•   The Emergency Management Minister may, on behalf of the Commonwealth:

  (a)   make an arrangement with a person or body in relation to a natural disaster; and

  (b)   make a grant to a person or body in relation to a natural disaster.

•   This Part establishes the Disaster Ready Fund Payments Special Account.

•   Amounts will be transferred from the Disaster Ready Fund Special Account to the Disaster Ready Fund Payments Special Account. Those transfers are subject to an annual limit.

•   The purposes of the Disaster Ready Fund Payments Special Account are as follows:

  (a)   to pay amounts payable by the Commonwealth under arrangements relating to a natural disaster;

  (b)   to make grants relating to a natural disaster.

•   Amounts will be transferred from the Disaster Ready Fund Special Account to the Federation Reform Fund for the purposes of making grants to the States and Territories in relation to natural disasters. Those transfers are subject to an annual limit.