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Part 2—Emergency Response Fund

Part 2 Emergency Response Fund

Division 1 Introduction

8   Simplified outline of this Part

•      The Emergency Response Fund consists of:

       (a)     the Emergency Response Fund Special Account; and

      (b)     the investments of the Emergency Response Fund.

•      The balance of the Education Investment Fund Special Account is transferred to the Emergency Response Fund Special Account. The investments of the Education Investment Fund become investments of the Emergency Response Fund.

•      The responsible Ministers may determine that additional amounts be credited to the Emergency Response Fund Special Account.

•      Each of the following is a purpose of the Emergency Response Fund Special Account:

       (a)     to transfer amounts to the Home Affairs Emergency Response Fund Special Account for the purposes of making payments and grants in relation to natural disasters;

      (b)     to transfer amounts to the COAG Reform Fund for the purposes of making grants to the States and Territories in relation to natural disasters.

•      The Emergency Response Fund Special Account can be debited in relation to costs and other obligations incurred by the Future Fund Board in managing the Emergency Response Fund.

Division 2 Establishment of the Emergency Response Fund and the Emergency Response Fund Special Account

9   Establishment of the Emergency Response Fund

             (1)  The Emergency Response Fund is established by this section.

             (2)  The Emergency Response Fund consists of:

                     (a)  the Emergency Response Fund Special Account; and

                     (b)  the investments of the Emergency Response Fund.

10   Transfer of balance of the Education Investment Fund Special Account

                   As soon as practicable after the commencement of this section, there is to be credited to the Emergency Response Fund Special Account an amount equal to the balance of the Education Investment Fund Special Account immediately before the commencement of this section.

Note:          The balance of the Education Investment Fund Special Account does not include the value of an investment of the Education Investment Fund.

11   Transfer of investments of the Education Investment Fund

Scope

             (1)  This section applies to a financial asset if, immediately before the commencement of this section, the asset was an investment of the Education Investment Fund.

Transfer

             (2)  Immediately after the commencement of this section, the financial asset is taken to cease to be an investment of the Education Investment Fund and to become an investment of the Emergency Response Fund.

12   Establishment of the Emergency Response Fund Special Account

             (1)  The Emergency Response Fund Special Account is established by this section.

             (2)  The Emergency Response Fund Special Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013 .

Note:          An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.

Division 3 Credits of amounts to the Emergency Response Fund Special Account

13   Credits of amounts

             (1)  The responsible Ministers may, by writing, determine that:

                     (a)  a specified amount is to be credited to the Emergency Response Fund Special Account on a specified day; or

                     (b)  a specified amount is to be credited to the Emergency Response Fund Special Account in specified instalments on specified days.

Note 1:       For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901 .

Note 2:       Amounts must also be credited to the Emergency Response Fund Special Account under sections 31, 38, 49, 51 and 62.

             (2)  A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.

Division 4 Debits of amounts from the Emergency Response Fund

14   Main purposes of the Emergency Response Fund Special Account

                   Each of the following is a purpose of the Emergency Response Fund Special Account:

                     (a)  to transfer amounts to the Home Affairs Emergency Response Fund Special Account in accordance with section 28 or 28A for the purposes of:

                              (i)  paying amounts payable by the Commonwealth under an arrangement made under section 20; and

                             (ii)  making grants under section 20;

                     (b)  to transfer amounts to the COAG Reform Fund in accordance with section 32 or 32A for the purposes of making grants to the States and Territories under section 20.

15   Purposes of the Emergency Response Fund Special Account—purposes related exclusively to the investments etc. of the Emergency Response Fund

                   Each of the following is a purpose of the Emergency Response Fund Special Account:

                     (a)  paying the costs of, or incidental to, the acquisition of financial assets under section 37;

                     (b)  paying expenses of an investment of the Emergency Response Fund;

                     (c)  paying the costs of, or incidental to, the acquisition of derivatives under section 47;

                     (d)  paying or discharging the costs, expenses and other obligations incurred by the Future Fund Board under a contract between the Board and an investment manager engaged under subsection 50(1);

                     (e)  paying or discharging the costs, expenses and other obligations incurred in connection with the establishment, maintenance or operation of a bank account of the Future Fund Board, if the bank account relates exclusively to the Emergency Response Fund;

                      (f)  paying a premium in respect of a contract of insurance entered into by the Future Fund Board exclusively in connection with the Emergency Response Fund;

                     (g)  paying or discharging any other costs, expenses, obligations or liabilities incurred by the Future Fund Board exclusively in connection with the Emergency Response Fund.

Note:          See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts).

16   Purposes of the Emergency Response Fund Special Account—purposes not related exclusively to the Emergency Response Fund

                   Each of the following is a purpose of the Emergency Response Fund Special Account:

                     (a)  paying or discharging the costs, expenses and other obligations incurred in connection with the establishment, maintenance or operation of a bank account of the Future Fund Board, if those costs, expenses or obligations are not covered by:

                              (i)  paragraph 15(e); or

                             (ii)  paragraph 2(1)(g) of Schedule 2 to the Future Fund Act 2006 ; or

                            (iii)  paragraph 16(e) of the Future Drought Fund Act 2019 ; or

                            (iv)  paragraph 18(e) of the Medical Research Future Fund Act 2015 ; or

                             (v)  paragraph 15(e) of the DisabilityCare Australia Fund Act 2013 ; or

                            (vi)  paragraph 15(e) of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018 ;

                     (b)  paying a premium in respect of a contract of insurance entered into by the Future Fund Board, if the premium is not covered by:

                              (i)  paragraph 15(f); or

                             (ii)  paragraph 2(1)(h) of Schedule 2 to the Future Fund Act 2006 ; or

                            (iii)  paragraph 16(f) of the Future Drought Fund Act 2019 ; or

                            (iv)  paragraph 18(f) of the Medical Research Future Fund Act 2015 ; or

                             (v)  paragraph 15(f) of the DisabilityCare Australia Fund Act 2013 ; or

                            (vi)  paragraph 15(f) of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018 ;

                     (c)  paying or discharging any other costs, expenses, obligations or liabilities incurred by the Future Fund Board, if the costs, expenses, obligations or liabilities are not covered by:

                              (i)  a paragraph of section 15; or

                             (ii)  a paragraph of subclause 2(1) of Schedule 2 to the Future Fund Act 2006 ; or

                            (iii)  a paragraph of section 16 of the Future Drought Fund Act 2019 ; or

                            (iv)  a paragraph of section 18 of the Medical Research Future Fund Act 2015 ; or

                             (v)  a paragraph of section 15 of the DisabilityCare Australia Fund Act 2013 ; or

                            (vi)  a paragraph of section 15 of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018 ;

                     (d)  paying remuneration and allowances of Future Fund Board members;

                     (e)  paying remuneration, and other employment-related costs and expenses, in respect of members of the staff of the Agency;

                      (f)  paying or discharging the costs, expenses and other obligations incurred by the Commonwealth or the Future Fund Board:

                              (i)  under a contract entered into under section 78 or 82 of the Future Fund Act 2006 ; or

                             (ii)  in connection with the operation of the Agency; or

                            (iii)  before section 131 of the Nation-building Funds Act 2008 is repealed, in connection with the management of the Education Investment Fund.

Note:          See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts).

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

                   The Future Fund Board must take all reasonable steps to ensure that the balance of the Emergency Response Fund Special Account is sufficient to cover the debits of amounts for the purposes specified in sections 14, 15 and 16.

Note:          This may require the Future Fund Board to realise an investment of the Emergency Response Fund in accordance with section 38.

18   Transfers from the Emergency Response Fund to the Future Fund

             (1)  If an amount is debited from the Future Fund Special Account for a purpose mentioned in subclause 2(2) of Schedule 2 to the Future Fund Act 2006 , the Finance Minister may, by writing, direct that, on a specified day, a specified amount is to be:

                     (a)  debited from the Emergency Response Fund Special Account; and

                     (b)  credited to the Future Fund Special Account.

             (2)  The specified amount must not exceed the amount debited from the Future Fund Special Account as mentioned in subsection (1).

             (3)  A direction under subsection (1) is not a legislative instrument.