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This is a Bill, not an Act. For current law, see the Acts databases.
TERRITORY INSURANCE OFFICE AMENDMENT BILL 2006
Serial
56Territory Insurance Office Amendment Bill
2006Mr
Stirling
AN ACT
to
amend the Territory Insurance Office Act
NORTHERN TERRITORY OF
AUSTRALIA
Territory Insurance Office AMENDMENT ACT
2006
____________________
Act No. [ ] of 2006
____________________
TABLE OF PROVISIONS
Section
NORTHERN TERRITORY
OF AUSTRALIA
____________________
Act No. [ ] of 2006
____________________
AN ACT
[Assented to [ ]
2006]
[Second reading [ ]
2006]
The Legislative Assembly of the Northern Territory enacts
as follows:
Short title
This Act may be cited as the Territory Insurance Office
Amendment Act 2006.
Commencement
Sections 4(3) and 6 commence on the day on which the
Administrator's assent to this Act is declared.
The remaining provisions of this Act are taken to have
commenced on 1 July 2006.
Act amended
This Act amends the Territory Insurance Office
Act.
Amendment of section 3 (Definitions)
(1) Section 3, heading
omit, substitute
Interpretation
(2) Section 3(1)
insert (in alphabetical order)
"commercial business" means the part of the Office's
business that is not the MAC business;
"Determinations" means the Determinations made under section
33A;
"Fund" means the Motor Accidents (Compensation) Fund
established by section 22B;
"MAC business" means the part of the Office's business that
relates to the administration of the MAC scheme;
"MAC scheme" means the scheme of compensation established by
the Motor Accidents (Compensation) Act;
"statement of corporate intent", for a financial year, means
a statement of corporate intent prepared for that year that is in force
under
section 8A.
(3) Section 3(1)
insert (in alphabetical order)
"MAC member", see section 10(2);
Repeal and substitution of section 8A
Section 8A
repeal, substitute
8A. Statements
of corporate intent – timetable and procedure
(1) The Board must, for each financial year,
prepare:
(a) a written statement of corporate intent for the
commercial business; and
(b) a written statement of corporate intent for the MAC
business.
(2) In preparing the statements, the Board
must:
(a) consult with the Minister; and
(b) make changes to the statements as agreed between the
Minister and the Board.
(3) The Board must give the statements to the
Minister:
(a) not later than one month before the beginning of that
year; or
(b) by another date agreed between the Minister and the
Board.
(4) The Board may, with the Minister's agreement, change a
statement at any time.
(5) The Minister may, by written notice, direct the Board to
change a statement as specified in the direction.
(6) The Office must comply with the
direction.
(7) The Board must give a copy of each changed statement to
the Minister as soon as practicable after making the changes.
(8) The Minister must table in the Legislative Assembly a
copy of any of the following within 6 sitting days after receiving
it:
(a) a statement given to the Minister under subsection
(3);
(b) a changed statement given to the Minister under
subsection (7).
(9) The Minister must table in the Legislative Assembly a
copy of each direction given under subsection (5) within 6 sitting days after
giving it.
(10) Before tabling a document under subsection (8) or (9),
the Minister:
(a) must ask the Board to consider whether it contains any
commercially sensitive information; and
(b) may delete from it any such information (whether as a
result of the Board's advice or not); and
(c) may allow the document (whether including the deleted
information or not) to be made available to a specified person or
body.
8B. Statements
of corporate intent – contents
(1) A statement of corporate intent prepared under section
8A(1)(a) for a financial year must, for that year and each of the 2 following
financial years, specify the following information:
(a) the Office's objectives for the commercial
business;
(b) the nature and scope of the commercial
business;
(c) the material risks faced by the Office for the
commercial business;
(d) the strategies for minimising the
risks;
(e) the strategies for improving the Office's financial
performance for the commercial business;
(f) the financial targets (including capital targets) and
other measures for judging the Office's performance for the commercial
business;
(g) the accounting policies to be applied in the Office's
accounts for the commercial business;
(h) any other matters that the Minister and the Board wish
to include in the statement for the commercial business.
(2) A
statement of corporate intent prepared under section 8A(1)(b) for a financial
year must, for that year and each of the 2 following financial years, specify
the following information:
(a) the Office's objectives for the MAC
business;
(b) the nature and scope of the MAC
business;
(c) the material risks faced by the Office for the MAC
business;
(d) the strategies for achieving the Office's objectives for
the MAC business;
(e) the strategies for minimising the risks mentioned in
paragraph (c);
(f) the financial targets (including solvency targets) and
other measures for judging the Office's performance for the MAC
business;
(g) the accounting policies to be applied in the Office's
accounts for the MAC business;
(h) any other matters that the Minister and the Board wish
to include in the statement for the MAC business.
8C. Statements
of corporate intent – reports
(1) The Office must, within 3 months after the end of each
financial year or by a later time approved by the Minister, give the Minister a
report for each statement of corporate intent for that year.
(2) The report must:
(a) specify the Office's performance by reference to the
statement; and
(b) identify any significant departures from the statement;
and
(c) specify the reasons for the departures.
(3) The Minister must table in the Legislative Assembly a
copy of the report within 6 sitting days after receiving it.
(4) Before tabling a copy of the report, the
Minister:
(a) must ask the Board to consider whether it contains any
commercially sensitive information; and
(b) may delete from it any such information (whether as a
result of the Board's advice or not).
Amendment of section 10 (Composition of the
Board)
(1) Section 10, heading
omit, substitute
Composition of Board
(2) Section 10(1)
omit
5
substitute
6
(3) Section 10(2)
omit, substitute
(2) One member (other than the Chief Executive Officer) must
be appointed solely for the MAC scheme (the "MAC member").
(3) The Minister may appoint a person (the "nominee") to
attend a Board meeting on behalf of the MAC member.
(4) In a Board meeting, the MAC member or nominee may only
deliberate and vote on a matter relating to the MAC business.
(5) Subject to subsections (6) to (8), the exercise of a
power or the performance of a function by the Board is not affected by the
vacancy in the office of a member or the absence of a member in a Board
meeting.
(6) The Board must not deliberate or vote on a matter
relating to the MAC business in a Board meeting unless the MAC member or nominee
is present in the meeting.
(7) A decision of the Board on that matter made in a Board
meeting is invalid if the MAC member or nominee is not present in the
meeting.
(8) In addition, a decision of the Board on that matter is
invalid if:
(a) the matter involves a conflict between managing the Fund
and other assets of the Office; and
(b) the decision is not supported by the MAC member or
nominee.
Amendment of section 22 (Moneys of the
Office)
(1) Section 22, heading
omit, substitute
Moneys of Office
(2) Section 22(a) to (e), at the end
insert
and
(3) After section 22(f)
insert
(fa) moneys in the Fund; and
New sections 22B to 22E
After section 22A
insert
22B. Motor
Accidents (Compensation) Fund
(1) The Motor Accidents (Compensation) Fund is
established.
(2) On the commencement of this section, all the assets
allocated for the MAC business under the Determinations immediately before that
commencement becomes part of the Fund.
(3) In addition, the Fund includes:
(a) amounts paid to the Office under section 46 of the
Motor Vehicles Act; and
(b) other amounts received by the Office for the MAC scheme;
and
(c) assets purchased with amounts in the
Fund.
(1) Assets of the Fund must be applied solely for the
following purposes:
(a) the Office's obligations under the Motor Accidents
(Compensation) Act;
(b) the operation of the MAC scheme;
(c) the promotion of road safety;
(d) the acquisition of assets for the Fund;
(e) the discharge of liabilities in relation to the MAC
business.
(2) Assets of the Office that are not part of the Fund must
not be applied for a purpose mentioned in subsection (1)(a), (b), (d) or
(e).
To avoid doubt:
(a) a trust is not created in relation to the Fund;
and
(b) the Office and the members are not trustees in relation
to the Fund.
22E. Conflict
of interests policy statement
(1) The Board must prepare for the Minister's approval a
written policy statement for resolving conflicts between managing the Fund and
other assets of the Office.
(2) In exercising its powers and performing its functions,
the Board must have regard to the policy statement as approved by the
Minister.
(3) The Board:
(a) must review the policy statement before the end of each
financial year; and
(b) may, following the review, prepare a new policy
statement for the Minister's approval.
(4) The new policy statement must be given to the Minister
not later than when the statements of corporate intent for the next financial
year are given to the Minister for approval.
Amendment of section 23 (Application of
moneys)
(1) Section 23(1)
omit
The moneys
substitute
Subject to section 22B, the moneys
(2) Section 23(2)
omit
(3) After section 23(4)
insert
(5) An arrangement of an inter-account loan or equity
contribution mentioned in subsection (4) that affects the Fund must not be made
without the Minister's approval.
Amendment of section 25A (Reimbursement of certain motor
accidents scheme expenses)
(1) Section 25A, heading
omit, substitute
Reimbursement
of MAC expenses
(2) Section 25A(1)
omit
motor accident scheme established by the Motor Accidents
(Compensation) Act
substitute
MAC scheme
(3) Section 25A(2)
omit, substitute
(2) An amount determined under subsection (1) must be paid
by the Office from the Fund to the Central Holding Authority.
Amendment of section 26 (Payment of surplus moneys to the
Territory)
(1) Section 26, heading
omit, substitute
Payment
of surplus moneys to Territory
(2) Section 26(1)(a)
omit, substitute
(a) for amounts in the Fund – be paid into a fund
maintained within the appropriate Agency Operating Account under the
Financial Management Act; and
Amendment of section 27 (Audit and annual
report)
After section 27(1)
insert
(1A) The report must consist of:
(a) a report for the Office as a whole; and
(b) a separate report for the commercial business;
and
(c) a separate report for the MAC business.
Amendment of section 28 (Office to pay taxes)
Section 28(1)
omit
all the words after "doing so)"
substitute
income tax under:
(a) the Income Tax Assessment Act 1936 (Cth);
and
(b) the Income Tax Assessment Act 1997
(Cth).
Amendment of section 30 (Territory to guarantee contracts of
insurance and deposit, &c.)
(1) Section 30, heading
omit, substitute
(2) Section 30(1)(b)
omit
agreement,
substitute
agreement; and
(3) After section 30(1)(b)
insert
(c) the liabilities of the Office in relation to the MAC
business;
Amendment of section 30A (Fee for guarantee)
Section 30A(1)
omit
section 30
substitute
section 30(1)(a) or (b)
Amendment of section 33A (Treasurer's
Determinations)
After section 33A(1)
insert
(1A) To avoid doubt, the Determinations may make specific
provisions for the commercial business and MAC business.
Amendment of section 33B (Prudential supervision
fee)
After section 33B(2)
insert
(2A) To avoid doubt, the fee may relate to:
(a) the commercial business; or
(b) the MAC business; or
(c) both the commercial business and MAC
business.
New Part VII
After section 36
insert
Part
viI –Transitional matters for Territory
Insurance Office Amendment Act 2006
37. Application
of amendments
(1) The amendments made to this Act by the Territory
Insurance Office Amendment Act 2006 apply to the financial year
beginning on 1 July 2006 and each subsequent financial year.
(2) Subsection (1):
(a) has effect subject to section 38; and
(b) does not apply to the amendments made by sections 4(3)
and 6 of the Territory Insurance Office Amendment Act
2006.
38. Period
for preparation of documents
(1) The first statements of corporate intent prepared for
section 8A must be given to the Minister for approval:
(a) not later than 6 months after the beginning of the
commencement of that section; or
(b) by another date agreed between the Minister and the
Board.
(2) The first report prepared for section 8C must be given
to the Minister for approval:
(a) not later than 3 months after the beginning of the
financial year beginning on 1 July 2007; or
(b) by another date agreed between the Minister and the
Board.
(3) The first policy statement prepared for section 22E
must be given to the Minister for approval:
(a) not later than 6 months after the beginning of the
commencement of that section; or
(b) by another date agreed between the Minister and the
Board.
____________________________
__________________
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