Australia's domestic arbitral legislation reform: October 2012 | Practical Law

Australia's domestic arbitral legislation reform: October 2012 | Practical Law

Australian domestic arbitration legislation has continued to advance through a number of states and territories, with the purpose of modernising and reforming domestic arbitration legislation by adopting legislation based on the UNCITRAL Model Law. The result will be broadly to align domestic and international legislation. (Free access).

Australia's domestic arbitral legislation reform: October 2012

Practical Law UK Legal Update 4-522-1985 (Approx. 3 pages)

Australia's domestic arbitral legislation reform: October 2012

by Andrew Robertson (Partner) and Michael Bayne (Law Clerk), Piper Alderman
Published on 01 Nov 2012Australia
Australian domestic arbitration legislation has continued to advance through a number of states and territories, with the purpose of modernising and reforming domestic arbitration legislation by adopting legislation based on the UNCITRAL Model Law. The result will be broadly to align domestic and international legislation. (Free access).
In 2009, the Standing Committee of Attorney General (SCAG) agreed to develop uniform legislation across all States and Territories which would govern domestic arbitration in Australia. These discussions coincided with the amendments to the International Arbitration Act 1974 (Cth), which brought Australian arbitration into line with the UNCITRAL Model Law (see the International Arbitration Amendment Act 2009 (Cth), discussed in Legal update, Australia advances arbitral law reform). Similarly, the domestic arbitral legislative reforms had the effect of applying the Model Law as the governing arbitral rules throughout Australia pursuant to a number of Commercial Arbitration Acts which apply to arbitrations where all parties do business or reside in Australia. (see Legal Update, Australia to get new domestic arbitration legislation.)
Parties to domestic arbitration agreements have the option to choose the applicable jurisdiction. However, the staggered commencement of the domestic Acts (as outlined below) has complicated the choices made by parties to arbitration agreements, given that the Act that will apply will be the Act at the time of the commencement of the arbitration and not the Act in force when the arbitration agreement comes into effect.
The current status in the process of the domestic arbitral legislation reforms is:
  • New South Wales was the first state to introduce the uniform legislation. The new Act came into force on 1 October 2010.
  • Victoria's Act commenced on 17 November 2011.
  • The Act commenced operation in South Australia on 1 January 2012.
  • The Northern Territory Act commenced on 1 August 2012.
  • The Tasmania Act commenced on 1 October 2012.
  • In Western Australia, the Act received royal assent on 29 August 2012, however a commencement date has not yet been set.
  • In Queensland, the Commercial Arbitration Bill was introduced before Parliament, however this Bill lapsed on 19 February 2012 due to the dissolution of Parliament for the Queensland State election. Parliament resumed on 15 May 2012, and a new Bill was introduced on 30 October 2012.
  • The Australian Capital Territory has not yet introduced a Bill before its Parliament. There has been no indication of when the Bill will be put before Parliament for consideration.
We will continue to monitor the rolling out of the legislation and provide further updates in the future.