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COMMONWEALTHAct
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s 4

Arrangements that are legally binding under Australian law

In force
Schedule 1Transitional requirements relating to pre‑existing foreign arrangements
Division 3Consequences for failing to notify the Minister about pre‑existing foreign arrangements that are core foreign arrangements
Subdivision APre‑existing foreign arrangements that are legally binding

4 Arrangements that are legally binding under Australian law

(1)

If:

(a)

a core State/Territory entity contravenes paragraph 2(3)(a) in relation to a pre‑existing foreign arrangement between the State/Territory entity and a core foreign entity; and

(b)

apart from this clause, the arrangement would be legally binding under an Australian law;

then this clause applies to the arrangement.

(2)

The arrangement is invalid and unenforceable after the contravention.

(3)

The core State/Territory entity must:

(a)

within 14 days, or such longer period (if any) prescribed by the rules, notify the core foreign entity that:

(i)

this clause applies to the arrangement; and

(ii)

the arrangement is invalid and unenforceable; and

(b)

as soon as practicable after it has complied with paragraph (a), notify the Minister, in writing, of its compliance with that paragraph.

(4)

The core State/Territory entity must not, at any time after the contravention:

(a)

give effect to the arrangement; or

(b)

hold out, or conduct itself on the basis, that:

(i)

it can give effect to the arrangement; or

(ii)

the arrangement is valid or enforceable.

(5)

The core foreign entity must not, from the time it is notified under subclause (3) that this clause applies to the arrangement:

(a)

give effect to the arrangement in Australia; or

(b)

hold out in Australia, or conduct itself in Australia on the basis, that:

(i)

it can give effect to the arrangement; or

(ii)

the arrangement is valid or enforceable.

(6)

This clause does not apply to an exempt arrangement.

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