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Asset Recycling Fund Bill 2014

2013-2014

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

Asset Recycling Fund Bill 2014

 

No.      , 2014

 

(Finance)

 

 

 

A Bill for an Act to establish the Asset Recycling Fund, and for related purposes

   

   

   



Contents

Part 1—Preliminary                                                                                                              1

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Simplified outline of this Act.............................................................. 2

4............ Definitions.......................................................................................... 2

5............ Crown to be bound............................................................................. 6

6............ Extension to external Territories.......................................................... 7

7............ Extra-territorial application.................................................................. 7

8............ Alternative constitutional basis............................................................ 7

9............ Object.................................................................................................. 9

Part 2—Asset Recycling Fund                                                                                      10

Division 1—Introduction                                                                                           10

10.......... Simplified outline of this Part............................................................ 10

Division 2—Establishment of the Asset Recycling Fund etc.                 11

11.......... Establishment of the Asset Recycling Fund...................................... 11

12.......... Establishment of the Asset Recycling Fund Special Account........... 11

Division 3—Credits of amounts to the Asset Recycling Fund               12

13.......... Initial credits to Special Account....................................................... 12

14.......... Subsequent credits of amounts.......................................................... 12

Division 4—Debits of amounts from the Asset Recycling Fund, etc. 14

Subdivision A—Purposes                                                                                        14

15.......... Purposes of the Asset Recycling Fund Special Account—main purposes               14

16.......... Purposes of the Asset Recycling Fund Special Account—purposes related exclusively to the investments etc. of the Asset Recycling Fund....................................................................... 14

17.......... Purposes of the Asset Recycling Fund Special Account—purposes not related exclusively to the Asset Recycling Fund.......................................................................................................... 15

Subdivision B—Grants channelling through COAG Reform Fund             17

18.......... Channelling of State/Territory grants payments through the COAG Reform Fund  17

19.......... Recommendations about grants payments......................................... 18

20.......... Debit from the COAG Reform Fund................................................ 18

21.......... Grant to a State or Territory.............................................................. 19

Subdivision C—Payments channelling through the Asset Recycling Fund Infrastructure Special Account            19

22.......... Establishment of the Asset Recycling Fund Infrastructure Special Account            19

23.......... Purpose of the Asset Recycling Fund Infrastructure Special Account 20

24.......... Channelling of payments through the Asset Recycling Fund Infrastructure Special Account  20

25.......... Recommendations about payments................................................... 21

26.......... Payments—debit from the Asset Recycling Fund Infrastructure Special Account   21

27.......... Grant to a person other than a State................................................... 22

28.......... Payment to a person other than a State.............................................. 22

Subdivision D—Obligation to ensure sufficient money                                   23

29.......... Future Fund Board must ensure that there is sufficient money in the Asset Recycling Fund Special Account to cover authorised debits etc.......................................................................... 23

Division 5—Inter-fund transfers                                                                           24

30.......... Transfers from the Asset Recycling Fund to the Future Fund.......... 24

Part 3—Investment of the Asset Recycling Fund                                              25

31.......... Simplified outline of this Part............................................................ 25

32.......... Objects of investment of the Asset Recycling Fund.......................... 25

33.......... Investment of the Asset Recycling Fund........................................... 26

34.......... Allocation of investments to the Asset Recycling Fund.................... 26

35.......... Management of investments of the Asset Recycling Fund................ 28

36.......... Asset Recycling Fund Investment Mandate...................................... 28

37.......... Limitation on Asset Recycling Fund Investment Mandate................ 30

38.......... Future Fund Board to be consulted on Asset Recycling Fund Investment Mandate                30

39.......... Compliance with Asset Recycling Fund Investment Mandate.......... 31

40.......... Future Fund Board must not trigger the takeover provisions of the Corporations Act 2001     32

41.......... Borrowing......................................................................................... 32

42.......... Asset Recycling Fund investment policies........................................ 33

43.......... Derivatives........................................................................................ 34

44.......... Additional financial assets................................................................. 35

45.......... Securities lending arrangements........................................................ 35

46.......... Investment managers......................................................................... 36

47.......... Custody of securities......................................................................... 36

48.......... Refund of franking credits................................................................ 36

49.......... Realisation of non-financial assets.................................................... 37

50.......... Additional function of the Future Fund Board.................................. 37

Part 4—Reporting obligations etc.                                                                              38

51.......... Simplified outline of this Part............................................................ 38

52.......... Finance Minister may require Future Fund Board to prepare reports or give information        38

53.......... Keeping the responsible Ministers informed etc............................... 39

54.......... Finance Minister may give reports to other Ministers etc.................. 39

Part 5—Miscellaneous                                                                                                        40

55.......... Simplified outline of this Part............................................................ 40

56.......... Delegation by the Finance Minister................................................... 40

57.......... Delegation by the Treasurer.............................................................. 41

58.......... Delegation by the Infrastructure Minister.......................................... 41

59.......... Rules................................................................................................. 41

 



A Bill for an Act to establish the Asset Recycling Fund, and for related purposes

The Parliament of Australia enacts: