Commonwealth of Australia Explanatory Memoranda

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NATIONAL RECONSTRUCTION FUND CORPORATION BILL 2023

                             2022-2023




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                           THE SENATE




NATIONAL RECONSTRUCTION FUND CORPORATION BILL 2023




    SUPPLEMENTARY EXPLANATORY MEMORANDUM




      Amendments to be Moved on Behalf of the Government




  (Circulated by authority of the Minister for Industry and Science,
                   the Honourable Ed Husic MP)
AMENDMENT TO THE NATIONAL RECONSTRUCTION FUND CORPORATION
                         BILL 2023

OUTLINE

The National Reconstruction Fund Corporation Bill 2023 (the Bill) was introduced in the
House of Representatives on 30 November 2022 and passed in that chamber on
9 March 2023.
These amendments to the Bill add a requirement for the Board of the National Reconstruction
Fund Corporation (the Corporation) to formulate policies in relation to the impact of its
investments (and those of its designated subsidiaries) on First Nations Australians.

FINANCIAL IMPACT STATEMENT

The proposed amendments will not change the financial impact of the Bill.

A total of $15 billion will be made available by the Bill for the purposes of the Corporation
with $5 billion available from commencement. The remaining $10 billion will be made
available by 2 July 2029 in instalments as determined by the Ministers. The Corporation is
expected to generate revenue from its investments, which will be available for reinvestment.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
                    National Reconstruction Fund Corporation Bill 2023
This statement sets out the compatibility of amendments to the National Reconstruction Fund
Corporation Bill 2023.

Overview of amendments to the Bill

The National Reconstruction Fund Corporation Bill 2023 (the Bill) was introduced in the
House of Representatives on 30 November 2022 and passed in that chamber on
9 March 2023.
These amendments to the Bill add a requirement for the Board of the National Reconstruction
Fund Corporation (the Corporation) to formulate policies in relation to the impact of its
investments (and those of its designated subsidiaries) on First Nations Australians.
Human rights implications of amendments to the Bill

The amendments require the Corporation to develop policies regarding the impact of
investments of the Corporation (and investments of designated subsidiaries) on First Nations
Australians. The Board of the Corporation will be required to develop a policy for itself, and
for designated subsidiaries.

Developing these policies will have a beneficial impact with respect to the right to self-
determination under Article 1 of the International Covenant on Civil and Political Rights and
Article 1 of the International Covenant on Environmental, Social and Cultural Rights. The
precise engagement with those rights will depend on the policies as they are developed.

Conclusion

The amendments are compatible with human rights because they will have a positive impact
with respect to the right to self-determination. No other human rights are engaged by the
amendments.
NOTES ON AMENDMENTS

Amendment 1 --Clause 75
1.   This amendment inserts new paragraph 75(1)(aa) to create a requirement for the Board
     to formulate policies on the impact of investments of the Corporation on First Nations
     Australians that must be complied with by the Corporation. Developing this policy
     aligns with the Board's obligation to have regard to the economic participation of First
     Nations Australians under clause 17. It is expected that such a policy would address
     matters including opportunities for participation with, procurement from and
     employment of First Nations Australians and businesses.

Amendment 2--Clause 75
2.   This amendment inserts new paragraph 75(1)(da) so that the requirement to formulate
     policies on the impact of investments of the Corporation on First Nations Australians
     also applies for designated subsidiaries of the Corporation.