Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Emergency Response Fund (Consequential Amendments) Bill 2019

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

`              

 

2019

 

 

 

 

THE P A R L I A M ENT O F THE C O MM ON W E A L TH O F A U S T R A L I A

 

 

 

 

 

 

H OU S E OF R E P R E S E N T A T I VES

 

 

 

 

 

 

EMERGENCY RESPONSE FUND (CONSEQUENTIAL AMENDMENTS) B I L L 2019

 

 

 

 

 

EX P L A N AT O R Y M E M O R A NDUM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of the M i n i s t e r f o r F i n a n c e ,

S e n a t or t he H on M a t h i a s C o r m a nn)

 

 

T a bl e o f a b b r e vi a tio n s a n d c o m m o n t e r m s

 

A bb re v i a t i on or

c o m m on te r m

Description

Agency

means the Future Fund Management Agency established by section 74 of the Future Fund Act 2006

ATSILSFF

means the Aboriginal and Torres Strait Islander Land and Sea Future Fund established by section 9 of the ATSILSFF Act

ATSILSFF Act

means the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018

ATSILSFF Special Account

means the Aboriginal and Torres Strait Islander Land and Sea Future Fund Special Account established by section 12 of the ATSILSFF Act

COAG Reform Fund

means the COAG Reform Fund established by section 5 of the COAG Reform Fund Act 2008

COAG Reform Fund Act

means the COAG Reform Fund Act 2008

DCAF

means the DisabilityCare Australia Fund established by section 10 of the DCAF Act

DCAF Act

means the DisabilityCare Australia Fund Act 2013

DCAF Special Account

means the DisabilityCare Australia Fund Special Account established by section 11 of the DCAF Act

EIF

means the Education Investment Fund established by section 131 of the NBF Act

EIF Special Account

means the Education Investment Fund Special Account established by section 132 of the NBF Act

Emergency Response Minster

means:

(a)     if there is a Minister whose title includes “Emergency Management” - that Minister; or

(b)    the Minister declared by the Prime Minister, by notifiable instrument, to be the Emergency Management Minister for the purposes of this Act.

Finance Minister

has the same meaning as defined in section 8 of the PGPA Act

FDF

means the Future Drought Fund established by section 10 of the Future Drought Fund Act 2019

FDF Act

means the Future Drought Fund Act 2019

FDF Special Account

means the Future Drought Fund Special Account established by section 13 of the FDF Act

Future Fund

means the Future Fund established by section 11 of the Future Fund Act

Future Fund Act

means the Future Fund Act 2006

Future Fund Board

means the Future Fund Board of Guardians established by section 34 of the Future Fund Act

Future Fund Special Account

means the Future Fund Special Account established by section 12 of the Future Fund Act

Legislation Act

means the Legislation Act 2003

MRFF

means the Medical Research Future Fund established by section 11 of the MRFF Act

MRFF Act

means the Medical Research Future Fund Act 2015

MRFF Special Account

means the Medical Research Future Fund Special Account established by section 14 of the MRFF Act

NBF Act

means the Nation-building Funds Act 2008

PGPA Act

means the Public Governance, Performance and Accountability Act 2013

Responsible Ministers

means the following:

(a)       the Treasurer; and

(b)       the Finance Minister



EMERGENCY RESPONSE FUND (CONSEQUENTIAL AMENDMENTS) BILL 2019

 

OUTLINE

 

The Emergency Response Fund (Consequential Amendments) Bill 2019 (the Bill) makes a number of consequential amendments to other pieces of legislation required to enable the effective operation of the Emergency Response Fund at commencement. It accompanies the Emergency Response Fund Bill 2019 (the substantive Bill) that has prompted the need for the Bill.

 

The substantive Bill establishes the Emergency Response Fund as a dedicated financial asset to provide a secure revenue stream to be used for emergency response and recovery from natural disasters that have a significant or catastrophic impact.

 

The Emergency Response Fund will be established as the Emergency Response Fund Special Account and the investments of the Emergency Response Fund (made and managed by the Future Fund Board).

 

The consequential amendments made in the Bill support the establishment of the Emergency Response Fund in that they:

 

·          extend the Future Fund Board’s duties to manage the Emergency Response Fund; and

 

·          allow for amounts to be transferred between the Emergency Response Fund and the Future Fund to allow for proper apportioning of common expenses incurred by the Future Fund Board in managing the Emergency Response Fund, the Future Fund, the FDF, the ATSILSFF, the MRFF, and the DCAF.

 

The Bill amends the ATSILSFF Act, COAG Reform Fund Act, the DCAF Act, the FDF Act, the Future Fund Act and the MRFF Act.

 

The Bill closes the EIF by repealing the NBF Act. The last commitment from the EIF was announced in July 2013 and all commitments have been paid.

 

The Government is committed to a world class higher education system and is investing a record $17.7 billion in the university sector in 2019. This is projected to grow to more than $19 billion by 2022. The Government has recently made significant investments into education infrastructure projects including $150 million to support the relocation and redevelopment of the University of Tasmania’s Launceston and Burnie campuses, and a further $30 million earmarked for the establishment of a new Central Queensland School of Mining and Manufacturing.

 

The Emergency Response Fund will be established with an initial balance (money and investments) equal to the balance of the EIF immediately before the establishment of the Emergency Response Fund.

 

The Bill also provides for transitional arrangements including relating to reporting arrangements for the EIF.

 

Providing for a separate Bill for consequential amendments conforms to the Commonwealth practice to reduce the complexity of principal Acts.

 

Financial Impact Statement

 

The B ill h a s no f in a n c i a l imp ac t.

 

Statement of Compatibility with Human Rights

 

The Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (Cth).

 

Overview of the Bill

 

The Bill deals with consequential matters arising from the enactment of the Emergency Response Fund Act. This includes the following amendments:

 

·          amendments to the Future Fund Act to give the Future Fund Board functions in relation to the Emergency Response Fund;

 

·          amendments to the ATSILSFF Act, DCAF Act, the FDF Act, the Future Fund Act, and the MRFF Act to allow amounts to be transferred between the Emergency Response Fund and the Future Fund to allow for proper apportioning of common expenses incurred by the Future Fund Board in managing the ATSILSFF, the DCAF, the Emergency Response Fund, the FDF the Future Fund, and the MRFF; and

 

·          repeal of the NBF Act to close the EIF as a consequence of the decision to establish the Emergency Response Fund with an initial balance (money and investments) equal to the balance of the EIF immediately before the establishment of the Emergency Response Fund.

 

Human rights implications

 

The consequential amendments in the Bill are administrative or machinery in nature. None of these amendments directly advance or limit a relevant human right or freedom.

 

To the extent these amendments facilitate the establishment of the Emergency Response Fund, these amendments may indirectly engage the human rights or freedoms engaged by the Emergency Response Fund Bill 2009. The substantive Bill is compatible with human rights because payments from the Fund will support the steps to be taken to promote the right to the enjoyment of the highest attainable standard of physical and mental health enshrined in Article 12(2) of the International Covenant on Economic Social and Cultural Rights, and the right to an adequate standard of living, enshrined in Article 11(1) of the International Covenant on Economic Social and Cultural Rights

 

Conclusion

 

This Bill is compatible with human rights.

EMERGENCY RESPONSE FUND (CONSEQUENTIAL AMENDMENTS) BILL 2018

NOTES ON CLAUSES

 

Clause 1 - Short Title

1.                   This clause would provide for the Act to be cited as the Emergency Response Fund (Consequential Amendments) Act 2019 .

Clause 2 - Commencement

2.                   Clause 2 sets out commencement provisions for the Bill. Commencement details for specific sections of the Bill are included in the table in subclause 2(1).   

·          Item 1 of the table provides that the whole Act commences at the same time as the Emergency Response Fund Act 2019 , but the Act would not commence at all if the Emergency Response Fund Act 2019 does not commence.

3.       Subclause 2(2) clarifies that the information in column 3 of the table is not part of the Act.

Clause 3 - Schedules

4.                   Clause 3 p r ov i d es t h a t the legislation sp e c i f i e d i n a Sc h e du l e t o t h i s Ac t i s a me nd e d or repealed as s e t out in the applicable items i n t he relevant S c h e du l e . It also provides that any other item in a Schedule to the Act has effect according to its terms.

Schedule 1 - General Amendments

5.                   This schedule makes amendments to several Acts as a result of the establishment of the Emergency Response Fund .

Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018

6.                   I t e m 1 inserts new paragraph 16(a)(ia) in the ASTILSFF Act. The effect of this amendment is to provide that expenses incurred by the Future Fund Board in establishing and operating bank accounts related to the ATSILSFF can be met from the ATSILSFF Special Account to the extent that such expenses do not relate to any other Fund invested by the Future Fund Board, including the Emergency Response Fund.

7.                   It e m 2 inserts new paragraph 16(b)(ia) in the ASTILSFF Act. The effect of this amendment is to provide that the cost of i nsuran c e i ncurred b y the Future Fund Board i n re l a ti on t o t he ASTILSFF can be m et from the ASTILSFF Special Account to the e x t ent t hat such i nsurance p re mi u m s do not re l a t e t o a n yo t her Fund invested by the Future Fund Board, i nc l ud i n g t heEmergency Response Fund.

8.                   I t e m 3 inserts new paragraph 16(c)(ia) in the ASTILSFF Act. The effect of this amendment is to provide that e x p e ns e s i n c u rre d b y the Future Fund Board i n re l a ti on t o m a n a g i n g the ASTILSFF ca nbe m e t f r om the ASTILSFF Special Account to t he e x t e nt t h a t su c h expenses do not re l a t e t o a n y o t h e r F und invested by the Future Fund Board, i n c l ud i n g t he Emergency Response Fund .

 

 

 

 

COAG Reform Fund Act 2008

9.                   Item 4 inserts Note 2AC before Note 3 to subsection 5(2) of the COAG Reform Fund Act, to reflect that an amount originating in the Emergency Response Fund may be transferred to the COAG Reform Fund. This note would mirror Note 2A, Note 2AA and Note 2AB that refer to the ability to transfer amounts originating in the DCAF MRFF and FDF to the COAG Reform Fund.

10.               Item 5 inserts into the COAG Reform Fund Act a new paragraph 7(1)(bac), before paragraph 7(1)(d), to recognise that grants from the Emergency Response Fund to States and Territories are channelled through the COAG Reform Fund. The Emergency Response Fund Act 2019 requires that payments to States and Territories through the COAG Reform Fund are bound by the terms and conditions of a written agreement and are therefore exempt from the terms and conditions set out in this section.

11.               Item 6 inserts Note 1AC before Note 3 to subsection 7(3) to reflect that the channelling of grants to States and Territories from the Emergency Response Fund through the COAG Reform Fund is subject to the provisions of the Emergency Response Fund Act 2019 .

DisabilityCare Australia Fund Act 2013

12.               I t e m 7 inserts new paragraph 16(a)(ia) in the DCAF Act. The effect of this amendment is to provide that expenses incurred by the Future Fund Board in establishing and operating bank accounts related to the DCAF can be met from the DCAF Special Account to the extent that such expenses do not relate to any other Fund invested by the Future Fund Board, including the Emergency Response Fund.

13.               It e m 8 inserts new paragraph 16(b)(ia) in the DCAF Act. The effect of this amendment is to provide that the cost of i nsuran c e i ncurred b y the Future Fund Board i n re l a ti on t o t heDCAF can be m et from the DCAF Special Account to the e x t ent t hat such insurance p re mi u m s do not re l a t e t o a n yo t her Fund invested by the Future Fund Board, i nc l ud i n g t heEmergency Response Fund.

14.               I t e m 9 inserts new paragraph 16(c)(ia) in the DCAF Act. The effect of this amendment is to provide that e x p e ns e s i n c u rre d b y the Future Fund Board i n re l a ti on t o m a n a g i n g the DCAF ca nbe m e t f r om the DCAF Special Account to t he e x t e nt t h a t su c h e x p e ns e s do not re l a t e t o a n y o t h e r F und invested by the Future Fund Board, i n c l ud i n g t he Emergency Response Fund.

Future Drought Fund Act 2019

15.               I t e m 10 inserts new paragraph 17(a)(iia) in the FDF Act. The effect of this amendment is to provide that expenses incurred by the Future Fund Board in establishing and operating bank accounts related to the FDF can be met from the FDF Special Account to the extent that such expenses do not relate to any other Fund invested by the Future Fund Board, including the Emergency Response Fund.

16.               It e m 11 inserts new paragraph 17(b)(iia) in the FDF Act. The effect of this amendment is to provide that the cost of i nsuran c e i ncurred b y the Future Fund Board i n re l a ti on t o t heFDF can be m et from the FDF Special Account to the e x t ent t hat such insurance p re mi u m s do not re l a t e t o a n yo t her Fund invested by the Future Fund Board, i nc l ud i n g t heEmergency Response Fund.

17.               I t e m 12 inserts new paragraph 17(c)(iia) in the FDF Act. The effect of this amendment is to provide that e x p e ns e s i n c u rre d b y the Future Fund Board i n re l a ti on t o m a n a g i n g the FDF ca nbe m e t f r om the FDF Special Account to t he e x t e nt t h a t su c h e x p e ns e s do not re l a t e t o a n y o t h e r F und invested by the Future Fund Board, i n c l ud i n g t he Emergency Response Fund.

Future Fund Act 2006

18.               I t e m 13 amends t he n o t e to s ec t i on 4 of the Future Fund Act. The amended note c on f i r ms t h a t t he Future F und Board h a s a dd iti on a l f un c ti ons und e r the Emergency Response Fund Act 2019 .

19.               I t e m 14 inserts a definition of Emergency Management Minister in the Future Fund Act. This expression is defined as the Minister who has “Emergency Management” in their title. When making this assessment, a Minister’s formal title on the Government’s current Ministry list would be used as the authoritative reference. If there is no Minister with the word “Emergency Management” in their title, the relevant responsibilities under the Emergency Response Fund legislation will be determined by the Prime Minister. This determination will be a notifiable instrument .

20.               This item also ins er ts d ef i n iti ons of Emergency Response Fund and Emergency Response Fund Special Account . These expressions are defined by reference to the Emergency Response Fund Act 2019 .

21.               I t e m 15 amends No t e 2A t o sec ti on 13 of the Future Fund Act. The amended note explains that Schedule 2A to the Future Fund Act is about transfers of amounts from the Future Fund to the other Funds invested by the Future Fund Board, including the Emergency Response Fund .

22.               I t e m 16 inserts new paragraph 28(5)(bab) and Item 17 inserts new paragraphs 28(5)(ga) in the Future Fund Act. The effect of these amendments is to a ll ow the same person to be engaged as an investment manager for more than one Fund invested by the Future Fund Board, including the Emergency Response Fund .

23.               I t e m 18 amends the note to section 33 of the Future Fund Act. The amended note explains that the Future Fund B o ar d h a s a dd iti on a l f u n c ti ons und e r other legislation, including the Emergency Response Fund Act 2019 .

24.               I t e m 19 inserts new subparagraph 35(b)(iiia) in the Future Fund Act. This amendment provides that the Future Fund Board has the functions conferred on the Future Fund Board by t he Emergency Response Fund Act 2019 .

25.               I t e m 20 inserts new paragraph 55(3)(ba) in the Future Fund Act. This amendment provides t h a t t he Future Fund B o a r d s re p o r ti ng ob l i g a ti ons i n re l a ti on t o t he F u t u r e F u n d do not i n c l ude it s s e p a r a t e re p o r ti ng ob l i g a ti on t o t he r e spons i b l e M i n i s t er s und e r t he Emergency Response Fund Act 2019 .

26.               Item 21 inserts new paragraph 63(1)(ca) in the Future Fund Act, and Item 22 inserts new paragraph 63(2)(aba) in the Future Fund Act. These amendments ensure that neither a Future Fund Board member nor the Chair of the Future Fund Board breaches civil or criminal obligations under the Future Fund Act by performing an act that the Future Fund Board member or Chair is required to perform under the Emergency Response Fund Act 2019 .

 

27.               I t e m 23 inserts new subsection 81(1DA) and Item 24 inserts new subsection 81(2DA) in the Future Fund Act. These amendments re qu i r e t h a t t he a n n u a l r e po r t p re p a re d b y t h e C h a i r of t he Future Fund B o ar d i n c l u de a re p o r t on t he p e r f o r m a n c e of i nv e s tm e n t s of t he Emergency Response Fund a nd t he a m oun t s d e b it e d fr om t he Emergency Response Fund f o r pu r pos e s a ll o we d und e r the Emergency Response Fund Act 2019 . In addition, the annual report will also need to include b e n c h ma r ks i n re l a ti o n t o t he p erf o r m a n c e o f t he d e b it s fr om t he Emergency Response Fund . This is consistent with arrangements for the other Funds invested by the Future Fund Board.

28.               Item 25 inserts new paragraph 81(4)(daa) in the Future Fund Act. The effect of this amendment is to include the Emergency Management Minister in the list of Ministers to whom the nominated Minister must give a copy of the annual report given to the nominated Minister under section 46 of the PGPA Act.

29.               I t e m 26 inserts new paragraph 83B(1)(daa) in the Future Fund Act. The effect of this amendment is to allow the Future Fund Board t o d e le g a t e it s po we r t o e n g a ge i nv e s tm e nt m a n a g er s for purposes in connection with the Emergency Response Fund t o t he C h a i r of t he Future Fund B o ar d o r a SES e m p l o y e e in t he A g e n c y .

30.               I t e m 27 inserts new subparagraph 84(1)(b)(iiaa) a n d Item 28 inserts new subparagraph 84(1)(b)(viia) in the Future Fund Act. The effect of these amendments is to provide t h a t a n y amount of m on e y re c e i v e d b y the Future Fund Board m ust be c r e d it e d t o t he F u t u r e F und S p ec i a l A c c ount i f none of the legislation for the other Funds invested by the Future Fund Board requires the amount to be credited to those other Funds.

31.               I t e m 29 inserts new subsection 84(4AA) in the Future Fund Act. The effect of this amendment is t o a ll ow t he no mi n a t e d M i n i s t e r t o p r ov i de a wr itt e n d i rec ti on t o t he Future Fund B o a r d requiring a n a m ount cre d it e d t o t he F u t u r e F und S p ec i a l Account und e r subs e c ti on 84 ( 1) of the Future Fund Act t o be d e b it e d fr om t h e Future Fund Special Account a nd cre d it e d t o t he Emergency Response Fund Special Account.

32.               I t e m 30 inserts a new reference to ‘(4AA)’ in paragraph 84(5)(b) of the Future Fund Act. The effect of this amendment is to provide that if an amount is credited to the Future Fund Special Account under subsection 84(1) of the Future Fund Act, the sum of one or more amounts specified under new subsection 84(4AA) must not exceed the amount of the credit.

33.               I t e m 31 inserts a new reference to ‘(4AA)’ in subsection 84(6) of the Future Fund Act. The effect of this amendment is to declare that a wr itt e n di r e c tion m a de und e r new subsection  84(4AA) is not a le g i s l a ti ve i ns t r u m e n t . This is consistent with the status of other written directions that can be made by the nominated Minister under subsections 84(1A), 84(4A), and 84(4B) and 84(4C) for the transfer of amounts to other special accounts as provided for under those subsections.

34.               I t e m s 32 , 33 a n d 34 a me nd paragraphs 2(2)(a), 2(2)(b) and 2(2)(c) of S c h e du l e 2 of the Future Fund Act t o make reference to certain provisions of the Emergency Response Fund Act 2019 . The effect of these amendments is to provide t h a t the purposes of the Future Fund Special Account include debits by the Future Fund Board to pay b a nk a cc ount e x p e ns e s, i nsu ra n c e p r e mi u m s a nd c os t s re l a ti ng t o t he m a n a g em e nt of t he Emergency Response Fund .

35.               I t e m 35 adds a reference to the Emergency Response Fund in Clause 1 of Schedule 2A of the Future Fund Act. Clause 1 of Schedule 2A provides a simplified outline of the Schedule.

 

36.               Item 36 adds new section 5A to Schedule 2A to the Future Fund Act. New section 5A will allow the nominated Minister under the Future Fund Act to require, by writing, the reversal of a debit from the Emergency Response Fund to meet bank account, insurance premium or other costs relating to the Emergency Response Fund. This reversal is to be effected by debiting the Future Fund Special Account and crediting the Emergency Response Fund Special Account. The reversal amount cannot exceed the amount originally debited from the Emergency Response Fund Special Account. The nominated Minister’s written direction is declared not to be a legislative instrument.

Medical Research Future Fund Act 2015

37.               Item 37 inserts new subparagraph 19(a)(ib) in the MRFF Act. The effect of this amendment is to provide that expenses incurred by the Future Fund Board in establishing and operating bank accounts related to the MRFF can be met from the MRFF Special Account to the extent that such expenses do not relate to any other Fund invested by the Future Fund Board, including the Emergency Response Fund.

38.               Item 38 inserts new subparagraph 19(b)(ib) in the MRFF Act. The effect of this amendment is to provide that the cost of insurance incurred by the Future Fund Board in relation to the MRFF can be met from the MRFF Special Account to the extent that such insurance premiums do not relate to any other Fund invested by the Future Fund Board, including the Emergency Response Fund.

39.               Item 39 inserts new subparagraph 19(c)(ib) in the MRFF Act. The effect of this amendment is to provide that expenses incurred by the Future Fund Board in relation to managing the MRFF can be met from the MRFF Special Account to the extent that such expenses do not relate to any other Fund invested by the Future Fund Board, including the Emergency Response Fund.



 

Schedule 2 - Abolition of the Education Investment Fund

40.               This Schedule makes amendments to several Acts as a result of the closure of the EIF.

Part 1 - Repeal of the Nation-building Funds Act 2008

Nation-building Funds Act 2008

41.               Item 1 provides that the Nation-building Funds Act 2008 is repealed. On repeal of the Nation-building Funds Act 2008 , all instruments made under that Act, including the investment mandates, are also repealed.

Part 2 - Amendments

Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018

42.               Items 2, 3 and 4 repeal subparagraphs 16(a)(iv), 16(b)(iv) and 16(c)(iv) of the ATSILSFF Act which refer to provisions of the NBF Act that provide that the following expenses:

·            establishing and operating bank accounts;

·            the cost of insurance; and

·            costs of managing the Future Fund

incurred by the Future Fund Board in relation to the ATSILSFF can be met from the ATSILSFF Special Account, to the extent that they do not relate to any of the other Funds managed by the Future Fund. The effect of these amendments are to remove reference to the EIF from the list of other Funds invested by the Future Fund Board.

 

COAG Reform Fund Act 2008

43.               Item 5 repeals paragraph 7(1)(b) of the COAG Reform Fund Act to remove reference to the NBF Act. These references deal with the channelling of State and Territory grants through the COAG Reform Fund. Those grants are made out of money originating in the EIF. These references are no longer required due to the closure of the EIF.

44.               Item 6 repeals Note 1 to remove reference to the NBF Act to account for the amendments to that section in item 5.

 

DisabilityCare Australia Fund Act 2013

45.               Item 7 substitutes the definition of financial asset contained in the DCAF Act to refer to the definition of financial asset contained in the Future Fund Act.

46.               Items 8, 9 and 10 repeal subparagraphs 16(a)(iii) 16(b)(iii) and 16(c)(iii) of the DCAF Act which refer provisions of the NBF Act that provide that the following expenses:

·            establishing and operating bank accounts;

·            the cost of insurance; and

·            costs of managing the Future Fund

incurred by the Future Fund Board in relation to the DCAF can be met from the DCAF Special Account, to the extent that they do not relate to any of the other Funds managed by the Future Fund. The effect of these amendments are to remove reference to the EIF from the list of other Funds invested by the Future Fund Board.

Future Drought Fund Act 2019

47.               Items 11, 12, and 13 repeal subparagraphs 17(a)(iv) 17(b)(iv) and 17(c)(iv) of the FDF Act which refer to provisions of the NBF Act that provide that the following expenses:

·            establishing and operating bank accounts;

·            the cost of insurance; and

·            costs of managing the Future Fund

incurred by the Future Fund Board in relation to the FDF can be met from the FDF Special Account, to the extent that they do not relate to any of the other Funds managed by the Future Fund . The effect of these amendments are to remove reference to the EIF from the list of other Funds invested by the Future Fund Board.

 

Future Fund Act 2006

48.               Item 14 removes a reference to the NBF Act in a note to the simplified outcome of the Future Fund Act.

49.               Item 15 repeals a number of definitions from the Future Fund Act related to the EIF, which are no longer required due to its closure.

50.               Item 16 substitutes the definition of Health Minister contained in the NBF Act to refer to the definition of Health Minister contained in the MRFF Act.

51.               Item 17 repeals the definition of the Research Minister which is related to the EIF and is no longer required due to its closure.

52.               Item 18 removes reference to the EIF from note 2A after section 13 of the Future Fund Act, which refers to transfer of amounts from the Future Fund to other Funds managed by the Future Fund. This reference is no longer required due to the closure of the EIF.

53.               Item 19 repeals paragraphs 28(5)(b) and (e) of the Future Fund Act, which refer to a section of the NBF Act which relates to the EIF that will be repealed by item 1 of this Schedule. Subsection 28(5) of the Future Fund Act provides that an investment manager may be engaged in relation to more than one Fund managed by the Future Fund Board. The effect of this item is to remove the EIF from the list of Funds managed by the Future Fund Board.

54.               Item 20 removes a reference to the NBF Act from the simplified outline of the Future Fund Act that deals with the Future Fund Board. Item 21 removes the reference to the NBF Act from the list of Acts that confer functions on the Future Fund Board.

55.               Item 22 removes the reference to the NBF Act from the list of Acts that do not apply to the Future Fund Board in respect of keeping the responsible Ministers informed and providing reports, document and information to the nominated Minister (i.e. the Finance Minister). The NBF Act was excluded from the application of these provisions in the Future Fund Act as these responsibilities for the EIF were instead covered by sections 203 to 205 of the NBF Act. Transitional provisions at Item 43 provide for residual reporting requirements relating to the Education Investment Fund.

56.               Items 23 and 24 remove references to the NBF Act from the list of Acts that are not contravened, in relation to the Board’s or the Chair’s compliance with statutory duties, if an Act in the list required the Board or the Chair to do an act.

57.               Items 25, 26, 27 and 28 make amendments to repeal provisions from the Future Fund Act which set out the Future Fund’s reporting requirements in relation to the EIF.

 

58.               Item 29 repeals paragraph 83B(1)(c) of the Future Fund Act, which refers to a section of the NBF Act that will be repealed by Item 1 of this Schedule. The effect of this repeal is to remove the power for the Future Fund Board to delegate its powers to engage investment managers for purposes in relation to the EIF.

59.               Items 30, 31 and 32 repeal provisions in the Future Fund Act dealing with the EIF Special Account, which will be abolished by Item 1 of this Schedule. Items 33 and 34 repeal cross-references to the paragraph repealed by Item 31.

60.               Item 35 repeals references in Schedule 2 to the Future Fund Act, which provide that the following expenses:

·            establishing and operating bank accounts;

·            the cost of insurance; and

·            costs of managing the Future Fund

incurred by the Future Fund Board in relation to the Future Fund can be met from the Future Fund Special Account, to the extent that they do not relate to any of the other Funds managed by the Future Fund. The effect of these amendments is to remove reference to the EIF from the other Funds invested by the Future Fund Board.

61.               Item 36 removes reference to the EIF from the simplified outline of Schedule 2A to the Future Fund Act, which deals with transfers between funds managed by the Future Fund Board.

62.               Item 37 repeals clause 3 of Schedule 2A to the Future Fund Act, which provides a mechanism for amounts to be transferred from the Future Fund to the EIF.

Medical Research Future Fund Act 2015

63.               Items 38 and 39 make minor amendments to two simplified outlines and two definitions to reflect that the NBF Act is repealed.

64.               Item 40, 41 and 42 repeal subparagraphs 19(a)(iii) 19(b)(iii) and 19(c)(iii) of the MRRF Act which refer to provisions of the NBF Act that provide that the following expenses:

·            establishing and operating bank accounts;

·            the cost of insurance; and

·            costs of managing the Future Fund

incurred by the Future Fund Board in relation to the MRFF can be met from the MRFF Special Account, to the extent that they do not relate to any of the other Funds managed by the Future Fund The effect of these amendments are to remove reference to the EIF from the list of other Funds invested by the Future Fund Board.

Part 3 - Transitional provisions

Item 43 - Transitional - reporting obligations of the Future Fund Board of Guardians

65.               This item is a transitional provision that maintains the Finance Minister’s ability to request information and reports, and the Future Fund Board’s obligations to keep the responsible Ministers informed, in relation to the performance of the Future Fund Board’s functions and the operation of the Board in respect of the EIF, despite the repeal of the NBF Act by this Bill. This provision ensures that there is no gap in oversight and reporting about the EIF after its closure.

Item 44 - Transitional - reports

66.               This item is a transitional provision that maintains the existing arrangements for the preparation and tabling of the Future Fund’s annual report in relation to the EIF for the financial year in which this Bill commences, despite the repeal of provisions of the Future Fund Act dealing with the EIF by this Bill. This provision ensures that there is no gap in oversight and reporting about the EIF after its closure.

Item 45 - Transitional rules

67.               This item enables the Finance Minister to make rules, by legislative instrument, covering matters of a transitional nature (including savings or application provisions) relating to the amendments made by Schedule 2.

68.               Enabling the making of rules rather than regulations would accord with the Office of Parliamentary Counsel's Drafting Direction No. 3.8 - Subordinate Legislation. Paragraph 2 of that Drafting Direction states that "OPC's starting point is that subordinate instruments should be made in the form of legislative instruments (as distinct from regulations) unless there is good reason not to do so".

69.               Paragraph 3 of the Drafting Direction states that matters such as compliance and enforcement, the imposition of taxes, setting amounts to be appropriated, and amendments to the text of an Act, should be included in regulations unless there is a strong justification otherwise. The Bill does not intend to enable the rules to provide for any of the types of matters listed.

70.               In addition, this item would clarify that the rules made under this item would be a legislative instrument for the purposes of the Legislation Act. Pursuant to sections 38 and 39 of that Act, all legislative instruments and their explanatory statements must be tabled in both Houses of the Parliament within 6 sitting days of the date of registration of the instrument on the Federal Register of Legislation. Once tabled, the rules would be subject to the same level of Parliamentary scrutiny as regulations (including consideration by the Senate Standing Committee on Regulations and Ordinances), and a motion to disallow the rules may be moved in either House of the Parliament within 15 sitting days of the date the rules are tabled (see section 42 of the Legislation Act).

71.               Sub-item 40(2) would be a declaratory clause, included for the avoidance of doubt.