In July 2010, new legislation governing international arbitration in Australia, the International Arbitration Amendment Act 2010 (Cth), passed into law and created a framework for international arbitration reflecting that used throughout the world. This reform was complemented by the Commercial Arbitration Bill (Cth), a Model Law drafted by the Standing Committee of Attorneys-General with the key purpose of creating a uniform framework for domestic arbitration in Australia. Aims included aligning Australian domestic arbitration processes with international arbitration processes, enhancing the powers of arbitrators and increasing efficiency and certainty by reducing the scope for intervention by Courts.

As reported in the November 2011 edition of Critical Path, the process of domestic reform was led by NSW in 2010 with other states and territories developing legislation based on the Model Law. While the progress towards adopting a uniform commercial arbitration legislation in each state/territory has been staggered, momentum grew towards the end of 2011. The uniform Model Law has been adopted and is currently in operation in NSW, Victoria and South Australia. Both Tasmania and the Northern Territory have also assented to a uniform Act and are currently in the process of setting a commencement date. The current status of each state/territory is detailed below.

In Operation Awaiting Commencement Awaiting Assent No Action
New South Wales - Commercial Arbitration Act (NSW) 2010 – the Act has been operating in New South Wales since 1 October 2010. Northern Territory - Commercial Arbitration (National Uniform Legislation) Act (NT) 2011 – this Act received Royal Assent on 31 August 2011. The Act will commence on a day to be fixed by the Territory Administrator by Gazette notice. Western Australia - Commercial Arbitration Bill (WA) 2011 – this Bill was introduced into parliament on 15 June 2011 and is currently under review by the Legislative Council and the Parliamentary Secretary representing the Attorney General. Australian Capital Territory - yet to introduce a Bill into parliament.
Victoria - Commercial Arbitration Act (VIC) 2011 – a Bill was introduced into parliament on 16 August 2011 and received Royal Assent on 18 October 2011. The Act commenced on 17 November 2011. Tasmania - Commercial Arbitration (Consequential Amendments) Act (TAS) 2011 – this Act was passed by both Houses of Parliament and given Royal Assent on 7 September 2011. It has yet to come into force. Queensland - Commercial Arbitration Bill (QLD) 2011 – this Bill was introduced into parliament on 15 November 2011 and has not yet progressed any further.
South Australia - Commercial Arbitration Act (SA) 2011 – a Bill was introduced into parliament on 4 May 2011 and received Royal Assent on 22 September 2011. The Act commenced on 1 January 2012.

It is likely that a Commercial Arbitration Act will be in operation in at least five states/territories by the end of this year. It is also of note that while the Queensland and Western Australian Bills are currently undergoing minor drafting amendments to correct errors and inconsistencies, the general construction of each Act has been consistent with the uniform legalisation proposed by the Standing Committee in May 2010.

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