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Asset Recycling Fund Bill 2014

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2014

 

 

 

 

 

 

THE PARLIAME N T OF THE C O MMONWEALTH OF AU S TRAL I A

 

 

 

 

 

 

 

SENATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET RECYLING FUND BILL 2014

 

 

 

 

 

 

SUPPLEMENTA R Y EXPLAN A TORY MEMO R ANDUM

 

 

 

 

 

 

 

Amend m ents to be moved on behalf of the Government

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by the auth o rity of the Minister for Finance , Senator the Hon Mathias Cormann)

 



 

 



 



GENERAL OUTLINE

 

The Asset Recycling Fund Bill 2014 (the Bill) establishes the Asset Recycling Fund (ARF) as a dedicated vehicle for providing financial incentives to States and Territories to invest in infrastructure that contributes to a more prosperous economy. Payments from the ARF will also support investment in nation-building infrastructure and local initiatives, such as the Roads to Recovery Programme administered by the Department of Infrastructure and Regional Development.

 

The Bill passed the House of Representatives on 19 June 2014 and was introduced to the Senate on 23 June 2014. The Senate referred the Bill and accompanying Asset Recycling Fund (Consequential Amendments) Bill 2014 to the Senate Finance and Public Administration Legislation Committee (the Committee) for enquiry and report by 16 June 2014.  The Committee recommended the Bill be passed in its current form.

 

The proposed amendments to the Bill are necessary to update the commencement date and to address a number of other matters, primarily as a consequence of the delayed commencement.

 

FINANC I AL IMPACT STA T EMENT

 

The amendments to the Bill have no financial impact.

 

STA T EMENT OF COMPATABILITY WITH HUMAN RIGHTS

 

The amendments to the Bill do not:

·          engage any of the applicable rights or freedoms outlined in the Human Rights (Parliamentary Scrutiny) Act 2011 , such as encompassed in the International Covenant on Civil and Political Rights; or

·          limit any human rights, nor propose any offences or penalties.

 

This Bill, including the amendments, is therefore compatible with the human rights and freedoms recognised or declared in the international instruments listed in subsection 3(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 .

 



NOTES O N AME N DM E NTS

 

Item 1 updates clause 2 of the Bill to provide that the Bill will commence on the day after it receives Royal Assent.

 

Items 2 and 3 amend clause 4 of the Bill to take into account that the Public Governance, Performance and Accountability Act 2013 (the PGPA Act) came into effect from 1 July 2014. The amendments substitute references to the Financial Management and Accountability Act 1997 (the FMA Act) with references to the PGPA Act.

 

Item 4 and 5 amend subclause 8(10) to clarify that the Commonwealth can only make payments where it is permissible to do so under its Executive Power.

 

Item 6 amends clause 12 of the Bill to substitute references to the FMA Act with references to the PGPA Act.

 

Item 7 amends clause 12 of the Bill to update references to special accounts in order to provide consistency with the terminology of the PGPA Act.

 

Items 8 and 9 amend clause 13 of the Bill to give the Future Fund Board of Guardians (the Board) 28 days from commencement of the Bill to give effect to the transfer of money from the Building Australia Fund (BAF) and the Education Investment Fund (EIF).

 

Items 10 and 11 amend the notes to clauses 16 and 17 of the Bill to substitute references to the FMA Act with references to the PGPA Act.

 

Item 12 amends clause 21 to require States and Territories to be bound by the terms and conditions of a written agreement under which a grant of financial assistance is provided.

 

Items 13 and 14 amend clause 22 of the Bill to substitute references to the FMA Act with references to the PGPA Act, and to ensure the definition of a special account is consistent with the terminology of the PGPA Act.

 

Item 15 amends the note to clause 23 of the Bill to substitute references to the FMA Act with references to the PGPA Act.

 

Item 16 amends clause 27 of the Bill to require funding recipients to be bound by the terms and conditions of a written agreement under which a grant of financial assistance is provided.

 

Item 17 amends clause 28 of the Bill to require funding recipients to be bound by the terms and conditions of a written agreement under which they receive a payment.

 

Items 18 and 19 amend clause 34 of the Bill to give the Board 28 days from the commencement of the Bill to give effect the transfer of financial assets from the BAF and the EIF.

 

Item 20 amends clause 35 of the Bill to replace references to section 39 of the FMA Act with references to section 58 of the PGPA Act. This amendment will enable the Board to appropriately make and manage ARF investments as required by the PGPA Act.

 

Item 21 removes clause 47 of the Bill, which makes reference to section 40 of the FMA Act. There is no equivalent provision in the PGPA Act.