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AUSTRALIA'S FOREIGN RELATIONS (STATE AND TERRITORY ARRANGEMENTS) ACT 2020 (NO. 116, 2020) - SECT 14

Simplified outline of this Part

A core State/Territory entity that proposes to negotiate or enter an arrangement with a core foreign entity must notify the Minister about that proposal. If the entity enters the arrangement, it must also notify the Minister about that.

A core State/Territory entity must not negotiate an arrangement with a core foreign entity without the Minister's approval (see section 15). The entity also must not enter the arrangement without the Minister's approval (see section 22).

The Minister must give approval if the Minister is satisfied that the proposed negotiation or arrangement:

       (a)     would not adversely affect, or would be unlikely to adversely affect, Australia's foreign relations; and

      (b)     would not be, or would be unlikely to be, inconsistent with Australia's foreign policy.

Otherwise, the Minister must refuse to give approval.

However, if the Minister does not make a decision within 30 days of being notified of the proposal to negotiate or enter the arrangement, then the Minister is taken to have given approval for the proposal.

If a core State/Territory entity enters an arrangement with a core foreign entity without the Minister's approval, then the arrangement will be invalid and unenforceable, be required to be terminated, or not be in operation (depending on the nature of the arrangement). The entities will also be prohibited from giving effect to the arrangement and from holding out that they are able to give effect to the arrangement. These consequences will apply automatically and without the involvement of the Minister (see sections 30 to 32).

Subsidiary arrangements of the unlawfully entered arrangement may also be affected (see Division 3 of Part 4).



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