Commonwealth of Australia Bills Commonwealth of Australia Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
2019-2020
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Structured Finance Support
(Coronavirus Economic Response
Package) Bill 2020
No. , 2020
(Treasury)
A Bill for an Act to establish the Structured
Finance Support (Coronavirus Economic
Response) Fund, and for related purposes
No. , 2020
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
i
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Objects of this Act ............................................................................. 2
4
Simplified outline of this Act ............................................................ 2
5
Definitions ......................................................................................... 3
6
Crown to be bound ............................................................................ 4
7
Extension to external Territories ....................................................... 4
8
Extra-territorial application ............................................................... 4
Part 2--The Structured Finance Support (Coronavirus
Economic Response) Fund
5
9
Simplified outline of this Part ............................................................ 5
10
Establishment of the Structured Finance Support
(Coronavirus Economic Response) Fund .......................................... 5
11
Establishment of the Structured Finance Support
(Coronavirus Economic Response) Fund Special Account ............... 6
12
Investments of the Fund .................................................................... 6
13
Credits to the Account ....................................................................... 7
14
Purposes of the Account .................................................................... 7
15
Reducing the balance of the Account ................................................ 8
Part 3--Miscellaneous
9
16
Simplified outline of this Part ............................................................ 9
17
Constitutional limits .......................................................................... 9
18
Delegations by the Minister ............................................................... 9
19
Annual report ................................................................................... 11
20
Rules ................................................................................................ 11
No. , 2020
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
1
A Bill for an Act to establish the Structured
1
Finance Support (Coronavirus Economic
2
Response) Fund, and for related purposes
3
The Parliament of Australia enacts:
4
Part 1--Preliminary
5
6
1 Short title
7
This Act is the
Structured Finance Support (Coronavirus
8
Economic Response Package) Act 2020
.
9
Part 1
Preliminary
Section 2
2
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
No. , 2020
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
7
enacted. It will not be amended to deal with any later amendments of
8
this Act.
9
(2) Any information in column 3 of the table is not part of this Act.
10
Information may be inserted in this column, or information in it
11
may be edited, in any published version of this Act.
12
3 Objects of this Act
13
The objects of this Act are:
14
(a) to ensure continued access to funding markets impacted by
15
the economic effects of the Coronavirus known as
16
COVID-19; and
17
(b) to mitigate impacts, resulting from those economic effects,
18
on competition in consumer and business lending markets;
19
by the Commonwealth making investments in accordance with this
20
Act.
21
4 Simplified outline of this Act
22
This Act sets up the Structured Finance Support (Coronavirus
23
Economic Response) Fund.
24
Preliminary
Part 1
Section 5
No. , 2020
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
3
The Fund consists of the Structured Finance Support (Coronavirus
1
Economic Response) Fund Special Account and the investments of
2
the Fund.
3
The Minister is responsible for making investment decisions for
4
the Fund, however, the Minister may delegate the power to make
5
these decisions.
6
Investment decisions must be made in accordance with any
7
directions given by the Minister.
8
5 Definitions
9
In this Act:
10
Account
means the Structured Finance Support (Coronavirus
11
Economic Response) Fund Special Account established by
12
section 11.
13
amount of credit
has the same meaning as in the National Credit
14
Code.
15
authorised debt security
has the meaning given by
16
subsection 12(4).
17
credit
has the same meaning as in the National Credit Code.
18
eligible delegate
has the meaning given by subsection 18(2).
19
Finance Minister
means the Minister who administers the
Public
20
Governance, Performance and Accountability Act 2013
.
21
Fund
means the Structured Finance Support (Coronavirus
22
Economic Response) Fund established by section 10.
23
investment
means any mode of application of money or financial
24
assets for the purpose of gaining a return (whether by way of
25
income, capital gain or any other form of return).
26
Part 1
Preliminary
Section 6
4
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
No. , 2020
investment of the Fund
means an investment that, under
1
section 12, is taken to be an investment of the Fund.
2
listed entity
has the same meaning as in the
Public Governance,
3
Performance and Accountability Act 2013
.
4
National Credit Code
has the same meaning as in the
National
5
Consumer Credit Protection Act 2009
.
6
official
has the same meaning as in the
Public Governance,
7
Performance and Accountability Act 2013
.
8
rules
means rules made under section 20.
9
6 Crown to be bound
10
(1) This Act binds the Crown in each of its capacities.
11
(2) This Act does not make the Crown liable to be prosecuted for an
12
offence.
13
7 Extension to external Territories
14
This Act extends to every external Territory.
15
8 Extra-territorial application
16
This Act extends to acts, omissions, matters and things outside
17
Australia.
18
The Structured Finance Support (Coronavirus Economic Response) Fund
Part 2
Section 9
No. , 2020
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
5
Part 2--The Structured Finance Support
1
(Coronavirus Economic Response) Fund
2
3
9 Simplified outline of this Part
4
This Part sets up the Structured Finance Support (Coronavirus
5
Economic Response) Fund.
6
The Fund consists of the Structured Finance Support (Coronavirus
7
Economic Response) Fund Special Account and the investments of
8
the Fund.
9
$15 billion must be credited to the Account. The Minister may
10
also, with the agreement of the Finance Minister, determine that
11
additional amounts be credited to the Fund.
12
Amounts may be debited from the Account for the purposes of the
13
Account, which include paying the costs of making investments.
14
The Minister may also determine that the balance of the Account
15
be reduced.
16
10 Establishment of the Structured Finance Support (Coronavirus
17
Economic Response) Fund
18
(1) The Structured Finance Support (Coronavirus Economic Response)
19
Fund is established by this section.
20
(2) The Structured Finance Support (Coronavirus Economic Response)
21
Fund consists of:
22
(a) the Structured Finance Support (Coronavirus Economic
23
Response) Fund Special Account; and
24
(b) the investments of the Fund.
25
Part 2
The Structured Finance Support (Coronavirus Economic Response) Fund
Section 11
6
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
No. , 2020
11 Establishment of the Structured Finance Support (Coronavirus
1
Economic Response) Fund Special Account
2
(1) The Structured Finance Support (Coronavirus Economic Response)
3
Fund Special Account is established by this section.
4
(2) The Account is a special account for the purposes of the
Public
5
Governance, Performance and Accountability Act 2013
.
6
Note:
An Appropriation Act may contain a provision to the effect that, if any
7
of the purposes of a special account is a purpose that is covered by an
8
item in the Appropriation Act (whether or not the item expressly
9
refers to the special account), then amounts may be debited against the
10
appropriation for that item and credited to that special account.
11
12 Investments of the Fund
12
(1) The Minister
may, on behalf of the Commonwealth and to further
13
an object of this Act, invest amounts standing to the credit of the
14
Account in:
15
(a) any authorised debt security; or
16
(b) any other investment, of a kind prescribed by the rules, that
17
complies with the requirements or restrictions (if any)
18
prescribed by the rules.
19
(2) Investments under subsection (1) are taken to be investments of the
20
Fund.
21
(3) At any time before an investment of the Fund matures, the Minister
22
may, on behalf of the Commonwealth, authorise the re-investment
23
of the proceeds upon maturity in an authorised debt security, or an
24
investment to which paragraph (1)(b) applies, with the same entity.
25
The new investment is taken to be an investment of the Fund.
26
(4) An
authorised debt security
is a debt security that:
27
(a) is issued by:
28
(i) a trustee of a trust; or
29
(ii) a body corporate that is a special purpose vehicle; and
30
(b) is expressed in Australian dollars; and
31
(c) relates to one or more amounts of credit; and
32
The Structured Finance Support (Coronavirus Economic Response) Fund
Part 2
Section 13
No. , 2020
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
7
(d) complies with the requirements or restrictions (if any)
1
prescribed by the rules.
2
(5) Section 58 of the
Public Governance, Performance and
3
Accountability Act 2013
(which deals with investment by the
4
Commonwealth) does not apply to an investment of the Fund.
5
13 Credits to the Account
6
(1) There must be credited to the Account amounts equal to the
7
following:
8
(a) $15 billion, to be credited on the day this Act commences;
9
(b) income derived from an investment of the Fund;
10
(c) a return of capital, or any other financial distribution, relating
11
to an investment of the Fund;
12
(d) the proceeds of the realisation of an investment of the Fund.
13
(2) The Minister may, by notifiable instrument, determine that an
14
amount equal to a specified amount is to be credited to the Account
15
at a time specified in, or ascertained in accordance with, the
16
determination.
17
(3) The time specified in, or ascertained in accordance with, the
18
determination must be on or after the time the determination is
19
made.
20
(4) The determination must be expressed to be for a specified budget
21
year.
22
(5) Before making a determination under subsection (2), the Minister
23
must obtain the agreement of the Finance Minister to the
24
determination.
25
14 Purposes of the Account
26
The purposes of the Account are as follows:
27
(a) paying the costs of, including the costs incidental to, the
28
making of an investment under section 12;
29
Part 2
The Structured Finance Support (Coronavirus Economic Response) Fund
Section 15
8
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
No. , 2020
(b) paying or discharging any other costs, expenses and other
1
obligations incurred by the Commonwealth exclusively in
2
connection with the Fund;
3
(c) reducing the balance of the Account under section 15 (and
4
therefore the available appropriation for the Account) without
5
making a real or notional payment.
6
15 Reducing the balance of the Account
7
(1) The Minister may, by writing, direct that a specified amount is to
8
be debited from the Account on a specified day (which must be on
9
or after the day the direction is made).
10
(2) A direction under subsection (1) is not a legislative instrument.
11
(3) The Minister must give a copy of a direction under subsection (1)
12
to the Finance Minister.
13
Miscellaneous
Part 3
Section 16
No. , 2020
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
9
Part 3--Miscellaneous
1
2
16 Simplified outline of this Part
3
This Part contains miscellaneous provisions, including provisions
4
about constitutional limits, delegation of the Minister's powers and
5
functions under this Act, and reporting on the operation of this Act.
6
This Part also contains the general rule-making power.
7
17 Constitutional limits
8
The Minister may exercise a power or perform a function conferred
9
on the Minister by section 12 only:
10
(a) with respect to the implied power of the Parliament to make
11
laws with respect to nationhood; or
12
(b) otherwise with respect to the executive power of the
13
Commonwealth; or
14
(c) with respect to trade or commerce:
15
(i) between Australia and places outside Australia; or
16
(ii) among the States; or
17
(iii) within a Territory, between a State and a Territory or
18
between 2 Territories; or
19
(d) with respect to banking (other than State banking not
20
extending beyond the limits of the State concerned).
21
18 Delegations by the Minister
22
(1) The Minister may, by written instrument, delegate to an eligible
23
delegate (see subsection (2)) any of the Minister's powers or
24
functions under this Act (other than the Minister's powers under
25
section 13 or 20).
26
(2) An
eligible delegate
is an official of the Department of the
27
Treasury, or a listed entity that is prescribed by the rules, who:
28
Part 3
Miscellaneous
Section 18
10
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
No. , 2020
(a) is an SES employee; or
1
(b) is an APS employee who holds or performs the duties of an
2
Executive Level 2, or equivalent, position; or
3
(c) occupies an office or position at an equivalent level to that of
4
an SES employee, or an Executive Level 2 position.
5
(3) Before delegating a power or function under subsection (1), the
6
Minister must have regard to:
7
(a) if the power or function is to be delegated to a person
8
holding, occupying, or performing the duties of, a specified
9
office or position--whether the office or position is
10
sufficiently senior for the person to exercise the power or
11
perform the function or duty; or
12
(b) otherwise--whether the person has appropriate qualifications
13
or expertise to exercise the power or perform the function.
14
(4) A person exercising powers or performing functions under a
15
delegation under subsection (1) must comply with any written
16
directions of the Minister.
17
(5) Without limiting subsection (4), directions may be about any of the
18
following:
19
(a) strategies and policies to be followed for making
20
investments;
21
(b) decision-making criteria for making investments;
22
(c) limits on making investments;
23
(d) risk and return relating to investments;
24
(e) governance arrangements relating to investments;
25
(f) any other matters that the Minister thinks appropriate.
26
(6) A direction under subsection (4):
27
(a) must not have the purpose, or be likely to have the effect, of
28
directly or indirectly requiring that a particular investment be
29
made or not be made; and
30
(b) must not be inconsistent with this Act (including the objects
31
of this Act) or a legislative instrument made under this Act.
32
Miscellaneous
Part 3
Section 19
No. , 2020
Structured Finance Support (Coronavirus Economic Response
Package) Bill 2020
11
19 Annual report
1
The annual report prepared by the Chief Executive Officer of the
2
Australian Office of Financial Management and given to the
3
Minister under section 46 of the
Public Governance, Performance
4
and Accountability Act 2013
for a period must include a report on
5
the operation of this Act during the period.
6
20 Rules
7
(1) The Minister may, by legislative instrument, make rules
8
prescribing matters:
9
(a) required or permitted by this Act to be prescribed by the
10
rules; or
11
(b) necessary or convenient to be prescribed for carrying out or
12
giving effect to this Act.
13
(2) To avoid doubt, the rules may not do the following:
14
(a) create an offence or civil penalty;
15
(b) provide powers of:
16
(i) arrest or detention; or
17
(ii) entry, search or seizure;
18
(c) impose a tax;
19
(d) set an amount to be appropriated from the Consolidated
20
Revenue Fund under an appropriation in this Act;
21
(e) directly amend the text of this Act.
22