Commonwealth Consolidated Acts

FUTURE FUND ACT 2006 - NOTES

No. 12, 2006

Compilation No. 18

Compilation date: 1 November 2023

Includes amendments up to: Act No. 81, 2023

Registered: 27 November 2023

About this compilation

This compilation

This is a compilation of the Future Fund Act 2006 that shows the text of the law as amended and in force on 1 November 2023 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self-repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1--Introduction

1 Short title

2 Commencement

3 Object

4 Simplified outline

5 Definitions

6 Financial assets

7 Crown to be bound

8 Extension to external Territories

9 Extra-territorial application

Part 2--The Future Fund

10 Simplified outline

11 Establishment of the Future Fund

12 Establishment of the Future Fund Special Account

13 Operation of the Future Fund

Part 3--Investment of the Future Fund

14 Simplified outline

15 Objects of investment of the Fund

16 Investment of the Fund

17 Management of investments of the Fund

18 Future Fund Investment Mandate

18A Limitation on Future Fund Investment Mandate

19 Board to be consulted on Future Fund Investment Mandate

20 Compliance with Future Fund Investment Mandate

21 Board must not trigger the takeover provisions of the Corporations Act 2001

23 Borrowing

24 Investment policies

25 Derivatives

26 Additional financial assets

27 Securities lending arrangements

28 Investment managers

30 Refund of franking credits

32 Realisation of non-financial assets

Part 4--The Future Fund Board of Guardians

Division 1--Introduction

33 Simplified outline

Division 2--Establishment and functions of the Future Fund Board of Guardians

34 Establishment of the Future Fund Board of Guardians

35 Board's functions

36 Board's ordinary powers

37 Board is a body corporate

38 Membership

39 Application of the Corporations Act 2001

Division 3--Terms and conditions for Board members

40 Term of appointment and related matters for Board members

41 Remuneration and allowances of Board members

42 Leave of absence of Board members

43 Resignation of Board members

44 Termination of appointment of Board members

45 Other terms and conditions of Board members

46 Acting Board members

Division 4--Meetings

47 Holding of meetings

48 Who is to preside at a meeting

49 Quorum

50 Voting

51 Records of meetings

Division 5--Resolutions without meetings

52 Resolutions without meetings

53 Record of resolutions

Division 6--Reporting obligations

54 Nominated Minister may require Board to prepare reports or give information

55 Keeping the responsible Ministers informed etc.

Division 6A--Periodic investment reports

55A Periodic investment reports

55B Reporting rules

55C Board to be consulted on reporting rules

Division 7--Duties of Board members etc.

Subdivision A--Civil obligations and criminal offences

56 Care and diligence--civil obligation

57 Good faith--civil obligation

58 Use of position--civil obligation

59 Use of information--civil obligation

60 Good faith--criminal offence

61 Use of position--criminal offence

62 Use of information--criminal offence

Subdivision B--Other provisions relating to civil penalty provisions and criminal offences

63 Compliance with statutory duties

64 Interaction of sections 56 to 62 with other laws etc.

65 Reliance on information or advice provided by others

66 Finance Minister requiring person to assist

67 Insurance for certain liabilities of Board members

Subdivision C--Consequences of breach of duty

67A Consequences of breach of duty--civil penalty provisions

67B Compensation orders

67C Disqualification order for contravention of civil penalty provision by Board members

67D Exception to disqualification order

67E Relief from liability for contravention of civil penalty provision etc.

Division 8--Conflict of interests

68 Material personal interest--Board member's duty to disclose

69 Board member may give other Board members standing notice about an interest

70 Interaction of sections 68 and 69 with other laws etc.

71 Restrictions on voting

72 Ministerial power to make declarations and class orders

Part 5--The Future Fund Management Agency

Division 1--Introduction

73 Simplified outline

Division 2--Establishment and functions of the Future Fund Management Agency

74 Establishment of the Future Fund Management Agency

75 Functions of the Agency

Division 3--Management and staff of the Future Fund Management Agency

76 Duties of the Chair

77 Staff of the Agency

78 Consultants and persons seconded to the Agency

79 Chair not subject to direction by the Board on certain matters

Division 4--Other provisions

80 Application of the Public Governance, Performance and Accountability Act 2013

81 Annual report

82 Consultants and advisers to the Board

Part 6--Miscellaneous

83 Nominated Minister

83A Delegation by the nominated Minister

83B Delegation by the Board

84 Miscellaneous receipts to be credited to the Fund Account

84A Exemption from taxation

84B Franking credits

84C Board must not have a significant stake in a foreign listed company

85 Regulations

Schedule 1--Credits of amounts, and transfers of financial assets, to the Future Fund

Part 1--Introduction

1 Simplified outline

Part 2--Credits of amounts to the Future Fund

2 Credit of $18 billion to the Fund Account

3 Credit of additional amounts to the Fund Account--Ministerial determinations

4 Duration of subclause 3(1) determinations

5 Credit of amounts to the Fund Account--gifts

Part 3--Transfers of financial assets to the Future Fund

6 Transfers to the Fund--Commonwealth-owned financial assets

7 Transfers of financial assets to the Fund--gifts

8 Ministerial directions about transferred financial assets

9 Continuing effect of instruments relating to transferred financial assets

Schedule 2--Debits of amounts from the Future Fund

1 Simplified outline

2 Purposes of the Fund Account

3 Board must ensure that there is sufficient money to cover the main purposes of the Fund Account

Schedule 2A--Inter-fund transfers

1 Simplified outline

1A Transfers from the Future Fund to the Future Drought Fund

5 Transfers from the Future Fund to the DisabilityCare Australia Fund

5A Transfers from the Future Fund to the Disaster Ready Fund

5B Transfers from the Future Fund to the Housing Australia Future Fund

6 Transfers from the Future Fund to the Medical Research Future Fund

7 Transfers from the Future Fund to the Aboriginal and Torres Strait Islander Land and Sea Future Fund

Schedule 3--Target asset level declarations

1 Simplified outline

2 Designated actuary

3 Target asset level declarations

4 Reliance on projections when making target asset level declarations etc.

Endnotes

Endnote 1--About the endnotes

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history

Endnotes

Endnote 1--About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1--About the endnotes

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history

Abbreviation key--Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history--Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section  15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and "(md not incorp)" is added to the amendment history.

Endnote 2--Abbreviation key

 

ad = added or inserted	o = order(s)
am = amended	Ord = Ordinance
amdt = amendment	orig = original
c = clause(s)	par = paragraph(s)/subparagraph(s)
C[x] = Compilation No. x	/sub-subparagraph(s)
Ch = Chapter(s)	pres = present
def = definition(s)	prev = previous
Dict = Dictionary	(prev ... ) = previously
disallowed = disallowed by Parliament	Pt = Part(s)
Div = Division(s)	r = regulation(s)/rule(s)
ed = editorial change	reloc = relocated
exp = expires/expired or ceases/ceased to have	renum = renumbered
effect	rep = repealed
F = Federal Register of Legislation	rs = repealed and substituted
gaz = gazette	s = section(s)/subsection(s)
LA = Legislation Act 2003	Sch = Schedule(s)
LIA = Legislative Instruments Act 2003	Sdiv = Subdivision(s)
(md) = misdescribed amendment can be given	SLI = Select Legislative Instrument
effect	SR = Statutory Rules
(md not incorp) = misdescribed amendment	Sub-Ch = Sub-Chapter(s)
cannot be given effect	SubPt = Subpart(s)
mod = modified/modification	underlining = whole or part not
No. = Number(s)	commenced or to be commenced

Endnote 3--Legislation history

 

Act	Number and year	Assent	Commencement	Application, saving and transitional provisions
Future Fund Act 2006	12, 2006	23 Mar 2006	s 1 and 2: 23 Mar 2006 (s 2(1) item 1) Remainder: 3 Apr 2006 (s 2(1) items 2, 3)
Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006	101, 2006	14 Sept 2006	Sch 2 (item 113) and Sch 6 (items 1, 6-11): 14 Sept 2006 (s 2(1) items  2, 4)	Sch 6 (items 1, 6-11)
Higher Education Endowment Fund (Consequential Amendments) Act 2007	161, 2007	24 Sept 2007	Sch 1: 25 Sept 2007 (s 2(1) item 2)	Sch 1 (items 78-85)
Nation-building Funds (Consequential Amendments) Act 2008	155, 2008	18 Dec 2008	Sch 2 (items 1-44) and Sch 3 (item 7): 1 Jan 2009 (s  2(1) item 2)	Sch 3 (item 7)
Statute Law Revision Act 2010	8, 2010	1 Mar 2010	Sch 5 (item 137(a)): 1 Mar 2010 (s 2(1) items 31, 38)	--
Acts Interpretation Amendment Act 2011	46, 2011	27 June 2011	Sch 2 (items 643-649) and Sch 3 (items 10, 11): 27 Dec 2011 (s 2(1) items  5, 12)	Sch 3 (items 10, 11)
DisabilityCare Australia Fund (Consequential Amendments) Act 2013	86, 2013	28 June 2013	Sch 1 (items 4-33): 1 July 2014 (s 2(1) item 2)	--
Public Governance, Performance and Accountability (Consequential and Transitional Provisions) Act 2014	62, 2014	30 June 2014	Sch 6 (item 45), Sch 9 (items 92-118) and Sch 14: 1 July 2014 (s 2(1) items  6, 14)	Sch 14
as amended by
Public Governance and Resources Legislation Amendment Act (No. 1) 2015	36, 2015	13 Apr 2015	Sch 2 (items 7-9) and Sch 7: 14 Apr 2015 (s 2)	Sch 7
as amended by
Acts and Instruments (Framework Reform) (Consequential Provisions) Act 2015	126, 2015	10 Sept 2015	Sch 1 (item 486): 5 Mar 2016 (s 2(1) item 2)	--
Acts and Instruments (Framework Reform) (Consequential Provisions) Act 2015	126, 2015	10 Sept 2015	Sch 1 (item 495): 5 Mar 2016 (s 2(1) item 2)	--
Public Governance and Resources Legislation Amendment Act (No. 1) 2015	36, 2015	14 Apr 2015	Sch 6 (items 10-21) and Sch 7: 14 Apr 2015 (s 2)	Sch 6 (item 21) and Sch 7
as amended by
Acts and Instruments (Framework Reform) (Consequential Provisions) Act 2015	126, 2015	10 Sept 2015	Sch 1 (item 486): 5 Mar 2016 (s 2(1) item 2)	--
Medical Research Future Fund (Consequential Amendments) Act 2015	117, 2015	26 Aug 2015	Sch 1 (items 7-31): 27 Aug 2015 (s 2(1) item 2) Sch 2 (items 8-19): 29 Oct 2015 (s 2(1) item 3)	--
Defence Legislation Amendment (Superannuation and ADF Cover) Act 2015	120, 2015	10 Sept 2015	Sch 1 (item 40): 11 Sept 2015 (s 2(1) item 2)	--
Acts and Instruments (Framework Reform) (Consequential Provisions) Act 2015	126, 2015	10 Sept 2015	Sch 1 (items 231-237): 5 Mar 2016 (s 2(1) item 2)	--
Aboriginal and Torres Strait Islander Land and Sea Future Fund (Consequential Amendments) Act 2018	146, 2018	30 Nov 2018	Sch 1 (items 7-33): 1 Feb 2019 (s 2(1) item 2)	--
Future Drought Fund (Consequential Amendments) Act 2019	56, 2019	30 July 2019	Sch 1 (items 10-33) and Sch 2 (items 11-25, 41-43): 1 Sept 2019 (s 2(1) item 2)	Sch 2 (items 41-43)
Emergency Response Fund (Consequential Amendments) Act 2019	91, 2019	28 Oct 2019	Sch 1 (items 13-36) and Sch 2 (items 14-37, 43-45): 12 Dec 2019 (s 2(1) item 1)	Sch 2 (items 43-45)
Emergency Response Fund Amendment (Disaster Ready Fund) Act 2022	65, 2022	29 Nov 2022	Sch 1 (items 170-205, 210): 1 Mar 2023 (s 2(1) item 2)	Sch 1 (item 210)
Treasury Laws Amendment (Refining and Improving Our Tax System) Act 2023	40, 2023	28 June 2023	Sch 2A: 29 June 2023 (s 2(1) item 3A)	--
Treasury Laws Amendment (Housing Measures No. 1) Act 2023	81, 2023	28 Sept 2023	Sch 4 (items 16-39): 1 Nov 2023 (s 2(1) item 6)	--

Endnote 4--Amendment history

 

Provision affected	How affected
Title....................	am No 161, 2007
Part 1
s 3.....................	am No 161, 2007
s 4.....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
s 5.....................	am No 161, 2007; No 155, 2008; No 46, 2011; No 86, 2013; No 62, 2014; No 36, 2015; No 117, 2015; No  120, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 40, 2023; No 81, 2023
s 6.....................	am No 126, 2015
Part 2
s 12....................	am No 62, 2014
s 13....................	am No 155, 2008; No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
Part 3
s 14....................	am No 161, 2007
s 15....................	am No 161, 2007
s 17....................	am No 62, 2014
s 18....................	am No 161, 2007; No 126, 2015
s 18A...................	ad No 161, 2007
s 19....................	am No 161, 2007; No 126, 2015
s 20....................	am No 161, 2007; No 126, 2015
s 21....................	am No 161, 2007
s 22....................	rep No 161, 2007
s 23....................	am No 161, 2007
s 24....................	am No 161, 2007; No. 8, 2010; No 126, 2015
s 25....................	am No 161, 2007
s 27....................	am No 161, 2007
s 28....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
s 29....................	rep No 62, 2014
s 30....................	rs No 161, 2007
s 31....................	am No 101, 2006
	rep No 161, 2007
Part 4
Division 1
s 33....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
Division 2
s 35....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
s 37....................	am No 62, 2014
s 38....................	am No 46, 2011
Division 3
s 40....................	am No 46, 2011
s 46....................	am No 46, 2011
Division 6
s 54....................	am No 161, 2007; No. 8, 2010; No 126, 2015
s 55....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
Division 6A
Division 6A...............	ad No 40, 2023
s 55A...................	ad No 40, 2023
s 55B...................	ad No 40, 2023
s 55C...................	ad No 40, 2023
Division 7
Subdivision A
Subdivision A heading........	ad No 36, 2015
s 56....................	am No 36, 2015
s 57....................	rs No 36, 2015
s 58....................	rs No 36, 2015
s 59....................	rs No 36, 2015
s 60....................	am No 155, 2008
s 61....................	am No 155, 2008
s 62....................	am No 155, 2008
Subdivision B
Subdivision B heading........	ad No 36, 2015
s 63....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 62, 2014; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
s 65....................	am No 155, 2008
s 66....................	rs No 36, 2015
Subdivision C
Subdivision C..............	ad No 36, 2015
s 67A...................	ad No 36, 2015
s 67B...................	ad No 36, 2015
s 67C...................	ad No 36, 2015
s 67D...................	ad No 36, 2015
s 67E...................	ad No 36, 2015
Division 8
s 72....................	am No 8, 2010; No 126, 2015
Part 5
Division 2
s 74....................	am No 62, 2014
Division 3
s 79....................	am No 62, 2014
Division 4
s 80....................	rs No 62, 2014
s 81....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 62, 2014; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
Part 6
s 83....................	am No 126, 2015
s 83A...................	ad No 155, 2008
	am No. 46, 2011
s 83B...................	ad No 155, 2008
	am No 46, 2011; No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
s 84....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
s 84A...................	ad No 161, 2007
s 84B...................	ad No 161, 2007
s 84C...................	ad No 161, 2007
Schedule 1
Part 2
c 2.....................	am No 126, 2015
c 3.....................	am No 126, 2015
Part 3
c 6.....................	am No 8, 2010; No 126, 2015
c 8.....................	am No 161, 2007; No 8, 2010; No 126, 2015
c 9.....................	am No 126, 2015
Schedule 2
c 2.....................	am No 161, 2007; No 155, 2008; No 86, 2013; No 62, 2014; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
c 3.....................	am No. 161, 2007
Schedule 2A
Schedule 2A..............	ad No 155, 2008
c 1.....................	am No 86, 2013; No 117, 2015; No 146, 2018; No 56, 2019; No 91, 2019; No 65, 2022; No 81, 2023
c 1A....................	ad No 56, 2019
c 2.....................	am No 117, 2015
	rep No 56, 2019
c 3.....................	am No 117, 2015
	rep No 91, 2019
c 4.....................	rep No 117, 2015
c 5.....................	ad No 86, 2013
	am No 117, 2015
c 5A....................	ad No 91, 2019
	am No 65, 2022
c 5B....................	ad No 81, 2023
c 6.....................	ad No 117, 2015
c 7.....................	ad No 146, 2018
Schedule 3
c 2.....................	am No 8, 2010; No 126, 2015
c 3.....................	am No 8, 2010; No 126, 2015