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The Albanese Labor Government’s Fair Work Amendment (Fairer Fuel) Bill 2026 was nothing more than a drop in the tank during the fuel crisis. While its aims were to reduce lead times for renegotiating road transport contracts from over a year to a few weeks, it failed to solve the broader issues crushing our economy, agriculture, and everyday families.

Labor’s rushed these poorly drafted bills without proper consultation. This legislation hands unchecked, unscrutinised powers to the minister to interfere in the Enterprise Agreements protecting independent trucking companies indefinitely.

One Nation supported this bill because we wanted to offer immediate relief to our critical trucking industry. However, A One Nation government will amend it. We will mandate a sunset clause, require a formal declaration of emergency as a legislative instrument, and ensure measures expire as soon as the crisis ends.

The government should have invoked the Liquid Fuel Emergency Act 1984 weeks before this legislation was introduced. Doing so would have forced foreign multinational oil companies to release hoarded fuel reserves into the market, reining in regional price gouging.

While trucks keep Australia supplied, farmers face doubled fuel costs, making winter crop planting unsustainable. Labor is picking winners while ignoring regional Australia, small businesses, and manufacturing.

Australia is in this position because Net Zero ideology was prioritised over practical energy security.

Domestic oil production must be restored. We need to build new refineries, construct gas-to-petrol plants and establish a domestic gas reservation so Australia is never left vulnerable to foreign supply shocks again.

— March | Senate Speech

Transcript

Senator Roberts: The Fair Work Amendment (Fairer Fuel) Bill 2026 is a drop in the tank when it comes to managing the fuel crisis. The bill relates to road transport contract chain orders which used to be called delivery contracts. It allows those contracts between businesses and their trucking companies to be renegotiated as a result of this fuel crisis. Currently, that process takes 12 months or more. This bill may—’may’, not ‘will’—reduce the lead time on a contract renegotiation to a few weeks. 

The road freight industry is critical to the functioning of the economy. Everything in our supermarkets, hardware stores and shopping centres is trucked in. If trucks stop moving because the government failed to secure a supply of fuel, affordable diesel, then people starve; chemists, doctors, dentists and hospitals run out of supplies; casual employees and apprentices are put off work; and loans, rents and mortgages go into arrears. And it’s all downhill from there. It’s that simple. 

This bill amends legislation that Labor introduced in 2024 which created these road transport contract chain orders without any emergency provisions or the ability of the government to step in when the public interest is not being protected. This bill corrects the Albanese government’s lack of foresight and forethought. This government needs to slow down its conga line of poorly written bills—we’ve had so many—take the time to consult and stop using the committee system as a rubber stamp. Had it done that, these provisions would most likely have already been included. The problem with this bill is that it doesn’t actually relate to the current fuel crisis, yet it gives the minister powers to interfere in any RTCCO—road transport contractual chain order—it wishes for the rest of time. Powers are not subject to parliamentary scrutiny, and there’s no requirement to make an order introducing an emergency RTCCO through a legislative instrument. Power without accountability is always a very bad idea. Emergency powers exist for emergencies, not to tip the scale in favour of your union mates. 

One Nation will support this legislation. Given we have not had the time to prepare amendments to introduce checks and balances, One Nation will amend the bill when we take government. Our changes will require a declaration of emergency to be a legislative instrument setting out the reasons for the order and include a sunset clause, a trigger, so that, unlike what Labor is trying to do, measures do not extend past the end of the crisis. 

One Nation points out that, while the trucking industry deserves the help this bill may provide, so does the rest of Australia. Due to a doubling of fuel costs, farmers are struggling to fund their harvests. Farms’ fuel bills must be paid in 14 days, while farmers are not paid for their harvests for an average of two months. With fuel costs rising from, as in one case I was told about, $15,000 per week to $30,000 a week, there are massive extra amounts for family farms to bankroll themselves—and they can’t. Around Australia today, farmers are unable to plant their winter crops. The spring harvests will be down, and fuel prices will go up. The Labor government is hollowing out the bush again. It’s driving people into the cities, and it’s running the fuel crisis to push that objective. 

If the government had the best interests of Australia at heart, it would have already invoked the Liquid Fuel Emergency Act 1984. The act enables the Commonwealth government to prepare for and respond to severe shortages of crude oil and refined liquid fuels such as petrol, diesel and jet fuel. It supports Australia’s obligations under the International Energy Agency agreement and emphasises cooperative responses with industries, states and territories. It provides strong ministerial powers as a last resort if market mechanisms are insufficient. The act requires the minister to be satisfied that there is or is likely to be a serious shortage of liquid fuels with national implications that cannot be adequately addressed without using this bill’s special powers. Powers include directing industry-held stocks of crude oil and liquid fuel, such as requiring companies to maintain, purchase or release specified reserves at certain locations and, secondly, regulating fuel sales and distribution across Australia, including bulk-supply restrictions and retail rationing. This legislation is there, and it should have been invoked weeks ago. This is day 32 of the Iran conflict—32 days for the Prime Minister and his ministers to stop the selfies and cringy TikTok videos and address the real crisis; 32 days of horror for the economy, the devastation of which will ensure the ALP do not form government again. 

Let me explain what’s going on here. These powers require the minister to do certain things. One of those things would be to force foreign multinational oil companies to direct the fuel they’re currently hoarding and supply some into the spot market. This is the market which supplies smaller outlets, especially in rural and regional areas. These are the outlets that suppliers are currently charging way over the odds for their petrol, causing price spikes. Then, once they’ve driven price spikes in the regions, the city outlets that those same multinational fuel companies own themselves put up prices to match prices imposed on the bush. The outcome is price gouging. It’s calculated, and it’s deliberate. The government rammed through legislation last week to increase the fines for doing exactly that, but it will take years before the ACCC’s legal action against multinational fuel companies gets through the courts. They’ll get a rap on the knuckles and agree to a small fine, banking windfall profits and most likely doing it all again. The Albanese Labor government is once again proving it’s the best friend of foreign multinationals and no friend of everyday Australians. 

The Fair Work Amendment (Fairer Fuel) Bill 2026 will result in transport charges rising—and that’s the point of the bill. Before the crisis, getting a tonne of produce to market cost $100. With the fuel shock, it’s now $175. This legislation will drive that price even higher. This isn’t the government helping the trucking industry; it’s the government making the rest of the economy pay more to help the trucking industry. Food will be dearer. Clothing will be dearer. Consumers will pay. The answer is to reduce the price of fuel, not force up the price of freight. 

Last Friday, the National Road Transport Association, NatRoad, published comments critical of the legislation, pointing out: 

“… most small to medium operators simply could not survive until Fair Work Changes flowed through.

Here’s another quote: 

“… recent announcements, including emergency Fair Work Commission powers and moves toward better fuel monitoring failed to address the immediate needs of industry.…

NatRoad is calling on the Federal Government to urgently implement three … measures to keep trucks on the road and prevent further economic disruption: 

  • Activate emergency financial support payments for affected transport businesses 
  • Introduce a six-month moratorium on heavy vehicle equipment loan repayments through lender hardship arrangements 
  • Immediately remove the Road User Charge for heavy vehicles”

The national road user charge is a tax of 32.5c per litre of diesel. Operators claim back the fuel levy of 52c per litre and then pay the road user charge. One Nation calls on the government to suspend the road user charge for heavy vehicles for as long as this crisis continues. Taking out the fuel duty and the GST will make a large difference to trucking industry cash flows and their ability to get through this crisis—and reduce grocery bills. Invoking the Liquid Fuel Emergency Act 1984 to stop multinational fuel companies profiteering will reduce fuel prices and reduce the need for freight charges to rise. 

The truth is that every sector in the economy is in need of assistance. The knock-on from extreme fuel prices extends right through the economy. Trucking has the potential to impact everyday Australians—and every Australian—and more quickly than other sectors, so it deserves first attention. We see no problem in that. My objection is that the Labor government is picking winners, helping some but not others based on its radical communist ideology. Labor says to small business, ‘No assistance for you’; to manufacturing, ‘No assistance for you’; to farmers, ‘Definitely no assistance for you lot’; to rail transport and ports, ‘No assistance for you’; to Defence, ‘No fuel for you.’ 

The Albanese Marles government refused the request from President Trump to participate in international efforts to make safe the Strait of Hormuz so Australian bound fuel tankers can get through to Singapore or South Korea to refine our petrol for us. This raises the question: Australia doesn’t have a defence strategic liquid fuel reserve, so just how much fuel do our armed forces actually have? And why did the Navy ponce around in Exercise Kakadu Fleet Review last week? This wasn’t a training exercise; this was to show off. From where did those boats come, to where are they returning, and how much fuel was wasted for a photo op in the middle of a fuel crisis? Fair dinkum! The Navy has now caught the selfie virus. Heaven help us. 

The Albanese government snubbed the President of the United States, our greatest ally, while grovelling on hands and knees to him for fuel. ‘Please, sir,’ the Prime Minister pleads, ‘can we please have some of your oil reserve, as we sold ours off for a quick buck?’ The Albanese Labor government is a dishonest national disgrace. How did you not see this coming? One Nation have been banging on about the need for restoring oil production and increasing our domestic reserve since 2020—and about fuel security since 2016. 

Now, I know social media is circulating a Liberal Party meme claiming that One Nation voted against giving subsidies to the Kwinana and Altona refineries in 2020 to keep them in production. Let me address that first, with a history of closures. Port Stanvac closed under the Howard Liberal government in 2003. Clyde closed under the Gillard Labor government in 2012. Kurnell closed under the Liberals and Nationals in 2014. Bulwer Island closed under the Liberals and Nationals in 2015. Kwinana closed under the Liberal and Nationals in 2021. Altona closed under the Liberals and Nationals in 2021. Now, the meme circulated says that One Nation voted against the fuel security package in 2021, which we did. What the meme does not tell you the bill we opposed was a stunt. BP and Exxon had already announced the closure before the bill was ever written. The Liberal-National government designed the bill to pretend to the public in the 2022 election that the Liberals cared about fuel refining—all to look good, not do good. Exxon and BP never received the money. They knocked it back because plans for closure were underway, and $2.3 billion wasn’t enough to change their minds. So what did we vote against? Nothing—a Liberal Party con, a fraud on the voters. I’m so pleased the Liberals dug that one up though; it shows they haven’t changed. 

By the way, I remind people that Pauline Hanson said: ‘Why are we handing over money? We need equity.’ No, the Liberals didn’t want equity. Just hand over the cash. In her speech in the Liberals’ 2021 bail-out bill, Senator Pauline Hanson called on the government to use that money to buy those refineries and put them into the hands of Australian people to maintain our domestic refining capacity. Of course, the Liberals and the Nationals ignored that request. 

Let’s be clear. Australia is in this mess because the Liberal Party, the National Party, the Greens, the Teals and the Labor Party all still believe in climate change. I tested that last week with my amendment to the appropriation bills that called for the net zero spending to be removed from the budget. Their vote on our amendment is damning. Labor opposed. Liberals opposed. Nationals opposed. Greens opposed. Teal David Pocock opposed. These parties all support giving away another $9 billion to climate prostitutes feeding off the UN net zero scam—parasites killing Australia’s energy and economy. So, of course, they’re not going to do anything to help the petrol and diesel industry. This government is making a horrible mess of the fuel crisis because it’s making decisions based on ideology not practicality—on a scam and contrary to the hard, empirical scientific data. And the globalist Liberals and Nationals are right there with them. Shame on you all! 

We need to drill for oil; restore production in the known deposits—and we’ve got plenty; get started building new refineries; and, in particular, build new gas to petrol plants to use Australia’s cheap, natural gas to make our own petrol again. One Nation introduced legislation for a domestic gas reservation to provide the gas we need for that, and of course the uniparty voted it down. When will people realise these tired old parties love their ideology and their donors and hate anyone who doesn’t agree with their ideology or with their donors? One Nation cares about everyday Australians, and that’s why we’re surging in the polls. It’s not about patriotism or nationalism. Our surge is the public realising that the old parties do not have their backs and One Nation does. 

To remind the Senate, One Nation has already called for the removal of the fuel excise and a three-month moratorium on GST on liquid fuels. Taken together, they will reduce fuel prices outside the trucking industry by 75 cents a litre—a real benefit for everyday Australians. The government has refused to take that measure, even while Treasury is making out like bandits raking in hundreds of millions of dollars each month in additional GST payments on crazy-high fuel prices. I haven’t heard a state premier complain about that either, as they benefit from the GST. The states must be held to account, as well, for their greed. 

Everyday Australians are filling up their vehicle in terror and, yes, in anger at the Albanese government’s greed and arrogance and distance. It’s $100 to fill a small car and up to $200 to fill a family car in the most energy-rich nation on Earth. The biggest exporter of hydrocarbons in the world is Australia. Groceries will go unbought; that’s if they’re available. Clothing and homeware stores are already reporting slow-downs. Your children won’t get those new clothes, new shoes or quality groceries, because their parents are having to pay for the stupidity, the arrogance, the dishonesty, the deceit and the greed of the Chalmers-Albanese Labor government. I foreshadow One Nation’s second reading amendment on sheet 3747. 

I’m pleased the government sees the fuel crisis is real. When we mentioned it first, One Nation were called far right extremists for labelling it. I’m pleased the government sees the regional crisis is now real. Again, One Nation called it first because we listen. Suspend fuel taxes now!

The following is Senator Roberts’ submission to the Senate Economics Legislation Committee inquiry into the Senator’s Banking Amendment (Deposits) Bill 2020. See the media release in relation to this submission here.

Banking Amendment (Deposits) Bill 2020

I would like to thank the almost 200 submissions in support of the Banking Amendment (Deposits) Bill 2020 (the Bill). Opposition from the financial establishment has been to maintain the ambiguous wording in the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2018 (the Act).

I would advise the Committee as follows.

Summary by section

  1. The $250,000 FCS guarantee triggers once a bank fails.  A bail-in is designed to save a bank from failing, meaning the FCS does not prevent a bail-in because the bail-in comes first.
  2. APRA’s submission requires the phrase “any other instrument” to remain to meet future developments in financial products. I agree, this bill retains that wording and adds a single modifier – ‘except retail deposits’.  APRA’s objection is moot.
  3. Some submissions suggest a bail-in conflicts with Section 2A of the Banking Act which protects deposits.  This argument flounders on the effect of a bail-in, which is to save the bank.  In turn this action protects some deposits immediately and the rest are restored years hence.  The wording of 2A does not preclude a bail-in, it precludes an unsuccessful one.  
  4. The IMF are on record as indicating the Crisis Resolution Powers of the 2018 Act have primacy over the general banking directions (S2A) provided in the Banking Act. These crisis powers allow APRA to order a bail-in before the FCS guarantee would start.
  5. Some submissions relied on the absence of a provision in account Terms & Conditions as the explanation for why bail-in provisions do not apply to retail deposits. As banks are adding this clause to their Terms & Conditions, I would consider this objection moot.
  6. APRA have indemnified bank executives for actions they may take in the implementation of emergency powers, including a bail-in.
  7. Bail-in involves banks issuing new shares in exchange for the funds they take out of depositors’ accounts. This double hit – reduced goodwill towards the brand and dilution of share prices – will comprise a massive hit to our Super Funds, self-managed retirees and the more than one million Australians with bank shares.
  8. Australia is obligated by membership in international banking and financial agreements to have in place a deposit bail-in capability that specifically prevents taxpayers’ money being used to save a bank. It is likely that this clause will prohibit the Treasurer from activating the FCS guarantee should a bail-in fail, simply because that is taxpayers’ money as well.

There is no doubt that the existing legislation allows for a bank bail-in. My bill asks all Senators a simple question – is this what you want? Millions of super fund members and bank shareholders await your answer.

1. The $250,000 FCS Deposit Guarantee

The Financial Claims Scheme (FCS) deposit protection was an excellent initiative from the Rudd Labor Government back in 2008.  However, things have changed since then.

The FCS is not active, and therefore “The Scheme is activated at the discretion of the Australian Treasurer”.[1] As confirmation, in 2018 APRA Chair Mr Wayne Byres addressed the Economics Legislation Committee, regarding the FCS: “Well, it’s not currently activated in the sense that it’s only activated when a bank fails…the FCS is there to make sure that particularly retail depositors but also depositors with amounts up to $250,000 are not at risk of losing their money, should a bank fail.”

The Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017, EM states: “In the unlikely event that a bank fails the Treasurer may activate the FCS…these specific depositor protections would generally only apply as a last resort, once an ADI* cannot be resolved.”

The ABC in their article on this bill raised the spectre of a run on the banks if, for instance the real estate market melts down.[2] The Government seems to have considered the impact of a bank run on the effectiveness of a bail-in, and recently added secrecy provisions to the Act so that the public would not be alerted prior to a bail-in.

Melissa Harrison’s submission 60 used the IMF’s 2019 assessment of the FCS: “The Banking Act does not compel APRA to make the appointment of a statutory manager public… As the authorities are well aware, the statutory management power should be used very cautiously as the appointment of a statutory manager could destabilize the bank by triggering or exacerbating funding runs.[3]

A bail-in would occur prior to the FCS guarantee being authorised, with the new secrecy provisions leaving customers in the dark until their money disappears from their bank account.

A few other issues with the $250,000 guarantee are:

  1. It is organised by bank by account holder. This means accounts owned by foreign citizens or entities would be bailed-in using Australian taxpayers’ funds;
  2. The FCS is unfunded;
  3. The FCS is limited to $20bn per bank. The Commonwealth Bank, for example, has 16 million account holders. $20bn will only cover 80,000 of those to the full $250,000. Alternatively, cover could be extended to all 16 million account holders but only for the first $1250.  

2. APRA: We need ‘any other instrument’ in the Act

From APRA’s submission 197: “We agree that if the intention of the Act was to only cover Additional Tier 1 and Tier 2 capital, an addition of ‘any other instrument’ would have been unnecessary. However… ‘any other instrument’ was included in contemplation of further classes of capital which may be added in the future.…the reference to ‘any other instrument’ was neither intended to, nor does it in fact extend to, deposits.”

*ADI = Authorised Deposit Taking Institution. For accessibility this submission uses “bank” wherever possible.

I agree with APRA that this reference is needed for future developments. This is why the wording of the bill does not remove the phrase “any other instrument”. It simply applies a single modifier “not including a deposit account” and then defines what a deposit account is.

As this clause still operates in the manner requested by APRA, their argument is moot.

Treasury have also objected to including this definition in the Act because it introduces a definition not in use elsewhere in the Act. While I feel this is clutching at straws, Treasury are free to introduce an amendment to prevent our definition being used more widely.

3. Bail-in is inconsistent with depositor protection (S2A)

From APRA’s submission 197: “APRA has broad directions powers, all of which must be used consistent with the objects of the Banking Act (particularly the paramount objective of protecting depositors). As such, APRA could not direct the insertion of a conversion or write-off provision into customer deposit accounts given such a direction would be inconsistent with the objective of depositor protection. Such a direction would be found to be invalid.”

This argument flounders on the effect of a bail-in, which is to PROTECT depositors’ funds by:

  1. Converting some part of depositors’ funds to a security (forced purchase of shares in the bank) that can be converted back to funds upon sale at a future time; 
  2. This saves the bank from failure and in turn, protects the remaining depositor funds;
  3. 2A does not prevent a bail-in, it prevents a failed bail-in.

This bill is necessary because of the loss of amenity in the period between the funds being seized and many years down the road, when the share price recovers and the shares redeemed.  Small business, retirees, low income earners will lose homes and businesses in a bail-in.

4. IMF statements conflict with Treasury and APRA submissions

The IMF disagrees with APRA on the strength of S2A protections. An IMF report states:[4]

“The new ‘catch-all’ directions powers in the 2018 Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill provide APRA with the flexibility to make directions to the ADIs that are not contemplated by the other kinds of general directions listed in the Banking Act.”

In a February 2019 assessment of Australia’s bank resolution and crisis management, the International Monetary Fund noted:[5]

“[APRA’s] Direction powers are also a key element in the resolution process for a distressed ADI; directions can be used to implement a range of resolution options, including facilitating recapitalization. Hence, the framework allows for the possibility that a problem bank could be resolved while under private control as APRA could order an ADI to recapitalize.”

The IMF are saying that the 2018 Crisis Resolution Powers have primacy over the general directions statements in the Banking Act. These allow APRA to ‘facilitate recapitalisation’ which is the definition of a bail-in and “under private control” means before it goes bust and the $250,000 guarantee starts.

If APRA and Treasury’s submissions are correct, then the IMF is wrong.

5. Banks can’t change their Terms & Conditions to allow a bail-in

APRA submission: “While an ADI may unilaterally change terms and conditions for customer deposits, it may not do so where the change is to facilitate a conversion or write-off of customer deposits. This is because to do so would be inconsistent with unfair contract terms legislation under the ASIC Act. A term allowing an ADI to write off or convert a retail deposit would amount to an unfair contract term. Moreover, even if an ADI was not prohibited from changing its terms in this way by unfair contract terms legislation, APRA would use its powers under the Banking Act to protect depositors and prohibit an ADI from changing these terms to insert write-off provisions.”

Treasury’s submission contained the same argument.The legislation referenced actually states: “Only a court can decide whether or not a term is unfair.  “ So the legislation does NOT prevent bail-in provisions being added to Terms & Conditions. The protection comes from:

  1. APRA using their oversight powers to unwind such an attempt; or
  2. Affected depositors taking the might of the Australian banks to Court to get a ruling that this was indeed an unfair contract term.

Neither of these has happened. APRA has however had an opportunity to intervene when our banks started adding bail-in provisions to their Terms & Conditions. Please view submission 166 from Adams Economics, Annexe C for more.

APRA and Treasury are relying on a protection provided by APRA’s regulation powers that only exists if those powers are used.

6. APRA indemnifies bank executives who carry out a bail-in

In its 2019 assessment the International Monetary Fund noted:[6]

“Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill, provides for clearer immunity for an institution, its directors, management, employees and agents when taking reasonable steps to comply with an APRA direction…the Bill provides that a person is not liable in an action, suit or proceeding (whether criminal or civil) in relation to anything done, or omitted to be done, in good faith by the person if it is done for the purposes of complying with a direction given by APRA.”

This indemnity protects bank executives from legal action over their decision to conduct a bail-in.

7. Super Funds and self-funded retirees will be devastated

Our banks are some of the most valuable, even beloved brands in Australia. The financial damage to their share price from the loss of goodwill from a bail-in will be in the billions.

A greater loss though will come from the issuing of new shares to depositors in exchange for their savings. This dilutes the share price for existing shareholders. This is the reason for a bail-in given by the IMF – the cost of the bail-in must be worn by shareholders, not taxpayers.

Who are these shareholders if not taxpayers? Fourteen million Australians have superannuation accounts which contain a significant exposure to bank shares. There are more than a million everyday Australians who own bank shares directly.

Australia privatised our State Bank (The Commonwealth Bank) by giving everyday Australians discounted shares. Bank share ownership in Australia is the highest in the world, and our compulsory super ranks third in the world for number of people covered in percentage terms.

The IMF/G20 can champion a bail-in over a bail-out to protect taxpayers all they like. In Australia our taxpayers and our bank shareholders are one and the same.

The Government has looked the other way while banks have lent to the real estate market at the cost of compromising their loan book diversity. If it all melts down that is on the Government, not shareholders.

Government intervention by recapitalisation financed with Government bonds transferred over to the banks over time will, in the long run, not cost taxpayers money but it will avoid millions of everyday Australians getting done over by the IMF.

8. Further notes on our international obligations

Depositors are considered ‘unsecured creditors’ to a bank. This is apparent in the RBA publication ‘Depositor Protection in Australia’, which comments on “…other unsecured creditors, including depositors”.[7]

The Australian government’s 2014 ‘Financial System Inquiry Final Report’ acknowledged:[8]

“Inevitably, failures can and will occur, the system will be exposed to crises and, at times, unsecured bank creditors will be exposed to loss.

The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. The Board includes all G20 major economies. Australia is a member and participates in the process.

The Financial Stability Board’s (FSB) Key Attributes recommend that a resolution regime should “allocate losses to firm owners (shareholders) and unsecured and uninsured creditors (depositors)”.[9]

Australia is represented on the FSB by the Reserve Bank of Australia and Treasury and we have endorsed the FSB’s ‘key attributes’.

A further look at the ‘key attributes” reveals this provision:[10]

The TLAC standard has been designed so that failing G-SIBs [banks] will have sufficient loss-absorbing and recapitalisation capacity available in resolution for authorities to implement an orderly resolution that minimises impacts on financial stability, maintains the continuity of critical functions, and avoids exposing public funds to loss.

From submission 166 from Adams Economics: At the 2010 G20 Seoul Meeting, the Australian Government committed Australia to the Summit Document13, which included paragraph 30: 

“We reaffirmed our view that no firm should be too big or too complicated to fail and that taxpayers should not bear the costs of resolution.”

9. Conclusion

If I may give the last word to Queensland LNP Senator Amanda Stoker. On the 5th November 2018, Senator Stoker explained in a letter to a constituent her view of the Act: 

“The legislation facilitates bail-in as a type of resolution power which is available for dealing with financial institution distress. This was done after the G20 leaders endorsed a new Financial Stability Board standard for Total Loss-absorbing Capacity.”

I thank the Senator for that clarity. Clearly the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2018 was in fact an implementation of the Financial Stability Board’s requirements for member nations to have legislation that allows a bank bail-in as a way of preventing public funds being used to bail out a bank.

Could it be that as our international agreements require bail-in rather than taxpayer funded bail-out and the Government, The Treasury and APRA have spent two years hoping nobody notices? I wonder because New Zealand have enacted their bail-in laws in the open, based on the same agreements we are signatory to.

The Government has a simple choice:

Either: Oppose our bill and admit the wording of the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2018 was indeed to give APRA the power, and the banks the right, to bail-in depositor funds. Then be honest with the electorate that banks have been given bail-in powers under a smoke screen of ambiguous wording.

Or: Pass the Banking Amendment (Deposits) Bill 2020 to give depositors confidence in their bank deposits and provide clarity for stakeholders.


[1] Grant Turner, ‘Depositor Protection in Australia’ [2011] (December) Reserve Bank of Australia Bulletin 45-55, 51.

[2] Nassim Khadem, ‘Coronavirus crisis heightens fears bank deposits could be wiped out under ‘ambiguous’ laws’, Australian Broadcasting Corporation (online, 16 July 2020) https://www.abc.net.au/news/2020-07-16/coronavirus-crisis-heightens-fears-bank-deposits-could-be-wiped/12458462.

[3] International Monetary Fund – Monetary and Capital Markets Department, ‘Australia: Financial Sector Assessment Program-Technical Note-Bank Resolution and Crisis Management’ (Country Report No. 19/48, 21 February 2019).

[4] International Monetary Fund – Monetary and Capital Markets Department, ‘Australia: Financial Sector Assessment Program-Technical Note-Bank Resolution and Crisis Management’ (Country Report No. 19/48, 21 February 2019).

[5] International Monetary Fund – Monetary and Capital Markets Department, ‘Australia: Financial Sector Assessment Program-Technical Note-Bank Resolution and Crisis Management’ (Country Report No. 19/48, 21 February 2019).

[6] International Monetary Fund – Monetary and Capital Markets Department, ‘Australia: Financial Sector Assessment Program-Technical Note-Bank Resolution and Crisis Management’ (Country Report No. 19/48, 21 February 2019).

[7] Grant Turner, ‘Depositor Protection in Australia’ [2011] (December) Reserve Bank of Australia Bulletin 45-55.

[8] The Australian Government the Treasury, Financial System Inquiry(Final Report, 7 December 2014).

[9] Ulf Lewrick, José María Serena Garralda and Grant Turner, ‘Believing in bail-in? Market discipline and the pricing of bail-in bonds’ (Working Paper No. 831, Bank for International Settlements, December 2019).

[10] Financial Stability Board, ‘FSB issues final Total Loss-Absorbing Capacity standard for global systemically important banks’ (Press Release 74/2015, 9 November 2015).