Commonwealth Consolidated Acts Commonwealth Consolidated ActsNote: See section 13.
The following is a simplified outline of this Schedule:
• An initial amount of $18 billion must be credited to the Fund Account.
• The responsible Ministers may determine that additional amounts are to be credited to the Fund Account, so long as the additional amounts do not result in the balance of the Fund exceeding the target asset level.
• The responsible Ministers may transfer Commonwealth - owned financial assets to the Fund.
Note: The target asset level is specified in a declaration (a target asset level declaration ) given by the designated actuary under Schedule 3. The target asset level represents the amount that is expected to offset the present value of projected unfunded superannuation liabilities.
Part 2 -- Credits of amounts to the Future Fund
2 Credit of $18 billion to the Fund Account
(1) Before 1 July 2006, the responsible Ministers must:
(a) by writing, determine that $18 billion is to be credited to the Fund Account on a specified day; or
(b) by writing, determine that $18 billion is to be credited to the Fund Account in specified instalments on specified days.
(2) A day must not be specified under paragraph (1)(a) or (b) unless the day occurs before 1 July 2006.
(3) A determination under subclause (1) is irrevocable.
(4) A determination under subclause (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.
3 Credit of additional amounts to the Fund Account--Ministerial determinations
(1) If a target asset level declaration is in force for a financial year, the responsible Ministers may, by writing, determine that:
(a) a specified amount is to be credited to the Fund Account on a specified day in the financial year; or
(b) a specified amount is to be credited to the Fund Account in specified instalments on specified days in the financial year.
Note: A target asset level declaration is given by the designated actuary under Schedule 3.
(2) The responsible Ministers must not make a determination under subclause (1) in relation to a financial year unless the sum of:
(a) the balance of the Fund at the start of a day that:
(i) is identified in the determination as the balance day for the determination; and
(ii) is not earlier than 3 months before the day on which the determination is made; and
(b) the amount specified in the determination; and
(c) the value, as at the start of the balance day for the determination, of any financial assets that have been transferred to the Board under subclause 6(1) since the start of the balance day for the determination;
does not exceed the target asset level specified in the target asset level declaration that:
(d) is in force when the determination is made; and
(e) relates to the financial year.
(3) The responsible Ministers must not make a determination under subclause (1) if another determination is in force under subclause (1).
(4) A determination under subclause (1) may be revoked, but not varied, in accordance with subsection 33(3) of the Acts Interpretation Act 1901 .
(5) A determination under subclause (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.
4 Duration of subclause 3(1) determinations
(1) If:
(a) a subclause 3(1) determination specifies a day in a financial year in accordance with paragraph 3(1)(a) of this Schedule; and
(b) a target asset level declaration for the financial year was in force when the determination was made;
the determination ceases to be in force at whichever is the earliest of the following:
(c) the end of the specified day;
(d) the time when the target asset level declaration ceases to be in force;
(e) if the determination is revoked--the time when the determination is revoked.
(2) If:
(a) a subclause 3(1) determination specifies 2 or more days in a financial year in accordance with paragraph 3(1)(b) of this Schedule; and
(b) a target asset level declaration for the financial year was in force when the determination was made;
the determination ceases to be in force at whichever is the earliest of the following:
(c) the end of the latest of those specified days;
(d) the time when the target asset level declaration ceases to be in force;
(e) if the determination is revoked--the time when the determination is revoked.
(3) If a determination under subclause 3(1) ceases to be in force, the cessation does not affect the crediting of an amount to the Fund Account before the cessation.
5 Credit of amounts to the Fund Account--gifts
(1) The Board may accept a gift of money if the nominated Minister, by written notice given to the Board, authorises the acceptance of the gift.
(2) An amount accepted under subclause (1) is to be credited to the Fund Account.
Part 3 -- Transfers of financial assets to the Future Fund
6 Transfers to the Fund--Commonwealth - owned financial assets
Transfer of financial assets
(1) If a target asset level declaration is in force for a financial year, the responsible Ministers may cause one or more Commonwealth - owned financial assets to be transferred to the Board during the financial year.
(2) The responsible Ministers must not cause financial assets to be transferred under subclause (1) during a financial year unless the sum of:
(a) the balance of the Fund as at the start of a day that:
(i) is identified in a written declaration made by the responsible Ministers as the balance day for the financial assets; and
(ii) is not earlier than 3 months before the transfer of the financial assets; and
(b) the value, as at the start of the balance day for the financial assets, of the financial assets; and
(c) the value, as at the start of the balance day for the first - mentioned financial assets, of any other financial assets that have been transferred to the Board under subclause (1) since the start of the balance day for the first - mentioned financial assets; and
(d) any amounts that have been credited to the Fund Account under subclause 2(1) or 3(1) during the period:
(i) beginning at the start of the balance day for the first - mentioned financial assets; and
(ii) ending immediately before the time when the first - mentioned financial assets are transferred; and
(e) if a determination was in force under subclause 2(1) or 3(1) when the first - mentioned financial assets are transferred--so much of the amount specified in the determination as had not been credited to the Fund Account before the time when the first - mentioned financial assets are transferred;
does not exceed the target asset level specified in the target asset level declaration that:
(f) is in force when the first - mentioned financial assets are transferred; and
(g) relates to the financial year.
Note: A target asset level declaration is given by the designated actuary under Schedule 3.
(3) A financial asset transferred to the Board under subclause (1) is taken to be an investment of the Fund.
Realisation of financial asset etc.
(4) To avoid doubt, if a financial asset is transferred to the Board under subclause (1), this Act does not prevent:
(a) the realisation of the financial asset under section 17; or
(b) the disposal of the financial asset under a securities lending arrangement entered into under section 27.
Telstra sale scheme
(5) To avoid doubt, action taken under subclause (1) is not a Telstra sale scheme for the purposes of the Telstra Corporation Act 1991 .
Publication of details of transfer of financial assets
(6) As soon as practicable after financial assets are transferred to the Board under subclause (1), the nominated Minister must cause to be published on the internet a statement setting out:
(a) details of the transfer; and
(b) the balance day for the financial assets.
Declaration
(7) A declaration under subparagraph (2)(a)(i) is not a legislative instrument.
7 Transfers of financial assets to the Fund--gifts
(1) The Board may accept a gift of one or more financial assets if the nominated Minister, by written notice given to the Board, authorises the acceptance of the gift.
(2) A financial asset accepted under subclause (1) is taken to be an investment of the Fund.
(3) A financial asset accepted under subclause (1) is taken to be transferred to the Board under that subclause.
(4) To avoid doubt, if a financial asset is transferred to the Board under subclause (1), this Act does not prevent:
(a) the realisation of the financial asset under section 17; or
(b) the disposal of the financial asset under a securities lending arrangement entered into under section 27.
(5) To avoid doubt, a financial asset may be transferred to the Board under subclause (1) even if the Commonwealth has a beneficial interest in the financial asset.
8 Ministerial directions about transferred financial assets
(1) If financial assets are or have been transferred to the Board under subclause 6(1) or 7(1), the nominated Minister may give the Board written directions about the financial assets.
Note: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901 .
(1A) A direction under subclause (1) in relation to financial assets must not direct the Board in relation to the investment of an amount credited to the Fund Account in respect of:
(a) income derived from the financial assets; or
(b) a return of capital, or any other financial distribution, relating to the financial assets; or
(c) the proceeds of the realisation of the financial assets.
Note: For directions about the investment of amounts standing to the credit of the Fund Account, see section 18 (Future Fund Investment Mandate).
(2) A direction under subclause (1) may:
(a) require the Board not to realise the financial assets before the end of a specified period; or
(b) relate to the exercise by the Board of specified:
(i) rights (including voting rights); or
(ii) powers;
conferred on the Board in its capacity as the holder of the financial assets.
(3) Subclause (2) does not limit subclause (1).
(4) Paragraph (2)(a) has effect despite subclauses 6(4) and 7(4).
(5) A direction under subclause (1) prevails over subsection 18(10) to the extent of any inconsistency.
(6) The nominated Minister must not give a direction under subclause (1) that is inconsistent with this Act (other than subsection 18(10)).
(7) The Board must comply with a direction under subclause (1).
(8) A failure to comply with a direction under subclause (1) does not affect the validity of any transaction.
(9) This clause does not limit subsection 18(1).
(10) As soon as practicable after a direction is given under subclause (1), the Chair must cause a copy of the direction to be published on the internet.
(11) A direction under subclause (1) is not a legislative instrument.
9 Continuing effect of instruments relating to transferred financial assets
(1) If financial assets are transferred to the Board under subclause 6(1), the nominated Minister may, by writing, declare that a specified instrument relating to the assets continues to have effect after the transfer as if a reference in the instrument to the Commonwealth were a reference to the Board.
(2) A declaration under subclause (1) has effect accordingly.
(3) A declaration under subclause (1) is not a legislative instrument.