Future Fund Act 2006 (Cth)

Future Fund Act 2006

No. 12, 2006

Compilation No. 18

Compilation date: 1 November 2023

Includes amendments up to: Act No. 81, 2023

Registered: 27 November 2023

About this compilation

This compilation

This is a compilation of the Future Fund Act 2006 that shows the text of the law as amended and in force on 1 November 2023 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents Part 1—Introduction 1 Short title 2 Commencement 3 Object 4 Simplified outline 5 Definitions 6 Financial assets 7 Crown to be bound 8 Extension to external Territories 9 Extra‑territorial application Part 2—The Future Fund 10 Simplified outline 11 Establishment of the Future Fund 12 Establishment of the Future Fund Special Account 13 Operation of the Future Fund Part 3—Investment of the Future Fund 14 Simplified outline 15 Objects of investment of the Fund 16 Investment of the Fund 17 Management of investments of the Fund 18 Future Fund Investment Mandate 18A Limitation on Future Fund Investment Mandate 19 Board to be consulted on Future Fund Investment Mandate 20 Compliance with Future Fund Investment Mandate 21 Board must not trigger the takeover provisions of the Corporations Act 2001 23 Borrowing 24 Investment policies 25 Derivatives 26 Additional financial assets 27 Securities lending arrangements 28 Investment managers 30 Refund of franking credits 32 Realisation of non‑financial assets Part 4—The Future Fund Board of Guardians Division 1—Introduction 33 Simplified outline Division 2—Establishment and functions of the Future Fund Board of Guardians 34 Establishment of the Future Fund Board of Guardians 35 Board's functions 36 Board's ordinary powers 37 Board is a body corporate 38 Membership 39 Application of the Corporations Act 2001 Division 3—Terms and conditions for Board members 40 Term of appointment and related matters for Board members 41 Remuneration and allowances of Board members 42 Leave of absence of Board members 43 Resignation of Board members 44 Termination of appointment of Board members 45 Other terms and conditions of Board members 46 Acting Board members Division 4—Meetings 47 Holding of meetings 48 Who is to preside at a meeting 49 Quorum 50 Voting 51 Records of meetings Division 5—Resolutions without meetings 52 Resolutions without meetings 53 Record of resolutions Division 6—Reporting obligations 54 Nominated Minister may require Board to prepare reports or give information 55 Keeping the responsible Ministers informed etc. Division 6A—Periodic investment reports 55A Periodic investment reports 55B Reporting rules 55C Board to be consulted on reporting rules Division 7—Duties of Board members etc. Subdivision A—Civil obligations and criminal offences 56 Care and diligence—civil obligation 57 Good faith—civil obligation 58 Use of position—civil obligation 59 Use of information—civil obligation 60 Good faith—criminal offence 61 Use of position—criminal offence 62 Use of information—criminal offence Subdivision B—Other provisions relating to civil penalty provisions and criminal offences 63 Compliance with statutory duties 64 Interaction of sections 56 to 62 with other laws etc. 65 Reliance on information or advice provided by others 66 Finance Minister requiring person to assist 67 Insurance for certain liabilities of Board members Subdivision C—Consequences of breach of duty 67A Consequences of breach of duty—civil penalty provisions 67B Compensation orders 67C Disqualification order for contravention of civil penalty provision by Board members 67D Exception to disqualification order 67E Relief from liability for contravention of civil penalty provision etc. Division 8—Conflict of interests 68 Material personal interest—Board member's duty to disclose 69 Board member may give other Board members standing notice about an interest 70 Interaction of sections 68 and 69 with other laws etc. 71 Restrictions on voting 72 Ministerial power to make declarations and class orders Part 5—The Future Fund Management Agency Division 1—Introduction 73 Simplified outline Division 2—Establishment and functions of the Future Fund Management Agency 74 Establishment of the Future Fund Management Agency 75 Functions of the Agency Division 3—Management and staff of the Future Fund Management Agency 76 Duties of the Chair 77 Staff of the Agency 78 Consultants and persons seconded to the Agency 79 Chair not subject to direction by the Board on certain matters Division 4—Other provisions 80 Application of the Public Governance, Performance and Accountability Act 2013 81 Annual report 82 Consultants and advisers to the Board Part 6—Miscellaneous 83 Nominated Minister 83A Delegation by the nominated Minister 83B Delegation by the Board 84 Miscellaneous receipts to be credited to the Fund Account 84A Exemption from taxation 84B Franking credits 84C Board must not have a significant stake in a foreign listed company 85 Regulations Schedule 1—Credits of amounts, and transfers of financial assets, to the Future Fund Part 1—Introduction 1 Simplified outline Part 2—Credits of amounts to the Future Fund 2 Credit of $18 billion to the Fund Account 3 Credit of additional amounts to the Fund Account—Ministerial determinations 4 Duration of subclause 3(1) determinations 5 Credit of amounts to the Fund Account—gifts Part 3—Transfers of financial assets to the Future Fund 6 Transfers to the Fund—Commonwealth‑owned financial assets 7 Transfers of financial assets to the Fund—gifts 8 Ministerial directions about transferred financial assets 9 Continuing effect of instruments relating to transferred financial assets Schedule 2—Debits of amounts from the Future Fund 1 Simplified outline 2 Purposes of the Fund Account 3 Board must ensure that there is sufficient money to cover the main purposes of the Fund Account Schedule 2A—Inter‑fund transfers 1 Simplified outline 1A Transfers from the Future Fund to the Future Drought Fund 5 Transfers from the Future Fund to the DisabilityCare Australia Fund 5A Transfers from the Future Fund to the Disaster Ready Fund 5B Transfers from the Future Fund to the Housing Australia Future Fund 6 Transfers from the Future Fund to the Medical Research Future Fund 7 Transfers from the Future Fund to the Aboriginal and Torres Strait Islander Land and Sea Future Fund Schedule 3—Target asset level declarations 1 Simplified outline 2 Designated actuary 3 Target asset level declarations 4 Reliance on projections when making target asset level declarations etc. Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act about the Future Fund, and for other purposes