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Higher Education Endowment Fund Bill 2007

 

 

 

 

 

 

Higher Education Endowment Fund Act 2007

 

No. 160, 2007

 

 

 

 

 

An Act about the Higher Education Endowment Fund, and for related purposes

   

   

   



Contents

Part 1—Introduction                                                                                                               2

1............ Short title............................................................................................ 2

2............ Commencement.................................................................................. 2

3............ Object................................................................................................. 2

4............ Simplified outline................................................................................ 2

5............ Definitions.......................................................................................... 3

6............ Financial assets................................................................................... 7

7............ Crown to be bound............................................................................. 7

8............ Extension to external Territories......................................................... 7

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

Part 2—The Higher Education Endowment Fund                                                  8

Division 1—Introduction                                                                                             8

10.......... Simplified outline................................................................................ 8

Division 2—Establishment of the Higher Education Endowment Fund etc.        9

11.......... Establishment of the Higher Education Endowment Fund................. 9

12.......... Establishment of the Higher Education Endowment Fund Special Account           9

Division 3—Credits of amounts to the Higher Education Endowment Fund      10

13.......... Initial credit of $5 billion to the Fund Account................................ 10

14.......... Subsequent credits of amounts to the Fund Account—determinations by the responsible Ministers   10

15.......... Credit of amounts to the Fund Account—gifts................................ 10

Division 4—Debits of amounts from the Higher Education Endowment Fund   12

16.......... Purposes of the Fund Account......................................................... 12

17.......... Future Fund Board must ensure that there is sufficient money in the Fund Account to cover authorised grants etc........................................................................................................... 14

Division 5—Transfers between the Higher Education Endowment Fund and the Future Fund               15

18.......... Transfers from the Future Fund to the Higher Education Endowment Fund          15

19.......... Transfers from the Higher Education Endowment Fund to the Future Fund          15

Part 3—Investment of the Higher Education Endowment Fund                  16

20.......... Simplified outline.............................................................................. 16

21.......... Objects of investment of the Fund................................................... 16

22.......... Investment of the Fund.................................................................... 17

23.......... Management of investments of the Fund......................................... 17

24.......... Higher Education Endowment Fund Investment Mandate.............. 17

25.......... Limitation on Higher Education Endowment Fund Investment Mandate               19

26.......... Future Fund Board to be consulted on Higher Education Endowment Fund Investment Mandate        20

27.......... Compliance with Higher Education Endowment Fund Investment Mandate         21

28.......... Future Fund Board must not trigger the takeover provisions of the Corporations Act 2001   22

29.......... Borrowing......................................................................................... 22

30.......... Higher Education Endowment Fund investment policies................. 23

31.......... Derivatives........................................................................................ 24

32.......... Additional financial assets................................................................ 24

33.......... Securities lending arrangements........................................................ 25

34.......... Investment managers........................................................................ 25

35.......... Custody of securities........................................................................ 26

36.......... Refund of franking credits................................................................ 26

37.......... Realisation of non-financial assets.................................................... 26

38.......... Additional function of the Future Fund Board................................. 27

Part 4—Grants of financial assistance to eligible higher education institutions      28

Division 1—Introduction                                                                                           28

39.......... Simplified outline.............................................................................. 28

Division 2—Higher Education Endowment Fund Advisory Board     30

40.......... Higher Education Endowment Fund Advisory Board...................... 30

41.......... Function of the Advisory Board...................................................... 30

42.......... Remuneration and allowances........................................................... 31

43.......... Disclosure of interests...................................................................... 31

44.......... Resignation....................................................................................... 31

Division 3—Authorisation of grants                                                                    33

45.......... Authorisation of grants..................................................................... 33

46.......... Limits on authorisation of grants...................................................... 33

47.......... Maximum Grants Rules.................................................................... 34

48.......... Calculation of maximum grants amount............................................ 35

49.......... Accumulated nominal earnings......................................................... 36

Division 4—Terms and conditions of grants                                                   37

50.......... Terms and conditions of grants of financial assistance to eligible higher education institutions             37

Part 5—Reporting obligations                                                                                        38

51.......... Nominated Minister may require Future Fund Board to prepare reports or give information               38

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

Part 6—Miscellaneous                                                                                                        40

53.......... Higher Education Endowment Fund Investment Mandate and Maximum Grant Rules—additional obligations of responsible Ministers....................................................................... 40

54.......... Nominated Minister......................................................................... 41

55.......... Delegation by the Education Minister.............................................. 41

56.......... Delegation by the Finance Minister................................................. 42

57.......... Regulations....................................................................................... 42

 



 

 

Higher Education Endowment Fund Act 2007

No. 160, 2007

 

 

 

An Act about the Higher Education Endowment Fund, and for related purposes

[ Assented to 24 September 2007 ]

The Parliament of Australia enacts: