Pacific Banking Guarantee Bill 2025

Stage by Stage

Summaries in reported speech - not a transcript. In date order, both chambers.

1. Wednesday 12 February 2025 · House of Representatives

   Second Reading

   The Treasurer introduced legislation to allow the Commonwealth to guarantee Australian banks' operations in the Pacific region against potential defaults. The measure aims to prevent the withdrawal of correspondent banking services, which threatens to isolate Pacific communities from the global financial system. Eligible banks would pay fees for these guarantees, ensuring the scheme is not a subsidy. The government highlighted this bill as part of broader efforts to strengthen regional partnerships and secure banking access both in the Pacific and regional Australia. The debate was adjourned following the Treasurer's speech.

   Outcome: Debate adjourned.

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2. Thursday 24 July 2025 · House of Representatives

   Second Reading

   The debate concerned the introduction of the Pacific Banking Guarantee Bill 2025, which aims to secure banking access in the Pacific region. Assistant Treasurer Daniel Mulino moved the motion for the second reading, outlining the bill's purpose and the government's broader strategy. As no other members spoke before the debate was adjourned, the summary reflects only the government's position. The outcome was the adjournment of the debate.

   Outcome: The debate was adjourned.

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3. Wednesday 30 July 2025 · House of Representatives

   Reference to Federation Chamber
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4. Wednesday 30 July 2025 · House of Representatives

   Second Reading

   The debate concerned the Pacific Banking Guarantee Bill 2025, which establishes a framework for the Commonwealth to guarantee Australian bank operations in the Pacific region to prevent debanking. Government members argued the bill was essential for regional stability, security, and supporting remittances, highlighting the rapid decline in correspondent banking relationships. Opposition members supported the bill's principles but raised concerns about the uncapped appropriation and lack of sunset clauses, recommending referral to the Senate Economics Legislation Committee for scrutiny. The bill was passed without amendment.

   Outcome: The bill was read a second time and reported to the House without amendment.

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5. Wednesday 30 July 2025 · House of Representatives

   Third Reading
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6. Thursday 31 July 2025 · Senate

   Second Reading

   Tim Ayres moved the second reading of four government bills in the Senate. He argued that the ASIO bill extends compulsory questioning powers to allow for necessary reforms, while the Defence Housing bill expands housing support to include AUKUS personnel and partner organisations. Ayres stated the pathology bill repeals outdated fees to reduce administrative burden, and the Pacific Banking Guarantee bill secures financial services in the region through Commonwealth guarantees. The debate was adjourned to the next sitting period.

   Outcome: Further consideration of the second reading was postponed until the first sitting day of the next parliamentary session.

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7. Thursday 31 July 2025 · Senate

   First Reading
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8. Thursday 28 August 2025 · Senate

   In Committee

   The debate focused on the Pacific Banking Guarantee Bill 2025 during committee stage, specifically addressing concerns raised by the Scrutiny of Bills Committee regarding the use of a standing appropriation. Senator Roberts questioned the lack of parliamentary oversight and the open-ended nature of the financial commitment. Assistant Minister Chisholm and Minister Ayres defended the measure as necessary to secure Australian banking presence in the Pacific, arguing that annual appropriations were insufficient for potential urgent liabilities. They clarified that the guarantee was limited to specific eligible liabilities, involved annual fees paid by the bank, and included commitments to maintain services and invest in digital infrastructure.

   Outcome: The debate concluded with Minister Ayres reiterating that the guarantee supported regional banking access and did not provide direct funding to banks.

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9. Thursday 28 August 2025 · Senate

   Second Reading

   The Senate debated the Pacific Banking Guarantee Bill 2025, which establishes a framework for the Commonwealth to provide financial guarantees to Australian banks operating in the Pacific region. The government argued the bill was essential to maintain banking access, support remittances, and counter the decline of correspondent banking relationships, citing a specific $2 billion guarantee for ANZ. Opposition and crossbench members supported the bill's strategic objectives but raised concerns regarding the lack of a spending cap, insufficient transparency on guarantee terms, and potential negative impacts on local Pacific banks like Bank South Pacific. The bill was passed after speeches from government ministers and opposition senators.

   Outcome: The bill was read a second time and agreed to.

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10. Tuesday 2 September 2025 · Senate

    In Committee

    The Senate considered the Pacific Banking Guarantee Bill 2025 in committee. Senator Roberts questioned the principle of charging premiums for guarantees, citing data on domestic bank savings from existing guarantees. Minister Ayres rejected the characterisation of the guarantee as a subsidy. The bill was agreed to and reported without amendment.

    Outcome: The bill was agreed to and reported without amendment.

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11. Tuesday 2 September 2025 · Senate

    Third Reading
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