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This is a Bill, not an Act. For current law, see the Acts databases.
1996
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
CFM Sale Bill
1996
No. ,
1996
(Finance)
A Bill
for an Act relating to the sale of Commonwealth Funds Management Limited, and
for related purposes
4789429612120—1,015/18.9.1996—(121/96) Cat.
No. 96 5177
2 ISBN
0644
Contents
Legislative Instruments Act
1996 6cfms0h1.html
Military Superannuation and Benefits Act
1991 6cfms0h1.html
Superannuation Act
1976 6cfms0h1.html
Superannuation Act 1990 6cfms0h1.html
A Bill for an Act relating to the sale of Commonwealth
Funds Management Limited, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the CFM Sale Act 1996.
(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Items 3 and 4 of Schedule 1 are taken to have commenced immediately
after the commencement of Part 2 of the Commonwealth Funds Management Limited
Act 1990.
(3) Subject to subsection (4), items 1, 2, 5, 6, 7, 8, 9 and 11 of
Schedule 1 commence on a day or days to be fixed by Proclamation.
(4) If an item of Schedule 1 does not commence under subsection (3) within
the period of 6 months beginning on the day on which this Act receives the Royal
Assent, it commences on the first day after the end of that period.
(5) If this Act commences before the commencement of the Legislative
Instruments Act 1996, item 1 of Schedule 2 commences immediately after the
commencement of the Legislative Instruments Act 1996.
(1) In this Act, unless the contrary intention appears:
CFM means the body corporate known before the day declared
under section 25 as Commonwealth Funds Management Limited:
(a) by whatever name called from time to time; and
(b) in whatever form that body corporate takes from time to
time.
CFM body means CFM or a transferred body.
CFM subsidiary means a body corporate that is a subsidiary of
CFM.
related body means:
(a) in relation to CFM—a body corporate that is related to CFM;
or
(b) in relation to a transferred body—a body corporate that is
related to the transferred body.
sale day means:
(a) in relation to CFM—the day declared under section 25 to be the
sale day for CFM; or
(b) in relation to a transferred body—the day declared under section
26 to be the sale day for that body.
share, in relation to a body corporate, means a
share in the body’s share capital.
subsidiary has the meaning given by subsection (2).
transferred body means a body corporate that was a CFM
subsidiary all of the shares in which were transferred by CFM to the
Commonwealth in accordance with the Minister’s direction under section
7.
transferred employee means a person whose employment is
transferred in accordance with a declaration under section 9.
transfer time, in relation to an employee, has the meaning
given by section 9.
voting share has the same meaning as in the Corporations
Law.
(2) For the purposes of this Act, the question whether a body corporate is
a subsidiary of another body corporate is to be determined in the same manner as
that question is determined under the Corporations Law.
(3) For the purposes of this Act, the question whether a body corporate is
related to another body corporate is to be determined in the same manner as that
question is determined under the Corporations Law.
Subject to section 2, each Act that is specified in a Schedule to this
Act is amended or repealed as set out in the applicable items in the Schedule
concerned, and any other item in a Schedule to this Act has effect according to
its terms.
This Part is about the transfer of CFM subsidiaries from CFM to the
Commonwealth so that they may be sold under Part 3.
The Minister may, in writing, direct CFM to establish
subsidiaries.
The Minister may, in writing, direct CFM to transfer from CFM to the
Commonwealth all of the shares in a CFM subsidiary, including a subsidiary that
existed before the commencement of this Act.
Stamp duty or other tax is not payable under a law of the Commonwealth, a
State or a Territory in respect of:
(a) the transfer of shares in a CFM subsidiary by CFM to the Commonwealth;
or
(b) anything done (including a transaction entered into or an instrument
or document made, executed, lodged or given) because of, or for a purpose
connected with or arising out of, the transfer.
(1) The Minister may, by written instrument, declare that a specified
employee of CFM on a specified day:
(a) ceases to be employed by CFM; and
(b) is taken to have been engaged by a specified CFM subsidiary or a
specified transferred body as an employee of that subsidiary or body.
(2) The declaration has effect accordingly.
(3) The employee’s transfer time occurs immediately
after the beginning of the day specified in the declaration.
(1) A person who is a transferred employee is taken:
(a) to have been engaged by the CFM subsidiary or the transferred body on
the same terms and conditions as those that applied to the person, immediately
before the employee’s transfer time, as an employee of CFM; and
(b) to have accrued an entitlement to benefits, in connection with that
engagement by the CFM subsidiary or the transferred body, that is equivalent to
the entitlement that the person had accrued, as an employee of CFM, immediately
before the employee’s transfer time.
(2) The service of a transferred employee as an employee of the CFM
subsidiary or the transferred body is taken, for all purposes, to have been
continuous with the service of the employee, immediately before the
employee’s transfer time, as an employee of CFM.
(3) A transferred employee is not entitled to receive any payment or any
other benefit merely because he or she stopped being an employee of CFM as a
result of this Division.
(1) This Division does not prevent the terms and conditions of a
transferred employee’s employment after the employee’s transfer time
from being varied:
(a) in accordance with those terms and conditions; or
(b) by or under a law, award, determination or agreement.
(2) In this section:
vary, in relation to terms and conditions,
includes:
(a) omitting any of those terms and conditions; or
(b) adding to those terms and conditions; or
(c) substituting new terms or conditions for any of those terms and
conditions.
(1) Before the employment of an employee of CFM is transferred under
section 9, CFM must give the employee a written statement setting out the
particulars of the benefits to which the employee has accrued an
entitlement.
(2) In any proceedings relating to paragraph 9(1)(b), the statement is
prima facie evidence of the matters set out in the statement.
(3) A failure by CFM to comply with subsection (1) does not affect the
validity of the transfer of the employment of the employee.
The Commonwealth Funds Management Limited Act 1990 applies to a
transferred body to the extent, and in the manner, set out in this
Division.
Section 4 of the Commonwealth Funds Management Limited Act 1990
applies in relation to a transferred body as if a reference to a protected body
were a reference to the transferred body or a wholly-owned subsidiary of the
transferred body.
Section 15 of the Commonwealth Funds Management Limited Act 1990
applies in relation to a transferred body as if:
(a) a reference to the Company were a reference to the transferred body;
and
(b) a reference to the commencement of Part 3 of that Act were a reference
to the transfer of all of the shares in the CFM subsidiary in question by CFM to
the Commonwealth.
Part 4 of the Commonwealth Funds Management Limited Act 1990
applies in relation to a transferred body as if:
(a) a reference to a protected body were a reference to the transferred
body or a wholly-owned subsidiary of the transferred body; and
(b) a reference to a protected company name were a reference to the
transferred body’s name or a wholly-owned subsidiary’s name;
and
(c) a reference to a protected business name were a reference to the
transferred body’s name or a wholly-owned subsidiary’s name;
and
(d) a reference to the Company were a reference to the transferred
body.
Section 33 of the Commonwealth Funds Management Limited Act 1990
applies in relation to a transferred employee of a transferred body as
if:
(a) a reference to a staff member were a reference to the transferred
employee; and
(b) a reference to the Company were a reference to the transferred body;
and
(c) a reference to the transition were a reference to the transfer of all
of the shares in the CFM subsidiary in question by CFM to the
Commonwealth.
(1) This section applies to a person if:
(a) the person is a transferred employee; and
(b) immediately before the person’s transfer time:
(i) the person was a staff member of CFM; and
(ii) section 34 of the Commonwealth Funds Management Limited Act 1990
applied in relation to the person.
(2) Section 34 of the Commonwealth Funds Management Limited Act
1990, as in force immediately before the person’s transfer time,
continues to apply, on and after that time, in relation to the person as if the
person were a staff member of CFM for so long as the person continues to be
employed by a transferred body or a CFM subsidiary.
Part 8 of the Commonwealth Funds Management Limited Act 1990
(other than sections 44, 46 and 47) applies in relation to a transferred body as
if:
(a) a reference to the Company were a reference to the transferred body;
and
(b) a reference to the transition were a reference to the transfer of all
of the shares in the CFM subsidiary in question by CFM to the
Commonwealth.
(1) A transferred body is taken to be an approved authority for the
purposes of the Superannuation Act 1976.
(2) The transferred body ceases to be an approved authority for the
purposes of that Act on the body’s sale day.
(1) A transferred body is taken to be an approved authority for the
purposes of the Superannuation Act 1990.
(2) The transferred body ceases to be an approved authority for the
purposes of that Act on the body’s sale day.
(1) A transferred body is taken to be a Commonwealth authority for the
purposes of the Safety, Rehabilitation and Compensation Act
1988.
(2) The transferred body ceases to be a Commonwealth authority for the
purposes of that Act on the body’s sale day.
(1) A transferred body is taken to be a public authority of the
Commonwealth for the purposes of the Long Service Leave (Commonwealth
Employees) Act 1976.
(2) The transferred body ceases to be a public authority of the
Commonwealth for the purposes of that Act on the body’s sale
day.
This Part is about the sale of CFM and transferred bodies by the
Commonwealth. The sales are to be effected by selling the shares in CFM and the
transferred bodies on the same or different days.
(1) If, in the opinion of the Minister, a particular day is the first day
after the commencement of this Part on which a majority of the voting shares in
CFM are or were acquired by a person, or persons, other than:
(a) the Commonwealth; or
(b) a nominee of the Commonwealth;
the Minister must, by notice in the Gazette, declare the day to be
the sale day for CFM.
(2) The declaration has effect accordingly.
(3) The notice must be published within 21 days after the sale
day.
(4) For the purposes of the memorandum of association and articles of
association of CFM, this section is taken to constitute the kind of amendment to
the Commonwealth Funds Management Limited Act 1990 referred to in the
memorandum and the definition of “Overriding Principle” in article 1
of the articles.
(1) If, in the opinion of the Minister, a particular day is the first day
after the commencement of this Part on which a majority of the voting shares in
a transferred body are or were acquired by a person, or persons, other
than:
(a) the Commonwealth; or
(b) a nominee of the Commonwealth;
the Minister must, by notice in the Gazette, declare the day to be
the sale day for that body.
(2) The declaration has effect accordingly.
(3) The notice must be published within 21 days after the body’s
sale day.
This Division (other than Subdivision 2F) is about the long service leave
that may be granted to an employee of a CFM body who had less than 10 years
service when the body was sold and who continued, after the sale, as an employee
of that body or a related body. Subdivision 2F deals with employees who had at
least 10 years service.
(1) Unless the contrary intention appears, expressions used in this
Division that are also used in the Long Service Leave Act have the same meanings
as in that Act.
(2) In this Division:
combined service period, in relation to an employee of a CFM
body, means the total of:
(a) the period that was, immediately before the body’s sale day, the
employee’s period of service for the purposes of the Long Service Leave
Act; and
(b) the period starting on the body’s sale day during which the
employee continues to be an employee of that body or a related body.
law means:
(a) a law of the Commonwealth, a State or a Territory; or
(b) regulations or any other instrument (other than an award,
determination or industrial agreement) made under such a law.
post-sale long service leave rights, in relation to an
employee of a CFM body, means any long service leave rights that the employee
acquires under an award, determination, industrial agreement or law (other than
this Act) on or after the body’s sale day.
For the purposes of the application of this Part to a particular employee
of a CFM body, a reference in this Division to the Long Service Leave Act is a
reference to the Long Service Leave (Commonwealth Employees) Act 1976 as
in force immediately before the body’s sale day.
To avoid doubt, it is declared that this Division does not affect an
employee’s post-sale long service leave rights.
This Subdivision is about the long service leave that may be granted to an
employee of a CFM body or a related body who attains at least 10 years service.
It also deals with employees who reach minimum retiring age or are
retrenched.
(1) A CFM body or a related body may grant an employee long service leave
on full salary for a period up to the employee’s long service leave credit
under subsection 43(1) if:
(a) the employee was an employee of the CFM body immediately before the
body’s sale day; and
(b) at that time, the employee’s period of service for the purposes
of the Long Service Leave Act was less than 10 years; and
(c) from and after the body’s sale day, the employee continued to be
employed by the CFM body or a related body until his or her combined service
period was at least 10 years.
(2) The CFM body or related body (as the case requires) may, if the
employee asks in writing, grant the employee long service leave on half salary
for a period not exceeding twice the period that could have been granted to the
employee on full salary.
(1) A CFM body or a related body may grant an employee long service leave
on full salary for a period up to the employee’s long service leave credit
under subsection 43(1) if:
(a) the employee was an employee of the CFM body immediately before the
body’s sale day; and
(b) at that time, the employee’s period of service for the purposes
of the Long Service Leave Act was less than 10 years; and
(c) from and after the body’s sale day, the employee continued to be
employed by the CFM body or a related body; and
(d) the employee stopped being an employee of the CFM body or a related
body, on or after reaching the minimum retiring age, or because of retrenchment;
and
(e) the employee’s combined service period at the time when he or
she stopped being an employee of the CFM body or a related body was at least one
year.
(2) Long service leave granted under this section is to be taken so as to
end immediately before the employee stopped being an employee.
(3) The CFM body or related body (as the case requires) may, if the
employee asks in writing, grant the employee long service leave on half salary
for a period not exceeding twice the period that could have been granted to the
employee on full salary.
For the purposes of sections 32 and 33, the rate of salary to be used in
working out the full salary of an employee is the rate that would be applicable
to the employee under section 20 of the Long Service Leave Act if:
(a) that section applied to the employee; and
(b) for the expression “section 16 or 17” in that section
there were substituted the expression “section 32 or 33 of the CFM Sale
Act 1996”.
This Subdivision is about payments in respect of long service leave to an
employee of a CFM body or a related body who has not used all of his or her long
service leave credit by taking long service leave under Subdivision
2B.
Subject to section 39, a CFM body or a related body must pay an employee
an amount equal to full salary in respect of his or her long service leave
credit under subsection 43(2) if:
(a) the employee was an employee of the CFM body immediately before the
body’s sale day; and
(b) at that time, the employee’s period of service for the purposes
of the Long Service Leave Act was less than 10 years; and
(c) from and after the body’s sale day, the employee continued to be
employed by the CFM body or a related body; and
(d) the employee stopped being an employee of the CFM body or a related
body on or after the day on which his or her combined service period reached 10
years.
Subject to section 39, a CFM body or a related body must pay an employee
an amount equal to full salary in respect of his or her long service leave
credit under subsection 43(2) if:
(a) the employee was an employee of the CFM body immediately before the
body’s sale day; and
(b) at that time, the employee’s period of service for the purposes
of the Long Service Leave Act was less than 10 years; and
(c) from and after the body’s sale day, the employee continued to be
employed by the CFM body or a related body; and
(d) the employee stopped being an employee of the CFM body or a related
body, on or after reaching the minimum retiring age, or because of retrenchment;
and
(e) the employee’s combined service period at the time when he or
she stopped being an employee of the CFM body or a related body was at least one
year.
Subject to section 39, a CFM body or a related body must pay an employee
an amount equal to full salary in respect of his or her long service leave
credit under subsection 43(2) if:
(a) the employee was an employee of the CFM body immediately before the
body’s sale day; and
(b) at that time, the employee’s period of service for the purposes
of the Long Service Leave Act was less than 10 years; and
(c) from and after the body’s sale day, the employee continued to be
employed by the CFM body or a related body; and
(d) the employee stopped being an employee of the CFM body or a related
body because of ill-health; and
(e) the CFM body or related body was satisfied that the employee left the
body because of ill-health that justified his or her so leaving; and
(f) when the employee left, his or her combined service period was at
least one year.
(1) An employee may, by written notice given to a CFM body or a related
body before the employee stops being an employee of the body:
(a) request the body not to make a payment to the employee under section
36, 37 or 38; or
(b) request the body to make a payment under that section of a specified
amount that is less than the amount that would otherwise be payable under that
section.
(2) The CFM body or the related body must comply with the
request.
For the purposes of this Subdivision, the rate of salary to be used in
working out the full salary of an employee is the rate that would be applicable
to the employee under section 21 of the Long Service Leave Act if:
(a) that section applied to the employee; and
(b) for the expression “sections 16 and 17” in that section
there were substituted the expression “sections 36, 37 and 38 of the
CFM Sale Act 1996”.
This Subdivision is about payments in respect of long service leave to the
dependants of an employee of a CFM body or a related body who has
died.
(1) A CFM body or a related body must make a payment to a dependant or to
2 or more dependants of an employee if:
(a) the employee was an employee of the CFM body immediately before the
body’s sale day; and
(b) at that time, the employee’s period of service for the purposes
of the Long Service Leave Act was less than 10 years; and
(c) from and after the body’s sale day, the employee continued to be
employed by the CFM body or a related body; and
(d) on or after the body’s sale day, the employee died and
immediately before his or her death:
(i) the employee was an employee of the CFM body or a related body;
and
(ii) the employee’s combined service period was at least one year;
and
(iii) the employee had one or more dependants.
(2) The total amount of the payment or payments is the amount that would
have been payable to the employee under section 37 if, on the day of his or her
death, the employee had stopped being an employee of the CFM body or the related
body on or after reaching the minimum retiring age.
(3) If subsection (1) applies, section 23 of the Long Service Leave Act
has effect as if:
(a) that section applied to the employee; and
(b) a reference in that section to the approving authority were a
reference to the CFM body or the related body; and
(c) for the expression “this Act” in that section there were
substituted the expression “section 42 of the CFM Sale Act
1996”; and
(d) for the expression “subsection 16(7) or 17(5)” in that
section there were substituted the expression “section 42 of the CFM
Sale Act 1996”.
(1) For the purposes of sections 32 and 33, the long service leave credit
of an employee is equal to the long service leave credit that the employee would
have under the Long Service Leave Act for the period:
(a) starting when the employee started his or her period of service;
and
(b) ending on:
(i) where the employee was employed by CFM immediately before CFM’s
sale day—CFM’s sale day; or
(ii) where the employee was employed by a transferred body immediately
before the body’s sale day—that body’s sale day;
if the employee had been retrenched on that sale day.
(2) For the purposes of sections 36, 37 and 38, an employee’s long
service leave credit is the employee’s long service leave credit worked
out under subsection (1), reduced by any long service leave credit used under
section 32 or 33.
(1) Even though an employee of a CFM body ceases to be employed in
Government Service for the purposes of the Long Service Leave Act, the
employee’s accrued rights under that Act continue while the employee
continues to be employed by the CFM body or a related body if:
(a) the employee was an employee of the CFM body immediately before the
body’s sale day; and
(b) at that time, the employee’s period of service for the purposes
of the Long Service Leave Act was at least 10 years.
However, the employee is not entitled to receive any payment because he or
she ceases to be in Government Service.
(2) The Long Service Leave Act has effect after the CFM body’s sale
day as if:
(a) where the employee continues to be employed by that body—that
body were an approving authority for the purposes of that Act; or
(b) where the employee continues to be employed by a related
body—that related body were an approving authority for the purposes of
that Act.
This Division is about how certain legislation dealing with superannuation
continues to operate in relation to a CFM body after it is sold.
(1) For the purposes of Division 3 of Part IX of the Defence Force
Retirement and Death Benefits Act 1973, an employee of a CFM body:
(a) to whom, immediately before the body’s sale day, deferred
benefits were applicable under section 78 of that Act; and
(b) who continues to be employed by the CFM body or a related body after
that day;
is taken to continue in public employment, on or after that day, while he
or she continues to be so employed.
(2) Subsection (1) is subject to Division 3 of Part IX of the Defence
Force Retirement and Death Benefits Act 1973.
(1) A period of employment of a person by a CFM body continues to be a
period of eligible employment for the purposes of Division 3 of Part IX of the
Defence Force Retirement and Death Benefits Act 1973 if, immediately
before the body’s sale day, the period was a period of eligible employment
for the purposes of that Division.
(2) Subsection (1) applies even if employment by the body ceases to be
eligible employment for the purposes of that Division on the body’s sale
day.
Continuing application of Act
(1) Subject to subsection (2), the Crimes (Superannuation Benefits) Act
1989 continues to apply, on and after the sale day of a CFM body, in
relation to a person who committed a corruption offence before that day while an
employee of the body, as if the body continued to be a Commonwealth
authority.
Limitation on superannuation orders
(2) A superannuation order may not be made under the Crimes
(Superannuation Benefits) Act 1989 in relation to employer contributions or
benefits paid or payable to a superannuation scheme by a CFM body on or after
the body’s sale day.
Superannuation schemes
(3) A superannuation scheme in relation to which employer contributions or
benefits are paid or payable by a CFM body on or after the body’s sale day
is not a superannuation scheme for the purposes of the application of the
Crimes (Superannuation Benefits) Act 1989 to a corruption offence
committed by a person after the body’s sale day.
Paragraph 19(3)(d) orders
(4) Despite paragraph 19(3)(d) of the Crimes (Superannuation Benefits)
Act 1989, an order made under that paragraph on or after the body’s
sale day may only specify that an amount paid into the Consolidated Revenue Fund
before the body’s sale day by or on behalf of the body belongs to the
Commonwealth.
Paragraph 19(4)(b) orders
(5) If:
(a) a person who was an employee of a CFM body before the body’s
sale day committed a corruption offence while such an employee; and
(b) the person was paid benefits before, on or after the body’s sale
day out of the Consolidated Revenue Fund;
then, despite paragraph 19(4)(b) of the Crimes (Superannuation Benefits)
Act 1989, an order made under that paragraph on or after the body’s
sale day may only specify that an amount equal to the total benefits paid out of
the Consolidated Revenue Fund be paid to the Commonwealth.
Interpretation
(6) Unless the contrary intention appears, an expression used in this
section that is also used in the Crimes (Superannuation Benefits) Act
1989 has the same meaning in this section as it has in that
Act.
This Division is about how the Safety, Rehabilitation and Compensation Act
continues to operate in relation to a CFM body after it is sold.
Unless the contrary intention appears, expressions used in this Division
that are also used in the Safety, Rehabilitation and Compensation Act
1988 have the same meanings as in that Act.
If a CFM body ceases to be a Commonwealth authority for the purposes of
the Safety, Rehabilitation and Compensation Act 1988, that Act continues
to apply in relation to the CFM body to the extent, and in the manner, set out
in this Division.
(1) The Safety, Rehabilitation and Compensation Act 1988 continues
to apply, on and after the sale day of a CFM body, in relation to:
(a) injuries suffered by an employee of the body before its sale day;
and
(b) loss of, or damage to, property incurred by the employee before the
body’s sale day;
if the employee was an employee of the body immediately before its sale
day.
(2) For
the purposes of subsection (1), the Safety, Rehabilitation and Compensation
Act 1988 continues to apply as if:
(a) the CFM body continued to be a Commonwealth authority; and
(b) the Chief Executive Officer of the CFM body (however described)
continued to be the Principal Officer of a Commonwealth authority.
(1) On and after the sale day of a CFM body, Division 4A of Part VII of
the Safety, Rehabilitation and Compensation Act 1988 applies to the CFM
body as if:
(a) the CFM body continues to be a Commonwealth authority; and
(b) the CFM body is not required to pay a premium under that Division in
respect of the part of a financial year that occurs after the sale day;
and
(c) the following word and paragraph were added at the end of subsection
96H(1):
; or (f) in the case of an authority—the authority is not required
to pay a premium under this Division in respect of part of a financial
year.
(2) If, 60 days after the sale day of a CFM body, an amount of premium
payable by the body to Comcare in respect of the period before the sale day
remains unpaid, the amount is a debt due to the Commonwealth by the CFM body and
payable to Comcare.
(1) On and after the sale day of a CFM body, the body is taken to be the
relevant employer of the employee for the purposes of section 40 of the
Safety, Rehabilitation and Compensation Act 1988.
(2) On and after the sale day of a CFM body, the body must provide such
reasonable co-operation and assistance as the Commonwealth requires to enable
the Commonwealth to fulfil its obligations under sections 36, 37, 38, 39, 41 and
41A of the Safety, Rehabilitation and Compensation Act 1988.
(1) The Chief Executive Officer (however described) of a CFM body that was
a Commonwealth authority immediately before the body’s sale day must
notify Comcare, within 28 days after the sale day, of the amount of salary,
wages or pay paid to employees of the CFM body in the pre-sale day
period.
(2) In this section:
pre-sale day period means the period starting on 1 July in
the financial year in which a CFM body’s sale day occurs and ending on the
day before the sale day.
(1) A CFM body is entitled to be paid the amount worked out using the
formula set out below if the CFM body has paid a contribution to the cost of the
administration of the Occupational Health and Safety (Commonwealth
Employment) Act 1991 under section 67H of that Act in respect of the
financial year in which the body’s sale day occurs.
contribution means the contribution paid by the CFM body in
respect of that financial year.
no. of refund days means the total number of days in the
period beginning on the sale day and ending on the last day of the financial
year in which the sale day occurs.
(2) An amount to which a CFM body is entitled under subsection (1) must be
paid out of the Consolidated Revenue Fund, which is appropriated
accordingly.
(1) Division 2 or 3 of Part IV of the Public Service Act 1922 stops
applying to an employee of a CFM body on the body’s sale day if that
Division applied to the employee of the body immediately before the body’s
sale day.
(2) If Division 4 of Part IV of the Public Service Act 1922 applied
to an employee of a CFM body immediately before the body’s sale
day:
(a) the Officers’ Rights Declaration Act 1928; and
(b) Division 4 of Part IV of the Public Service Act 1922;
stop applying to the employee on the body’s sale day.
(1) Even though the Director of Public Prosecutions Act 1983 ceases
to apply to certain acts, omissions or proceedings in connection with a CFM body
because the body ceases to be an authority of the Commonwealth for the purposes
of that Act, that Act continues on and after the body’s sale day to apply
in relation to:
(a) acts or omissions that occurred in relation to the CFM body before the
body’s sale day; and
(b) civil remedies in respect of relevant matters relating to acts or
omissions referred to in paragraph (a).
(2) In this section:
relevant matter has the same meaning as in the Director of
Public Prosecutions Act 1983.
(1) Subject to subsection (3), if, immediately before CFM’s sale
day, CFM had a class A franking surplus, a class B franking surplus or a class C
franking surplus, then CFM’s class A franking surplus, class B franking
surplus or class C franking surplus (as the case requires) is reduced to nil at
the beginning of CFM’s sale day.
(2) Subject to subsection (3), if:
(a) at any time on or after CFM’s sale day, there arises a franking
credit or a franking debit of CFM; and
(b) the franking credit or franking debit is to any extent attributable to
a period, or to an event taking place, before CFM’s sale day;
the franking credit or franking debit is to that extent taken not to have
arisen.
(3) If:
(a) a class A franking debit, class B franking debit or class C franking
debit, that arises on or after CFM’s sale day, of CFM is to an extent (the
amount of which is the pre-sale component of the debit)
attributable to a period, or to an event taking place, before the sale day;
and
(b) immediately before the sale day, CFM had a class A franking surplus,
class B franking surplus or class C franking surplus, that was less than the
corresponding pre-sale component of the debit;
then subsection (1) does not apply to the surplus and subsection (2) does
not apply to the debit.
(4) In this section the following expressions have the same meanings as in
Part IIIAA of the Income Tax Assessment Act 1936:
|
class A franking debit |
|
class A franking surplus |
|
class B franking debit |
|
class B franking surplus |
|
class C franking debit |
|
class C franking surplus |
|
franking credit |
|
franking debit |
(1) On and after a CFM body’s sale day, the body is not taken, for
the purposes of a law, to be:
(a) a Commonwealth authority; or
(b) established for the public purpose or for a purpose of the
Commonwealth; or
(c) a public authority or an agency or instrumentality of the
Crown;
unless a law expressly provides otherwise.
(2) In subsection (1):
law means:
(a) an Act of the Commonwealth or of a State or Territory; or
(b) regulations or any other instrument made under such an Act.
(1) Subsection 48(2) of the Acts Interpretation Act 1901 does not
apply to regulations made under any Act that:
(a) are connected with the sale of a CFM body; and
(b) include a declaration that the Governor-General is satisfied that they
are connected with the sale of a CFM body; and
(c) are expressed to take effect on the body’s sale day.
(2) Regulations covered by subsection (1) take effect on the body’s
sale day.
(1) The following sections and Parts of the Commonwealth Funds
Management Limited Act 1990 cease to apply to CFM on CFM’s sale
day:
(a) sections 4, 15, 33, 34, 39, 41, 42, 43, 44 and 46;
(b) Parts 4, 5 and 7.
(2) The following sections and Part of the Commonwealth Funds
Management Limited Act 1990 cease to apply to a transferred body on the
transferred body’s sale day:
(a) sections 4, 15, 33, 34, 39, 41, 42 and 43;
(b) Part 4.
Note: Division 3 of Part 2 of this Act sets out how the
provisions listed in subsection (2) are to apply to a transferred body before
they cease to so apply.
This Part is about the transfer of assets, liabilities, rights and
obligations of CFM bodies. The transfers are to be effected by way of
Ministerial declaration.
In this Part, unless the contrary intention appears:
asset means:
(a) any legal or equitable estate or interest in real or personal
property, including a contingent or prospective one; and
(b) any right, privilege or immunity, including a contingent or
prospective one.
contract includes:
(a) a deed; and
(b) a deed poll.
instrument includes a document.
liability means a liability or duty, including a contingent
or prospective one.
(a) in relation to an asset to which a declaration under subsection 65(1)
relates—the Commonwealth, a CFM subsidiary or a transferred body,
whichever is specified in the declaration as the body in which the asset vests;
or
(b) in relation to a right or obligation to which a declaration under
subsection 68(1) relates—the Commonwealth, a CFM subsidiary or a
transferred body, whichever is specified in the declaration as the body to which
the right or obligation is to be transferred; or
(c) in relation to a liability to which a declaration under subsection
71(1) relates—the Commonwealth, a CFM subsidiary or a transferred body,
whichever is specified in the declaration as the body to which the liability is
to be transferred.
(1) The Minister may, by written instrument, declare that a specified
asset of a CFM body (other than shares in the CFM body) vests in a specified
transferee on a specified day without any conveyance, transfer or
assignment.
(2) The declaration has effect accordingly.
(3) The Minister must as soon as practicable, but no later than 21 days
after making the declaration, publish the declaration in the
Gazette.
(4) Any consideration payable for the transfer of an asset under this
section is payable to the Commonwealth instead of to the CFM body.
Note: An asset or instrument may be specified by name, by
inclusion in a specified class or in any other way.
An instrument relating to an asset of a CFM body specified in a
declaration continues to have effect after the asset vests in the specified
transferee as if a reference in the instrument to the CFM body were a reference
to the specified transferee.
Immediately after an asset vests in the specified transferee under a
declaration, the specified transferee becomes the CFM body’s successor in
law in relation to the asset.
(1) The Minister may, by written instrument, declare that the rights and
obligations of a CFM body under a specified contract on a specified
day:
(a) cease to be rights and obligations of the CFM body; and
(b) become rights and obligations of the specified transferee.
(2) The declaration has effect accordingly.
(3) A Minister must as soon as practicable, but no later than 21 days
after making the declaration, publish the declaration in the
Gazette.
Note: A contract or instrument may be specified by name, by
inclusion in a specified class or in any other way.
An instrument relating to a contract specified in a declaration continues
to have effect after the rights and obligations of a CFM body under the contract
become rights and obligations of the specified transferee as if a reference in
the instrument to the CFM body were a reference to the specified
transferee.
Immediately after rights and obligations become rights and obligations of
the specified transferee under a declaration, the specified transferee becomes
the CFM body’s successor in law in relation to those rights and
obligations.
(1) The Minister may, by written instrument, declare that a specified
liability of a CFM body (other than a liability under a contract) on a specified
day:
(a) ceases to be a liability of the CFM body; and
(b) becomes a liability of a specified transferee.
(2) The declaration has effect accordingly.
(3) The Minister must as soon as practicable, but no later than 21 days
after making the declaration, publish the declaration in the
Gazette.
Note: A liability or instrument may be specified by name, by
inclusion in a specified class or in any other way.
An instrument relating to a liability of a CFM body specified in a
declaration continues to have effect after the liability becomes a liability of
the specified transferee as if a reference in the instrument to the CFM body
were a reference to the specified transferee.
Immediately after a liability becomes a liability of the specified
transferee under a declaration, the specified transferee becomes the CFM
body’s successor in law in relation to the liability.
(1) Stamp duty or other tax is not payable under a law of the
Commonwealth, a State or a Territory in respect of:
(a) an exempt matter; or
(b) anything done (including a transaction entered into or an instrument
or document made, executed, lodged or given) because of, or for a purpose
connected with or arising out of, an exempt matter.
(2) In this section:
exempt matter means:
(a) the transfer of an asset under section 65; or
(b) the transfer of rights and obligations under section 68; or
(c) the transfer of a liability under section 71.
(1) This section applies if an asset, liability, right or obligation is
transferred from a CFM body to a specified transferee under this Part or by
another means:
(a) in the case of a transferred body—after the day on which all of
the shares in the CFM subsidiary in question are transferred by CFM to the
Commonwealth in accordance with the Minister’s direction under section 7,
but on or before the body’s sale day; or
(b) in the case of CFM—after the day on which all of the shares in
Total Risk Management Pty. Limited are transferred by CFM to the Commonwealth in
accordance with the Minister’s direction under section 7, but on or before
CFM’s sale day.
Note: Total Risk Management Pty. Limited was a subsidiary of
CFM when this Act received the Royal Assent.
(2) The Income Tax Assessment Act 1936 applies to the CFM body and
the specified transferee as if:
(a) the specified transferee had acquired the asset, liability, right or
obligation at the time when, and in the circumstances in which, the CFM body
acquired the asset, liability, right or obligation; and
(b) the specified transferee had treated and dealt with the asset,
liability, right or obligation in the way that the CFM body treated and dealt
with the asset, liability, right or obligation; and
(c) the CFM body had never acquired or disposed of the asset, liability,
right or obligation.
(3) Subsection (2) does not affect the application of the Income Tax
Assessment Act 1936 in relation to anything that happened in relation to the
asset, liability, right or obligation before it was transferred from the CFM
body to the specified transferee.
(4) Subsection (2) does not affect the nature or effect of the transfer
for a purpose other than a purpose of the Income Tax Assessment Act
1936.
(1) This section applies if:
(a) any right, title or interest in particular land vests in a specified
transferee under section 65; and
(b) there is lodged with a land registration official a certificate
that:
(i) is signed by the Minister, or a person authorised by the Minister, in
writing, for the purposes of this section; and
(ii) identifies the land, whether by reference to a map or otherwise;
and
(iii) states that the right, title or interest has become vested in the
specified transferee under section 65.
(2) The land registration official may:
(a) register the matter in a way that is the same as, or similar to, the
way in which dealings in land of that kind are registered; and
(b) deal with, and give effect to, the certificate.
(3) A document that appears to be a certificate under subsection (1) is
taken to be such a certificate, and to have been properly given, unless the
contrary is established.
(4) In this section:
land
registration official, in relation to land, means the Registrar of
Titles or other proper officer of the State or Territory in which the land is
situated.
The Lands Acquisition Act 1989 does not apply in relation to
anything done under this Part.
(1) This section applies if:
(a) an asset other than land vests in a specified transferee under section
65; and
(b) there is lodged with an assets official a certificate that:
(i) is signed by the Minister, or a person authorised by the Minister, in
writing, for the purposes of this section; and
(ii) identifies the asset; and
(iii) states that the asset has become vested in the specified transferee
under section 65.
(2) The assets official may:
(a) deal with, and give effect to, the certificate as if the certificate
were a proper and appropriate instrument for transactions in relation to assets
of that kind; and
(b) make such entries in the register as are necessary having regard to
the effect of section 65.
(3) A document that appears to be a certificate under subsection (1) is
taken to be such a certificate and to have been properly given unless the
contrary is established.
(4) In this section:
assets official means the person or authority who, under a
law of the Commonwealth, a State or a Territory, has responsibility for keeping
a register in relation to assets of the kind concerned.
(1) If:
(a) apart from this section, the operation of this Act would result in the
acquisition of property from a person otherwise than on just terms;
and
(b) the acquisition would be invalid because of paragraph 51(xxxi) of the
Constitution;
the Commonwealth is liable to pay compensation of a reasonable amount to
the person in respect of the acquisition.
(2) If the Commonwealth and the person do not agree on the amount of the
compensation, the person may institute proceedings in the Federal Court of
Australia for the recovery from the Commonwealth of such reasonable amount of
compensation as the Court determines.
(3) Any damages or compensation recovered, or other remedy given, in a
proceeding begun otherwise than under this section must be taken into account in
assessing compensation payable in a proceeding begun under this section and
arising out of the same event or transaction.
(4) In this section:
acquisition of property has the same meaning as in paragraph
51(xxxi) of the Constitution.
just terms has the same meaning as in paragraph 51(xxxi) of
the Constitution.
To avoid doubt, the operation of this Act is not to be regarded
as:
(a) placing a person in breach of contract or confidence; or
(b) otherwise making a person guilty of a civil wrong; or
(c) placing a person in breach of any contractual provision prohibiting,
restricting or regulating:
(i) the assignment or transfer of any asset, liability, right or
obligation; or
(ii) the disclosure of any information; or
(d) releasing any surety from any of the surety’s obligations in
relation to a liability or obligation that is transferred under a declaration
made under Part 4.
(1) This Act does not authorise a Commonwealth record (within the meaning
of the Archives Act 1983) to be transferred or otherwise dealt with
except in accordance with the provisions of that Act.
(2) A Commonwealth record (within the meaning of the Archives Act
1983) must not be transferred to the purchaser of a CFM body under Part 3 of
this Act in connection with the operation of this Act in relation to the CFM
body unless the Australian Archives has given permission under paragraph
24(2)(b) of the Archives Act 1983.
The Governor-General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving
effect to this Act.
1 Subsection 3(1) (definitions of group
company, operate, protected body, protected business
name, protected company name, protected name, protection
time and registered)
Repeal the definitions.
2 Section 4
Repeal the section.
3 Subsection 7(1)
Omit “a”, substitute, “an authorised and
issued”.
4 Subsection 7(2)
Before “share”, insert “issued”.
5 Section 15
Repeal the section.
6 Parts 4 and 5
Repeal the Parts.
7 Sections 33 and 34
Repeal the sections.
8 Part 7
Repeal the Part.
9 Sections 39, 41, 42, 43, 44 and
46
Repeal the sections.
10 Section 47
Repeal the section.
11 Subsection 48(2)
Repeal the subsection.
Legislative
Instruments Act 1996
1 Schedule 3
Omit “Commonwealth Funds Management Limited”.
Military
Superannuation and Benefits Act 1991
2 Section 41
Repeal the section.
3 Subsection 42(3)
Omit “Subject to subsection (4), the”, substitute
“The”.
4 Subsection 42(4)
Repeal the subsection.
5 Subsection 42(4A)
Omit “Commonwealth Funds Management Limited and”.
6 Section 33
Repeal the section.