Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Clean Energy Finance Corporation Bill 2012

Part 5 Financial arrangements

Division 1 Clean Energy Finance Corporation Special Account

Subdivision A Establishment of Account

45   Establishment of Account

             (1)  The Clean Energy Finance Corporation Special Account is established by this section.

             (2)  The Account is a Special Account for the purposes of the Financial Management and Accountability Act 1997 .

Subdivision B Credits

46   Credits to the Account

                   There must be credited to the Account amounts equal to the following:

                     (a)  $2 billion, to be credited on 1 July 2013;

                     (b)  $2 billion, to be credited on 1 July 2014;

                     (c)  $2 billion, to be credited on 1 July 2015;

                     (d)  $2 billion, to be credited on 1 July 2016;

                     (e)  $2 billion, to be credited on 1 July 2017;

                      (f)  amounts paid to the Commonwealth under section 54.

Subdivision C Debits

47   Purposes of the Account

                   The purposes of the Account are as follows:

                     (a)  to make payments to the Corporation, so long as the payments are authorised by the nominated Minister under subsection 49(1);

                     (b)  to make payments to ARENA, so long as the payments are authorised by the nominated Minister under subsection 51(1).

48   Corporation’s request for a payment for itself

             (1)  The Corporation may request a payment by the Commonwealth of a specified amount:

                     (a)  to meet liabilities or expenses of the Corporation:

                              (i)  that are already due; or

                             (ii)  that will, or that are expected to, become due during the period specified in the request; or

                     (b)  so that the total balance of the Corporation’s bank account or accounts is at least the operating balance.

             (2)  The Corporation’s request must:

                     (a)  be in writing; and

                     (b)  specify:

                              (i)  the liabilities or expenses the payment is to meet; or

                             (ii)  the amount by which the Corporation’s bank balance falls short of the operating balance; and

                     (c)  be in accordance with the agreement under section 52.

             (3)  The Corporation must not request a payment under subsection (1) of an amount that would exceed the uncommitted balance of the Account at the time the request is made.

49   Nominated Minister’s authorisation of payment to Corporation

             (1)  As soon as practicable after a request is made under section 48, the nominated Minister must:

                     (a)  determine whether the request is in accordance with the agreement under section 52; and

                     (b)  if satisfied that it is—give written authorisation for the requested payment.

             (2)  If the nominated Minister gives written authorisation for the requested payment, the Commonwealth must, as soon as practicable, pay the authorised amount to the Corporation.

Note:          Under paragraph 47(a), the amount is debited from the Account.

             (3)  An authorisation under subsection (1) is not a legislative instrument.

50   Corporation’s request for a payment for ARENA

             (1)  The Corporation may, in writing, request a payment by the Commonwealth of a specified amount to ARENA.

             (2)  The Corporation must not make a request under subsection (1) unless the Board is satisfied that, if the specified amount were to be paid for with the Corporation’s money, it could, at the time the request is made, be paid out of earnings of the Corporation.

             (3)  The Corporation must not request a payment under subsection (1) of an amount that would exceed the uncommitted balance of the Account at the time the request is made.

51   Nominated Minister’s authorisation of payment to ARENA

             (1)  As soon as practicable after a request is made under section 50, the nominated Minister must:

                     (a)  determine whether the request is in accordance with the agreement under section 52; and

                     (b)  if satisfied that it is:

                              (i)  give written authorisation for the requested payment; and

                             (ii)  specify the day on which the payment is to be made (or days, if the Minister decides the payment should be made in instalments); and

                            (iii)  if the Minister decides the payment should be made in instalments—specify the instalment amounts for each day.

             (2)  If the nominated Minister gives written authorisation for the requested payment, the Commonwealth must, on the specified day or days, pay the authorised amount to ARENA.

Note:          Under paragraph 47(b), the amount is debited from the Account.

             (3)  An authorisation under subsection (1) is not a legislative instrument.

52   Agreement between nominated Minister and Corporation

                   The following matters are to be as agreed between the nominated Minister and the Corporation in relation to requests for payments under sections 48 and 50:

                     (a)  how requests are to be made, including:

                              (i)  the form in which a request is to be made; and

                             (ii)  the person to whom a request is to be given;

                     (b)  the period that may be specified in a request as mentioned in subparagraph 48(1)(a)(ii);

                     (c)  the amount of the Corporation’s operating balance for the purposes of paragraph 48(1)(b).



 

Division 2 The Corporation’s money

53   Application of the Corporation’s money

             (1)  The Corporation’s money consists of:

                     (a)  money paid to the Corporation under subsection 49(2); and

                     (b)  any other money received by the Corporation.

             (2)  The Corporation’s money is to be applied only:

                     (a)  in performing its investment function; and

                     (b)  in paying or discharging the costs, expenses and other obligations incurred by the Corporation in the performance of the Corporation’s functions; and

                     (c)  in paying any remuneration and allowances payable to any person under this Act; and

                     (d)  in making payments to the Commonwealth under section 54.

             (3)  Subsection (2) does not prevent the Corporation investing money in accordance with section 18 of the Commonwealth Authorities and Companies Act 1997 .

54   Managing surplus money

             (1)  If, at any time, the sum of the surplus money of:

                     (a)  the Corporation; and

                     (b)  any wholly-owned subsidiaries of the Corporation;

exceeds:

                     (c)  $20 million; or

                     (d)  if the regulations prescribe a different amount—the prescribed amount;

the responsible Ministers may, in writing, direct the Corporation to pay all or a specified part of the excess to the Commonwealth.

             (2)  Money of the Corporation or a subsidiary is surplus money if it is not immediately required for the purposes of the Corporation or subsidiary.

             (3)  The Corporation must comply with the direction.

Note:          The amount paid by the Corporation is credited to the Account under paragraph 46(b).

             (4)  The regulations may prescribe an amount for the purposes of paragraph (1)(d) by prescribing either or both of the following:

                     (a)  an amount;

                     (b)  a method or methods of calculating an amount.

55   Borrowing

Borrowing by the Corporation

             (1)  The Corporation must not borrow money for a purpose in connection with the Corporation’s functions unless the borrowing is authorised by subsection (2) or (3).

             (2)  The Corporation is authorised to borrow money for a purpose in connection with the Corporation’s functions if:

                     (a)  the purpose of the borrowing is to enable the Corporation to cover settlement of a transaction for the acquisition of one or more financial assets; and

                     (b)  at the time the relevant acquisition decision was made, it was likely that the borrowing would not be needed; and

                     (c)  the period of the borrowing does not exceed 7 days.

             (3)  The Corporation is authorised to borrow money for a purpose in connection with the Corporation’s functions if the borrowing takes place in the circumstances (if any) prescribed by the regulations.

             (4)  Nothing in subsection (1) affects the Corporation’s ability to obtain goods or services on credit in accordance with section 28A of the Commonwealth Authorities and Companies Act 1997 .

Borrowing by subsidiaries

             (5)  A wholly-owned subsidiary of the Corporation may borrow money from the Corporation (and the borrowing need not comply with subsection (2) or (3)).

             (6)  Section 29 of the Commonwealth Authorities and Companies Act 1997 does not apply to the Corporation in relation to borrowings by subsidiaries authorised by subsection (5).

56   Receipt of gifts

                   The Corporation may accept:

                     (a)  a gift of money; or

                     (b)  a gift of a financial asset;

if the nominated Minister authorises the Corporation, by written notice given to the Board, to accept the gift.

57   Taxation

             (1)  To avoid doubt, for the purposes of section 50-25 of the Income Tax Assessment Act 1997 , the Corporation is taken to be a public authority constituted under an Australian law.

Note:          This means that the Corporation is exempt from income tax.

             (2)  To avoid doubt, the Corporation is not subject to taxation under a law of a State or Territory, if the Commonwealth is not subject to the taxation.