53. Banking by the Commonwealth

(1) The Finance Minister may, on behalf of the Commonwealth, enter into an agreement with a bank relating to the conduct of the banking business of the Commonwealth, including in relation to opening and maintaining bank accounts.

(2) The agreement:

(a) must not provide for overdraft drawings by the Commonwealth unless it provides for each drawing to be repaid within 30 days; and

(b) must be in accordance with any requirements prescribed by the rules.

Note: An overdraft drawing consists of the bank meeting the payment of a cheque, or making an “electronic payment” to another account, and in each case debiting the payment against an account that has an insufficient balance.

(3) The Finance Minister must, on behalf of the Commonwealth, open and maintain a central bank account with the Reserve Bank of Australia.

(4) The rules may prescribe matters relating to banking by the Commonwealth, except in relation to the central bank account referred to in subsection (3).

Related guidance: 

Last updated: 13 January 2016