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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017-2018
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Aboriginal and Torres Strait Islander
Land and Sea Future Fund Bill 2018
No. , 2018
(Indigenous Affairs)
A Bill for an Act to establish the Aboriginal and
Torres Strait Islander Land and Sea Future Fund,
and for other purposes
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
i
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Simplified outline of this Act ............................................................ 2
4
Definitions ......................................................................................... 3
5
Crown to be bound ............................................................................ 7
6
Extension to external Territories ....................................................... 7
7
Extra-territorial application ............................................................... 7
Part 2--Aboriginal and Torres Strait Islander Land and Sea
Future Fund
8
Division 1--Introduction
8
8
Simplified outline of this Part ............................................................ 8
Division 2--Aboriginal and Torres Strait Islander Land and Sea
Future Fund
10
9
Establishment of the Aboriginal and Torres Strait Islander
Land and Sea Future Fund ............................................................... 10
10
Transfer of balance of the Aboriginal and Torres Strait
Islander Land Account..................................................................... 10
11
Transfer of investments of the Aboriginal and Torres Strait
Islander Land Account..................................................................... 10
Division 3--Aboriginal and Torres Strait Islander Land and Sea
Future Fund Special Account
12
12
Establishment of the Aboriginal and Torres Strait Islander
Land and Sea Future Fund Special Account .................................... 12
13
Credits of amounts to the Aboriginal and Torres Strait
Islander Land and Sea Future Fund Special Account ...................... 12
14
Purposes of the Aboriginal and Torres Strait Islander Land
and Sea Future Fund Special Account--main purposes .................. 13
15
Purposes of the Aboriginal and Torres Strait Islander Land
and Sea Future Fund Special Account--purposes related
exclusively to the investments etc. of the Aboriginal and
Torres Strait Islander Land and Sea Future Fund ............................ 13
16
Purposes of the Aboriginal and Torres Strait Islander Land
and Sea Future Fund Special Account--purposes not related
exclusively to the Aboriginal and Torres Strait Islander Land
and Sea Future Fund ........................................................................ 14
ii
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
17
Future Fund Board must ensure that the balance of the
Aboriginal and Torres Strait Islander Land and Sea Future
Fund Special Account is sufficient to cover authorised debits
etc. ................................................................................................... 16
Division 4--Inter-fund transfers
17
18
Transfers from the Aboriginal and Torres Strait Islander
Land and Sea Future Fund to the Future Fund................................. 17
Part 3--Indigenous Land Corporation Funding Special
Account
18
19
Simplified outline of this Part .......................................................... 18
20
Indigenous Land Corporation Funding Special Account ................. 18
21
Purpose of the Indigenous Land Corporation Funding
Special Account ............................................................................... 19
22
Annual payments to the Indigenous Land Corporation ................... 19
23
Annual payments--pre-payment transfers to the Indigenous
Land Corporation Funding Special Account ................................... 20
24
Annual payments--indexation factor .............................................. 21
25
Additional payments to the Indigenous Land Corporation .............. 21
26
Additional payments--pre-payment transfers to the
Indigenous Land Corporation Funding Special Account ................. 22
27
Additional payments--advice given by the Future Fund
Board ............................................................................................... 23
Part 4--Investment of the Aboriginal and Torres Strait
Islander Land and Sea Future Fund
24
28
Simplified outline of this Part .......................................................... 24
29
Objects of investment of the Aboriginal and Torres Strait
Islander Land and Sea Future Fund ................................................. 24
30
Investment of the Aboriginal and Torres Strait Islander Land
and Sea Future Fund ........................................................................ 25
31
Management of investments of the Aboriginal and Torres
Strait Islander Land and Sea Future Fund ........................................ 25
32
Aboriginal and Torres Strait Islander Land and Sea Future
Fund Investment Mandate ............................................................... 26
33
Obligation on Future Fund Board in performing investment
functions .......................................................................................... 28
34
Limitation on Aboriginal and Torres Strait Islander Land and
Sea Future Fund Investment Mandate ............................................. 28
35
Future Fund Board to be consulted on Aboriginal and Torres
Strait Islander Land and Sea Future Fund Investment
Mandate ........................................................................................... 28
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
iii
36
Compliance with Aboriginal and Torres Strait Islander Land
and Sea Future Fund Investment Mandate ....................................... 29
37
Future Fund Board must not trigger the takeover provisions
of the Corporations Act 2001 .......................................................... 30
38
Borrowing ........................................................................................ 30
39
Aboriginal and Torres Strait Islander Land and Sea Future
Fund investment policies ................................................................. 31
40
Derivatives ...................................................................................... 33
41
Additional financial assets ............................................................... 33
42
Securities lending arrangements ...................................................... 34
43
Investment managers ....................................................................... 34
44
Refund of franking credits ............................................................... 35
45
Realisation of non-financial assets .................................................. 35
46
Additional function of the Future Fund Board ................................. 36
Part 5--Reporting obligations etc.
37
47
Simplified outline of this Part .......................................................... 37
48
Finance Minister may require the Future Fund Board to
prepare reports or give information ................................................. 37
49
Keeping the responsible Ministers informed etc. ............................. 38
50
Finance Minister may give reports to other Ministers etc. ............... 38
Part 6--Miscellaneous
39
51
Simplified outline of this Part .......................................................... 39
52
Delegation by the Finance Minister ................................................. 39
53
Delegation by the Treasurer............................................................. 40
54
Delegation by the Indigenous Affairs Minister ................................ 40
55
Review of operation of Act ............................................................. 40
56
Rules ................................................................................................ 40
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
1
A Bill for an Act to establish the Aboriginal and
1
Torres Strait Islander Land and Sea Future Fund,
2
and for other purposes
3
The Parliament of Australia enacts:
4
Part 1--Preliminary
5
6
1 Short title
7
This Act is the Aboriginal and Torres Strait Islander Land and Sea
8
Future Fund Act 2018.
9
Part 1 Preliminary
Section 2
2
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
2 Commencement
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
Provisions
Commencement
Date/Details
1. The whole of
this Act
A single day to be fixed by Proclamation.
However, if the provisions do not commence
within the period of 6 months beginning on
the day this Act receives the Royal Assent,
they commence on the day after the end of
that period.
Note:
This table relates only to the provisions of this Act as originally
7
enacted. It will not be amended to deal with any later amendments of
8
this Act.
9
(2) Any information in column 3 of the table is not part of this Act.
10
Information may be inserted in this column, or information in it
11
may be edited, in any published version of this Act.
12
3 Simplified outline of this Act
13
•
This Act establishes the Aboriginal and Torres Strait Islander
14
Land and Sea Future Fund, which will enhance the
15
Commonwealth's ability to make payments to the Indigenous
16
Land Corporation.
17
•
The Aboriginal and Torres Strait Islander Land and Sea Future
18
Fund consists of:
19
(a)
the Aboriginal and Torres Strait Islander Land and Sea
20
Future Fund Special Account; and
21
(b)
the investments of the Aboriginal and Torres Strait
22
Islander Land and Sea Future Fund.
23
Preliminary Part 1
Section 4
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
3
•
The balance of the Aboriginal and Torres Strait Islander Land
1
Account will be transferred to the Aboriginal and Torres Strait
2
Islander Land and Sea Future Fund Special Account. The
3
investments of the Aboriginal and Torres Strait Islander Land
4
Account will become investments of the Aboriginal and
5
Torres Strait Islander Land and Sea Future Fund.
6
•
The Future Fund Board is responsible for deciding how to
7
invest the Aboriginal and Torres Strait Islander Land and Sea
8
Future Fund. In doing so, the Future Fund Board is bound by
9
the Aboriginal and Torres Strait Islander Land and Sea Future
10
Fund Investment Mandate given to it by the responsible
11
Ministers.
12
•
The Indigenous Affairs Minister must, on behalf of the
13
Commonwealth, make an annual payment to the Indigenous
14
Land Corporation.
15
•
The Indigenous Affairs Minister may, on behalf of the
16
Commonwealth, make an additional payment to the
17
Indigenous Land Corporation in respect of a financial year.
18
•
This Act establishes the Indigenous Land Corporation
19
Funding Special Account.
20
•
Payments to the Indigenous Land Corporation will be
21
channelled through the Indigenous Land Corporation Funding
22
Special Account.
23
Note:
The Aboriginal and Torres Strait Islander Land Account was
24
continued in existence by repealed section 192W of the Aboriginal
25
and Torres Strait Islander Act 2005.
26
4 Definitions
27
In this Act:
28
Aboriginal and Torres Strait Islander Land Account means the
29
Aboriginal and Torres Strait Islander Land Account that was
30
Part 1 Preliminary
Section 4
4
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
continued in existence by repealed section 192W of the Aboriginal
1
and Torres Strait Islander Act 2005.
2
Aboriginal and Torres Strait Islander Land and Sea Future
3
Fund means the Aboriginal and Torres Strait Islander Land and
4
Sea Future Fund established by section 9.
5
Aboriginal and Torres Strait Islander Land and Sea Future
6
Fund investment function of the Future Fund Board means:
7
(a) a function or power conferred on the Future Fund Board by
8
section 30, 31, 38, 40, 42 or 43; or
9
(b) a right or power conferred on the Future Fund Board in its
10
capacity as the holder of an investment of the Aboriginal and
11
Torres Strait Islander Land and Sea Future Fund.
12
Aboriginal and Torres Strait Islander Land and Sea Future
13
Fund Investment Mandate has the meaning given by
14
subsection 32(3).
15
Aboriginal and Torres Strait Islander Land and Sea Future
16
Fund Special Account means the Aboriginal and Torres Strait
17
Islander Land and Sea Future Fund Special Account established by
18
section 12.
19
acquire includes acquire by way of issue.
20
Agency means the Future Fund Management Agency.
21
Appropriation Act means an Act appropriating money for
22
expenditure out of the Consolidated Revenue Fund.
23
asset has the same meaning as in the Future Fund Act 2006.
24
balance of the Aboriginal and Torres Strait Islander Land and
25
Sea Future Fund means the sum of:
26
(a) amounts standing to the credit of the Aboriginal and Torres
27
Strait Islander Land and Sea Future Fund Special Account;
28
and
29
(b) the value of investments of the Aboriginal and Torres Strait
30
Islander Land and Sea Future Fund.
31
Preliminary Part 1
Section 4
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
5
bank has the same meaning as in the Public Governance,
1
Performance and Accountability Act 2013.
2
business day means a day that is not a Saturday, a Sunday or a
3
public holiday in the Australian Capital Territory.
4
business entity means:
5
(a) a company; or
6
(b) a partnership; or
7
(c) a trust; or
8
(d) a body politic.
9
derivative means a derivative (within the meaning of Chapter 7 of
10
the Corporations Act 2001) that is a financial asset.
11
Finance Department means the Department administered by the
12
Finance Minister.
13
Finance Minister has the same meaning as in the Public
14
Governance, Performance and Accountability Act 2013.
15
financial asset has the same meaning as in the Future Fund Act
16
2006.
17
Future Fund Board means the Future Fund Board of Guardians
18
established by section 34 of the Future Fund Act 2006.
19
Future Fund Special Account means the Future Fund Special
20
Account established by section 12 of the Future Fund Act 2006.
21
indexation factor has the meaning given by section 24.
22
Indigenous Affairs Department means the Department
23
administered by the Indigenous Affairs Minister.
24
Indigenous Affairs Minister means the Minister who administers
25
Part 4A of the Aboriginal and Torres Strait Islander Act 2005.
26
Indigenous Land Corporation means the Indigenous Land
27
Corporation established by section 191A of the Aboriginal and
28
Torres Strait Islander Act 2005.
29
Part 1 Preliminary
Section 4
6
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Indigenous Land Corporation Funding Special Account means
1
the Indigenous Land Corporation Funding Special Account
2
established by section 20.
3
investment means any mode of application of money or financial
4
assets for the purpose of gaining a return (whether by way of
5
income, capital gain or any other form of return).
6
investment manager means a person or body (other than the
7
Agency) who undertakes to do any or all of the following:
8
(a) invest amounts on behalf of the Future Fund Board;
9
(b) manage the investment of funds on behalf of the Future Fund
10
Board;
11
(c) acquire derivatives on behalf of the Future Fund Board;
12
(d) manage derivatives on behalf of the Future Fund Board;
13
(e) enter into securities lending arrangements on behalf of the
14
Future Fund Board;
15
(f) realise financial assets on behalf of the Future Fund Board;
16
(g) perform custodial functions in relation to the financial assets
17
of the Future Fund Board.
18
investment of the Aboriginal and Torres Strait Islander Land and
19
Sea Future Fund means a financial asset that, under a provision of
20
this Act, is taken to be an investment of the Aboriginal and Torres
21
Strait Islander Land and Sea Future Fund.
22
person includes a partnership.
23
Note:
See also subsection 2C(1) of the Acts Interpretation Act 1901.
24
realise includes redeem or dispose of.
25
responsible Ministers means:
26
(a) the Treasurer; and
27
(b) the Finance Minister.
28
rules means rules made under section 56.
29
Treasury Department means the Department administered by the
30
Treasurer.
31
Preliminary Part 1
Section 5
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
7
value of an investment of the Aboriginal and Torres Strait Islander
1
Land and Sea Future Fund means the market value of the
2
investment. For this purpose, disregard anything that would
3
prevent or restrict conversion of a financial asset to money.
4
5 Crown to be bound
5
(1) This Act binds the Crown in each of its capacities.
6
(2) This Act does not make the Crown liable to be prosecuted for an
7
offence.
8
6 Extension to external Territories
9
This Act extends to every external Territory.
10
7 Extra-territorial application
11
This Act extends to acts, omissions, matters and things outside
12
Australia.
13
Part 2 Aboriginal and Torres Strait Islander Land and Sea Future Fund
Division 1 Introduction
Section 8
8
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Part 2--Aboriginal and Torres Strait Islander Land
1
and Sea Future Fund
2
Division 1--Introduction
3
8 Simplified outline of this Part
4
•
The Aboriginal and Torres Strait Islander Land and Sea Future
5
Fund consists of:
6
(a)
the Aboriginal and Torres Strait Islander Land and Sea
7
Future Fund Special Account; and
8
(b)
the investments of the Aboriginal and Torres Strait
9
Islander Land and Sea Future Fund.
10
•
The balance of the Aboriginal and Torres Strait Islander Land
11
Account will be transferred to the Aboriginal and Torres Strait
12
Islander Land and Sea Future Fund Special Account.
13
•
Financial assets that represent the investment of amounts
14
standing to the credit of the Aboriginal and Torres Strait
15
Islander Land Account will be transferred to the Aboriginal
16
and Torres Strait Islander Land and Sea Future Fund.
17
•
The responsible Ministers may determine that additional
18
amounts be credited to the Aboriginal and Torres Strait
19
Islander Land and Sea Future Fund Special Account.
20
•
The Aboriginal and Torres Strait Islander Land and Sea Future
21
Fund Special Account can be debited for 2 main purposes:
22
(a)
to transfer amounts to the Indigenous Land Corporation
23
Funding Special Account so that annual payments can
24
be made to the Indigenous Land Corporation; and
25
(b)
to transfer amounts to the Indigenous Land Corporation
26
Funding Special Account so that additional payments
27
can be made to the Indigenous Land Corporation.
28
Aboriginal and Torres Strait Islander Land and Sea Future Fund Part 2
Introduction Division 1
Section 8
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
9
•
The Aboriginal and Torres Strait Islander Land and Sea Future
1
Fund Special Account can also be debited in relation to costs
2
and other obligations incurred by the Future Fund Board in
3
managing the Aboriginal and Torres Strait Islander Land and
4
Sea Future Fund.
5
Note:
The Aboriginal and Torres Strait Islander Land Account was
6
continued in existence by repealed section 192W of the Aboriginal
7
and Torres Strait Islander Act 2005.
8
Part 2 Aboriginal and Torres Strait Islander Land and Sea Future Fund
Division 2 Aboriginal and Torres Strait Islander Land and Sea Future Fund
Section 9
10
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Division 2--Aboriginal and Torres Strait Islander Land
1
and Sea Future Fund
2
9 Establishment of the Aboriginal and Torres Strait Islander Land
3
and Sea Future Fund
4
(1) The Aboriginal and Torres Strait Islander Land and Sea Future
5
Fund is established by this section.
6
(2) The Fund consists of:
7
(a) the Aboriginal and Torres Strait Islander Land and Sea
8
Future Fund Special Account; and
9
(b) the investments of the Aboriginal and Torres Strait Islander
10
Land and Sea Future Fund.
11
10 Transfer of balance of the Aboriginal and Torres Strait Islander
12
Land Account
13
As soon as practicable after the commencement of this section,
14
there is to be credited to the Aboriginal and Torres Strait Islander
15
Land and Sea Future Fund Special Account an amount equal to the
16
balance of the Aboriginal and Torres Strait Islander Land Account
17
immediately before the commencement of this section.
18
Note 1:
The Aboriginal and Torres Strait Islander Land Account was
19
continued in existence by repealed section 192W of the Aboriginal
20
and Torres Strait Islander Act 2005.
21
Note 2:
The balance of the Aboriginal and Torres Strait Islander Land
22
Account does not include the value of a financial asset that represents
23
the investment of an amount standing to the credit of that account.
24
11 Transfer of investments of the Aboriginal and Torres Strait
25
Islander Land Account
26
Scope
27
(1) This section applies to a financial asset if, immediately before the
28
commencement of this section, the asset represented the
29
Aboriginal and Torres Strait Islander Land and Sea Future Fund Part 2
Aboriginal and Torres Strait Islander Land and Sea Future Fund Division 2
Section 11
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
11
investment of an amount standing to the credit of the Aboriginal
1
and Torres Strait Islander Land Account.
2
Note:
The Aboriginal and Torres Strait Islander Land Account was
3
continued in existence by repealed section 192W of the Aboriginal
4
and Torres Strait Islander Act 2005.
5
Transfer
6
(2) After the commencement of this section, the financial asset is taken
7
to be an investment of the Aboriginal and Torres Strait Islander
8
Land and Sea Future Fund.
9
(3) A soon as practicable after the commencement of this section, the
10
Treasurer or the Finance Minister must cause the financial asset to
11
be transferred to the Future Fund Board.
12
Part 2 Aboriginal and Torres Strait Islander Land and Sea Future Fund
Division 3 Aboriginal and Torres Strait Islander Land and Sea Future Fund Special
Account
Section 12
12
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Division 3--Aboriginal and Torres Strait Islander Land
1
and Sea Future Fund Special Account
2
12 Establishment of the Aboriginal and Torres Strait Islander Land
3
and Sea Future Fund Special Account
4
(1) The Aboriginal and Torres Strait Islander Land and Sea Future
5
Fund Special Account is established by this section.
6
(2) The Aboriginal and Torres Strait Islander Land and Sea Future
7
Fund Special Account is a special account for the purposes of the
8
Public Governance, Performance and Accountability Act 2013.
9
Note:
An Appropriation Act may contain a provision to the effect that, if any
10
of the purposes of a special account is a purpose that is covered by an
11
item in the Appropriation Act (whether or not the item expressly refers
12
to the special account), then amounts may be debited against the
13
appropriation for that item and credited to that special account.
14
13 Credits of amounts to the Aboriginal and Torres Strait Islander
15
Land and Sea Future Fund Special Account
16
(1) The responsible Ministers may, by writing, determine that:
17
(a) a specified amount is to be credited to the Aboriginal and
18
Torres Strait Islander Land and Sea Future Fund Special
19
Account on a specified day; or
20
(b) a specified amount is to be credited to the Aboriginal and
21
Torres Strait Islander Land and Sea Future Fund Special
22
Account in specified instalments on specified days.
23
Note 1:
For variation and revocation, see subsection 33(3) of the Acts
24
Interpretation Act 1901.
25
Note 2:
Amounts must also be credited to the Aboriginal and Torres Strait
26
Islander Land and Sea Future Fund Special Account under
27
sections 10, 31, 42 and 44.
28
(2) A determination under subsection (1) is a legislative instrument,
29
but section 42 (disallowance) of the Legislation Act 2003 does not
30
apply to the determination.
31
Aboriginal and Torres Strait Islander Land and Sea Future Fund Part 2
Aboriginal and Torres Strait Islander Land and Sea Future Fund Special Account
Division 3
Section 14
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
13
14 Purposes of the Aboriginal and Torres Strait Islander Land and
1
Sea Future Fund Special Account--main purposes
2
The main purposes of the Aboriginal and Torres Strait Islander
3
Land and Sea Future Fund Special Account are:
4
(a) to transfer amounts to the Indigenous Land Corporation
5
Funding Special Account in accordance with section 23 so
6
that payments can be made to the Indigenous Land
7
Corporation under section 22; and
8
(b) to transfer amounts to the Indigenous Land Corporation
9
Funding Special Account in accordance with section 26 so
10
that payments can be made to the Indigenous Land
11
Corporation under section 25.
12
Note 1:
Section 22 deals with annual payments.
13
Note 2:
Section 25 deals with additional payments.
14
15 Purposes of the Aboriginal and Torres Strait Islander Land and
15
Sea Future Fund Special Account--purposes related
16
exclusively to the investments etc. of the Aboriginal and
17
Torres Strait Islander Land and Sea Future Fund
18
Each of the following is a purpose of the Aboriginal and Torres
19
Strait Islander Land and Sea Future Fund Special Account:
20
(a) paying the costs of, or incidental to, the acquisition of
21
financial assets under section 30;
22
(b) paying expenses of an investment of the Aboriginal and
23
Torres Strait Islander Land and Sea Future Fund;
24
(c) paying the costs of, or incidental to, the acquisition of
25
derivatives under section 40;
26
(d) paying or discharging the costs, expenses and other
27
obligations incurred by the Future Fund Board under a
28
contract between the Board and an investment manager
29
engaged under subsection 43(1);
30
(e) paying or discharging the costs, expenses and other
31
obligations incurred in connection with the establishment,
32
maintenance or operation of a bank account of the Future
33
Part 2 Aboriginal and Torres Strait Islander Land and Sea Future Fund
Division 3 Aboriginal and Torres Strait Islander Land and Sea Future Fund Special
Account
Section 16
14
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Fund Board, if the bank account relates exclusively to the
1
Aboriginal and Torres Strait Islander Land and Sea Future
2
Fund;
3
(f) paying a premium in respect of a contract of insurance
4
entered into by the Future Fund Board exclusively in
5
connection with the Aboriginal and Torres Strait Islander
6
Land and Sea Future Fund;
7
(g) paying or discharging any other costs, expenses, obligations
8
or liabilities incurred by the Future Fund Board exclusively
9
in connection with the Aboriginal and Torres Strait Islander
10
Land and Sea Future Fund;
11
(h) paying expenses of an investment of an amount standing to
12
the credit of the Aboriginal and Torres Strait Islander Land
13
Account, where the expenses were incurred before the
14
commencement of this section.
15
Note:
See section 80 of the Public Governance, Performance and
16
Accountability Act 2013 (which deals with special accounts).
17
16 Purposes of the Aboriginal and Torres Strait Islander Land and
18
Sea Future Fund Special Account--purposes not related
19
exclusively to the Aboriginal and Torres Strait Islander
20
Land and Sea Future Fund
21
Each of the following is a purpose of the Aboriginal and Torres
22
Strait Islander Land and Sea Future Fund Special Account:
23
(a) paying or discharging the costs, expenses and other
24
obligations incurred in connection with the establishment,
25
maintenance or operation of a bank account of the Future
26
Fund Board, if those costs, expenses or obligations are not
27
covered by:
28
(i) paragraph 15(e); or
29
(ii) paragraph 18(e) of the Medical Research Future Fund
30
Act 2015; or
31
(iii) paragraph 2(1)(g) of Schedule 2 to the Future Fund Act
32
2006; or
33
(iv) paragraph 18(1)(j), 136(1)(j) or 137(e) of the
34
Nation-building Funds Act 2008; or
35
Aboriginal and Torres Strait Islander Land and Sea Future Fund Part 2
Aboriginal and Torres Strait Islander Land and Sea Future Fund Special Account
Division 3
Section 16
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
15
(v) paragraph 15(e) of the DisabilityCare Australia Fund
1
Act 2013;
2
(b) paying a premium in respect of a contract of insurance
3
entered into by the Future Fund Board, if the premium is not
4
covered by:
5
(i) paragraph 15(f); or
6
(ii) paragraph 18(f) of the Medical Research Future Fund
7
Act 2015; or
8
(iii) paragraph 2(1)(h) of Schedule 2 to the Future Fund Act
9
2006; or
10
(iv) paragraph 18(1)(k), 136(1)(k) or 137(f) of the
11
Nation-building Funds Act 2008; or
12
(v) paragraph 15(f) of the DisabilityCare Australia Fund
13
Act 2013;
14
(c) paying or discharging any other costs, expenses, obligations
15
or liabilities incurred by the Future Fund Board, if the costs,
16
expenses, obligations or liabilities are not covered by:
17
(i) a paragraph of section 15; or
18
(ii) a paragraph of section 18 of the Medical Research
19
Future Fund Act 2015; or
20
(iii) a paragraph of subclause 2(1) of Schedule 2 to the
21
Future Fund Act 2006; or
22
(iv) a paragraph of subsection 18(1) or 136(1) or of
23
section 137 of the Nation-building Funds Act 2008; or
24
(v) a paragraph of section 15 of the DisabilityCare
25
Australia Fund Act 2013;
26
(d) paying remuneration and allowances of Future Fund Board
27
members;
28
(e) paying remuneration, and other employment-related costs
29
and expenses, in respect of members of the staff of the
30
Agency;
31
(f) paying or discharging the costs, expenses and other
32
obligations incurred by the Commonwealth or the Future
33
Fund Board:
34
(i) under a contract entered into under section 78 or 82 of
35
the Future Fund Act 2006; or
36
Part 2 Aboriginal and Torres Strait Islander Land and Sea Future Fund
Division 3 Aboriginal and Torres Strait Islander Land and Sea Future Fund Special
Account
Section 17
16
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
(ii) in connection with the operation of the Agency.
1
Note:
See section 80 of the Public Governance, Performance and
2
Accountability Act 2013 (which deals with special accounts).
3
17 Future Fund Board must ensure that the balance of the
4
Aboriginal and Torres Strait Islander Land and Sea
5
Future Fund Special Account is sufficient to cover
6
authorised debits etc.
7
The Future Fund Board must take all reasonable steps to ensure
8
that the balance of the Aboriginal and Torres Strait Islander Land
9
and Sea Future Fund Special Account is sufficient to cover debits
10
of amounts for the purposes specified in sections 14, 15 and 16.
11
Note:
This may require the Future Fund Board to realise an investment of
12
the Aboriginal and Torres Strait Islander Land and Sea Future Fund in
13
accordance with section 31.
14
Aboriginal and Torres Strait Islander Land and Sea Future Fund Part 2
Inter-fund transfers Division 4
Section 18
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
17
Division 4--Inter-fund transfers
1
18 Transfers from the Aboriginal and Torres Strait Islander Land
2
and Sea Future 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,
6
on a specified day, a specified amount is to be:
7
(a) debited from the Aboriginal and Torres Strait Islander Land
8
and Sea Future Fund Special Account; and
9
(b) credited to the Future Fund Special Account.
10
(2) The specified amount must not exceed the amount debited from the
11
Future Fund Special Account as mentioned in subsection (1).
12
(3) A direction under subsection (1) is not a legislative instrument.
13
Part 3 Indigenous Land Corporation Funding Special Account
Section 19
18
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Part 3--Indigenous Land Corporation Funding
1
Special Account
2
3
19 Simplified outline of this Part
4
•
This Part establishes the Indigenous Land Corporation
5
Funding Special Account.
6
•
The Indigenous Affairs Minister must, on behalf of the
7
Commonwealth, make an annual payment to the Indigenous
8
Land Corporation.
9
•
The Indigenous Affairs Minister may, on behalf of the
10
Commonwealth, make an additional payment to the
11
Indigenous Land Corporation.
12
•
Payments to the Indigenous Land Corporation will be
13
channelled through the Indigenous Land Corporation Funding
14
Special Account.
15
20 Indigenous Land Corporation Funding Special Account
16
(1) The Indigenous Land Corporation Funding Special Account is
17
established by this section.
18
(2) The Indigenous Land Corporation Funding Special Account is a
19
special account for the purposes of the Public Governance,
20
Performance and Accountability Act 2013.
21
Note:
An Appropriation Act may contain a provision to the effect that, if any
22
of the purposes of a special account is a purpose that is covered by an
23
item in the Appropriation Act (whether or not the item expressly refers
24
to the special account), then amounts may be debited against the
25
appropriation for that item and credited to that special account.
26
(3) The Secretary of the Indigenous Affairs Department is responsible
27
for the Indigenous Land Corporation Funding Special Account.
28
Indigenous Land Corporation Funding Special Account Part 3
Section 21
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
19
21 Purpose of the Indigenous Land Corporation Funding Special
1
Account
2
The purpose of the Indigenous Land Corporation Funding Special
3
Account is the making of payments to the Indigenous Land
4
Corporation under sections 22 and 25.
5
Note 1:
See section 80 of the Public Governance, Performance and
6
Accountability Act 2013 (which deals with special accounts).
7
Note 2:
Section 22 deals with annual payments.
8
Note 3:
Section 25 deals with additional payments.
9
22 Annual payments to the Indigenous Land Corporation
10
Financial year beginning on 1 July 2018
11
(1) On the first business day in October in the financial year beginning
12
on 1 July 2018, the Indigenous Affairs Minister must, on behalf of
13
the Commonwealth, pay to the Indigenous Land Corporation an
14
amount equal to the amount that would have been the relevant
15
funding amount for the financial year within the meaning of
16
repealed subsection 193(2) of the Aboriginal and Torres Strait
17
Islander Act 2005 if section 193 of that Act had not been repealed.
18
Note:
Repealed subsection 193(2) of the Aboriginal and Torres Strait
19
Islander Act 2005 provided for annual payments.
20
Later financial years
21
(2) On the first business day in October in:
22
(a) the financial year beginning on 1 July 2019; or
23
(b) a later financial year;
24
the Indigenous Affairs Minister must, on behalf of the
25
Commonwealth, pay to the Indigenous Land Corporation the
26
amount worked out using the formula:
27
Indexation factor
Designated funding amount
ï‚´
28
where:
29
designated funding amount means:
30
Part 3 Indigenous Land Corporation Funding Special Account
Section 23
20
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
(a) for the financial year beginning on 1 July 2019--the amount
1
worked out under subsection (1); or
2
(b) for a later financial year--the amount worked out under this
3
subsection for the previous financial year.
4
indexation factor means the indexation factor for the financial year
5
worked out under section 24.
6
Rounding
7
(3) If an amount to be paid under subsection (2) is an amount of
8
dollars and cents, the cents are to be disregarded.
9
23 Annual payments--pre-payment transfers to the Indigenous
10
Land Corporation Funding Special Account
11
(1) On the business day before the first business day in October in the
12
financial year beginning on 1 July 2018, the Finance Minister must
13
cause an amount equal to the amount worked out under
14
subsection 22(1) to be:
15
(a) debited from the Aboriginal and Torres Strait Islander Land
16
and Sea Future Fund Special Account; and
17
(b) credited to the Indigenous Land Corporation Funding Special
18
Account.
19
(2) On the business day before the first business day in October in:
20
(a) the financial year beginning on 1 July 2019; or
21
(b) a later financial year;
22
the Finance Minister must cause an amount equal to the amount
23
worked out under subsection 22(2) for the financial year to be:
24
(c) debited from the Aboriginal and Torres Strait Islander Land
25
and Sea Future Fund Special Account; and
26
(d) credited to the Indigenous Land Corporation Funding Special
27
Account.
28
Indigenous Land Corporation Funding Special Account Part 3
Section 24
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
21
24 Annual payments--indexation factor
1
(1) For the purposes of this Act, the indexation factor for a financial
2
year is worked out using the formula:
3
Sum of index numbers for quarters in first June year
Sum of index numbers for quarters in second June year
4
where:
5
first June year means the period of 12 months ending on 30 June
6
immediately before the financial year.
7
index number, for a quarter, means the All Groups Consumer
8
Price Index number, being the weighted average of the 8 capital
9
cities, published by the Australian Statistician in respect of that
10
quarter.
11
second June year means the period of 12 months immediately
12
before the first June year.
13
(2) An indexation factor is to be calculated to 3 decimal places, but
14
increased by 0.001 if the fourth decimal place is more than 4.
15
(3) If an indexation factor worked out under subsections (1) and (2)
16
would be less than 1, that indexation factor is to be increased to 1.
17
(4) Calculations under this section are to be made:
18
(a) using only the index numbers published in terms of the most
19
recently published index reference period for the Consumer
20
Price Index; and
21
(b) disregarding index numbers published in substitution for
22
previously published index numbers (except where the
23
substituted numbers are published to take account of changes
24
in the index reference period).
25
25 Additional payments to the Indigenous Land Corporation
26
(1) The Finance Minister and the Indigenous Affairs Minister may, by
27
notifiable instrument, determine that, on a specified day, the
28
Part 3 Indigenous Land Corporation Funding Special Account
Section 26
22
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Indigenous Affairs Minister must, on behalf of the Commonwealth,
1
pay a specified amount to the Indigenous Land Corporation.
2
(2) In making a determination under subsection (1), the Finance
3
Minister and the Indigenous Affairs Minister must have regard to:
4
(a) the advice given by the Future Fund Board under section 27
5
in relation to a draft of the determination; and
6
(b) such other matters (if any) as the Finance Minister and the
7
Indigenous Affairs Minister consider relevant.
8
(3) If the Finance Minister and the Indigenous Affairs Minister make a
9
determination under subsection (1) that specifies a day in a
10
financial year, the Finance Minister and the Indigenous Affairs
11
Minister must not make another determination under subsection (1)
12
that specifies:
13
(a) that day; or
14
(b) another day in the financial year.
15
(4) A day specified in a determination under subsection (1) must not
16
be earlier than 30 days after the day the determination is made.
17
(5) If a determination is made under subsection (1), the Finance
18
Minister must:
19
(a) give a copy of the determination to the Future Fund Board;
20
and
21
(b) do so at least 30 days before the day specified in the
22
determination.
23
26 Additional payments--pre-payment transfers to the Indigenous
24
Land Corporation Funding Special Account
25
On the day before the day specified in a determination under
26
subsection 25(1), the Finance Minister must cause an amount equal
27
to the amount specified in the determination to be:
28
(a) debited from the Aboriginal and Torres Strait Islander Land
29
and Sea Future Fund Special Account; and
30
(b) credited to the Indigenous Land Corporation Funding Special
31
Account.
32
Indigenous Land Corporation Funding Special Account Part 3
Section 27
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
23
27 Additional payments--advice given by the Future Fund Board
1
(1) Before making a determination under subsection 25(1), the Finance
2
Minister and the Indigenous Affairs Minister must give the Future
3
Fund Board written notice that:
4
(a) sets out a draft of the determination; and
5
(b) requires the Future Fund Board to:
6
(i) give advice to those Ministers about the impact of the
7
making of the determination on the sustainability of
8
payments required to be made under section 22; and
9
(ii) do so within the period specified in the notice; and
10
(c) requires the Future Fund Board, in giving that advice, to have
11
regard to:
12
(i) the Aboriginal and Torres Strait Islander Land and Sea
13
Future Fund Investment Mandate; and
14
(ii) such other matters (if any) as are specified in the notice.
15
Note:
Section 22 deals with annual payments.
16
(2) The Future Fund Board must comply with a requirement in a
17
notice under subsection (1).
18
(3) A period specified under subparagraph (1)(b)(ii) must not be
19
shorter than 90 days after the notice is given.
20
(4) A matter specified under subparagraph (1)(c)(ii) must not be
21
inconsistent with:
22
(a) this Act; or
23
(b) the Aboriginal and Torres Strait Islander Land and Sea
24
Future Fund Investment Mandate.
25
(5) Paragraph (1)(c) does not, by implication, limit the matters to
26
which the Future Fund Board may have regard.
27
Part 4 Investment of the Aboriginal and Torres Strait Islander Land and Sea Future
Fund
Section 28
24
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Part 4--Investment of the Aboriginal and Torres
1
Strait Islander Land and Sea Future Fund
2
3
28 Simplified outline of this Part
4
•
The Future Fund Board is responsible for deciding how to
5
invest the Aboriginal and Torres Strait Islander Land and Sea
6
Future Fund.
7
•
Investments of the Aboriginal and Torres Strait Islander Land
8
and Sea Future Fund consist of financial assets, and are held
9
in the name of the Future Fund Board.
10
•
The Future Fund Board is bound by an Aboriginal and Torres
11
Strait Islander Land and Sea Future Fund Investment Mandate
12
given to it by the responsible Ministers.
13
29 Objects of investment of the Aboriginal and Torres Strait
14
Islander Land and Sea Future Fund
15
(1) The main object of the acquisition by the Future Fund Board of a
16
financial asset as an investment of the Aboriginal and Torres Strait
17
Islander Land and Sea Future Fund is to enhance the ability to
18
transfer amounts as mentioned in section 14.
19
(2) The ancillary objects of the acquisition by the Future Fund Board
20
of a financial asset as an investment of the Aboriginal and Torres
21
Strait Islander Land and Sea Future Fund are to enhance the ability
22
of the Commonwealth and the Future Fund Board to discharge the
23
costs, expenses, obligations and liabilities mentioned in sections 15
24
and 16.
25
Investment of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Part
4
Section 30
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
25
30 Investment of the Aboriginal and Torres Strait Islander Land
1
and Sea Future Fund
2
(1) The Future Fund Board may invest amounts standing to the credit
3
of the Aboriginal and Torres Strait Islander Land and Sea Future
4
Fund Special Account in any financial assets.
5
(2) Investments under subsection (1) are to be made in the name of the
6
Future Fund Board.
7
(3) Investments under subsection (1) are taken to be investments of the
8
Aboriginal and Torres Strait Islander Land and Sea Future Fund.
9
(4) This section does not authorise the acquisition of a derivative.
10
Note:
For acquisition of derivatives, see section 40.
11
31 Management of investments of the Aboriginal and Torres Strait
12
Islander Land and Sea Future Fund
13
(1) Income derived from an investment of the Aboriginal and Torres
14
Strait Islander Land and Sea Future Fund is to be credited to the
15
Aboriginal and Torres Strait Islander Land and Sea Future Fund
16
Special Account.
17
(2) A return of capital, or any other financial distribution, relating to
18
an investment of the Aboriginal and Torres Strait Islander Land
19
and Sea Future Fund is to be credited to the Aboriginal and Torres
20
Strait Islander Land and Sea Future Fund Special Account.
21
(3) The Future Fund Board may realise an investment of the
22
Aboriginal and Torres Strait Islander Land and Sea Future Fund.
23
(4) Upon realisation of an investment of the Aboriginal and Torres
24
Strait Islander Land and Sea Future Fund, the proceeds of the
25
investment are to be credited to the Aboriginal and Torres Strait
26
Islander Land and Sea Future Fund Special Account.
27
(5) At any time before an investment of the Aboriginal and Torres
28
Strait Islander Land and Sea Future Fund matures, the Future Fund
29
Board may authorise the re-investment of the proceeds upon
30
Part 4 Investment of the Aboriginal and Torres Strait Islander Land and Sea Future
Fund
Section 32
26
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
maturity in a financial asset investment with the same entity. The
1
new investment is taken to be an investment of the Aboriginal and
2
Torres Strait Islander Land and Sea Future Fund.
3
(6) Section 58 of the Public Governance, Performance and
4
Accountability Act 2013 (which deals with investment by the
5
Commonwealth) does not apply to an investment of the Aboriginal
6
and Torres Strait Islander Land and Sea Future Fund.
7
32 Aboriginal and Torres Strait Islander Land and Sea Future Fund
8
Investment Mandate
9
(1) The responsible Ministers may (subject to section 34) give the
10
Future Fund Board written directions about the performance of its
11
Aboriginal and Torres Strait Islander Land and Sea Future Fund
12
investment functions, and must give at least one such direction.
13
Note 1:
Aboriginal and Torres Strait Islander Land and Sea Future Fund
14
investment function is defined in section 4.
15
Note 2:
For variation and revocation, see subsection 33(3) of the Acts
16
Interpretation Act 1901.
17
(2) In giving a direction under subsection (1), the responsible
18
Ministers must have regard to:
19
(a) the need to maximise the return earned on the Aboriginal and
20
Torres Strait Islander Land and Sea Future Fund over the
21
long term, consistent with international best practice for
22
institutional investment; and
23
(b) the payments required to be made under section 22; and
24
(c) such other matters as the responsible Ministers consider
25
relevant.
26
Note:
Section 22 deals with annual payments.
27
(3) Directions under subsection (1) are to be known collectively as the
28
Aboriginal and Torres Strait Islander Land and Sea Future
29
Fund Investment Mandate.
30
Investment of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Part
4
Section 32
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
27
(4) Without limiting subsection (1), a direction under that subsection
1
may set out the policies to be pursued by the Future Fund Board in
2
relation to:
3
(a) matters of risk and return; and
4
(b) the allocation of financial assets.
5
A policy relating to the allocation of financial assets must not be
6
inconsistent with a policy relating to matters of risk and return.
7
Relationship between directions and other provisions of this Act
8
(5) A direction under subsection (1):
9
(a) prevails over section 33 to the extent of any inconsistency;
10
and
11
(b) must not otherwise be inconsistent with this Act.
12
When direction takes effect
13
(6) A direction under subsection (1) must not take effect before the
14
15th day after the day on which it is given.
15
Consultation
16
(7) Before giving a direction under subsection (1), the responsible
17
Ministers must consult the Indigenous Affairs Minister.
18
Direction is a legislative instrument
19
(8) A direction under subsection (1) is a legislative instrument.
20
Note 1:
Section 42 (disallowance) of the Legislation Act 2003 does not apply
21
to the direction--see regulations made for the purposes of
22
paragraph 44(2)(b) of that Act.
23
Note 2:
Part 4 of Chapter 3 (sunsetting) of the Legislation Act 2003 does not
24
apply to the direction--see regulations made for the purposes of
25
paragraph 54(2)(b) of that Act.
26
Part 4 Investment of the Aboriginal and Torres Strait Islander Land and Sea Future
Fund
Section 33
28
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
33 Obligation on Future Fund Board in performing investment
1
functions
2
In performing its Aboriginal and Torres Strait Islander Land and
3
Sea Future Fund investment function, the Future Fund Board must
4
(subject to this Act and a direction under subsection 32(1)) seek to
5
maximise the return earned on the Aboriginal and Torres Strait
6
Islander Land and Sea Future Fund over the long term, consistent
7
with international best practice for institutional investment.
8
34 Limitation on Aboriginal and Torres Strait Islander Land and
9
Sea Future Fund Investment Mandate
10
(1) The responsible Ministers must not give a direction under
11
subsection 32(1) that has the purpose, or has or is likely to have the
12
effect, of directly or indirectly requiring the Future Fund Board to:
13
(a) invest an amount standing to the credit of the Aboriginal and
14
Torres Strait Islander Land and Sea Future Fund Special
15
Account in a particular financial asset; or
16
(b) acquire a particular derivative; or
17
(c) allocate financial assets to:
18
(i) a particular business entity; or
19
(ii) a particular activity; or
20
(iii) a particular business.
21
(2) Paragraphs (1)(a) and (b) do not limit paragraph (1)(c).
22
35 Future Fund Board to be consulted on Aboriginal and Torres
23
Strait Islander Land and Sea Future Fund Investment
24
Mandate
25
(1) Before giving the Future Fund Board a direction under
26
subsection 32(1), the responsible Ministers must:
27
(a) send a draft of the direction to the Future Fund Board; and
28
(b) invite the Future Fund Board to make a submission to the
29
responsible Ministers on the draft direction within a
30
Investment of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Part
4
Section 36
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
29
reasonable time limit specified by the responsible Ministers;
1
and
2
(c) consider any submission that is received from the Future
3
Fund Board within that time limit.
4
(2) Any submission made by the Future Fund Board on a draft
5
direction in accordance with paragraph (1)(b) must be tabled in
6
each House of the Parliament with the direction.
7
Note:
As the direction is a legislative instrument, it is also tabled in each
8
House of the Parliament under section 38 of the Legislation Act 2003.
9
36 Compliance with Aboriginal and Torres Strait Islander Land and
10
Sea Future Fund Investment Mandate
11
(1) The Future Fund Board must take all reasonable steps to comply
12
with the Aboriginal and Torres Strait Islander Land and Sea Future
13
Fund Investment Mandate.
14
(2) If the Future Fund Board becomes aware that it has failed to
15
comply with the Aboriginal and Torres Strait Islander Land and
16
Sea Future Fund Investment Mandate, the Board must give the
17
responsible Ministers a written statement, as soon as practicable
18
after becoming so aware:
19
(a) informing the responsible Ministers of the failure to comply
20
with the Investment Mandate; and
21
(b) setting out the action that the Board proposes to take in order
22
to comply with the Investment Mandate.
23
(3) If the responsible Ministers are satisfied that the Future Fund
24
Board has failed to comply with the Aboriginal and Torres Strait
25
Islander Land and Sea Future Fund Investment Mandate, the
26
responsible Ministers may, by written notice given to the Board,
27
direct the Board:
28
(a) to give the responsible Ministers, within a period specified in
29
the notice, a written explanation for the failure to comply
30
with the Investment Mandate; and
31
Part 4 Investment of the Aboriginal and Torres Strait Islander Land and Sea Future
Fund
Section 37
30
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
(b) to take action specified in the notice, within a period
1
specified in the notice, in order to comply with the
2
Investment Mandate.
3
(4) The Future Fund Board must comply with a direction under
4
subsection (3).
5
(5) A failure to comply with:
6
(a) the Aboriginal and Torres Strait Islander Land and Sea
7
Future Fund Investment Mandate; or
8
(b) a direction under subsection (3);
9
does not affect the validity of any transaction.
10
(6) A direction under subsection (3) is not a legislative instrument.
11
37 Future Fund Board must not trigger the takeover provisions of
12
the Corporations Act 2001
13
(1) Subsections 606(1A) and (2A) and section 611 of the Corporations
14
Act 2001 do not apply to an acquisition by the Future Fund Board
15
if the acquisition is the result of the performance by the Future
16
Fund Board of its Aboriginal and Torres Strait Islander Land and
17
Sea Future Fund investment functions.
18
(2) A failure by the Future Fund Board to comply with section 606 of
19
the Corporations Act 2001 (as modified by this section) does not
20
affect the validity of any transaction.
21
Note:
See also section 39 of the Future Fund Act 2006 (application of the
22
Corporations Act 2001).
23
38 Borrowing
24
(1) The Future Fund Board must not borrow money for a purpose in
25
connection with the Aboriginal and Torres Strait Islander Land and
26
Sea Future Fund unless the borrowing is authorised by
27
subsection (2) or (3).
28
Investment of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Part
4
Section 39
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
31
(2) The Future Fund Board is authorised to borrow money for a
1
purpose in connection with the Aboriginal and Torres Strait
2
Islander Land and Sea Future Fund if:
3
(a) the purpose of the borrowing is to enable the Board to cover
4
settlement of a transaction for the acquisition of one or more
5
financial assets; and
6
(b) at the time the relevant acquisition decision was made, it was
7
likely that the borrowing would not be needed; and
8
(c) the period of the borrowing does not exceed 7 days; and
9
(d) if the borrowing were to take place, the total amount
10
borrowed by the Board would not exceed 10% of the balance
11
of the Fund.
12
(3) The Future Fund Board is authorised to borrow money for a
13
purpose in connection with the Aboriginal and Torres Strait
14
Islander Land and Sea Future Fund if the borrowing takes place in
15
such circumstances (if any) as are specified in the rules.
16
39 Aboriginal and Torres Strait Islander Land and Sea Future Fund
17
investment policies
18
(1) The Future Fund Board must formulate written policies to be
19
complied with by it in relation to the following matters in
20
connection with the Aboriginal and Torres Strait Islander Land and
21
Sea Future Fund:
22
(a) the investment strategy for the Fund;
23
(b) benchmarks and standards for assessing the performance of
24
the Fund;
25
(c) risk management for the Fund;
26
(d) a matter relating to international best practice for institutional
27
investment;
28
(e) a matter specified in the rules.
29
Note:
For variation and revocation, see subsection 33(3) of the Acts
30
Interpretation Act 1901.
31
Part 4 Investment of the Aboriginal and Torres Strait Islander Land and Sea Future
Fund
Section 39
32
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
(2) The Future Fund Board must ensure that policies formulated under
1
subsection (1) are consistent with the Aboriginal and Torres Strait
2
Islander Land and Sea Future Fund 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 a copy of the first set of
7
policies formulated under subsection (1) is published on the
8
internet as soon as practicable after the commencement of this
9
section.
10
Review of policies
11
(5) The Future Fund Board must conduct periodic reviews of policies
12
formulated under subsection (1).
13
(6) If there is a change in the Aboriginal and Torres Strait Islander
14
Land and Sea Future Fund Investment Mandate, the Future Fund
15
Board must review any relevant policies formulated under
16
subsection (1).
17
Compliance with policies
18
(7) The Future Fund Board must take all reasonable steps to comply
19
with policies formulated under subsection (1).
20
(8) A failure to comply with a policy formulated under subsection (1)
21
does not affect the validity of any transaction.
22
Policies
23
(9) A policy formulated under subsection (1) is not a legislative
24
instrument.
25
Investment of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Part
4
Section 40
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
33
40 Derivatives
1
(1) The Future Fund Board may acquire a derivative for the purpose
2
of:
3
(a) protecting the value of an investment of the Aboriginal and
4
Torres Strait Islander Land and Sea Future Fund (other than a
5
derivative); or
6
(b) protecting the return on an investment of the Aboriginal and
7
Torres Strait Islander Land and Sea Future Fund (other than a
8
derivative); or
9
(c) achieving indirect exposure to financial assets (other than
10
derivatives) for a purpose in connection with the Aboriginal
11
and Torres Strait Islander Land and Sea Future Fund; or
12
(d) achieving transactional efficiency for a purpose in connection
13
with the Aboriginal and Torres Strait Islander Land and Sea
14
Future Fund;
15
but must not acquire a derivative for the purpose of speculation or
16
leverage.
17
(2) The acquisition of a derivative under subsection (1) of this section
18
must be consistent with the investment strategy embodied in a
19
policy formulated by the Future Fund Board under
20
subsection 39(1).
21
(3) A derivative acquired under subsection (1) is to be held in the
22
name of the Future Fund Board.
23
(4) A derivative acquired under subsection (1) is taken to be an
24
investment of the Aboriginal and Torres Strait Islander Land and
25
Sea Future Fund.
26
41 Additional financial assets
27
An asset is taken to be an investment of the Aboriginal and Torres
28
Strait Islander Land and Sea Future Fund if the Future Fund Board
29
becomes the holder of the financial asset as a result of:
30
(a) the Board's holding of an investment of the Fund; or
31
Part 4 Investment of the Aboriginal and Torres Strait Islander Land and Sea Future
Fund
Section 42
34
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
(b) the exercise of any rights or powers conferred on the Board
1
in its capacity as the holder of an investment of the Fund.
2
42 Securities lending arrangements
3
(1) The Future Fund Board may enter into securities lending
4
arrangements for a purpose in connection with the Aboriginal and
5
Torres Strait Islander Land and Sea Future Fund.
6
(2) Any money received by the Future Fund Board under a securities
7
lending arrangement entered into under subsection (1) is to be
8
credited to the Aboriginal and Torres Strait Islander Land and Sea
9
Future Fund Special Account.
10
(3) To avoid doubt, a securities lending arrangement entered into
11
under subsection (1) may provide for the Future Fund Board to
12
realise an investment of the Aboriginal and Torres Strait Islander
13
Land and Sea Future Fund.
14
(4) A financial asset is taken to be an investment of the Aboriginal and
15
Torres Strait Islander Land and Sea Future Fund if, as the result of
16
the operation of a securities lending arrangement entered into
17
under subsection (1), the Future Fund Board becomes the holder of
18
the financial asset.
19
43 Investment managers
20
(1) The Future Fund Board may engage one or more investment
21
managers for purposes in connection with the Aboriginal and
22
Torres Strait Islander Land and Sea Future Fund.
23
(2) The Future Fund Board must not:
24
(a) invest amounts under subsection 30(1); or
25
(b) acquire derivatives under subsection 40(1); or
26
(c) enter into a securities lending arrangement under
27
subsection 42(1); or
28
(d) realise financial assets that are investments of the Aboriginal
29
and Torres Strait Islander Land and Sea Future Fund;
30
unless the Board does so:
31
Investment of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Part
4
Section 44
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
35
(e) through an investment manager engaged by the Board under
1
subsection (1); 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 Board under subsection (1) operates within this
6
Act.
7
(4) The Future Fund Board must ensure that any investment manager
8
engaged by the Board under subsection (1) reports to the Board
9
and the Agency on the state of the investments of the Aboriginal
10
and Torres Strait Islander Land and Sea Future Fund at such times
11
and in such manner as the Board determines.
12
44 Refund of franking credits
13
A refund of a tax offset under the Income Tax Assessment Act 1997
14
is to be credited to the Aboriginal and Torres Strait Islander Land
15
and Sea Future Fund Special Account if:
16
(a) the Future Fund Board receives the refund; and
17
(b) the tax offset is attributable to an investment of the
18
Aboriginal and Torres Strait Islander Land and Sea Future
19
Fund.
20
Note 1:
See also section 84B of the Future Fund Act 2006.
21
Note 2:
For refunds of tax offsets, see Division 63 of the Income Tax
22
Assessment Act 1997.
23
45 Realisation of non-financial assets
24
(1) This section applies if the Future Fund Board becomes aware of
25
the fact that:
26
(a) an asset held by the Board as an investment of the Aboriginal
27
and Torres Strait Islander Land and Sea Future Fund has
28
ceased to be a financial asset; or
29
(b) an asset acquired by the Board, purportedly as an investment
30
of the Aboriginal and Torres Strait Islander Land and Sea
31
Future Fund, is not a financial asset.
32
Part 4 Investment of the Aboriginal and Torres Strait Islander Land and Sea Future
Fund
Section 46
36
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
(2) The Future Fund Board must realise the asset as soon as
1
practicable after the Board becomes aware of the fact.
2
(3) This Act (other than this section) applies in relation to the asset
3
(including in relation to the realisation of the asset) as if the asset
4
had been a financial asset, and an investment of the Aboriginal and
5
Torres Strait Islander Land and Sea Future Fund, from the time of
6
its acquisition by the Future Fund Board until the realisation.
7
46 Additional function of the Future Fund Board
8
The functions of the Future Fund Board include the function of
9
investing amounts in accordance with this Act.
10
Reporting obligations etc. Part 5
Section 47
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
37
Part 5--Reporting obligations etc.
1
2
47 Simplified outline of this Part
3
•
The Finance Minister may provide reports, documents and
4
other information to Ministers.
5
•
The Future Fund Board must keep the responsible Ministers
6
informed of its operations under this Act. It may also be
7
required by the Finance Minister to provide reports and
8
provide information.
9
48 Finance Minister may require the Future Fund Board to prepare
10
reports or give information
11
Reports and information
12
(1) The Finance Minister may, by written notice given to the Future
13
Fund Board, require the Board to:
14
(a) prepare a report or document about one or more specified
15
matters relating to the performance of the Board's functions
16
under this Act; and
17
(b) give copies of the report or document to the Finance Minister
18
within the period specified in the notice.
19
Compliance
20
(2) The Future Fund Board must comply with a requirement under
21
subsection (1).
22
Publication of reports and documents
23
(3) The Finance Minister may cause a report or document under
24
subsection (1) to be published (whether on the internet or
25
otherwise).
26
Part 5 Reporting obligations etc.
Section 49
38
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
Reports and documents
1
(4) A report or document under subsection (1) is not a legislative
2
instrument.
3
49 Keeping the responsible Ministers informed etc.
4
(1) The Future Fund Board must keep the responsible Ministers
5
informed of the operations of the Board under this Act.
6
(2) The Future Fund Board must give the Finance Minister such
7
reports, documents and information in relation to those operations
8
as are appropriate.
9
50 Finance Minister may give reports to other Ministers etc.
10
The Finance Minister may give a Minister any of the following:
11
(a) a report or document under subsection 48(1) or 49(2);
12
(b) any other information or document obtained by the Finance
13
Minister under this Act.
14
Miscellaneous Part 6
Section 51
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
39
Part 6--Miscellaneous
1
2
51 Simplified outline of this Part
3
•
This Part deals with miscellaneous matters, such as
4
delegations and rules.
5
52 Delegation by the Finance Minister
6
(1) The Finance Minister may, by writing, delegate any or all of the
7
Finance Minister's functions or powers under sections 13, 23 and
8
26 to:
9
(a) the Secretary of the Finance Department; or
10
(b) an SES employee, or acting SES employee, in the Finance
11
Department.
12
Note:
The expressions SES employee and acting SES employee are defined
13
in section 2B of the Acts Interpretation Act 1901.
14
(2) The Finance Minister may, by writing, delegate any or all of the
15
Finance Minister's powers under section 18 to:
16
(a) the Secretary of the Finance Department; or
17
(b) an SES employee, or acting SES employee, in the Finance
18
Department; or
19
(c) the Chair (within the meaning of section 5 of the Future
20
Fund Act 2006); or
21
(d) an SES employee, or acting SES employee, in the Agency.
22
Note:
The expressions SES employee and acting SES employee are defined
23
in section 2B of the Acts Interpretation Act 1901.
24
(3) In performing functions, or exercising powers, under a delegation
25
under subsection (1) or (2), the delegate must comply with any
26
directions of the Finance Minister.
27
Part 6 Miscellaneous
Section 53
40
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
No. , 2018
53 Delegation by the Treasurer
1
(1) The Treasurer may, by writing, delegate any or all of the
2
Treasurer's powers under section 13 to:
3
(a) the Secretary of the Treasury Department; or
4
(b) an SES employee, or acting SES employee, in the Treasury
5
Department.
6
Note:
The expressions SES employee and acting SES employee are defined
7
in section 2B of the Acts Interpretation Act 1901.
8
(2) In exercising powers under a delegation under subsection (1), the
9
delegate must comply with any directions of the Treasurer.
10
54 Delegation by the Indigenous Affairs Minister
11
(1) The Indigenous Affairs Minister may, by writing, delegate any or
12
all of the Indigenous Affairs Minister's functions under section 22
13
to:
14
(a) the Secretary of the Indigenous Affairs Department; or
15
(b) an SES employee, or acting SES employee, in the Indigenous
16
Affairs Department.
17
Note:
The expressions SES employee and acting SES employee are defined
18
in section 2B of the Acts Interpretation Act 1901.
19
(2) In performing functions under a delegation under subsection (1),
20
the delegate must comply with any directions of the Indigenous
21
Affairs Minister.
22
55 Review of operation of Act
23
The responsible Ministers must cause a review of the operation of
24
this Act to be undertaken before the tenth anniversary of the
25
commencement of this section.
26
56 Rules
27
(1) The Finance Minister may, by legislative instrument, make rules
28
prescribing matters:
29
Miscellaneous Part 6
Section 56
No. , 2018
Aboriginal and Torres Strait Islander Land and Sea Future Fund Bill
2018
41
(a) required or permitted by this Act to be prescribed by the
1
rules; or
2
(b) necessary or convenient to be prescribed for carrying out or
3
giving effect to this Act.
4
(2) To avoid doubt, the rules may not do the following:
5
(a) create an offence or civil penalty;
6
(b) provide powers of:
7
(i) arrest or detention; or
8
(ii) entry, search or seizure;
9
(c) impose a tax;
10
(d) set an amount to be appropriated from the Consolidated
11
Revenue Fund under an appropriation in this Act;
12
(e) directly amend the text of this Act.
13