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Future Fund Bill 2006

Part 3 Transfers of financial assets to the Future Fund

   

6   Transfers to the Fund—Commonwealth-owned financial assets

Transfer of financial assets

             (1)  If a target asset level declaration is in force for a financial year, the responsible Ministers may cause one or more Commonwealth-owned financial assets to be transferred to the Board during the financial year.

             (2)  The responsible Ministers must not cause financial assets to be transferred under subclause (1) during a financial year unless the sum of:

                     (a)  the balance of the Fund as at the start of a day that:

                              (i)  is identified in a written declaration made by the responsible Ministers as the balance day for the financial assets; and

                             (ii)  is not earlier than 3 months before the transfer of the financial assets; and

                     (b)  the value, as at the start of the balance day for the financial assets, of the financial assets; and

                     (c)  the value, as at the start of the balance day for the first-mentioned financial assets, of any other financial assets that have been transferred to the Board under subclause (1) since the start of the balance day for the first-mentioned financial assets; and

                     (d)  any amounts that have been credited to the Fund Account under subclause 2(1) or 3(1) during the period:

                              (i)  beginning at the start of the balance day for the first-mentioned financial assets; and

                             (ii)  ending immediately before the time when the first-mentioned financial assets are transferred; and

                     (e)  if a determination was in force under subclause 2(1) or 3(1) when the first-mentioned financial assets are transferred—so much of the amount specified in the determination as had not been credited to the Fund Account before the time when the first-mentioned financial assets are transferred;

does not exceed the target asset level specified in the target asset level declaration that:

                      (f)  is in force when the first-mentioned financial assets are transferred; and

                     (g)  relates to the financial year.

Note:          A target asset level declaration is given by the designated actuary under Schedule 3.

Investment of the Fund

             (3)  A financial asset transferred to the Board under subclause (1) is taken to be an investment of the Fund.

Realisation of financial asset etc.

             (4)  To avoid doubt, if a financial asset is transferred to the Board under subclause (1), this Act does not prevent:

                     (a)  the realisation of the financial asset under section 17; or

                     (b)  the disposal of the financial asset under a securities lending arrangement entered into under section 27.

Telstra sale scheme

             (5)  To avoid doubt, action taken under subclause (1) is not a Telstra sale scheme for the purposes of the Telstra Corporation Act 1991 .

Publication of details of transfer of financial assets

             (6)  As soon as practicable after financial assets are transferred to the Board under subclause (1), the nominated Minister must cause to be published on the Internet a statement setting out:

                     (a)  details of the transfer; and

                     (b)  the balance day for the financial assets.

Declaration

             (7)  A declaration under subparagraph (2)(a)(i) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003 .

7   Transfers of financial assets to the Fund—gifts

             (1)  The Board may accept a gift of one or more financial assets if the nominated Minister, by written notice given to the Board, authorises the acceptance of the gift.

             (2)  A financial asset accepted under subclause (1) is taken to be an investment of the Fund.

             (3)  A financial asset accepted under subclause (1) is taken to be transferred to the Board under that subclause.

             (4)  To avoid doubt, if a financial asset is transferred to the Board under subclause (1), this Act does not prevent:

                     (a)  the realisation of the financial asset under section 17; or

                     (b)  the disposal of the financial asset under a securities lending arrangement entered into under section 27.

             (5)  To avoid doubt, a financial asset may be transferred to the Board under subclause (1) even if the Commonwealth has a beneficial interest in the financial asset.

8   Ministerial directions about transferred financial assets

             (1)  If financial assets are or have been transferred to the Board under subclause 6(1) or 7(1), the nominated Minister may give the Board written directions about the financial assets.

Note:          For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901 .

             (2)  A direction under subclause (1) may:

                     (a)  require the Board not to realise the financial assets before the end of a specified period; or

                     (b)  relate to the exercise by the Board of specified:

                              (i)  rights (including voting rights); or

                             (ii)  powers;

                            conferred on the Board in its capacity as the holder of the financial assets.

             (3)  Subclause (2) does not limit subclause (1).

             (4)  Paragraph (2)(a) has effect despite subclauses 6(4) and 7(4).

             (5)  A direction under subclause (1) prevails over subsection 18(10) to the extent of any inconsistency.

             (6)  The nominated Minister must not give a direction under subclause (1) that is inconsistent with this Act (other than subsection 18(10)).

             (7)  The Board must comply with a direction under subclause (1).

             (8)  A failure to comply with a direction under subclause (1) does not affect the validity of any transaction.

             (9)  This clause does not limit subsection 18(1).

           (10)  As soon as practicable after a direction is given under subclause (1), the Chair must cause a copy of the direction to be published on the Internet.

           (11)  A direction under subclause (1) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003 .

9   Continuing effect of instruments relating to transferred financial assets

             (1)  If financial assets are transferred to the Board under subclause 6(1), the nominated Minister may, by writing, declare that a specified instrument relating to the assets continues to have effect after the transfer as if a reference in the instrument to the Commonwealth were a reference to the Board.

             (2)  A declaration under subclause (1) has effect accordingly.

             (3)  A declaration under subclause (1) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003 .