Commonwealth Consolidated Regulations

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Designated investment

             (1)  Subject to subregulation (2), the Minister may, by legislative instrument, specify a security issued by an Australian State or Territory government authority as a security in which an investment is a designated investment for the purposes of a Part of Schedule 2.

             (2)  The Minister may so specify a security if and only if:

                     (a)  an investment in the security matures in not less than 4 years from its date of issue; and

                     (b)  repayment of principal is guaranteed by the issuing authority; and

                     (c)  an investment in the security cannot be transferred or redeemed before maturity except by operation of law or under other conditions acceptable to the Minister; and

                     (d)  investment in the security is open to the general public at commercially competitive rates of return; and

                     (e)  the Minister is satisfied that the Commonwealth will not be exposed to any liability as a result of an investment in the security by a person.

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