Anthony Chisholm (Queensland, Australian Labor Party, Assistant Minister for Regional Development) Share this | Hansard source

I'd like to thank the senators who have contributed to this debate. Australia is responding to the concerns of Pacific and Timor-Leste governments by introducing the ability for the Commonwealth to provide guarantees to eligible Australian banks to maintain their Pacific operations and their enduring presence in the region, because we know secure access to the global financial system and banking services is critical for economic growth, financial inclusion and overall stability.

The Pacific Banking Guarantee Bill 2025 allows the Commonwealth to offer support to eligible Australian banks—a guarantee which transfers risk of default on low-risk exposures to the Commonwealth. It provides for a special appropriation on the Consolidated Revenue Fund, allowing the Commonwealth to pay any valid claims for the full amount of any guarantee in a timely manner in the unlikely event of any default. Provision of this guarantee is not about any individual country. It is about our commitment to working to maintain access to enduring banking services and is about our connection to the global financial system in the Pacific. I commend this bill to the Senate.

Question agreed to.

Bill read a second time.