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This is a Bill, not an Act. For current law, see the Acts databases.
1998-99
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Export Finance
and Insurance Corporation Amendment Bill
1999
No. ,
1999
(Trade)
A Bill
for an Act to amend the law relating to the Export Finance and Insurance
Corporation, and for related purposes
ISBN: 0642 405301
Contents
Insurance (Agents and Brokers) Act
1984 6
Insurance Contracts Act
1984 6
A Bill for an Act to amend the law relating to the Export
Finance and Insurance Corporation, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Export Finance and Insurance Corporation
Amendment Act 1999.
(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Item 4 of Schedule 1 is taken to have commenced on 1 July
1998.
(3) Subject to subsection (4), items 2, 3 and 4 of Schedule 2 commence on
a day to be fixed by Proclamation.
(4) If the items referred to in subsection (3) do not commence under that
subsection before 1 July 2000, they commence on that day.
Subject to section 2, each Act 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Act is amended or repealed as set out in the applicable items in the Schedule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.
1 Subsection 3(1)
Insert:
short-term insurance contract means an export payments
insurance contract under section 14 that covers a loss or detriment arising out
of a contract or arrangement whose initial payment term is no longer than 360
days, but does not include an export payments insurance contract that EFIC has
entered into, whether wholly or partly, in accordance with an approval or
direction under Part 5.
2 After section 61
Insert:
(1) The Minister may inform EFIC in writing of arrangements that are to
apply to EFIC in relation to a debt neutrality charge to be paid by EFIC to the
Commonwealth in respect of short-term insurance contracts entered into by
EFIC.
(2) The arrangements may specify:
(a) the period in respect of which a debt neutrality charge is payable;
and
(b) the amount of the charge, or the way in which it is to be worked out;
and
(c) the period within which the amount must be paid by EFIC to the
Commonwealth.
(3) EFIC must pay a debt neutrality charge to the Commonwealth in
accordance with the arrangements.
(4) The Minister may at any time, in writing, vary or revoke arrangements
made under this section.
3 After section 62
Insert:
(1) The Minister may inform EFIC in writing of arrangements that are to
apply to EFIC in relation to guarantee fees to be paid by EFIC to the
Commonwealth in respect of short-term insurance contracts entered into by
EFIC.
(2) The arrangements may specify:
(a) the period in respect of which a guarantee fee is payable;
and
(b) the amount of the fee, or the way in which it is to be worked out;
and
(c) the period within which the amount must be paid by EFIC to the
Commonwealth.
(3) EFIC must pay guarantee fees to the Commonwealth in accordance with
the arrangements.
(4) The Minister may at any time, in writing, vary or revoke arrangements
made under this section.
4 After section 63
Insert:
(1) EFIC must pay to the Commonwealth a tax-equivalent payment in respect
of each financial year.
(2) The amount of the tax-equivalent payment to be made in respect of a
financial year is to be determined in writing by the Minister, having regard to
the purpose of ensuring that EFIC does not enjoy a net competitive advantage
over other insurers because of the operation of section 63 in relation to its
short-term insurance contracts.
(3) The amount determined under subsection (2) in respect of a financial
year must not be greater than the amount, or the sum of the amounts, of tax that
EFIC would, but for section 63, have been liable to pay in respect of that year
in relation to its short-term insurance contracts.
(4) EFIC must pay to the Commonwealth the amount determined under
subsection (2) in respect of a financial year in accordance with the written
directions of the Minister.
Insurance
(Agents and Brokers) Act 1984
1 At the end of paragraph
7(c)
Add “, other than short-term insurance contracts within the meaning
of that Act”.
2 At the end of paragraphs 9(1)(a) and
(b)
Add “or”.
3 Paragraph 9(1)(c)
Omit “society or by the Export Finance and Insurance
Corporation;”, substitute “society; or”.
4 After paragraph 9(1)(c)
Insert:
(ca) of insurance entered into, or proposed to be entered into, by the
Export Finance and Insurance Corporation, other than short-term insurance
contracts within the meaning of the Export Finance and Insurance Corporation
Act 1991 that are entered into on or after the commencement of this
paragraph; or