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This is a Bill, not an Act. For current law, see the Acts databases.


DISABILITYCARE AUSTRALIA FUND BILL 2013

 

 

2010-2011-2012-2013 

 

The Parliament of the 

Commonwealth of Australia 

 

HOUSE OF REPRESENTATIVES 

 

 

 

 

Presented and read a first time 

 

 

 

 

 

 

 

 

 

DisabilityCare Australia Fund Bill 2013 

 

No.      , 2013 

 

(Finance and Deregulation) 

 

 

 

A Bill for an Act to establish the DisabilityCare 

Australia Fund, and for related purposes 

   

   

   

 

 

i       DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Contents 

Part 1--Preliminary

 

1

 

Short title ........................................................................................... 1

 

Commencement ................................................................................. 2

 

Simplified outline .............................................................................. 3

 

Definitions ......................................................................................... 4

 

Crown to be bound ............................................................................. 7

 

Extension to external Territories ........................................................ 8

 

Extra-territorial application ................................................................ 8

 

Object ................................................................................................. 8

 

Part 2--DisabilityCare Australia Fund

 

9

 

Division 1--Introduction

 

9

 

Simplified outline .............................................................................. 9

 

Division 2--Establishment of the DisabilityCare Australia Fund 

etc.

 

11

 

10 

Establishment of the DisabilityCare Australia Fund ........................ 11

 

11 

Establishment of the DisabilityCare Australia Fund Special 

Account ............................................................................................ 11

 

Division 3--Credits of amounts to the DisabilityCare Australia 

Fund

 

12

 

12 

Credits to Special Account--determinations by the Treasurer ........ 12

 

13 

Maximum amount of credits for States and Territories for a 

financial year ................................................................................... 12

 

Division 4--Debits of amounts from the DisabilityCare Australia 

Fund, etc.

 

14

 

14 

Purposes of the DisabilityCare Australia Fund Special 

Account--main purposes ................................................................. 14

 

15 

Purposes of the DisabilityCare Australia Fund Special 

Account--purposes related exclusively to the investments 

etc. of the DisabilityCare Australia Fund ......................................... 14

 

16 

Purposes of the DisabilityCare Australia Fund Special 

Account--purposes not related exclusively to the 

DisabilityCare Australia Fund ......................................................... 15

 

17 

Reimbursing the Commonwealth--transfer to general CRF ........... 17

 

18 

Reimbursing the States and Territories--channelling of 

State/Territory grants payments through the COAG Reform 

Fund ................................................................................................. 17

 

 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013       ii 

19 

Reimbursing the States and Territories--limit on annual 

debits based on maximum amount of credits for States and 

Territories ........................................................................................ 18

 

20 

Reimbursing the States and Territories--recommendations 

about grants payments ..................................................................... 18

 

21 

Reimbursing the States and Territories--debit from the 

COAG Reform Fund ........................................................................ 18

 

22 

Reimbursing the States and Territories--grant to a State or 

Territory ........................................................................................... 19

 

23 

Future Fund Board must ensure that there is sufficient 

money in the DisabilityCare Australia Fund Special Account 

to cover authorised debits etc. .......................................................... 20

 

Division 5--Inter-fund transfers

 

21

 

24 

Transfers from the DisabilityCare Australia Fund to the 

Future Fund ...................................................................................... 21

 

Part 3--Investment of the DisabilityCare Australia Fund

 

22

 

25 

Simplified outline ............................................................................ 22

 

26 

Objects of investment of the DisabilityCare Australia Fund ........... 22

 

27 

Investment of the DisabilityCare Australia Fund ............................. 23

 

28 

Management of investments of the DisabilityCare Australia 

Fund ................................................................................................. 23

 

29 

DisabilityCare Australia Fund Investment Mandate ........................ 24

 

30 

Limitation on DisabilityCare Australia Fund Investment 

Mandate ........................................................................................... 26

 

31 

Future Fund Board to be consulted on DisabilityCare 

Australia Fund Investment Mandate ................................................ 26

 

32 

Compliance with DisabilityCare Australia Fund Investment 

Mandate ........................................................................................... 27

 

33 

Future Fund Board must not trigger the takeover provisions 

of the Corporations Act 2001 .......................................................... 28

 

34 

Borrowing ........................................................................................ 28

 

35 

DisabilityCare Australia Fund investment policies .......................... 29

 

36 

Derivatives ....................................................................................... 30

 

37 

Additional financial assets ............................................................... 30

 

38 

Securities lending arrangements ...................................................... 31

 

39 

Investment managers ....................................................................... 31

 

40 

Custody of securities ........................................................................ 32

 

41 

Refund of franking credits ............................................................... 32

 

42 

Realisation of non-financial assets ................................................... 33

 

43 

Additional function of the Future Fund Board ................................. 33

 

 

 

iii       DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Part 4--Reporting obligations etc.

 

34

 

44 

Finance Minister to prepare report on balance of 

DisabilityCare Australia Special Account etc. ................................. 34

 

45 

Finance Minister may require Future Fund Board to prepare 

reports or give information .............................................................. 34

 

46 

Keeping the responsible Ministers informed etc. ............................. 35

 

47 

Finance Minister may give reports to other Ministers etc. ............... 35

 

Part 5--DisabilityCare Australia Transitional Special Account

 

37

 

Division 1--Establishment of the DisabilityCare Australia 

Transitional Special Account

 

37

 

48 

Establishment of the DisabilityCare Australia Transitional 

Special Account ............................................................................... 37

 

Division 2--Credits of amounts to the DisabilityCare Australia 

Transitional Special Account

 

38

 

49 

Credits to Special Account--determinations by National 

Disability Insurance Minister ........................................................... 38

 

Division 3--Debits of amounts from the DisabilityCare Australia 

Transitional Special Account

 

39

 

50 

Purposes of the DisabilityCare Australia Transitional Special 

Account--General ........................................................................... 39

 

Division 4--Payments

 

40

 

51 

Authorisation of payments ............................................................... 40

 

Part 6--Miscellaneous

 

41

 

52 

Delegation by the Finance Minister ................................................. 41

 

53 

Delegation by the National Disability Insurance Minister ............... 41

 

54 

Delegation by the Treasurer ............................................................. 42

 

55 

Review of operation of Act .............................................................. 42

 

56 

Regulations ...................................................................................... 42

 

 

 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013       1 

A Bill for an Act to establish the DisabilityCare 

Australia Fund, and for related purposes 

The Parliament of Australia enacts: 

Part 1--Preliminary 

   

1  Short title 

 

  This Act may be cited as the DisabilityCare Australia Fund Act 

2013

   

Part 1  Preliminary 

   

 

Section 2 

 

2            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

2  Commencement 

 

(1)  Each provision of this Act specified in column 1 of the table 

commences, or is taken to have commenced, in accordance with 

column 2 of the table. Any other statement in column 2 has effect 

according to its terms. 

 

Commencement information 

Column 1 

Column 2 

Column 3 

Provision(s) 

Commencement 

Date/Details 

1. Sections 1 and 

2 and anything in 

this Act not 

elsewhere covered 

by this table 

The day this Act receives the Royal Assent. 

 

2.  Sections 3 to 8 

1 July 2013. 

1 July 2013 

3.  Parts 2, 3 and 

The later of: 

(a) 1 July 2014; and 

(b) the commencement of Schedule 1 to the 

Medicare Levy Amendment 

(DisabilityCare Australia) Act 2013

However, the provision(s) do not commence 

at all if the event mentioned in paragraph (b) 

does not occur. 

 

4.  Part 5 

1 July 2013. 

1 July 2013 

5.  Section 52 

The later of: 

(a) 1 July 2014; and 

(b) the commencement of Schedule 1 to the 

Medicare Levy Amendment 

(DisabilityCare Australia) Act 2013

However, the provision(s) do not commence 

at all if the event mentioned in paragraph (b) 

does not occur. 

 

6.  Section 53 

1 July 2013. 

1 July 2013 

   

Preliminary  Part 1 

   

 

Section 3 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            3 

Commencement information 

Column 1 

Column 2 

Column 3 

Provision(s) 

Commencement 

Date/Details 

7.  Sections 54 to 

56 

The later of: 

(a) 1 July 2014; and 

(b) the commencement of Schedule 1 to the 

Medicare Levy Amendment 

(DisabilityCare Australia) Act 2013

However, the provision(s) do not commence 

at all if the event mentioned in paragraph (b) 

does not occur. 

 

Note:  

This table relates only to the provisions of this Act as originally 

enacted. It will not be amended to deal with any later amendments of 

this Act. 

 

(2)  Any information in column 3 of the table is not part of this Act. 

Information may be inserted in this column, or information in it 

may be edited, in any published version of this Act. 

3  Simplified outline 

 

  The following is a simplified outline of this Act: 

•  

This Act sets up the DisabilityCare Australia Fund, which 

consists of: 

10 

 

(a) 

the DisabilityCare Australia Fund Special 

11 

Account; and 

12 

 

(b) 

the investments of the DisabilityCare Australia 

13 

Fund. 

14 

•  

The main purposes of the DisabilityCare Australia Fund 

15 

Special Account are: 

16 

 

(a) 

to transfer amounts to the COAG Reform Fund in 

17 

order to reimburse the States and Territories for 

18 

expenditure incurred in relation to the National 

19 

Disability Insurance Scheme Act 2013; and 

20 

   

Part 1  Preliminary 

   

 

Section 4 

 

4            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

 

(b) 

to debit amounts in order to reimburse the 

Commonwealth for expenditure incurred in 

relation to the National Disability Insurance 

Scheme Act 2013

•  

The Future Fund Board is responsible for deciding how to 

invest the DisabilityCare Australia Fund. 

•  

Investments of the DisabilityCare Australia Fund will consist 

of financial assets. 

•  

The Future Fund Board is bound by a DisabilityCare Australia 

Fund Investment Mandate given to it by the responsible 

10 

Ministers. 

11 

•  

This Act also sets up the DisabilityCare Australia Transitional 

12 

Special Account, which will fund the implementation of the 

13 

National Disability Insurance Scheme Act 2013 in its initial 

14 

period of operation. 

15 

Note: 

The Future Fund Act 2006 provides that the Future Fund Management 

16 

Agency is responsible for assisting and advising the Future Fund 

17 

Board. 

18 

4  Definitions 

19 

 

  In this Act: 

20 

acquire includes acquire by way of issue. 

21 

Agency means the Future Fund Management Agency. 

22 

Appropriation Act means an Act appropriating money for 

23 

expenditure out of the Consolidated Revenue Fund. 

24 

asset means: 

25 

 

(a)  any kind of real or personal property; or 

26 

 

(b)  any legal or equitable estate or interest in real or personal 

27 

property; or 

28 

 

(c)  any legal or equitable right. 

29 

   

Preliminary  Part 1 

   

 

Section 4 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            5 

balance of the DisabilityCare Australia Fund means the sum of: 

 

(a)  amounts standing to the credit of the DisabilityCare Australia 

Fund Special Account; and 

 

(b)  the value of investments of the DisabilityCare Australia 

Fund. 

bank has the same meaning as in the Financial Management and 

Accountability Act 1997

business entity means: 

 

(a)  a company; or 

 

(b)  a partnership; or 

10 

 

(c)  a trust; or 

11 

 

(d)  a body politic. 

12 

Chair means the Chair of the Future Fund Board. 

13 

COAG Reform Fund means the COAG Reform Fund established 

14 

by section 5 of the COAG Reform Fund Act 2008

15 

debenture has the same meaning as in the Corporations Act 2001. 

16 

derivative means a derivative (within the meaning of Chapter 7 of 

17 

the Corporations Act 2001) that is a financial asset. 

18 

DisabilityCare Australia Fund means the DisabilityCare Australia 

19 

Fund established by section 10. 

20 

DisabilityCare Australia Fund investment function of the Future 

21 

Fund Board means: 

22 

 

(a)  a function or power conferred on the Future Fund Board by 

23 

section 27, 28, 34, 36, 38 or 39; or 

24 

 

(b)  a right or power conferred on the Future Fund Board in its 

25 

capacity as the holder of an investment of the DisabilityCare 

26 

Australia Fund. 

27 

DisabilityCare Australia Fund Investment Mandate has the 

28 

meaning given by subsection 29(4). 

29 

   

Part 1  Preliminary 

   

 

Section 4 

 

6            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

DisabilityCare Australia Fund Special Account means the 

DisabilityCare Australia Fund Special Account established by 

section 11. 

DisabilityCare Australia Transitional Special Account means the 

DisabilityCare Australia Transitional Special Account established 

by section 48. 

Finance Department means the Department administered by the 

Finance Minister. 

Finance Minister has the same meaning as in the Financial 

Management and Accountability Act 1997. 

10 

financial asset has the same meaning as in the Nation-building 

11 

Funds Act 2008

12 

Future Fund Board means the Future Fund Board of Guardians. 

13 

Future Fund Special Account means the Future Fund Special 

14 

Account established by section 12 of the Future Fund Act 2006

15 

investment means any mode of application of money or financial 

16 

assets for the purpose of gaining a return (whether by way of 

17 

income, capital gain or any other form of return). 

18 

investment manager means a person or body (other than the 

19 

Agency) who undertakes to do any or all of the following: 

20 

 

(a)  invest amounts on behalf of the Future Fund Board; 

21 

 

(b)  manage the investment of funds on behalf of the Future Fund 

22 

Board; 

23 

 

(c)  acquire derivatives on behalf of the Future Fund Board; 

24 

 

(d)  manage derivatives on behalf of the Future Fund Board; 

25 

 

(e)  enter into securities lending arrangements on behalf of the 

26 

Future Fund Board; 

27 

 

(f)  realise financial assets on behalf of the Future Fund Board; 

28 

 

(g)  perform custodial functions in relation to the financial assets 

29 

of the Future Fund Board. 

30 

   

Preliminary  Part 1 

   

 

Section 5 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            7 

investment of the DisabilityCare Australia Fund means a 

financial asset that, under a provision of this Act, is taken to be an 

investment of the DisabilityCare Australia Fund. 

modifications includes additions, omissions and substitutions. 

National Disability Insurance Department means the Department 

administered by the National Disability Insurance Minister. 

National Disability Insurance Minister means the Minister who 

administers the National Disability Insurance Scheme Act 2013

National Disability Insurance Scheme Launch Transition 

Agency means the National Disability Insurance Scheme Launch 

10 

Transition Agency established by section 117 of the National 

11 

Disability Insurance Scheme Act 2013

12 

person includes a partnership. 

13 

Note: 

See also subsection 2C(1) of the Acts Interpretation Act 1901

14 

realise includes redeem or dispose of. 

15 

responsible Ministers means: 

16 

 

(a)  the Treasurer; and 

17 

 

(b)  the Finance Minister. 

18 

securities lending arrangement means an agreement of the kind 

19 

known as a securities lending arrangement. 

20 

Treasury Department means the Department administered by the 

21 

Treasurer. 

22 

value, of an investment of the DisabilityCare Australia Fund, 

23 

means the market value of the investment. For this purpose, 

24 

disregard anything that would prevent or restrict conversion of a 

25 

financial asset to money. 

26 

5  Crown to be bound 

27 

 

(1)  This Act binds the Crown in each of its capacities. 

28 

 

(2)  This Act does not make the Crown liable to be prosecuted for an 

29 

offence. 

30 

   

Part 1  Preliminary 

   

 

Section 6 

 

8            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

6  Extension to external Territories 

 

  This Act extends to every external Territory. 

7  Extra-territorial application 

 

  This Act extends to acts, omissions, matters and things outside 

Australia (unless the contrary intention appears). 

8  Object 

 

  The object of this Act is to enhance the Commonwealth's ability: 

 

(a)  to reimburse the States and Territories for expenditure 

incurred in relation to the National Disability Insurance 

Scheme Act 2013; and 

10 

 

(b)  to reimburse the Commonwealth for expenditure incurred in 

11 

relation to the National Disability Insurance Scheme Act 

12 

2013; and 

13 

 

(c)  to fund the implementation of the National Disability 

14 

Insurance Scheme Act 2013 in its initial period of operation. 

15 

   

DisabilityCare Australia Fund  Part 2 

Introduction  Division 1 

 

Section 9 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            9 

Part 2--DisabilityCare Australia Fund 

Division 1--Introduction 

9  Simplified outline 

 

  The following is a simplified outline of this Part: 

•  

This Part sets up the DisabilityCare Australia Fund. 

•  

The DisabilityCare Australia Fund consists of: 

 

(a) 

the DisabilityCare Australia Fund Special 

Account; and 

 

(b) 

the investments of the DisabilityCare Australia 

Fund. 

10 

•  

The Treasurer may determine that amounts are to be credited 

11 

to the DisabilityCare Australia Fund Special Account. 

12 

•  

Amounts may be debited from the DisabilityCare Australia 

13 

Fund Special Account in accordance with the purposes of the 

14 

DisabilityCare Australia Fund Special Account. 

15 

•  

The main purposes of the DisabilityCare Australia Fund 

16 

Special Account are: 

17 

 

(a) 

to transfer amounts to the COAG Reform Fund in 

18 

order to reimburse the States and Territories for 

19 

expenditure incurred in relation to the National 

20 

Disability Insurance Scheme Act 2013; and 

21 

 

(b) 

to debit amounts in order to reimburse the 

22 

Commonwealth for expenditure incurred in 

23 

relation to the National Disability Insurance 

24 

Scheme Act 2013

25 

   

Part 2  DisabilityCare Australia Fund 

Division 1  Introduction 

 

Section 9 

 

10            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

•  

The Finance Minister is responsible for authorising debits (the 

amounts of which will be credited to the COAG Reform 

Fund) on the recommendation of the National Disability 

Insurance Minister. 

   

DisabilityCare Australia Fund  Part 2 

Establishment of the DisabilityCare Australia Fund etc.  Division 2 

 

Section 10 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            11 

Division 2--Establishment of the DisabilityCare Australia 

Fund etc. 

10  Establishment of the DisabilityCare Australia Fund 

 

(1)  The DisabilityCare Australia Fund is established by this section. 

 

(2)  The Fund consists of: 

 

(a)  the DisabilityCare Australia Fund Special Account; and 

 

(b)  the investments of the DisabilityCare Australia Fund. 

11  Establishment of the DisabilityCare Australia Fund Special 

Account 

 

(1)  The DisabilityCare Australia Fund Special Account is established 

10 

by this section. 

11 

 

(2)  The DisabilityCare Australia Fund Special Account is a Special 

12 

Account for the purposes of the Financial Management and 

13 

Accountability Act 1997

14 

Note: 

An Appropriation Act may contain a provision to the effect that, if any 

15 

of the purposes of a Special Account is a purpose that is covered by an 

16 

item in the Appropriation Act (whether or not the item expressly refers 

17 

to the Special Account), then amounts may be debited against the 

18 

appropriation for that item and credited to that Special Account. 

19 

   

Part 2  DisabilityCare Australia Fund 

Division 3  Credits of amounts to the DisabilityCare Australia Fund 

 

Section 12 

 

12            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Division 3--Credits of amounts to the DisabilityCare 

Australia Fund 

12  Credits to Special Account--determinations by the Treasurer 

 

(1)  The Treasurer may, by writing, determine that: 

 

(a)  a specified amount is to be credited to the DisabilityCare 

Australia Fund Special Account on a specified day; or 

 

(b)  a specified amount is to be credited to the DisabilityCare 

Australia Fund Special Account in specified instalments on 

specified days. 

Note: 

For variation and revocation, see subsection 33(3) of the Acts 

10 

Interpretation Act 1901

11 

 

(2)  In making a determination under subsection (1), the Treasurer must 

12 

have regard to the object of this Act. 

13 

 

(3)  A determination under subsection (1) is not a legislative 

14 

instrument. 

15 

13  Maximum amount of credits for States and Territories for a 

16 

financial year 

17 

 

(1)  For the financial year mentioned in column 1 of an item in the 

18 

following table, the maximum amount of credits for States and 

19 

Territories is the amount mentioned in column 2 of that item: 

20 

 

21 

Maximum amount of credits for States and Territories 

Item 

Column 1 

Financial year 

Column 2 

Maximum amount of 

credits for States and 

Territories 

2014-2015 

$825.000 million 

2015-2016 

$853.875 million 

2016-2017 

$883.761 million 

2017-2018 

$914.692 million 

2018-2019 

$946.706 million 

   

DisabilityCare Australia Fund  Part 2 

Credits of amounts to the DisabilityCare Australia Fund  Division 3 

 

Section 13 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            13 

Maximum amount of credits for States and Territories 

Item 

Column 1 

Financial year 

Column 2 

Maximum amount of 

credits for States and 

Territories 

2019-2020 

$979.841 million 

2020-2021 

$1014.136 million 

2021-2022 

$1049.630 million 

2022-2023 

$1086.367 million 

10 

2023-2024 

$1124.390 million 

 

(2)  The consequences of the maximum amount of credits for States 

and Territories for a financial year being a particular amount are 

set out in section 19. 

   

Part 2  DisabilityCare Australia Fund 

Division 4  Debits of amounts from the DisabilityCare Australia Fund, etc. 

 

Section 14 

 

14            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Division 4--Debits of amounts from the DisabilityCare 

Australia Fund, etc. 

14  Purposes of the DisabilityCare Australia Fund Special Account--

main purposes 

 

  Each of the following is a purpose of the DisabilityCare Australia 

Fund Special Account: 

 

(a)  to transfer amounts to the COAG Reform Fund in order to 

reimburse the States and Territories for expenditure incurred 

in relation to the National Disability Insurance Scheme Act 

2013

10 

 

(b)  to debit amounts in order to reimburse the Commonwealth 

11 

for expenditure incurred in relation to the National Disability 

12 

Insurance Scheme Act 2013

13 

15  Purposes of the DisabilityCare Australia Fund Special Account--

14 

purposes related exclusively to the investments etc. of the 

15 

DisabilityCare Australia Fund 

16 

 

  Each of the following is a purpose of the DisabilityCare Australia 

17 

Fund Special Account: 

18 

 

(a)  paying the costs of, or incidental to, the acquisition of 

19 

financial assets under section 27; 

20 

 

(b)  paying expenses of an investment of the DisabilityCare 

21 

Australia Fund; 

22 

 

(c)  paying the costs of, or incidental to, the acquisition of 

23 

derivatives under section 36; 

24 

 

(d)  paying or discharging the costs, expenses and other 

25 

obligations incurred by the Future Fund Board under a 

26 

contract between the Future Fund Board and an investment 

27 

manager engaged under subsection 39(1); 

28 

 

(e)  paying or discharging the costs, expenses and other 

29 

obligations incurred in connection with the establishment, 

30 

maintenance or operation of a bank account of the Future 

31 

Fund Board, where the bank account relates exclusively to 

32 

the DisabilityCare Australia Fund; 

33 

   

DisabilityCare Australia Fund  Part 2 

Debits of amounts from the DisabilityCare Australia Fund, etc.  Division 4 

 

Section 16 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            15 

 

(f)  paying a premium in respect of a contract of insurance 

entered into by the Future Fund Board exclusively in 

connection with the DisabilityCare Australia Fund; 

 

(g)  paying or discharging any other costs, expenses, obligations 

or liabilities incurred by the Future Fund Board exclusively 

in connection with the DisabilityCare Australia Fund. 

Note: 

See section 21 of the Financial Management and Accountability Act 

1997 (debits from Special Accounts). 

16  Purposes of the DisabilityCare Australia Fund Special Account--

purposes not related exclusively to the DisabilityCare 

10 

Australia Fund 

11 

 

  Each of the following is a purpose of the DisabilityCare Australia 

12 

Fund Special Account: 

13 

 

(a)  paying or discharging the costs, expenses and other 

14 

obligations incurred in connection with the establishment, 

15 

maintenance or operation of a bank account of the Future 

16 

Fund Board, where those costs, expenses or obligations are 

17 

not covered by: 

18 

 

(i)  paragraph 15(e); or 

19 

 

(ii)  paragraph 2(1)(g) of Schedule 2 to the Future Fund Act 

20 

2006; or 

21 

 

(iii)  paragraph 18(1)(j) of the Nation-building Funds Act 

22 

2008; or 

23 

 

(iv)  paragraph 136(1)(j) of the Nation-building Funds Act 

24 

2008; or 

25 

 

(v)  paragraph 137(e) of the Nation-building Funds Act 

26 

2008; or 

27 

 

(vi)  paragraph 218(1)(f) of the Nation-building Funds Act 

28 

2008

29 

 

(b)  paying a premium in respect of a contract of insurance 

30 

entered into by the Future Fund Board, where the premium is 

31 

not covered by: 

32 

 

(i)  paragraph 15(f); or 

33 

 

(ii)  paragraph 2(1)(h) of Schedule 2 to the Future Fund Act 

34 

2006; or 

35 

   

Part 2  DisabilityCare Australia Fund 

Division 4  Debits of amounts from the DisabilityCare Australia Fund, etc. 

 

Section 16 

 

16            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

 

(iii)  paragraph 18(1)(k) of the Nation-building Funds Act 

2008; or 

 

(iv)  paragraph 136(1)(k) of the Nation-building Funds Act 

2008; or 

 

(v)  paragraph 137(f) of the Nation-building Funds Act 

2008; or 

 

(vi)  paragraph 218(1)(g) of the Nation-building Funds Act 

2008

 

(c)  paying or discharging any other costs, expenses, obligations 

or liabilities incurred by the Future Fund Board, where the 

10 

costs, expenses, obligations or liabilities are not covered by: 

11 

 

(i)  a paragraph of section 15; or 

12 

 

(ii)  a paragraph of subclause 2(1) of Schedule 2 to the 

13 

Future Fund Act 2006; or 

14 

 

(iii)  a paragraph of subsection 18(1) of the Nation-building 

15 

Funds Act 2008; or 

16 

 

(iv)  a paragraph of subsection 136(1) of the Nation-building 

17 

Funds Act 2008; or 

18 

 

(v)  a paragraph of section 137 of the Nation-building Funds 

19 

Act 2008; or 

20 

 

(vi)  a paragraph of subsection 218(1) of the Nation-building 

21 

Funds Act 2008

22 

 

(d)  paying remuneration, and other employment-related costs 

23 

and expenses, in respect of members of the staff of the 

24 

Agency; 

25 

 

(e)  paying or discharging the costs, expenses and other 

26 

obligations incurred by the Commonwealth under a contract 

27 

entered into under section 78 or 82 of the Future Fund Act 

28 

2006

29 

 

(f)  paying or discharging the costs, expenses and other 

30 

obligations incurred by the Commonwealth in connection 

31 

with the operation of the Agency. 

32 

Note: 

See section 21 of the Financial Management and Accountability Act 

33 

1997 (debits from Special Accounts). 

34 

   

DisabilityCare Australia Fund  Part 2 

Debits of amounts from the DisabilityCare Australia Fund, etc.  Division 4 

 

Section 17 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            17 

17  Reimbursing the Commonwealth--transfer to general CRF 

 

(1)  The Finance Minister may, by writing, direct that a specified 

amount is to be debited from the DisabilityCare Australia Fund 

Special Account. 

 

(2)  A direction under subsection (1) is not a legislative instrument. 

 

(3)  The Finance Minister must give a copy of a direction under 

subsection (1) to the Treasurer and the National Disability 

Insurance Minister. 

18  Reimbursing the States and Territories--channelling of 

State/Territory grants payments through the COAG 

10 

Reform Fund 

11 

 

(1)  The Finance Minister may, by writing, direct that a specified 

12 

amount is to be: 

13 

 

(a)  debited from the DisabilityCare Australia Fund Special 

14 

Account; and 

15 

 

(b)  credited to the COAG Reform Fund; 

16 

on a specified day. 

17 

 

(2)  The direction must be expressed to be given in order to enable the 

18 

amount to be debited from the COAG Reform Fund for the 

19 

purpose of making a specified grant of financial assistance in 

20 

relation to reimbursing the States and Territories for expenditure 

21 

incurred in relation to the National Disability Insurance Scheme 

22 

Act 2013

23 

 

(3)  Two or more directions under subsection (1) may be set out in the 

24 

same document. 

25 

 

(4)  A direction under subsection (1) is not a legislative instrument. 

26 

 

(5)  The Finance Minister must give a copy of a direction under 

27 

subsection (1) to the Treasurer and the National Disability 

28 

Insurance Minister. 

29 

   

Part 2  DisabilityCare Australia Fund 

Division 4  Debits of amounts from the DisabilityCare Australia Fund, etc. 

 

Section 19 

 

18            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

19  Reimbursing the States and Territories--limit on annual debits 

based on maximum amount of credits for States and 

Territories 

 

(1)  The total amount of debits from the DisabilityCare Australia Fund 

Special Account under section 18 in a financial year must not 

exceed the maximum amount of credits for States and Territories 

for the financial year under section 13 (taking into account the 

increase, if any, under a previous operation of subsection (4)). 

 

(2)  If a direction under subsection 18(1) would, apart from this section, 

result in a contravention of subsection (1), the direction is invalid. 

10 

 

(3)  Subsection (4) applies if the total amount of debits from the 

11 

DisabilityCare Australia Fund Special Account under 

12 

subsection 18(1) in a financial year falls short of the maximum 

13 

amount of credits for States and Territories for the financial year 

14 

under section 13 (taking into account the increase, if any, under a 

15 

previous operation of subsection (4)). 

16 

 

(4)  Increase the maximum amount of credits for States and Territories 

17 

for the next financial year by the amount of the shortfall. 

18 

20  Reimbursing the States and Territories--recommendations about 

19 

grants payments 

20 

 

  A grant must not be specified under subsection 18(2) unless the 

21 

National Disability Insurance Minister has recommended the 

22 

specification of the grant. 

23 

21  Reimbursing the States and Territories--debit from the COAG 

24 

Reform Fund 

25 

Scope 

26 

 

(1)  This section applies if: 

27 

 

(a)  the Finance Minister gives a direction under subsection 18(1) 

28 

for a purpose in relation to a grant of financial assistance to a 

29 

State or Territory; and 

30 

   

DisabilityCare Australia Fund  Part 2 

Debits of amounts from the DisabilityCare Australia Fund, etc.  Division 4 

 

Section 22 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            19 

 

(b)  the amount specified in the direction is credited to the COAG 

Reform Fund. 

Debit from the COAG Reform Fund 

 

(2)  The Treasurer must ensure that, as soon as practicable after the 

amount is credited, the COAG Reform Fund is debited for the 

purposes of making the grant. 

22  Reimbursing the States and Territories--grant to a State or 

Territory 

Scope 

 

(1)  This section applies if: 

10 

 

(a)  an amount is to be debited from the COAG Reform Fund for 

11 

the purpose of making a grant of financial assistance to a 

12 

State or Territory; and 

13 

 

(b)  the grant is a grant of financial assistance in relation to 

14 

reimbursing the States and Territories for expenditure 

15 

incurred in relation to the National Disability Insurance 

16 

Scheme Act 2013; and 

17 

 

(c)  the grant is covered by subsection 21(2). 

18 

Note: 

Subsection 21(2) deals with grants channelled through the COAG 

19 

Reform Fund. 

20 

Terms and conditions 

21 

 

(2)  The terms and conditions on which that financial assistance is 

22 

granted are to be set out in a written agreement between the 

23 

Commonwealth and the State or Territory. 

24 

 

(3)  An agreement under subsection (2) may be entered into by a 

25 

Minister on behalf of the Commonwealth. 

26 

   

Part 2  DisabilityCare Australia Fund 

Division 4  Debits of amounts from the DisabilityCare Australia Fund, etc. 

 

Section 23 

 

20            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

23  Future Fund Board must ensure that there is sufficient money in 

the DisabilityCare Australia Fund Special Account to 

cover authorised debits etc. 

 

  The Future Fund Board must take all reasonable steps to ensure 

that the amount of money standing to the credit of the 

DisabilityCare Australia Fund Special Account is sufficient to 

cover the debit of amounts authorised, or proposed to be 

authorised, under section 17 or 18. 

Note: 

This may require the Future Fund Board to realise an investment of 

the DisabilityCare Australia Fund in accordance with section 28. 

10 

   

DisabilityCare Australia Fund  Part 2 

Inter-fund transfers  Division 5 

 

Section 24 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            21 

Division 5--Inter-fund transfers 

24  Transfers from the DisabilityCare Australia Fund to the Future 

Fund 

 

(1)  If an amount is debited from the Future Fund Special Account for a 

purpose mentioned in subclause 2(2) of Schedule 2 to the Future 

Fund Act 2006, the Finance Minister may, by writing, direct that a 

specified amount is to be: 

 

(a)  debited from the DisabilityCare Australia Fund Special 

Account; and 

 

(b)  credited to the Future Fund Special Account; 

10 

on a specified day. 

11 

 

(2)  The specified amount must not exceed the amount debited from the 

12 

Future Fund Special Account as mentioned in subsection (1). 

13 

 

(3)  A direction under subsection (1) is not a legislative instrument. 

14 

   

Part 3  Investment of the DisabilityCare Australia Fund 

   

 

Section 25 

 

22            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Part 3--Investment of the DisabilityCare Australia 

Fund 

   

25  Simplified outline 

 

  The following is a simplified outline of this Part: 

•  

The Future Fund Board is responsible for deciding how to 

invest the DisabilityCare Australia Fund. 

•  

Investments of the DisabilityCare Australia Fund will consist 

of financial assets. 

•  

Investments of the DisabilityCare Australia Fund will be held 

10 

in the name of the Future Fund Board. 

11 

•  

The Future Fund Board is bound by a DisabilityCare Australia 

12 

Fund Investment Mandate given to it by the responsible 

13 

Ministers. 

14 

26  Objects of investment of the DisabilityCare Australia Fund 

15 

 

(1)  The main object of the acquisition by the Future Fund Board of a 

16 

financial asset as an investment of the DisabilityCare Australia 

17 

Fund is to enhance the Commonwealth's ability: 

18 

 

(a)  to reimburse the States and Territories for expenditure 

19 

incurred in relation to the National Disability Insurance 

20 

Scheme Act 2013; and 

21 

 

(b)  to reimburse the Commonwealth for expenditure incurred in 

22 

relation to the National Disability Insurance Scheme Act 

23 

2013

24 

 

(2)  The ancillary objects of the acquisition by the Future Fund Board 

25 

of a financial asset as an investment of the DisabilityCare Australia 

26 

Fund are to enhance the ability of the Commonwealth and the 

27 

Future Fund Board to: 

28 

   

Investment of the DisabilityCare Australia Fund  Part 3 

   

 

Section 27 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            23 

 

(a)  discharge costs, expenses, obligations and liabilities; and 

 

(b)  make payments; 

as mentioned in paragraphs 15(a) to (g) and 16(a) to (f). 

27  Investment of the DisabilityCare Australia Fund 

 

(1)  The Future Fund Board may invest amounts standing to the credit 

of the DisabilityCare Australia Fund Special Account in any 

financial assets. 

 

(2)  Investments under subsection (1) are to be made in the name of the 

Future Fund Board. 

 

(3)  Investments under subsection (1) are taken to be investments of the 

10 

DisabilityCare Australia Fund. 

11 

 

(4)  This section does not authorise the acquisition of a derivative. 

12 

Note: 

For acquisition of derivatives, see section 36. 

13 

28  Management of investments of the DisabilityCare Australia Fund 

14 

 

(1)  Income derived from an investment of the DisabilityCare Australia 

15 

Fund is to be credited to the DisabilityCare Australia Fund Special 

16 

Account. 

17 

 

(2)  A return of capital, or any other financial distribution, relating to 

18 

an investment of the DisabilityCare Australia Fund is to be credited 

19 

to the DisabilityCare Australia Fund Special Account. 

20 

 

(3)  The Future Fund Board may realise an investment of the 

21 

DisabilityCare Australia Fund. 

22 

 

(4)  Upon realisation of an investment of the DisabilityCare Australia 

23 

Fund, the proceeds of the investment are to be credited to the 

24 

DisabilityCare Australia Fund Special Account. 

25 

 

(5)  At any time before an investment of the DisabilityCare Australia 

26 

Fund matures, the Future Fund Board may authorise the 

27 

re-investment of the proceeds upon maturity in a financial asset 

28 

investment with the same entity. The new investment is taken to be 

29 

an investment of the DisabilityCare Australia Fund. 

30 

   

Part 3  Investment of the DisabilityCare Australia Fund 

   

 

Section 29 

 

24            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

 

(6)  Section 39 of the Financial Management and Accountability Act 

1997 does not apply to an investment of the DisabilityCare 

Australia Fund. 

29  DisabilityCare Australia Fund Investment Mandate 

 

(1)  The responsible Ministers may give the Future Fund Board written 

directions about the performance of its DisabilityCare Australia 

Fund investment functions, and must give at least one such 

direction. 

Note 1: 

DisabilityCare Australia Fund investment function is defined in 

section 4. 

10 

Note 2: 

For variation and revocation, see subsection 33(3) of the Acts 

11 

Interpretation Act 1901

12 

 

(2)  Subsection (1) has effect subject to section 30. 

13 

 

(3)  In giving a direction under subsection (1), the responsible 

14 

Ministers must have regard to: 

15 

 

(a)  maximising the return earned on the DisabilityCare Australia 

16 

Fund, consistent with international best practice for 

17 

institutional investment; and 

18 

 

(b)  enhancing the Commonwealth's ability: 

19 

 

(i)  to reimburse the States and Territories for expenditure 

20 

incurred in relation to the National Disability Insurance 

21 

Scheme Act 2013; and 

22 

 

(ii)  to reimburse the Commonwealth for expenditure 

23 

incurred in relation to the National Disability Insurance 

24 

Scheme Act 2013; and 

25 

 

(c)  such other matters as the responsible Ministers consider 

26 

relevant. 

27 

 

(4)  Directions under subsection (1) are to be known collectively as the 

28 

DisabilityCare Australia Fund Investment Mandate

29 

 

(5)  A direction under subsection (1) may set out the policies to be 

30 

pursued by the Future Fund Board in relation to: 

31 

 

(a)  matters of risk and return; and 

32 

 

(b)  the allocation of financial assets. 

33 

   

Investment of the DisabilityCare Australia Fund  Part 3 

   

 

Section 29 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            25 

A policy relating to the allocation of financial assets must not be 

inconsistent with a policy relating to matters of risk and return. 

 

(6)  Subsection (5) does not limit subsection (1). 

 

(7)  Subsection (5) has effect subject to section 30. 

 

(8)  The DisabilityCare Australia Fund Investment Mandate prevails 

over subsection (12) to the extent of any inconsistency. 

 

(9)  The responsible Ministers must not give a direction under 

subsection (1) that is inconsistent with this Act (other than 

subsection (12)). 

 

(10)  A direction under subsection (1) must not take effect before the 

10 

15th day after the day on which it is given. 

11 

 

(11)  A direction under subsection (1) is a legislative instrument. 

12 

Note 1: 

Section 42 (disallowance) of the Legislative Instruments Act 2003 

13 

does not apply to the direction--see section 44 of that Act. 

14 

Note 2: 

Part 6 (sunsetting) of the Legislative Instruments Act 2003 does not 

15 

apply to the direction--see section 54 of that Act. 

16 

 

(12)  In the performance of its DisabilityCare Australia Fund investment 

17 

functions, the Future Fund Board must seek to: 

18 

 

(a)  maximise the return earned on the DisabilityCare Australia 

19 

Fund, consistent with international best practice for 

20 

institutional investment; and 

21 

 

(b)  enhance the Commonwealth's ability: 

22 

 

(i)  to reimburse the States and Territories for expenditure 

23 

incurred in relation to the National Disability Insurance 

24 

Scheme Act 2013; and 

25 

 

(ii)  to reimburse the Commonwealth for expenditure 

26 

incurred in relation to the National Disability Insurance 

27 

Scheme Act 2013

28 

Note: 

DisabilityCare Australia Fund investment function is defined in 

29 

section 4. 

30 

 

(13)  Subsection (12) has effect subject to: 

31 

 

(a)  this Act; and 

32 

 

(b)  a direction under subsection (1). 

33 

   

Part 3  Investment of the DisabilityCare Australia Fund 

   

 

Section 30 

 

26            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

30  Limitation on DisabilityCare Australia Fund Investment 

Mandate 

 

(1)  The responsible Ministers must not give a direction under 

subsection 29(1) that has the purpose, or has or is likely to have the 

effect, of directly or indirectly requiring the Future Fund Board to: 

 

(a)  invest an amount standing to the credit of the DisabilityCare 

Australia Fund Special Account in a particular financial 

asset; or 

 

(b)  acquire a particular derivative; or 

 

(c)  allocate financial assets to: 

10 

 

(i)  a particular business entity; or 

11 

 

(ii)  a particular activity; or 

12 

 

(iii)  a particular business. 

13 

 

(2)  Paragraphs (1)(a) and (b) do not limit paragraph (1)(c). 

14 

31  Future Fund Board to be consulted on DisabilityCare Australia 

15 

Fund Investment Mandate 

16 

 

(1)  Before giving the Future Fund Board a direction under 

17 

subsection 29(1), the responsible Ministers must: 

18 

 

(a)  send a draft of the direction to the Future Fund Board; and 

19 

 

(b)  invite the Future Fund Board to make a submission to the 

20 

responsible Ministers on the draft direction within a time 

21 

limit specified by the responsible Ministers; and 

22 

 

(c)  consider any submission that is received from the Future 

23 

Fund Board within that time limit. 

24 

 

(2)  If: 

25 

 

(a)  the responsible Ministers give the Future Fund Board a 

26 

direction under subsection 29(1); and 

27 

 

(b)  the Future Fund Board made a submission to the responsible 

28 

Ministers on a draft of the direction within the time limit 

29 

specified by the responsible Ministers; 

30 

the submission is to be tabled in each House of the Parliament with 

31 

the direction. 

32 

Note: 

For tabling of the direction, see section 38 of the Legislative 

33 

Instruments Act 2003

34 

   

Investment of the DisabilityCare Australia Fund  Part 3 

   

 

Section 32 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            27 

 

(3)  A time limit specified under this section must be reasonable. 

32  Compliance with DisabilityCare Australia Fund Investment 

Mandate 

 

(1)  The Future Fund Board must take all reasonable steps to comply 

with the DisabilityCare Australia Fund Investment Mandate. 

 

(2)  As soon as practicable after the Future Fund Board becomes aware 

that it has failed to comply with the DisabilityCare Australia Fund 

Investment Mandate, the Future Fund Board must give the 

responsible Ministers a written statement: 

 

(a)  informing the responsible Ministers of the failure to comply 

10 

with the DisabilityCare Australia Fund Investment Mandate; 

11 

and 

12 

 

(b)  setting out the action that the Future Fund Board proposes to 

13 

take in order to comply with the DisabilityCare Australia 

14 

Fund Investment Mandate. 

15 

 

(3)  If the responsible Ministers are satisfied that the Future Fund 

16 

Board has failed to comply with the DisabilityCare Australia Fund 

17 

Investment Mandate, the responsible Ministers may, by written 

18 

notice given to the Future Fund Board, direct the Future Fund 

19 

Board: 

20 

 

(a)  to give the responsible Ministers, within a period specified in 

21 

the notice, a written explanation for the failure to comply 

22 

with the DisabilityCare Australia Fund Investment Mandate; 

23 

and 

24 

 

(b)  to take action specified in the notice, within a period 

25 

specified in the notice, in order to comply with the 

26 

DisabilityCare Australia Fund Investment Mandate. 

27 

 

(4)  The Future Fund Board must comply with a direction under 

28 

subsection (3). 

29 

 

(5)  A failure to comply with: 

30 

 

(a)  the DisabilityCare Australia Fund Investment Mandate; or 

31 

 

(b)  a direction under subsection (3); 

32 

does not affect the validity of any transaction. 

33 

   

Part 3  Investment of the DisabilityCare Australia Fund 

   

 

Section 33 

 

28            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

 

(6)  A direction under subsection (3) is not a legislative instrument. 

33  Future Fund Board must not trigger the takeover provisions of 

the Corporations Act 2001 

 

(1)  Subsections 606(1A) and (2A) and section 611 of the Corporations 

Act 2001 do not apply to an acquisition by the Future Fund Board 

if the acquisition is the result of the performance by the Future 

Fund Board of its DisabilityCare Australia Fund investment 

functions. 

 

(2)  A failure by the Future Fund Board to comply with section 606 of 

the Corporations Act 2001 (as modified by this section) does not 

10 

affect the validity of any transaction. 

11 

Note: 

See also section 39 of the Future Fund Act 2006 (application of the 

12 

Corporations Act 2001). 

13 

34  Borrowing 

14 

 

(1)  The Future Fund Board must not borrow money for a purpose in 

15 

connection with the DisabilityCare Australia Fund unless the 

16 

borrowing is authorised by subsection (2) or (3). 

17 

 

(2)  The Future Fund Board is authorised to borrow money for a 

18 

purpose in connection with the DisabilityCare Australia Fund if: 

19 

 

(a)  the purpose of the borrowing is to enable the Future Fund 

20 

Board to cover settlement of a transaction for the acquisition 

21 

of one or more financial assets; and 

22 

 

(b)  at the time the relevant acquisition decision was made, it was 

23 

likely that the borrowing would not be needed; and 

24 

 

(c)  the period of the borrowing does not exceed 7 days; and 

25 

 

(d)  if the borrowing were to take place, the total amount 

26 

borrowed by the Future Fund Board would not exceed 10% 

27 

of the balance of the DisabilityCare Australia Fund. 

28 

 

(3)  The Future Fund Board is authorised to borrow money for a 

29 

purpose in connection with the DisabilityCare Australia Fund if the 

30 

borrowing takes place in such circumstances (if any) as are 

31 

specified in the regulations. 

32 

   

Investment of the DisabilityCare Australia Fund  Part 3 

   

 

Section 35 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            29 

35  DisabilityCare Australia Fund investment policies 

 

(1)  The Future Fund Board must formulate written policies to be 

complied with by it in relation to the following matters in 

connection with the DisabilityCare Australia Fund: 

 

(a)  the investment strategy for the DisabilityCare Australia Fund; 

 

(b)  benchmarks and standards for assessing the performance of 

the DisabilityCare Australia Fund; 

 

(c)  risk management for the DisabilityCare Australia Fund; 

 

(d)  a matter relating to international best practice for institutional 

investment; 

10 

 

(e)  a matter specified in the regulations. 

11 

Note: 

For variation and revocation, see subsection 33(3) of the Acts 

12 

Interpretation Act 1901

13 

 

(2)  The Future Fund Board must ensure that policies formulated under 

14 

subsection (1) are consistent with the DisabilityCare Australia 

15 

Fund Investment Mandate. 

16 

Publication of policies 

17 

 

(3)  The Future Fund Board must cause copies of policies formulated 

18 

under subsection (1) to be published on the internet. 

19 

 

(4)  The Future Fund Board must ensure that the first set of policies 

20 

formulated under subsection (1) is published on the internet as 

21 

soon as practicable after the commencement of this section. 

22 

Review of policies 

23 

 

(5)  The Future Fund Board must conduct periodic reviews of policies 

24 

formulated under subsection (1). 

25 

 

(6)  If there is a change in the DisabilityCare Australia Fund 

26 

Investment Mandate, the Future Fund Board must review any 

27 

relevant policies formulated under subsection (1). 

28 

Compliance with policies 

29 

 

(7)  The Future Fund Board must take all reasonable steps to comply 

30 

with policies formulated under subsection (1). 

31 

   

Part 3  Investment of the DisabilityCare Australia Fund 

   

 

Section 36 

 

30            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

 

(8)  A failure to comply with a policy formulated under subsection (1) 

does not affect the validity of any transaction. 

Policies 

 

(9)  A policy formulated under subsection (1) is not a legislative 

instrument. 

36  Derivatives 

 

(1)  The Future Fund Board may acquire a derivative for the purpose 

of: 

 

(a)  protecting the value of an investment of the DisabilityCare 

Australia Fund (other than a derivative); or 

10 

 

(b)  protecting the return on an investment of the DisabilityCare 

11 

Australia Fund (other than a derivative); or 

12 

 

(c)  achieving indirect exposure to financial assets (other than 

13 

derivatives) for a purpose in connection with the 

14 

DisabilityCare Australia Fund; or 

15 

 

(d)  achieving transactional efficiency for a purpose in connection 

16 

with the DisabilityCare Australia Fund; 

17 

but must not acquire a derivative for the purpose of: 

18 

 

(e)  speculation; or 

19 

 

(f)  leverage. 

20 

 

(2)  The acquisition of a derivative under subsection (1) must be 

21 

consistent with the investment strategy embodied in a policy 

22 

formulated by the Future Fund Board under subsection 35(1). 

23 

 

(3)  A derivative acquired under subsection (1) is to be held in the 

24 

name of the Future Fund Board. 

25 

 

(4)  A derivative acquired under subsection (1) is taken to be an 

26 

investment of the DisabilityCare Australia Fund. 

27 

37  Additional financial assets 

28 

 

  If, as a result of: 

29 

 

(a)  the Future Fund Board's holding of an investment of the 

30 

DisabilityCare Australia Fund; or 

31 

   

Investment of the DisabilityCare Australia Fund  Part 3 

   

 

Section 38 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            31 

 

(b)  the exercise of any rights or powers conferred on the Future 

Fund Board in its capacity as the holder of an investment of 

the DisabilityCare Australia Fund; 

the Future Fund Board becomes the holder of a financial asset, that 

financial asset is taken to be an investment of the DisabilityCare 

Australia Fund. 

38  Securities lending arrangements 

 

(1)  The Future Fund Board may enter into securities lending 

arrangements for a purpose in connection with the DisabilityCare 

Australia Fund. 

10 

 

(2)  Any money received by the Future Fund Board under a securities 

11 

lending arrangement entered into under subsection (1) is to be 

12 

credited to the DisabilityCare Australia Fund Special Account. 

13 

 

(3)  To avoid doubt, a securities lending arrangement entered into 

14 

under subsection (1) may provide for the Future Fund Board to 

15 

realise an investment of the DisabilityCare Australia Fund. 

16 

 

(4)  If, as the result of the operation of a securities lending arrangement 

17 

entered into under subsection (1), the Future Fund Board becomes 

18 

the holder of a financial asset, that financial asset is taken to be an 

19 

investment of the DisabilityCare Australia Fund. 

20 

39  Investment managers 

21 

 

(1)  The Future Fund Board may engage one or more investment 

22 

managers for purposes in connection with the DisabilityCare 

23 

Australia Fund. 

24 

 

(2)  The Future Fund Board must not: 

25 

 

(a)  invest amounts under subsection 27(1); or 

26 

 

(b)  acquire derivatives under subsection 36(1); or 

27 

 

(c)  enter into a securities lending arrangement under 

28 

subsection 38(1); or 

29 

 

(d)  realise financial assets that are investments of the 

30 

DisabilityCare Australia Fund; 

31 

unless the Future Fund Board does so: 

32 

   

Part 3  Investment of the DisabilityCare Australia Fund 

   

 

Section 40 

 

32            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

 

(e)  through an investment manager engaged by the Future Fund 

Board under subsection (1) of this section; or 

 

(f)  in a manner approved, in writing, by the responsible 

Ministers. 

 

(3)  The Future Fund Board must ensure that any investment manager 

engaged by the Future Fund Board under subsection (1) operates 

within this Act. 

 

(4)  The Future Fund Board must ensure that any investment manager 

engaged by the Future Fund Board under subsection (1) reports to: 

 

(a)  the Future Fund Board; and 

10 

 

(b)  the Agency; 

11 

on the state of the investments of the DisabilityCare Australia Fund 

12 

at such times and in such manner as the Future Fund Board 

13 

determines. 

14 

40  Custody of securities 

15 

 

  Section 40 of the Financial Management and Accountability Act 

16 

1997 does not apply to an investment of the DisabilityCare 

17 

Australia Fund. 

18 

41  Refund of franking credits 

19 

 

  If: 

20 

 

(a)  the Future Fund Board receives a refund of a tax offset under 

21 

the Income Tax Assessment Act 1997; and 

22 

 

(b)  the tax offset is attributable to an investment of the 

23 

DisabilityCare Australia Fund; 

24 

the refund is to be credited to the DisabilityCare Australia Fund 

25 

Special Account. 

26 

Note 1: 

See also section 84B of the Future Fund Act 2006

27 

Note 2: 

For refunds of tax offsets, see Division 63 of the Income Tax 

28 

Assessment Act 1997

29 

   

Investment of the DisabilityCare Australia Fund  Part 3 

   

 

Section 42 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            33 

42  Realisation of non-financial assets 

 

(1)  If an asset held by the Future Fund Board as an investment of the 

DisabilityCare Australia Fund ceases to be a financial asset: 

 

(a)  the Future Fund Board must realise the asset as soon as 

practicable after the Future Fund Board becomes aware of the 

cessation; and 

 

(b)  this Act (other than this section) applies in relation to the 

asset (including in relation to the realisation of the asset) as if 

the asset had remained a financial asset, and an investment of 

the DisabilityCare Australia Fund, until the realisation. 

10 

 

(2)  If an asset acquired by the Future Fund Board, purportedly as an 

11 

investment of the DisabilityCare Australia Fund, is not a financial 

12 

asset: 

13 

 

(a)  the Future Fund Board must realise the asset as soon as 

14 

practicable after the Future Fund Board becomes aware that 

15 

the asset is not a financial asset; and 

16 

 

(b)  this Act (other than this section) applies in relation to the 

17 

asset (including in relation to the realisation of the asset) as if 

18 

the asset had been a financial asset, and an investment of the 

19 

DisabilityCare Australia Fund, from the time of its 

20 

acquisition by the Future Fund Board until the realisation. 

21 

43  Additional function of the Future Fund Board 

22 

 

  The functions of the Future Fund Board include the function of 

23 

investing amounts in accordance with this Act. 

24 

   

Part 4  Reporting obligations etc. 

   

 

Section 44 

 

34            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Part 4--Reporting obligations etc. 

   

44  Finance Minister to prepare report on balance of DisabilityCare 

Australia Special Account etc. 

 

(1)  At the end of each quarter starting on or after 1 July 2014, the 

Finance Minister must cause a report to be prepared setting out: 

 

(a)  the balance of the DisabilityCare Australia Fund at the end of 

the quarter; and 

 

(b)  the total States' and Territories' share of the DisabilityCare 

Australia Fund. 

10 

 

(2)  The Finance Minister must cause the report to be published on the 

11 

internet as soon as practicable after the end of the quarter. 

12 

 

(3)  In this section: 

13 

quarter means a period of 3 months commencing on 1 January, 

14 

1 April, 1 July or 1 October of a year. 

15 

45  Finance Minister may require Future Fund Board to prepare 

16 

reports or give information 

17 

Reports 

18 

 

(1)  The Finance Minister may, by written notice given to the Future 

19 

Fund Board, require the Future Fund Board to: 

20 

 

(a)  prepare a report about one or more specified matters relating 

21 

to the performance of the Future Fund Board's functions 

22 

under this Act; and 

23 

 

(b)  give copies of the report to the Finance Minister within the 

24 

period specified in the notice. 

25 

Information 

26 

 

(2)  The Finance Minister may, by written notice given to the Future 

27 

Fund Board, require the Future Fund Board to: 

28 

   

Reporting obligations etc.  Part 4 

   

 

Section 46 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            35 

 

(a)  prepare a document setting out specified information relating 

to the performance of the Future Fund Board's functions 

under this Act; and 

 

(b)  give copies of the document to the Finance Minister within 

the period specified in the notice. 

Compliance 

 

(3)  The Future Fund Board must comply with a requirement under 

subsection (1) or (2). 

Publication of reports and documents 

 

(4)  The Finance Minister may cause to be published (whether on the 

10 

internet or otherwise): 

11 

 

(a)  a report under subsection (1); or 

12 

 

(b)  a document under subsection (2). 

13 

Reports and documents 

14 

 

(5)  A report under subsection (1) is not a legislative instrument

15 

 

(6)  A document under subsection (2) is not a legislative instrument

16 

46  Keeping the responsible Ministers informed etc. 

17 

 

(1)  The Future Fund Board must keep the responsible Ministers 

18 

informed of the operations of the Future Fund Board under this 

19 

Act. 

20 

 

(2)  The Future Fund Board must give the Finance Minister such 

21 

reports, documents and information in relation to those operations 

22 

as are appropriate. 

23 

47  Finance Minister may give reports to other Ministers etc. 

24 

 

  The Finance Minister may give: 

25 

 

(a)  the Treasurer; or 

26 

 

(b)  the National Disability Insurance Minister; 

27 

any of the following: 

28 

 

(c)  a report under subsection 45(1) or 46(2); 

29 

   

Part 4  Reporting obligations etc. 

   

 

Section 47 

 

36            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

 

(d)  a document under subsection 45(2) or 46(2); 

 

(e)  any other information or document obtained by the Finance 

Minister under this Act. 

   

DisabilityCare Australia Transitional Special Account  Part 5 

Establishment of the DisabilityCare Australia Transitional Special Account  Division 1 

 

Section 48 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            37 

Part 5--DisabilityCare Australia Transitional 

Special Account 

Division 1--Establishment of the DisabilityCare Australia 

Transitional Special Account 

48  Establishment of the DisabilityCare Australia Transitional 

Special Account 

 

(1)  The DisabilityCare Australia Transitional Special Account is 

established by this section. 

 

(2)  The DisabilityCare Australia Transitional Special Account is a 

Special Account for the purposes of the Financial Management 

10 

and Accountability Act 1997

11 

Note: 

An Appropriation Act may contain a provision to the effect that, if any 

12 

of the purposes of a Special Account is a purpose that is covered by an 

13 

item in the Appropriation Act (whether or not the item expressly refers 

14 

to the Special Account), then amounts may be debited against the 

15 

appropriation for that item and credited to that Special Account. 

16 

   

Part 5  DisabilityCare Australia Transitional Special Account 

Division 2  Credits of amounts to the DisabilityCare Australia Transitional Special 

Account 

 

Section 49 

 

38            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Division 2--Credits of amounts to the DisabilityCare 

Australia Transitional Special Account 

49  Credits to Special Account--determinations by National 

Disability Insurance Minister 

 

(1)  The National Disability Insurance Minister may, by writing, 

determine that: 

 

(a)  a specified amount is to be credited to the DisabilityCare 

Australia Transitional Special Account on a specified day; or 

 

(b)  a specified amount is to be credited to the DisabilityCare 

Australia Transitional Special Account in specified 

10 

instalments on specified days. 

11 

Note: 

For variation and revocation, see subsection 33(3) of the Acts 

12 

Interpretation Act 1901

13 

 

(2)  In making a determination under subsection (1), the National 

14 

Disability Insurance Minister must have regard to the object of this 

15 

Act. 

16 

 

(3)  A determination under subsection (1) is not a legislative 

17 

instrument. 

18 

   

DisabilityCare Australia Transitional Special Account  Part 5 

Debits of amounts from the DisabilityCare Australia Transitional Special Account  

Division 3 

 

Section 50 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            39 

Division 3--Debits of amounts from the DisabilityCare 

Australia Transitional Special Account 

50  Purposes of the DisabilityCare Australia Transitional Special 

Account--General 

 

  Each of the following is a purpose of the DisabilityCare Australia 

Transitional Special Account: 

 

(a)  making payments in relation to the payment or discharge of 

any expenses, charges and obligations incurred or undertaken 

by the National Disability Insurance Scheme Launch 

Transition Agency in relation to the National Disability 

10 

Insurance Scheme Act 2013, so long as the payments are 

11 

authorised under subsection 51(1); 

12 

 

(b)  making payments in relation the payment or discharge of any 

13 

expenses, charges and obligations incurred or undertaken by 

14 

the National Disability Insurance Department, on behalf of 

15 

the Commonwealth, in order to administer the National 

16 

Disability Insurance Scheme Act 2013, so long as the 

17 

payments are authorised under subsection 51(1); 

18 

 

(c)  making payments to the National Disability Insurance 

19 

Scheme Launch Transition Agency, so long as the payments 

20 

are authorised under subsection 51(2). 

21 

Note: 

See section 21 of the Financial Management and Accountability Act 

22 

1997 (debits from Special Accounts). 

23 

   

Part 5  DisabilityCare Australia Transitional Special Account 

Division 4  Payments 

 

Section 51 

 

40            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Division 4--Payments 

51  Authorisation of payments 

 

(1)  The National Disability Insurance Minister may, by writing, 

authorise a payment in relation to any of the following: 

 

(a)  the payment or discharge of any expenses, charges and 

obligations incurred or undertaken by the National Disability 

Insurance Scheme Launch Transition Agency in relation to 

the National Disability Insurance Scheme Act 2013

 

(b)  the payment or discharge of any expenses, charges and 

obligations incurred or undertaken by the National Disability 

10 

Insurance Department, on behalf of the Commonwealth, in 

11 

order to administer the National Disability Insurance Scheme 

12 

Act 2013

13 

 

(2)  The National Disability Insurance Minister may, by writing, 

14 

authorise a payment to the National Disability Insurance Scheme 

15 

Launch Transition Agency. 

16 

 

(3)  The National Disability Insurance Minister must authorise a 

17 

payment under subsection (2) equal to the balance of the 

18 

DisabilityCare Australia Transitional Special Account before: 

19 

 

(a)  unless paragraph (b) applies--1 July 2014; or 

20 

 

(b)  if the National Disability Insurance Minister considers that a 

21 

later day is appropriate, having regard to the object of this 

22 

Act--that later day. 

23 

 

(4)  An instrument under subsection (1) or (2) is not a legislative 

24 

instrument. 

25 

   

Miscellaneous  Part 6 

   

 

Section 52 

 

DisabilityCare Australia Fund Bill 2013       No.      , 2013            41 

Part 6--Miscellaneous 

   

52  Delegation by the Finance Minister 

Department 

 

(1)  The Finance Minister may, by writing, delegate any or all of his or 

her powers under section 17, 18 or 24 to: 

 

(a)  the Secretary of the Finance Department; or 

 

(b)  an SES employee, or acting SES employee, in the Finance 

Department. 

Note: 

The expressions SES employee and acting SES employee are defined 

10 

in section 2B of the Acts Interpretation Act 1901

11 

 

(2)  In exercising powers under a delegation, the delegate must comply 

12 

with any directions of the Finance Minister. 

13 

Agency 

14 

 

(3)  The Finance Minister may, by writing, delegate any or all of his or 

15 

her powers under section 24 to: 

16 

 

(a)  the Chair; or 

17 

 

(b)  an SES employee, or acting SES employee, in the Agency. 

18 

Note: 

The expressions SES employee and acting SES employee are defined 

19 

in section 2B of the Acts Interpretation Act 1901

20 

 

(4)  In exercising powers under a delegation, the delegate must comply 

21 

with any directions of the Finance Minister. 

22 

53  Delegation by the National Disability Insurance Minister 

23 

 

(1)  The National Disability Insurance Minister may, by writing, 

24 

delegate any or all of his or her powers under section 20, 49 or 51 

25 

to: 

26 

 

(a)  the Secretary of the National Disability Insurance 

27 

Department; or 

28 

 

(b)  an SES employee, or acting SES employee, in the National 

29 

Disability Insurance Minister Department. 

30 

   

Part 6  Miscellaneous 

   

 

Section 54 

 

42            DisabilityCare Australia Fund Bill 2013       No.      , 2013 

Note: 

The expressions SES employee and acting SES employee are defined 

in section 2B of the Acts Interpretation Act 1901

 

(2)  In exercising powers under a delegation, the delegate must comply 

with any directions of the National Disability Insurance Minister. 

54  Delegation by the Treasurer 

 

  The Treasurer may, by writing, delegate any or all of his or her 

functions under section 12 or subsection 21(2) to: 

 

(a)  the Secretary of the Treasury Department; or 

 

(b)  an SES employee, or acting SES employee, in the Treasury 

Department. 

10 

Note: 

The expressions SES employee and acting SES employee are defined 

11 

in section 2B of the Acts Interpretation Act 1901

12 

55  Review of operation of Act 

13 

 

  The responsible Ministers must cause a review of the operation of 

14 

this Act to be undertaken before: 

15 

 

(a)  unless paragraph (b) applies--30 June 2024; or 

16 

 

(b)  if the responsible Ministers consider that another date is 

17 

appropriate--that date. 

18 

56  Regulations 

19 

 

  The Governor-General may make regulations prescribing matters: 

20 

 

(a)  required or permitted by this Act to be prescribed; or 

21 

 

(b)  necessary or convenient to be prescribed for carrying out or 

22 

giving effect to this Act. 

23 

 


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