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Future Drought Fund Bill 2019

2019

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

As passed by both Houses

 

 

 

 

Future Drought Fund Bill 2019

 

No.      , 2019

 

 

 

 

 

A Bill for an Act to establish the Future Drought Fund, and for other purposes

   

   

   



Contents

Part 1—Preliminary                                                                                                              1

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

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

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

4............ Simplified outline of this Act.............................................................. 2

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

6............ Crown to be bound............................................................................. 9

7............ Extension to external Territories.......................................................... 9

8............ Extra-territorial application.................................................................. 9

Part 2—Future Drought Fund                                                                                     10

Division 1—Introduction                                                                                           10

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

Division 2—Establishment of the Future Drought Fund and the Future Drought Fund Special Account                                                                                                                       11

10.......... Establishment of the Future Drought Fund....................................... 11

11.......... Transfer of balance of the Building Australia Fund Special Account 11

12.......... Transfer of investments of the Building Australia Fund................... 11

13.......... Establishment of the Future Drought Fund Special Account............ 12

Division 3—Credits of amounts to the Future Drought Fund Special Account 13

14.......... Credits of amounts............................................................................ 13

Division 4—Debits of amounts from the Future Drought Fund            14

15.......... Purpose of the Future Drought Fund Special Account—main purpose 14

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

17.......... Purposes of the Future Drought Fund Special Account—purposes not related exclusively to the Future Drought Fund.......................................................................................................... 15

18.......... Future Fund Board must ensure that the balance of the Future Drought Fund Special Account is sufficient to cover authorised debits etc.......................................................................... 17

19.......... Transfers from the Future Drought Fund to the Future Fund........... 17

Part 3—Arrangements and grants relating to drought resilience           18

Division 1—Introduction                                                                                           18

20.......... Simplified outline of this Part............................................................ 18

Division 2—Arrangements and grants                                                               20

21.......... Arrangements and grants.................................................................. 20

22.......... Terms and conditions of grants......................................................... 21

23.......... Drought Minister has powers etc. of the Commonwealth................. 21

24.......... Conferral of powers on the Drought Minister................................... 22

25.......... Compliance with Drought Resilience Funding Plan.......................... 22

26.......... Constitutional limits.......................................................................... 22

27.......... Executive power of the Commonwealth............................................ 24

27A....... Publication of information relating to arrangements and grants......... 24

Division 3—Advice                                                                                                        25

28.......... Drought Minister must request advice from the Regional Investment Corporation Board       25

29.......... Compliance with Drought Resilience Funding Plan.......................... 25

30.......... Disclosure of interests....................................................................... 26

Division 4—Drought Resilience Funding Plan                                               28

31.......... Drought Resilience Funding Plan..................................................... 28

32.......... Consultation before determining a Drought Resilience Funding Plan 29

32A....... Productivity Commission review of effectiveness of Drought Resilience Funding Plan          29

Division 5—Agriculture Future Drought Resilience Special Account 31

33.......... Agriculture Future Drought Resilience Special Account................... 31

34.......... Transfers to the Agriculture Future Drought Resilience Special Account                31

35.......... Other credits to the Agriculture Future Drought Resilience Special Account           32

36.......... Purposes of the Agriculture Future Drought Resilience Special Account                32

Division 5A—Channelling State/Territory grants through the COAG Reform Fund    34

36AA.... Channelling State/Territory grants through the COAG Reform Fund 34

36AB.... Debits from the COAG Reform Fund.............................................. 34

Division 6—Future Drought Fund Consultative Committee                  35

Subdivision A—Preliminary                                                                                  35

36A....... Definitions........................................................................................ 35

Subdivision B—Establishment of the Committee                                             35

36B....... Future Drought Fund Consultative Committee................................. 35

Subdivision C—Functions and powers of the Committee                               35

36C....... Functions of the Committee.............................................................. 35

36D....... Drought Minister must request advice from Committee about draft Drought Resilience Funding Plan   35

36E........ Drought Minister must request advice from the Committee on design relating to arrangements and grants             36

36F........ Powers of the Committee.................................................................. 36

Subdivision D—Membership etc. of the Committee                                         36

36G....... Membership of the Committee.......................................................... 36

36H....... Appointment of members of the Committee...................................... 36

36J........ Period of appointment for members of the Committee...................... 37

36K....... Acting appointments......................................................................... 37

36M...... Remuneration.................................................................................... 38

36N....... Disclosure of interests to the Drought Minister................................ 38

36P........ Outside work.................................................................................... 39

36Q....... Leave of absence............................................................................... 39

36R....... Resignation....................................................................................... 39

36S........ Termination of appointment.............................................................. 39

36T........ Other terms and conditions............................................................... 40

Part 4—Investment of the Future Drought Fund                                             41

37.......... Simplified outline of this Part............................................................ 41

38.......... Objects of investment of the Future Drought Fund........................... 41

39.......... Investment of the Future Drought Fund............................................ 41

40.......... Management of investments of the Future Drought Fund................. 42

41.......... Future Drought Fund Investment Mandate....................................... 42

42.......... Obligation on Future Fund Board in performing investment functions 44

43.......... Limitation on Future Drought Fund Investment Mandate................. 44

44.......... Future Fund Board to be consulted on Future Drought Fund Investment Mandate 44

45.......... Compliance with Future Drought Fund Investment Mandate........... 45

46.......... Future Fund Board must not trigger the takeover provisions of the Corporations Act 2001     46

47.......... Borrowing......................................................................................... 46

48.......... Future Drought Fund investment policies......................................... 47

49.......... Derivatives........................................................................................ 48

50.......... Additional financial assets................................................................. 49

51.......... Securities lending arrangements........................................................ 49

52.......... Investment managers......................................................................... 49

53.......... Refund of franking credits................................................................ 50

54.......... Realisation of non-financial assets.................................................... 50

55.......... Additional function of the Future Fund Board.................................. 51

Part 5—Reporting obligations etc.                                                                              52

56.......... Simplified outline of this Part............................................................ 52

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

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

59.......... Finance Minister may give reports to other Ministers etc.................. 53

Part 6—Miscellaneous                                                                                                        54

60.......... Simplified outline of this Part............................................................ 54

61.......... Delegation by the Finance Minister................................................... 54

62.......... Delegation by the Treasurer.............................................................. 54

63.......... Delegation by the Drought Minister.................................................. 55

64.......... Transitional—receipts relating to the Building Australia Fund.......... 55

65.......... Review of operation of Act............................................................... 55

66.......... Rules................................................................................................. 56



A Bill for an Act to establish the Future Drought Fund, and for other purposes

The Parliament of Australia enacts: