Commonwealth of Australia Bills
[Index]
[Search]
[Download]
[Related Items]
[Help]
This is a Bill, not an Act. For current law, see the Acts databases.
NATION-BUILDING FUNDS BILL 2008
2008
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Nation-building Funds Bill 2008
No. , 2008
(Finance and Deregulation)
A Bill for an Act about the Building Australia
Fund, the Education Investment Fund and the
Health and Hospitals Fund, and for other purposes
i Nation-building Funds Bill 2008 No. , 2008
Contents
Chapter 1--Preliminary
1
1
Short title................................................................................ 1
2
Commencement ..................................................................... 2
3
Simplified outline................................................................... 2
4
Definitions.............................................................................. 4
5
Financial assets .................................................................... 11
6
Crown to be bound ............................................................... 12
7
Extension to external Territories .......................................... 12
8
Extra-territorial application.................................................. 12
Chapter 2--Building Australia Fund
13
Part 2.1--Introduction
13
9
Object ................................................................................... 13
10
Simplified outline................................................................. 13
Part 2.2--Building Australia Fund
15
Division 1--Introduction
15
11
Simplified outline................................................................. 15
Division 2--Establishment of the Building Australia Fund etc.
17
12
Establishment of the Building Australia Fund ..................... 17
13
Establishment of the Building Australia Fund Special
Account ................................................................................ 17
Division 3--Credits of amounts to the Building Australia Fund
18
14
Initial credits of amounts to the Building Australia
Fund Special Account .......................................................... 18
15
Subsequent credits of amounts to the Building
Australia Fund Special Account--determinations by
the responsible Ministers ..................................................... 18
16
Credit of amount to the Building Australia Fund
Special Account--balance of the Communications
Fund Special Account .......................................................... 19
17
Credit of amount to the Building Australia Fund
Special Account--balance of the Telstra Sale Special
Account ................................................................................ 19
Division 4--Debits of amounts from the Building Australia Fund
21
18
Purposes of the Building Australia Fund Special
Account--payments purposes and purposes related
exclusively to the Building Australia Fund.......................... 21
Nation-building Funds Bill 2008 No. , 2008 ii
19
Purposes of the Building Australia Fund Special
Account--transitional .......................................................... 22
20
Purposes of the Building Australia Fund Special
Account--purposes not related exclusively to the
Building Australia Fund....................................................... 23
21
Extended meaning of payment in relation to the
creation or development of transport infrastructure ........... 25
22
Extended meaning of payment in relation to the
creation or development of communications
infrastructure ....................................................................... 25
23
Eligible national broadband network matter ........................ 26
24
Extended meaning of payment in relation to the
creation or development of energy infrastructure ............... 26
25
Extended meaning of payment in relation to the
creation or development of water infrastructure ................. 27
26
Future Fund Board must ensure that there is
sufficient money in the Building Australia Fund
Special Account to cover authorised payments etc.............. 28
Division 5--Inter-fund transfers
29
27
Transfers from the Building Australia Fund to the
Future Fund .......................................................................... 29
28
Transfers from the Building Australia Fund to the
Education Investment Fund ................................................. 29
29
Transfers from the Building Australia Fund to the
Health and Hospitals Fund ................................................... 30
Part 2.3--Investment of the Building Australia Fund
31
30
Simplified outline................................................................. 31
31
Objects of investment of the Building Australia Fund ........ 31
32
Investment of the Building Australia Fund .......................... 32
33
Building Australia Fund to inherit investments of the
Communications Fund ......................................................... 32
34
Management of investments of the Building
Australia Fund...................................................................... 33
35
Building Australia Fund Investment Mandate ..................... 34
36
Limitation on Building Australia Fund Investment
Mandate................................................................................ 36
37
Future Fund Board to be consulted on Building
Australia Fund Investment Mandate .................................... 36
38
Compliance with Building Australia Fund
Investment Mandate ............................................................. 37
39
Future Fund Board must not trigger the takeover
provisions of the Corporations Act 2001 ............................. 38
40
Borrowing ............................................................................ 38
iii Nation-building Funds Bill 2008 No. , 2008
41
Building Australia Fund investment policies ....................... 39
42
Derivatives ........................................................................... 40
43
Additional financial assets ................................................... 40
44
Securities lending arrangements .......................................... 41
45
Investment managers............................................................ 41
46
Custody of securities ............................................................ 42
47
Refund of franking credits ................................................... 42
48
Realisation of non-financial assets....................................... 43
49
Additional function of the Future Fund Board..................... 43
Part 2.4--Payments
44
Division 1--Introduction
44
50
Simplified outline................................................................. 44
Division 2--Direct payments
46
51
Authorisation of payments ................................................... 46
52
Recommendations about payments...................................... 46
53
Grant to a State or Territory--transport infrastructure ........ 48
54
Grant to a State or Territory--communications
infrastructure etc. ................................................................. 49
55
Grant to a State or Territory--energy infrastructure ........... 49
56
Grant to a State or Territory--water infrastructure ............. 50
57
Grant to a person other than a State or Territory --
transport infrastructure ......................................................... 51
58
Grant to a person other than a State or Territory--
communications infrastructure etc. ...................................... 51
59
Grant to a person other than a State or Territory --
energy infrastructure ............................................................ 52
60
Grant to a person other than a State or Territory--
water infrastructure .............................................................. 52
Division 3--Channelling of payments through the BAF
Infrastructure Portfolio Special Account
54
61
Establishment of the BAF Infrastructure Portfolio
Special Account ................................................................... 54
62
Purpose of the BAF Infrastructure Portfolio Special
Account ................................................................................ 54
63
Channelling of payments through the BAF
Infrastructure Portfolio Special Account ............................. 54
64
Recommendations about payments...................................... 55
65
Payments--debit from the BAF Infrastructure
Portfolio Special Account .................................................... 55
66
Grant to a State or Territory--transport infrastructure ........ 56
Nation-building Funds Bill 2008 No. , 2008 iv
67
Grant to a person other than a State or Territory --
transport infrastructure ......................................................... 56
Division 4--Channelling of payments through the BAF
Communications Portfolio Special Account
58
68
Establishment of the BAF Communications Portfolio
Special Account ................................................................... 58
69
Purposes of the BAF Communications Portfolio
Special Account ................................................................... 58
70
Channelling of payments through the BAF
Communications Portfolio Special Account ........................ 58
71
Recommendations about payments...................................... 59
72
Payments--debit from the BAF Communications
Portfolio Special Account .................................................... 60
73
Grant to a State or Territory--communications
infrastructure etc. ................................................................. 61
74
Grant to a person other than a State or Territory --
communications infrastructure etc. ...................................... 61
Division 5--Channelling of payments through the BAF Energy
Portfolio Special Account
62
75
Establishment of the BAF Energy Portfolio Special
Account ................................................................................ 62
76
Purpose of the BAF Energy Portfolio Special
Account ................................................................................ 62
77
Channelling of payments through the BAF Energy
Portfolio Special Account .................................................... 62
78
Recommendations about payments...................................... 63
79
Payments--debit from the BAF Energy Portfolio
Special Account ................................................................... 63
80
Grant to a State or Territory--energy infrastructure ........... 64
81
Grant to a person other than a State or Territory --
energy infrastructure ............................................................ 64
Division 6--Channelling of payments through the BAF Water
Portfolio Special Account
66
82
Establishment of the BAF Water Portfolio Special
Account ................................................................................ 66
83
Purpose of the BAF Water Portfolio Special Account ........ 66
84
Channelling of payments through the BAF Water
Portfolio Special Account .................................................... 66
85
Recommendations about payments...................................... 67
86
Payments--debit from the BAF Water Portfolio
Special Account ................................................................... 67
87
Grant to a State or Territory--water infrastructure ............. 68
v Nation-building Funds Bill 2008 No. , 2008
88
Grant to a person other than a State or Territory --
water infrastructure .............................................................. 68
Division 7--Channelling of State/Territory grants payments
through the COAG Reform Fund
70
Subdivision A--Channelling of trans port infrastructure grants
70
89
Channelling of State/Territory grants payments
through the COAG Reform Fund......................................... 70
90
Recommendations about grants payments--transport
infrastructure ........................................................................ 71
91
Transfers from the BAF Infrastructure Portfolio
Special Account to the COAG Reform Fund....................... 71
92
Grants payments--debit from the COAG Reform
Fund ..................................................................................... 72
93
Grant to a State or Territory--transport infrastructure ........ 72
Subdivision B--Channelling of communications infrastructure
grants
73
94
Channelling of State/Territory grants payments
through the COAG Reform Fund......................................... 73
95
Recommendations about grants payments--
communications infrastructure............................................. 74
96
Transfers from the BAF Communications Portfolio
Special Account to the COAG Reform Fund....................... 74
97
Grants payments--debit from the COAG Reform
Fund ..................................................................................... 75
98
Grant to a State or Territory--communications
infrastructure ........................................................................ 76
Subdivision C--Channelling of energy infrastructure grants
76
99
Channelling of State/Territory grants payments
through the COAG Reform Fund......................................... 76
100
Recommendations about grants payments--energy
infrastructure ........................................................................ 77
101
Transfers from the BAF Energy Portfolio Special
Account to the COAG Reform Fund ................................... 77
102
Grants payments--debit from the COAG Reform
Fund ..................................................................................... 78
103
Grant to a State or Territory--energy infrastructure ........... 79
Subdivision D--Channelling of water infrastructure grants
79
104
Channelling of State/Territory grants payments
through the COAG Reform Fund......................................... 79
105
Recommendations about grants payments--water
infrastructure ........................................................................ 80
Nation-building Funds Bill 2008 No. , 2008 vi
106
Transfers from the BAF Water Portfolio Special
Account to the COAG Reform Fund ................................... 81
107
Grants payments--debit from the COAG Reform
Fund ..................................................................................... 81
108
Grant to a State or Territory--water infrastructure ............. 82
Division 8--Total payments for a financial year
83
109
General drawing rights limit in relation to a financial
year....................................................................................... 83
110
Drawing rights in relation to other financial years .............. 84
111
No drawing rights to be issued if there is no general
drawing rights limit in relation to a financial year ............... 84
112
Total payments to depend primarily on the
macroeconomic circumstances ............................................ 86
Part 2.5--Reporting obligations etc.
89
113
Finance Minister may require Future Fund Board to
prepare reports or give information ..................................... 89
114
Keeping the responsible Ministers informed etc.................. 90
115
Finance Minister may give reports to other Ministers
etc. ........................................................................................ 90
Part 2.6--Miscellaneous
91
116
Infrastructure Australia to advise Infrastructure
Minister about transport infrastructure ................................ 91
117
Infrastructure Australia to advise Communications
Minister about communications infrastructure .................... 91
118
Infrastructure Australia to advise Energy Minister
about energy infrastructure .................................................. 92
119
Infrastructure Australia to advise Water Minister
about water infrastructure .................................................... 92
120
BAF evaluation criteria ........................................................ 93
121
Investment provisions do not apply to certain assets ........... 94
122
Delegation by the Finance Minister ..................................... 94
123
Delegation by the Treasurer ................................................. 95
124
Delegation by the Infrastructure Minister ............................ 95
125
Delegation by the Communications Minister ...................... 96
126
Delegation by the Energy Minister ...................................... 96
127
Delegation by the Water Minister ........................................ 96
Chapter 3--Education Investment Fund
98
Part 3.1--Introduction
98
128
Object ................................................................................... 98
129
Simplified outline................................................................. 98
vii Nation-building Funds Bill 2008 No. , 2008
Part 3.2--Education Investment Fund
100
Division 1--Introduction
100
130
Simplified outline............................................................... 100
Division 2--Establishment of the Education Investment Fund
etc.
102
131
Establishment of the Education Investment Fund.............. 102
132
Establishment of the Education Investment Fund
Special Account ................................................................. 102
Division 3--Credits of amounts to the Education Investment
Fund
103
133
Initial credits of amounts to the Education
Investment Fund Special Account ..................................... 103
134
Subsequent credits of amounts to the Education
Investment Fund Special Account--determinations
by the responsible Ministers .............................................. 103
135
Credit of amount to the Education Investment Fund
Special Account--balance of the Higher Education
Endowment Fund Special Account .................................... 104
Division 4--Debits of amounts from the Education Investment
Fund
105
136
Purposes of the Education Investment Fund Special
Account--payments purposes and purposes related
exclusively to the Education Investment Fund .................. 105
137
Purposes of the Education Investment Fund Special
Account--transitional ........................................................ 106
138
Purposes of the Education Investment Fund Special
Account--purposes not related exclusively to the
Education Investment Fund ............................................... 108
139
Payments in relation to the creation or development
of higher education infrastructure ...................................... 109
140
Payments in relation to the creation or development
of research infrastructure ................................................... 110
141
Payments in relation to the creation or development
of vocational education and training infrastructure ........... 110
142
Payments in relation to the creation or development
of eligible education infrastructure .................................... 111
143
Designated education infrastructure-related matters.......... 112
144
Transitional HEEF payments ............................................. 112
145
Future Fund Board must ensure that there is
sufficient money in the Education Investment Fund
Special Account to cover authorised payments etc............ 113
Nation-building Funds Bill 2008 No. , 2008 viii
Division 5--Inter-fund transfers
114
146
Transfers from the Education Investment Fund to the
Future Fund ........................................................................ 114
147
Transfers from the Education Investment Fund to the
Building Australia Fund..................................................... 114
148
Transfers from the Education Investment Fund to the
Health and Hospitals Fund ................................................. 115
Part 3.3--Investment of the Education Investment Fund
116
149
Simplified outline............................................................... 116
150
Objects of investment of the Education Investment
Fund ................................................................................... 116
151
Investment of the Education Investment Fund .................. 117
152
Education Investment Fund to inherit investments of
the Higher Education Endowment Fund ............................ 117
153
Management of investments of the Education
Investment Fund................................................................. 118
154
Education Investment Fund Investment Mandate.............. 118
155
Limitation on Education Investment Fund
Investment Mandate ........................................................... 120
156
Future Fund Board to be consulted on Education
Investment Fund Investment Mandate ............................... 121
157
Compliance with Education Investment Fund
Investment Mandate ........................................................... 122
158
Future Fund Board must not trigger the takeover
provisions of the Corporations Act 2001 ........................... 123
159
Borrowing .......................................................................... 123
160
Education Investment Fund investment policies ............... 124
161
Derivatives ......................................................................... 125
162
Additional financial assets ................................................. 125
163
Securities lending arrangements ........................................ 126
164
Investment managers.......................................................... 127
165
Custody of securities .......................................................... 127
166
Refund of franking credits ................................................. 127
167
Realisation of non-financial assets..................................... 128
168
Additional function of the Future Fund Board................... 128
Part 3.4--Payments
129
Division 1--Introduction
129
169
Simplified outline............................................................... 129
Division 2--Education Investment Fund Advisory Board
131
170
Education Investment Fund Advisory Board..................... 131
171
Functions of the EIF Advisory Board ................................ 131
ix Nation-building Funds Bill 2008 No. , 2008
172
EIF evaluation criteria........................................................ 133
173
Remuneration and allowances ........................................... 133
174
Disclosure of interests ........................................................ 134
175
Resignation......................................................................... 134
Division 3--Direct payments
135
176
Authorisation of payments ................................................. 135
177
Recommendations about payments.................................... 135
178
Grant to a State or Territory--education
infrastructure etc. ............................................................... 137
179
Grant to a person other than a State or Territory --
education infrastructure etc. ............................................... 137
180
Grant to a person other than a State or Territory --
research infrastructure........................................................ 138
Division 4--Channelling of payments through the EIF
Education Portfolio Special Account
139
181
Establishment of the EIF Education Portfolio Special
Account .............................................................................. 139
182
Purposes of the EIF Education Portfolio Special
Account .............................................................................. 139
183
Channelling of payments through the EIF Education
Portfolio Special Account .................................................. 140
184
Recommendations about payments--education
infrastructure ...................................................................... 140
185
Payments--debit from the EIF Education Portfolio
Special Account ................................................................. 142
186
Grant to a State or Territory--education
infrastructure etc. ............................................................... 142
187
Grant to a person other than a State or Territory --
education infrastructure etc. ............................................... 143
Division 5--Channelling of payments through the EIF Research
Portfolio Special Account
144
188
Establishment of the EIF Research Portfolio Special
Account .............................................................................. 144
189
Purposes of the EIF Research Portfolio Special
Account .............................................................................. 144
190
Channelling of payments through the EIF Research
Portfolio Special Account .................................................. 144
191
Recommendations about payments--research
infrastructure and transitional HEEF payments ................. 145
192
Payments--debit from the EIF Research Portfolio
Special Account ................................................................. 146
Nation-building Funds Bill 2008 No. , 2008 x
193
Grant to a person other than a State or Territory --
research infrastructure........................................................ 147
Division 6--Channelling of State/Territory grants payme nts
through the COAG Reform Fund
148
194
Channelling of State/Territory grants payments
through the COAG Reform Fund....................................... 148
195
Recommendations about grants payments ......................... 149
196
Transfers from the EIF Education Portfolio Special
Account to the COAG Reform Fund ................................. 149
197
Grants payments--debit from the COAG Reform
Fund ................................................................................... 150
198
Grant to a State or Territory--education
infrastructure ...................................................................... 150
Division 7--Total payments for a financial year
152
199
General drawing rights limit in relation to a financial
year..................................................................................... 152
200
Drawing rights in relation to other financial years ............ 153
201
No drawing rights to be issued if there is no general
drawing rights limit in relation to a financial year ............. 153
202
Total payments to depend primarily on the
macroeconomic circumstances .......................................... 153
Part 3.5--Reporting obligations etc.
155
203
Finance Minister may require Future Fund Board to
prepare reports or give information ................................... 155
204
Keeping the responsible Ministers informed etc................ 156
205
Finance Minister may give reports to other Ministers
etc. ...................................................................................... 156
Part 3.6--Miscellaneous
157
206
Investment provisions do not apply to certain assets ......... 157
207
Delegation by the Finance Minister ................................... 157
208
Delegation by the Treasurer ............................................... 158
209
Delegation by the Education Minister ............................... 158
210
Delegation by the Research Minister ................................. 159
Chapter 4--Health and Hospitals Fund
160
Part 4.1--Introduction
160
211
Object ................................................................................. 160
212
Simplified outline............................................................... 160
xi Nation-building Funds Bill 2008 No. , 2008
Part 4.2--Health and Hospitals Fund
162
Division 1--Introduction
162
213
Simplified outline............................................................... 162
Division 2--Establishment of the Health and Hospitals Fund etc.
163
214
Establishment of the Health and Hospitals Fund ............... 163
215
Establishment of the Health and Hospitals Fund
Special Account ................................................................. 163
Division 3--Credits of amounts to the Health and Hospitals
Fund
164
216
Initial credits of amounts to the Health and Hospitals
Fund Special Account ........................................................ 164
217
Subsequent credits of amounts to the Health and
Hospitals Fund Special Account--determinations by
the responsible Ministers ................................................... 164
Division 4--Debits of amounts from the Health and Hospitals
Fund
166
218
Purposes of the Health and Hospitals Fund Special
Account--payments purposes and purposes related
exclusively to the Health and Hospitals Fund.................... 166
219
Purposes of the Health and Hospitals Fund Special
Account--purposes not related exclusively to the
Health and Hospitals Fund ................................................. 167
220
Extended meaning of payment in relation to the
creation or development of health infrastructure .............. 168
221
Future Fund Board must ensure that there is
sufficient money in the Health and Hospitals Fund
Special Account to cover authorised payments etc............ 169
Division 5--Inter-fund transfers
170
222
Transfers from the Health and Hospitals Fund to the
Future Fund ........................................................................ 170
223
Transfers from the Health and Hospitals Fund to the
Building Australia Fund..................................................... 170
224
Transfers from the Health and Hospitals Fund to the
Education Investment Fund ............................................... 171
Part 4.3--Investment of the Health and Hospitals Fund
172
225
Simplified outline............................................................... 172
226
Objects of investment of the Health and Hospitals
Fund ................................................................................... 172
227
Investment of the Health and Hospitals Fund .................... 173
228
Management of investments of the Health and
Hospitals Fund ................................................................... 173
Nation-building Funds Bill 2008 No. , 2008 xii
229
Health and Hospitals Fund Investment Mandate ............... 174
230
Limitation on Health and Hospitals Fund Investment
Mandate.............................................................................. 175
231
Future Fund Board to be consulted on Health and
Hospitals Fund Investment Mandate.................................. 176
232
Compliance with Health and Hospitals Fund
Investment Mandate ........................................................... 176
233
Future Fund Board must not trigger the takeover
provisions of the Corporations Act 2001 ........................... 177
234
Borrowing .......................................................................... 178
235
Health and Hospitals Fund investment policies ................. 178
236
Derivatives ......................................................................... 179
237
Additional financial assets ................................................. 180
238
Securities lending arrangements ........................................ 180
239
Investment managers.......................................................... 181
240
Custody of securities .......................................................... 182
241
Refund of franking credits ................................................. 182
242
Realisation of non-financial assets..................................... 182
243
Additional function of the Future Fund Board................... 183
Part 4.4--Payments
184
Division 1--Introduction
184
244
Simplified outline............................................................... 184
Division 2--Health and Hospitals Fund Advisory Board
185
245
Health and Hospitals Fund Advisory Board ...................... 185
246
Functions of the HHF Advisory Board .............................. 185
247
HHF evaluation criteria...................................................... 186
248
Remuneration and allowances ........................................... 186
249
Disclosure of interests ........................................................ 186
250
Resignation......................................................................... 187
Division 3--Direct payments
188
251
Authorisation of payments ................................................. 188
252
Recommendations about payments.................................... 188
253
Grant to a State or Territory ............................................... 188
254
Grant to a person other than a State or Territory ............... 189
Division 4--Channelling of payments through the HHF Health
Portfolio Special Account
190
255
Establishment of the HHF Health Portfolio Special
Account .............................................................................. 190
256
Purpose of the HHF Health Portfolio Special
Account .............................................................................. 190
xiii Nation-building Funds Bill 2008 No. , 2008
257
Channelling of payments through the HHF Health
Portfolio Special Account .................................................. 190
258
Recommendations about payments.................................... 191
259
Payments--debit from the HHF Health Portfolio
Special Account ................................................................. 191
260
Grant to a State or Territory ............................................... 192
261
Grant to a person other than a State or Territory ............... 192
Division 5--Channelling of State/Territory grants payments
through the COAG Reform Fund
194
262
Channelling of State/Territory grants payments
through the COAG Reform Fund....................................... 194
263
Recommendations about grants payments ......................... 194
264
Transfers from the HHF Health Portfolio Special
Account to the COAG Reform Fund ................................. 195
265
Grants payments--debit from the COAG Reform
Fund ................................................................................... 196
266
Grant to a State or Territory ............................................... 196
Division 6--Total payments for a financial year
197
267
General drawing rights limit in relation to a financial
year..................................................................................... 197
268
Drawing rights in relation to other financial years ............ 198
269
No drawing rights to be issued if there is no general
drawing rights limit in relation to a financial year ............. 198
270
Total payments to depend primarily on the
macroeconomic circumstances .......................................... 198
Part 4.5--Reporting obligations etc.
200
271
Finance Minister may require Future Fund Board to
prepare reports or give information ................................... 200
272
Keeping the responsible Ministers informed etc................ 201
273
Finance Minister may give reports to other Ministers
etc. ...................................................................................... 201
Part 4.6--Miscellaneous
202
274
Investment provisions do not apply to certain assets ......... 202
275
Delegation by the Finance Minister ................................... 202
276
Delegation by the Treasurer ............................................... 203
277
Delegation by the Health Minister ..................................... 203
Chapter 5--Regulations
204
278
Regulations......................................................................... 204
Nation-building Funds Bill 2008 No. , 2008 1
A Bill for an Act about the Building Australia
1
Fund, the Education Investment Fund and the
2
Health and Hospitals Fund, and for other purposes
3
The Parliament of Australia enacts:
4
Chapter 1--Preliminary
5
6
7
1 Short title
8
This Act may be cited as the Nation-building Funds Act 2008.
9
Chapter 1 Preliminary
Section 2
2 Nation-building Funds Bill 2008 No. , 2008
2 Commence ment
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
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 on which this Act receives the
Royal Assent.
2. Sections 3 to
278
1 January 2009.
However, if the Nation-building Funds
(Consequential Amendments) Act 2008 does
not receive the Royal Assent before
1 January 2009, the provision(s) do not
commence at all.
Note:
This table relates only to the provisions of this Act as originally
7
passed by both Houses of the Parliament and assented to. It will not be
8
expanded to deal with provisions inserted in this Act after assent.
9
(2) Column 3 of the table contains additional information that is not
10
part of this Act. Information in this column may be added to or
11
edited in any published version of this Act.
12
3 Simplified outline
13
The following is a simplified outline of this Act:
14
·
Chapter 2 sets up the Building Australia Fund, which will
15
enhance the Commonwealth's ability:
16
(a) to make payments in relation to the creation or
17
development of transport infrastructure; and
18
Preliminary Chapter 1
Section 3
Nation-building Funds Bill 2008 No. , 2008 3
(b) to make payments in relation to the creation or
1
development of communications infrastructure;
2
and
3
(c) to make payments in relation to eligible national
4
broadband network matters; and
5
(d) to make payments in relation to the creation or
6
development of energy infrastructure; and
7
(e) to make payments in relation to the creation or
8
development of water infrastructure.
9
·
Chapter 3 sets up the Education Investment Fund, which will
10
enhance the Commonwealth's ability:
11
(a) to make payments in relation to the creation or
12
development of higher education infrastructure;
13
and
14
(b) to make payments in relation to the creation or
15
development of research infrastructure; and
16
(c) to make payments in relation to the creation or
17
development of vocational education and training
18
infrastructure; and
19
(d) to make payments in relation to the creation or
20
development of eligible education infrastructure;
21
and
22
(e) to make transitional HEEF payments.
23
·
Chapter 4 sets up the Health and Hospitals Fund, which will
24
enhance the Commonwealth's ability to make payments in
25
relation to the creation or development of health
26
infrastructure.
27
Chapter 1 Preliminary
Section 4
4 Nation-building Funds Bill 2008 No. , 2008
4 Definitions
1
In this Act:
2
acquire includes acquire by way of issue.
3
Agency means the Future Fund Management Agency.
4
Appropriation Act means an Act appropriating money for
5
expenditure out of the Consolidated Revenue Fund.
6
asset means:
7
(a) any kind of real or personal property; or
8
(b) any legal or equitable estate or interest in real or personal
9
property; or
10
(c) any legal or equitable right.
11
BAF Communications Portfolio Special Account means the BAF
12
Communications Portfolio Special Account established by
13
section 68.
14
BAF Energy Portfolio Special Account means the BAF Energy
15
Portfolio Special Account established by section 75.
16
BAF evaluation criteria means evaluation criteria under
17
section 120.
18
BAF Infrastructure Portfolio Special Account means the BAF
19
Infrastructure Portfolio Special Account established by section 61.
20
BAF Water Portfolio Special Account means the BAF Water
21
Portfolio Special Account established by section 82.
22
balance of the Building Australia Fund means the sum of:
23
(a) amounts standing to the credit of the Building Australia Fund
24
Special Account; and
25
(b) the value of investments of the Building Australia Fund.
26
balance of the Education Investment Fund means the sum of:
27
(a) amounts standing to the credit of the Education Investment
28
Fund Special Account; and
29
(b) the value of investments of the Education Investment Fund.
30
Preliminary Chapter 1
Section 4
Nation-building Funds Bill 2008 No. , 2008 5
balance of the Health and Hospitals Fund means the sum of:
1
(a) amounts standing to the credit of the Health and Hospitals
2
Fund Special Account; and
3
(b) the value of investments of the Health and Hospitals Fund.
4
bank has the same meaning as in the Financial Management and
5
Accountability Act 1997.
6
Building Australia Fund means the Building Australia Fund
7
established by section 12.
8
Building Australia Fund investment function of the Future Fund
9
Board means:
10
(a) a function or power conferred on the Future Fund Board by
11
section 32, 34, 40, 42, 44 or 45; or
12
(b) a right or power conferred on the Future Fund Board in its
13
capacity as the holder of an investment of the Building
14
Australia Fund.
15
Building Australia Fund Investment Mandate has the meaning
16
given by subsection 35(4).
17
Building Australia Fund Special Account means the Building
18
Australia Fund Special Account established by section 13.
19
business entity means:
20
(a) a company; or
21
(b) a partnership; or
22
(c) a trust; or
23
(d) a body politic.
24
carriage service has the same meaning as in the
25
Telecommunications Act 1997.
26
Chair means the Chair of the Future Fund Board.
27
COAG Reform Fund means the COAG Reform Fund established
28
by section 5 of the COAG Reform Fund Act 2008.
29
Communications Department means the Department administered
30
by the Communications Minister.
31
Chapter 1 Preliminary
Section 4
6 Nation-building Funds Bill 2008 No. , 2008
Communications Minister means the Minister who administers the
1
Telecommunications Act 1997.
2
debenture has the same meaning as in the Corporations Act 2001.
3
derivative means a derivative (within the meaning of Chapter 7 of
4
the Corporations Act 2001) that is a financial asset.
5
designated education infrastructure-related matter has the
6
meaning given by section 143.
7
drawing right means a drawing right issued under section 27 of the
8
Financial Management and Accountability Act 1997.
9
Education Department means the Department administered by the
10
Education Minister.
11
Education Investment Fund means the Education Investment
12
Fund established by section 131.
13
Education Investment Fund investment function of the Future
14
Fund Board means:
15
(a) a function or power conferred on the Future Fund Board by
16
section 151, 153, 159, 161, 163 or 164; or
17
(b) a right or power conferred on the Future Fund Board in its
18
capacity as the holder of an investment of the Education
19
Investment Fund.
20
Education Investment Fund Investment Mandate has the
21
meaning given by subsection 154(4).
22
Education Investment Fund Special Account means the
23
Education Investment Fund Special Account established by
24
section 132.
25
Education Minister means the Minister who administers Part 2-2
26
of the Higher Education Support Act 2003.
27
Note:
Part 2-2 of the Higher Education Support Act 2003 deals with the
28
Commonwealth Grant Scheme.
29
EIF Advisory Board means the Education Investment Fund
30
Advisory Board established under section 170.
31
Preliminary Chapter 1
Section 4
Nation-building Funds Bill 2008 No. , 2008 7
EIF designated Ministers means:
1
(a) the Education Minister; and
2
(b) the Research Minister.
3
EIF Education Portfolio Special Account means the EIF
4
Education Portfolio Special Account established by section 181.
5
EIF evaluation criteria means evaluation criteria under
6
section 172.
7
EIF Research Portfolio Special Account means the EIF Research
8
Portfolio Special Account established by section 188.
9
eligible national broadband network matter has the meaning
10
given by section 23.
11
Energy Department means the Department administered by the
12
Energy Minister.
13
Energy Minister means the Minister who administers the
14
Australian Energy Market Act 2004.
15
Finance Department means the Department administered by the
16
Finance Minister.
17
Finance Minister has the same meaning as in the Financial
18
Management and Accountability Act 1997.
19
financial asset has the meaning given by section 5.
20
Future Fund Board means the Future Fund Board of Guardians.
21
Future Fund Board member means a member of the Future Fund
22
Board, and includes the Chair.
23
Future Fund Special Account means the Future Fund Special
24
Account established by section 12 of the Future Fund Act 2006.
25
GFS Australia means the publication of the Australian Bureau of
26
Statistics known as Australian System of Government Finance
27
Statistics: Concepts, Sources and Methods, as updated from time to
28
time. This updating takes 2 forms, as follows:
29
Chapter 1 Preliminary
Section 4
8 Nation-building Funds Bill 2008 No. , 2008
(a) from time to time, a new version of the publication is
1
produced;
2
(b) from time to time, material in the current version of the
3
publication is updated by other publications of the Australian
4
Bureau of Statistics.
5
GFS system has the same meaning as in GFS Australia.
6
Health and Hospitals Fund means the Health and Hospitals Fund
7
established by section 214.
8
Health and Hospitals Fund investment function of the Future
9
Fund Board means:
10
(a) a function or power conferred on the Future Fund Board by
11
section 227, 228, 234, 236, 238 or 239; or
12
(b) a right or power conferred on the Future Fund Board in its
13
capacity as the holder of an investment of the Health and
14
Hospitals Fund.
15
Health and Hospitals Fund Investment Mandate has the meaning
16
given by subsection 229(4).
17
Health and Hospitals Fund Special Account means the Health
18
and Hospitals Fund Special Account established by section 215.
19
Health Department means the Department administered by the
20
Health Minister.
21
Health Minister means the Minister responsible for administering
22
the Health Insurance Act 1973.
23
HHF Advisory Board means the Health and Hospitals Fund
24
Advisory Board established under section 245.
25
HHF evaluation criteria means evaluation criteria under
26
section 247.
27
HHF Health Portfolio Special Account means the HHF Health
28
Portfolio Special Account established by section 255.
29
higher education institution means an institution specified in a
30
legislative instrument made by the EIF designated Ministers for the
31
purposes of this definition.
32
Preliminary Chapter 1
Section 4
Nation-building Funds Bill 2008 No. , 2008 9
Infrastructure Department means the Department administered by
1
the Infrastructure Minister.
2
Infrastructure Minister means the Minister who administers the
3
Infrastructure Australia Act 2008.
4
investment means any mode of application of money or financial
5
assets for the purpose of gaining a return (whether by way of
6
income, capital gain or any other form of return).
7
investment manager means a person or body (other than the
8
Agency) who undertakes to do any or all of the following:
9
(a) invest amounts on behalf of the Future Fund Board;
10
(b) manage the investment of funds on behalf of the Future Fund
11
Board;
12
(c) acquire derivatives on behalf of the Future Fund Board;
13
(d) manage derivatives on behalf of the Future Fund Board;
14
(e) enter into securities lending arrangements on behalf of the
15
Future Fund Board;
16
(f) realise financial assets on behalf of the Future Fund Board;
17
(g) perform custodial functions in relation to the financial assets
18
of the Future Fund Board.
19
investment of the Building Australia Fund means a financial asset
20
that, under a provision of this Act, is taken to be an investment of
21
the Building Australia Fund.
22
investment of the Education Investment Fund means a financial
23
asset that, under a provision of this Act, is taken to be an
24
investment of the Education Investment Fund.
25
investment of the Health and Hospitals Fund means a financial
26
asset that, under a provision of this Act, is taken to be an
27
investment of the Health and Hospitals Fund.
28
modifications includes additions, omissions and substitutions.
29
national broadband network means a national telecommunications
30
network for the high-speed carriage of communications. For this
31
purpose, carriage, communications and telecommunications
32
Chapter 1 Preliminary
Section 4
10 Nation-building Funds Bill 2008 No. , 2008
network have the same meanings as in the Telecommunications Act
1
1997.
2
Note:
See also subsection 7(2).
3
payment in relation to the creation or development of
4
communications infrastructure has a meaning affected by
5
section 22.
6
payment in relation to the creation or development of eligible
7
education infrastructure has the meaning given by section 142.
8
payment in relation to the creation or development of energy
9
infrastructure has a meaning affected by section 24.
10
payment in relation to the creation or development of health
11
infrastructure has a meaning affected by section 220.
12
payment in relation to the creation or development of higher
13
education infrastructure has the meaning given by section 139.
14
payment in relation to the creation or development of research
15
infrastructure has the meaning given by section 140.
16
payment in relation to the creation or development of transport
17
infrastructure has a meaning affected by section 21.
18
payment in relation to the creation or development of vocational
19
education and training infrastructure has the meaning given by
20
section 141.
21
payment in relation to the creation or development of water
22
infrastructure has a meaning affected by section 25.
23
person (except in Division 2 of Part 3.4 and Division 2 of Part 4.4)
24
includes a partnership.
25
Note:
See also paragraph 22(1)(a) of the Acts Interpretation Act 1901.
26
realise includes redeem or dispose of.
27
Research Department means the Department administered by the
28
Research Minister.
29
Preliminary Chapter 1
Section 5
Nation-building Funds Bill 2008 No. , 2008 11
research institution means an institution specified in a legislative
1
instrument made by the EIF designated Ministers for the purposes
2
of this definition.
3
Research Minister means the Minister who administers the
4
Australian Research Council Act 2001.
5
responsible Ministers means:
6
(a) the Treasurer; and
7
(b) the Finance Minister.
8
securities lending arrangement means an agreement of the kind
9
known as a securities lending arrangement.
10
transitional HEEF payment has the meaning given by
11
section 144.
12
Treasury Department means the Department administered by the
13
Treasurer.
14
value of an investment of:
15
(a) the Building Australia Fund; or
16
(b) the Education Investment Fund; or
17
(c) the Health and Hospitals Fund;
18
means the market value of the investment. For this purpose,
19
disregard anything that would prevent or restrict conversion of a
20
financial asset to money.
21
vocational education and training provider means a person or
22
body specified in a legislative instrument made by the EIF
23
designated Ministers for the purposes of this definition.
24
Water Department means the Department administered by the
25
Water Minister.
26
Water Minister means the Minister who administers the Water Act
27
2007.
28
5 Financial assets
29
A reference in this Act to a financial asset is a reference to:
30
Chapter 1 Preliminary
Section 6
12 Nation-building Funds Bill 2008 No. , 2008
(a) an asset that, in accordance with GFS Australia, is treated as
1
a financial asset for the purposes of the GFS system in
2
Australia; or
3
(b) an asset specified in regulations made for the purposes of this
4
paragraph;
5
but does not include a reference to an asset that, under the
6
regulations, is taken to be a non-financial asset for the purposes of
7
this Act.
8
Note:
For specification by class, see subsection 13(3) of the Legislative
9
Instruments Act 2003.
10
6 Crown to be bound
11
(1) This Act binds the Crown in each of its capacities.
12
(2) This Act does not make the Crown liable to be prosecuted for an
13
offence.
14
7 Extension to external Territories
15
(1) This Act extends to every external Territory.
16
(2) However, for the purposes of this Act, it is immaterial whether a
17
national broadband network extends to an external Territory.
18
8 Extra-territorial application
19
This Act extends to acts, omissions, matters and things outside
20
Australia (unless the contrary intention appears).
21
22
Building Australia Fund Chapter 2
Introduction Part 2.1
Section 9
Nation-building Funds Bill 2008 No. , 2008 13
1
Chapter 2--Building Australia Fund
2
Part 2.1--Introduction
3
4
9 Object
5
The object of this Chapter is to enhance the Commonwealth's
6
ability:
7
(a) to make payments in relation to the creation or development
8
of transport infrastructure; and
9
(b) to make payments in relation to the creation or development
10
of communications infrastructure; and
11
(c) to make payments in relation to eligible national broadband
12
network matters; and
13
(d) to make payments in relation to the creation or development
14
of energy infrastructure; and
15
(e) to make payments in relation to the creation or development
16
of water infrastructure.
17
10 Simplified outline
18
The following is a simplified outline of this Chapter:
19
·
This Chapter sets up the Building Australia Fund, which
20
consists of:
21
(a) the Building Australia Fund Special Account; and
22
(b) the investments of the Building Australia Fund.
23
·
The main purposes of the Building Australia Fund Special
24
Account are:
25
(a) to make payments in relation to the creation or
26
development of transport infrastructure; and
27
Chapter 2 Building Australia Fund
Part 2.1 Introduction
Section 10
14 Nation-building Funds Bill 2008 No. , 2008
(b) to make payments in relation to the creation or
1
development of communications infrastructure;
2
and
3
(c) to make payments in relation to eligible national
4
broadband network matters; and
5
(d) to make payments in relation to the creation or
6
development of energy infrastructure; and
7
(e) to make payments in relation to the creation or
8
development of water infrastructure.
9
·
The Finance Minister is responsible for authorising payments
10
on the recommendation of the Infrastructure Minister, the
11
Communications Minister, the Energy Minister or the Water
12
Minister.
13
·
If a payment is made by way of a grant of financial assistance,
14
the terms and conditions on which the financial assistance is
15
granted are to be set out in a written agreement between the
16
Commonwealth and the recipient.
17
·
The Future Fund Board is responsible for deciding how to
18
invest the Building Australia Fund.
19
·
Investments of the Building Australia Fund will consist of
20
financial assets.
21
·
The Future Fund Board is bound by a Building Australia Fund
22
Investment Mandate given to it by the responsible Ministers.
23
Note:
The Future Fund Act 2006 provides that the Future Fund Management
24
Agency is responsible for assisting and advising the Future Fund
25
Board.
26
27
Building Australia Fund Chapter 2
Building Australia Fund Part 2.2
Introduction Division 1
Section 11
Nation-building Funds Bill 2008 No. , 2008 15
1
Part 2.2--Building Australia Fund
2
Division 1--Introduction
3
11 Simplified outline
4
The following is a simplified outline of this Part:
5
·
This Part sets up the Building Australia Fund.
6
·
The Building Australia Fund consists of:
7
(a) the Building Australia Fund Special Account; and
8
(b) the investments of the Building Australia Fund.
9
·
The balance of the Communications Fund is to be transferred
10
to the Building Australia Fund.
11
·
The balance of the Telstra Sale Special Account is to be
12
transferred to the Building Australia Fund.
13
·
One or more initial amounts are to be credited to the Building
14
Australia Fund Special Account by 30 June 2009. The total of
15
the initial amounts must equal $7.5 billion.
16
·
The responsible Ministers may determine that additional
17
amounts are to be credited to the Building Australia Fund
18
Special Account.
19
·
Amounts may be debited from the Building Australia Fund
20
Special Account in accordance with the purposes of the
21
Building Australia Fund Special Account.
22
·
The main purposes of the Building Australia Fund Special
23
Account are:
24
Chapter 2 Building Australia Fund
Part 2.2 Building Australia Fund
Division 1 Introduction
Section 11
16 Nation-building Funds Bill 2008 No. , 2008
(a) to make payments in relation to the creation or
1
development of transport infrastructure; and
2
(b) to make payments in relation to the creation or
3
development of communications infrastructure;
4
and
5
(c) to make payments in relation to eligible national
6
broadband network matters; and
7
(d) to make payments in relation to the creation or
8
development of energy infrastructure; and
9
(e) to make payments in relation to the creation or
10
development of water infrastructure.
11
Note 1:
The Communications Fund was established by repealed
12
section 158ZG of the Telecommunications (Consumer Protection and
13
Service Standards) Act 1999.
14
Note 2:
The Telstra Sale Special Account was established under subsection
15
20(1) of the Financial Management and Accountability Act 1997.
16
17
Building Australia Fund Chapter 2
Building Australia Fund Part 2.2
Establishment of the Building Australia Fund etc. Division 2
Section 12
Nation-building Funds Bill 2008 No. , 2008 17
1
Division 2--Establishment of the Building Australia Fund
2
etc.
3
12 Establishme nt of the Building Australia Fund
4
(1) The Building Australia Fund is established by this section.
5
(2) The Building Australia Fund consists of:
6
(a) the Building Australia Fund Special Account; and
7
(b) the investments of the Building Australia Fund.
8
13 Establishme nt of the Building Australia Fund Special Account
9
(1) The Building Australia Fund Special Account is established by this
10
section.
11
(2) The Building Australia Fund Special Account is a Special Account
12
for the purposes of the Financial Management and Accountability
13
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
20
Chapter 2 Building Australia Fund
Part 2.2 Building Australia Fund
Division 3 Credits of amounts to the Building Australia Fund
Section 14
18 Nation-building Funds Bill 2008 No. , 2008
1
Division 3--Credits of amounts to the Building Australia
2
Fund
3
14 Initial credits of amounts to the Building Australia Fund Special
4
Account
5
(1) The responsible Ministers may, by writing, determine that:
6
(a) a specified amount is to be credited to the Building Australia
7
Fund Special Account on a specified day; or
8
(b) a specified amount is to be credited to the Building Australia
9
Fund Special Account in specified instalments on specified
10
days.
11
(2) The responsible Ministers must ensure that, by the end of 30 June
12
2009, the total of the amounts credited to the Building Australia
13
Fund Special Account under subsection (1) equals $7.5 billion.
14
Note 1:
See also section 16 (balance of the Communications Fund to be
15
credited to the Building Australia Fund Special Account).
16
Note 2:
See also section 33 (Building Australia Fund to inherit investments of
17
the Communications Fund).
18
Note 3:
See also section 17 (balance of the Telstra Sale Special Account to be
19
credited to the Building Australia Fund Special Account).
20
(3) The responsible Ministers must not make a determination under
21
subsection (1) after 30 June 2009.
22
(4) A determination under subsection (1) is irrevocable.
23
(5) A determination under subsection (1) is a legislative instrument,
24
but section 42 (disallowance) of the Legislative Instruments Act
25
2003 does not apply to the determination.
26
15 Subsequent credits of amounts to the Building Australia Fund
27
Special Account--determinations by the responsible
28
Ministers
29
(1) The responsible Ministers may, by writing, determine that:
30
Building Australia Fund Chapter 2
Building Australia Fund Part 2.2
Cred its of amounts to the Build ing Australia Fund Division 3
Section 16
Nation-building Funds Bill 2008 No. , 2008 19
(a) a specified amount is to be credited to the Building Australia
1
Fund Special Account on a specified day; or
2
(b) a specified amount is to be credited to the Building Australia
3
Fund Special Account in specified instalments on specified
4
days.
5
Note:
For variation and revocation, see subsection 33(3) of the Acts
6
Interpretation Act 1901.
7
(2) In making a determination under subsection (1), the responsible
8
Ministers must have regard to the object of this Chapter.
9
(3) A determination under subsection (1) is a legislative instrument,
10
but section 42 (disallowance) of the Legislative Instruments Act
11
2003 does not apply to the determination.
12
16 Credit of amount to the Building Australia Fund Special
13
Account--balance of the Communications Fund Special
14
Account
15
As soon as practicable after the commencement of this section,
16
there is to be credited to the Building Australia Fund Special
17
Account an amount equal to the balance of the Communications
18
Fund Special Account as at immediately before the commencement
19
of this section.
20
Note:
The Communications Fund Special Account was established by
21
repealed section 158ZH of the Telecommunications (Consumer
22
Protection and Service Standards) Act 1999.
23
17 Credit of amount to the Building Australia Fund Special
24
Account--balance of the Telstra Sale Special Account
25
(1) The responsible Ministers may, by writing, determine that an
26
amount equal to the balance of the Telstra Sale Special Account as
27
at a specified time is to be:
28
(a) debited from the Telstra Sale Special Account; and
29
(b) credited to the Building Australia Fund Special Account.
30
Note:
The Telstra Sale Special Account was established under subsection
31
20(1) of the Financial Management and Accountability Act 1997.
32
Chapter 2 Building Australia Fund
Part 2.2 Building Australia Fund
Division 3 Credits of amounts to the Building Australia Fund
Section 17
20 Nation-building Funds Bill 2008 No. , 2008
(2) The responsible Ministers must make a determination under
1
subsection (1) before the end of 30 June 2009.
2
(3) A determination under subsection (1) is a legislative instrument,
3
but section 42 (disallowance) of the Legislative Instruments Act
4
2003 does not apply to the determination.
5
6
Building Australia Fund Chapter 2
Building Australia Fund Part 2.2
Debits of amounts from the Building Australia Fund Division 4
Section 18
Nation-building Funds Bill 2008 No. , 2008 21
1
Division 4--Debits of amounts from the Building Australia
2
Fund
3
18 Purposes of the Building Australia Fund Special Account--
4
payments purposes and purposes related exclusively to
5
the Building Australia Fund
6
(1) Each of the following is a purpose of the Building Australia Fund
7
Special Account:
8
(a) making payments in relation to the creation or development
9
of transport infrastructure, so long as the payments are
10
authorised under subsection 51(1);
11
(b) making payments in relation to the creation or development
12
of communications infrastructure, so long as the payments
13
are authorised under subsection 51(2);
14
(c) making payments in relation to eligible national broadband
15
network matters, so long as the payments are authorised
16
under subsection 51(3);
17
(d) making payments in relation to the creation or development
18
of energy infrastructure, so long as the payments are
19
authorised under subsection 51(4);
20
(e) making payments in relation to the creation or development
21
of water infrastructure, so long as the payments are
22
authorised under subsection 51(5);
23
(f) paying the costs of, or incidental to, the acquisition of
24
financial assets under section 32;
25
(g) paying expenses of an investment of the Building Australia
26
Fund;
27
(h) paying the costs of, or incidental to, the acquisition of
28
derivatives under section 42;
29
(i) paying or discharging the costs, expenses and other
30
obligations incurred by the Future Fund Board under a
31
contract between the Future Fund Board and an investment
32
manager engaged under subsection 45(1);
33
(j) paying or discharging the costs, expenses and other
34
obligations incurred in connection with the establishment,
35
Chapter 2 Building Australia Fund
Part 2.2 Building Australia Fund
Division 4 Debits of amounts from the Bu ild ing Australia Fund
Section 19
22 Nation-building Funds Bill 2008 No. , 2008
maintenance or operation of a bank account of the Future
1
Fund Board, where the bank account relates exclusively to
2
the Building Australia Fund;
3
(k) paying a premium in respect of a contract of insurance
4
entered into by the Future Fund Board exclusively in
5
connection with the Building Australia Fund;
6
(l) paying or discharging any other costs, expenses, obligations
7
or liabilities incurred by the Future Fund Board exclusively
8
in connection with the Building Australia Fund.
9
Note:
See section 21 of the Financial Management and Accountability Act
10
1997 (debits from Special Accounts).
11
(2) Paragraphs (1)(b) and (c) do not limit each other.
12
(3) A payment under paragraph (1)(a), (b), (c), (d) or (e) may be made:
13
(a) by way of a grant of financial assistance; or
14
(b) otherwise than by way of a grant of financial assistance.
15
Note 1:
Section 63 deals with the channelling of payments through the BAF
16
Infrastructure Portfolio Special Account.
17
Note 2:
Section 70 deals with the channelling of payments through the BAF
18
Communications Portfolio Special Account.
19
Note 3:
Section 77 deals with the channelling of payments through the BAF
20
Energy Portfolio Special Account.
21
Note 4:
Section 84 deals with the channelling of payments through the BAF
22
Water Portfolio Special Account.
23
Note 5:
Sections 89, 94, 99 and 104 deal with the channelling of
24
State/Territory grants payments through the COAG Reform Fund.
25
19 Purposes of the Building Australia Fund Special Account--
26
transitional
27
Each of the following is a purpose of the Building Australia Fund
28
Special Account:
29
(a) paying the costs of, or incidental to, the acquisition of
30
financial assets under repealed Division 3 of Part 9C of the
31
Telecommunications (Consumer Protection and Service
32
Standards) Act 1999, where the costs were incurred before
33
the commencement of this section;
34
Building Australia Fund Chapter 2
Building Australia Fund Part 2.2
Debits of amounts from the Building Australia Fund Division 4
Section 20
Nation-building Funds Bill 2008 No. , 2008 23
(b) paying expenses of an investment of the Building Australia
1
Fund, where:
2
(i) immediately before the commencement of this section,
3
the investment was an investment of the
4
Communications Fund; and
5
(ii) the expense was incurred before the commencement of
6
this section;
7
(c) paying the costs of, or incidental to, the acquisition of
8
derivatives under repealed section 158ZQ of the
9
Telecommunications (Consumer Protection and Service
10
Standards) Act 1999, where the costs were incurred before
11
the commencement of this section;
12
(d) paying or discharging any other costs, expenses, obligations
13
or liabilities incurred by the Commonwealth in connection
14
with the Communications Fund, where the costs, expenses,
15
obligations or liabilities were incurred before the
16
commencement of this section.
17
Note 1:
See section 21 of the Financial Management and Accountability Act
18
1997 (debits from Special Accounts).
19
Note 2:
The Communications Fund was established by repealed
20
section 158ZG of the Telecommunications (Consumer Protection and
21
Service Standards) Act 1999.
22
20 Purposes of the Building Australia Fund Special Account--
23
purposes not related exclusively to the Building Australia
24
Fund
25
Each of the following is a purpose of the Building Australia Fund
26
Special Account:
27
(a) paying or discharging the costs, expenses and other
28
obligations incurred in connection with the establishment,
29
maintenance or operation of a bank account of the Future
30
Fund Board, where those costs, expenses or obligations are
31
not covered by:
32
(i) paragraph 18(1)(j); or
33
(ii) paragraph 136(1)(j); or
34
(iii) paragraph 137(e); or
35
(iv) paragraph 218(1)(f); or
36
Chapter 2 Building Australia Fund
Part 2.2 Building Australia Fund
Division 4 Debits of amounts from the Bu ild ing Australia Fund
Section 20
24 Nation-building Funds Bill 2008 No. , 2008
(v) paragraph 2(1)(g) of Schedule 2 to the Future Fund Act
1
2006;
2
(b) paying a premium in respect of a contract of insurance
3
entered into by the Future Fund Board, where the premium is
4
not covered by:
5
(i) paragraph 18(1)(k); or
6
(ii) paragraph 136(1)(k); or
7
(iii) paragraph 137(f); or
8
(iv) paragraph 218(1)(g); or
9
(v) paragraph 2(1)(h) of Schedule 2 to the Future Fund Act
10
2006;
11
(c) paying or discharging any other costs, expenses, obligations
12
or liabilities incurred by the Future Fund Board, where the
13
costs, expenses, obligations or liabilities are not covered by:
14
(i) a paragraph of subsection 18(1); or
15
(ii) a paragraph of subsection 136(1); or
16
(iii) a paragraph of section 137; or
17
(iv) a paragraph of subsection 218(1); or
18
(v) a paragraph of subclause 2(1) of Schedule 2 to the
19
Future Fund Act 2006;
20
(d) paying remuneration and allowances of Future Fund Board
21
members;
22
(e) paying remuneration, and other employment-related costs
23
and expenses, in respect of members of the staff of the
24
Agency;
25
(f) 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
(g) 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
Building Australia Fund Chapter 2
Building Australia Fund Part 2.2
Debits of amounts from the Building Australia Fund Division 4
Section 21
Nation-building Funds Bill 2008 No. , 2008 25
21 Extended meaning of payment in relation to the creation or
1
development of transport infrastructure
2
For the purposes of this Act, each of the following payments is
3
taken to be a payment in relation to the creation or development
4
of transport infrastructure:
5
(a) a payment in relation to the acquisition of shares in a
6
company that is, or will be, involved in the creation or
7
development of transport infrastructure;
8
(b) a payment in relation to the acquisition of debentures of a
9
company that is, or will be, involved in the creation or
10
development of transport infrastructure;
11
(c) a payment in relation to the acquisition of units in a unit trust
12
that is, or will be, involved in the creation or development of
13
transport infrastructure;
14
(d) a payment in relation to the acquisition of a financial asset in
15
a business entity that is, or will be, involved in the creation or
16
development of transport infrastructure;
17
(e) a payment in relation to a matter incidental or ancillary to a
18
matter set out in paragraph (a), (b), (c) or (d).
19
Note:
See section 121.
20
22 Extended meaning of payment in relation to the creation or
21
development of communications infrastructure
22
For the purposes of this Act, each of the following payments is
23
taken to be a payment in relation to the creation or development
24
of communications infrastructure:
25
(a) a payment in relation to the acquisition of shares in a
26
company that is, or will be, involved in the creation or
27
development of communications infrastructure;
28
(b) a payment in relation to the acquisition of debentures of a
29
company that is, or will be, involved in the creation or
30
development of communications infrastructure;
31
(c) a payment in relation to the acquisition of units in a unit trust
32
that is, or will be, involved in the creation or development of
33
communications infrastructure;
34
Chapter 2 Building Australia Fund
Part 2.2 Building Australia Fund
Division 4 Debits of amounts from the Bu ild ing Australia Fund
Section 23
26 Nation-building Funds Bill 2008 No. , 2008
(d) a payment in relation to the acquisition of any other financial
1
asset in a business entity that is, or will be, involved in the
2
creation or development of communications infrastructure;
3
(e) a payment in relation to a matter incidental or ancillary to a
4
matter set out in paragraph (a), (b), (c) or (d).
5
Note:
See section 121.
6
23 Eligible national broadband network matter
7
For the purposes of this Act, an eligible national broadband
8
network matter is any of the following matters:
9
(a) the acquisition of shares in a company that is, or will be,
10
involved in the creation or development of a national
11
broadband network;
12
(b) the acquisition of debentures of a company that is, or will be,
13
involved in the creation or development of a national
14
broadband network;
15
(c) the acquisition of units in a unit trust that is, or will be,
16
involved in the creation or development of a national
17
broadband network;
18
(d) the acquisition of any other financial asset in a business
19
entity that is, or will be, involved in the creation or
20
development of a national broadband network;
21
(e) the creation or development of a national broadband network;
22
(f) the supply of a broadband carriage service over a national
23
broadband network;
24
(g) the acquisition of assets for use in connection with the
25
creation or development of a national broadband network;
26
(h) a matter incidental or ancillary to a matter set out in
27
paragraph (a), (b), (c), (d), (e), (f) or (g).
28
Note:
See section 121.
29
24 Extended meaning of payment in relation to the creation or
30
development of energy infrastructure
31
For the purposes of this Act, each of the following payments is
32
taken to be a payment in relation to the creation or development
33
of energy infrastructure:
34
Building Australia Fund Chapter 2
Building Australia Fund Part 2.2
Debits of amounts from the Building Australia Fund Division 4
Section 25
Nation-building Funds Bill 2008 No. , 2008 27
(a) a payment in relation to the acquisition of shares in a
1
company that is, or will be, involved in the creation or
2
development of energy infrastructure;
3
(b) a payment in relation to the acquisition of debentures of a
4
company that is, or will be, involved in the creation or
5
development of energy infrastructure;
6
(c) a payment in relation to the acquisition of units in a unit trust
7
that is, or will be, involved in the creation or development of
8
energy infrastructure;
9
(d) a payment in relation to the acquisition of a financial asset in
10
a business entity that is, or will be, involved in the creation or
11
development of energy infrastructure;
12
(e) a payment in relation to a matter incidental or ancillary to a
13
matter set out in paragraph (a), (b), (c) or (d).
14
Note:
See section 121.
15
25 Extended meaning of payment in relation to the creation or
16
development of water infrastructure
17
For the purposes of this Act, each of the following payments is
18
taken to be a payment in relation to the creation or development
19
of water infrastructure:
20
(a) a payment in relation to the acquisition of shares in a
21
company that is, or will be, involved in the creation or
22
development of water infrastructure;
23
(b) a payment in relation to the acquisition of debentures of a
24
company that is, or will be, involved in the creation or
25
development of water infrastructure;
26
(c) a payment in relation to the acquisition of units in a unit trust
27
that is, or will be, involved in the creation or development of
28
water infrastructure;
29
(d) a payment in relation to the acquisition of a financial asset in
30
a business entity that is, or will be, involved in the creation or
31
development of water infrastructure;
32
(e) a payment in relation to a matter incidental or ancillary to a
33
matter set out in paragraph (a), (b), (c) or (d).
34
Note:
See section 121.
35
Chapter 2 Building Australia Fund
Part 2.2 Building Australia Fund
Division 4 Debits of amounts from the Bu ild ing Australia Fund
Section 26
28 Nation-building Funds Bill 2008 No. , 2008
26 Future Fund Board must ensure that there is sufficient money in
1
the Building Australia Fund Special Account to cover
2
authorised payments etc.
3
The Future Fund Board must take all reasonable steps to ensure
4
that the amount of money standing to the credit of the Building
5
Australia Fund Special Account is sufficient to cover:
6
(a) the debit of amounts for payments authorised, or proposed to
7
be authorised, under subsection 51(1), (2), (3), (4) or (5); and
8
(b) amounts debited, or proposed to be debited, under subsection
9
63(1); and
10
(c) amounts debited, or proposed to be debited, under subsection
11
70(1); and
12
(d) amounts debited, or proposed to be debited, under subsection
13
77(1); and
14
(e) amounts debited, or proposed to be debited, under subsection
15
84(1); and
16
(f) amounts debited, or proposed to be debited, under subsection
17
89(1); and
18
(g) amounts debited, or proposed to be debited, under subsection
19
94(1); and
20
(h) amounts debited, or proposed to be debited, under subsection
21
99(1); and
22
(i) amounts debited, or proposed to be debited, under subsection
23
104(1).
24
Note:
This may require the Future Fund Board to realise an investment of
25
the Building Australia Fund in accordance with section 34.
26
27
Building Australia Fund Chapter 2
Building Australia Fund Part 2.2
Inter-fund transfers Division 5
Section 27
Nation-building Funds Bill 2008 No. , 2008 29
1
Division 5--Inter-fund transfers
2
27 Transfers from the Building Australia Fund to the Future Fund
3
(1) If an amount is debited from the Future Fund Special Account for a
4
purpose mentioned in subclause 2(2) of Schedule 2 to the Future
5
Fund Act 2006, the Finance Minister may, by writing, direct that a
6
specified amount is to be:
7
(a) debited from the Building Australia Fund Special Account;
8
and
9
(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
28 Transfers from the Building Australia Fund to the Education
15
Investment Fund
16
(1) If an amount is debited from the Education Investment Fund
17
Special Account for a purpose mentioned in section 138, the
18
Finance Minister may, by writing, direct that a specified amount is
19
to be:
20
(a) debited from the Building Australia Fund Special Account;
21
and
22
(b) credited to the Education Investment Fund Special Account;
23
on a specified day.
24
(2) The specified amount must not exceed the amount debited from the
25
Education Investment Fund Special Account as mentioned in
26
subsection (1).
27
(3) A direction under subsection (1) is not a legislative instrument.
28
Chapter 2 Building Australia Fund
Part 2.2 Building Australia Fund
Division 5 Inter-fund transfers
Section 29
30 Nation-building Funds Bill 2008 No. , 2008
29 Transfers from the Building Australia Fund to the Health and
1
Hospitals Fund
2
(1) If an amount is debited from the Health and Hospitals Fund Special
3
Account for a purpose mentioned in section 219, the Finance
4
Minister may, by writing, direct that a specified amount is to be:
5
(a) debited from the Building Australia Fund Special Account;
6
and
7
(b) credited to the Health and Hospitals Fund Special Account;
8
on a specified day.
9
(2) The specified amount must not exceed the amount debited from the
10
Health and Hospitals Fund Special Account as mentioned in
11
subsection (1).
12
(3) A direction under subsection (1) is not a legislative instrument.
13
14
Building Australia Fund Chapter 2
Investment of the Building Australia Fund Part 2.3
Section 30
Nation-building Funds Bill 2008 No. , 2008 31
1
Part 2.3--Investment of the Building Australia
2
Fund
3
4
30 Simplified outline
5
The following is a simplified outline of this Part:
6
·
The Future Fund Board is responsible for deciding how to
7
invest the Building Australia Fund.
8
·
Investments of the Building Australia Fund will consist of
9
financial assets.
10
·
Investments of the Building Australia Fund will be held in the
11
name of the Future Fund Board.
12
·
The Future Fund Board is bound by a Building Australia Fund
13
Investment Mandate given to it by the responsible Ministers.
14
31 Objects of investment of the Building 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 Building Australia Fund is
17
to enhance the Commonwealth's ability:
18
(a) to make payments in relation to the creation or development
19
of transport infrastructure; and
20
(b) to make payments in relation to the creation or development
21
of communications infrastructure; and
22
(c) to make payments in relation to eligible national broadband
23
network matters; and
24
(d) to make payments in relation to the creation or development
25
of energy infrastructure; and
26
(e) to make payments in relation to the creation or development
27
of water infrastructure.
28
Chapter 2 Building Australia Fund
Part 2.3 Investment of the Bu ilding Australia Fund
Section 32
32 Nation-building Funds Bill 2008 No. , 2008
(2) The ancillary objects of the acquisition by the Future Fund Board
1
of a financial asset as an investment of the Building Australia Fund
2
are to enhance the ability of the Commonwealth and the Future
3
Fund Board to:
4
(a) discharge costs, expenses, obligations and liabilities; and
5
(b) make payments;
6
as mentioned in paragraphs 18(1)(f) to (l),19(a) to (d) and 20(a) to
7
(g).
8
32 Investment of the Building Australia Fund
9
(1) The Future Fund Board may invest amounts standing to the credit
10
of the Building Australia Fund Special Account in any financial
11
assets.
12
(2) Investments under subsection (1) are to be made in the name of the
13
Future Fund Board.
14
(3) Investments under subsection (1) are taken to be investments of the
15
Building Australia Fund.
16
(4) This section does not authorise the acquisition of a derivative.
17
Note:
For acquisition of derivatives, see section 42.
18
33 Building Australia Fund to inherit investments of the
19
Communications Fund
20
Scope
21
(1) This section applies to a financial asset if:
22
(a) immediately before the commencement of this section, the
23
financial asset was an investment of the Communications
24
Fund; and
25
(b) the financial asset is held by the Commonwealth; and
26
(c) the financial asset has been continuously held by the
27
Commonwealth since the commencement of this section.
28
Note:
The Communications Fund was established by repealed
29
section 158ZG of the Telecommunications (Consumer Protection and
30
Service Standards) Act 1999.
31
Building Australia Fund Chapter 2
Investment of the Building Australia Fund Part 2.3
Section 34
Nation-building Funds Bill 2008 No. , 2008 33
Investment of the Building Australia Fund
1
(2) The financial asset is taken to be an investment of the Building
2
Australia Fund.
3
Rights and powers
4
(3) The Future Fund Board may, on behalf of the Commonwealth,
5
exercise any rights or powers conferred on the Commonwealth in
6
the Commonwealth's capacity as the holder of the financial asset.
7
(4) Such a right or power is taken to be a Building Australia Fund
8
investment function of the Future Fund Board.
9
34 Management of investments of the Building Australia Fund
10
(1) Income derived from an investment of the Building Australia Fund
11
is to be credited to the Building Australia Fund Special Account.
12
(2) A return of capital, or any other financial distribution, relating to
13
an investment of the Building Australia Fund is to be credited to
14
the Building Australia Fund Special Account.
15
(3) The Future Fund Board may realise an investment of the Building
16
Australia Fund.
17
(4) Upon realisation of an investment of the Building Australia Fund,
18
the proceeds of the investment are to be credited to the Building
19
Australia Fund Special Account.
20
(5) At any time before an investment of the Building Australia Fund
21
matures, the Future Fund Board may authorise the re-investment of
22
the proceeds upon maturity in a financial asset investment with the
23
same entity. The new investment is taken to be an investment of
24
the Building Australia Fund.
25
(6) Section 39 of the Financial Management and Accountability Act
26
1997 does not apply to an investment of the Building Australia
27
Fund.
28
Chapter 2 Building Australia Fund
Part 2.3 Investment of the Bu ilding Australia Fund
Section 35
34 Nation-building Funds Bill 2008 No. , 2008
35 Building Australia Fund Investment Mandate
1
(1) The responsible Ministers may give the Future Fund Board written
2
directions about the performance of its Building Australia Fund
3
investment functions, and must give at least one such direction.
4
Note 1:
Building Australia Fund investment function is defined in section 4.
5
Note 2:
For variation and revocation, see subsection 33(3) of the Acts
6
Interpretation Act 1901.
7
(2) Subsection (1) has effect subject to section 36.
8
(3) In giving a direction under subsection (1), the responsible
9
Ministers must have regard to:
10
(a) maximising the return earned on the Building Australia Fund,
11
consistent with international best practice for institutional
12
investment; and
13
(b) enhancing the Commonwealth's ability:
14
(i) to make payments in relation to the creation or
15
development of transport infrastructure; and
16
(ii) to make payments in relation to the creation or
17
development of communications infrastructure; and
18
(iii) to make payments in relation to eligible national
19
broadband network matters; and
20
(iv) to make payments in relation to the creation or
21
development of energy infrastructure; and
22
(v) to make payments in relation to the creation or
23
development of water infrastructure; and
24
(c) such other matters as the responsible Ministers consider
25
relevant.
26
(4) Directions under subsection (1) are to be known collectively as the
27
Building Australia Fund Investment Mandate.
28
(5) A direction under subsection (1) may set out the policies to be
29
pursued by the Future Fund Board in relation to:
30
(a) matters of risk and return; and
31
(b) the allocation of financial assets.
32
A policy relating to the allocation of financial assets must not be
33
inconsistent with a policy relating to matters of risk and return.
34
Building Australia Fund Chapter 2
Investment of the Building Australia Fund Part 2.3
Section 35
Nation-building Funds Bill 2008 No. , 2008 35
(6) Subsection (5) does not limit subsection (1).
1
(7) Subsection (5) has effect subject to section 36.
2
(8) The Building Australia Fund Investment Mandate prevails over
3
subsection (12) to the extent of any inconsistency.
4
(9) The responsible Ministers must not give a direction under
5
subsection (1) that is inconsistent with this Act (other than
6
subsection (12)).
7
(10) A direction under subsection (1) must not take effect before the
8
15th day after the day on which it is given.
9
(11) A direction under subsection (1) is a legislative instrument.
10
Note 1:
Section 42 (disallowance) of the Legislative Instruments Act 2003
11
does not apply to the direction--see section 44 of that Act.
12
Note 2:
Part 6 (sunsetting) of the Legislative Instruments Act 2003 does not
13
apply to the direction--see section 54 of that Act.
14
(12) In the performance of its Building Australia Fund investment
15
functions, the Future Fund Board must seek to:
16
(a) maximise the return earned on the Building Australia Fund,
17
consistent with international best practice for institutional
18
investment; and
19
(b) enhance the Commonwealth's ability:
20
(i) to make payments in relation to the creation or
21
development of transport infrastructure; and
22
(ii) to make payments in relation to the creation or
23
development of communications infrastructure; and
24
(iii) to make payments in relation to eligible national
25
broadband network matters; and
26
(iv) to make payments in relation to the creation or
27
development of energy infrastructure; and
28
(v) to make payments in relation to the creation or
29
development of water infrastructure.
30
Note:
Building Australia Fund investment function is defined in section 4.
31
(13) Subsection (12) has effect subject to:
32
(a) this Act; and
33
Chapter 2 Building Australia Fund
Part 2.3 Investment of the Bu ilding Australia Fund
Section 36
36 Nation-building Funds Bill 2008 No. , 2008
(b) a direction under subsection (1).
1
36 Limitation on Building Australia Fund Investment Mandate
2
(1) The responsible Ministers must not give a direction under
3
subsection 35(1) that has the purpose, or has or is likely to have the
4
effect, of directly or indirectly requiring the Future Fund Board to:
5
(a) invest an amount standing to the credit of the Building
6
Australia Fund Special Account in a particular financial
7
asset; or
8
(b) acquire a particular derivative; or
9
(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
37 Future Fund Board to be consulted on Building Australia Fund
15
Investment Mandate
16
(1) Before giving the Future Fund Board a direction under subsection
17
35(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 35(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
Building Australia Fund Chapter 2
Investment of the Building Australia Fund Part 2.3
Section 38
Nation-building Funds Bill 2008 No. , 2008 37
Note:
For tabling of the direction, see section 38 of the Legislative
1
Instruments Act 2003.
2
(3) A time limit specified under this section must be reasonable.
3
38 Compliance with Building Australia Fund Investment Mandate
4
(1) The Future Fund Board must take all reasonable steps to comply
5
with the Building Australia Fund Investment Mandate.
6
(2) As soon as practicable after the Future Fund Board becomes aware
7
that it has failed to comply with the Building Australia Fund
8
Investment Mandate, the Future Fund Board must give the
9
responsible Ministers a written statement:
10
(a) informing the responsible Ministers of the failure to comply
11
with the Building Australia Fund Investment Mandate; and
12
(b) setting out the action that the Future Fund Board proposes to
13
take in order to comply with the Building Australia Fund
14
Investment Mandate.
15
(3) If the responsible Ministers are satisfied that the Future Fund
16
Board has failed to comply with the Building 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 Building Australia Fund Investment Mandate; and
23
(b) to take action specified in the notice, within a period
24
specified in the notice, in order to comply with the Building
25
Australia Fund Investment Mandate.
26
(4) The Future Fund Board must comply with a direction under
27
subsection (3).
28
(5) A failure to comply with:
29
(a) the Building Australia Fund Investment Mandate; or
30
(b) a direction under subsection (3);
31
does not affect the validity of any transaction.
32
(6) A direction under subsection (3) is not a legislative instrument.
33
Chapter 2 Building Australia Fund
Part 2.3 Investment of the Bu ilding Australia Fund
Section 39
38 Nation-building Funds Bill 2008 No. , 2008
39 Future Fund Board must not trigger the takeover provisions of
1
the Corporations Act 2001
2
(1) Subsections 606(1A) and (2A) and section 611 of the Corporations
3
Act 2001 do not apply to an acquisition by the Future Fund Board
4
if the acquisition is the result of the performance by the Future
5
Fund Board of its Building Australia Fund investment functions.
6
(2) A failure by the Future Fund Board to comply with section 606 of
7
the Corporations Act 2001 (as modified by this section) does not
8
affect the validity of any transaction.
9
Note:
See also section 39 of the Future Fund Act 2006 (application of the
10
Corporations Act 2001).
11
40 Borrowing
12
(1) The Future Fund Board must not borrow money for a purpose in
13
connection with the Building Australia Fund unless the borrowing
14
is authorised by subsection (2) or (3).
15
(2) The Future Fund Board is authorised to borrow money for a
16
purpose in connection with the Building Australia Fund if:
17
(a) the purpose of the borrowing is to enable the Future Fund
18
Board to cover settlement of a transaction for the acquisition
19
of one or more financial assets; and
20
(b) at the time the relevant acquisition decision was made, it was
21
likely that the borrowing would not be needed; and
22
(c) the period of the borrowing does not exceed 7 days; and
23
(d) if the borrowing were to take place, the total amount
24
borrowed by the Future Fund Board would not exceed 10%
25
of the balance of the Building Australia Fund.
26
(3) The Future Fund Board is authorised to borrow money for a
27
purpose in connection with the Building Australia Fund if the
28
borrowing takes place in such circumstances (if any) as are
29
specified in the regulations.
30
Building Australia Fund Chapter 2
Investment of the Building Australia Fund Part 2.3
Section 41
Nation-building Funds Bill 2008 No. , 2008 39
41 Building Australia Fund investment policies
1
(1) The Future Fund Board must formulate written policies to be
2
complied with by it in relation to the following matters in
3
connection with the Building Australia Fund:
4
(a) the investment strategy for the Building Australia Fund;
5
(b) benchmarks and standards for assessing the performance of
6
the Building Australia Fund;
7
(c) risk management for the Building Australia Fund;
8
(d) a matter relating to international best practice for institutional
9
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 Building Australia Fund
15
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 Building Australia Fund Investment
26
Mandate, the Future Fund Board must review any relevant policies
27
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
Chapter 2 Building Australia Fund
Part 2.3 Investment of the Bu ilding Australia Fund
Section 42
40 Nation-building Funds Bill 2008 No. , 2008
(8) A failure to comply with a policy formulated under subsection (1)
1
does not affect the validity of any transaction.
2
Policies
3
(9) A policy formulated under subsection (1) is not a legislative
4
instrument.
5
42 Derivatives
6
(1) The Future Fund Board may acquire a derivative for the purpose
7
of:
8
(a) protecting the value of an investment of the Building
9
Australia Fund (other than a derivative); or
10
(b) protecting the return on an investment of the Building
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 Building
14
Australia Fund; or
15
(d) achieving transactional efficiency for a purpose in connection
16
with the Building 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 41(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 Building Australia Fund.
27
43 Additional financial assets
28
If, as a result of:
29
(a) the Future Fund Board's holding of an investment of the
30
Building Australia Fund; or
31
Building Australia Fund Chapter 2
Investment of the Building Australia Fund Part 2.3
Section 44
Nation-building Funds Bill 2008 No. , 2008 41
(b) the exercise of any rights or powers conferred on the Future
1
Fund Board in its capacity as the holder of an investment of
2
the Building Australia Fund;
3
the Future Fund Board becomes the holder of a financial asset, that
4
financial asset is taken to be an investment of the Building
5
Australia Fund.
6
44 Securities lending arrangements
7
(1) The Future Fund Board may enter into securities lending
8
arrangements for a purpose in connection with the Building
9
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 Building 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 Building 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 Building Australia Fund.
20
45 Investment managers
21
(1) The Future Fund Board may engage one or more investment
22
managers for purposes in connection with the Building Australia
23
Fund.
24
(2) The Future Fund Board must not:
25
(a) invest amounts under subsection 32(1); or
26
(b) acquire derivatives under subsection 42(1); or
27
(c) enter into a securities lending arrangement under subsection
28
44(1); or
29
(d) realise financial assets that are investments of the Building
30
Australia Fund;
31
unless the Future Fund Board does so:
32
Chapter 2 Building Australia Fund
Part 2.3 Investment of the Bu ilding Australia Fund
Section 46
42 Nation-building Funds Bill 2008 No. , 2008
(e) through an investment manager engaged by the Future Fund
1
Board under subsection (1) of this section; or
2
(f) in a manner approved, in writing, by the responsible
3
Ministers.
4
(3) The Future Fund Board must ensure that any investment manager
5
engaged by the Future Fund Board under subsection (1) operates
6
within this Act.
7
(4) The Future Fund Board must ensure that any investment manager
8
engaged by the Future Fund Board under subsection (1) reports to:
9
(a) the Future Fund Board; and
10
(b) the Agency;
11
on the state of the investments of the Building Australia Fund at
12
such times and in such manner as the Future Fund Board
13
determines.
14
46 Custody of securities
15
Section 40 of the Financial Management and Accountability Act
16
1997 does not apply to an investment of the Building Australia
17
Fund.
18
47 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 Building
23
Australia Fund;
24
the refund is to be credited to the Building Australia Fund Special
25
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
Building Australia Fund Chapter 2
Investment of the Building Australia Fund Part 2.3
Section 48
Nation-building Funds Bill 2008 No. , 2008 43
48 Realisation of non-financial assets
1
(1) If an asset held by the Future Fund Board as an investment of the
2
Building Australia Fund ceases to be a financial asset:
3
(a) the Future Fund Board must realise the asset as soon as
4
practicable after the Future Fund Board becomes aware of the
5
cessation; and
6
(b) this Act (other than this section) applies in relation to the
7
asset (including in relation to the realisation of the asset) as if
8
the asset had remained a financial asset, and an investment of
9
the Building Australia Fund, until the realisation.
10
(2) If an asset acquired by the Future Fund Board, purportedly as an
11
investment of the Building Australia Fund, is not a financial asset:
12
(a) the Future Fund Board must realise the asset as soon as
13
practicable after the Future Fund Board becomes aware that
14
the asset is not a financial asset; and
15
(b) this Act (other than this section) applies in relation to the
16
asset (including in relation to the realisation of the asset) as if
17
the asset had been a financial asset, and an investment of the
18
Building Australia Fund, from the time of its acquisition by
19
the Future Fund Board until the realisation.
20
49 Additional function of the Future Fund Board
21
The functions of the Future Fund Board include the function of
22
investing amounts in accordance with this Chapter.
23
24
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 1 Introduction
Section 50
44 Nation-building Funds Bill 2008 No. , 2008
1
Part 2.4--Payments
2
Division 1--Introduction
3
50 Simplified outline
4
The following is a simplified outline of this Part:
5
·
The Finance Minister may authorise payments in relation to
6
the creation or development of transport infrastructure on the
7
recommendation of the Infrastructure Minister.
8
·
The Infrastructure Minister must obtain advice from
9
Infrastructure Australia before making a recommendation.
10
·
The Finance Minister may authorise:
11
(a) payments in relation to the creation or
12
development of communications infrastructure;
13
and
14
(b) payments in relation to eligible national broadband
15
network matters;
16
on the recommendation of the Communications Minister.
17
·
The Communications Minister must obtain advice from
18
Infrastructure Australia before making a recommendation in
19
relation to communications infrastructure.
20
·
The Finance Minister may authorise payments in relation to
21
the creation or development of energy infrastructure on the
22
recommendation of the Energy Minister.
23
·
The Energy Minister must obtain advice from Infrastructure
24
Australia before making a recommendation.
25
Building Australia Fund Chapter 2
Payments Part 2.4
Introduction Division 1
Section 50
Nation-building Funds Bill 2008 No. , 2008 45
·
The Finance Minister may authorise payments in relation to
1
the creation or development of water infrastructure on the
2
recommendation of the Water Minister.
3
·
The Water Minister must obtain advice from Infrastructure
4
Australia before making a recommendation.
5
·
If a payment is made by way of a grant of financial assistance,
6
the terms and conditions on which the financial assistance is
7
granted are to be set out in a written agreement between the
8
Commonwealth and the recipient.
9
·
Payments may be channelled through the BAF Infrastructure
10
Portfolio Special Account, the BAF Communications
11
Portfolio Special Account, the BAF Energy Portfolio Special
12
Account or the BAF Water Portfolio Special Account.
13
·
Grants of financial assistance to the States and Territories may
14
be channelled through the COAG Reform Fund.
15
·
The Finance Minister must comply with general drawing
16
rights limits.
17
·
The total amount of payments made in each financial year will
18
depend on the macroeconomic circumstances.
19
20
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 2 Direct pay ments
Section 51
46 Nation-building Funds Bill 2008 No. , 2008
1
Division 2--Direct payments
2
51 Authorisation of payme nts
3
(1) The Finance Minister may, by writing, authorise a payment in
4
relation to the creation or development of transport infrastructure.
5
(2) The Finance Minister may, by writing, authorise a payment in
6
relation to the creation or development of communications
7
infrastructure.
8
(3) The Finance Minister may, by writing, authorise a payment in
9
relation to one or more eligible national broadband network
10
matters.
11
(4) The Finance Minister may, by writing, authorise a payment in
12
relation to the creation or development of energy infrastructure.
13
(5) The Finance Minister may, by writing, authorise a payment in
14
relation to the creation or development of water infrastructure.
15
(6) Subsections (2) and (3) do not limit each other.
16
(7) 2 or more authorisations under this section may be set out in the
17
same document.
18
(8) An instrument under subsection (1), (2), (3), (4) or (5) is not a
19
legislative instrument.
20
52 Recommendations about payme nts
21
Transport infrastructure
22
(1) The Finance Minister must not authorise a payment under
23
subsection 51(1) unless the Infrastructure Minister has
24
recommended the authorisation of the payment.
25
(2) The Infrastructure Minister must not make a recommendation
26
under subsection (1) in relation to a payment unless Infrastructure
27
Australia has advised under section 116 that the payment satisfies
28
the relevant BAF evaluation criteria.
29
Building Australia Fund Chapter 2
Payments Part 2.4
Direct payments Division 2
Section 52
Nation-building Funds Bill 2008 No. , 2008 47
(3) In deciding whether to make a recommendation under
1
subsection (1) in relation to a payment, the Infrastructure Minister
2
must have regard to:
3
(a) advice about the payment that was given to the Infrastructure
4
Minister by Infrastructure Australia under section 116; and
5
(b) such other matters (if any) as the Infrastructure Minister
6
considers relevant.
7
Communications infrastructure
8
(4) The Finance Minister must not authorise a payment under
9
subsection 51(2) unless the Communications Minister has
10
recommended the authorisation of the payment.
11
(5) The Communications Minister must not make a recommendation
12
under subsection (4) in relation to a payment unless Infrastructure
13
Australia has advised under section 117 that the payment satisfies
14
the relevant BAF evaluation criteria.
15
(6) In deciding whether to make a recommendation under
16
subsection (4) in relation to a payment, the Communications
17
Minister must have regard to:
18
(a) advice about the payment that was given to the
19
Communications Minister by Infrastructure Australia under
20
section 117; and
21
(b) such other matters (if any) as the Communications Minister
22
considers relevant.
23
Eligible national broadband network matters
24
(7) The Finance Minister must not authorise a payment under
25
subsection 51(3) unless the Communications Minister has
26
recommended the authorisation of the payment.
27
Energy infrastructure
28
(8) The Finance Minister must not authorise a payment under
29
subsection 51(4) unless the Energy Minister has recommended the
30
authorisation of the payment.
31
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 2 Direct pay ments
Section 53
48 Nation-building Funds Bill 2008 No. , 2008
(9) The Energy Minister must not make a recommendation under
1
subsection (8) in relation to a payment unless Infrastructure
2
Australia has advised under section 118 that the payment satisfies
3
the relevant BAF evaluation criteria.
4
(10) In deciding whether to make a recommendation under
5
subsection (8) in relation to a payment, the Energy Minister must
6
have regard to:
7
(a) advice about the payment that was given to the Energy
8
Minister by Infrastructure Australia under section 118; and
9
(b) such other matters (if any) as the Energy Minister considers
10
relevant.
11
Water infrastructure
12
(11) The Finance Minister must not authorise a payment under
13
subsection 51(5) unless the Water Minister has recommended the
14
authorisation of the payment.
15
(12) The Water Minister must not make a recommendation under
16
subsection (11) in relation to a payment unless Infrastructure
17
Australia has advised under section 119 that the payment satisfies
18
the relevant BAF evaluation criteria.
19
(13) In deciding whether to make a recommendation under
20
subsection (11) in relation to a payment, the Water Minister must
21
have regard to:
22
(a) advice about the payment that was given to the Water
23
Minister by Infrastructure Australia under section 119; and
24
(b) such other matters (if any) as the Water Minister considers
25
relevant.
26
53 Grant to a State or Territory--transport infrastructure
27
Scope
28
(1) This section applies if:
29
(a) an amount is to be debited from the Building Australia Fund
30
Special Account for the purpose of making a payment to a
31
State or Territory; and
32
Building Australia Fund Chapter 2
Payments Part 2.4
Direct payments Division 2
Section 54
Nation-building Funds Bill 2008 No. , 2008 49
(b) the payment is by way of a grant of financial assistance; and
1
(c) the payment is for the purpose mentioned in paragraph
2
18(1)(a).
3
Terms and conditions
4
(2) The terms and conditions on which that financial assistance is
5
granted are to be set out in a written agreement between the
6
Commonwealth and the State or Territory.
7
(3) An agreement under subsection (2) may be entered into by the
8
Infrastructure Minister on behalf of the Commonwealth.
9
54 Grant to a State or Territory--communications infrastructure
10
etc.
11
Scope
12
(1) This section applies if:
13
(a) an amount is to be debited from the Building Australia Fund
14
Special Account for the purpose of making a payment to a
15
State or Territory; and
16
(b) the payment is by way of a grant of financial assistance; and
17
(c) the payment is for a purpose mentioned in paragraph 18(1)(b)
18
or (c).
19
Terms and conditions
20
(2) The terms and conditions on which that financial assistance is
21
granted are to be set out in a written agreement between the
22
Commonwealth and the State or Territory.
23
(3) An agreement under subsection (2) may be entered into by the
24
Communications Minister on behalf of the Commonwealth.
25
55 Grant to a State or Territory--energy infrastructure
26
Scope
27
(1) This section applies if:
28
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 2 Direct pay ments
Section 56
50 Nation-building Funds Bill 2008 No. , 2008
(a) an amount is to be debited from the Building Australia Fund
1
Special Account for the purpose of making a payment to a
2
State or Territory; and
3
(b) the payment is by way of a grant of financial assistance; and
4
(c) the payment is for the purpose mentioned in paragraph
5
18(1)(d).
6
Terms and conditions
7
(2) The terms and conditions on which that financial assistance is
8
granted are to be set out in a written agreement between the
9
Commonwealth and the State or Territory.
10
(3) An agreement under subsection (2) may be entered into by the
11
Energy Minister on behalf of the Commonwealth.
12
56 Grant to a State or Territory--water infrastructure
13
Scope
14
(1) This section applies if:
15
(a) an amount is to be debited from the Building Australia Fund
16
Special Account for the purpose of making a payment to a
17
State or Territory; and
18
(b) the payment is by way of a grant of financial assistance; and
19
(c) the payment is for the purpose mentioned in paragraph
20
18(1)(e).
21
Terms and conditions
22
(2) The terms and conditions on which that financial assistance is
23
granted are to be set out in a written agreement between the
24
Commonwealth and the State or Territory.
25
(3) An agreement under subsection (2) may be entered into by the
26
Water Minister on behalf of the Commonwealth.
27
Building Australia Fund Chapter 2
Payments Part 2.4
Direct payments Division 2
Section 57
Nation-building Funds Bill 2008 No. , 2008 51
57 Grant to a person other than a State or Te rritory--transport
1
infrastructure
2
Scope
3
(1) This section applies if:
4
(a) an amount is to be debited from the Building Australia Fund
5
Special Account for the purpose of making a payment to a
6
person other than a State or Territory; and
7
(b) the payment is by way of a grant of financial assistance; and
8
(c) the payment is for the purpose mentioned in paragraph
9
18(1)(a).
10
Terms and conditions
11
(2) The terms and conditions on which that financial assistance is
12
granted are to be set out in a written agreement between the
13
Commonwealth and the person.
14
(3) An agreement under subsection (2) may be entered into by the
15
Infrastructure Minister on behalf of the Commonwealth.
16
58 Grant to a person other than a State or Te rritory--
17
communications infrastructure etc.
18
Scope
19
(1) This section applies if:
20
(a) an amount is to be debited from the Building Australia Fund
21
Special Account for the purpose of making a payment to a
22
person other than a State or Territory; and
23
(b) the payment is by way of a grant of financial assistance; and
24
(c) the payment is for a purpose mentioned in paragraph 18(1)(b)
25
or (c).
26
Terms and conditions
27
(2) The terms and conditions on which that financial assistance is
28
granted are to be set out in a written agreement between the
29
Commonwealth and the person.
30
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 2 Direct pay ments
Section 59
52 Nation-building Funds Bill 2008 No. , 2008
(3) An agreement under subsection (2) may be entered into by the
1
Communications Minister on behalf of the Commonwealth.
2
59 Grant to a person other than a State or Te rritory--energy
3
infrastructure
4
Scope
5
(1) This section applies if:
6
(a) an amount is to be debited from the Building Australia Fund
7
Special Account for the purpose of making a payment to a
8
person other than a State or Territory; and
9
(b) the payment is by way of a grant of financial assistance; and
10
(c) the payment is for the purpose mentioned in paragraph
11
18(1)(d).
12
Terms and conditions
13
(2) The terms and conditions on which that financial assistance is
14
granted are to be set out in a written agreement between the
15
Commonwealth and the person.
16
(3) An agreement under subsection (2) may be entered into by the
17
Energy Minister on behalf of the Commonwealth.
18
60 Grant to a person other than a State or Te rritory--water
19
infrastructure
20
Scope
21
(1) This section applies if:
22
(a) an amount is to be debited from the Building Australia Fund
23
Special Account for the purpose of making a payment to a
24
person other than a State or Territory; and
25
(b) the payment is by way of a grant of financial assistance; and
26
(c) the payment is for the purpose mentioned in paragraph
27
18(1)(e).
28
Building Australia Fund Chapter 2
Payments Part 2.4
Direct payments Division 2
Section 60
Nation-building Funds Bill 2008 No. , 2008 53
Terms and conditions
1
(2) The terms and conditions on which that financial assistance is
2
granted are to be set out in a written agreement between the
3
Commonwealth and the person.
4
(3) An agreement under subsection (2) may be entered into by the
5
Water Minister on behalf of the Commonwealth.
6
7
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 3 Channelling of pay ments through the BAF Infrastructure Portfolio Special
Account
Section 61
54 Nation-building Funds Bill 2008 No. , 2008
1
Division 3--Channelling of payments through the BAF
2
Infrastructure Portfolio Special Account
3
61 Establishme nt of the BAF Infrastructure Portfolio Special
4
Account
5
(1) The BAF Infrastructure Portfolio Special Account is established by
6
this section.
7
(2) The BAF Infrastructure Portfolio Special Account is a Special
8
Account for the purposes of the Financial Management and
9
Accountability Act 1997.
10
62 Purpose of the BAF Infrastructure Portfolio Special Account
11
(1) The purpose of the BAF Infrastructure Portfolio Special Account is
12
making payments in relation to the creation or development of
13
transport infrastructure, so long as the payments are specified
14
under subsection 63(2).
15
Note:
See section 21 of the Financial Management and Accountability Act
16
1997 (debits from Special Accounts).
17
(2) A payment under subsection (1) may be made:
18
(a) by way of a grant of financial assistance; or
19
(b) otherwise than by way of a grant of financial assistance.
20
63 Channelling of payments through the BAF Infrastructure
21
Portfolio Special Account
22
(1) The Finance Minister may, by writing, direct that a specified
23
amount is to be:
24
(a) debited from the Building Australia Fund Special Account;
25
and
26
(b) credited to the BAF Infrastructure Portfolio Special Account;
27
on a specified day.
28
(2) The direction must be expressed to be given in order to enable the
29
specified amount to be debited from the BAF Infrastructure
30
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of pay ments through the BAF Infrastructure Portfolio Special Account
Division 3
Section 64
Nation-building Funds Bill 2008 No. , 2008 55
Portfolio Special Account for the purpose of making a specified
1
payment in relation to the creation or development of transport
2
infrastructure.
3
(3) 2 or more directions under subsection (1) may be set out in the
4
same document.
5
(4) A direction under subsection (1) is not a legislative instrument.
6
(5) The Finance Minister must give a copy of a direction under
7
subsection (1) to the Infrastructure Minister.
8
64 Recommendations about payme nts
9
(1) A payment in relation to the creation or development of transport
10
infrastructure must not be specified under subsection 63(2) unless
11
the Infrastructure Minister has recommended the specification of
12
the payment.
13
(2) The Infrastructure Minister must not make a recommendation
14
under subsection (1) in relation to a payment unless Infrastructure
15
Australia has advised under section 116 that the payment satisfies
16
the relevant BAF evaluation criteria.
17
(3) In deciding whether to make a recommendation under
18
subsection (1) in relation to a payment, the Infrastructure Minister
19
must have regard to:
20
(a) advice about the payment that was given to the Infrastructure
21
Minister by Infrastructure Australia under section 116; and
22
(b) such other matters (if any) as the Infrastructure Minister
23
considers relevant.
24
65 Payments--debit from the BAF Infrastructure Portfolio Special
25
Account
26
Scope
27
(1) This section applies if:
28
(a) the Finance Minister gives a direction under subsection 63(1)
29
for a purpose in relation to a payment; and
30
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 3 Channelling of pay ments through the BAF Infrastructure Portfolio Special
Account
Section 66
56 Nation-building Funds Bill 2008 No. , 2008
(b) the amount specified in the direction is credited to the BAF
1
Infrastructure Portfolio Special Account.
2
Debit from the BAF Infrastructure Portfolio Special Account
3
(2) The Infrastructure Minister must ensure that, as soon as practicable
4
after the amount is credited, the BAF Infrastructure Portfolio
5
Special Account is debited for the purposes of making the
6
payment.
7
(3) However, if the payment cannot be made, an amount equal to the
8
credited amount is to be:
9
(a) debited from the BAF Infrastructure Portfolio Special
10
Account; and
11
(b) credited to the Building Australia Fund Special Account.
12
66 Grant to a State or Territory--transport infrastructure
13
Scope
14
(1) This section applies if an amount is to be debited from the BAF
15
Infrastructure Portfolio Special Account for the purpose of making
16
a grant of financial assistance to a State or Territory.
17
Terms and conditions
18
(2) The terms and conditions on which that financial assistance is
19
granted are to be set out in a written agreement between the
20
Commonwealth and the State or Territory.
21
(3) An agreement under subsection (2) may be entered into by the
22
Infrastructure Minister on behalf of the Commonwealth.
23
67 Grant to a person other than a State or Te rritory--transport
24
infrastructure
25
Scope
26
(1) This section applies if:
27
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of pay ments through the BAF Infrastructure Portfolio Special Account
Division 3
Section 67
Nation-building Funds Bill 2008 No. , 2008 57
(a) an amount is to be debited from the BAF Infrastructure
1
Portfolio Special Account for the purpose of making a
2
payment to a person other than a State or Territory; and
3
(b) the payment is by way of a grant of financial assistance.
4
Terms and conditions
5
(2) The terms and conditions on which that financial assistance is
6
granted are to be set out in a written agreement between the
7
Commonwealth and the person.
8
(3) An agreement under subsection (2) may be entered into by the
9
Infrastructure Minister on behalf of the Commonwealth.
10
11
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 4 Channelling of pay ments through the BAF Co mmunications Portfolio
Special Account
Section 68
58 Nation-building Funds Bill 2008 No. , 2008
1
Division 4--Channelling of payments through the BAF
2
Communications Portfolio Special Account
3
68 Establishme nt of the BAF Communications Portfolio Special
4
Account
5
(1) The BAF Communications Portfolio Special Account is
6
established by this section.
7
(2) The BAF Communications Portfolio Special Account is a Special
8
Account for the purposes of the Financial Management and
9
Accountability Act 1997.
10
69 Purposes of the BAF Communications Portfolio Special Account
11
(1) Each of the following is a purpose of the BAF Communications
12
Portfolio Special Account:
13
(a) making payments in relation to the creation or development
14
of communications infrastructure, so long as the payments
15
are specified under subsection 70(2);
16
(b) making payments in relation to eligible national broadband
17
network matters, so long as the payments are specified under
18
subsection 70(2).
19
Note:
See section 21 of the Financial Management and Accountability Act
20
1997 (debits from Special Accounts).
21
(2) Paragraphs (1)(a) and (b) do not limit each other.
22
(3) A payment under paragraph (1)(a) or (b) may be made:
23
(a) by way of a grant of financial assistance; or
24
(b) otherwise than by way of a grant of financial assistance.
25
70 Channelling of payments through the BAF Communications
26
Portfolio Special Account
27
(1) The Finance Minister may, by writing, direct that a specified
28
amount is to be:
29
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of pay ments through the BAF Co mmun ications Portfolio Special Account
Division 4
Section 71
Nation-building Funds Bill 2008 No. , 2008 59
(a) debited from the Building Australia Fund Special Account;
1
and
2
(b) credited to the BAF Communications Portfolio Special
3
Account;
4
on a specified day.
5
(2) The direction must be expressed to be given in order to enable the
6
specified amount to be debited from the BAF Communications
7
Portfolio Special Account:
8
(a) for the purpose of making a specified payment in relation to
9
the creation or development of communications
10
infrastructure; or
11
(b) for the purpose of making a specified payment in relation to
12
one or more eligible national broadband network matters.
13
(3) Paragraphs (2)(a) and (b) do not limit each other.
14
(4) 2 or more directions under subsection (1) may be set out in the
15
same document.
16
(5) A direction under subsection (1) is not a legislative instrument.
17
(6) The Finance Minister must give a copy of a direction under
18
subsection (1) to the Communications Minister.
19
71 Recommendations about payme nts
20
Communications infrastructure
21
(1) A payment in relation to the creation or development of
22
communications infrastructure (other than a payment in relation to
23
an eligible national broadband network matter) must not be
24
specified under subsection 70(2) unless the Communications
25
Minister has recommended the specification of the payment.
26
(2) The Communications Minister must not make a recommendation
27
under subsection (1) in relation to a payment unless Infrastructure
28
Australia has advised under section 117 that the payment satisfies
29
the relevant BAF evaluation criteria.
30
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 4 Channelling of pay ments through the BAF Co mmunications Portfolio
Special Account
Section 72
60 Nation-building Funds Bill 2008 No. , 2008
(3) In deciding whether to make a recommendation under
1
subsection (1) in relation to a payment, the Communications
2
Minister must have regard to:
3
(a) advice about the payment that was given to the
4
Communications Minister by Infrastructure Australia under
5
section 117; and
6
(b) such other matters (if any) as the Communications Minister
7
considers relevant.
8
Eligible national broadband network matters
9
(4) A payment in relation to an eligible national broadband network
10
matter must not be specified under subsection 70(2) unless the
11
Communications Minister has recommended the specification of
12
the payment.
13
72 Payments--debit from the BAF Communications Portfolio
14
Special Account
15
Scope
16
(1) This section applies if:
17
(a) the Finance Minister gives a direction under subsection 70(1)
18
for a purpose in relation to a payment; and
19
(b) the amount specified in the direction is credited to the BAF
20
Communications Portfolio Special Account.
21
Debit from the BAF Communications Portfolio Special Account
22
(2) The Communications Minister must ensure that, as soon as
23
practicable after the amount is credited, the BAF Communications
24
Portfolio Special Account is debited for the purposes of making the
25
payment.
26
(3) However, if the payment cannot be made, an amount equal to the
27
credited amount is to be:
28
(a) debited from the BAF Communications Portfolio Special
29
Account; and
30
(b) credited to the Building Australia Fund Special Account.
31
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of pay ments through the BAF Co mmun ications Portfolio Special Account
Division 4
Section 73
Nation-building Funds Bill 2008 No. , 2008 61
73 Grant to a State or Territory--communications infrastructure
1
etc.
2
Scope
3
(1) This section applies if an amount is to be debited from the BAF
4
Communications Portfolio Special Account for the purpose of
5
making a grant of financial assistance to a State or Territory.
6
Terms and conditions
7
(2) The terms and conditions on which that financial assistance is
8
granted are to be set out in a written agreement between the
9
Commonwealth and the State or Territory.
10
(3) An agreement under subsection (2) may be entered into by the
11
Communications Minister on behalf of the Commonwealth.
12
74 Grant to a person other than a State or Te rritory--
13
communications infrastructure etc.
14
Scope
15
(1) This section applies if:
16
(a) an amount is to be debited from the BAF Communications
17
Portfolio Special Account for the purpose of making a
18
payment to a person other than a State or Territory; and
19
(b) the payment is by way of a grant of financial assistance.
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 person.
24
(3) An agreement under subsection (2) may be entered into by the
25
Communications Minister on behalf of the Commonwealth.
26
27
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 5 Channelling of pay ments through the BAF Energy Portfolio Special
Account
Section 75
62 Nation-building Funds Bill 2008 No. , 2008
1
Division 5--Channelling of payments through the BAF
2
Energy Portfolio Special Account
3
75 Establishme nt of the BAF Energy Portfolio Special Account
4
(1) The BAF Energy Portfolio Special Account is established by this
5
section.
6
(2) The BAF Energy Portfolio Special Account is a Special Account
7
for the purposes of the Financial Management and Accountability
8
Act 1997.
9
76 Purpose of the BAF Ene rgy Portfolio Special Account
10
(1) The purpose of the BAF Energy Portfolio Special Account is
11
making payments in relation to the creation or development of
12
energy infrastructure, so long as the payments are specified under
13
subsection 77(2).
14
Note:
See section 21 of the Financial Management and Accountability Act
15
1997 (debits from Special Accounts).
16
(2) A payment under subsection (1) may be made:
17
(a) by way of a grant of financial assistance; or
18
(b) otherwise than by way of a grant of financial assistance.
19
77 Channelling of payments through the BAF Energy Portfolio
20
Special Account
21
(1) The Finance Minister may, by writing, direct that a specified
22
amount is to be:
23
(a) debited from the Building Australia Fund Special Account;
24
and
25
(b) credited to the BAF Energy Portfolio Special Account;
26
on a specified day.
27
(2) The direction must be expressed to be given in order to enable the
28
specified amount to be debited from the BAF Energy Portfolio
29
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of pay ments through the BAF Energy Po rtfolio Special Account Division
5
Section 78
Nation-building Funds Bill 2008 No. , 2008 63
Special Account for the purpose of making a specified payment in
1
relation to the creation or development of energy infrastructure.
2
(3) 2 or more directions under subsection (1) may be set out in the
3
same document.
4
(4) A direction under subsection (1) is not a legislative instrument.
5
(5) The Finance Minister must give a copy of a direction under
6
subsection (1) to the Energy Minister.
7
78 Recommendations about payme nts
8
(1) A payment in relation to the creation or development of energy
9
infrastructure must not be specified under subsection 77(2) unless
10
the Energy Minister has recommended the specification of the
11
payment.
12
(2) The Energy Minister must not make a recommendation under
13
subsection (1) in relation to a payment unless Infrastructure
14
Australia has advised under section 118 that the payment satisfies
15
the relevant BAF evaluation criteria.
16
(3) In deciding whether to make a recommendation under
17
subsection (1) in relation to a payment, the Energy Minister must
18
have regard to:
19
(a) advice about the payment that was given to the Energy
20
Minister by Infrastructure Australia under section 118; and
21
(b) such other matters (if any) as the Energy Minister considers
22
relevant.
23
79 Payments--debit from the BAF Energy Portfolio Special Account
24
Scope
25
(1) This section applies if:
26
(a) the Finance Minister gives a direction under subsection 77(1)
27
for a purpose in relation to a payment; and
28
(b) the amount specified in the direction is credited to the BAF
29
Energy Portfolio Special Account.
30
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 5 Channelling of pay ments through the BAF Energy Portfolio Special
Account
Section 80
64 Nation-building Funds Bill 2008 No. , 2008
Debit from the BAF Energy Portfolio Special Account
1
(2) The Energy Minister must ensure that, as soon as practicable after
2
the amount is credited, the BAF Energy Portfolio Special Account
3
is debited for the purposes of making the payment.
4
(3) However, if the payment cannot be made, an amount equal to the
5
credited amount is to be:
6
(a) debited from the BAF Energy Portfolio Special Account; and
7
(b) credited to the Building Australia Fund Special Account.
8
80 Grant to a State or Territory--energy infrastructure
9
Scope
10
(1) This section applies if an amount is to be debited from the BAF
11
Energy Portfolio Special Account for the purpose of making a
12
grant of financial assistance to a State or Territory.
13
Terms and conditions
14
(2) The terms and conditions on which that financial assistance is
15
granted are to be set out in a written agreement between the
16
Commonwealth and the State or Territory.
17
(3) An agreement under subsection (2) may be entered into by the
18
Energy Minister on behalf of the Commonwealth.
19
81 Grant to a person other than a State or Te rritory--energy
20
infrastructure
21
Scope
22
(1) This section applies if:
23
(a) an amount is to be debited from the BAF Energy Portfolio
24
Special Account for the purpose of making a payment to a
25
person other than a State or Territory; and
26
(b) the payment is by way of a grant of financial assistance.
27
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of pay ments through the BAF Energy Po rtfolio Special Account Division
5
Section 81
Nation-building Funds Bill 2008 No. , 2008 65
Terms and conditions
1
(2) The terms and conditions on which that financial assistance is
2
granted are to be set out in a written agreement between the
3
Commonwealth and the person.
4
(3) An agreement under subsection (2) may be entered into by the
5
Energy Minister on behalf of the Commonwealth.
6
7
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 6 Channelling of pay ments through the BAF Water Portfo lio Special Account
Section 82
66 Nation-building Funds Bill 2008 No. , 2008
1
Division 6--Channelling of payments through the BAF
2
Water Portfolio Special Account
3
82 Establishme nt of the BAF Water Portfolio Special Account
4
(1) The BAF Water Portfolio Special Account is established by this
5
section.
6
(2) The BAF Water Portfolio Special Account is a Special Account for
7
the purposes of the Financial Management and Accountability Act
8
1997.
9
83 Purpose of the BAF Water Portfolio Special Account
10
(1) The purpose of the BAF Water Portfolio Special Account is
11
making payments in relation to the creation or development of
12
water infrastructure, so long as the payments are specified under
13
subsection 84(2).
14
Note:
See section 21 of the Financial Management and Accountability Act
15
1997 (debits from Special Accounts).
16
(2) A payment under subsection (1) may be made:
17
(a) by way of a grant of financial assistance; or
18
(b) otherwise than by way of a grant of financial assistance.
19
84 Channelling of payments through the BAF Water Portfolio
20
Special Account
21
(1) The Finance Minister may, by writing, direct that a specified
22
amount is to be:
23
(a) debited from the Building Australia Fund Special Account;
24
and
25
(b) credited to the BAF Water Portfolio Special Account;
26
on a specified day.
27
(2) The direction must be expressed to be given in order to enable the
28
specified amount to be debited from the BAF Water Portfolio
29
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of pay ments through the BAF Water Portfolio Special Account Division 6
Section 85
Nation-building Funds Bill 2008 No. , 2008 67
Special Account for the purpose of making a specified payment in
1
relation to the creation or development of water infrastructure.
2
(3) 2 or more directions under subsection (1) may be set out in the
3
same document.
4
(4) A direction under subsection (1) is not a legislative instrument.
5
(5) The Finance Minister must give a copy of a direction under
6
subsection (1) to the Water Minister.
7
85 Recommendations about payme nts
8
(1) A payment in relation to the creation or development of water
9
infrastructure must not be specified under subsection 84(2) unless
10
the Water Minister has recommended the specification of the
11
payment.
12
(2) The Water Minister must not make a recommendation under
13
subsection (1) in relation to a payment unless Infrastructure
14
Australia has advised under section 119 that the payment satisfies
15
the relevant BAF evaluation criteria.
16
(3) In deciding whether to make a recommendation under
17
subsection (1) in relation to a payment, the Water Minister must
18
have regard to:
19
(a) advice about the payment that was given to the Water
20
Minister by Infrastructure Australia under section 119; and
21
(b) such other matters (if any) as the Water Minister considers
22
relevant.
23
86 Payments--debit from the BAF Water Portfolio Special Account
24
Scope
25
(1) This section applies if:
26
(a) the Finance Minister gives a direction under subsection 84(1)
27
for a purpose in relation to a payment; and
28
(b) the amount specified in the direction is credited to the BAF
29
Water Portfolio Special Account.
30
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 6 Channelling of pay ments through the BAF Water Portfo lio Special Account
Section 87
68 Nation-building Funds Bill 2008 No. , 2008
Debit from the BAF Water Portfolio Special Account
1
(2) The Water Minister must ensure that, as soon as practicable after
2
the amount is credited, the BAF Water Portfolio Special Account is
3
debited for the purposes of making the payment.
4
(3) However, if the payment cannot be made, an amount equal to the
5
credited amount is to be:
6
(a) debited from the BAF Water Portfolio Special Account; and
7
(b) credited to the Building Australia Fund Special Account.
8
87 Grant to a State or Territory--water infrastructure
9
Scope
10
(1) This section applies if an amount is to be debited from the BAF
11
Water Portfolio Special Account for the purpose of making a grant
12
of financial assistance to a State or Territory.
13
Terms and conditions
14
(2) The terms and conditions on which that financial assistance is
15
granted are to be set out in a written agreement between the
16
Commonwealth and the State or Territory.
17
(3) An agreement under subsection (2) may be entered into by the
18
Water Minister on behalf of the Commonwealth.
19
88 Grant to a person other than a State or Te rritory--water
20
infrastructure
21
Scope
22
(1) This section applies if:
23
(a) an amount is to be debited from the BAF Water Portfolio
24
Special Account for the purpose of making a payment to a
25
person other than a State or Territory; and
26
(b) the payment is by way of a grant of financial assistance.
27
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of pay ments through the BAF Water Portfolio Special Account Division 6
Section 88
Nation-building Funds Bill 2008 No. , 2008 69
Terms and conditions
1
(2) The terms and conditions on which that financial assistance is
2
granted are to be set out in a written agreement between the
3
Commonwealth and the person.
4
(3) An agreement under subsection (2) may be entered into by the
5
Water Minister on behalf of the Commonwealth.
6
7
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 7 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 89
70 Nation-building Funds Bill 2008 No. , 2008
1
Division 7--Channelling of State/Territory grants
2
payments through the COAG Reform Fund
3
Subdivision A--Channelling of transport infrastructure grants
4
89 Channelling of State/Territory grants payme nts through the
5
COAG Reform Fund
6
(1) The Finance Minister may, by writing, direct that a specified
7
amount is to be:
8
(a) debited from the Building Australia Fund Special Account;
9
and
10
(b) credited to the BAF Infrastructure Portfolio Special Account;
11
on a specified day.
12
(2) The direction must be expressed to be given in order to enable the
13
specified amount to be:
14
(a) transferred from the BAF Infrastructure Portfolio Special
15
Account to the COAG Reform Fund; and
16
(b) debited from the COAG Reform Fund for the purpose of
17
making a specified grant of financial assistance to a State or
18
Territory.
19
(3) A grant specified under subsection (2) must be a grant of financial
20
assistance in relation to transport infrastructure.
21
(4) 2 or more directions under subsection (1) may be set out in the
22
same document.
23
(5) A direction under subsection (1) is not a legislative instrument.
24
(6) The Finance Minister must give a copy of a direction under
25
subsection (1) to the Treasurer and the Infrastructure Minister.
26
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of State/Territory grants payments through the COA G Reform Fund
Division 7
Section 90
Nation-building Funds Bill 2008 No. , 2008 71
90 Recommendations about grants payments--transport
1
infrastructure
2
(1) A grant must not be specified under subsection 89(2) unless the
3
Infrastructure Minister has recommended the specification of the
4
grant.
5
(2) The Infrastructure Minister must not make a recommendation
6
under subsection (1) in relation to a grant unless Infrastructure
7
Australia has advised under section 116 that the grant satisfies the
8
relevant BAF evaluation criteria.
9
(3) In deciding whether to make a recommendation under
10
subsection (1) in relation to a grant, the Infrastructure Minister
11
must have regard to:
12
(a) advice about the grant that was given to the Infrastructure
13
Minister by Infrastructure Australia under section 116; and
14
(b) such other matters (if any) as the Infrastructure Minister
15
considers relevant.
16
91 Transfers from the BAF Infrastructure Portfolio Special Account
17
to the COAG Reform Fund
18
Scope
19
(1) This section applies if:
20
(a) the Finance Minister gives a direction under subsection 89(1)
21
for a purpose in relation to a grant of financial assistance to a
22
State or Territory; and
23
(b) the amount specified in the direction is credited to the BAF
24
Infrastructure Portfolio Special Account.
25
Transfer direction
26
(2) As soon as practicable after the amount is credited, the
27
Infrastructure Minister must, by writing, direct that the amount is
28
to be:
29
(a) debited from the BAF Infrastructure Portfolio Special
30
Account; and
31
(b) credited to the COAG Reform Fund;
32
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 7 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 92
72 Nation-building Funds Bill 2008 No. , 2008
on a specified day.
1
(3) The direction must be expressed to be given in order to enable the
2
amount to be debited from the COAG Reform Fund for the
3
purpose of making the grant.
4
(4) 2 or more directions under subsection (2) may be set out in the
5
same document.
6
(5) A direction under subsection (2) is not a legislative instrument.
7
(6) The Infrastructure Minister must give a copy of a direction under
8
subsection (2) to the Treasurer.
9
92 Grants payments--debit from the COAG Reform Fund
10
Scope
11
(1) This section applies if:
12
(a) the Infrastructure Minister gives a direction under subsection
13
91(2) for a purpose in relation to a grant of financial
14
assistance to a State or Territory; and
15
(b) the amount specified in the direction is credited to the COAG
16
Reform Fund.
17
Debit from the COAG Reform Fund
18
(2) The Treasurer must ensure that, as soon as practicable after the
19
amount is credited, the COAG Reform Fund is debited for the
20
purposes of making the grant.
21
93 Grant to a State or Territory--transport infrastructure
22
Scope
23
(1) This section applies if:
24
(a) an amount is to be debited from the COAG Reform Fund for
25
the purpose of making a grant of financial assistance to a
26
State or Territory; and
27
(b) the grant is a grant of financial assistance in relation to
28
transport infrastructure; and
29
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of State/Territory grants payments through the COA G Reform Fund
Division 7
Section 94
Nation-building Funds Bill 2008 No. , 2008 73
(c) the grant is covered by subsection 92(2).
1
Note:
Subsection 92(2) deals with grants channelled through the COAG
2
Reform Fund.
3
Terms and conditions
4
(2) The terms and conditions on which that financial assistance is
5
granted are to be set out in a written agreement between the
6
Commonwealth and the State or Territory.
7
(3) An agreement under subsection (2) may be entered into by the
8
Infrastructure Minister on behalf of the Commonwealth.
9
Subdivision B--Channelling of communications infrastructure
10
grants
11
94 Channelling of State/Territory grants payme nts through the
12
COAG Reform Fund
13
(1) The Finance Minister may, by writing, direct that a specified
14
amount is to be:
15
(a) debited from the Building Australia Fund Special Account;
16
and
17
(b) credited to the BAF Communications Portfolio Special
18
Account;
19
on a specified day.
20
(2) The direction must be expressed to be given in order to enable the
21
specified amount to be:
22
(a) transferred from the BAF Communications Portfolio Special
23
Account to the COAG Reform Fund; and
24
(b) debited from the COAG Reform Fund for the purpose of
25
making a specified grant of financial assistance to a State or
26
Territory.
27
(3) A grant specified under subsection (2) must be a grant of financial
28
assistance in relation to communications infrastructure.
29
(4) 2 or more directions under subsection (1) may be set out in the
30
same document.
31
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 7 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 95
74 Nation-building Funds Bill 2008 No. , 2008
(5) A direction under subsection (1) is not a legislative instrument.
1
(6) The Finance Minister must give a copy of a direction under
2
subsection (1) to the Treasurer and the Communications Minister.
3
95 Recommendations about grants payments--communications
4
infrastructure
5
(1) A grant must not be specified under subsection 94(2) unless the
6
Communications Minister has recommended the specification of
7
the grant.
8
(2) The Communications Minister must not make a recommendation
9
under subsection (1) in relation to a grant unless Infrastructure
10
Australia has advised under section 117 that the grant satisfies the
11
relevant BAF evaluation criteria.
12
(3) In deciding whether to make a recommendation under
13
subsection (1) in relation to a grant, the Communications Minister
14
must have regard to:
15
(a) advice about the grant that was given to the Communications
16
Minister by Infrastructure Australia under section 117; and
17
(b) such other matters (if any) as the Communications Minister
18
considers relevant.
19
96 Transfers from the BAF Communications Portfolio Special
20
Account to the COAG Reform Fund
21
Scope
22
(1) This section applies if:
23
(a) the Finance Minister gives a direction under subsection 94(1)
24
for a purpose in relation to a grant of financial assistance to a
25
State or Territory; and
26
(b) the amount specified in the direction is credited to the BAF
27
Communications Portfolio Special Account.
28
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of State/Territory grants payments through the COA G Reform Fund
Division 7
Section 97
Nation-building Funds Bill 2008 No. , 2008 75
Transfer direction
1
(2) As soon as practicable after the amount is credited, the
2
Communications Minister must, by writing, direct that the amount
3
is to be:
4
(a) debited from the BAF Communications Portfolio Special
5
Account; and
6
(b) credited to the COAG Reform Fund;
7
on a specified day.
8
(3) The direction must be expressed to be given in order to enable the
9
amount to be debited from the COAG Reform Fund for the
10
purpose of making the grant.
11
(4) 2 or more directions under subsection (2) may be set out in the
12
same document.
13
(5) A direction under subsection (2) is not a legislative instrument.
14
(6) The Communications Minister must give a copy of a direction
15
under subsection (2) to the Treasurer.
16
97 Grants payments--debit from the COAG Reform Fund
17
Scope
18
(1) This section applies if:
19
(a) the Communications Minister gives a direction under
20
subsection 96(2) for a purpose in relation to a grant of
21
financial assistance to a State or Territory; and
22
(b) the amount specified in the direction is credited to the COAG
23
Reform Fund.
24
Debit from the COAG Reform Fund
25
(2) The Treasurer must ensure that, as soon as practicable after the
26
amount is credited, the COAG Reform Fund is debited for the
27
purposes of making the grant.
28
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 7 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 98
76 Nation-building Funds Bill 2008 No. , 2008
98 Grant to a State or Territory--communications infrastructure
1
Scope
2
(1) This section applies if:
3
(a) an amount is to be debited from the COAG Reform Fund for
4
the purpose of making a grant of financial assistance to a
5
State or Territory; and
6
(b) the grant is a grant of financial assistance in relation to
7
communications infrastructure; and
8
(c) the grant is covered by subsection 97(2).
9
Note:
Subsection 97(2) deals with grants channelled through the COAG
10
Reform Fund.
11
Terms and conditions
12
(2) The terms and conditions on which that financial assistance is
13
granted are to be set out in a written agreement between the
14
Commonwealth and the State or Territory.
15
(3) An agreement under subsection (2) may be entered into by the
16
Communications Minister on behalf of the Commonwealth.
17
Subdivision C--Channelling of energy infrastructure grants
18
99 Channelling of State/Territory grants payme nts through the
19
COAG Reform Fund
20
(1) The Finance Minister may, by writing, direct that a specified
21
amount is to be:
22
(a) debited from the Building Australia Fund Special Account;
23
and
24
(b) credited to the BAF Energy Portfolio Special Account;
25
on a specified day.
26
(2) The direction must be expressed to be given in order to enable the
27
specified amount to be:
28
(a) transferred from the BAF Energy Portfolio Special Account
29
to the COAG Reform Fund; and
30
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of State/Territory grants payments through the COA G Reform Fund
Division 7
Section 100
Nation-building Funds Bill 2008 No. , 2008 77
(b) debited from the COAG Reform Fund for the purpose of
1
making a specified grant of financial assistance to a State or
2
Territory.
3
(3) A grant specified under subsection (2) must be a grant of financial
4
assistance in relation to energy infrastructure.
5
(4) 2 or more directions under subsection (1) may be set out in the
6
same document.
7
(5) A direction under subsection (1) is not a legislative instrument.
8
(6) The Finance Minister must give a copy of a direction under
9
subsection (1) to the Treasurer and the Energy Minister.
10
100 Recommendations about grants payments--energy
11
infrastructure
12
(1) A grant must not be specified under subsection 99(2) unless the
13
Energy Minister has recommended the specification of the grant.
14
(2) The Energy Minister must not make a recommendation under
15
subsection (1) in relation to a grant unless Infrastructure Australia
16
has advised under section 118 that the grant satisfies the relevant
17
BAF evaluation criteria.
18
(3) In deciding whether to make a recommendation under
19
subsection (1) in relation to a grant, the Energy Minister must have
20
regard to:
21
(a) advice about the grant that was given to the Energy Minister
22
by Infrastructure Australia under section 118; and
23
(b) such other matters (if any) as the Energy Minister considers
24
relevant.
25
101 Transfers from the BAF Ene rgy Portfolio Special Account to the
26
COAG Reform Fund
27
Scope
28
(1) This section applies if:
29
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 7 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 102
78 Nation-building Funds Bill 2008 No. , 2008
(a) the Finance Minister gives a direction under subsection 99(1)
1
for a purpose in relation to a grant of financial assistance to a
2
State or Territory; and
3
(b) the amount specified in the direction is credited to the BAF
4
Energy Portfolio Special Account.
5
Transfer direction
6
(2) As soon as practicable after the amount is credited, the Energy
7
Minister must, by writing, direct that the amount is to be:
8
(a) debited from the BAF Energy Portfolio Special Account; and
9
(b) credited to the COAG Reform Fund;
10
on a specified day.
11
(3) The direction must be expressed to be given in order to enable the
12
amount to be debited from the COAG Reform Fund for the
13
purpose of making the grant.
14
(4) 2 or more directions under subsection (2) may be set out in the
15
same document.
16
(5) A direction under subsection (2) is not a legislative instrument.
17
(6) The Energy Minister must give a copy of a direction under
18
subsection (2) to the Treasurer.
19
102 Grants payments--debit from the COAG Reform Fund
20
Scope
21
(1) This section applies if:
22
(a) the Energy Minister gives a direction under subsection
23
101(2) for a purpose in relation to a grant of financial
24
assistance to a State or Territory; and
25
(b) the amount specified in the direction is credited to the COAG
26
Reform Fund.
27
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of State/Territory grants payments through the COA G Reform Fund
Division 7
Section 103
Nation-building Funds Bill 2008 No. , 2008 79
Debit from the COAG Reform Fund
1
(2) The Treasurer must ensure that, as soon as practicable after the
2
amount is credited, the COAG Reform Fund is debited for the
3
purposes of making the grant.
4
103 Grant to a State or Territory--energy infrastructure
5
Scope
6
(1) This section applies if:
7
(a) an amount is to be debited from the COAG Reform Fund for
8
the purpose of making a grant of financial assistance to a
9
State or Territory; and
10
(b) the grant is a grant of financial assistance in relation to
11
energy infrastructure; and
12
(c) the grant is covered by subsection 102(2).
13
Note:
Subsection 102(2) deals with grants channelled through the COAG
14
Reform Fund.
15
Terms and conditions
16
(2) The terms and conditions on which that financial assistance is
17
granted are to be set out in a written agreement between the
18
Commonwealth and the State or Territory.
19
(3) An agreement under subsection (2) may be entered into by the
20
Energy Minister on behalf of the Commonwealth.
21
Subdivision D--Channelling of water infrastructure grants
22
104 Channelling of State/Territory grants payme nts through the
23
COAG Reform Fund
24
(1) The Finance Minister may, by writing, direct that a specified
25
amount is to be:
26
(a) debited from the Building Australia Fund Special Account;
27
and
28
(b) credited to the BAF Water Portfolio Special Account;
29
on a specified day.
30
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 7 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 105
80 Nation-building Funds Bill 2008 No. , 2008
(2) The direction must be expressed to be given in order to enable the
1
specified amount to be:
2
(a) transferred from the BAF Water Portfolio Special Account to
3
the COAG Reform Fund; and
4
(b) debited from the COAG Reform Fund for the purpose of
5
making a specified grant of financial assistance to a State or
6
Territory.
7
(3) A grant specified under subsection (2) must be a grant of financial
8
assistance in relation to water infrastructure.
9
(4) 2 or more directions under subsection (1) may be set out in the
10
same document.
11
(5) A direction under subsection (1) is not a legislative instrument.
12
(6) The Finance Minister must give a copy of a direction under
13
subsection (1) to the Treasurer and the Water Minister.
14
105 Recommendations about grants payments--water
15
infrastructure
16
(1) A grant must not be specified under subsection 104(2) unless the
17
Water Minister has recommended the specification of the grant.
18
(2) The Water Minister must not make a recommendation under
19
subsection (1) in relation to a grant unless Infrastructure Australia
20
has advised under section 119 that the grant satisfies the relevant
21
BAF evaluation criteria.
22
(3) In deciding whether to make a recommendation under
23
subsection (1) in relation to a grant, the Water Minister must have
24
regard to:
25
(a) advice about the grant that was given to the Water Minister
26
by Infrastructure Australia under section 119; and
27
(b) such other matters (if any) as the Water Minister considers
28
relevant.
29
Building Australia Fund Chapter 2
Payments Part 2.4
Channelling of State/Territory grants payments through the COA G Reform Fund
Division 7
Section 106
Nation-building Funds Bill 2008 No. , 2008 81
106 Transfers from the BAF Water Portfolio Special Account to the
1
COAG Reform Fund
2
Scope
3
(1) This section applies if:
4
(a) the Finance Minister gives a direction under subsection
5
104(1) for a purpose in relation to a grant of financial
6
assistance to a State or Territory; and
7
(b) the amount specified in the direction is credited to the BAF
8
Water Portfolio Special Account.
9
Transfer direction
10
(2) As soon as practicable after the amount is credited, the Water
11
Minister must, by writing, direct that the amount is to be:
12
(a) debited from the BAF Water Portfolio Special Account; and
13
(b) credited to the COAG Reform Fund;
14
on a specified day.
15
(3) The direction must be expressed to be given in order to enable the
16
amount to be debited from the COAG Reform Fund for the
17
purpose of making the grant.
18
(4) 2 or more directions under subsection (2) may be set out in the
19
same document.
20
(5) A direction under subsection (2) is not a legislative instrument.
21
(6) The Water Minister must give a copy of a direction under
22
subsection (2) to the Treasurer.
23
107 Grants payments--debit from the COAG Reform Fund
24
Scope
25
(1) This section applies if:
26
(a) the Water Minister gives a direction under subsection 106(2)
27
for a purpose in relation to a grant of financial assistance to a
28
State or Territory; and
29
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 7 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 108
82 Nation-building Funds Bill 2008 No. , 2008
(b) the amount specified in the direction is credited to the COAG
1
Reform Fund.
2
Debit from the COAG Reform Fund
3
(2) The Treasurer must ensure that, as soon as practicable after the
4
amount is credited, the COAG Reform Fund is debited for the
5
purposes of making the grant.
6
108 Grant to a State or Territory--water infrastructure
7
Scope
8
(1) This section applies if:
9
(a) an amount is to be debited from the COAG Reform Fund for
10
the purpose of making a grant of financial assistance to a
11
State or Territory; and
12
(b) the grant is a grant of financial assistance in relation to water
13
infrastructure; and
14
(c) the grant is covered by subsection 107(2).
15
Note:
Subsection 107(2) deals with grants channelled through the COAG
16
Reform Fund.
17
Terms and conditions
18
(2) The terms and conditions on which that financial assistance is
19
granted are to be set out in a written agreement between the
20
Commonwealth and the State or Territory.
21
(3) An agreement under subsection (2) may be entered into by the
22
Water Minister on behalf of the Commonwealth.
23
24
Building Australia Fund Chapter 2
Payments Part 2.4
Total payments for a financial year Division 8
Section 109
Nation-building Funds Bill 2008 No. , 2008 83
1
Division 8--Total payments for a financial year
2
109 General drawing rights limit in relation to a financial year
3
Scope
4
(1) This section applies to a financial year if:
5
(a) in the case of the financial year ending on 30 June 2009--the
6
Finance Minister declares in writing that a specified amount
7
is the general drawing rights limit in relation to the financial
8
year for the purposes of this section; or
9
(b) in the case of a later financial year--an Appropriation Act
10
relating to the financial year declares that a specified amount
11
is the general drawing rights limit in relation to the financial
12
year for the purposes of this section.
13
Issue of drawing rights
14
(2) The total amount covered by drawing rights authorising the
15
following debits in the financial year:
16
(a) the debit of an amount from the Building Australia Fund
17
Special Account for the purpose mentioned in paragraph
18
18(1)(a);
19
(b) the debit of an amount from the BAF Infrastructure Portfolio
20
Special Account (other than a debit under section 91);
21
(c) the debit of an amount from the Building Australia Fund
22
Special Account for the purpose mentioned in paragraph
23
18(1)(b);
24
(d) the debit of an amount from the BAF Communications
25
Portfolio Special Account for the purpose of making a
26
payment in relation to the creation or development of
27
communications infrastructure, other than:
28
(i) a debit for the purpose of making a payment in relation
29
to an eligible national broadband network matter; or
30
(ii) a debit under section 96;
31
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 8 Total pay ments for a financial year
Section 110
84 Nation-building Funds Bill 2008 No. , 2008
(e) the debit of an amount from the Building Australia Fund
1
Special Account for the purpose mentioned in paragraph
2
18(1)(d);
3
(f) the debit of an amount from the BAF Energy Portfolio
4
Special Account (other than a debit under section 101);
5
(g) the debit of an amount from the Building Australia Fund
6
Special Account for the purpose mentioned in paragraph
7
18(1)(e);
8
(h) the debit of an amount from the BAF Water Portfolio Special
9
Account (other than a debit under section 106);
10
(i) the debit of an amount from the COAG Reform Fund in
11
accordance with subsection 92(2);
12
(j) the debit of an amount from the COAG Reform Fund in
13
accordance with subsection 97(2);
14
(k) the debit of an amount from the COAG Reform Fund in
15
accordance with subsection 102(2);
16
(l) the debit of an amount from the COAG Reform Fund in
17
accordance with subsection 107(2);
18
must not exceed the general drawing rights limit for the financial
19
year.
20
Declaration
21
(3) A declaration under paragraph (1)(a) is a legislative instrument, but
22
section 42 (disallowance) of the Legislative Instruments Act 2003
23
does not apply to the declaration.
24
110 Drawing rights in relation to other financial years
25
The application of section 109 to a particular financial year does
26
not limit the drawing rights that may be issued in relation to any
27
other financial year.
28
111 No drawing rights to be issued if there is no general drawing
29
rights limit in relation to a financial year
30
Scope
31
(1) This section applies to a financial year if:
32
Building Australia Fund Chapter 2
Payments Part 2.4
Total payments for a financial year Division 8
Section 111
Nation-building Funds Bill 2008 No. , 2008 85
(a) in the case of the financial year ending on 30 June 2009--no
1
declaration is in force under paragraph 109(1)(a); or
2
(b) in the case of a later financial year--no Appropriation Act
3
relating to the financial year declares that a specified amount
4
is the general drawing rights limit in relation to the financial
5
year for the purposes of section 109.
6
No drawing rights to be issued
7
(2) Drawing rights authorising any of the following debits in the
8
financial year must not be issued:
9
(a) the debit of an amount from the Building Australia Fund
10
Special Account for the purpose mentioned in paragraph
11
18(1)(a);
12
(b) the debit of an amount from the BAF Infrastructure Portfolio
13
Special Account (other than a debit under section 91);
14
(c) the debit of an amount from the Building Australia Fund
15
Special Account for the purpose mentioned in paragraph
16
18(1)(b);
17
(d) the debit of an amount from the BAF Communications
18
Portfolio Special Account for the purpose of making a
19
payment in relation to the creation or development of
20
communications infrastructure, other than:
21
(i) a debit for the purpose of making a payment in relation
22
to an eligible national broadband network matter; or
23
(ii) a debit under section 96;
24
(e) the debit of an amount from the Building Australia Fund
25
Special Account for the purpose mentioned in paragraph
26
18(1)(d);
27
(f) the debit of an amount from the BAF Energy Portfolio
28
Special Account (other than a debit under section 101);
29
(g) the debit of an amount from the Building Australia Fund
30
Special Account for the purpose mentioned in paragraph
31
18(1)(e);
32
(h) the debit of an amount from the BAF Water Portfolio Special
33
Account (other than a debit under section 106);
34
(i) the debit of an amount from the COAG Reform Fund in
35
accordance with subsection 92(2);
36
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 8 Total pay ments for a financial year
Section 112
86 Nation-building Funds Bill 2008 No. , 2008
(j) the debit of an amount from the COAG Reform Fund in
1
accordance with subsection 97(2);
2
(k) the debit of an amount from the COAG Reform Fund in
3
accordance with subsection 102(2);
4
(l) the debit of an amount from the COAG Reform Fund in
5
accordance with subsection 107(2).
6
112 Total payme nts to depend primarily on the macroeconomic
7
circumstances
8
Scope
9
(1) This section applies to the following decisions:
10
(a) a decision to authorise a payment under section 51, where the
11
authorisation will result in a debit from the Building
12
Australia Fund Special Account in a financial year;
13
(b) a decision to give a direction under subsection 63(1), where
14
the direction will result in a debit from the BAF
15
Infrastructure Portfolio Special Account in a financial year in
16
accordance with subsection 65(2);
17
(c) a decision to give a direction under subsection 70(1), where
18
the direction will result in a debit from the BAF
19
Communications Portfolio Special Account in a financial
20
year in accordance with subsection 72(2);
21
(d) a decision to give a direction under subsection 77(1), where
22
the direction will result in a debit from the BAF Energy
23
Portfolio Special Account in a financial year in accordance
24
with subsection 79(2);
25
(e) a decision to give a direction under subsection 84(1), where
26
the direction will result in a debit from the BAF Water
27
Portfolio Special Account in a financial year in accordance
28
with subsection 86(2);
29
(f) a decision to give a direction under subsection 89(1), where
30
the direction will result in a debit from the COAG Reform
31
Fund in a financial year in accordance with subsection 92(2);
32
(g) a decision to give a direction under subsection 94(1), where
33
the direction will result in a debit from the COAG Reform
34
Fund in a financial year in accordance with subsection 97(2);
35
Building Australia Fund Chapter 2
Payments Part 2.4
Total payments for a financial year Division 8
Section 112
Nation-building Funds Bill 2008 No. , 2008 87
(h) a decision to give a direction under subsection 99(1), where
1
the direction will result in a debit from the COAG Reform
2
Fund in a financial year in accordance with subsection
3
102(2);
4
(i) a decision to give a direction under subsection 104(1), where
5
the direction will result in a debit from the COAG Reform
6
Fund in a financial year in accordance with subsection
7
107(2).
8
Macroeconomic circumstances
9
(2) In making the decision, the Finance Minister must have regard to
10
the principle that the total of the following debits in the financial
11
year:
12
(a) the debit of an amount from the Building Australia Fund
13
Special Account for the purpose mentioned in paragraph
14
18(1)(a);
15
(b) the debit of an amount from the BAF Infrastructure Portfolio
16
Special Account (other than a debit under section 91);
17
(c) the debit of an amount from the Building Australia Fund
18
Special Account for the purpose mentioned in paragraph
19
18(1)(b);
20
(d) the debit of an amount from the BAF Communications
21
Portfolio Special Account for the purpose of making a
22
payment in relation to the creation or development of
23
communications infrastructure, other than:
24
(i) a debit for the purpose of making a payment in relation
25
to an eligible national broadband network matter; or
26
(ii) a debit under section 96;
27
(e) the debit of an amount from the Building Australia Fund
28
Special Account for the purpose mentioned in paragraph
29
18(1)(d);
30
(f) the debit of an amount from the BAF Energy Portfolio
31
Special Account (other than a debit under section 101);
32
(g) the debit of an amount from the Building Australia Fund
33
Special Account for the purpose mentioned in paragraph
34
18(1)(e);
35
Chapter 2 Building Australia Fund
Part 2.4 Pay ments
Division 8 Total pay ments for a financial year
Section 112
88 Nation-building Funds Bill 2008 No. , 2008
(h) the debit of an amount from the BAF Water Portfolio Special
1
Account (other than a debit under section 106);
2
(i) the debit of an amount from the COAG Reform Fund in
3
accordance with subsection 92(2);
4
(j) the debit of an amount from the COAG Reform Fund in
5
accordance with subsection 97(2);
6
(k) the debit of an amount from the COAG Reform Fund in
7
accordance with subsection 102(2);
8
(l) the debit of an amount from the COAG Reform Fund in
9
accordance with subsection 107(2);
10
should depend primarily on the macroeconomic circumstances.
11
12
Building Australia Fund Chapter 2
Reporting obligations etc. Part 2.5
Section 113
Nation-building Funds Bill 2008 No. , 2008 89
1
Part 2.5--Reporting obligations etc.
2
3
113 Finance Minister may require Future Fund Board to prepare
4
reports or give information
5
Reports
6
(1) The Finance Minister may, by written notice given to the Future
7
Fund Board, require the Future Fund Board to:
8
(a) prepare a report about one or more specified matters relating
9
to the performance of the Future Fund Board's functions
10
under this Chapter; and
11
(b) give copies of the report to the Finance Minister within the
12
period specified in the notice.
13
Information
14
(2) The Finance Minister may, by written notice given to the Future
15
Fund Board, require the Future Fund Board to:
16
(a) prepare a document setting out specified information relating
17
to the performance of the Future Fund Board's functions
18
under this Chapter; and
19
(b) give copies of the document to the Finance Minister within
20
the period specified in the notice.
21
Compliance
22
(3) The Future Fund Board must comply with a requirement under
23
subsection (1) or (2).
24
Publication of reports and documents
25
(4) The Finance Minister may cause to be published (whether on the
26
internet or otherwise):
27
(a) a report under subsection (1); or
28
(b) a document under subsection (2).
29
Chapter 2 Building Australia Fund
Part 2.5 Reporting obligations etc.
Section 114
90 Nation-building Funds Bill 2008 No. , 2008
Reports and documents
1
(5) A report under subsection (1) is not a legislative instrument.
2
(6) A document under subsection (2) is not a legislative instrument.
3
114 Keeping the responsible Ministers informe d etc.
4
(1) The Future Fund Board must keep the responsible Ministers
5
informed of the operations of the Future Fund Board under this
6
Chapter.
7
(2) The Future Fund Board must give the Finance Minister such
8
reports, documents and information in relation to those operations
9
as are appropriate.
10
115 Finance Minister may give reports to other Ministers etc.
11
The Finance Minister may give:
12
(a) the Treasurer; or
13
(b) the Infrastructure Minister; or
14
(c) the Communications Minister; or
15
(d) the Energy Minister; or
16
(e) the Water Minister;
17
any of the following:
18
(f) a report under subsection 113(1) or 114(2);
19
(g) a document under subsection 113(2) or 114(2);
20
(h) any other information or document obtained by the Finance
21
Minister under this Chapter.
22
23
Building Australia Fund Chapter 2
Miscellaneous Part 2.6
Section 116
Nation-building Funds Bill 2008 No. , 2008 91
1
Part 2.6--Miscellaneous
2
3
116 Infrastructure Australia to advise Infrastructure Minister about
4
transport infrastructure
5
(1) It is a function of Infrastructure Australia to advise the
6
Infrastructure Minister about matters that:
7
(a) are referred to it by the Infrastructure Minister; and
8
(b) relate to the making of payments in relation to the creation or
9
development of transport infrastructure.
10
(2) In giving advice under subsection (1), Infrastructure Australia must
11
apply the BAF evaluation criteria.
12
(3) The function conferred on Infrastructure Australia by
13
subsection (1) is in addition to the functions conferred on
14
Infrastructure Australia by the Infrastructure Australia Act 2008.
15
117 Infrastructure Australia to advise Communications Minister
16
about communications infrastructure
17
(1) It is a function of Infrastructure Australia to advise the
18
Communications Minister about matters that:
19
(a) are referred to it by the Communications Minister; and
20
(b) relate to the making of payments in relation to the creation or
21
development of communications infrastructure.
22
(2) In giving advice under subsection (1), Infrastructure Australia must
23
apply the BAF evaluation criteria.
24
(3) The function conferred on Infrastructure Australia by
25
subsection (1) is in addition to the functions conferred on
26
Infrastructure Australia by the Infrastructure Australia Act 2008.
27
(4) All communications by Infrastructure Australia to the
28
Communications Minister are to be made through the
29
Infrastructure Minister.
30
Chapter 2 Building Australia Fund
Part 2.6 Miscellaneous
Section 118
92 Nation-building Funds Bill 2008 No. , 2008
(5) All communications by the Communications Minister to
1
Infrastructure Australia are to be made through the Infrastructure
2
Minister.
3
118 Infrastructure Australia to advise Ene rgy Minister about ene rgy
4
infrastructure
5
(1) It is a function of Infrastructure Australia to advise the Energy
6
Minister about matters that:
7
(a) are referred to it by the Energy Minister; and
8
(b) relate to the making of payments in relation to the creation or
9
development of energy infrastructure.
10
(2) In giving advice under subsection (1), Infrastructure Australia must
11
apply the BAF evaluation criteria.
12
(3) The function conferred on Infrastructure Australia by
13
subsection (1) is in addition to the functions conferred on
14
Infrastructure Australia by the Infrastructure Australia Act 2008.
15
(4) All communications by Infrastructure Australia to the Energy
16
Minister are to be made through the Infrastructure Minister.
17
(5) All communications by the Energy Minister to Infrastructure
18
Australia are to be made through the Infrastructure Minister.
19
119 Infrastructure Australia to advise Water Minister about water
20
infrastructure
21
(1) It is a function of Infrastructure Australia to advise the Water
22
Minister about matters that:
23
(a) are referred to it by the Water Minister; and
24
(b) relate to the making of payments in relation to the creation or
25
development of water infrastructure.
26
(2) In giving advice under subsection (1), Infrastructure Australia must
27
apply the BAF evaluation criteria.
28
(3) The function conferred on Infrastructure Australia by
29
subsection (1) is in addition to the functions conferred on
30
Infrastructure Australia by the Infrastructure Australia Act 2008.
31
Building Australia Fund Chapter 2
Miscellaneous Part 2.6
Section 120
Nation-building Funds Bill 2008 No. , 2008 93
(4) All communications by Infrastructure Australia to the Water
1
Minister are to be made through the Infrastructure Minister.
2
(5) All communications by the Water Minister to Infrastructure
3
Australia are to be made through the Infrastructure Minister.
4
120 BAF evaluation criteria
5
(1) The Infrastructure Minister may, by legislative instrument,
6
formulate criteria (BAF evaluation criteria) to be applied by
7
Infrastructure Australia in giving advice under subsection 116(1),
8
117(1), 118(1) or 119(1).
9
(2) The BAF evaluation criteria may provide that the criteria covered
10
by any of the following paragraphs may be different to the criteria
11
covered by any other of the following paragraphs:
12
(a) the criteria to be applied by Infrastructure Australia in giving
13
advice under subsection 116(1);
14
(b) the criteria to be applied by Infrastructure Australia in giving
15
advice under subsection 117(1);
16
(c) the criteria to be applied by Infrastructure Australia in giving
17
advice under subsection 118(1);
18
(d) the criteria to be applied by Infrastructure Australia in giving
19
advice under subsection 119(1).
20
(3) Before formulating BAF evaluation criteria, the Infrastructure
21
Minister must consult:
22
(a) the Communications Minister; and
23
(b) the Energy Minister; and
24
(c) the Water Minister; and
25
(d) the responsible Ministers.
26
(4) The Infrastructure Minister must ensure that BAF evaluation
27
criteria are in force at all times after the commencement of this
28
section.
29
Chapter 2 Building Australia Fund
Part 2.6 Miscellaneous
Section 121
94 Nation-building Funds Bill 2008 No. , 2008
121 Investment provisions do not apply to certain assets
1
Scope
2
(1) This section applies to an asset if:
3
(a) the asset is:
4
(i) a share; or
5
(ii) a debenture; or
6
(iii) a unit in a unit trust; or
7
(iv) any other financial asset; and
8
(b) the asset is held by the Commonwealth; and
9
(c) the asset was acquired:
10
(i) using money debited from the Building Australia Fund
11
Special Account for a purpose mentioned in paragraph
12
18(1)(a), (b), (c), (d) or (e); or
13
(ii) using money debited from the BAF Infrastructure
14
Portfolio Special Account; or
15
(iii) using money debited from the BAF Communications
16
Portfolio Special Account; or
17
(iv) using money debited from the BAF Energy Portfolio
18
Special Account; or
19
(v) using money debited from the BAF Water Portfolio
20
Special Account.
21
Investment provisions do not apply
22
(2) Part 2.3 does not apply in relation to the asset.
23
(3) Section 39 of the Financial Management and Accountability Act
24
1997 does not apply in relation to the asset.
25
122 Delegation by the Finance Minister
26
Department
27
(1) The Finance Minister may, by writing, delegate any or all of his or
28
her powers under section 27, 28, 29, 51, 63, 70, 77, 84, 89, 94, 99
29
or 104 to:
30
(a) the Secretary of the Finance Department; or
31
Building Australia Fund Chapter 2
Miscellaneous Part 2.6
Section 123
Nation-building Funds Bill 2008 No. , 2008 95
(b) an SES employee, or acting SES employee, in the Finance
1
Department.
2
Note:
The expressions SES employee and acting SES employee are defined
3
in section 17AA of the Acts Interpretation Act 1901.
4
(2) In exercising powers under a delegation, the delegate must comply
5
with any directions of the Finance Minister.
6
Agency
7
(3) The Finance Minister may, by writing, delegate any or all of his or
8
her powers under section 27, 28 or 29 to:
9
(a) the Chair; or
10
(b) an SES employee, or acting SES employee, in the Agency.
11
Note:
The expressions SES employee and acting SES employee are defined
12
in section 17AA of the Acts Interpretation Act 1901.
13
(4) In exercising powers under a delegation, the delegate must comply
14
with any directions of the Finance Minister.
15
123 Delegation by the Treasure r
16
The Treasurer may, by writing, delegate any or all of his or her
17
functions under subsection 92(2), 97(2), 102(2) or 107(2) to:
18
(a) the Secretary of the Treasury Department; or
19
(b) an SES employee, or acting SES employee, in the Treasury
20
Department.
21
Note:
The expressions SES employee and acting SES employee are defined
22
in section 17AA of the Acts Interpretation Act 1901.
23
124 Delegation by the Infrastructure Minister
24
(1) The Infrastructure Minister may, by writing, delegate any or all of
25
his or her functions or powers under section 53, 57, 65, 66, 67, 91
26
or 93 to:
27
(a) the Secretary of the Infrastructure Department; or
28
(b) an SES employee, or acting SES employee, in the
29
Infrastructure Department.
30
Note:
The expressions SES employee and acting SES employee are defined
31
in section 17AA of the Acts Interpretation Act 1901.
32
Chapter 2 Building Australia Fund
Part 2.6 Miscellaneous
Section 125
96 Nation-building Funds Bill 2008 No. , 2008
(2) In exercising powers under a delegation, the delegate must comply
1
with any directions of the Infrastructure Minister.
2
125 Delegation by the Communications Minister
3
(1) The Communications Minister may, by writing, delegate any or all
4
of his or her functions or powers under section 54, 58, 72, 73, 74,
5
96 or 98 to:
6
(a) the Secretary of the Communications Department; or
7
(b) an SES employee, or acting SES employee, in the
8
Communications Department.
9
Note:
The expressions SES employee and acting SES employee are defined
10
in section 17AA of the Acts Interpretation Act 1901.
11
(2) In exercising powers under a delegation, the delegate must comply
12
with any directions of the Communications Minister.
13
126 Delegation by the Energy Minister
14
(1) The Energy Minister may, by writing, delegate any or all of his or
15
her functions or powers under section 55, 59, 79, 80, 81, 101 or
16
103 to:
17
(a) the Secretary of the Energy Department; or
18
(b) an SES employee, or acting SES employee, in the Energy
19
Department.
20
Note:
The expressions SES employee and acting SES employee are defined
21
in section 17AA of the Acts Interpretation Act 1901.
22
(2) In exercising powers under a delegation, the delegate must comply
23
with any directions of the Energy Minister.
24
127 Delegation by the Water Minister
25
(1) The Water Minister may, by writing, delegate any or all of his or
26
her functions or powers under section 56, 60, 86, 87, 88, 106 or
27
108 to:
28
(a) the Secretary of the Water Department; or
29
(b) an SES employee, or acting SES employee, in the Water
30
Department.
31
Building Australia Fund Chapter 2
Miscellaneous Part 2.6
Section 127
Nation-building Funds Bill 2008 No. , 2008 97
Note:
The expressions SES employee and acting SES employee are defined
1
in section 17AA of the Acts Interpretation Act 1901.
2
(2) In exercising powers under a delegation, the delegate must comply
3
with any directions of the Water Minister.
4
5
Chapter 3 Education Investment Fund
Part 3.1 Introduction
Section 128
98 Nation-building Funds Bill 2008 No. , 2008
1
Chapter 3--Education Investment Fund
2
Part 3.1--Introduction
3
4
128 Object
5
The object of this Chapter is to enhance the Commonwealth's
6
ability:
7
(a) to make payments in relation to the creation or development
8
of higher education infrastructure; and
9
(b) to make payments in relation to the creation or development
10
of research infrastructure; and
11
(c) to make payments in relation to the creation or development
12
of vocational education and training infrastructure; and
13
(d) to make payments in relation to the creation or development
14
of eligible education infrastructure; and
15
(e) to make transitional HEEF payments.
16
129 Simplified outline
17
The following is a simplified outline of this Chapter:
18
·
This Chapter sets up the Education Investment Fund, which
19
consists of:
20
(a) the Education Investment Fund Special Account;
21
and
22
(b) the investments of the Education Investment Fund.
23
·
The main purposes of the Education Investment Fund Special
24
Account are:
25
(a) to make payments in relation to the creation or
26
development of higher education infrastructure;
27
and
28
Education Investment Fund Chapter 3
Introduction Part 3.1
Section 129
Nation-building Funds Bill 2008 No. , 2008 99
(b) to make payments in relation to the creation or
1
development of research infrastructure; and
2
(c) to make payments in relation to the creation or
3
development of vocational education and training
4
infrastructure; and
5
(d) to make payments in relation to the creation or
6
development of eligible education infrastructure;
7
and
8
(e) to make transitional HEEF payments.
9
·
The Finance Minister is responsible for authorising payments
10
on the recommendation of the Education Minister, the
11
Research Minister or the EIF designated Ministers.
12
·
If a payment is made by way of a grant of financial assistance,
13
the terms and conditions on which the financial assistance is
14
granted are to be set out in a written agreement between the
15
Commonwealth and the recipient.
16
·
The Future Fund Board is responsible for deciding how to
17
invest the Education Investment Fund.
18
·
Investments of the Education Investment Fund will consist of
19
financial assets.
20
·
The Future Fund Board is bound by an Education Investment
21
Fund Investment Mandate given to it by the responsible
22
Ministers.
23
Note:
The Future Fund Act 2006 provides that the Future Fund Management
24
Agency is responsible for assisting and advising the Future Fund
25
Board.
26
27
Chapter 3 Education Investment Fund
Part 3.2 Education Investment Fund
Division 1 Introduction
Section 130
100 Nation-building Funds Bill 2008 No. , 2008
1
Part 3.2--Education Investment Fund
2
Division 1--Introduction
3
130 Simplified outline
4
The following is a simplified outline of this Part:
5
·
This Part sets up the Education Investment Fund.
6
·
The Education Investment Fund consists of:
7
(a) the Education Investment Fund Special Account;
8
and
9
(b) the investments of the Education Investment Fund.
10
·
The balance of the Higher Education Endowment Fund is to
11
be transferred to the Education Investment Fund.
12
·
One or more initial amounts are to be credited to the
13
Education Investment Fund Special Account by 30 June 2009.
14
The total of the initial amounts must equal $2.5 billion.
15
·
The responsible Ministers may determine that additional
16
amounts are to be credited to the Education Investment Fund
17
Special Account.
18
·
Amounts may be debited from the Education Investment Fund
19
Special Account in accordance with the purposes of the
20
Education Investment Fund Special Account.
21
·
The main purposes of the Education Investment Fund Special
22
Account are:
23
(a) to make payments in relation to the creation or
24
development of higher education infrastructure;
25
and
26
Education Investment Fund Chapter 3
Education Investment Fund Part 3.2
Introduction Division 1
Section 130
Nation-building Funds Bill 2008 No. , 2008 101
(b) to make payments in relation to the creation or
1
development of research infrastructure; and
2
(c) to make payments in relation to the creation or
3
development of vocational education and training
4
infrastructure; and
5
(d) to make payments in relation to the creation or
6
development of eligible education infrastructure;
7
and
8
(e) to make transitional HEEF payments.
9
Note:
The Higher Education Endowment Fund was established by section 11
10
of the repealed Higher Education Endowment Fund Act 2007.
11
12
Chapter 3 Education Investment Fund
Part 3.2 Education Investment Fund
Division 2 Establish ment of the Education Investment Fund etc.
Section 131
102 Nation-building Funds Bill 2008 No. , 2008
1
Division 2--Establishment of the Education Investment
2
Fund etc.
3
131 Establishme nt of the Education Investment Fund
4
(1) The Education Investment Fund is established by this section.
5
(2) The Education Investment Fund consists of:
6
(a) the Education Investment Fund Special Account; and
7
(b) the investments of the Education Investment Fund.
8
132 Establishme nt of the Education Investment Fund Special
9
Account
10
(1) The Education Investment Fund Special Account is established by
11
this section.
12
(2) The Education Investment Fund Special Account is a Special
13
Account for the purposes of the Financial Management and
14
Accountability Act 1997.
15
Note:
An Appropriation Act may contain a provision to the effect that, if any
16
of the purposes of a Special Account is a purpose that is covered by an
17
item in the Appropriation Act (whether or not the item expressly refers
18
to the Special Account), then amounts may be debited against the
19
appropriation for that item and credited to that Special Account.
20
21
Education Investment Fund Chapter 3
Education Investment Fund Part 3.2
Cred its of amounts to the Education Investment Fund Division 3
Section 133
Nation-building Funds Bill 2008 No. , 2008 103
1
Division 3--Credits of amounts to the Education
2
Investment Fund
3
133 Initial credits of amounts to the Education Investment Fund
4
Special Account
5
(1) The responsible Ministers may, by writing, determine that:
6
(a) a specified amount is to be credited to the Education
7
Investment Fund Special Account on a specified day; or
8
(b) a specified amount is to be credited to the Education
9
Investment Fund Special Account in specified instalments on
10
specified days.
11
(2) The responsible Ministers must ensure that, by the end of 30 June
12
2009, the total of the amounts credited to the Education Investment
13
Fund Special Account under subsection (1) equals $2.5 billion.
14
Note 1:
See also section 135 (balance of the Higher Education Endowment
15
Fund to be credited to the Education Investment Fund Special
16
Account).
17
Note 2:
See also section 152 (Education Investment Fund to inherit
18
investments of the Higher Education Endowment Fund).
19
(3) The responsible Ministers must not make a determination under
20
subsection (1) after 30 June 2009.
21
(4) A determination under subsection (1) is irrevocable.
22
(5) A determination under subsection (1) is a legislative instrument,
23
but section 42 (disallowance) of the Legislative Instruments Act
24
2003 does not apply to the determination.
25
134 Subsequent credits of amounts to the Education Investment
26
Fund Special Account--determinations by the responsible
27
Ministers
28
(1) The responsible Ministers may, by writing, determine that:
29
(a) a specified amount is to be credited to the Education
30
Investment Fund Special Account on a specified day; or
31
Chapter 3 Education Investment Fund
Part 3.2 Education Investment Fund
Division 3 Credits of amounts to the Education Investment Fund
Section 135
104 Nation-building Funds Bill 2008 No. , 2008
(b) a specified amount is to be credited to the Education
1
Investment Fund Special Account in specified instalments on
2
specified days.
3
Note:
For variation and revocation, see subsection 33(3) of the Acts
4
Interpretation Act 1901.
5
(2) In making a determination under subsection (1), the responsible
6
Ministers must have regard to the object of this Chapter.
7
(3) A determination under subsection (1) is a legislative instrument,
8
but section 42 (disallowance) of the Legislative Instruments Act
9
2003 does not apply to the determination.
10
135 Credit of amount to the Education Investment Fund Special
11
Account--balance of the Higher Education Endowme nt
12
Fund Special Account
13
Immediately after the commencement of this section, there is to be
14
credited to the Education Investment Fund Special Account an
15
amount equal to the balance of the Higher Education Endowment
16
Fund Special Account as at immediately before the commencement
17
of this section.
18
Note:
The Higher Education Endowment Fund Special Account was
19
established by section 11 of the repealed Higher Education
20
Endowment Fund Act 2007.
21
22
Education Investment Fund Chapter 3
Education Investment Fund Part 3.2
Debits of amounts from the Education Investment Fund Division 4
Section 136
Nation-building Funds Bill 2008 No. , 2008 105
1
Division 4--Debits of amounts from the Education
2
Investment Fund
3
136 Purposes of the Education Investment Fund Special Account--
4
payments purposes and purposes related exclusively to
5
the Education Investment Fund
6
(1) Each of the following is a purpose of the Education Investment
7
Fund Special Account:
8
(a) making payments in relation to the creation or development
9
of higher education infrastructure, so long as the payments
10
are authorised under subsection 176(1);
11
(b) making payments in relation to the creation or development
12
of research infrastructure, so long as the payments are
13
authorised under subsection 176(2);
14
(c) making payments in relation to the creation or development
15
of vocational education and training infrastructure, so long as
16
the payments are authorised under subsection 176(3);
17
(d) making payments in relation to the creation or development
18
of eligible education infrastructure, so long as the payments
19
are authorised under subsection 176(4);
20
(e) making transitional HEEF payments, so long as the payments
21
are authorised under subsection 176(5);
22
(f) paying the costs of, or incidental to, the acquisition of
23
financial assets under section 151;
24
(g) paying expenses of an investment of the Education
25
Investment Fund;
26
(h) paying the costs of, or incidental to, the acquisition of
27
derivatives under section 161;
28
(i) paying or discharging the costs, expenses and other
29
obligations incurred by the Future Fund Board under a
30
contract between the Future Fund Board and an investment
31
manager engaged under subsection 164(1);
32
(j) paying or discharging the costs, expenses and other
33
obligations incurred in connection with the establishment,
34
maintenance or operation of a bank account of the Future
35
Chapter 3 Education Investment Fund
Part 3.2 Education Investment Fund
Division 4 Debits of amounts from the Education Investment Fund
Section 137
106 Nation-building Funds Bill 2008 No. , 2008
Fund Board, where the bank account relates exclusively to
1
the Education Investment Fund;
2
(k) paying a premium in respect of a contract of insurance
3
entered into by the Future Fund Board exclusively in
4
connection with the Education Investment Fund;
5
(l) paying or discharging any other costs, expenses, obligations
6
or liabilities incurred by the Future Fund Board exclusively
7
in connection with the Education Investment Fund.
8
Note:
See section 21 of the Financial Management and Accountability Act
9
1997 (debits from Special Accounts).
10
(2) Paragraphs (1)(a), (b), (c), (d) and (e) do not limit each other.
11
(3) A payment under paragraph (1)(a), (b), (c) or (d) may be made:
12
(a) by way of a grant of financial assistance; or
13
(b) otherwise than by way of a grant of financial assistance.
14
Note 1:
Section 183 deals with the channelling of payments through the EIF
15
Education Portfolio Special Account.
16
Note 2:
Section 190 deals with the channelling of payments through the EIF
17
Research Portfolio Special Account.
18
Note 3:
Section 194 deals with the channelling of State/Territory grants
19
payments through the COAG Reform Fund.
20
137 Purposes of the Education Investment Fund Special Account--
21
transitional
22
Each of the following is a purpose of the Education Investment
23
Fund Special Account:
24
(a) paying the costs of, or incidental to, the acquisition of
25
financial assets under Part 3 of the repealed Higher
26
Education Endowment Fund Act 2007, where the costs were
27
incurred before the commencement of this section;
28
(b) paying expenses of an investment of the Education
29
Investment Fund, where:
30
(i) immediately before the commencement of this section,
31
the investment was an investment of the Higher
32
Education Endowment Fund; and
33
(ii) the expense was incurred before the commencement of
34
this section;
35
Education Investment Fund Chapter 3
Education Investment Fund Part 3.2
Debits of amounts from the Education Investment Fund Division 4
Section 137
Nation-building Funds Bill 2008 No. , 2008 107
(c) paying the costs of, or incidental to, the acquisition of
1
derivatives under section 31 of the repealed Higher
2
Education Endowment Fund Act 2007, where the costs were
3
incurred before the commencement of this section;
4
(d) paying or discharging the costs, expenses and other
5
obligations incurred by the Future Fund Board under a
6
contract between the Future Fund Board and an investment
7
manager engaged under subsection 34(1) of the repealed
8
Higher Education Endowment Fund Act 2007, where the
9
costs, expenses or obligations were incurred before the
10
commencement of this section;
11
(e) paying or discharging the costs, expenses and other
12
obligations incurred in connection with the establishment,
13
maintenance or operation of a bank account of the Future
14
Fund Board, where:
15
(i) the bank account relates exclusively to the Higher
16
Education Endowment Fund; and
17
(ii) the costs, expenses or obligations were incurred before
18
the commencement of this section;
19
(f) paying a premium in respect of a contract of insurance
20
entered into by the Future Fund Board exclusively in
21
connection with the Higher Education Endowment Fund,
22
where the liability to pay the premium was incurred before
23
the commencement of this section;
24
(g) paying or discharging any other costs, expenses, obligations
25
or liabilities incurred by the Commonwealth exclusively in
26
connection with the Higher Education Endowment Fund,
27
where the costs, expenses, obligations or liabilities were
28
incurred before the commencement of this section.
29
Note 1:
See section 21 of the Financial Management and Accountability Act
30
1997 (debits from Special Accounts).
31
Note 2:
The Higher Education Endowment Fund was established by the
32
repealed Higher Education Endowment Fund 2007.
33
Chapter 3 Education Investment Fund
Part 3.2 Education Investment Fund
Division 4 Debits of amounts from the Education Investment Fund
Section 138
108 Nation-building Funds Bill 2008 No. , 2008
138 Purposes of the Education Investment Fund Special Account--
1
purposes not related exclusively to the Education
2
Investment Fund
3
Each of the following is a purpose of the Education Investment
4
Fund Special Account:
5
(a) paying or discharging the costs, expenses and other
6
obligations incurred in connection with the establishment,
7
maintenance or operation of a bank account of the Future
8
Fund Board, where those costs, expenses or obligations are
9
not covered by:
10
(i) paragraph 18(1)(j); or
11
(ii) paragraph 136(1)(j); or
12
(iii) paragraph 137(e); or
13
(iv) paragraph 218(1)(f); or
14
(v) paragraph 2(1)(g) of Schedule 2 to the Future Fund Act
15
2006;
16
(b) paying a premium in respect of a contract of insurance
17
entered into by the Future Fund Board, where the premium is
18
not covered by:
19
(i) paragraph 18(1)(k); or
20
(ii) paragraph 136(1)(k); or
21
(iii) paragraph 137(f); or
22
(iv) paragraph 218(1)(g); or
23
(v) paragraph 2(1)(h) of Schedule 2 to the Future Fund Act
24
2006;
25
(c) paying or discharging any other costs, expenses, obligations
26
or liabilities incurred by the Future Fund Board, where the
27
costs, expenses, obligations or liabilities are not covered by:
28
(i) a paragraph of subsection 18(1); or
29
(ii) a paragraph of subsection 136(1); or
30
(iii) a paragraph of section 137; or
31
(iv) a paragraph of subsection 218(1); or
32
(v) a paragraph of subclause 2(1) of Schedule 2 to the
33
Future Fund Act 2006;
34
(d) paying remuneration and allowances of Future Fund Board
35
members;
36
Education Investment Fund Chapter 3
Education Investment Fund Part 3.2
Debits of amounts from the Education Investment Fund Division 4
Section 139
Nation-building Funds Bill 2008 No. , 2008 109
(e) paying remuneration, and other employment-related costs
1
and expenses, in respect of members of the staff of the
2
Agency;
3
(f) paying or discharging the costs, expenses and other
4
obligations incurred by the Commonwealth under a contract
5
entered into under section 78 or 82 of the Future Fund Act
6
2006;
7
(g) paying or discharging the costs, expenses and other
8
obligations incurred by the Commonwealth in connection
9
with the operation of the Agency.
10
Note:
See section 21 of the Financial Management and Accountability Act
11
1997 (debits from Special Accounts).
12
139 Payments in relation to the creation or development of higher
13
education infrastructure
14
For the purposes of this Act, a payment in relation to the creation
15
or development of higher education infrastructure is:
16
(a) a payment to a higher education institution in relation to the
17
creation or development of education infrastructure; or
18
(b) any of the following payments:
19
(i) a payment in relation to the acquisition of shares in a
20
company that is, or will be, involved in the creation or
21
development of education infrastructure;
22
(ii) a payment in relation to the acquisition of debentures of
23
a company that is, or will be, involved in the creation or
24
development of education infrastructure;
25
(iii) a payment in relation to the acquisition of units in a unit
26
trust that is, or will be, involved in the creation or
27
development of education infrastructure;
28
(iv) a payment in relation to the acquisition of any other
29
financial asset in a business entity that is, or will be,
30
involved in the creation or development of education
31
infrastructure;
32
(v) a payment in relation to a matter incidental or ancillary
33
to a matter set out in subparagraph (i), (ii), (iii) or (iv);
34
where the education infrastructure relates to the higher
35
education sector.
36
Chapter 3 Education Investment Fund
Part 3.2 Education Investment Fund
Division 4 Debits of amounts from the Education Investment Fund
Section 140
110 Nation-building Funds Bill 2008 No. , 2008
Note:
See section 206.
1
140 Payments in relation to the creation or development of research
2
infrastructure
3
For the purposes of this Act, a payment in relation to the creation
4
or development of research infrastructure is:
5
(a) a payment to a research institution in relation to the creation
6
or development of research infrastructure; or
7
(b) any of the following payments:
8
(i) a payment in relation to the acquisition of shares in a
9
company that is, or will be, involved in the creation or
10
development of research infrastructure;
11
(ii) a payment in relation to the acquisition of debentures of
12
a company that is, or will be, involved in the creation or
13
development of research infrastructure;
14
(iii) a payment in relation to the acquisition of units in a unit
15
trust that is, or will be, involved in the creation or
16
development of research infrastructure;
17
(iv) a payment in relation to the acquisition of any other
18
financial asset in a business entity that is, or will be,
19
involved in the creation or development of research
20
infrastructure;
21
(v) a payment in relation to a matter incidental or ancillary
22
to a matter set out in subparagraph (i), (ii), (iii) or (iv).
23
Note:
See section 206.
24
141 Payments in relation to the creation or development of
25
vocational education and training infrastructure
26
For the purposes of this Act, a payment in relation to the creation
27
or development of vocational education and training
28
infrastructure is:
29
(a) a payment to a vocational education and training provider in
30
relation to the creation or development of education
31
infrastructure; or
32
(b) any of the following payments:
33
Education Investment Fund Chapter 3
Education Investment Fund Part 3.2
Debits of amounts from the Education Investment Fund Division 4
Section 142
Nation-building Funds Bill 2008 No. , 2008 111
(i) a payment in relation to the acquisition of shares in a
1
company that is, or will be, involved in the creation or
2
development of education infrastructure;
3
(ii) a payment in relation to the acquisition of debentures of
4
a company that is, or will be, involved in the creation or
5
development of education infrastructure;
6
(iii) a payment in relation to the acquisition of units in a unit
7
trust that is, or will be, involved in the creation or
8
development of education infrastructure;
9
(iv) a payment in relation to the acquisition of any other
10
financial asset in a business entity that is, or will be,
11
involved in the creation or development of education
12
infrastructure;
13
(v) a payment in relation to a matter incidental or ancillary
14
to a matter set out in subparagraph (i), (ii), (iii) or (iv);
15
where the education infrastructure relates to the vocational
16
education and training sector.
17
Note:
See section 206.
18
142 Payments in relation to the creation or development of eligible
19
education infrastructure
20
For the purposes of this Act, a payment in relation to the creation
21
or development of eligible education infrastructure is:
22
(a) a payment in relation to one or more designated education
23
infrastructure-related matters; or
24
(b) any of the following payments:
25
(i) a payment in relation to the acquisition of shares in a
26
company that is, or will be, involved in the creation or
27
development of education infrastructure;
28
(ii) a payment in relation to the acquisition of debentures of
29
a company that is, or will be, involved in the creation or
30
development of education infrastructure;
31
(iii) a payment in relation to the acquisition of units in a unit
32
trust that is, or will be, involved in the creation or
33
development of education infrastructure;
34
(iv) a payment in relation to the acquisition of any other
35
financial asset in a business entity that is, or will be,
36
Chapter 3 Education Investment Fund
Part 3.2 Education Investment Fund
Division 4 Debits of amounts from the Education Investment Fund
Section 143
112 Nation-building Funds Bill 2008 No. , 2008
involved in the creation or development of education
1
infrastructure;
2
(v) a payment in relation to a matter incidental or ancillary
3
to a matter set out in subparagraph (i), (ii), (iii) or (iv);
4
where the education infrastructure relates to education
5
specified in a legislative instrument made by the EIF
6
designated Ministers for the purposes of this paragraph.
7
Note:
See section 206.
8
143 Designated education infrastructure-related matters
9
(1) The EIF designated Ministers may, by legislative instrument,
10
determine that, for the purposes of this Act, a specified matter is a
11
designated education infrastructure-related matter.
12
Note:
For variation and revocation, see subsection 33(3) of the Acts
13
Interpretation Act 1901.
14
(2) The EIF designated Ministers must not specify a matter under
15
subsection (1) unless the matter relates to the creation or
16
development of education infrastructure.
17
144 Transitional HEEF payments
18
(1) For the purposes of this Act, a transitional HEEF payment is:
19
(a) a grant of financial assistance to an eligible higher education
20
institution in relation to capital expenditure; or
21
(b) a grant of financial assistance to an eligible higher education
22
institution in relation to research facilities.
23
Note:
A transitional HEEF payment requires a pre-1 July 2009
24
recommendation of the EIF designated Ministers--see subsections
25
177(7), 184(4) and 191(4).
26
(2) An expression used in paragraph (1)(a) or (b) has the same
27
meaning as it had in the Higher Education Endowment Fund Act
28
2007 as in force immediately before the commencement of this
29
section.
30
Education Investment Fund Chapter 3
Education Investment Fund Part 3.2
Debits of amounts from the Education Investment Fund Division 4
Section 145
Nation-building Funds Bill 2008 No. , 2008 113
145 Future Fund Board must ensure that there is sufficient money
1
in the Education Investment Fund Special Account to
2
cover authorised payme nts etc.
3
The Future Fund Board must take all reasonable steps to ensure
4
that the amount of money standing to the credit of the Education
5
Investment Fund Special Account is sufficient to cover:
6
(a) the debit of amounts for payments authorised, or proposed to
7
be authorised, under subsection 176(1), (2), (3), (4) or (5);
8
and
9
(b) amounts debited, or proposed to be debited, under subsection
10
183(1); and
11
(c) amounts debited, or proposed to be debited, under subsection
12
190(1); and
13
(d) amounts debited, or proposed to be debited, under subsection
14
194(1).
15
Note:
This may require the Future Fund Board to realise an investment of
16
the Education Investment Fund in accordance with section 153.
17
18
Chapter 3 Education Investment Fund
Part 3.2 Education Investment Fund
Division 5 Inter-fund transfers
Section 146
114 Nation-building Funds Bill 2008 No. , 2008
1
Division 5--Inter-fund transfers
2
146 Transfers from the Education Investment Fund to the Future
3
Fund
4
(1) If an amount is debited from the Future Fund Special Account for a
5
purpose mentioned in subclause 2(2) of Schedule 2 to the Future
6
Fund Act 2006, the Finance Minister may, by writing, direct that a
7
specified amount is to be:
8
(a) debited from the Education Investment Fund Special
9
Account; and
10
(b) credited to the Future Fund Special Account;
11
on a specified day.
12
(2) The specified amount must not exceed the amount debited from the
13
Future Fund Special Account as mentioned in subsection (1).
14
(3) A direction under subsection (1) is not a legislative instrument.
15
147 Transfers from the Education Investment Fund to the Building
16
Australia Fund
17
(1) If an amount is debited from the Building Australia Fund Special
18
Account for a purpose mentioned in section 20, the Finance
19
Minister may, by writing, direct that a specified amount is to be:
20
(a) debited from the Education Investment Fund Special
21
Account; and
22
(b) credited to the Building Australia Fund Special Account;
23
on a specified day.
24
(2) The specified amount must not exceed the amount debited from the
25
Building Australia Fund Special Account as mentioned in
26
subsection (1).
27
(3) A direction under subsection (1) is not a legislative instrument.
28
Education Investment Fund Chapter 3
Education Investment Fund Part 3.2
Inter-fund transfers Division 5
Section 148
Nation-building Funds Bill 2008 No. , 2008 115
148 Transfers from the Education Investment Fund to the Health
1
and Hospitals Fund
2
(1) If an amount is debited from the Health and Hospitals Fund Special
3
Account for a purpose mentioned in section 219, the Finance
4
Minister may, by writing, direct that a specified amount is to be:
5
(a) debited from the Education Investment Fund Special
6
Account; and
7
(b) credited to the Health and Hospitals Fund Special Account;
8
on a specified day.
9
(2) The specified amount must not exceed the amount debited from the
10
Health and Hospitals Fund Special Account as mentioned in
11
subsection (1).
12
(3) A direction under subsection (1) is not a legislative instrument.
13
14
Chapter 3 Education Investment Fund
Part 3.3 Investment of the Education Investment Fund
Section 149
116 Nation-building Funds Bill 2008 No. , 2008
1
Part 3.3--Investment of the Education Investment
2
Fund
3
4
149 Simplified outline
5
The following is a simplified outline of this Part:
6
·
The Future Fund Board is responsible for deciding how to
7
invest the Education Investment Fund.
8
·
Investments of the Education Investment Fund will consist of
9
financial assets.
10
·
Investments of the Education Investment Fund will be held in
11
the name of the Future Fund Board.
12
·
The Future Fund Board is bound by an Education Investment
13
Fund Investment Mandate given to it by the responsible
14
Ministers.
15
150 Objects of investment of the Education Investment Fund
16
(1) The main object of the acquisition by the Future Fund Board of a
17
financial asset as an investment of the Education Investment Fund
18
is to enhance the Commonwealth's ability:
19
(a) to make payments in relation to the creation or development
20
of higher education infrastructure; and
21
(b) to make payments in relation to the creation or development
22
of research infrastructure; and
23
(c) to make payments in relation to the creation or development
24
of vocational education and training infrastructure; and
25
(d) to make payments in relation to the creation or development
26
of eligible education infrastructure; and
27
(e) to make transitional HEEF payments.
28
Education Investment Fund Chapter 3
Investment of the Education Investment Fund Part 3.3
Section 151
Nation-building Funds Bill 2008 No. , 2008 117
(2) The ancillary objects of the acquisition by the Future Fund Board
1
of a financial asset as an investment of the Education Investment
2
Fund are to enhance the ability of the Commonwealth and the
3
Future Fund Board to:
4
(a) discharge costs, expenses, obligations and liabilities; and
5
(b) make payments;
6
as mentioned in paragraphs 136(1)(f) to (l), 137(a) to (g) and
7
138(a) to (g).
8
151 Investment of the Education Investment Fund
9
(1) The Future Fund Board may invest amounts standing to the credit
10
of the Education Investment Fund Special Account in any financial
11
assets.
12
(2) Investments under subsection (1) are to be made in the name of the
13
Future Fund Board.
14
(3) Investments under subsection (1) are taken to be investments of the
15
Education Investment Fund.
16
(4) This section does not authorise the acquisition of a derivative.
17
Note:
For acquisition of derivatives, see section 161.
18
152 Education Investment Fund to inherit investments of the Higher
19
Education Endowme nt Fund
20
Scope
21
(1) This section applies to a financial asset if:
22
(a) immediately before the commencement of this section, the
23
financial asset was an investment of the Higher Education
24
Endowment Fund; and
25
(b) the financial asset is held by the Future Fund Board; and
26
(c) the financial asset has been continuously held by the Future
27
Fund Board since the commencement of this section.
28
Note:
The Higher Education Endowment Fund was established by section 11
29
of the repealed Higher Education Endowment Fund Act 2007.
30
Chapter 3 Education Investment Fund
Part 3.3 Investment of the Education Investment Fund
Section 153
118 Nation-building Funds Bill 2008 No. , 2008
Investment of the Education Investment Fund
1
(2) The financial asset is taken to be an investment of the Education
2
Investment Fund.
3
153 Management of investments of the Education Investment Fund
4
(1) Income derived from an investment of the Education Investment
5
Fund is to be credited to the Education Investment Fund Special
6
Account.
7
(2) A return of capital, or any other financial distribution, relating to
8
an investment of the Education Investment Fund is to be credited
9
to the Education Investment Fund Special Account.
10
(3) The Future Fund Board may realise an investment of the Education
11
Investment Fund.
12
(4) Upon realisation of an investment of the Education Investment
13
Fund, the proceeds of the investment are to be credited to the
14
Education Investment Fund Special Account.
15
(5) At any time before an investment of the Education Investment
16
Fund matures, the Future Fund Board may authorise the
17
re-investment of the proceeds upon maturity in a financial asset
18
investment with the same entity. The new investment is taken to be
19
an investment of the Education Investment Fund.
20
(6) Section 39 of the Financial Management and Accountability Act
21
1997 does not apply to an investment of the Education Investment
22
Fund.
23
154 Education Investment Fund Investment Mandate
24
(1) The responsible Ministers may give the Future Fund Board written
25
directions about the performance of its Education Investment Fund
26
investment functions, and must give at least one such direction.
27
Note 1:
Education Investment Fund investment function is defined in
28
section 4.
29
Note 2:
For variation and revocation, see subsection 33(3) of the Acts
30
Interpretation Act 1901.
31
Education Investment Fund Chapter 3
Investment of the Education Investment Fund Part 3.3
Section 154
Nation-building Funds Bill 2008 No. , 2008 119
(2) Subsection (1) has effect subject to section 155.
1
(3) In giving a direction under subsection (1), the responsible
2
Ministers must have regard to:
3
(a) maximising the return earned on the Education Investment
4
Fund, consistent with international best practice for
5
institutional investment; and
6
(b) enhancing the Commonwealth's ability:
7
(i) to make payments in relation to the creation or
8
development of higher education infrastructure; and
9
(ii) to make payments in relation to the creation or
10
development of research infrastructure; and
11
(iii) to make payments in relation to the creation or
12
development of vocational education and training
13
infrastructure; and
14
(iv) to make payments in relation to the creation or
15
development of eligible education infrastructure; and
16
(v) to make transitional HEEF payments; and
17
(c) such other matters as the responsible Ministers consider
18
relevant.
19
(4) Directions under subsection (1) are to be known collectively as the
20
Education Investment Fund Investment Mandate.
21
(5) A direction under subsection (1) may set out the policies to be
22
pursued by the Future Fund Board in relation to:
23
(a) matters of risk and return; and
24
(b) the allocation of financial assets.
25
A policy relating to the allocation of financial assets must not be
26
inconsistent with a policy relating to matters of risk and return.
27
(6) Subsection (5) does not limit subsection (1).
28
(7) Subsection (5) has effect subject to section 155.
29
(8) The Education Investment Fund Investment Mandate prevails over
30
subsection (12) to the extent of any inconsistency.
31
Chapter 3 Education Investment Fund
Part 3.3 Investment of the Education Investment Fund
Section 155
120 Nation-building Funds Bill 2008 No. , 2008
(9) The responsible Ministers must not give a direction under
1
subsection (1) that is inconsistent with this Act (other than
2
subsection (12)).
3
(10) A direction under subsection (1) must not take effect before the
4
15th day after the day on which it is given.
5
(11) A direction under subsection (1) is a legislative instrument.
6
Note 1:
Section 42 (disallowance) of the Legislative Instruments Act 2003
7
does not apply to the direction--see section 44 of that Act.
8
Note 2:
Part 6 (sunsetting) of the Legislative Instruments Act 2003 does not
9
apply to the direction--see section 54 of that Act.
10
(12) In the performance of its Education Investment Fund investment
11
functions, the Future Fund Board must seek to:
12
(a) maximise the return earned on the Education Investment
13
Fund, consistent with international best practice for
14
institutional investment; and
15
(b) enhance the Commonwealth's ability:
16
(i) to make payments in relation to the creation or
17
development of higher education infrastructure; and
18
(ii) to make payments in relation to the creation or
19
development of research infrastructure; and
20
(iii) to make payments in relation to the creation or
21
development of vocational education and training
22
infrastructure; and
23
(iv) to make payments in relation to the creation or
24
development of eligible education infrastructure; and
25
(v) to make transitional HEEF payments.
26
Note:
Education Investment Fund investment function is defined in
27
section 4.
28
(13) Subsection (12) has effect subject to:
29
(a) this Act; and
30
(b) a direction under subsection (1).
31
155 Limitation on Education Investment Fund Investment Mandate
32
(1) The responsible Ministers must not give a direction under
33
subsection 154(1) that has the purpose, or has or is likely to have
34
Education Investment Fund Chapter 3
Investment of the Education Investment Fund Part 3.3
Section 156
Nation-building Funds Bill 2008 No. , 2008 121
the effect, of directly or indirectly requiring the Future Fund Board
1
to:
2
(a) invest an amount standing to the credit of the Education
3
Investment Fund Special Account in a particular financial
4
asset; or
5
(b) acquire a particular derivative; or
6
(c) allocate financial assets to:
7
(i) a particular business entity; or
8
(ii) a particular activity; or
9
(iii) a particular business.
10
(2) Paragraphs (1)(a) and (b) do not limit paragraph (1)(c).
11
156 Future Fund Board to be consulted on Education Investment
12
Fund Investment Mandate
13
(1) Before giving the Future Fund Board a direction under subsection
14
154(1), the responsible Ministers must:
15
(a) send a draft of the direction to the Future Fund Board; and
16
(b) invite the Future Fund Board to make a submission to the
17
responsible Ministers on the draft direction within a time
18
limit specified by the responsible Ministers; and
19
(c) consider any submission that is received from the Future
20
Fund Board within that time limit.
21
(2) If:
22
(a) the responsible Ministers give the Future Fund Board a
23
direction under subsection 154(1); and
24
(b) the Future Fund Board made a submission to the responsible
25
Ministers on a draft of the direction within the time limit
26
specified by the responsible Ministers;
27
the submission is to be tabled in each House of the Parliament with
28
the direction.
29
Note:
For tabling of the direction, see section 38 of the Legislative
30
Instruments Act 2003.
31
(3) A time limit specified under this section must be reasonable.
32
Chapter 3 Education Investment Fund
Part 3.3 Investment of the Education Investment Fund
Section 157
122 Nation-building Funds Bill 2008 No. , 2008
157 Compliance with Education Investment Fund Investment
1
Mandate
2
(1) The Future Fund Board must take all reasonable steps to comply
3
with the Education Investment Fund Investment Mandate.
4
(2) As soon as practicable after the Future Fund Board becomes aware
5
that it has failed to comply with the Education Investment Fund
6
Investment Mandate, the Future Fund Board must give the
7
responsible Ministers a written statement:
8
(a) informing the responsible Ministers of the failure to comply
9
with the Education Investment Fund Investment Mandate;
10
and
11
(b) setting out the action that the Future Fund Board proposes to
12
take in order to comply with the Education Investment Fund
13
Investment Mandate.
14
(3) If the responsible Ministers are satisfied that the Future Fund
15
Board has failed to comply with the Education Investment Fund
16
Investment Mandate, the responsible Ministers may, by written
17
notice given to the Future Fund Board, direct the Future Fund
18
Board:
19
(a) to give the responsible Ministers, within a period specified in
20
the notice, a written explanation for the failure to comply
21
with the Education Investment Fund Investment Mandate;
22
and
23
(b) to take action specified in the notice, within a period
24
specified in the notice, in order to comply with the Education
25
Investment Fund Investment Mandate.
26
(4) The Future Fund Board must comply with a direction under
27
subsection (3).
28
(5) A failure to comply with:
29
(a) the Education Investment Fund Investment Mandate; or
30
(b) a direction under subsection (3);
31
does not affect the validity of any transaction.
32
(6) A direction under subsection (3) is not a legislative instrument.
33
Education Investment Fund Chapter 3
Investment of the Education Investment Fund Part 3.3
Section 158
Nation-building Funds Bill 2008 No. , 2008 123
158 Future Fund Board must not trigger the takeover provisions of
1
the Corporations Act 2001
2
(1) Subsections 606(1A) and (2A) and section 611 of the Corporations
3
Act 2001 do not apply to an acquisition by the Future Fund Board
4
if the acquisition is the result of the performance by the Future
5
Fund Board of its Education Investment Fund investment
6
functions.
7
(2) A failure by the Future Fund Board to comply with section 606 of
8
the Corporations Act 2001 (as modified by this section) does not
9
affect the validity of any transaction.
10
Note:
See also section 39 of the Future Fund Act 2006 (application of the
11
Corporations Act 2001).
12
159 Borrowing
13
(1) The Future Fund Board must not borrow money for a purpose in
14
connection with the Education Investment Fund unless the
15
borrowing is authorised by subsection (2) or (3).
16
(2) The Future Fund Board is authorised to borrow money for a
17
purpose in connection with the Education Investment Fund if:
18
(a) the purpose of the borrowing is to enable the Future Fund
19
Board to cover settlement of a transaction for the acquisition
20
of one or more financial assets; and
21
(b) at the time the relevant acquisition decision was made, it was
22
likely that the borrowing would not be needed; and
23
(c) the period of the borrowing does not exceed 7 days; and
24
(d) if the borrowing were to take place, the total amount
25
borrowed by the Future Fund Board would not exceed 10%
26
of the balance of the Education Investment Fund.
27
(3) The Future Fund Board is authorised to borrow money for a
28
purpose in connection with the Education Investment Fund if the
29
borrowing takes place in such circumstances (if any) as are
30
specified in the regulations.
31
Chapter 3 Education Investment Fund
Part 3.3 Investment of the Education Investment Fund
Section 160
124 Nation-building Funds Bill 2008 No. , 2008
160 Education Investment Fund investment policies
1
(1) The Future Fund Board must formulate written policies to be
2
complied with by it in relation to the following matters in
3
connection with the Education Investment Fund:
4
(a) the investment strategy for the Education Investment Fund;
5
(b) benchmarks and standards for assessing the performance of
6
the Education Investment Fund;
7
(c) risk management for the Education Investment Fund;
8
(d) a matter relating to international best practice for institutional
9
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 Education Investment Fund
15
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 Education Investment Fund Investment
26
Mandate, the Future Fund Board must review any relevant policies
27
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
Education Investment Fund Chapter 3
Investment of the Education Investment Fund Part 3.3
Section 161
Nation-building Funds Bill 2008 No. , 2008 125
(8) A failure to comply with a policy formulated under subsection (1)
1
does not affect the validity of any transaction.
2
Policies
3
(9) A policy formulated under subsection (1) is not a legislative
4
instrument.
5
161 Derivatives
6
(1) The Future Fund Board may acquire a derivative for the purpose
7
of:
8
(a) protecting the value of an investment of the Education
9
Investment Fund (other than a derivative); or
10
(b) protecting the return on an investment of the Education
11
Investment 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 Education
14
Investment Fund; or
15
(d) achieving transactional efficiency for a purpose in connection
16
with the Education Investment 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 160(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 Education Investment Fund.
27
162 Additional financial assets
28
(1) If, as a result of:
29
(a) the Future Fund Board's holding of an investment of the
30
Education Investment Fund; or
31
Chapter 3 Education Investment Fund
Part 3.3 Investment of the Education Investment Fund
Section 163
126 Nation-building Funds Bill 2008 No. , 2008
(b) the exercise of any rights or powers conferred on the Future
1
Fund Board in its capacity as the holder of an investment of
2
the Education Investment Fund;
3
the Future Fund Board becomes the holder of a financial asset, that
4
financial asset is taken to be an investment of the Education
5
Investment Fund.
6
Transitional--Higher Education Endowment Fund
7
(2) If, as a result of:
8
(a) the Future Fund Board's holding of an investment of the
9
Higher Education Endowment Fund at a time before the
10
commencement of this section; or
11
(b) the exercise of any rights or powers conferred on the Future
12
Fund Board in its capacity as the holder of an investment of
13
the Higher Education Endowment Fund at a time before the
14
commencement of this section;
15
the Future Fund Board becomes the holder of a financial asset at a
16
time after the commencement of this section, that financial asset is
17
taken to be an investment of the Education Investment Fund.
18
163 Securities lending arrangements
19
(1) The Future Fund Board may enter into securities lending
20
arrangements for a purpose in connection with the Education
21
Investment Fund.
22
(2) Any money received by the Future Fund Board under a securities
23
lending arrangement entered into under subsection (1) is to be
24
credited to the Education Investment Fund Special Account.
25
(3) To avoid doubt, a securities lending arrangement entered into
26
under subsection (1) may provide for the Future Fund Board to
27
realise an investment of the Education Investment Fund.
28
(4) If, as the result of the operation of a securities lending arrangement
29
entered into under subsection (1), the Future Fund Board becomes
30
the holder of a financial asset, that financial asset is taken to be an
31
investment of the Education Investment Fund.
32
Education Investment Fund Chapter 3
Investment of the Education Investment Fund Part 3.3
Section 164
Nation-building Funds Bill 2008 No. , 2008 127
164 Investment managers
1
(1) The Future Fund Board may engage one or more investment
2
managers for purposes in connection with the Education
3
Investment Fund.
4
(2) The Future Fund Board must not:
5
(a) invest amounts under subsection 151(1); or
6
(b) acquire derivatives under subsection 161(1); or
7
(c) enter into a securities lending arrangement under subsection
8
163(1); or
9
(d) realise financial assets that are investments of the Education
10
Investment Fund;
11
unless the Future Fund Board does so:
12
(e) through an investment manager engaged by the Future Fund
13
Board under subsection (1) of this section; or
14
(f) in a manner approved, in writing, by the responsible
15
Ministers.
16
(3) The Future Fund Board must ensure that any investment manager
17
engaged by the Future Fund Board under subsection (1) operates
18
within this Act.
19
(4) The Future Fund Board must ensure that any investment manager
20
engaged by the Future Fund Board under subsection (1) reports to:
21
(a) the Future Fund Board; and
22
(b) the Agency;
23
on the state of the investments of the Education Investment Fund at
24
such times and in such manner as the Future Fund Board
25
determines.
26
165 Custody of securities
27
Section 40 of the Financial Management and Accountability Act
28
1997 does not apply to an investment of the Education Investment
29
Fund.
30
166 Refund of franking credits
31
If:
32
Chapter 3 Education Investment Fund
Part 3.3 Investment of the Education Investment Fund
Section 167
128 Nation-building Funds Bill 2008 No. , 2008
(a) the Future Fund Board receives a refund of a tax offset under
1
the Income Tax Assessment Act 1997; and
2
(b) the tax offset is attributable to an investment of the Education
3
Investment Fund;
4
the refund is to be credited to the Education Investment Fund
5
Special Account.
6
Note 1:
See also section 84B of the Future Fund Act 2006.
7
Note 2:
For refunds of tax offsets, see Division 63 of the Income Tax
8
Assessment Act 1997.
9
167 Realisation of non-financial assets
10
(1) If an asset held by the Future Fund Board as an investment of the
11
Education Investment Fund ceases to be a financial asset:
12
(a) the Future Fund Board must realise the asset as soon as
13
practicable after the Future Fund Board becomes aware of the
14
cessation; and
15
(b) this Act (other than this section) applies in relation to the
16
asset (including in relation to the realisation of the asset) as if
17
the asset had remained a financial asset, and an investment of
18
the Education Investment Fund, until the realisation.
19
(2) If an asset acquired by the Future Fund Board, purportedly as an
20
investment of the Education Investment Fund, is not a financial
21
asset:
22
(a) the Future Fund Board must realise the asset as soon as
23
practicable after the Future Fund Board becomes aware that
24
the asset is not a financial asset; and
25
(b) this Act (other than this section) applies in relation to the
26
asset (including in relation to the realisation of the asset) as if
27
the asset had been a financial asset, and an investment of the
28
Education Investment Fund, from the time of its acquisition
29
by the Future Fund Board until the realisation.
30
168 Additional function of the Future Fund Board
31
The functions of the Future Fund Board include the function of
32
investing amounts in accordance with this Chapter.
33
34
Education Investment Fund Chapter 3
Payments Part 3.4
Introduction Division 1
Section 169
Nation-building Funds Bill 2008 No. , 2008 129
1
Part 3.4--Payments
2
Division 1--Introduction
3
169 Simplified outline
4
The following is a simplified outline of this Part:
5
·
The Education Investment Fund Advisory Board is
6
established.
7
·
The Education Investment Fund Advisory Board is to advise
8
the Education Minister about the following matters:
9
(a) the making of payments in relation to the creation
10
or development of higher education infrastructure;
11
(b) the making of payments in relation to the creation
12
or development of vocational education and
13
training infrastructure;
14
(c) the making of payments in relation to the creation
15
or development of eligible education infrastructure.
16
·
The Education Investment Fund Advisory Board is to advise
17
the Research Minister about the making of payments in
18
relation to the creation or development of research
19
infrastructure.
20
·
The Education Investment Fund Advisory Board is to advise
21
the EIF designated Ministers about the making of transitional
22
HEEF payments.
23
·
The Finance Minister may authorise:
24
(a) payments in relation to the creation or
25
development of higher education infrastructure;
26
and
27
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 1 Introduction
Section 169
130 Nation-building Funds Bill 2008 No. , 2008
(b) payments in relation to the creation or
1
development of vocational education and training
2
infrastructure; and
3
(c) payments in relation to the creation or
4
development of eligible education infrastructure;
5
on the recommendation of the Education Minister.
6
·
The Finance Minister may authorise payments in relation to
7
the creation or development of research infrastructure on the
8
recommendation of the Research Minister.
9
·
The Finance Minister may authorise transitional HEEF
10
payments on the recommendation of the EIF designated
11
Ministers.
12
·
If a payment is made by way of a grant of financial assistance,
13
the terms and conditions on which the financial assistance is
14
granted are to be set out in a written agreement between the
15
Commonwealth and the recipient.
16
·
Payments may be channelled through the EIF Education
17
Portfolio Special Account or the EIF Research Portfolio
18
Special Account.
19
·
Grants of financial assistance to the States and Territories may
20
be channelled through the COAG Reform Fund.
21
·
The Finance Minister must comply with general drawing
22
rights limits.
23
·
The total amount of payments made in each financial year will
24
depend on the macroeconomic circumstances.
25
26
Education Investment Fund Chapter 3
Payments Part 3.4
Education Investment Fund Advisory Board Division 2
Section 170
Nation-building Funds Bill 2008 No. , 2008 131
1
Division 2--Education Investment Fund Advisory Board
2
170 Education Investment Fund Advisory Board
3
(1) The Education Investment Fund Advisory Board is established.
4
(2) The EIF Advisory Board consists of such persons as the EIF
5
designated Ministers from time to time appoint, by writing, to the
6
EIF Advisory Board.
7
Note:
EIF Advisory Board means the Education Investment Fund Advisory
8
Board--see section 4.
9
(3) A member of the EIF Advisory Board holds office for the period
10
specified in the instrument of appointment. The period must not
11
exceed 3 years.
12
Note:
For re-appointment, see subsection 33(4A) of the Acts Interpretation
13
Act 1901.
14
(4) A person is not eligible for appointment to the EIF Advisory Board
15
unless the EIF designated Ministers are satisfied that the person has
16
substantial experience or knowledge in a field relevant to one or
17
more of the EIF Advisory Board's functions.
18
(5) The EIF designated Ministers may terminate a person's
19
appointment to the EIF Advisory Board.
20
(6) The EIF designated Ministers may give the EIF Advisory Board
21
written directions as to:
22
(a) the way in which the EIF Advisory Board is to carry out its
23
functions; and
24
(b) procedures to be followed in relation to meetings.
25
(7) A direction under subsection (6) is not a legislative instrument.
26
171 Functions of the EIF Advisory Board
27
General functions
28
(1) The EIF Advisory Board has the following functions:
29
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 2 Education Investment Fund Advisory Board
Section 171
132 Nation-building Funds Bill 2008 No. , 2008
(a) to advise the Education Minister about matters referred to it
1
by the Education Minister; and
2
(b) to advise the Research Minister about matters referred to it
3
by the Research Minister; and
4
(c) to advise the EIF designated Ministers about matters referred
5
to it by the EIF designated Ministers.
6
(2) Each matter referred to the EIF Advisory Board under
7
paragraph (1)(a) must be a matter that relates to:
8
(a) the making of payments in relation to the creation or
9
development of higher education infrastructure; or
10
(b) the making of payments in relation to the creation or
11
development of vocational education and training
12
infrastructure; or
13
(c) the making of payments in relation to the creation or
14
development of eligible education infrastructure.
15
(3) Each matter referred to the EIF Advisory Board under
16
paragraph (1)(b) must be a matter that relates to the making of
17
payments in relation to the creation or development of research
18
infrastructure.
19
(4) In giving advice under paragraph (1)(a) or (b), the EIF Advisory
20
Board must apply the EIF evaluation criteria.
21
(5) Each matter referred to the EIF Advisory Board under
22
paragraph (1)(c) must be a matter that:
23
(a) relates to the object or operation of this Chapter; and
24
(b) does not relate to the making of a particular payment.
25
Functions relating to transitional HEEF payments
26
(6) The EIF Advisory Board also has the function of advising the EIF
27
designated Ministers about matters that:
28
(a) are referred to it by the EIF designated Ministers before
29
1 July 2009; and
30
(b) relate to the making of transitional HEEF payments.
31
(7) In giving advice under subsection (6), the EIF Advisory Board
32
must apply the provisions of the document that:
33
Education Investment Fund Chapter 3
Payments Part 3.4
Education Investment Fund Advisory Board Division 2
Section 172
Nation-building Funds Bill 2008 No. , 2008 133
(a) is entitled "Higher Education Endowment Fund (HEEF)
1
Application and Assessment Procedures for the 2009
2
Funding Round"; and
3
(b) was attached to the Higher Education Endowment Fund
4
Advisory Board Directions No. 1 of 2008 as in force
5
immediately before the commencement of this section;
6
subject to such modifications as are specified in the regulations.
7
172 EIF evaluation criteria
8
(1) The EIF designated Ministers may, by legislative instrument,
9
formulate criteria (EIF evaluation criteria) to be applied by the
10
EIF Advisory Board in giving advice under paragraph 171(1)(a) or
11
(b).
12
(2) The EIF evaluation criteria may provide that the criteria to be
13
applied by the EIF Advisory Board in giving advice under
14
paragraph 171(1)(a) may be different to the criteria to be applied
15
by the EIF Advisory Board in giving advice under paragraph
16
171(1)(b).
17
(3) Before formulating EIF evaluation criteria, the EIF designated
18
Ministers must consult the responsible Ministers.
19
(4) The EIF designated Ministers must ensure that EIF evaluation
20
criteria are in force at all times after the commencement of this
21
section.
22
173 Remuneration and allowances
23
(1) A member of the EIF Advisory Board is to be paid the
24
remuneration that is determined by the Remuneration Tribunal. If
25
no determination of that remuneration by the Tribunal is in
26
operation, the member is to be paid the remuneration that is
27
determined by the EIF designated Ministers.
28
(2) A member of the EIF Advisory Board is to be paid the allowances
29
that are prescribed.
30
(3) This section has effect subject to the Remuneration Tribunal Act
31
1973.
32
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 2 Education Investment Fund Advisory Board
Section 174
134 Nation-building Funds Bill 2008 No. , 2008
174 Disclosure of interests
1
(1) This section applies to a member of the EIF Advisory Board who
2
has a material personal interest in a matter being considered, or
3
about to be considered, by the EIF Advisory Board.
4
(2) The member must, as soon possible after the relevant facts have
5
come to the member's knowledge:
6
(a) disclose the nature of the interest at a meeting of the EIF
7
Advisory Board; and
8
(b) disclose the nature of the interest to the EIF designated
9
Ministers.
10
(3) A disclosure under paragraph (2)(a) must be recorded in the
11
minutes of the meeting.
12
(4) The EIF designated Ministers must terminate the appointment of a
13
member of the EIF Advisory Board if the member fails, without
14
reasonable excuse, to comply with subsection (2).
15
(5) Subsection (4) does not limit subsection 170(5).
16
175 Resignation
17
(1) A member of the EIF Advisory Board may resign his or her
18
appointment by giving a written resignation to:
19
(a) the Education Minister; or
20
(b) the Research Minister.
21
(2) The resignation takes effect on the day it is received by the
22
Minister concerned or, if a later day is specified in the resignation,
23
on that later day.
24
25
Education Investment Fund Chapter 3
Payments Part 3.4
Direct payments Division 3
Section 176
Nation-building Funds Bill 2008 No. , 2008 135
1
Division 3--Direct payments
2
176 Authorisation of payme nts
3
(1) The Finance Minister may, by writing, authorise a payment in
4
relation to the creation or development of higher education
5
infrastructure.
6
(2) The Finance Minister may, by writing, authorise a payment in
7
relation to the creation or development of research infrastructure.
8
(3) The Finance Minister may, by writing, authorise a payment in
9
relation to the creation or development of vocational education and
10
training infrastructure.
11
(4) The Finance Minister may, by writing, authorise a payment in
12
relation to the creation or development of eligible education
13
infrastructure.
14
(5) The Finance Minister may, by writing, authorise a transitional
15
HEEF payment.
16
(6) Subsections (1), (2), (3), (4) and (5) do not limit each other.
17
(7) 2 or more authorisations under this section may be set out in the
18
same document.
19
(8) An instrument under subsection (1), (2), (3), (4) or (5) is not a
20
legislative instrument.
21
177 Recommendations about payme nts
22
Education infrastructure
23
(1) The Finance Minister must not authorise a payment under
24
subsection 176(1), (3) or (4) unless the Education Minister has
25
recommended the authorisation of the payment.
26
(2) The Education Minister must not make a recommendation under
27
subsection (1) in relation to a payment unless the EIF Advisory
28
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 3 Direct pay ments
Section 177
136 Nation-building Funds Bill 2008 No. , 2008
Board has advised under paragraph 171(1)(a) that the payment
1
satisfies the relevant EIF evaluation criteria.
2
(3) In deciding whether to make a recommendation under
3
subsection (1) in relation to a payment, the Education Minister
4
must have regard to:
5
(a) advice about the payment that was given to the Education
6
Minister by the EIF Advisory Board under paragraph
7
171(1)(a); and
8
(b) such other matters (if any) as the Education Minister
9
considers relevant.
10
Research infrastructure
11
(4) The Finance Minister must not authorise a payment under
12
subsection 176(2) unless the Research Minister has recommended
13
the authorisation of the payment.
14
(5) The Research Minister must not make a recommendation under
15
subsection (4) in relation to a payment unless the EIF Advisory
16
Board has advised under paragraph 171(1)(b) that the payment
17
satisfies the relevant EIF evaluation criteria.
18
(6) In deciding whether to make a recommendation under
19
subsection (4) in relation to a payment, the Research Minister must
20
have regard to:
21
(a) advice about the payment that was given to the Research
22
Minister by the EIF Advisory Board under paragraph
23
171(1)(b); and
24
(b) such other matters (if any) as the Research Minister considers
25
relevant.
26
Transitional HEEF payments
27
(7) The Finance Minister must not authorise a payment under
28
subsection 176(5) unless the EIF designated Ministers have, before
29
1 July 2009, recommended the authorisation of the payment.
30
(8) The EIF designated Ministers must not make a recommendation
31
under subsection (7) in relation to a payment unless the EIF
32
Education Investment Fund Chapter 3
Payments Part 3.4
Direct payments Division 3
Section 178
Nation-building Funds Bill 2008 No. , 2008 137
Advisory Board has given advice under subsection 171(6) about
1
the payment.
2
(9) In deciding whether to make a recommendation under
3
subsection (7) in relation to a payment, the EIF designated
4
Ministers must have regard to:
5
(a) advice about the payment that was given to the EIF
6
designated Ministers by the EIF Advisory Board under
7
subsection 171(6); and
8
(b) such other matters (if any) as the EIF designated Ministers
9
consider relevant.
10
178 Grant to a State or Territory--education infrastructure etc.
11
Scope
12
(1) This section applies if:
13
(a) an amount is to be debited from the Education Investment
14
Fund Special Account for the purpose of making a payment
15
to a State or Territory; and
16
(b) the payment is by way of a grant of financial assistance; and
17
(c) the payment is for a purpose mentioned in paragraph
18
136(1)(c) or (d).
19
Terms and conditions
20
(2) The terms and conditions on which that financial assistance is
21
granted are to be set out in a written agreement between the
22
Commonwealth and the State or Territory.
23
(3) An agreement under subsection (2) may be entered into by the
24
Education Minister on behalf of the Commonwealth.
25
179 Grant to a person other than a State or Te rritory--education
26
infrastructure etc.
27
Scope
28
(1) This section applies if:
29
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 3 Direct pay ments
Section 180
138 Nation-building Funds Bill 2008 No. , 2008
(a) an amount is to be debited from the Education Investment
1
Fund Special Account for the purpose of making a payment
2
to a person other than a State or Territory; and
3
(b) the payment is by way of a grant of financial assistance; and
4
(c) the payment is for a purpose mentioned in paragraph
5
136(1)(a), (c), (d) or (e).
6
Terms and conditions
7
(2) The terms and conditions on which that financial assistance is
8
granted are to be set out in a written agreement between the
9
Commonwealth and the person.
10
(3) An agreement under subsection (2) may be entered into by the
11
Education Minister on behalf of the Commonwealth.
12
180 Grant to a person other than a State or Te rritory--research
13
infrastructure
14
Scope
15
(1) This section applies if:
16
(a) an amount is to be debited from the Education Investment
17
Fund Special Account for the purpose of making a payment
18
to a person other than a State or Territory; and
19
(b) the payment is by way of a grant of financial assistance; and
20
(c) the payment is for the purpose mentioned in paragraph
21
136(1)(b).
22
Terms and conditions
23
(2) The terms and conditions on which that financ ial assistance is
24
granted are to be set out in a written agreement between the
25
Commonwealth and the person.
26
(3) An agreement under subsection (2) may be entered into by the
27
Research Minister on behalf of the Commonwealth.
28
29
Education Investment Fund Chapter 3
Payments Part 3.4
Channelling of pay ments through the EIF Education Portfo lio Special Account
Division 4
Section 181
Nation-building Funds Bill 2008 No. , 2008 139
1
Division 4--Channelling of payments through the EIF
2
Education Portfolio Special Account
3
181 Establishme nt of the EIF Education Portfolio Special Account
4
(1) The EIF Education Portfolio Special Account is established by this
5
section.
6
(2) The EIF Education Portfolio Special Account is a Special Account
7
for the purposes of the Financial Management and Accountability
8
Act 1997.
9
182 Purposes of the EIF Education Portfolio Special Account
10
(1) Each of the following is a purpose of the EIF Education Portfolio
11
Special Account:
12
(a) making payments in relation to the creation or development
13
of higher education infrastructure, so long as the payments
14
are specified under subsection 183(2);
15
(b) making payments in relation to the creation or development
16
of vocational education and training infrastructure, so long as
17
the payments are specified under subsection 183(2);
18
(c) making payments in relation to the creation or development
19
of eligible education infrastructure, so long as the payments
20
are specified under subsection 183(2);
21
(d) making transitional HEEF payments, so long as the payments
22
are specified under subsection 183(2).
23
Note:
See section 21 of the Financial Management and Accountability Act
24
1997 (debits from Special Accounts).
25
(2) Paragraphs (1)(a), (b), (c) and (d) do not limit each other.
26
(3) A payment under paragraph (1)(a), (b), (c) or (d) may be made:
27
(a) by way of a grant of financial assistance; or
28
(b) otherwise than by way of a grant of financial assistance.
29
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 4 Channelling of pay ments through the EIF Education Portfolio Special
Account
Section 183
140 Nation-building Funds Bill 2008 No. , 2008
183 Channelling of payments through the EIF Education Portfolio
1
Special Account
2
(1) The Finance Minister may, by writing, direct that a specified
3
amount is to be:
4
(a) debited from the Education Investment Fund Special
5
Account; and
6
(b) credited to the EIF Education Portfolio Special Account;
7
on a specified day.
8
(2) The direction must be expressed to be given in order to enable the
9
specified amount to be debited from the EIF Education Portfolio
10
Special Account:
11
(a) for the purpose of making a specified payment in relation to
12
the creation or development of higher education
13
infrastructure; or
14
(b) for the purpose of making a specified payment in relation to
15
the creation or development of vocational education and
16
training infrastructure; or
17
(c) for the purpose of making a specified payment in relation to
18
the creation or development of eligible education
19
infrastructure; or
20
(d) for the purpose of making a specified transitional HEEF
21
payment.
22
(3) Paragraphs (2)(a), (b), (c) and (d) do not limit each other.
23
(4) 2 or more directions under subsection (1) may be set out in the
24
same document.
25
(5) A direction under subsection (1) is not a legislative instrument.
26
(6) The Finance Minister must give a copy of a direction under
27
subsection (1) to the Education Minister.
28
184 Recommendations about payme nts--education infrastructure
29
Education infrastructure
30
(1) The following payments:
31
Education Investment Fund Chapter 3
Payments Part 3.4
Channelling of pay ments through the EIF Education Portfo lio Special Account
Division 4
Section 184
Nation-building Funds Bill 2008 No. , 2008 141
(a) a payment in relation to the creation or development of
1
higher education infrastructure;
2
(b) a payment in relation to the creation or development of
3
vocational education and training infrastructure;
4
(c) a payment in relation to the creation or development of
5
eligible education infrastructure;
6
must not be specified under subsection 183(2) unless the Education
7
Minister has recommended the specification of the payment.
8
(2) The Education Minister must not make a recommendation under
9
subsection (1) in relation to a payment unless the EIF Advisory
10
Board has advised under paragraph 171(1)(a) that the payment
11
satisfies the relevant EIF evaluation criteria.
12
(3) In deciding whether to make a recommendation under
13
subsection (1) in relation to a payment, the Education Minister
14
must have regard to:
15
(a) advice about the payment that was given to the Education
16
Minister by the EIF Advisory Board under paragraph
17
171(1)(a); and
18
(b) such other matters (if any) as the Education Minister
19
considers relevant.
20
Transitional HEEF payments
21
(4) A transitional HEEF payment must not be specified under
22
subsection 183(2) unless the EIF designated Ministers have, before
23
1 July 2009, recommended the specification of the payment.
24
(5) The EIF designated Ministers must not make a recommendation
25
under subsection (4) in relation to a payment unless the EIF
26
Advisory Board has given advice under subsection 171(6) about
27
the payment.
28
(6) In deciding whether to make a recommendation under
29
subsection (4) in relation to a payment, the EIF designated
30
Ministers must have regard to:
31
(a) advice about the payment that was given to the EIF
32
designated Ministers by the EIF Advisory Board under
33
subsection 171(6); and
34
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 4 Channelling of pay ments through the EIF Education Portfolio Special
Account
Section 185
142 Nation-building Funds Bill 2008 No. , 2008
(b) such other matters (if any) as the EIF designated Ministers
1
consider relevant.
2
185 Payments--debit from the EIF Education Portfolio Special
3
Account
4
Scope
5
(1) This section applies if:
6
(a) the Finance Minister gives a direction under subsection
7
183(1) for a purpose in relation to a payment; and
8
(b) the amount specified in the direction is credited to the EIF
9
Education Portfolio Special Account.
10
Debit from the EIF Education Portfolio Special Account
11
(2) The Education Minister must ensure that, as soon as practicable
12
after the amount is credited, the EIF Education Portfolio Special
13
Account is debited for the purposes of making the payment.
14
(3) However, if the payment cannot be made, an amount equal to the
15
credited amount is to be:
16
(a) debited from the EIF Education Portfolio Special Account;
17
and
18
(b) credited to the Education Investment Fund Special Account.
19
186 Grant to a State or Territory--education infrastructure etc.
20
Scope
21
(1) This section applies if an amount is to be debited from the EIF
22
Education Portfolio Special Account for the purpose of making a
23
grant of financial assistance to a State or Territory.
24
Terms and conditions
25
(2) The terms and conditions on which that financial assistance is
26
granted are to be set out in a written agreement between the
27
Commonwealth and the State or Territory.
28
Education Investment Fund Chapter 3
Payments Part 3.4
Channelling of pay ments through the EIF Education Portfo lio Special Account
Division 4
Section 187
Nation-building Funds Bill 2008 No. , 2008 143
(3) An agreement under subsection (2) may be entered into by the
1
Education Minister on behalf of the Commonwealth.
2
187 Grant to a person other than a State or Te rritory--education
3
infrastructure etc.
4
Scope
5
(1) This section applies if:
6
(a) an amount is to be debited from the EIF Education Portfolio
7
Special Account for the purpose of making a payment to a
8
person other than a State or Territory; and
9
(b) the payment is by way of a grant of financial assistance.
10
Terms and conditions
11
(2) The terms and conditions on which that financial assistance is
12
granted are to be set out in a written agreement between the
13
Commonwealth and the person.
14
(3) An agreement under subsection (2) may be entered into by the
15
Education Minister on behalf of the Commonwealth.
16
17
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 5 Channelling of pay ments through the EIF Research Portfolio Special
Account
Section 188
144 Nation-building Funds Bill 2008 No. , 2008
1
Division 5--Channelling of payments through the EIF
2
Research Portfolio Special Account
3
188 Establishme nt of the EIF Research Portfolio Special Account
4
(1) The EIF Research Portfolio Special Account is established by this
5
section.
6
(2) The EIF Research Portfolio Special Account is a Special Account
7
for the purposes of the Financial Management and Accountability
8
Act 1997.
9
189 Purposes of the EIF Research Portfolio Special Account
10
(1) Each of the following is a purpose of the EIF Research Portfolio
11
Special Account:
12
(a) making payments in relation to the creation or development
13
of research infrastructure, so long as the payments are
14
specified under subsection 190(2);
15
(b) making transitional HEEF payments, so long as the payments
16
are specified under subsection 190(2).
17
Note:
See section 21 of the Financial Management and Accountability Act
18
1997 (debits from Special Accounts).
19
(2) Paragraphs (1)(a) and (b) do not limit each other.
20
(3) A payment under paragraph (1)(a) or (b) may be made:
21
(a) by way of a grant of financial assistance; or
22
(b) otherwise than by way of a grant of financial assistance.
23
190 Channelling of payments through the EIF Research Portfolio
24
Special Account
25
(1) The Finance Minister may, by writing, direct that a specified
26
amount is to be:
27
(a) debited from the Education Investment Fund Special
28
Account; and
29
(b) credited to the EIF Research Portfolio Special Account;
30
Education Investment Fund Chapter 3
Payments Part 3.4
Channelling of pay ments through the EIF Research Portfo lio Special Account Division
5
Section 191
Nation-building Funds Bill 2008 No. , 2008 145
on a specified day.
1
(2) The direction must be expressed to be given in order to enable the
2
specified amount to be debited from the EIF Research Portfolio
3
Special Account:
4
(a) for the purpose of making a specified payment in relation to
5
the creation or development of research infrastructure; or
6
(b) for the purpose of making a specified transitional HEEF
7
payment.
8
(3) Paragraphs (2)(a) and (b) do not limit each other.
9
(4) 2 or more directions under subsection (1) may be set out in the
10
same document.
11
(5) A direction under subsection (1) is not a legislative instrument.
12
(6) The Finance Minister must give a copy of a direction under
13
subsection (1) to the Research Minister.
14
191 Recommendations about payme nts--research infrastructure
15
and transitional HEEF payme nts
16
Research infrastructure
17
(1) A payment in relation to the creation or development of research
18
infrastructure must not be specified under subsection 190(2) unless
19
the Research Minister has recommended the specification of the
20
payment.
21
(2) The Research Minister must not make a recommendation under
22
subsection (1) in relation to a payment unless the EIF Advisory
23
Board has advised under paragraph 171(1)(b) that the payment
24
satisfies the relevant EIF evaluation criteria.
25
(3) In deciding whether to make a recommendation under
26
subsection (1) in relation to a payment, the Research Minister must
27
have regard to:
28
(a) advice about the payment that was given to the Research
29
Minister by the EIF Advisory Board under paragraph
30
171(1)(b); and
31
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 5 Channelling of pay ments through the EIF Research Portfolio Special
Account
Section 192
146 Nation-building Funds Bill 2008 No. , 2008
(b) such other matters (if any) as the Research Minister considers
1
relevant.
2
Transitional HEEF payments
3
(4) A transitional HEEF payment must not be specified under
4
subsection 190(2) unless the EIF designated Ministers have, before
5
1 July 2009, recommended the specification of the payment.
6
(5) The EIF designated Ministers must not make a recommendation
7
under subsection (4) in relation to a payment unless the EIF
8
Advisory Board has given advice under subsection 171(6) about
9
the payment.
10
(6) In deciding whether to make a recommendation under
11
subsection (4) in relation to a payment, the EIF designated
12
Ministers must have regard to:
13
(a) advice about the payment that was given to the EIF
14
designated Ministers by the EIF Advisory Board under
15
subsection 171(6); and
16
(b) such other matters (if any) as the EIF designated Ministers
17
consider relevant.
18
192 Payments--debit from the EIF Research Portfolio Special
19
Account
20
Scope
21
(1) This section applies if:
22
(a) the Finance Minister gives a direction under subsection
23
190(1) for a purpose in relation to a payment; and
24
(b) the amount specified in the direction is credited to the EIF
25
Research Portfolio Special Account.
26
Debit from the EIF Research Portfolio Special Account
27
(2) The Research Minister must ensure that, as soon as practicable
28
after the amount is credited, the EIF Research Portfolio Special
29
Account is debited for the purposes of making the payment.
30
Education Investment Fund Chapter 3
Payments Part 3.4
Channelling of pay ments through the EIF Research Portfo lio Special Account Division
5
Section 193
Nation-building Funds Bill 2008 No. , 2008 147
(3) However, if the payment cannot be made, an amount equal to the
1
credited amount is to be:
2
(a) debited from the EIF Research Portfolio Special Account;
3
and
4
(b) credited to the Education Investment Fund Special Account.
5
193 Grant to a person other than a State or Te rritory--research
6
infrastructure
7
Scope
8
(1) This section applies if:
9
(a) an amount is to be debited from the EIF Research Portfolio
10
Special Account for the purpose of making a payment to a
11
person other than a State or Territory; and
12
(b) the payment is by way of a grant of financial assistance.
13
Terms and conditions
14
(2) The terms and conditions on which that financial assistance is
15
granted are to be set out in a written agreement between the
16
Commonwealth and the person.
17
(3) An agreement under subsection (2) may be entered into by the
18
Research Minister on behalf of the Commonwealth.
19
20
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 6 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 194
148 Nation-building Funds Bill 2008 No. , 2008
1
Division 6--Channelling of State/Territory grants
2
payments through the COAG Reform Fund
3
194 Channelling of State/Territory grants payme nts through the
4
COAG Reform Fund
5
(1) The Finance Minister may, by writing, direct that a specified
6
amount is to be:
7
(a) debited from the Education Investment Fund Special
8
Account; and
9
(b) credited to the EIF Education Portfolio Special Account;
10
on a specified day.
11
(2) The direction must be expressed to be given in order to enable the
12
specified amount to be:
13
(a) transferred from the EIF Education Portfolio Special Account
14
to the COAG Reform Fund; and
15
(b) debited from the COAG Reform Fund for the purpose of
16
making a specified grant of financial assistance to a State or
17
Territory.
18
(3) A grant specified under subsection (2) must be:
19
(a) a grant of financial assistance to a vocational education and
20
training provider in relation to education infrastructure; or
21
(b) a grant of financial assistance in relation to a designated
22
education infrastructure-related matter.
23
(4) 2 or more directions under subsection (1) may be set out in the
24
same document.
25
(5) A direction under subsection (1) is not a legislative instrument.
26
(6) The Finance Minister must give a copy of a direction under
27
subsection (1) to the Treasurer and the Education Minister.
28
Education Investment Fund Chapter 3
Payments Part 3.4
Channelling of State/Territory grants payments through the COA G Reform Fund
Division 6
Section 195
Nation-building Funds Bill 2008 No. , 2008 149
195 Recommendations about grants payments
1
(1) A grant must not be specified under subsection 194(2) unless the
2
Education Minister has recommended the specification of the
3
grant.
4
(2) The Education Minister must not make a recommendation under
5
subsection (1) in relation to a grant unless the EIF Advisory Board
6
has advised under paragraph 171(1)(a) that the grant satisfies the
7
relevant EIF evaluation criteria.
8
(3) In deciding whether to make a recommendation under
9
subsection (1) in relation to a grant, the Education Minister must
10
have regard to:
11
(a) advice about the grant that was given to the Education
12
Minister by the EIF Advisory Board Australia under
13
paragraph 171(1)(a); and
14
(b) such other matters (if any) as the Education Minister
15
considers relevant.
16
196 Transfers from the EIF Education Portfolio Special Account to
17
the COAG Reform Fund
18
Scope
19
(1) This section applies if:
20
(a) the Finance Minister gives a direction under subsection
21
194(1) for a purpose in relation to a grant of financial
22
assistance to a State or Territory; and
23
(b) the amount specified in the direction is credited to the EIF
24
Education Portfolio Special Account.
25
Transfer direction
26
(2) As soon as practicable after the amount is credited, the Education
27
Minister must, by writing, direct that the amount is to be:
28
(a) debited from the EIF Education Portfolio Special Account;
29
and
30
(b) credited to the COAG Reform Fund;
31
on a specified day.
32
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 6 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 197
150 Nation-building Funds Bill 2008 No. , 2008
(3) The direction must be expressed to be given in order to enable the
1
amount to be debited from the COAG Reform Fund for the
2
purpose of making the grant.
3
(4) 2 or more directions under subsection (2) may be set out in the
4
same document.
5
(5) A direction under subsection (2) is not a legislative instrument.
6
(6) The Education Minister must give a copy of a direction under
7
subsection (2) to the Treasurer.
8
197 Grants payments--debit from the COAG Reform Fund
9
Scope
10
(1) This section applies if:
11
(a) the Education Minister gives a direction under subsection
12
196(2) for a purpose in relation to a grant of financial
13
assistance to a State or Territory; and
14
(b) the amount specified in the direction is credited to the COAG
15
Reform Fund.
16
Debit from the COAG Reform Fund
17
(2) The Treasurer must ensure that, as soon as practicable after the
18
amount is credited, the COAG Reform Fund is debited for the
19
purposes of making the grant.
20
198 Grant to a State or Territory--education infrastructure
21
Scope
22
(1) This section applies if:
23
(a) an amount is to be debited from the COAG Reform Fund for
24
the purpose of making a grant of financial assistance to a
25
State or Territory; and
26
(b) the grant is covered by subsection 197(2).
27
Note:
Subsection 197(2) deals with grants channelled through the COAG
28
Reform Fund.
29
Education Investment Fund Chapter 3
Payments Part 3.4
Channelling of State/Territory grants payments through the COA G Reform Fu nd
Division 6
Section 198
Nation-building Funds Bill 2008 No. , 2008 151
Terms and conditions
1
(2) The terms and conditions on which that financial assistance is
2
granted are to be set out in a written agreement between the
3
Commonwealth and the State or Territory.
4
(3) An agreement under subsection (2) may be entered into by the
5
Education Minister on behalf of the Commonwealth.
6
7
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 7 Total pay ments for a financial year
Section 199
152 Nation-building Funds Bill 2008 No. , 2008
1
Division 7--Total payments for a financial year
2
199 General drawing rights limit in relation to a financial year
3
Scope
4
(1) This section applies to a financial year if:
5
(a) in the case of the financial year ending on 30 June 2009--the
6
Finance Minister declares in writing that a specified amount
7
is the general drawing rights limit in relation to the financial
8
year for the purposes of this section; or
9
(b) in the case of a later financia l year--an Appropriation Act
10
relating to the financial year declares that a specified amount
11
is the general drawing rights limit in relation to the financial
12
year for the purposes of this section.
13
Issue of drawing rights
14
(2) The total amount covered by drawing rights authorising the
15
following debits in the financial year:
16
(a) the debit of an amount from the Education Investment Fund
17
Special Account for a purpose mentioned in paragraph
18
136(1)(a), (b), (c), (d) or (e);
19
(b) the debit of an amount from the EIF Education Portfolio
20
Special Account (other than a debit under section 196);
21
(c) the debit of an amount from the EIF Research Portfolio
22
Special Account;
23
(d) the debit of an amount from the COAG Reform Fund in
24
accordance with subsection 197(2);
25
must not exceed the general drawing rights limit for the financial
26
year.
27
Declaration
28
(3) A declaration under paragraph (1)(a) is a legislative instrument, but
29
section 42 (disallowance) of the Legislative Instruments Act 2003
30
does not apply to the declaration.
31
Education Investment Fund Chapter 3
Payments Part 3.4
Total payments for a financial year Division 7
Section 200
Nation-building Funds Bill 2008 No. , 2008 153
200 Drawing rights in relation to other financial years
1
The application of section 199 to a particular financial year does
2
not limit the drawing rights that may be issued in relation to any
3
other financial year.
4
201 No drawing rights to be issued if there is no general drawing
5
rights limit in relation to a financial year
6
Scope
7
(1) This section applies to a financial year if:
8
(a) in the case of the financial year ending on 30 June 2009--no
9
declaration is in force under paragraph 199(1)(a); or
10
(b) in the case of a later financial year--no Appropriation Act
11
relating to the financial year declares that a specified amount
12
is the general drawing rights limit in relation to the financial
13
year for the purposes of section 199.
14
No drawing rights to be issued
15
(2) Drawing rights authorising any of the following debits in the
16
financial year must not be issued:
17
(a) the debit of an amount from the Education Investment Fund
18
Special Account for a purpose mentioned in paragraph
19
136(1)(a), (b), (c), (d) or (e);
20
(b) the debit of an amount from the EIF Education Portfolio
21
Special Account (other than a debit under section 196);
22
(c) the debit of an amount from the EIF Research Portfolio
23
Special Account;
24
(d) the debit of an amount from the COAG Reform Fund in
25
accordance with subsection 197(2).
26
202 Total payme nts to depend primarily on the macroeconomic
27
circumstances
28
Scope
29
(1) This section applies to the following decisions:
30
Chapter 3 Education Investment Fund
Part 3.4 Pay ments
Division 7 Total pay ments for a financial year
Section 202
154 Nation-building Funds Bill 2008 No. , 2008
(a) a decision to authorise a payment under section 176, where
1
the authorisation will result in a debit from the Education
2
Investment Fund Special Account in a financial year;
3
(b) a decision to give a direction under subsection 183(1), where
4
the direction will result in a debit from the EIF Education
5
Portfolio Fund in a financial year in accordance with
6
subsection 185(2);
7
(c) a decision to give a direction under subsection 190(1), where
8
the direction will result in a debit from the EIF Research
9
Portfolio Fund in a financial year in accordance with
10
subsection 192(2);
11
(d) a decision to give a direction under subsection 194(1), where
12
the direction will result in a debit from the COAG Reform
13
Fund in a financial year in accordance with subsection
14
197(2).
15
Macroeconomic circumstances
16
(2) In making the decision, the Finance Minister must have regard to
17
the principle that the total of the following debits in the financial
18
year:
19
(a) the debit of an amount from the Education Investment Fund
20
Special Account for a purpose mentioned in paragraph
21
136(1)(a), (b), (c), (d) or (e);
22
(b) the debit of an amount from the EIF Education Portfolio
23
Special Account (other than a debit under section 196);
24
(c) the debit of an amount from the EIF Research Portfolio
25
Special Account;
26
(d) the debit of an amount from the COAG Reform Fund in
27
accordance with subsection 197(2);
28
should depend primarily on the macroeconomic circumstances.
29
30
Education Investment Fund Chapter 3
Reporting obligations etc. Part 3.5
Section 203
Nation-building Funds Bill 2008 No. , 2008 155
1
Part 3.5--Reporting obligations etc.
2
3
203 Finance Minister may require Future Fund Board to prepare
4
reports or give information
5
Reports
6
(1) The Finance Minister may, by written notice given to the Future
7
Fund Board, require the Future Fund Board to:
8
(a) prepare a report about one or more specified matters relating
9
to the performance of the Future Fund Board's functions
10
under this Chapter; and
11
(b) give copies of the report to the Finance Minister within the
12
period specified in the notice.
13
Information
14
(2) The Finance Minister may, by written notice given to the Future
15
Fund Board, require the Future Fund Board to:
16
(a) prepare a document setting out specified information relating
17
to the performance of the Future Fund Board's functions
18
under this Chapter; and
19
(b) give copies of the document to the Finance Minister within
20
the period specified in the notice.
21
Compliance
22
(3) The Future Fund Board must comply with a requirement under
23
subsection (1) or (2).
24
Publication of reports and documents
25
(4) The Finance Minister may cause to be published (whether on the
26
internet or otherwise):
27
(a) a report under subsection (1); or
28
(b) a document under subsection (2).
29
Chapter 3 Education Investment Fund
Part 3.5 Reporting obligations etc.
Section 204
156 Nation-building Funds Bill 2008 No. , 2008
Reports and documents
1
(5) A report under subsection (1) is not a legislative instrument.
2
(6) A document under subsection (2) is not a legislative instrument.
3
204 Keeping the responsible Ministers informe d etc.
4
(1) The Future Fund Board must keep the responsible Ministers
5
informed of the operations of the Future Fund Board under this
6
Chapter.
7
(2) The Future Fund Board must give the Finance Minister such
8
reports, documents and information in relation to those operations
9
as are appropriate.
10
205 Finance Minister may give reports to other Ministers etc.
11
The Finance Minister may give:
12
(a) the Treasurer; or
13
(b) the Education Minister; or
14
(c) the Research Minister;
15
any of the following:
16
(d) a report under subsection 203(1) or 204(2);
17
(e) a document under subsection 203(2) or 204(2);
18
(f) any other information or document obtained by the Finance
19
Minister under this Chapter.
20
21
Education Investment Fund Chapter 3
Miscellaneous Part 3.6
Section 206
Nation-building Funds Bill 2008 No. , 2008 157
1
Part 3.6--Miscellaneous
2
3
206 Investment provisions do not apply to certain assets
4
Scope
5
(1) This section applies to an asset if:
6
(a) the asset is:
7
(i) a share; or
8
(ii) a debenture; or
9
(iii) a unit in a unit trust; or
10
(iv) any other financial asset; and
11
(b) the asset is held by the Commonwealth; and
12
(c) the asset was acquired:
13
(i) using money debited from the Education Investment
14
Fund Special Account for the purpose mentioned in
15
paragraph 136(1)(a), (b), (c) or (d); or
16
(ii) using money debited from the EIF Education Portfolio
17
Special Account; or
18
(iii) using money debited from the EIF Research Portfolio
19
Special Account.
20
Investment provisions do not apply
21
(2) Part 3.3 does not apply in relation to the asset.
22
(3) Section 39 of the Financial Management and Accountability Act
23
1997 does not apply in relation to the asset.
24
207 Delegation by the Finance Minister
25
Department
26
(1) The Finance Minister may, by writing, delegate any or all of his or
27
her functions or powers under section 146, 147, 148, 176, 183, 190
28
or 194 to:
29
Chapter 3 Education Investment Fund
Part 3.6 Miscellaneous
Section 208
158 Nation-building Funds Bill 2008 No. , 2008
(a) the Secretary of the Finance Department; or
1
(b) an SES employee, or acting SES employee, in the Finance
2
Department.
3
Note:
The expressions SES employee and acting SES employee are defined
4
in section 17AA of the Acts Interpretation Act 1901.
5
(2) In exercising powers under a delegation, the delegate must comply
6
with any directions of the Finance Minister.
7
Agency
8
(3) The Finance Minister may, by writing, delegate any or all of his or
9
her powers under section 146, 147 or 148 to:
10
(a) the Chair; or
11
(b) an SES employee, or acting SES employee, in the Agency.
12
Note:
The expressions SES employee and acting SES employee are defined
13
in section 17AA of the Acts Interpretation Act 1901.
14
(4) In exercising powers under a delegation, the delegate must comply
15
with any directions of the Finance Minister.
16
208 Delegation by the Treasure r
17
The Treasurer may, by writing, delegate any or all of his or her
18
functions under subsection 197(2) to:
19
(a) the Secretary of the Treasury Department; or
20
(b) an SES employee, or acting SES employee, in the Treasury
21
Department.
22
Note:
The expressions SES employee and acting SES employee are defined
23
in section 17AA of the Acts Interpretation Act 1901.
24
209 Delegation by the Education Minister
25
(1) The Education Minister may, by writing, delegate any or all of his
26
or her functions or powers under section 178, 179, 185, 186, 187,
27
196 or 198 to:
28
(a) the Secretary of the Education Department; or
29
(b) an SES employee, or acting SES employee, in the Education
30
Department.
31
Education Investment Fund Chapter 3
Miscellaneous Part 3.6
Section 210
Nation-building Funds Bill 2008 No. , 2008 159
Note:
The expressions SES employee and acting SES employee are defined
1
in section 17AA of the Acts Interpretation Act 1901.
2
(2) In exercising powers under a delegation, the delegate must comply
3
with any directions of the Education Minister.
4
210 Delegation by the Research Minister
5
(1) The Research Minister may, by writing, delegate any or all of his
6
or her functions or powers under section 180, 192 or 193 to:
7
(a) the Secretary of the Research Department; or
8
(b) an SES employee, or acting SES employee, in the Research
9
Department.
10
Note:
The expressions SES employee and acting SES employee are defined
11
in section 17AA of the Acts Interpretation Act 1901.
12
(2) In exercising powers under a delegation, the delegate must comply
13
with any directions of the Research Minister.
14
15
Chapter 4 Health and Hospitals Fund
Part 4.1 Introduction
Section 211
160 Nation-building Funds Bill 2008 No. , 2008
1
Chapter 4--Health and Hospitals Fund
2
Part 4.1--Introduction
3
4
211 Object
5
The object of this Chapter is to enhance the Commonwealth's
6
ability to make payments in relation to the creation or development
7
of health infrastructure.
8
212 Simplified outline
9
The following is a simplified outline of this Chapter:
10
·
This Chapter sets up the Health and Hospitals Fund, which
11
consists of:
12
(a) the Health and Hospitals Fund Special Account;
13
and
14
(b) the investments of the Health and Hospitals Fund.
15
·
The main purpose of the Health and Hospitals Fund Special
16
Account is to make payments in relation to the creation or
17
development of health infrastructure.
18
·
The Finance Minister is responsible for authorising payments
19
on the recommendation of the Health Minister.
20
·
If a payment is made by way of a grant of financial assistance,
21
the terms and conditions on which the financial assistance is
22
granted are to be set out in a written agreement between the
23
Commonwealth and the recipient.
24
·
The Future Fund Board is responsible for deciding how to
25
invest the Health and Hospitals Fund.
26
Health and Hospitals Fund Chapter 4
Introduction Part 4.1
Section 212
Nation-building Funds Bill 2008 No. , 2008 161
·
Investments of the Health and Hospitals Fund will consist of
1
financial assets.
2
·
The Future Fund Board is bound by a Health and Hospitals
3
Fund Investment Mandate given to it by the responsible
4
Ministers.
5
Note:
The Future Fund Act 2006 provides that the Future Fund Management
6
Agency is responsible for assisting and advising the Future Fund
7
Board.
8
9
Chapter 4 Health and Hospitals Fund
Part 4.2 Health and Hospitals Fund
Division 1 Introduction
Section 213
162 Nation-building Funds Bill 2008 No. , 2008
1
Part 4.2--Health and Hospitals Fund
2
Division 1--Introduction
3
213 Simplified outline
4
The following is a simplified outline of this Part:
5
·
This Part sets up the Health and Hospitals Fund.
6
·
The Health and Hospitals Fund consists of:
7
(a) the Health and Hospitals Fund Special Account;
8
and
9
(b) the investments of the Health and Hospitals Fund.
10
·
One or more initial amounts are to be credited to the Health
11
and Hospitals Fund Special Account by 30 June 2009. The
12
total of the initial amounts must equal $5 billion.
13
·
The responsible Ministers may determine that additional
14
amounts are to be credited to the Health and Hospitals Fund
15
Special Account.
16
·
Amounts may be debited from the Health and Hospitals Fund
17
Special Account in accordance with the purposes of the Health
18
and Hospitals Fund Special Account.
19
·
The main purpose of the Health and Hospitals Fund Special
20
Account is to make payments in relation to the creation or
21
development of health infrastructure.
22
23
Health and Hospitals Fund Chapter 4
Health and Hospitals Fund Part 4.2
Establishment of the Health and Hospitals Fund etc. Division 2
Section 214
Nation-building Funds Bill 2008 No. , 2008 163
1
Division 2--Establishment of the Health and Hospitals
2
Fund etc.
3
214 Establishme nt of the Health and Hospitals Fund
4
(1) The Health and Hospitals Fund is established by this section.
5
(2) The Health and Hospitals Fund consists of:
6
(a) the Health and Hospitals Fund Special Account; and
7
(b) the investments of the Health and Hospitals Fund.
8
215 Establishme nt of the Health and Hospitals Fund Special
9
Account
10
(1) The Health and Hospitals Fund Special Account is established by
11
this section.
12
(2) The Health and Hospitals Fund Special Account is a Special
13
Account for the purposes of the Financial Management and
14
Accountability Act 1997.
15
Note:
An Appropriation Act may contain a provision to the effect that, if any
16
of the purposes of a Special Account is a purpose that is covered by an
17
item in the Appropriation Act (whether or not the item expressly refers
18
to the Special Account), then amounts may be debited against the
19
appropriation for that item and credited to that Special Account.
20
21
Chapter 4 Health and Hospitals Fund
Part 4.2 Health and Hospitals Fund
Division 3 Credits of amounts to the Health and Hospitals Fund
Section 216
164 Nation-building Funds Bill 2008 No. , 2008
1
Division 3--Credits of amounts to the Health and Hospitals
2
Fund
3
216 Initial credits of amounts to the Health and Hospitals Fund
4
Special Account
5
(1) The responsible Ministers may, by writing, determine that:
6
(a) a specified amount is to be credited to the Health and
7
Hospitals Fund Special Account on a specified day; or
8
(b) a specified amount is to be credited to the Health and
9
Hospitals Fund Special Account in specified instalments on
10
specified days.
11
(2) The responsible Ministers must ensure that, by the end of 30 June
12
2009, the total of the amounts credited to the Health and Hospitals
13
Fund Special Account under subsection (1) equals $5 billion.
14
(3) The responsible Ministers must not make a determination under
15
subsection (1) after 30 June 2009.
16
(4) A determination under subsection (1) is irrevocable.
17
(5) A determination under subsection (1) is a legislative instrument,
18
but section 42 (disallowance) of the Legislative Instruments Act
19
2003 does not apply to the determination.
20
217 Subsequent credits of amounts to the Health and Hospitals Fund
21
Special Account--determinations by the responsible
22
Ministers
23
(1) The responsible Ministers may, by writing, determine that:
24
(a) a specified amount is to be credited to the Health and
25
Hospitals Fund Special Account on a specified day; or
26
(b) a specified amount is to be credited to the Health and
27
Hospitals Fund Special Account in specified instalments on
28
specified days.
29
Note:
For variation and revocation, see subsection 33(3) of the Acts
30
Interpretation Act 1901.
31
Health and Hospitals Fund Chapter 4
Health and Hospitals Fund Part 4.2
Cred its of amounts to the Health and Hospitals Fund Division 3
Section 217
Nation-building Funds Bill 2008 No. , 2008 165
(2) In making a determination under subsection (1), the responsible
1
Ministers must have regard to the object of this Chapter.
2
(3) A determination under subsection (1) is a legislative instrument,
3
but section 42 (disallowance) of the Legislative Instruments Act
4
2003 does not apply to the determination.
5
6
Chapter 4 Health and Hospitals Fund
Part 4.2 Health and Hospitals Fund
Division 4 Debits of amounts from the Health and Hospitals Fund
Section 218
166 Nation-building Funds Bill 2008 No. , 2008
1
Division 4--Debits of amounts from the Health and
2
Hospitals Fund
3
218 Purposes of the Health and Hospitals Fund Special Account--
4
payments purposes and purposes related exclusively to
5
the Health and Hospitals Fund
6
(1) Each of the following is a purpose of the Health and Hospitals
7
Fund Special Account:
8
(a) making payments in relation to the creation or development
9
of health infrastructure, so long as the payments are
10
authorised under subsection 251(1);
11
(b) paying the costs of, or incidental to, the acquisition of
12
financial assets under section 227;
13
(c) paying expenses of an investment of the Health and Hospitals
14
Fund;
15
(d) paying the costs of, or incidental to, the acquisition of
16
derivatives under section 236;
17
(e) paying or discharging the costs, expenses and other
18
obligations incurred by the Future Fund Board under a
19
contract between the Future Fund Board and an investment
20
manager engaged under subsection 239(1);
21
(f) paying or discharging the costs, expenses and other
22
obligations incurred in connection with the establishment,
23
maintenance or operation of a bank account of the Future
24
Fund Board, where the bank account relates exclusively to
25
the Health and Hospitals Fund;
26
(g) paying a premium in respect of a contract of insurance
27
entered into by the Future Fund Board exclusively in
28
connection with the Health and Hospitals Fund;
29
(h) paying or discharging any other costs, expenses, obligations
30
or liabilities incurred by the Future Fund Board exclusively
31
in connection with the Health and Hospitals Fund.
32
Note:
See section 21 of the Financial Management and Accountability Act
33
1997 (debits from Special Accounts).
34
(2) A payment under paragraph (1)(a) may be made:
35
Health and Hospitals Fund Chapter 4
Health and Hospitals Fund Part 4.2
Debits of amounts from the Health and Hospitals Fund Division 4
Section 219
Nation-building Funds Bill 2008 No. , 2008 167
(a) by way of a grant of financial assistance; or
1
(b) otherwise than by way of a grant of financial assistance.
2
Note 1:
Section 257 deals with the channelling of payments through the HHF
3
Health Portfolio Special Account.
4
Note 2:
Section 262 deals with channelling of State/Territory grants payments
5
through the COAG Reform Fund.
6
219 Purposes of the Health and Hospitals Fund Special Account--
7
purposes not related exclusively to the Health and
8
Hospitals Fund
9
Each of the following is a purpose of the Health and Hospitals
10
Fund Special Account:
11
(a) paying or discharging the costs, expenses and other
12
obligations incurred in connection with the establishment,
13
maintenance or operation of a bank account of the Future
14
Fund Board, where those costs, expenses or obligations are
15
not covered by:
16
(i) paragraph 18(1)(j); or
17
(ii) paragraph 136(1)(j); or
18
(iii) paragraph 137(e); or
19
(iv) paragraph 218(1)(f); or
20
(v) paragraph 2(1)(g) of Schedule 2 to the Future Fund Act
21
2006;
22
(b) paying a premium in respect of a contract of insurance
23
entered into by the Future Fund Board, where the premium is
24
not covered by:
25
(i) paragraph 18(1)(k); or
26
(ii) paragraph 136(1)(k); or
27
(iii) paragraph 137(f); or
28
(iv) paragraph 218(1)(g); or
29
(v) paragraph 2(1)(h) of Schedule 2 to the Future Fund Act
30
2006;
31
(c) paying or discharging any other costs, expenses, obligations
32
or liabilities incurred by the Future Fund Board, where the
33
costs, expenses, obligations or liabilities are not covered by:
34
(i) a paragraph of subsection 18(1); or
35
Chapter 4 Health and Hospitals Fund
Part 4.2 Health and Hospitals Fund
Division 4 Debits of amounts from the Health and Hospitals Fund
Section 220
168 Nation-building Funds Bill 2008 No. , 2008
(ii) a paragraph of subsection 136(1); or
1
(iii) a paragraph of section 137; or
2
(iv) a paragraph of subsection 218(1); or
3
(v) a paragraph of subclause 2(1) of Schedule 2 to the
4
Future Fund Act 2006;
5
(d) paying remuneration and allowances of Future Fund Board
6
members;
7
(e) paying remuneration, and other employment-related costs
8
and expenses, in respect of members of the staff of the
9
Agency;
10
(f) paying or discharging the costs, expenses and other
11
obligations incurred by the Commonwealth under a contract
12
entered into under section 78 or 82 of the Future Fund Act
13
2006;
14
(g) paying or discharging the costs, expenses and other
15
obligations incurred by the Commonwealth in connection
16
with the operation of the Agency.
17
Note:
See section 21 of the Financial Management and Accountability Act
18
1997 (debits from Special Accounts).
19
220 Extended meaning of payment in relation to the creation or
20
development of health infrastructure
21
For the purposes of this Act, each of the following payments is
22
taken to be a payment in relation to the creation or development
23
of health infrastructure:
24
(a) a payment in relation to the acquisition of shares in a
25
company that is, or will be, involved in the creation or
26
development of health infrastructure;
27
(b) a payment in relation to the acquisition of debentures of a
28
company that is, or will be, involved in the creation or
29
development of health infrastructure;
30
(c) a payment in relation to the acquisition of units in a unit trust
31
that is, or will be, involved in the creation or development of
32
health infrastructure;
33
(d) a payment in relation to the acquisition of any other financial
34
asset in a business entity that is, or will be, involved in the
35
creation or development of health infrastructure;
36
Health and Hospitals Fund Chapter 4
Health and Hospitals Fund Part 4.2
Debits of amounts from the Health and Hospitals Fund Division 4
Section 221
Nation-building Funds Bill 2008 No. , 2008 169
(e) a payment in relation to a matter incidental or ancillary to a
1
matter set out in paragraph (a), (b), (c) or (d).
2
Note:
See section 274.
3
221 Future Fund Board must ensure that there is sufficient money
4
in the Health and Hospitals Fund Special Account to
5
cover authorised payme nts etc.
6
The Future Fund Board must take all reasonable steps to ensure
7
that the amount of money standing to the credit of the Health and
8
Hospitals Fund Special Account is sufficient to cover:
9
(a) the debit of amounts for payments authorised, or proposed to
10
be authorised, under subsection 251(1); and
11
(b) amounts debited, or proposed to be debited, under subsection
12
257(1); and
13
(c) amounts debited, or proposed to be debited, under subsection
14
262(1).
15
Note:
This may require the Future Fund Board to realise an investment of
16
the Health and Hospitals Fund in accordance with section 228.
17
18
Chapter 4 Health and Hospitals Fund
Part 4.2 Health and Hospitals Fund
Division 5 Inter-fund transfers
Section 222
170 Nation-building Funds Bill 2008 No. , 2008
1
Division 5--Inter-fund transfers
2
222 Transfers from the Health and Hospitals Fund to the Future
3
Fund
4
(1) If an amount is debited from the Future Fund Special Account for a
5
purpose mentioned in subclause 2(2) of Schedule 2 to the Future
6
Fund Act 2006, the Finance Minister may, by writing, direct that a
7
specified amount is to be:
8
(a) debited from the Health and Hospitals Fund Special Account;
9
and
10
(b) credited to the Future Fund Special Account;
11
on a specified day.
12
(2) The specified amount must not exceed the amount debited from the
13
Future Fund Special Account as mentioned in subsection (1).
14
(3) A direction under subsection (1) is not a legislative instrument.
15
223 Transfers from the Health and Hospitals Fund to the Building
16
Australia Fund
17
(1) If an amount is debited from the Building Australia Fund Special
18
Account for a purpose mentioned in section 20, the Finance
19
Minister may, by writing, direct that a specified amount is to be:
20
(a) debited from the Health and Hospitals Fund Special Account;
21
and
22
(b) credited to the Building Australia Fund Special Account;
23
on a specified day.
24
(2) The specified amount must not exceed the amount debited from the
25
Building Australia Fund Special Account as mentioned in
26
subsection (1).
27
(3) A direction under subsection (1) is not a legislative instrument.
28
Health and Hospitals Fund Chapter 4
Health and Hospitals Fund Part 4.2
Inter-fund transfers Division 5
Section 224
Nation-building Funds Bill 2008 No. , 2008 171
224 Transfers from the Health and Hospitals Fund to the Education
1
Investment Fund
2
(1) If an amount is debited from the Education Investment Fund
3
Special Account for a purpose mentioned in section 138, the
4
Finance Minister may, by writing, direct that a specified amount is
5
to be:
6
(a) debited from the Health and Hospitals Fund Special Account;
7
and
8
(b) credited to the Education Investment Fund Special Account;
9
on a specified day.
10
(2) The specified amount must not exceed the amount debited from the
11
Education Investment Fund Special Account as mentioned in
12
subsection (1).
13
(3) A direction under subsection (1) is not a legislative instrument.
14
15
Chapter 4 Health and Hospitals Fund
Part 4.3 Investment of the Health and Hospitals Fund
Section 225
172 Nation-building Funds Bill 2008 No. , 2008
1
Part 4.3--Investment of the Health and Hospitals
2
Fund
3
4
225 Simplified outline
5
The following is a simplified outline of this Part:
6
·
The Future Fund Board is responsible for deciding how to
7
invest the Health and Hospitals Fund.
8
·
Investments of the Health and Hospitals Fund will consist of
9
financial assets.
10
·
Investments of the Health and Hospitals Fund will be held in
11
the name of the Future Fund Board.
12
·
The Future Fund Board is bound by a Health and Hospitals
13
Fund Investment Mandate given to it by the responsible
14
Ministers.
15
226 Objects of investment of the Health and Hospitals Fund
16
(1) The main object of the acquisition by the Future Fund Board of a
17
financial asset as an investment of the Health and Hospitals Fund is
18
to enhance the Commonwealth's ability to make payments in
19
relation to the creation or development of health infrastructure.
20
(2) The ancillary objects of the acquisition by the Future Fund Board
21
of a financial asset as an investment of the Health and Hospitals
22
Fund are to enhance the ability of the Commonwealth and the
23
Future Fund Board to:
24
(a) discharge costs, expenses, obligations and liabilities; and
25
(b) make payments;
26
as mentioned in paragraphs 218(1)(b) to (h) and 219(a) to (g).
27
Health and Hospitals Fund Chapter 4
Investment of the Health and Hospitals Fund Part 4.3
Section 227
Nation-building Funds Bill 2008 No. , 2008 173
227 Investment of the Health and Hospitals Fund
1
(1) The Future Fund Board may invest amounts standing to the credit
2
of the Health and Hospitals Fund Special Account in any financial
3
assets.
4
(2) Investments under subsection (1) are to be made in the name of the
5
Future Fund Board.
6
(3) Investments under subsection (1) are taken to be investments of the
7
Health and Hospitals Fund.
8
(4) This section does not authorise the acquisition of a derivative.
9
Note:
For acquisition of derivatives, see section 236.
10
228 Management of investments of the Health and Hospitals Fund
11
(1) Income derived from an investment of the Health and Hospitals
12
Fund is to be credited to the Health and Hospitals Fund Special
13
Account.
14
(2) A return of capital, or any other financial distribution, relating to
15
an investment of the Health and Hospitals Fund is to be credited to
16
the Health and Hospitals Fund Special Account.
17
(3) The Future Fund Board may realise an investment of the Health
18
and Hospitals Fund.
19
(4) Upon realisation of an investment of the Health and Hospitals
20
Fund, the proceeds of the investment are to be credited to the
21
Health and Hospitals Fund Special Account.
22
(5) At any time before an investment of the Health and Hospitals Fund
23
matures, the Future Fund Board may authorise the re-investment of
24
the proceeds upon maturity in a financial asset investment with the
25
same entity. The new investment is taken to be an investment of
26
the Health and Hospitals Fund.
27
(6) Section 39 of the Financial Management and Accountability Act
28
1997 does not apply to an investment of the Health and Hospitals
29
Fund.
30
Chapter 4 Health and Hospitals Fund
Part 4.3 Investment of the Health and Hospitals Fund
Section 229
174 Nation-building Funds Bill 2008 No. , 2008
229 Health and Hospitals Fund Investment Mandate
1
(1) The responsible Ministers may give the Future Fund Board written
2
directions about the performance of its Health and Hospitals Fund
3
investment functions, and must give at least one such direction.
4
Note 1:
Health and Hospitals Fund investment function is defined in
5
section 4.
6
Note 2:
For variation and revocation, see subsection 33(3) of the Acts
7
Interpretation Act 1901.
8
(2) Subsection (1) has effect subject to section 230.
9
(3) In giving a direction under subsection (1), the responsible
10
Ministers must have regard to:
11
(a) maximising the return earned on the Health and Hospitals
12
Fund, consistent with international best practice for
13
institutional investment; and
14
(b) enhancing the Commonwealth's ability to make payments in
15
relation to the creation or development of health
16
infrastructure; and
17
(c) such other matters as the responsible Ministers consider
18
relevant.
19
(4) Directions under subsection (1) are to be known collectively as the
20
Health and Hospitals Fund Investment Mandate.
21
(5) A direction under subsection (1) may set out the policies to be
22
pursued by the Future Fund Board in relation to:
23
(a) matters of risk and return; and
24
(b) the allocation of financial assets.
25
A policy relating to the allocation of financial assets must not be
26
inconsistent with a policy relating to matters of risk and return.
27
(6) Subsection (5) does not limit subsection (1).
28
(7) Subsection (5) has effect subject to section 230.
29
(8) The Health and Hospitals Fund Investment Mandate prevails over
30
subsection (12) to the extent of any inconsistency.
31
Health and Hospitals Fund Chapter 4
Investment of the Health and Hospitals Fund Part 4.3
Section 230
Nation-building Funds Bill 2008 No. , 2008 175
(9) The responsible Ministers must not give a direction under
1
subsection (1) that is inconsistent with this Act (other than
2
subsection (12)).
3
(10) A direction under subsection (1) must not take effect before the
4
15th day after the day on which it is given.
5
(11) A direction under subsection (1) is a legislative instrument.
6
Note 1:
Section 42 (disallowance) of the Legislative Instruments Act 2003
7
does not apply to the direction--see section 44 of that Act.
8
Note 2:
Part 6 (sunsetting) of the Legislative Instruments Act 2003 does not
9
apply to the direction--see section 54 of that Act.
10
(12) In the performance of its Health and Hospitals Fund investment
11
functions, the Future Fund Board must seek to:
12
(a) maximise the return earned on the Health and Hospitals
13
Fund, consistent with international best practice for
14
institutional investment; and
15
(b) enhance the Commonwealth's ability to make payments in
16
relation to the creation or development of health
17
infrastructure.
18
Note:
Health and Hospitals Fund investment function is defined in
19
section 4.
20
(13) Subsection (12) has effect subject to:
21
(a) this Act; and
22
(b) a direction under subsection (1).
23
230 Limitation on Health and Hospitals Fund Investment Mandate
24
(1) The responsible Ministers must not give a direction under
25
subsection 229(1) that has the purpose, or has or is likely to have
26
the effect, of directly or indirectly requiring the Future Fund Board
27
to:
28
(a) invest an amount standing to the credit of the Health and
29
Hospitals Fund Special Account in a particular financial
30
asset; or
31
(b) acquire a particular derivative; or
32
(c) allocate financial assets to:
33
(i) a particular business entity; or
34
Chapter 4 Health and Hospitals Fund
Part 4.3 Investment of the Health and Hospitals Fund
Section 231
176 Nation-building Funds Bill 2008 No. , 2008
(ii) a particular activity; or
1
(iii) a particular business.
2
(2) Paragraphs (1)(a) and (b) do not limit paragraph (1)(c).
3
231 Future Fund Board to be consulted on Health and Hospitals
4
Fund Investment Mandate
5
(1) Before giving the Future Fund Board a direction under subsection
6
229(1), the responsible Ministers must:
7
(a) send a draft of the direction to the Future Fund Board; and
8
(b) invite the Future Fund Board to make a submission to the
9
responsible Ministers on the draft direction within a time
10
limit specified by the responsible Ministers; and
11
(c) consider any submission that is received from the Future
12
Fund Board within that time limit.
13
(2) If:
14
(a) the responsible Ministers give the Future Fund Board a
15
direction under subsection 229(1); and
16
(b) the Future Fund Board made a submission to the responsible
17
Ministers on a draft of the direction within the time limit
18
specified by the responsible Ministers;
19
the submission is to be tabled in each House of the Parliament with
20
the direction.
21
Note:
For tabling of the direction, see section 38 of the Legislative
22
Instruments Act 2003.
23
(3) A time limit specified under this section must be reasonable.
24
232 Compliance with Health and Hospitals Fund Investment
25
Mandate
26
(1) The Future Fund Board must take all reasonable steps to comply
27
with the Health and Hospitals Fund Investment Mandate.
28
(2) As soon as practicable after the Future Fund Board becomes aware
29
that it has failed to comply with the Health and Hospitals Fund
30
Investment Mandate, the Future Fund Board must give the
31
responsible Ministers a written statement:
32
Health and Hospitals Fund Chapter 4
Investment of the Health and Hospitals Fund Part 4.3
Section 233
Nation-building Funds Bill 2008 No. , 2008 177
(a) informing the responsible Ministers of the failure to comply
1
with the Health and Hospitals Fund Investment Mandate; and
2
(b) setting out the action that the Future Fund Board proposes to
3
take in order to comply with the Health and Hospitals Fund
4
Investment Mandate.
5
(3) If the responsible Ministers are satisfied that the Future Fund
6
Board has failed to comply with the Health and Hospitals Fund
7
Investment Mandate, the responsible Ministers may, by written
8
notice given to the Future Fund Board, direct the Future Fund
9
Board:
10
(a) to give the responsible Ministers, within a period specified in
11
the notice, a written explanation for the failure to comply
12
with the Health and Hospitals Fund Investment Mandate; and
13
(b) to take action specified in the notice, within a period
14
specified in the notice, in order to comply with the Health
15
and Hospitals Fund Investment Mandate.
16
(4) The Future Fund Board must comply with a direction under
17
subsection (3).
18
(5) A failure to comply with:
19
(a) the Health and Hospitals Fund Investment Mandate; or
20
(b) a direction under subsection (3);
21
does not affect the validity of any transaction.
22
(6) A direction under subsection (3) is not a legislative instrument.
23
233 Future Fund Board must not trigger the takeover provisions of
24
the Corporations Act 2001
25
(1) Subsections 606(1A) and (2A) and section 611 of the Corporations
26
Act 2001 do not apply to an acquisition by the Future Fund Board
27
if the acquisition is the result of the performance by the Future
28
Fund Board of its Health and Hospitals Fund investment functions.
29
(2) A failure by the Future Fund Board to comply with section 606 of
30
the Corporations Act 2001 (as modified by this section) does not
31
affect the validity of any transaction.
32
Chapter 4 Health and Hospitals Fund
Part 4.3 Investment of the Health and Hospitals Fund
Section 234
178 Nation-building Funds Bill 2008 No. , 2008
Note:
See also section 39 of the Future Fund Act 2006 (application of the
1
Corporations Act 2001).
2
234 Borrowing
3
(1) The Future Fund Board must not borrow money for a purpose in
4
connection with the Health and Hospitals Fund unless the
5
borrowing is authorised by subsection (2) or (3).
6
(2) The Future Fund Board is authorised to borrow money for a
7
purpose in connection with the Health and Hospitals Fund if:
8
(a) the purpose of the borrowing is to enable the Future Fund
9
Board to cover settlement of a transaction for the acquisition
10
of one or more financial assets; and
11
(b) at the time the relevant acquisition decision was made, it was
12
likely that the borrowing would not be needed; and
13
(c) the period of the borrowing does not exceed 7 days; and
14
(d) if the borrowing were to take place, the total amount
15
borrowed by the Future Fund Board would not exceed 10%
16
of the balance of the Health and Hospitals Fund.
17
(3) The Future Fund Board is authorised to borrow money for a
18
purpose in connection with the Health and Hospitals Fund if the
19
borrowing takes place in such circumstances (if any) as are
20
specified in the regulations.
21
235 Health and Hospitals Fund investment policies
22
(1) The Future Fund Board must formulate written policies to be
23
complied with by it in relation to the following matters in
24
connection with the Health and Hospitals Fund:
25
(a) the investment strategy for the Health and Hospitals Fund;
26
(b) benchmarks and standards for assessing the performance of
27
the Health and Hospitals Fund;
28
(c) risk management for the Health and Hospitals Fund;
29
(d) a matter relating to international best practice for institutional
30
investment;
31
(e) a matter specified in the regulations.
32
Note:
For variation and revocation, see subsection 33(3) of the Acts
33
Interpretation Act 1901.
34
Health and Hospitals Fund Chapter 4
Investment of the Health and Hospitals Fund Part 4.3
Section 236
Nation-building Funds Bill 2008 No. , 2008 179
(2) The Future Fund Board must ensure that policies formulated under
1
subsection (1) are consistent with the Health and Hospitals Fund
2
Investment Mandate.
3
Publication of policies
4
(3) The Future Fund Board must cause copies of policies formulated
5
under subsection (1) to be published on the internet.
6
(4) The Future Fund Board must ensure that the first set of policies
7
formulated under subsection (1) is published on the internet as
8
soon as practicable after the commencement of this section.
9
Review of policies
10
(5) The Future Fund Board must conduct periodic reviews of policies
11
formulated under subsection (1).
12
(6) If there is a change in the Health and Hospitals Fund Investment
13
Mandate, the Future Fund Board must review any relevant policies
14
formulated under subsection (1).
15
Compliance with policies
16
(7) The Future Fund Board must take all reasonable steps to comply
17
with policies formulated under subsection (1).
18
(8) A failure to comply with a policy formulated under subsection (1)
19
does not affect the validity of any transaction.
20
Policies
21
(9) A policy formulated under subsection (1) is not a legislative
22
instrument.
23
236 Derivatives
24
(1) The Future Fund Board may acquire a derivative for the purpose
25
of:
26
(a) protecting the value of an investment of the Health and
27
Hospitals Fund (other than a derivative); or
28
Chapter 4 Health and Hospitals Fund
Part 4.3 Investment of the Health and Hospitals Fund
Section 237
180 Nation-building Funds Bill 2008 No. , 2008
(b) protecting the return on an investment of the Health and
1
Hospitals Fund (other than a derivative); or
2
(c) achieving indirect exposure to financial assets (other than
3
derivatives) for a purpose in connection with the Health and
4
Hospitals Fund; or
5
(d) achieving transactional efficiency for a purpose in connection
6
with the Health and Hospitals Fund;
7
but must not acquire a derivative for the purpose of:
8
(e) speculation; or
9
(f) leverage.
10
(2) The acquisition of a derivative under subsection (1) must be
11
consistent with the investment strategy embodied in a policy
12
formulated by the Future Fund Board under subsection 235(1).
13
(3) A derivative acquired under subsection (1) is to be held in the
14
name of the Future Fund Board.
15
(4) A derivative acquired under subsection (1) is taken to be an
16
investment of the Health and Hospitals Fund.
17
237 Additional financial assets
18
If, as a result of:
19
(a) the Future Fund Board's holding of an investment of the
20
Health and Hospitals Fund; or
21
(b) the exercise of any rights or powers conferred on the Future
22
Fund Board in its capacity as the holder of an investment of
23
the Health and Hospitals Fund;
24
the Future Fund Board becomes the holder of a financial asset, that
25
financial asset is taken to be an investment of the Health and
26
Hospitals Fund.
27
238 Securities lending arrangements
28
(1) The Future Fund Board may enter into securities lending
29
arrangements for a purpose in connection with the Health and
30
Hospitals Fund.
31
Health and Hospitals Fund Chapter 4
Investment of the Health and Hospitals Fund Part 4.3
Section 239
Nation-building Funds Bill 2008 No. , 2008 181
(2) Any money received by the Future Fund Board under a securities
1
lending arrangement entered into under subsection (1) is to be
2
credited to the Health and Hospitals Fund Special Account.
3
(3) To avoid doubt, a securities lending arrangement entered into
4
under subsection (1) may provide for the Future Fund Board to
5
realise an investment of the Health and Hospitals Fund.
6
(4) If, as the result of the operation of a securities lending arrangement
7
entered into under subsection (1), the Future Fund Board becomes
8
the holder of a financial asset, that financial asset is taken to be an
9
investment of the Health and Hospitals Fund.
10
239 Investment managers
11
(1) The Future Fund Board may engage one or more investment
12
managers for purposes in connection with the Health and Hospitals
13
Fund.
14
(2) The Future Fund Board must not:
15
(a) invest amounts under subsection 227(1); or
16
(b) acquire derivatives under subsection 236(1); or
17
(c) enter into a securities lending arrangement under subsection
18
238(1); or
19
(d) realise financial assets that are investments of the Health and
20
Hospitals Fund;
21
unless the Future Fund Board does so:
22
(e) through an investment manager engaged by the Future Fund
23
Board under subsection (1) of this section; or
24
(f) in a manner approved, in writing, by the responsible
25
Ministers.
26
(3) The Future Fund Board must ensure that any investment manager
27
engaged by the Future Fund Board under subsection (1) operates
28
within this Act.
29
(4) The Future Fund Board must ensure that any investment manager
30
engaged by the Future Fund Board under subsection (1) reports to:
31
(a) the Future Fund Board; and
32
(b) the Agency;
33
Chapter 4 Health and Hospitals Fund
Part 4.3 Investment of the Health and Hospitals Fund
Section 240
182 Nation-building Funds Bill 2008 No. , 2008
on the state of the investments of the Health and Hospitals Fund at
1
such times and in such manner as the Future Fund Board
2
determines.
3
240 Custody of securities
4
Section 40 of the Financial Management and Accountability Act
5
1997 does not apply to an investment of the Health and Hospitals
6
Fund.
7
241 Refund of franking credits
8
If:
9
(a) the Future Fund Board receives a refund of a tax offset under
10
the Income Tax Assessment Act 1997; and
11
(b) the tax offset is attributable to an investment of the Health
12
and Hospitals Fund;
13
the refund is to be credited to the Health and Hospitals Fund
14
Special Account.
15
Note 1:
See also section 84B of the Future Fund Act 2006.
16
Note 2:
For refunds of tax offsets, see Division 63 of the Income Tax
17
Assessment Act 1997.
18
242 Realisation of non-financial assets
19
(1) If an asset held by the Future Fund Board as an investment of the
20
Health and Hospitals Fund ceases to be a financial asset:
21
(a) the Future Fund Board must realise the asset as soon as
22
practicable after the Future Fund Board becomes aware of the
23
cessation; and
24
(b) this Act (other than this section) applies in relation to the
25
asset (including in relation to the realisation of the asset) as if
26
the asset had remained a financial asset, and an investment of
27
the Health and Hospitals Fund, until the realisation.
28
(2) If an asset acquired by the Future Fund Board, purportedly as an
29
investment of the Health and Hospitals Fund, is not a financial
30
asset:
31
Health and Hospitals Fund Chapter 4
Investment of the Health and Hospitals Fund Part 4.3
Section 243
Nation-building Funds Bill 2008 No. , 2008 183
(a) the Future Fund Board must realise the asset as soon as
1
practicable after the Future Fund Board becomes aware that
2
the asset is not a financial asset; and
3
(b) this Act (other than this section) applies in relation to the
4
asset (including in relation to the realisation of the asset) as if
5
the asset had been a financial asset, and an investment of the
6
Health and Hospitals Fund, from the time of its acquisition
7
by the Future Fund Board until the realisation.
8
243 Additional function of the Future Fund Board
9
The functions of the Future Fund Board include the function of
10
investing amounts in accordance with this Chapter.
11
12
Chapter 4 Health and Hospitals Fund
Part 4.4 Pay ments
Division 1 Introduction
Section 244
184 Nation-building Funds Bill 2008 No. , 2008
1
Part 4.4--Payments
2
Division 1--Introduction
3
244 Simplified outline
4
The following is a simplified outline of this Part:
5
·
The Health and Hospitals Fund Advisory Board is established.
6
·
The function of the Health and Hospitals Fund Advisory
7
Board is to advise the Health Minister about the making of
8
payments in relation to the creation or development of health
9
infrastructure.
10
·
The Finance Minister may authorise payments in relation to
11
the creation or development of health infrastructure on the
12
recommendation of the Health Minister.
13
·
If a payment is made by way of a grant of financial assistance,
14
the terms and conditions on which the financial assistance is
15
granted are to be set out in a written agreement between the
16
Commonwealth and the recipient.
17
·
Payments may be channelled through the HHF Health
18
Portfolio Special Account.
19
·
Grants of financial assistance to the States and Territories may
20
be channelled through the COAG Reform Fund.
21
·
The Finance Minister must comply with general drawing
22
rights limits.
23
·
The total amount of payments made in each financial year will
24
depend on the macroeconomic circumstances.
25
26
Health and Hospitals Fund Chapter 4
Payments Part 4.4
Health and Hospitals Fund Advisory Board Division 2
Section 245
Nation-building Funds Bill 2008 No. , 2008 185
1
Division 2--Health and Hospitals Fund Advisory Board
2
245 Health and Hospitals Fund Advisory Board
3
(1) The Health and Hospitals Fund Advisory Board is established.
4
(2) The HHF Advisory Board consists of such persons as the Health
5
Minister from time to time appoints, by writing, to the HHF
6
Advisory Board.
7
Note:
HHF Advisory Board means the Health and Hospitals Fund Advisory
8
Board--see section 4.
9
(3) A member of the HHF Advisory Board holds office for the period
10
specified in the instrument of appointment. The period must not
11
exceed 3 years.
12
Note:
For re-appointment, see subsection 33(4A) of the Acts Interpretation
13
Act 1901.
14
(4) A person is not eligible for appointment to the HHF Advisory
15
Board unless the Health Minister is satisfied that the person has
16
substantial experience or knowledge in a field relevant to the HHF
17
Advisory Board's function.
18
(5) The Health Minister may terminate a person's appointment to the
19
HHF Advisory Board.
20
(6) The Health Minister may give the HHF Advisory Board written
21
directions as to:
22
(a) the way in which the HHF Advisory Board is to carry out its
23
functions; and
24
(b) procedures to be followed in relation to meetings.
25
(7) A direction under subsection (6) is not a legislative instrument.
26
246 Functions of the HHF Advisory Board
27
(1) The functions of the HHF Advisory Board are:
28
(a) to advise the Health Minister about matters that:
29
(i) are referred to it by the Health Minister; and
30
Chapter 4 Health and Hospitals Fund
Part 4.4 Pay ments
Division 2 Health and Hospitals Fund Advisory Board
Section 247
186 Nation-building Funds Bill 2008 No. , 2008
(ii) relate to the making of payments in relation to the
1
creation or development of health infrastructure; and
2
(b) to advise the Health Minister about matters that:
3
(i) are referred to it by the Health Minister; and
4
(ii) relate to the object or operation of this Chapter; and
5
(iii) do not relate to the making of particular payments.
6
(2) In giving advice under paragraph (1)(a), the HHF Advisory Board
7
must apply the HHF evaluation criteria.
8
247 HHF evaluation criteria
9
(1) The Health Minister may, by legislative instrument, formulate
10
criteria (HHF evaluation criteria) to be applied by the HHF
11
Advisory Board in giving advice under paragraph 246(1)(a).
12
(2) Before formulating HHF evaluation criteria, the Health Minister
13
must consult the responsible Ministers.
14
(3) The Health Minister must ensure that HHF evaluation criteria are
15
in force at all times after the commencement of this section.
16
248 Remuneration and allowances
17
(1) A member of the HHF Advisory Board is to be paid the
18
remuneration that is determined by the Remuneration Tribunal. If
19
no determination of that remuneration by the Tribunal is in
20
operation, the member is to be paid the remuneration that is
21
determined by the Health Minister.
22
(2) A member of the HHF Advisory Board is to be paid the allowances
23
that are prescribed.
24
(3) This section has effect subject to the Remuneration Tribunal Act
25
1973.
26
249 Disclosure of interests
27
(1) This section applies to a member of the HHF Advisory Board who
28
has a material personal interest in a matter being considered, or
29
about to be considered, by the HHF Advisory Board.
30
Health and Hospitals Fund Chapter 4
Payments Part 4.4
Health and Hospitals Fund Advisory Board Division 2
Section 250
Nation-building Funds Bill 2008 No. , 2008 187
(2) The member must, as soon possible after the relevant facts have
1
come to the member's knowledge:
2
(a) disclose the nature of the interest at a meeting of the HHF
3
Advisory Board; and
4
(b) disclose the nature of the interest to the Health Minister.
5
(3) A disclosure under paragraph (2)(a) must be recorded in the
6
minutes of the meeting.
7
(4) The Health Minister must terminate the appointment of a member
8
of the HHF Advisory Board if the member fails, without
9
reasonable excuse, to comply with subsection (2).
10
(5) Subsection (4) does not limit subsection 245(5).
11
250 Resignation
12
(1) A member of the HHF Advisory Board may resign his or her
13
appointment by giving the Health Minister a written resignation.
14
(2) The resignation takes effect on the day it is received by the Health
15
Minister or, if a later day is specified in the resignation, on that
16
later day.
17
18
Chapter 4 Health and Hospitals Fund
Part 4.4 Pay ments
Division 3 Direct pay ments
Section 251
188 Nation-building Funds Bill 2008 No. , 2008
1
Division 3--Direct payments
2
251 Authorisation of payme nts
3
(1) The Finance Minister may, by writing, authorise a payment in
4
relation to the creation or development of health infrastructure.
5
(2) 2 or more authorisations under subsection (1) may be set out in the
6
same document.
7
(3) An instrument under subsection (1) is not a legislative instrument.
8
252 Recommendations about payme nts
9
(1) The Finance Minister must not authorise a payment under
10
subsection 251(1) unless the Health Minister has recommended the
11
authorisation of the payment.
12
(2) The Health Minister must not make a recommendation under
13
subsection (1) in relation to a payment unless the HHF Advisory
14
Board has advised under paragraph 246(1)(a) that the payment
15
satisfies the HHF evaluation criteria.
16
(3) In deciding whether to make a recommendation under
17
subsection (1) in relation to a payment, the Health Minister must
18
have regard to:
19
(a) advice about the payment that was given to the Health
20
Minister by the HHF Advisory Board under paragraph
21
246(1)(a); and
22
(b) such other matters (if any) as the Health Minister considers
23
relevant.
24
253 Grant to a State or Territory
25
Scope
26
(1) This section applies if:
27
Health and Hospitals Fund Chapter 4
Payments Part 4.4
Direct payments Division 3
Section 254
Nation-building Funds Bill 2008 No. , 2008 189
(a) an amount is to be debited from the Health and Hospitals
1
Fund Special Account for the purpose of making a payment
2
to a State or Territory; and
3
(b) the payment is by way of a grant of financial assistance; and
4
(c) the payment is for the purpose mentioned in paragraph
5
218(1)(a).
6
Terms and conditions
7
(2) The terms and conditions on which that financial assistance is
8
granted are to be set out in a written agreement between the
9
Commonwealth and the State or Territory.
10
(3) An agreement under subsection (2) may be entered into by the
11
Health Minister on behalf of the Commonwealth.
12
254 Grant to a person other than a State or Te rritory
13
Scope
14
(1) This section applies if:
15
(a) an amount is to be debited from the Health and Hospitals
16
Fund Special Account for the purpose of making a payment
17
to a person other than a State or Territory; and
18
(b) the payment is by way of a grant of financial assistance; and
19
(c) the payment is for the purpose mentioned in paragraph
20
218(1)(a).
21
Terms and conditions
22
(2) The terms and conditions on which that financial assistance is
23
granted are to be set out in a written agreement between the
24
Commonwealth and the person.
25
(3) An agreement under subsection (2) may be entered into by the
26
Health Minister on behalf of the Commonwealth.
27
28
Chapter 4 Health and Hospitals Fund
Part 4.4 Pay ments
Division 4 Channelling of pay ments through the HHF Health Portfolio Special Account
Section 255
190 Nation-building Funds Bill 2008 No. , 2008
1
Division 4--Channelling of payments through the HHF
2
Health Portfolio Special Account
3
255 Establishme nt of the HHF Health Portfolio Special Account
4
(1) The HHF Health Portfolio Special Account is established by this
5
section.
6
(2) The HHF Health Portfolio Special Account is a Special Account
7
for the purposes of the Financial Management and Accountability
8
Act 1997.
9
256 Purpose of the HHF Health Portfolio Special Account
10
(1) The purpose of the HHF Health Portfolio Special Account is
11
making payments in relation to the creation or development of
12
health infrastructure, so long as the payments are specified under
13
subsection 257(2).
14
Note:
See section 21 of the Financial Management and Accountability Act
15
1997 (debits from Special Accounts).
16
(2) A payment under subsection (1) may be made:
17
(a) by way of a grant of financial assistance; or
18
(b) otherwise than by way of a grant of financial assistance.
19
257 Channelling of payments through the HHF Health Portfolio
20
Special Account
21
(1) The Finance Minister may, by writing, direct that a specified
22
amount is to be:
23
(a) debited from the Health and Hospitals Fund Special Account;
24
and
25
(b) credited to the HHF Health Portfolio Special Account;
26
on a specified day.
27
(2) The direction must be expressed to be given in order to enable the
28
specified amount to be debited from the HHF Health Portfolio
29
Health and Hospitals Fund Chapter 4
Payments Part 4.4
Channelling of pay ments through the HHF Health Portfolio Special Account Division 4
Section 258
Nation-building Funds Bill 2008 No. , 2008 191
Special Account for the purpose of making a specified payment in
1
relation to the creation or development of health infrastructure.
2
(3) 2 or more directions under subsection (1) may be set out in the
3
same document.
4
(4) A direction under subsection (1) is not a legislative instrument.
5
(5) The Finance Minister must give a copy of a direction under
6
subsection (1) to the Health Minister.
7
258 Recommendations about payme nts
8
(1) A payment must not be specified under subsection 257(2) unless
9
the Health Minister has recommended the specification of the
10
payment.
11
(2) The Health Minister must not make a recommendation under
12
subsection (1) in relation to a payment unless the HHF Advisory
13
Board has advised under paragraph 246(1)(a) that the payment
14
satisfies the HHF evaluation criteria.
15
(3) In deciding whether to make a recommendation under
16
subsection (1) in relation to a payment, the Health Minister must
17
have regard to:
18
(a) advice about the payment that was given to the Health
19
Minister by the HHF Advisory Board under paragraph
20
246(1)(a); and
21
(b) such other matters (if any) as the Health Minister considers
22
relevant.
23
259 Payments--debit from the HHF Health Portfolio Special
24
Account
25
Scope
26
(1) This section applies if:
27
(a) the Finance Minister gives a direction under subsection
28
257(1) for a purpose in relation to a payment; and
29
(b) the amount specified in the direction is credited to the HHF
30
Health Portfolio Special Account.
31
Chapter 4 Health and Hospitals Fund
Part 4.4 Pay ments
Division 4 Channelling of pay ments through the HHF Health Portfolio Special Account
Section 260
192 Nation-building Funds Bill 2008 No. , 2008
Debit from the HHF Health Portfolio Special Account
1
(2) The Health Minister must ensure that, as soon as practicable after
2
the amount is credited, the HHF Health Portfolio Special Account
3
is debited for the purposes of making the payment.
4
(3) However, if the payment cannot be made, an amount equal to the
5
credited amount is to be:
6
(a) debited from the HHF Health Portfolio Special Account; and
7
(b) credited to the Health and Hospitals Fund Special Account.
8
260 Grant to a State or Territory
9
Scope
10
(1) This section applies if an amount is to be debited from the HHF
11
Health Portfolio Special Account for the purpose of making a grant
12
of financial assistance to a State or Territory.
13
Terms and conditions
14
(2) The terms and conditions on which that financial assistance is
15
granted are to be set out in a written agreement between the
16
Commonwealth and the State or Territory.
17
(3) An agreement under subsection (2) may be entered into by the
18
Health Minister on behalf of the Commonwealth.
19
261 Grant to a person other than a State or Te rritory
20
Scope
21
(1) This section applies if:
22
(a) an amount is to be debited from the HHF Health Portfolio
23
Special Account for the purpose of making a payment to a
24
person other than a State or Territory; and
25
(b) the payment is by way of a grant of financial assistance.
26
Health and Hospitals Fund Chapter 4
Payments Part 4.4
Channelling of pay ments through the HHF Health Portfolio Special Account Division 4
Section 261
Nation-building Funds Bill 2008 No. , 2008 193
Terms and conditions
1
(2) The terms and conditions on which that financial assistance is
2
granted are to be set out in a written agreement between the
3
Commonwealth and the person.
4
(3) An agreement under subsection (2) may be entered into by the
5
Health Minister on behalf of the Commonwealth.
6
7
Chapter 4 Health and Hospitals Fund
Part 4.4 Pay ments
Division 5 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 262
194 Nation-building Funds Bill 2008 No. , 2008
1
Division 5--Channelling of State/Territory grants
2
payments through the COAG Reform Fund
3
262 Channelling of State/Territory grants payme nts through the
4
COAG Reform Fund
5
(1) The Finance Minister may, by writing, direct that a specified
6
amount is to be:
7
(a) debited from the Health and Hospitals Fund Special Account;
8
and
9
(b) credited to the HHF Health Portfolio Special Account;
10
on a specified day.
11
(2) The direction must be expressed to be given in order to enable the
12
specified amount to be:
13
(a) transferred from the HHF Health Portfolio Special Account
14
to the COAG Reform Fund; and
15
(b) debited from the COAG Reform Fund for the purpose of
16
making a specified grant of financial assistance to a State or
17
Territory.
18
(3) A grant specified under subsection (2) must be a grant of financial
19
assistance in relation to health infrastructure.
20
(4) 2 or more directions under subsection (1) may be set out in the
21
same document.
22
(5) A direction under subsection (1) is not a legislative instrument.
23
(6) The Finance Minister must give a copy of a direction under
24
subsection (1) to the Treasurer and the Health Minister.
25
263 Recommendations about grants payments
26
(1) A grant must not be specified under subsection 262(2) unless the
27
Health Minister has recommended the specification of the grant.
28
(2) The Health Minister must not make a recommendation under
29
subsection (1) in relation to a grant unless the HHF Advisory
30
Health and Hospitals Fund Chapter 4
Payments Part 4.4
Channelling of State/Territory grants payments through the COA G Reform Fund
Division 5
Section 264
Nation-building Funds Bill 2008 No. , 2008 195
Board has advised under paragraph 246(1)(a) that the grant
1
satisfies the HHF evaluation criteria.
2
(3) In deciding whether to make a recommendation under
3
subsection (1) in relation to a grant, the Health Minister must have
4
regard to:
5
(a) advice about the grant that was given to the Health Minister
6
by the HHF Advisory Board under paragraph 246(1)(a); and
7
(b) such other matters (if any) as the Health Minister considers
8
relevant.
9
264 Transfers from the HHF Health Portfolio Special Account to the
10
COAG Reform Fund
11
Scope
12
(1) This section applies if:
13
(a) the Finance Minister gives a direction under subsection
14
262(1) for a purpose in relation to a grant of financial
15
assistance to a State or Territory; and
16
(b) the amount specified in the direction is credited to the HHF
17
Health Portfolio Special Account.
18
Transfer direction
19
(2) As soon as practicable after the amount is credited, the Health
20
Minister must, by writing, direct that the amount is to be:
21
(a) debited from the HHF Health Portfolio Special Account; and
22
(b) credited to the COAG Reform Fund;
23
on a specified day.
24
(3) The direction must be expressed to be given in order to enable the
25
amount to be debited from the COAG Reform Fund for the
26
purpose of making the grant.
27
(4) 2 or more directions under subsection (2) may be set out in the
28
same document.
29
(5) A direction under subsection (2) is not a legislative instrument.
30
Chapter 4 Health and Hospitals Fund
Part 4.4 Pay ments
Division 5 Channelling of State/Territory grants payments through the COA G Refo rm
Fund
Section 265
196 Nation-building Funds Bill 2008 No. , 2008
(6) The Health Minister must give a copy of a direction under
1
subsection (2) to the Treasurer.
2
265 Grants payments--debit from the COAG Reform Fund
3
Scope
4
(1) This section applies if:
5
(a) the Health Minister gives a direction under subsection 264(2)
6
for a purpose in relation to a grant of financial assistance to a
7
State or Territory; and
8
(b) the amount specified in the direction is credited to the COAG
9
Reform Fund.
10
Debit from the COAG Reform Fund
11
(2) The Treasurer must ensure that, as soon as practicable after the
12
amount is credited, the COAG Reform Fund is debited for the
13
purposes of making the grant.
14
266 Grant to a State or Territory
15
Scope
16
(1) This section applies if:
17
(a) an amount is to be debited from the COAG Reform Fund for
18
the purpose of making a grant of financial assistance to a
19
State or Territory; and
20
(b) the grant is covered by subsection 265(2).
21
Note:
Subsection 265(2) deals with grants channelled through the COAG
22
Reform Fund.
23
Terms and conditions
24
(2) The terms and conditions on which that financial assistance is
25
granted are to be set out in a written agreement between the
26
Commonwealth and the State or Territory.
27
(3) An agreement under subsection (2) may be entered into by the
28
Health Minister on behalf of the Commonwealth.
29
30
Health and Hospitals Fund Chapter 4
Payments Part 4.4
Total payments for a financial year Division 6
Section 267
Nation-building Funds Bill 2008 No. , 2008 197
1
Division 6--Total payments for a financial year
2
267 General drawing rights limit in relation to a financial year
3
Scope
4
(1) This section applies to a financial year if:
5
(a) in the case of the financial year ending on 30 June 2009--the
6
Finance Minister declares in writing that a specified amount
7
is the general drawing rights limit in relation to the financial
8
year for the purposes of this section; or
9
(b) in the case of a later financial year--an Appropriation Act
10
relating to the financial year declares that a specified amount
11
is the general drawing rights limit in relation to the financial
12
year for the purposes of this section.
13
Issue of drawing rights
14
(2) The total amount covered by drawing rights authorising the
15
following debits in the financial year:
16
(a) the debit of an amount from the Health and Hospitals Fund
17
Special Account for the purpose mentioned in paragraph
18
218(1)(a);
19
(b) the debit of an amount from the HHF Health Portfolio
20
Special Account (other than a debit under section 264);
21
(c) the debit of an amount from the COAG Reform Fund in
22
accordance with subsection 265(2);
23
must not exceed the general drawing rights limit for the financial
24
year.
25
Declaration
26
(3) A declaration under paragraph (1)(a) is a legislative instrument, but
27
section 42 (disallowance) of the Legislative Instruments Act 2003
28
does not apply to the declaration.
29
Chapter 4 Health and Hospitals Fund
Part 4.4 Pay ments
Division 6 Total pay ments for a financial year
Section 268
198 Nation-building Funds Bill 2008 No. , 2008
268 Drawing rights in relation to other financial years
1
The application of section 267 to a particular financial year does
2
not limit the drawing rights that may be issued in relation to any
3
other financial year.
4
269 No drawing rights to be issued if there is no general drawing
5
rights limit in relation to a financial year
6
Scope
7
(1) This section applies to a financial year if:
8
(a) in the case of the financial year ending on 30 June 2009--no
9
declaration is in force under paragraph 267(1)(a); or
10
(b) in the case of a later financial year--no Appropriation Act
11
relating to the financial year declares that a specified amount
12
is the general drawing rights limit in relation to the financial
13
year for the purposes of section 267.
14
No drawing rights to be issued
15
(2) Drawing rights authorising any of the following debits in the
16
financial year must not be issued:
17
(a) the debit of an amount from the Health and Hospitals Fund
18
Special Account for the purpose mentioned in paragraph
19
218(1)(a);
20
(b) the debit of an amount from the HHF Health Portfolio
21
Special Account (other than a debit under section 264);
22
(c) the debit of an amount from the COAG Reform Fund in
23
accordance with subsection 265(2).
24
270 Total payme nts to depend primarily on the macroeconomic
25
circumstances
26
Scope
27
(1) This section applies to the following decisions:
28
(a) a decision to authorise a payment under section 251, where
29
the authorisation will result in a debit from the Health and
30
Hospitals Fund Special Account in a financial year;
31
Health and Hospitals Fund Chapter 4
Payments Part 4.4
Total payments for a financial year Division 6
Section 270
Nation-building Funds Bill 2008 No. , 2008 199
(b) a decision to give a direction under subsection 257(1), where
1
the direction will result in a debit from the HHF Health
2
Portfolio Special Account in a financial year in accordance
3
with subsection 259(2);
4
(c) a decision to give a direction under subsection 262(1), where
5
the direction will result in a debit from the COAG Reform
6
Fund in a financial year in accordance with subsection
7
265(2).
8
Macroeconomic circumstances
9
(2) In making the decision, the Finance Minister must have regard to
10
the principle that the total of the following debits in the financial
11
year:
12
(a) the debit of an amount from the Health and Hospitals Fund
13
Special Account for the purpose mentioned in paragraph
14
218(1)(a);
15
(b) the debit of an amount from the HHF Health Portfolio
16
Special Account (other than a debit under section 264);
17
(c) the debit of an amount from the COAG Reform Fund in
18
accordance with subsection 265(2);
19
should depend primarily on the macroeconomic circumstances.
20
21
Chapter 4 Health and Hospitals Fund
Part 4.5 Reporting obligations etc.
Section 271
200 Nation-building Funds Bill 2008 No. , 2008
1
Part 4.5--Reporting obligations etc.
2
3
271 Finance Minister may require Future Fund Board to prepare
4
reports or give information
5
Reports
6
(1) The Finance Minister may, by written notice given to the Future
7
Fund Board, require the Future Fund Board to:
8
(a) prepare a report about one or more specified matters relating
9
to the performance of the Future Fund Board's functions
10
under this Chapter; and
11
(b) give copies of the report to the Finance Minister within the
12
period specified in the notice.
13
Information
14
(2) The Finance Minister may, by written notice given to the Future
15
Fund Board, require the Future Fund Board to:
16
(a) prepare a document setting out specified information relating
17
to the performance of the Future Fund Board's functions
18
under this Chapter; and
19
(b) give copies of the document to the Finance Minister within
20
the period specified in the notice.
21
Compliance
22
(3) The Future Fund Board must comply with a requirement under
23
subsection (1) or (2).
24
Publication of reports and documents
25
(4) The Finance Minister may cause to be published (whether on the
26
internet or otherwise):
27
(a) a report under subsection (1); or
28
(b) a document under subsection (2).
29
Health and Hospitals Fund Chapter 4
Reporting obligations etc. Part 4.5
Section 272
Nation-building Funds Bill 2008 No. , 2008 201
Reports and documents
1
(5) A report under subsection (1) is not a legislative instrument.
2
(6) A document under subsection (2) is not a legislative instrument.
3
272 Keeping the responsible Ministers informe d etc.
4
(1) The Future Fund Board must keep the responsible Ministers
5
informed of the operations of the Future Fund Board under this
6
Chapter.
7
(2) The Future Fund Board must give the Finance Minister such
8
reports, documents and information in relation to those operations
9
as are appropriate.
10
273 Finance Minister may give reports to other Ministers etc.
11
The Finance Minister may give:
12
(a) the Treasurer; or
13
(b) the Health Minister;
14
any of the following:
15
(c) a report under subsection 271(1) or 272(2); or
16
(d) a document under subsection 271(2) or 272(2); or
17
(e) any other information or document obtained by the Finance
18
Minister under this Chapter.
19
20
Chapter 4 Health and Hospitals Fund
Part 4.6 Miscellaneous
Section 274
202 Nation-building Funds Bill 2008 No. , 2008
1
Part 4.6--Miscellaneous
2
3
274 Investment provisions do not apply to certain assets
4
Scope
5
(1) This section applies to an asset if:
6
(a) the asset is:
7
(i) a share; or
8
(ii) a debenture; or
9
(iii) a unit in a unit trust; or
10
(iv) any other financial asset; and
11
(b) the asset is held by the Commonwealth; and
12
(c) the asset was acquired:
13
(i) using money debited from the Health and Hospitals
14
Fund Special Account for the purpose mentioned in
15
paragraph 218(1)(a); or
16
(ii) using money debited from the HHF Health Portfolio
17
Special Account.
18
Investment provisions do not apply
19
(2) Part 4.3 does not apply in relation to the asset.
20
(3) Section 39 of the Financial Management and Accountability Act
21
1997 does not apply in relation to the asset.
22
275 Delegation by the Finance Minister
23
Department
24
(1) The Finance Minister may, by writing, delegate any or all of his or
25
her powers under section 222, 223, 224, 251, 257 or 262 to:
26
(a) the Secretary of the Finance Department; or
27
(b) an SES employee, or acting SES employee, in the Finance
28
Department.
29
Health and Hospitals Fund Chapter 4
Miscellaneous Part 4.6
Section 276
Nation-building Funds Bill 2008 No. , 2008 203
Note:
The expressions SES employee and acting SES employee are defined
1
in section 17AA of the Acts Interpretation Act 1901.
2
(2) In exercising powers under a delegation, the delegate must comply
3
with any directions of the Finance Minister.
4
Agency
5
(3) The Finance Minister may, by writing, delegate any or all of his or
6
her powers under section 222, 223 or 224 to:
7
(a) the Chair; or
8
(b) an SES employee, or acting SES employee, in the Agency.
9
Note:
The expressions SES employee and acting SES employee are defined
10
in section 17AA of the Acts Interpretation Act 1901.
11
(4) In exercising powers under a delegation, the delegate must comply
12
with any directions of the Finance Minister.
13
276 Delegation by the Treasure r
14
The Treasurer may, by writing, delegate any or all of his or her
15
functions under subsection 265(2) to:
16
(a) the Secretary of the Treasury Department; or
17
(b) an SES employee, or acting SES employee, in the Treasury
18
Department.
19
Note:
The expressions SES employee and acting SES employee are defined
20
in section 17AA of the Acts Interpretation Act 1901.
21
277 Delegation by the Health Minister
22
(1) The Health Minister may, by writing, delegate any or all of his or
23
her functions or powers under section 253, 254, 259, 260, 261, 264
24
or 266 to:
25
(a) the Secretary of the Health Department; or
26
(b) an SES employee, or acting SES employee, in the Health
27
Department.
28
Note:
The expressions SES employee and acting SES employee are defined
29
in section 17AA of the Acts Interpretation Act 1901.
30
(2) In exercising powers under a delegation, the delegate must comply
31
with any directions of the Health Minister.
32
33
Chapter 5 Regulations
Section 278
204 Nation-building Funds Bill 2008 No. , 2008
1
Chapter 5--Regulations
2
3
4
278 Regulations
5
The Governor-General may make regulations prescribing matters:
6
(a) required or permitted by this Act to be prescribed; or
7
(b) necessary or convenient to be prescribed for carrying out or
8
giving effect to this Act.
9