Australia’s Foreign Relations (State and Territory Arrangements) Act 2020

The Minister may make a declaration under subsection (2) if:

a State/Territory entity proposes to enter an arrangement with a foreign entity (whether or not notice of the proposal has been given to the Minister under section 34); and

the arrangement is a non‑core foreign arrangement; and

the Minister is satisfied that the proposed arrangement:

would adversely affect, or would be likely to adversely affect, Australia’s foreign relations; or

would be, or would be likely to be, inconsistent with Australia’s foreign policy.

The Minister must take into account certain matters when making a decision to make a declaration under subsection (2) (see section 51).

Section 37 deals with general matters about the declaration (such as revocation and giving notice to the State/Territory entity).

The Minister may make a written declaration that the State/Territory entity must not enter the arrangement.

The State/Territory entity must comply with the declaration.

If the State/Territory entity enters the arrangement in contravention of the declaration, then the Minister may make a declaration under section 41, 42 or 43 in relation to the arrangement. If the Minister does so, then, to the extent specified in the declaration, the arrangement will become invalid, unenforceable or not in operation, or be required to be varied or terminated. The declaration may also prohibit the State/Territory entity and foreign entity from giving effect to the arrangement or from holding out that they are able to give effect to the arrangement.

In addition, the Minister may make a similar declaration in relation to any subsidiary arrangements of the arrangement (see sections 46 to 48).

A declaration made under subsection (2) is not a legislative instrument.