Commonwealth Numbered Acts Commonwealth Numbered Acts
No. 12, 2006
An Act about the Future Fund, and for related purposes
Contents
Part 1—Introduction 1
1............ Short title............................................................................................ 1
2............ Commencement.................................................................................. 2
3............ Object................................................................................................. 2
4............ Simplified outline................................................................................ 3
5............ Definitions.......................................................................................... 3
6............ Financial assets................................................................................... 7
7............ Crown to be bound............................................................................. 8
8............ Extension to external Territories......................................................... 8
9............ Extra‑territorial application................................................................ 8
Part 2—The Future Fund 9
10.......... Simplified outline................................................................................ 9
11.......... Establishment of the Future Fund...................................................... 9
12.......... Establishment of the Future Fund Special Account........................... 9
13.......... Operation of the Future Fund............................................................ 9
Part 3—Investment of the Future Fund 11
14.......... Simplified outline.............................................................................. 11
15.......... Objects of investment of the Fund................................................... 11
16.......... Investment of the Fund.................................................................... 11
17.......... Management of investments of the Fund......................................... 12
18.......... Investment Mandate......................................................................... 12
19.......... Board to be consulted on Investment Mandate................................ 14
20.......... Compliance with Investment Mandate............................................ 14
21.......... Board must not trigger the takeover provisions of the Corporations Act 2001 15
22.......... Board must not have a significant stake in a foreign listed company 16
23.......... Borrowing......................................................................................... 17
24.......... Investment policies........................................................................... 17
25.......... Derivatives........................................................................................ 18
26.......... Additional financial assets................................................................ 19
27.......... Securities lending arrangements........................................................ 19
28.......... Investment managers........................................................................ 19
29.......... Custody of securities........................................................................ 20
30.......... Exemption from taxation.................................................................. 20
31.......... Franking credits................................................................................ 21
32.......... Realisation of non‑financial assets.................................................... 21
Part 4—The Future Fund Board of Guardians 23
Division 1—Introduction 23
33.......... Simplified outline.............................................................................. 23
Division 2—Establishment and functions of the Future Fund Board of Guardians 24
34.......... Establishment of the Future Fund Board of Guardians.................... 24
35.......... Board’s functions............................................................................. 24
36.......... Board’s ordinary powers.................................................................. 24
37.......... Board is a body corporate................................................................ 24
38.......... Membership..................................................................................... 25
39.......... Application of the Corporations Act 2001....................................... 26
Division 3—Terms and conditions for Board members 27
40.......... Term of appointment and related matters for Board members........ 27
41.......... Remuneration and allowances of Board members............................ 27
42.......... Leave of absence of Board members................................................. 27
43.......... Resignation of Board members......................................................... 27
44.......... Termination of appointment of Board members.............................. 28
45.......... Other terms and conditions of Board members................................ 28
46.......... Acting Board members..................................................................... 28
Division 4—Meetings 30
47.......... Holding of meetings.......................................................................... 30
48.......... Who is to preside at a meeting.......................................................... 30
49.......... Quorum............................................................................................. 30
50.......... Voting............................................................................................... 31
51.......... Records of meetings.......................................................................... 31
Division 5—Resolutions without meetings 32
52.......... Resolutions without meetings.......................................................... 32
53.......... Record of resolutions........................................................................ 32
Division 6—Reporting obligations 33
54.......... Nominated Minister may require Board to prepare reports or give information 33
55.......... Keeping the responsible Ministers informed etc.............................. 34
Division 7—Duties of Board members etc. 35
56.......... Care and diligence—civil obligation.................................................. 35
57.......... Good faith—civil obligation............................................................. 35
58.......... Use of position—civil obligation...................................................... 36
59.......... Use of information—civil obligation................................................ 36
60.......... Good faith—criminal offence........................................................... 37
61.......... Use of position—criminal offence.................................................... 37
62.......... Use of information—criminal offence.............................................. 37
63.......... Compliance with statutory duties.................................................... 38
64.......... Interaction of sections 56 to 62 with other laws etc........................ 38
65.......... Reliance on information or advice provided by others..................... 39
66.......... Consequences of breach of duty—additional effect of the Commonwealth Authorities and Companies Act 1997 39
67.......... Insurance for certain liabilities of Board members............................ 40
Division 8—Conflict of interests 42
68.......... Material personal interest—Board member’s duty to disclose........ 42
69.......... Board member may give other Board members standing notice about an interest 43
70.......... Interaction of sections 68 and 69 with other laws etc...................... 44
71.......... Restrictions on voting....................................................................... 44
72.......... Ministerial power to make declarations and class orders................. 45
Part 5—The Future Fund Management Agency 47
Division 1—Introduction 47
73.......... Simplified outline.............................................................................. 47
Division 2—Establishment and functions of the Future Fund Management Agency 48
74.......... Establishment of the Future Fund Management Agency................. 48
75.......... Functions of the Agency.................................................................. 48
Division 3—Management and staff of the Future Fund Management Agency 49
76.......... Duties of the Chair........................................................................... 49
77.......... Staff of the Agency........................................................................... 49
78.......... Consultants and persons seconded to the Agency........................... 49
79.......... Chair not subject to direction by the Board on certain matters........ 50
Division 4—Other provisions 51
80.......... Application of the Financial Management and Accountability Act 1997 51
81.......... Annual report................................................................................... 51
82.......... Consultants and advisers to the Board............................................. 52
Part 6—Miscellaneous 54
83.......... Nominated Minister......................................................................... 54
84.......... Miscellaneous receipts to be credited to the Fund Account............ 54
85.......... Regulations....................................................................................... 54
Schedule 1—Credits of amounts, and transfers of financial assets, to the Future Fund 55
Part 1—Introduction 55
1............ Simplified outline.............................................................................. 55
Part 2—Credits of amounts to the Future Fund 56
2............ Credit of $18 billion to the Fund Account....................................... 56
3............ Credit of additional amounts to the Fund Account—Ministerial determinations 56
4............ Duration of subclause 3(1) determinations....................................... 57
5............ Credit of amounts to the Fund Account—gifts................................ 58
Part 3—Transfers of financial assets to the Future Fund 59
6............ Transfers to the Fund—Commonwealth‑owned financial assets..... 59
7............ Transfers of financial assets to the Fund—gifts............................... 61
8............ Ministerial directions about transferred financial assets.................. 61
9............ Continuing effect of instruments relating to transferred financial assets 62
Schedule 2—Debits of amounts from the Future Fund 63
1............ Simplified outline.............................................................................. 63
2............ Purposes of the Fund Account......................................................... 63
3............ Board must ensure that there is sufficient money to cover the main purposes of the Fund Account 64
Schedule 3—Target asset level declarations 66
1............ Simplified outline.............................................................................. 66
2............ Designated actuary........................................................................... 66
3............ Target asset level declarations.......................................................... 66
4............ Reliance on projections when making target asset level declarations etc. 68
No. 12, 2006
An Act about the Future Fund, and for related purposes
Assented to 23 March 2006
The Parliament of Australia enacts: