Commonwealth Consolidated Acts

FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997 - SECT 39

             (1)  The Finance Minister may, on behalf of the Commonwealth, invest public money in any authorised investment.

             (2)  The Treasurer may, on behalf of the Commonwealth, invest public money in any authorised investment.

          (2A)  For the purposes of investing public money under this section in securities of the Commonwealth, the Commonwealth is to be treated as if it were a separate legal entity to the entity issuing the securities.

             (3)  An investment of public money under this section must not be inconsistent with the terms of any trust that applies to the money concerned.

             (4)  If an amount invested under this section was debited from a Special Account, then expenses of the investment may be debited from that Special Account.

             (5)  Upon realisation of an investment of an amount debited from a Special Account, the proceeds of the investment must be credited to that Special Account.

             (6)  At any time before an investment matures, the Finance Minister or Treasurer, as the case requires, may, on behalf of the Commonwealth, authorise the re‑investment of the proceeds upon maturity in an authorised investment with the same entity.

Note:          The proceeds of investment of the original investment will not become public money when the investment matures because the proceeds will not be received by or on behalf of the Commonwealth before the proceeds are re‑invested.

             (9)  The CRF is appropriated as necessary for the purposes of this section.

           (10)  In this section:

"authorised investment" means:

                     (a)  in relation to the Finance Minister--any of the following investments:

                              (i)  securities of the Commonwealth or of a State or Territory;

                             (ii)  securities guaranteed by the Commonwealth, a State or a Territory;

                            (iii)  a deposit with a bank, including a deposit evidenced by a certificate of deposit;

                            (iv)  any other form of investment prescribed by the regulations; and

                     (b)  in relation to the Treasurer--any of the following investments:

                              (i)  securities of the Commonwealth or of a State or Territory;

                             (ii)  securities guaranteed by the Commonwealth, a State or a Territory;

                            (iii)  a deposit with a bank, including a deposit evidenced by a certificate of deposit;

                            (iv)  debt instruments issued or guaranteed by the government of a foreign country being debt instruments with an investment grade credit rating;

                          (iva)  debt instruments issued or guaranteed by a financial institution whose members consist of foreign countries, or of Australia and foreign countries, being debt instruments with an investment grade credit rating;

                          (ivb)  debt instruments denominated in Australian currency with an investment grade credit rating;

                             (v)  any other form of investment prescribed by the regulations.