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This is a Bill, not an Act. For current law, see the Acts databases.
Serial
56
Territory Insurance Office Amendment Bill
2006
Mr 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:
This Act may be cited as the Territory Insurance Office Amendment Act 2006.
(1) Sections 4(3) and 6 commence on the day on which the Administrator's assent to this Act is declared.
(2) The remaining provisions of this Act are taken to have commenced on 1 July 2006.
This Act amends the Territory Insurance Office Act.
(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);
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).
(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.
(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
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.
(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.
(1) Section 25A, heading
omit, substitute
(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.
(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
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.
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).
(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;
Section 30A(1)
omit
section 30
substitute
section 30(1)(a) or (b)
After section 33A(1)
insert
(1A) To avoid doubt, the Determinations may make specific provisions for the commercial business and MAC business.
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.
After section 36
insert
PART VII –TRANSITIONAL MATTERS FOR TERRITORY INSURANCE OFFICE AMENDMENT ACT 2006
(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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