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COMMONWEALTHAct
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s 6

Arrangements that are not legally binding

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 BPre‑existing foreign arrangements that are not legally binding

6 Arrangements that are not legally binding

(1)

If:

(a)

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

(b)

the arrangement is not legally binding;

then this clause applies to the arrangement.

(2)

The arrangement is not in operation 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 not in operation; 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 in operation.

(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 in operation.

(6)

This clause does not apply to an exempt arrangement

[Minister’s second reading speech made in—

House of Representatives on 3 September 2020

Senate on 12 November 2020]

(119/20)

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