliament, within 15 sitting days of that House after the Treasurer has informed the relevant Board of the policy determined under subsection (4): (a) a copy of the order determining the policy; (b) a statement by the Government in relation to the matter in respect of which the difference of opinion arose; and (c) a copy of the statement furnished to the Treasurer by the relevant Board under subsection (3). ### Division 4—The role of the Governor and Deputy Governor #### 12 The Governor and Deputy Governor (1) There shall be a Governor of the Bank and a Deputy Governor of the Bank, who shall be appointed and hold office as provided by Part III. (2) The Governor is responsible for the day‑to‑day management of the Bank. The Governor must fulfil the responsibility consistently with Division 3 (about the Bank’s Boards). (3) The Deputy Governor shall perform such duties as the Governor directs and, in the event of a vacancy in the office of Governor, the Deputy Governor shall perform the duties of the Governor and shall have and may exercise the powers and functions of the Governor. #### 13 Governor and Secretary to establish liaison The Governor and the Secretary shall establish a close liaison with each other and shall keep each other fully informed on all matters which jointly concern the Bank and the Department. ## Part III—The Governor and Deputy Governor #### 24 Governor and Deputy Governor (1) The Governor and the Deputy Governor: (a) are to be appointed by the Treasurer; and (b) shall be appointed for such period, not exceeding 7 years, as the Treasurer determines but are eligible for re‑appointment; and (c) hold office subject to good behaviour. #### 24A Terms and conditions of employment not provided for by Act The Governor and the Deputy Governor hold office on such terms and conditions (including terms and conditions relating to remuneration and allowances) in relation to matters not provided for by this Act as are determined by the Governance Board. #### 24B Resignation A person appointed as the Governor or the Deputy Governor may resign that appointment by giving a written resignation to the Treasurer. #### 25 Vacation of Office If the person appointed as the Governor or the Deputy Governor: (a) becomes permanently incapable of performing the person’s duties; or (b) engages in any paid employment outside the duties of the person’s office; or (c) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with the person’s creditors or makes an assignment of the person’s salary for their benefit; the Treasurer must terminate the person’s appointment. ## Part IIIAA—The Monetary Policy Board ### Division 1—Board members #### 25AA Membership The Monetary Policy Board consists of the following members: (a) the Governor; (b) the Deputy Governor; (c) the Secretary; (d) 6 other members (the external Monetary Policy Board members). #### 25AB Appointment of external Board members (1) External Monetary Policy Board members are to be appointed: (a) by the Treasurer by written instrument; and (b) on a part‑time basis. > Note: Subject to subsection 25AD(2), the person may be reappointed: see section 33AA of the Acts Interpretation Act 1901. (2) A person must not be appointed under subsection (1) if the person is: (a) a staff member of the Reserve Bank Service; or (b) a person appointed or engaged under the Public Service Act 1999; or (c) a director, officer or employee of an ADI. #### 25AC Chair and Deputy Chair (1) The Governor is the Chair of the Monetary Policy Board. (2) The Deputy Governor is the Deputy Chair of the Monetary Policy Board. (3) The Deputy Chair is to act as the Chair: (a) during a vacancy in the office of the Governor; or (b) during any period, or during all periods, when the Governor: (i) is absent from duty; or (ii) is, for any reason, unable to perform the duties of the office. > Note: For rules that apply to persons acting as the Chair, see section 33A of the Acts Interpretation Act 1901. #### 25AD Period of appointment of external Board members (1) An external Monetary Policy Board member holds office for the period specified in the instrument of appointment. The period must not exceed 5 years. (2) A person must not be appointed under subsection 25AB(1) for a period if the sum of the following exceeds 7 years: (a) that period; (b) any earlier periods that the person has been an external Monetary Policy Board member. #### 25AE Acting appointments of external Board members The Treasurer may, by written instrument, appoint a person to act as an external Monetary Policy Board member: (a) during a vacancy in the office of an external Monetary Policy Board member (whether or not an appointment has previously been made to the office); or (b) during any period, or during all periods, when an external Monetary Policy Board member: (i) is absent from duty; or (ii) is, for any reason, unable to perform the duties of the office. > Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901. #### 25AF Other terms and conditions of external Board members An external Monetary Policy Board member holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Treasurer. #### 25AG Remuneration of external Board members (1) An external Monetary Policy Board 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 member is to be paid the remuneration that is prescribed by the regulations. (2) An external Monetary Policy Board member is to be paid the allowances that are prescribed by the regulations. (3) This section has effect subject to the Remuneration Tribunal Act 1973. #### 25AH Leave of absence of external Board members The Monetary Policy Board may grant leave of absence to any external Monetary Policy Board member on the terms and conditions that the Board determines. #### 25AJ Declaration by Board members (1) Each member of the Monetary Policy Board must, before first starting to perform the duties of the office: (a) make an oath or affirmation of allegiance; and (b) make a declaration of secrecy. (2) The oath or affirmation of allegiance must be made: (a) in accordance with the form set out in the Schedule to the Constitution; and (b) before a justice of the peace or a commissioner for taking affidavits. (3) The declaration of secrecy must be: (a) in the prescribed form; and (b) made before a justice of the peace or a commissioner for taking affidavits. (4) However, this section does not apply to a member of the Monetary Policy Board if the member is also a member of the Payments System Board or the Governance Board and has already complied with section 25E or 25NJ (as applicable). #### 25AK Independence of Board members (1) Subject to this Act and to other laws of the Commonwealth, each person who is a member of the Monetary Policy Board, in performing the person’s functions and duties and exercising the person’s powers as a member of the Board: (a) has complete discretion; and (b) is not subject to direction from anyone (including direction from the Government); and (c) must act in an independent and impartial manner. (2) In particular, and without limiting subsection (1), the Secretary is a member of the Board in the Secretary’s individual capacity. #### 25AL Resignation of external Board members (1) An external Monetary Policy Board member may resign the member’s appointment by giving the Treasurer a written resignation. (2) The resignation takes effect on the day it is received by the Treasurer or, if a later day is specified in the resignation, on that later day. #### 25AM Termination of external Board members (1) The Treasurer may terminate the appointment of an external Monetary Policy Board member: (a) for misbehaviour; or (b) if the member is unable to perform the duties of the member’s office because of physical or mental incapacity. (2) The Treasurer must terminate the appointment of an external Monetary Policy Board member if: (a) the member: (i) becomes bankrupt; or (ii) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or (iii) compounds with the member’s creditors; or (iv) makes an assignment of the member’s remuneration for the benefit of the member’s creditors; or (b) the member is absent, except on leave of absence, from: (i) 2 consecutive meetings of the Monetary Policy Board; or (ii) 3 meetings of the Monetary Policy Board in any period of 12 months; or (c) the member is or becomes: (i) a staff member of the Reserve Bank Service; or (ii) a person appointed or engaged under the Public Service Act 1999; or (iii) a director, officer or employee of an ADI. > Note: The appointment of an external Monetary Policy Board member may also be terminated under section 30 of the Public Governance, Performance and Accountability Act 2013 (which deals with terminating the appointment of an accountable authority, or a member of an accountable authority, for contravening general duties of officials). That section applies to the member because of section 7F of this Act. ### Division 2—Meetings of the Board #### 25AN Convening meetings (1) The Monetary Policy Board must hold such meetings as the Board determines are necessary for the efficient performance of its functions. (2) The Chair of the Monetary Policy Board may convene a meeting at any time. #### 25AP Presiding at meetings (1) The Chair of the Monetary Policy Board must preside at all meetings at which the Chair is present. > Note: Subsection 25AC(3) provides acting arrangements for the Chair. This section also applies to an acting Chair as if they were the Chair (see section 33A of the Acts Interpretation Act 1901). (2) If the Chair is not present at a meeting of the Monetary Policy Board, the other members of the Board present must appoint one of themselves to preside. > Note: For reasons explained in the note to subsection (1), this subsection only applies where neither the Chair nor an acting Chair is present at the meeting. #### 25AQ Quorum At a meeting of the Monetary Policy Board, a quorum is constituted by 5 members of the Board. #### 25AR Voting at meetings (1) A question arising at a meeting of the Monetary Policy Board is to be determined by a majority of the votes of the members of the Board present and voting. (2) The person presiding at a meeting of the Monetary Policy Board has a deliberative vote and, if the votes are equal, a casting vote. #### 25AS Secretary may nominate alternate to attend meetings (1) The Secretary may, by written instrument, nominate a specified person who is an SES employee or acting SES employee in the Department to attend a particular meeting, or all meetings, of the Monetary Policy Board at which the Secretary is not present. > Note: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901. (2) A person so nominated may attend a meeting to which the nomination applies and, while the person does so, this Part applies in relation to the person as if the person were the Secretary. #### 25AT Conduct of meetings The Monetary Policy Board may, subject to this Part, regulate proceedings at its meeting as it considers appropriate. > Note: Section 33B of the Acts Interpretation Act 1901 contains further information about the ways in which members of the Monetary Policy Board may participate in meetings. #### 25AU Decisions without meetings (1) The Monetary Policy Board is taken to have made a decision at a meeting if: (a) without meeting, a majority of the members of the Board entitled to vote on the proposed decision indicate agreement with the decision; and (b) that majority would have constituted a quorum at a meeting of the Board; and (c) that agreement is indicated in accordance with the method determined by the Board under subsection (2); and (d) all the members of the Board were informed of the proposed decision, or reasonable efforts were made to inform all of the members of the Board of the proposed decision. (2) Subsection (1) applies only if the Monetary Policy Board: (a) has determined that it may make decisions of that kind without meeting; and (b) has determined the method by which members of the Board are to indicate agreement with proposed decisions. (3) For the purposes of paragraph (1)(a), a member of the Monetary Policy Board is not entitled to vote on a proposed decision if the member would not have been entitled to vote on that proposal if the matter had been considered at a meeting of the Board. > Note: Sections 7D and 7E affect the member’s entitlement to vote on matters at meetings of the Board. (4) The Monetary Policy Board must keep a record of decisions made in accordance with this section. ## Part IIIA—The Payments System Board ### Division 1—The members of the Payments System Board #### 25A Membership of Payments System Board The Payments System Board consists of the following members: (a) the Governor; (b) one representative of the Bank (the Bank’s PSB member); (c) one representative of APRA; (d) up to 5 other members (the external Payments System Board members). #### 25B Appointment of members (1) The Bank’s PSB member is to be appointed by the Governor. The person appointed must be a member of the Monetary Policy Board or the Governance Board or a staff member of the Reserve Bank Service. (2) The member who is the representative of APRA referred to in paragraph 25A(c) is to be appointed by APRA. The person appointed must be an APRA member or an APRA staff member. (3) Each external Payments System Board member is to be appointed by the Treasurer for a period specified in the instrument of appointment. The period specified must not exceed 5 years. (4) All appointments under this section are to be in writing. (5) All appointments under this section are to be on a part‑time basis. > Note 1: Members appointed under subsection (1) or (2) are not appointed for a specified period, however, their appointments can be terminated at any time (see section 25K). > Note 2: The Governor is an ex officio member of the Payments System Board (and so is not separately appointed to the Board). #### 25C Chair of the Payments System Board The Governor is the Chair of the Payments System Board. #### 25D Deputy Chair of the Payments System Board (1) The Bank’s PSB member is the Deputy Chair of the Board. (2) The Deputy Chair is to act as the Chair during any period when: (a) the office of Governor is vacant; or (b) the Governor is absent from Australia or is, for any reason, unable to perform the duties of Chair of the Payments System Board. (3) The Deputy Chair has, when acting as the Chair, all the powers, duties, rights and entitlements of the Chair of the Payments System Board. #### 25DA Acting appointments of external Board members The Treasurer may, by written instrument, appoint a person to act as an external Payments System Board member: (a) during a vacancy in the office of an external Payments System Board member; or (b) during any period, or during all periods, when an external Payments System Board member: (i) is absent from duty; or (ii) is, for any reason, unable to perform the duties of the office. > Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901. #### 25E Declaration by members (1) Each member of the Payments System Board must, before first starting to act as a member of the Board: (a) make an oath or affirmation of allegiance; and (b) make a declaration of secrecy. (2) The oath or affirmation of allegiance: (a) is to be in accordance with the form set out in the Schedule to the Constitution; and (b) is to be made before a Justice of the Peace or a Commissioner for taking Affidavits. (3) The declaration of secrecy: (a) is to be in the prescribed form; and (b) is to be made before a Justice of the Peace or a Commissioner for taking Affidavits. (4) However, this section does not apply to a member of the Payments System Board if the member is also a member of the Monetary Policy Board or the Governance Board and has already complied with section 25AJ or 25NJ (as applicable). #### 25EA Independence of Board members Subject to this Act and to other laws of the Commonwealth, each person who is a member of the Payments System Board, in performing the person’s functions and duties and exercising the person’s powers as a member of the Board: (a) has complete discretion; and (b) is not subject to direction from anyone (including direction from the Government); and (c) must act in an independent and impartial manner. ### Division 2—Meetings #### 25F Meetings (1) The Payments System Board is to meet at times and places as determined by the Payments System Board or as directed by the Chair. (2) The Chair is to preside at all meetings of the Payments System Board at which the Chair is present. In the Chair’s absence, the Deputy Chair is to preside. (3) Five Members of the Payments System Board form a quorum at a meeting of the Payments System Board. (4) Questions arising at a meeting of the Payments System Board are to be decided by a majority of the votes of the members present and voting. (5) The member presiding at a meeting of the Payments System Board: (a) has a deliberative vote; and (b) if necessary, also has a casting vote. #### 25G Conduct of meetings The Payments System Board may regulate proceedings at its meetings as it considers appropriate. However, proceedings at a meeting must not be inconsistent with this Part. > Note: Section 33B of the Acts Interpretation Act 1901 contains further information about the ways in which members may participate in meetings. #### 25H Decisions without meetings (1) The Payments System Board is taken to have made a decision at a meeting if: (a) without meeting, a majority of the members of the Board entitled to vote on the proposed decision indicate agreement with the decision; and (b) that majority would have constituted a quorum at a meeting of the Board; and (c) that agreement is indicated in accordance with the method determined by the Board under subsection (2); and (d) all the members of the Board were informed of the proposed decision, or reasonable efforts were made to inform all of the members of the Board of the proposed decision. (2) Subsection (1) applies only if the Payments System Board: (a) has determined that it may make decisions of that kind without meeting; and (b) has determined the method by which members of the Board are to indicate agreement with proposed decisions. (3) For the purposes of paragraph (1)(a), a member of the Payments System Board is not entitled to vote on a proposed decision if the member would not have been entitled to vote on that proposal if the matter had been considered at a meeting of the Board. > Note: Section 7E affects the member’s entitlement to vote on matters at meetings of the Board. (4) The Payments System Board must keep a record of decisions made in accordance with this section. ### Division 3—Other administrative provisions #### 25I Remuneration (1) A member of the Payments System Board 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 member is to be paid the remuneration that is prescribed. (2) A member of the Payments System Board is to be paid the allowances that are prescribed. (3) This section has effect subject to the Remuneration Tribunal Act 1973. #### 25J Leave of absence The Payments System Board may grant leave of absence to another member of the Payments System Board on the terms and conditions that it determines. #### 25K Resignation A member of the Payments System Board (other than the Governor) may resign the member’s appointment by giving a written resignation to: (a) if the member is the Bank’s PSB member—the Governor; or (b) if the member is the member referred to in paragraph 25A(c)—APRA; or (c) if the member is an external Payments System Board member—the Treasurer. #### 25L Termination of appointment (1) The following provisions apply to the Bank’s PSB member: (a) the Governor may, at any time, terminate the member’s appointment; (b) the member’s appointment is terminated automatically if: (i) the member ceases to be a member of the Monetary Policy Board or Governance Board, or both, and as a result, is not a member of either of those Boards; or (ii) the member ceases to be a staff member of the Reserve Bank Service. (2) The following provisions apply to the member of the Payments System Board referred to in paragraph 25A(c): (a) APRA may, at any time, terminate the member’s appointment; (b) the member’s appointment is terminated automatically if the member ceases to be an APRA member or an APRA staff member. (3) The Treasurer may terminate the appointment of an external Payments System Board member: (a) for misbehaviour; or (b) if the member is unable to perform the duties of the member’s office because of physical or mental incapacity. (4) The Treasurer must terminate the appointment of an external Payments System Board member if: (b) the member: (i) becomes bankrupt; or (ii) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or (iii) compounds with the member’s creditors; or (iv) makes an assignment of the member’s remuneration for the benefit of the member’s creditors; or (c) the member is absent, except on leave of absence granted by the Payments System Board, from: (i) 2 or more consecutive meetings of the Payments System Board; or (ii) 3 or more meetings of the Payments System Board in any period of 12 months. > Note: The appointment of an external Payments System Board member may also be terminated under section 30 of the Public Governance, Performance and Accountability Act 2013 (which deals with terminating the appointment of an accountable authority, or a member of an accountable authority, for contravening general duties of officials). That section applies to the member because of section 7F of this Act. #### 25M Payments System Board’s report to the Minister (1) The Payments System Board must, as soon as practicable after 30 June in each year, prepare and give to the Minister a report that: (a) describes the standards determined under section 827D of the Corporations Act 2001 during the financial year ending on that 30 June; and (b) describes any variations made to standards determined under that section that were in force during the financial year ending on that 30 June; and (c) describes any revocations of standards determined under that section that were in force for part of the financial year ending on that 30 June; and (d) discusses developments in the clearing and settlement industry during the financial year ending on that 30 June that are relevant to Australia’s financial stability. (2) Section 34C of the Acts Interpretation Act 1901 does not apply in relation to a report under subsection (1). ## Part IIIB—The Governance Board ### Division 1—Board members #### 25NA Membership The Governance Board consists of the following members: (a) the Governor; (b) the Deputy Governor; (c) the staff member of the Reserve Bank Service who is primarily responsible for assisting the Governor to manage the Bank (the senior RBS member); (d) 6 other members (the external Governance Board members). #### 25NB Appointment of external Board members (1) External Governance Board members are to be appointed: (a) by the Treasurer by written instrument; and (b) on a part‑time basis. > Note: Subject to subsection 25ND(2), the person may be reappointed: see section 33AA of the Acts Interpretation Act 1901. (2) A person must not be appointed under subsection (1) if the person is: (a) a staff member of the Reserve Bank Service; or (b) a person appointed or engaged under the Public Service Act 1999; or (c) a director, officer or employee of an ADI. #### 25NC Chair and Deputy Chair (1) The Treasurer must, by written instrument, appoint: (a) one member of the Governance Board to be the Chair of the Board; and (b) another member of the Governance Board to be the Deputy Chair of the Board. (2) The Treasurer must ensure that at least one of the members appointed under subsection (1) as the Chair or Deputy Chair is an external Governance Board member. (3) The Deputy Chair is to act as the Chair: (a) during a vacancy in the office of the Chair (whether or not an appointment has previously been made to the office); or (b) during any period, or during all periods, when the Chair: (i) is absent from duty; or (ii) is, for any reason, unable to perform the duties of the office. > Note: For rules that apply to persons acting as the Chair, see section 33A of the Acts Interpretation Act 1901. (4) The Treasurer may, by written instrument, appoint a member of the Governance Board to act as the Chair: (a) during a vacancy in the offices of both the Chair and the Deputy Chair (whether or not an appointment has previously been made to the offices); or (b) during any period, or during all periods, when both the Chair and Deputy Chair: (i) are absent from duty; or (ii) are, for any reason, unable to perform the duties of the office. > Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901. #### 25ND Period of appointment of external Board members (1) An external Governance Board member holds office for the period specified in the instrument of appointment. The period must not exceed 5 years. (2) A person must not be appointed under subsection 25NB(1) for a period if the sum of the following exceeds 7 years: (a) that period; (b) any earlier periods that the person has been an external Governance Board member. #### 25NE Acting appointments of external Board members The Treasurer may, by written instrument, appoint a person to act as an external Governance Board member: (a) during a vacancy in the office of an external Governance Board member (whether or not an appointment has previously been made to the office); or (b) during any period, or during all periods, when an external Governance Board member: (i) is absent from duty; or (ii) is, for any reason, unable to perform the duties of the office. > Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901. #### 25NF Other terms and conditions of external Board members An external Governance Board member holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Treasurer. #### 25NG Remuneration of external Board members (1) An external Governance Board 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 member is to be paid the remuneration that is prescribed by the regulations. (2) An external Governance Board member is to be paid the allowances that are prescribed by the regulations. (3) This section has effect subject to the Remuneration Tribunal Act 1973. #### 25NH Leave of absence of external Board members The Governance Board may grant leave of absence to any external Governance Board member on the terms and conditions that the Board determines. #### 25NJ Declaration by Board members (1) Each member of the Governance Board must, before first starting to perform the duties of the office: (a) make an oath or affirmation of allegiance; and (b) make a declaration of secrecy. (2) The oath or affirmation of allegiance must be made: (a) in accordance with the form set out in the Schedule to the Constitution; and (b) before a justice of the peace or a commissioner for taking affidavits. (3) The declaration of secrecy must be: (a) in the prescribed form; and (b) made before a justice of the peace or a commissioner for taking affidavits. (4) However, this section does not apply to a member of the Governance Board if the member is also a member of the Monetary Policy Board or the Payments System Board and has already complied with section 25AJ or 25E (as applicable). #### 25NK Independence of Board members Subject to this Act and to other laws of the Commonwealth, each person who is a member of the Governance Board, in performing the person’s functions and duties and exercising the person’s powers as a member of the Board: (a) has complete discretion; and (b) is not subject to direction from anyone (including direction from the Government); and (c) must act in an independent and impartial manner. #### 25NL Resignation of external Board members (1) An external Governance Board member may resign the member’s appointment by giving the Treasurer a written resignation. (2) The resignation takes effect on the day it is received by the Treasurer or, if a later day is specified in the resignation, on that later day. #### 25NM Termination of external Board members (1) The Treasurer may terminate the appointment of an external Governance Board member: (a) for misbehaviour; or (b) if the member is unable to perform the duties of the member’s office because of physical or mental incapacity. (2) The Treasurer must terminate the appointment of an external Governance Board member if: (a) the member: (i) becomes bankrupt; or (ii) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or (iii) compounds with the member’s creditors; or (iv) makes an assignment of the member’s remuneration for the benefit of the member’s creditors; or (b) the member is absent, except on leave of absence, from: (i) 2 consecutive meetings of the Governance Board; or (ii) 3 meetings of the Governance Board in any period of 12 months; or (c) the member is or becomes: (i) a staff member of the Reserve Bank Service; or (ii) a person appointed or engaged under the Public Service Act 1999; or (iii) a director, officer or employee of an ADI. > Note: The appointment of an external Governance Board member may also be terminated under section 30 of the Public Governance, Performance and Accountability Act 2013 (which deals with terminating the appointment of an accountable authority, or a member of an accountable authority, for contravening general duties of officials). ### Division 2—Meetings of the Board #### 25NN Convening meetings (1) The Governance Board must hold such meetings as the Board determines are necessary for the efficient performance of its functions. (2) The Chair of the Governance Board: (a) may convene a meeting at any time; and (b) must convene at least 4 meetings each calendar year. #### 25NP Exclusion from certain deliberations None of the following: (a) the Governor; (b) the Deputy Governor; (c) the senior RBS member; may be present during the deliberations, or take part in any decision, of the Governance Board with respect to the terms or conditions on which the Governor or the Deputy Governor holds office. > Note: The terms and conditions on which the Governor and the Deputy Governor hold office are determined by the Governance Board (see section 24A). #### 25NQ Presiding at meetings (1) The Chair of the Governance Board must preside at all meetings at which the Chair is present. > Note: Subsections 25NC(3) and (4) provide acting arrangements for the Chair. This section also applies to any member of the Governance Board acting as the Chair as if the member were the Chair (see section 33A of the Acts Interpretation Act 1901). (2) If the Chair is not present at a meeting of the Governance Board, the other members of the Board present must appoint one of themselves to preside. > Note: For reasons explained in the note to subsection (1), this subsection only applies where neither the Chair nor any acting Chair is present at the meeting. #### 25NR Quorum (1) At a meeting of the Governance Board, a quorum is constituted by 7 members of the Board. (2) However, if: (a) one or more members of the Governance Board are prevented from being present during the deliberations, or taking part in any decision, of the Board with respect to a matter at the meeting: (i) in the case of the Governor, the Deputy Governor or the senior RBS member—by section 25NP; or (ii) in any case—by rules made for the purposes of section 29 of the Public Governance, Performance and Accountability Act 2013; and (b) as a result, there is no longer a quorum present when the member or members leave the meeting; the remaining members of the Board at the meeting constitute a quorum for the purpose of any deliberation or decision at that meeting with respect to that matter. #### 25NS Voting at meetings (1) A question arising at a meeting of the Governance Board is to be determined by a majority of the votes of the members of the Board present and voting. (2) The person presiding at a meeting of the Governance Board has a deliberative vote and, if the votes are equal, a casting vote. #### 25NT Conduct of meetings The Governance Board may, subject to this Part, regulate proceedings at its meeting as it considers appropriate. > Note: Section 33B of the Acts Interpretation Act 1901 contains further information about the ways in which members of the Governance Board may participate in meetings. #### 25NU Decisions without meetings (1) The Governance Board is taken to have made a decision at a meeting if: (a) without meeting, a majority of the members of the Board entitled to vote on the proposed decision indicate agreement with the decision; and (b) that majority would have constituted a quorum at a meeting of the Board; and (c) that agreement is indicated in accordance with the method determined by the Board under subsection (2); and (d) all the members of the Board were informed of the proposed decision, or reasonable efforts were made to inform all of the members of the Board of the proposed decision. (2) Subsection (1) applies only if the Governance Board: (a) has determined that it may make decisions of that kind without meeting; and (b) has determined the method by which members of the Board are to indicate agreement with proposed decisions. (3) For the purposes of paragraph (1)(a), a member of the Governance Board is not entitled to vote on a proposed decision if the member would not have been entitled to vote on that proposal if the matter had been considered at a meeting of the Board. (4) The Governance Board must keep a record of decisions made in accordance with this section. ## Part IV—Central banking #### 26 Reserve Bank to act as a central bank The Reserve Bank: (a) is the central bank of Australia; (b) shall carry on business as a central bank; and (c) subject to this Act and to the Banking Act 1959 shall not carry on business otherwise than as a central bank. #### 27 Bank to be banker for Commonwealth The Bank shall, in so far as the Commonwealth requires it to do so, act as banker and financial agent of the Commonwealth. #### 28 Capital The capital of the Bank for the purposes of this Part shall be the aggregate of: (a) the capital of the former Commonwealth Bank of Australia for the purposes of Part V of the Commonwealth Bank Act 1945 immediately before the commencement of this Act; and (b) such other sums as are transferred from the Reserve Bank Reserve Fund in pursuance of section 29. #### 29 Reserve Fund (1) The Bank shall have a reserve fund (to be called the Reserve Bank Reserve Fund), which shall consist of: (a) the amount standing to the credit of the Commonwealth Bank Reserve Fund existing under the Commonwealth Bank Act 1945 immediately before the commencement of this Act; and (b) such other sums as are placed to its credit in pursuance of section 30. (2) The Governance Board may, from time to time, transfer from the Reserve Bank Reserve Fund to the capital of the Bank for the purposes of this Part such sums as the Governance Board determines. #### 30 Profits (1) Subject to subsection (2), the net profits of the Bank in each year shall be dealt with as follows: (aa) such amount as the Treasurer, after consultation with the Governance Board, determines is to be set aside for contingencies; and (a) such amount as the Treasurer, after consultation with the Governance Board, determines shall be placed to the credit of the Reserve Bank Reserve Fund; and (b) the remainder shall be paid to the Commonwealth. (2) If the net profit of the Bank for a year is calculated on a basis that requires the inclusion of unrealised gains on assets during the year, the amount to which subsection (1) applies is to be worked out as follows: (a) deduct from the net profit an amount equal to the total of all amounts of unrealised gains included in the net profit; and (b) if an asset in respect of which unrealised gains were included in the net profit for a previous year or years is realised during the year—add to the amount remaining after applying paragraph (a) the total amount of those unrealised gains. ## Part V—The note issue #### 34 Issue, re‑issue and cancellation of notes (1) Subject to this Act, the Bank may: (a) issue Australian notes; (b) re‑issue Australian notes; and (c) cancel Australian notes. (2) Australian notes shall be printed by, or under the authority of, the Bank. #### 35 Denominations of notes Australian notes may be issued in any of the following denominations, namely, One dollar, Two dollars, Five dollars, Ten dollars, Twenty dollars, Fifty dollars or One hundred dollars or in any other denomination that the Treasurer determines by legislative instrument. #### 36 Notes to be legal tender (1) Australian notes are a legal tender throughout Australia. (2) For the purposes of subsection (1), an Australian note of a denomination specified in the first column of the following table has the value in the currency provided for by the Currency Act 1965 that is set out in the second column of that table opposite to the denomination of that note: | Table | | | ------------------- | -------------------- | | First Column | Second Column | | Ten shillings | One dollar | | One pound | Two dollars | | Five pounds | Ten dollars | | Ten pounds | Twenty dollars | | Twenty pounds | Forty dollars | | Fifty pounds | One hundred dollars | | One hundred pounds | Two hundred dollars | | One thousand pounds | Two thousand dollars | #### 37 Signature on notes (1) The Australian notes issued in pursuance of this Part shall bear the signature of the Secretary or of such other officer of the Department as the Treasurer directs, and the signature of the Governor or, if the Governor so directs, of the Deputy Governor, or a staff member of the Reserve Bank Service, specified by the Governor. (2) The signatures may be made in the handwriting of those persons or may be made by engraving or by any other process determined by the Bank. #### 43 Bank not to issue notes other than Australian notes The Bank shall not issue bills or notes (other than Australian notes) intended for circulation as money. #### 44 Other persons not to issue notes (1) A person shall not issue a bill or note for the payment of money payable to bearer on demand and intended for circulation. Penalty: 50 penalty units. > Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. (2) A State shall not issue a bill or note for the payment of money payable to bearer on demand and intended for circulation. ## Part VI—Financial system stability #### 45 Contributing to financial system stability The Reserve Bank’s functions include contributing to the stability of Australia’s financial system. ## Part VII—The Reserve Bank Service #### 66 The Reserve Bank Service The persons appointed, engaged or assisting the Bank under this Part constitute the Reserve Bank Service. #### 67 Appointment of staff (1) The Bank may appoint such staff as the Bank considers necessary for the performance of its functions. (2) The terms and conditions of appointment (including as to remuneration) are to be determined by the Bank. #### 68 Consultants and other people engaged to perform services (1) The Bank may engage consultants, or other people, that are suitably qualified to provide advice to it or perform services for it. (2) The terms and conditions of engagement (including as to remuneration) are to be determined by the Bank. ## Part VIII—Miscellaneous #### 74 Head office (1) The head office of the Bank shall be at Sydney in the State of New South Wales. #### 75 Agents etc. In the exercise of its powers and the performance of its functions, the Bank may: (a) establish branches and agencies at such places, whether within or beyond Australia, as the Bank thinks fit; (b) arrange with a person to act as agent of the Bank in any place, whether within or beyond Australia; and (c) act as the agent of an ADI carrying on business within or beyond Australia. #### 76 Attorney of Bank The Bank may, by instrument under its seal, appoint a person (whether in Australia or in a place beyond Australia) to be its attorney and a person so appointed may, subject to the instrument, do any act or execute any power or function which the person is authorized by the instrument to do or execute. #### 77 Guarantee by Commonwealth The Commonwealth is responsible for the payment of all moneys due by the Bank but nothing in this section authorizes a creditor or other person claiming against the Bank to sue the Commonwealth in respect of the creditor’s or other person’s claim. #### 79 Taxation The Bank is not liable to taxation under any law of a State or of a Territory to which the Commonwealth is not subject and the income of the Bank is not liable to income tax under a law of the Commonwealth. #### 79A Secrecy (1) In this section: > court includes a tribunal, authority or person having the power to require the production of documents or the answering of questions. > financial institution means a body (other than the Reserve Bank) that has at any time carried on, is carrying on, or proposes to carry on, a business that consists of, or includes, the provision of financial products or financial services (including a body that has previously carried on such a business but has ceased to exist). > financial sector supervisory agency means a person or body having the function, in Australia or in a foreign country, of supervising or regulating financial institutions. > foreign central bank means the central bank or monetary authority of a foreign country. > officer means: (a) the Governor, the Deputy Governor, the Secretary or any other member of the Monetary Policy Board; or (aa) a member of the Payments System Board; or (ab) a member of the Governance Board; or (ac) a member of the former Board of the Bank known as the Reserve Bank Board; or (b) a staff member of the Reserve Bank Service; or (d) the Statistician or a member of the staff of the Australian Bureau of Statistics; or (e) any other person who, because of that other person’s employment or engagement, or in the course of that employment or engagement: (i) has acquired protected information; or (ii) has had access to protected documents. > Note: Example: Paragraph (e): a person who, in the course of the person’s engagement as a statutory manager of a body corporate under Part 7.3B of the Corporations Act 2001, has acquired protected information or has had access to protected documents. > produce includes permit access to. > protected document means a document given or produced (whether before or after the commencement of this section) under, or for the purposes of, this Act, the Banking Act 1959, the Payment Systems (Regulation) Act 1998, the Payment Systems and Netting Act 1998 or the repealed Banks (Shareholdings) Act 1972 and containing information relating to the affairs of: (a) a financial institution; or (b) a body corporate (including a body corporate that has ceased to exist) that has at any time been, or is, related (within the meaning of the Corporations Act 2001) to a financial institution that is a body corporate; or (c) a person who has been, is, or proposes to be, a customer of a financial institution; It also includes a document given or produced under, or for the purposes of, the performance or exercise of the functions or powers of the Reserve Bank under Part 7.3, 7.3B or 7.5A of the Corporations Act 2001. It does not however include any document to the extent that it contains information that has already been lawfully made available to the public from other sources. > protected information means information disclosed or obtained (whether before or after the commencement of this section) under, or for the purposes of, this Act, the Banking Act 1959, the Payment Systems (Regulation) Act 1998, the Payment Systems and Netting Act 1998 or the repealed Banks (Shareholdings) Act 1972 and relating to the affairs of: (a) a financial institution; or (b) a body corporate (including a body corporate that has ceased to exist) that has at any time been, or is, related (within the meaning of the Corporations Act 2001) to a financial institution that is a body corporate; or (c) a person who has been, is, or proposes to be, a customer of a financial institution; It also includes information disclosed or obtained in the course of, or for the purposes of, the performance or exercise of the functions or powers of the Reserve Bank under Part 7.3, 7.3B or 7.5A of the Corporations Act 2001. It does not however include any information that has already been lawfully made available to the public from other sources. > Statistician means the Australian Statistician referred to in subsection 5(2) of the Australian Bureau of Statistics Act 1975. (2) Subject to this section, a person who is or has been an officer must not, except for the purposes of this Act, the Banking Act 1959, Part 7.3, 7.3B or 7.5A of the Corporations Act 2001, section 62ZZD of the Insurance Act 1973, the Payment Systems (Regulation) Act 1998, the Payment Systems and Netting Act 1998 or the repealed Banks (Shareholdings) Act 1972, directly or indirectly: (a) disclose to any person, or to a court, any protected information acquired by the first‑mentioned person in the course of the first‑mentioned person’s duties as an officer; or (b) produce to any person, or to a court, a protected document. Penalty: Imprisonment for 2 years. > Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a form of imprisonment. > Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. (3) Subsection (2) does not prohibit a person from disclosing protected information, or producing a protected document, if the person to whose affairs the information or document relates: (a) is the employer of the first‑mentioned person; or (b) agrees in writing to the disclosure of the information or the production of the document, as the case may be. (4) Subsection (2) does not prohibit a person from disclosing protected information or producing a protected document to: (a) a financial sector supervisory agency; or (b) a foreign central bank; or (ba) a statutory manager of a body corporate under Part 7.3B of the Corporations Act 2001; or (c) any other person or body (including a foreign person or body) prescribed by the regulations; if the first person is satisfied that disclosure of the information, or the production of the document, will assist that agency, bank or statutory manager, or that other person or body, to perform its functions or exercise its powers. (5) Subsection (2) does not prohibit a person from disclosing protected information or producing a protected document to a person or body (including a foreign person or body) if the disclosure or production to that person or body is approved in writing by the Governor. (5A) An approval under subsection (5) is not a legislative instrument. (5B) The Governor may, in writing, delegate to the Deputy Governor, or an Assistant Governor of the Reserve Bank, the power to give approvals under subsection (5). (6) Subsection (2) does not prohibit a person from disclosing protected information, or producing a protected document, to: (a) the Governor, the Deputy Governor or any other member of the Monetary Policy Board; or (aa) a member of the Payments System Board; or (ab) a member of the Governance Board; or (b) a staff member of the Reserve Bank Service; for the purposes of the performance of the functions, or the exercise of the powers, of the Bank under a law of the Commonwealth, of a State or of a Territory. (6A) Subsection (2) does not prohibit a person from disclosing protected information, or producing a protected document, to the Australian Securities and Investments Commission if the person is satisfied that the disclosure of the information, or the production of the document, to that body will assist it to perform its functions or exercise its powers under Part 7.3, 7.3B or 7.5A of the Corporations Act 2001. (6B) Subsection (2) does not prohibit a person from: (a) disclosing protected information that is information disclosed or obtained in the course of, or for the purposes of, the performance or exercise of the functions or powers of the Reserve Bank under Part 7.3, 7.3B or 7.5A of the Corporations Act 2001; or (b) producing a protected document that is a document given or produced under, or for the purposes of, the performance or exercise of the functions or powers of the Reserve Bank under Part 7.3, 7.3B or 7.5A of the Corporations Act 2001; if the disclosure or production is: (c) to the Minister; or (d) to the Secretary for the purpose of advising the Minister, or to an officer of the Department authorised by the Secretary for the purpose of advising the Minister. (7) Subsection (2) does not prohibit a person from disclosing information, or producing a document, if the information, or the information contained in the document, as the case may be, is in the form of a summary or collection of information that is prepared so that information relating to any particular person cannot be found out from it. (7A) If a person discloses information or produces a document under this section to another person, the first person may, by notice in writing given to the other person at the time of the disclosure or production, impose conditions to be complied with in relation to the information disclosed or the document produced. (7B) A notice under subsection (7A) is not a legislative instrument. (7C) A person commits an offence if the person fails to comply with a condition imposed under subsection (7A). Penalty: Imprisonment for 2 years. (8) A person who is or has been an officer cannot be required to disclose to a court any protected information, or to produce in a court a protected document, except when it is necessary to do so for the purposes of this Act, the Banking Act 1959, Part 7.3, 7.3B or 7.5A of the Corporations Act 2001, the Payment Systems (Regulation) Act 1998, the Payment Systems and Netting Act 1998 or the repealed Banks (Shareholdings) Act 1972. (9) A document that: (a) is a protected document; or (b) contains protected information; is an exempt document for the purposes of section 38 of the Freedom of Information Act 1982. (9A) For the avoidance of doubt, information or a document that, as permitted by subsection 127(2A) of the Australian Securities and Investments Commission Act 2001, is disclosed to the Bank does not become, because of that disclosure, protected information or a protected document. #### 79B Secrecy: documents or information to which section 79A does not apply (1) Subject to this section, a staff member of the Reserve Bank Service, or an agent or other person carrying on any business of the Reserve Bank, must not: (a) permit a person to have access to, or give to a person copies of or extracts from, a document belonging to, or in the possession of, the Reserve Bank; or (b) give to a person information relating to the business of the Reserve Bank; except by the direction or authority of the Reserve Bank or under compulsion or obligation of law. Penalty: 1 penalty unit. > Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. (2) Paragraph (1)(b) does not apply to the giving to a person of information with respect to matters of a customer of the Reserve Bank if the person is the customer or the information is given at the direction or request of the customer. (3) Subsection (1) does not apply to: (a) a document that is a protected document for the purposes of section 79A; or (b) information that is protected information for the purposes of that section. #### 82 Returns The Bank shall furnish to the Treasurer such periodical statements as are prescribed. #### 83 Power to improve property and carry on business Where the Bank holds any property (whether real or personal) or business as security for a loan or advance, and the property or business falls into the hands of the Bank, the Bank may maintain, repair or improve the property, or carry on the business, until the Bank can, in its discretion, dispose of the property or business in the best interests of the Bank. #### 84 Execution of contracts (1) Contracts on behalf of the Bank may be made, varied or discharged in accordance with the succeeding provisions of this section, and all contracts so made are effectual in law, and are binding upon the Bank and on all other parties to the contract, their heirs, assigns, executors or administrators, as the case may be. (2) A contract which, if made between private persons, would be by law required to be in writing under seal may be made, varied or discharged in the name and on behalf of the Bank in writing under the seal of the Bank. (3) A contract which, if made between private persons, would be by law required to be in writing and signed by the parties to be charged therewith may be made, varied or discharged in the name and on behalf of the Bank in writing signed by any person acting with the express or implied authority of the Bank. (4) A contract which, if made between private persons, would by law be valid although made by parol only and not reduced into writing, may be made, varied or discharged by parol in the name and on behalf of the Bank by a person acting with the express or implied authority of the Bank. (5) Nothing in this section invalidates a contract executed on behalf of the Bank by a duly appointed attorney of the Bank if the contract would be valid if executed by the attorney on the attorney’s own behalf. #### 84A Protection from liability—crisis powers etc. Protection from criminal actions or proceedings (1) A criminal action or proceeding does not lie against a person in relation to anything done, or omitted to be done, in good faith by the person if: (a) the person does the thing, or omits to do the thing, for the purpose of: (i) performing or purportedly performing any function; or (ii) exercising or purportedly exercising any power; conferred or expressed to be conferred by or under: (iii) section 823F (directions to preserve stability in the Australian financial system) of the Corporations Act 2001; or (iv) Part 7.3B (crisis resolution for CS facility licensees) of that Act; and (b) it is reasonable for the person to do the thing, or to omit to do the thing, in order to achieve that purpose; and (c) the person is covered by subsection (3) of this section. > Note: A defendant bears an evidential burden in relation to the matters in this subsection: see subsection 13.3(3) of the Criminal Code. Protection from civil actions or proceedings (2) A civil action or proceeding does not lie against a person in relation to anything done, or omitted to be done, in good faith by the person if: (a) the person does the thing, or omits to do the thing, for the purpose of: (i) performing or purportedly performing any function; or (ii) exercising or purportedly exercising any power; conferred or expressed to be conferred by or under Part 7.3 (licensing of clearing and settlement facilities) or 7.3B (crisis resolution of CS facility licensees) of the Corporations Act 2001; and (b) it is reasonable for the person to do the thing, or to omit to do the thing, in order to achieve that purpose; and (c) the person is covered by subsection (3) of this section. Persons protected (3) This subsection covers the following persons: (a) the Bank; (b) the Governor; (c) the Deputy Governor; (d) a member of the Governance Board or Monetary Policy Board; (e) a member of the Payments System Board; (f) a staff member of the Reserve Bank Service; (g) an officer or employee of: (i) an Agency (within the meaning of the Public Service Act 1999); or (ii) an authority of the Commonwealth; whose services are made available to the Bank in connection with the performance or exercise of any of the Bank’s functions or powers. Reasonableness (4) For the purposes of paragraph (1)(b) or (2)(b), treat it as reasonable for a person to do a thing, or to omit to do a thing, in order to achieve a purpose unless no reasonable person in that person’s position would do the thing, or omit to do the thing, in order to achieve that purpose. #### 85 The Reserve Bank’s seal (1) All courts, judges and persons acting judicially shall take judicial notice of the seal of the Bank affixed to a document and shall presume that it was duly affixed. (2) The Bank’s seal is to be kept in such custody as the Governance Board directs, and is not to be used except as authorised by the Governance Board. #### 85A Judicial notice of statistical information published by Bank (1) All courts, judges and persons acting judicially are to take judicial notice of statistical information contained in a publication issued in the name of, by, or under the authority of, the Bank. (2) A publication purporting to be issued in the name of, by, or under the authority of, the Bank is to be taken, in any judicial or other proceeding, to have been so issued unless the contrary is proved. #### 86 Priority of debts due by other ADIs Notwithstanding anything contained in any law relating to the winding‑up of companies, but subject to subsection 13A(3) of the Banking Act 1959, debts due to the Bank by an ADI shall, in the winding‑up, have priority over all other debts. #### 87 Validity of acts and transactions of Bank The validity of an act or transaction of the Bank shall not be called in question in any legal proceedings on the ground that any provision of this Act has not been complied with. #### 89 Regulations The Governor‑General may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act or for the conduct of business by the Bank and, in particular, prescribing penalties not exceeding 10 penalty units for offences against the regulations.