The following is a simplified outline of this Part:

* This Part sets up the Communications Fund.

* Money in the Fund will be used to finance the implementation of the Commonwealth Government's response to the recommendations of the Regional Telecommunications Independent Review Committee.

* Money in the Fund may be invested in financial assets.

In this Part:

(1)

The Communications Fund is established by this section.

(2)

The Communications Fund consists of:

(a) the Fund Account; and
(b) the investments of the Fund.

(1)

The Communications Fund Special Account is established by this section.

(2)

The Fund Account is a Special Account for the purposes of the Financial Management and Accountability Act 1997 .

(1)

The purposes of the Fund Account are as follows:

(a) the purpose of implementing the Commonwealth Government's response to any of the recommendations set out in a report under section 158Q, so long as the response relates to telecommunications services in regional, rural or remote parts of Australia;
(b) a purpose incidental or ancillary to the above purpose;
(c) the making of grants of financial assistance for either of the above purposes.

Note: Section 158Q deals with reports of reviews by the Regional Telecommunications Independent Review Committee.

(2)

In this section:

(1)

The sum of $2 billion is to be credited to the Fund Account on the first business day after the later of:

(a) the day on which the Telecommunications Legislation Amendment (Future Proofing and Other Measures) Act 2005 receives the Royal Assent; and
(b) the day on which the Telstra (Transition to Full Private Ownership) Act 2005 receives the Royal Assent.

Note: The balance of the Fund may exceed $2 billion as a result of future investment growth.

(2)

However, the sum of $2 billion is not to be credited to the Fund Account if the event mentioned in paragraph (1)(b) does not occur.

(3)

In this section:

(1)

This section applies to a financial asset of the Commonwealth.

(2)

The responsible Ministers may, by writing, determine that:

(a) a specified financial asset; or
(b) each of 2 or more specified financial assets;

is taken to be an investment of the Fund.

(3)

A determination under subsection (2) has effect accordingly.

(4)

A determination under subsection (2) is irrevocable.

(5)

If a determination under subsection (2) about a financial asset or financial assets is in force, this Act does not prevent the realisation of the asset or assets in accordance with section 158ZP.

(6)

A determination under subsection (2) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003 .

(7)

To avoid doubt, a determination under subsection (2) is not a Telstra sale scheme for the purposes of the Telstra Corporation Act 1991 .

(1)

This section applies if:

(a) an amount is to be debited from the Fund Account for the purpose of making a grant of financial assistance to a State; and
(b) the grant is covered by paragraph 158ZI(c).

(2)

The terms and conditions on which that financial assistance is granted are to be set out in a written agreement between the Commonwealth and the State.

(3)

An agreement under subsection (2) may be entered into by the Secretary of the Department on behalf of the Commonwealth.

(1)

This section applies if:

(a) an amount is to be debited from the Fund Account for the purpose of making a grant of financial assistance to a person other than a State; and
(b) the grant is covered by paragraph 158ZI(c).

(2)

The terms and conditions on which that financial assistance is granted are to be set out in a written agreement between the Commonwealth and the person.

(3)

An agreement under subsection (2) may be entered into by the Secretary of the Department on behalf of the Commonwealth.

(1)

The Secretary of the Department may, by writing, delegate to an SES employee, or acting SES employee, in the Department all or any of the powers conferred on the Secretary by this Division.

(2)

The delegate is, in the exercise of the power delegated under subsection (1), subject to the written directions of the Secretary of the Department.

(1)

The responsible Ministers may authorise the investment of money standing to the credit of the Fund Account in any financial asset.

(2)

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

(3)

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

(4)

The Consolidated Revenue Fund is appropriated as necessary for the purposes of this section.

(5)

This section does not authorise the acquisition of a derivative.

Note: For acquisition of derivatives, see section 158ZQ.

(1)

Income derived from an investment of the Fund is to be credited to the Fund Account.

(2)

A return of capital, or any other financial distribution, relating to an investment of the Fund is to be credited to the Fund Account.

(3)

Expenses of an investment of the Fund are to be debited from the Fund Account.

(4)

The responsible Ministers may authorise the realisation of an investment of the Fund.

(5)

Upon realisation of an investment of the Fund, the proceeds of the investment are to be credited to the Fund Account.

(6)

At any time before an investment of the Fund matures, the responsible Ministers may authorise the re-investment of the proceeds upon maturity in an investment with the same entity.

Note: The proceeds of investment of the original investment will not become public money when the investment matures because the proceeds will not be received by or on behalf of the Commonwealth.

(7)

The Consolidated Revenue Fund is appropriated as necessary for the purposes of this section.

(8)

Section 39 of the Financial Management and Accountability Act 1997 does not apply to an investment of the Fund.

(1)

The responsible Ministers may authorise the acquisition of a derivative for the purpose of:

(a) enhancing or protecting the value of an investment of the Fund (other than a derivative); or
(b) enhancing or protecting the return on an investment of the Fund (other than a derivative).

(2)

A derivative acquired under subsection (1) is taken to be an investment of the Fund.

(3)

A derivative acquired under subsection (1) is to be held in the name of the Commonwealth.

(4)

The cost of acquiring a derivative under subsection (1) is to be debited from the Fund Account.

(5)

The Consolidated Revenue Fund is appropriated as necessary for the purposes of this section.

If, as a result of:

(a) the Commonwealth's holding of an investment of the Fund; or
(b) the exercise of any rights or powers conferred on the Commonwealth in its capacity as the holder of an investment of the Fund;

the Commonwealth becomes the holder of a financial asset, that financial asset is taken to be an investment of the Fund.

Insert:

(1)

The Parliament acknowledges the Commonwealth Government's intention to introduce legislation to appropriate $1.1 billion for the Connect Australia package.

Note: The Connect Australia package was announced by the Minister on 17 August 2005.

(2)

The Parliament also acknowledges the Commonwealth Government's intention that the $1.1 billion for the Connect Australia package will be in addition to the Communications Fund.