Contents

Part 1--Introduction                                                                                                               1

1............ Short title [see Note 1] ....................................................................... 1

2............ Commencement .................................................................................. 1

3............ Object ................................................................................................. 2

4............ Simplified outline ................................................................................ 2

5............ Definitions .......................................................................................... 2

6............ Financial assets ................................................................................... 8

7............ Crown to be bound ............................................................................. 8

8............ Extension to external Territories ......................................................... 8

9............ Extra‑territorial application ................................................................ 8

Part 2--The Future Fund                                                                                                     9

10.......... Simplified outline ................................................................................ 9

11.......... Establishment of the Future Fund ...................................................... 9

12.......... Establishment of the Future Fund Special Account ........................... 9

13.......... Operation of the Future Fund ............................................................ 9

Part 3--Investment of the Future Fund                                                                     11

14.......... Simplified outline .............................................................................. 11

15.......... Objects of investment of the Fund ................................................... 11

16.......... Investment of the Fund .................................................................... 11

17.......... Management of investments of the Fund ......................................... 12

18.......... Future Fund Investment Mandate .................................................... 12

18A....... Limitation on Future Fund Investment Mandate ............................. 14

19.......... Board to be consulted on Future Fund Investment Mandate ........... 14

20.......... Compliance with Future Fund Investment Mandate ....................... 15

21.......... Board must not trigger the takeover provisions of the Corporations Act 2001        15

23.......... Borrowing ......................................................................................... 16

24.......... Investment policies ........................................................................... 16

25.......... Derivatives ........................................................................................ 18

26.......... Additional financial assets ................................................................ 18

27.......... Securities lending arrangements ........................................................ 18

28.......... Investment managers ........................................................................ 19

29.......... Custody of securities ........................................................................ 20

30.......... Refund of franking credits ................................................................ 20

32.......... Realisation of non‑financial assets .................................................... 20

Part 4--The Future Fund Board of Guardians                                                      21

Division 1--Introduction                                                                                           21

33.......... Simplified outline .............................................................................. 21

Division 2--Establishment and functions of the Future Fund Board of Guardians          22

34.......... Establishment of the Future Fund Board of Guardians .................... 22

35.......... Board's functions ............................................................................. 22

36.......... Board's ordinary powers .................................................................. 22

37.......... Board is a body corporate ................................................................ 22

38.......... Membership ..................................................................................... 23

39.......... Application of the Corporations Act 2001 ....................................... 24

Division 3--Terms and conditions for Board members                            25

40.......... Term of appointment and related matters for Board members ........ 25

41.......... Remuneration and allowances of Board members ............................ 25

42.......... Leave of absence of Board members ................................................. 25

43.......... Resignation of Board members ......................................................... 25

44.......... Termination of appointment of Board members .............................. 25

45.......... Other terms and conditions of Board members ................................ 26

46.......... Acting Board members ..................................................................... 26

Division 4--Meetings                                                                                                 28

47.......... Holding of meetings .......................................................................... 28

48.......... Who is to preside at a meeting .......................................................... 28

49.......... Quorum ............................................................................................. 28

50.......... Voting ............................................................................................... 29

51.......... Records of meetings .......................................................................... 29

Division 5--Resolutions without meetings                                                      30

52.......... Resolutions without meetings .......................................................... 30

53.......... Record of resolutions ........................................................................ 30

Division 6--Reporting obligations                                                                       31

54.......... Nominated Minister may require Board to prepare reports or give information     31

55.......... Keeping the responsible Ministers informed etc. ............................. 32

Division 7--Duties of Board members etc.                                                     33

56.......... Care and diligence--civil obligation .................................................. 33

57.......... Good faith--civil obligation ............................................................. 33

58.......... Use of position--civil obligation ...................................................... 34

59.......... Use of information--civil obligation ................................................ 34

60.......... Good faith--criminal offence ........................................................... 34

61.......... Use of position--criminal offence .................................................... 35

62.......... Use of information--criminal offence .............................................. 35

63.......... Compliance with statutory duties .................................................... 36

64.......... Interaction of sections 56 to 62 with other laws etc. ....................... 36

65.......... Reliance on information or advice provided by others ..................... 37

66.......... Consequences of breach of duty--additional effect of the Commonwealth Authorities and Companies Act 1997 37

67.......... Insurance for certain liabilities of Board members ............................ 38

Division 8--Conflict of interests                                                                           39

68.......... Material personal interest--Board member's duty to disclose ........ 39

69.......... Board member may give other Board members standing notice about an interest    40

70.......... Interaction of sections 68 and 69 with other laws etc. ..................... 41

71.......... Restrictions on voting ....................................................................... 41

72.......... Ministerial power to make declarations and class orders ................. 42

Part 5--The Future Fund Management Agency                                                  44

Division 1--Introduction                                                                                           44

73.......... Simplified outline .............................................................................. 44

Division 2--Establishment and functions of the Future Fund Management Agency      45

74.......... Establishment of the Future Fund Management Agency ................. 45

75.......... Functions of the Agency .................................................................. 45

Division 3--Management and staff of the Future Fund Management Agency   46

76.......... Duties of the Chair ........................................................................... 46

77.......... Staff of the Agency ........................................................................... 46

78.......... Consultants and persons seconded to the Agency ........................... 46

79.......... Chair not subject to direction by the Board on certain matters ........ 47

Division 4--Other provisions                                                                                 48

80.......... Application of the Financial Management and Accountability Act 1997 48

81.......... Annual report ................................................................................... 48

82.......... Consultants and advisers to the Board ............................................. 51

Part 6--Miscellaneous                                                                                                        53

83.......... Nominated Minister ......................................................................... 53

83A....... Delegation by the nominated Minister ............................................. 53

83B....... Delegation by the Board ................................................................... 54

84.......... Miscellaneous receipts to be credited to the Fund Account ............ 54

84A....... Exemption from taxation .................................................................. 55

84B....... Franking credits ................................................................................ 56

84C....... Board must not have a significant stake in a foreign listed company 56

85.......... Regulations ....................................................................................... 57

Schedule 1--Credits of amounts, and transfers of financial assets, to the Future Fund     58

Part 1--Introduction                                                                                                             58

1............ Simplified outline .............................................................................. 58

Part 2--Credits of amounts to the Future Fund                                                    59

2............ Credit of $18 billion to the Fund Account ....................................... 59

3............ Credit of additional amounts to the Fund Account--Ministerial determinations    59

4............ Duration of subclause 3(1) determinations ....................................... 60

5............ Credit of amounts to the Fund Account--gifts ................................ 61

Part 3--Transfers of financial assets to the Future Fund                               62

6............ Transfers to the Fund--Commonwealth‑owned financial assets ..... 62

7............ Transfers of financial assets to the Fund--gifts ............................... 64

8............ Ministerial directions about transferred financial assets .................. 64

9............ Continuing effect of instruments relating to transferred financial assets 65

Schedule 2--Debits of amounts from the Future Fund                                     67

1............ Simplified outline .............................................................................. 67

2............ Purposes of the Fund Account ......................................................... 67

3............ Board must ensure that there is sufficient money to cover the main purposes of the Fund Account     70

Schedule 2A--Inter‑fund transfers                                                                              71

1............ Simplified outline .............................................................................. 71

2............ Transfers from the Future Fund to the Building Australia Fund ..... 71

3............ Transfers from the Future Fund to the Education Investment Fund 71

4............ Transfers from the Future Fund to the Health and Hospitals Fund 72

Schedule 3--Target asset level declarations                                                         73

1............ Simplified outline .............................................................................. 73

2............ Designated actuary ........................................................................... 73

3............ Target asset level declarations .......................................................... 73

4............ Reliance on projections when making target asset level declarations etc.                 75

Notes                                                                                                                                             77

An Act about the Future Fund, and for other purposes

  

Notes to the Future Fund Act 2006

Note 1

The Future Fund Act 2006 as shown in this compilation comprises Act No. 12, 2006 amended as indicated in the Tables below.

For all relevant information pertaining to application, saving or transitional provisions see Table A.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Future Fund Act 2006	12, 2006	23 Mar 2006	3 Apr 2006
Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006	101, 2006	14 Sept 2006	Schedule 2 (item 113) and Schedule 6 (items 1, 6-11): Royal Assent	Sch. 6 (items 1, 6-11)
Higher Education Endowment Fund (Consequential Amendments) Act 2007	161, 2007	24 Sept 2007	Schedule 1: 25 Sept 2007 (see s. 2(1)) Remainder: Royal Assent	Sch. 1 (items 78-85)
Nation‑building Funds (Consequential Amendments) Act 2008	155, 2008	18 Dec 2008	Schedule 2 (items 1-44) and Schedule 3 (item 7): 1 Jan 2009 (see  s. 2(1))	Sch. 3 (item 7)

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted
Provision affected	How affected
Title......................................	am. No. 161, 2007
Part 1
Ss. 3, 4................................	am. No. 161, 2007
Note to s. 4..........................	ad. No. 161, 2007
	am. No. 155, 2008
S. 5......................................	am. No. 161, 2007; No. 155, 2008
Part 2
S. 13....................................	am. No. 155, 2008
Note 2A to s. 13..................	ad. No. 155, 2008
Part 3
Ss. 14, 15............................	am. No. 161, 2007
Heading to s. 18..................	am. No. 161, 2007
S. 18....................................	am. No. 161, 2007
Note to s. 18(10).................	am. No. 161, 2007
S. 18A.................................	ad. No. 161, 2007
Heading to s. 19..................	am. No 161, 2007
Heading to s. 20..................	am. No. 161, 2007
Ss. 20, 21............................	am. No. 161, 2007
S. 22....................................	rep. No. 161, 2007
Ss. 23-25............................	am. No. 161, 2007
S. 27....................................	am. No. 161, 2007
S. 28....................................	am.  No. 161, 2007; No. 155, 2008
S. 30....................................	rs. No. 161, 2007
S. 31....................................	rep. No. 161, 2007
Note to s. 31(4) ..................	am. No. 101, 2006
	rep. No. 161, 2007
Part 4
Division 1
Note to s. 33........................	ad. No. 161, 2007
	am. No. 155, 2008
Division 2
S. 35....................................	am. No. 161, 2007; No. 155, 2008
Division 6
S. 54....................................	am. No. 161, 2007
S. 55....................................	am. No. 161, 2007; No. 155. 2008
Division 7
Ss. 60-62............................	am. No. 155, 2008
S. 63....................................	am. No. 161, 2007; No. 155, 2008
S. 65....................................	am. No. 155, 2008
Part 5
Division 4
Subhead. to s. 81(1)...........	ad. No. 155, 2008
Subhead. to s. 81(2)...........	ad. No. 155, 2008
Subhead. to s. 81(3)...........	ad. No. 155, 2008
S. 81....................................	am. No. 161, 2007; No. 155, 2008
Part 6
Ss. 83A, 83B.......................	ad. No. 155, 2008
S. 84....................................	am. No. 161, 2007; No. 155, 2008
Ss. 84A- 84C......................	ad. No. 161, 2007
Schedule 1
Part 3
C. 8......................................	am. No. 161, 2007
Schedule 2
Heading to c. 2(1)...............	ad. No. 161, 2007
C. 2......................................	am. No. 161, 2007; No. 155, 2008
C. 3......................................	am. No. 161, 2007
Schedule 2A
Schedule 2A.......................	ad. No. 155, 2008

Table A

Application, saving or transitional provisions

Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 (No. 101, 1997)

Schedule 6

1  Application of Schedule 1 and 2 amendments

Except as mentioned in items 2 and 3, the repeals and amendments made by Schedules 1 and 2 apply:

                     (a)  so far as they affect assessments--to assessments for the 2006‑07 income year and all later income years; and

                     (b)  otherwise--to acts done or omitted to be done, or states of affairs existing, after the commencement of the repeals and amendments.

6  Object

The object of this Part is to ensure that, despite the repeals and amendments made by this Act, the full legal and administrative consequences of:

                     (a)  any act done or omitted to be done; or

                     (b)  any state of affairs existing; or

                     (c)  any period ending;

before such a repeal or amendment applies, can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken after the repeal or amendment applies.

7  Making and amending assessments, and doing other things, in relation to past matters

Even though an Act is repealed or amended by this Act, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003):

                     (a)  making or amending an assessment (including under a provision that is itself repealed or amended);

                     (b)  exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);

in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

Example 1: On 31 July 1999, Greg Ltd lodged its annual return under former section 160ARE of the Income Tax Assessment Act 1936. The return stated that the company had a credit on its franking account and that no franking deficit tax was payable for the 1998‑99 franking year. Under former section 160ARH of that Act, the Commissioner was taken to have made an assessment consistent with the return.

                   Following an audit undertaken after the repeal of Part IIIAA of that Act, the Commissioner concludes that Greg Ltd fraudulently overfranked dividends it paid during the 1998‑99 franking year, and had a franking account deficit for that franking year. As a result, the Commissioner considers that franking deficit tax and a penalty by way of additional tax are payable.

                   The Commissioner can amend the assessment under former section 160ARN of that Act, because item 7 of this Schedule disregards the repeal of that section for the purposes of making an assessment in relation to the 1998‑99 franking year. Item 7 will also disregard the repeal of Division 11 of former Part IIIAA to the extent necessary for the Commissioner to assess Greg Ltd's liability to a penalty by way of additional tax.

                   Despite the repeal of sections 160ARU and 160ARV, item 9 will ensure that the general interest charge will accrue on the unpaid franking deficit tax and penalty until they are paid.

                   Item 7 will also preserve Greg Ltd's right, under former section 160ART of that Act, to object against the Commissioner's amended assessment (including the penalty), since the objection is the exercise of a right in relation to a franking year that ended before the repeal of Part IIIAA.

Example 2: During the 1997‑98 income year, Duffy Property Ltd withheld amounts from its employees' wages as required by former Divisions 1AAA and 2 of Part VI of the Income Tax Assessment Act 1936. The company failed to notify the Commissioner of those amounts, and failed to remit them to the Commissioner.

                   Following an audit undertaken after the repeal of those Divisions, the Commissioner discovers that the withheld amounts have not been remitted. The company's records are incomplete and the Commissioner is unable to completely ascertain the extent of its liability for the withheld amounts. Under section 222AGA of that Act, the Commissioner makes an estimate of the liability.

                   Item 7 will disregard the repeal of section 220AAZA of that Act (which empowered the Commissioner to recover the amount of the estimate). Even though the estimate is made after the repeal, it relates to amounts withheld before the repeal.

8  Saving of provisions about effect of assessments

If a provision or part of a provision that is repealed or amended by this Act deals with the effect of an assessment, the repeal or amendment is disregarded in relation to assessments made, before or after the repeal or amendment applies, in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

9  Saving of provisions about general interest charge, failure to notify penalty or late reconciliation statement penalty

If:

                     (a)  a provision or part of a provision that is repealed or amended by this Act provides for the payment of:

                              (i)  general interest charge, failure to notify penalty or late reconciliation statement penalty (all within the meaning of the Income Tax Assessment Act 1936); or

                             (ii)  interest under the Taxation (Interest on Overpayments and Early Payments) Act 1983; and

                     (b)  in a particular case, the period in respect of which the charge, penalty or interest is payable (whether under the provision or under the Taxation Administration Act 1953) has not begun, or has begun but not ended, when the provision is repealed or amended;

then, despite the repeal or amendment, the provision or part continues to apply in the particular case until the end of the period.

10  Repeals disregarded for the purposes of dependent provisions

If the operation of a provision (the subject provision) of any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003) made under any Act depends to any extent on an Act, or a provision of an Act, that is repealed by this Act, the repeal is disregarded so far as it affects the operation of the subject provision.

11  Schedule does not limit operation of section 8 of the Acts Interpretation Act 1901

This Schedule does not limit the operation of section 8 of the Acts Interpretation Act 1901.

Higher Education Endowment Fund (Consequential Amendments) Act 2007
  (No. 161, 2007)

Schedule 1

78  Transitional--Investment Mandate

(1)        This item applies to a direction that:

                     (a)  was given under subsection 18(1) of the Future Fund Act 2006; and

                     (b)  was in force immediately before the commencement of this item.

(2)        The amendments of subsections 18(1), (3), (6), (10) and (12) of the Future Fund Act 2006 made by this Schedule do not affect the continuity of the direction.

79  Transitional--borrowings

(1)        This item applies to a borrowing that:

                     (a)  was authorised under subsection 23(2) or (3) of the Future Fund Act 2006; and

                     (b)  was in existence immediately before the commencement of this item.

(2)        The Future Fund Act 2006 has effect, after the commencement of this item, as if the borrowing had been authorised under subsection 23(2) or (3), as the case requires, of that Act as amended by this Schedule.

80  Transitional--investment policies

(1)        This item applies to policies that:

                     (a)  were formulated under subsection 24(1) of the Future Fund Act 2006; and

                     (b)  were in force immediately before the commencement of this item.

(2)        The policies have effect, after the commencement of this item, as if they had been formulated under subsection 24(1) of the Future Fund Act 2006 as amended by this Schedule.

81  Transitional--derivatives

(1)        This item applies to a derivative that:

                     (a)  was acquired under subsection 25(1) of the Future Fund Act 2006; and

                     (b)  was held by the Board immediately before the commencement of this item.

(2)        The Future Fund Act 2006 has effect, after the commencement of this item, as if the derivative had been acquired under subsection 25(1) of that Act as amended by this Schedule.

82  Transitional--securities lending arrangements

(1)        This item applies to a securities lending arrangement that:

                     (a)  was entered into under subsection 27(1) of the Future Fund Act 2006; and

                     (b)  was in force immediately before the commencement of this item.

(2)        The Future Fund Act 2006 has effect, after the commencement of this item, as if the securities lending arrangement had been entered into under subsection 27(1) of that Act as amended by this Schedule.

83  Transitional--investment managers

(1)        This item applies to an engagement of an investment manager if the engagement:

                     (a)  was made under subsection 28(1) of the Future Fund Act 2006; and

                     (b)  was in force immediately before the commencement of this item.

(2)        The engagement has effect, after the commencement of this item, as if it had been made under subsection 28(1) of the Future Fund Act 2006 as amended by this Schedule.

84  Application of amendments--directions under subsection 18(1) of the Future Fund Act 2006

The amendments made by items 19, 21 and 26 apply in relation to a direction under subsection 18(1) of the Future Fund Act 2006 that is given after the commencement of this item.

85  Application of amendment--directions under subclause 8(1) of Schedule 1 to the Future Fund Act 2006

The amendment made by item 69 applies in relation to a direction under subclause 8(1) of Schedule 1 to the Future Fund Act 2006 that is given after the commencement of this item.

Nation‑building Funds (Consequential Amendments) Act 2008 (No. 155, 2008)

Schedule 3

7  Transitional--definition of acquire in section 5 of the Future Fund Act 2006

The amendment made by item 2 of Schedule 2 does not imply that, at a time before the commencement of that item, a reference in the Future Fund Act 2006 to acquire did not include a reference to acquire by way of issue.