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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017-2018
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
National Housing Finance and
Investment Corporation Bill 2018
No. , 2018
(Treasury)
A Bill for an Act to establish the National Housing
Finance and Investment Corporation, and for
related purposes
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
i
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Object of this Act............................................................................... 2
4
Simplified outline of this Act ............................................................ 3
5
Definitions ......................................................................................... 3
6
Crown to be bound ............................................................................ 4
Part 2--National Housing Finance and Investment
Corporation
5
Division 1--Establishment and functions
5
7
Establishment .................................................................................... 5
8
Functions of the NHFIC .................................................................... 5
9
Powers of the NHFIC ........................................................................ 6
10
Constitutional limits .......................................................................... 6
11
NHFIC does not have privileges and immunities of the
Crown ................................................................................................ 8
Division 2--Investment Mandate
9
12
Investment Mandate .......................................................................... 9
13
Matters covered by Investment Mandate ........................................... 9
14
Limits on Investment Mandate .......................................................... 9
Part 3--Board
11
Division 1--Establishment and functions of the Board
11
15
Establishment of the Board .............................................................. 11
16
Functions of the Board .................................................................... 11
Division 2--Board members
12
17
Membership ..................................................................................... 12
18
Appointment of Board members ..................................................... 12
19
Chair ................................................................................................ 12
20
Term of appointment ....................................................................... 12
21
Acting appointments ........................................................................ 13
22
Remuneration .................................................................................. 13
23
Leave of absence ............................................................................. 14
24
Resignation ...................................................................................... 14
25
Termination of appointment ............................................................ 14
26
Other terms and conditions .............................................................. 15
27
Observer .......................................................................................... 15
ii
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Division 3--Meetings of the Board
17
28
Convening meetings ........................................................................ 17
29
Presiding at meetings ....................................................................... 17
30
Quorum............................................................................................ 17
31
Voting at meetings ........................................................................... 18
32
Conduct of meetings ........................................................................ 18
33
Minutes ............................................................................................ 18
34
Decisions without meetings ............................................................. 18
Part 4--Chief Executive Officer, staff and consultants and
committees
20
Division 1--Chief Executive Officer
20
35
Chief Executive Officer ................................................................... 20
36
Functions of the CEO ...................................................................... 20
37
Appointment of CEO ....................................................................... 20
38
Acting appointment as CEO ............................................................ 21
39
Remuneration of CEO ..................................................................... 21
40
Leave of absence of CEO ................................................................ 21
41
Outside employment ........................................................................ 22
42
Other terms and conditions .............................................................. 22
43
Resignation of CEO ......................................................................... 22
44
Termination of appointment of CEO ............................................... 22
Division 2--Staff and consultants
24
45
Staff ................................................................................................. 24
46
Consultants ...................................................................................... 24
Division 3--Committees
25
47
Committees ...................................................................................... 25
Part 5--Finance
26
48
Maintenance of adequate capital and reserves ................................. 26
49
Payment of annual dividends to the Commonwealth ....................... 26
50
Borrowings etc. ............................................................................... 27
51
Guarantee by Commonwealth ......................................................... 28
52
Exemption from taxation ................................................................. 29
Part 6--Miscellaneous
30
53
Delegation by NHFIC ...................................................................... 30
54
Delegation by Board ........................................................................ 30
55
Delegation and subdelegation by CEO ............................................ 30
56
Matters to be included in annual reports .......................................... 31
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
iii
57
Review of operation of Act ............................................................. 31
58
Rules ................................................................................................ 31
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
1
A Bill for an Act to establish the National Housing
1
Finance and Investment Corporation, and for
2
related purposes
3
The Parliament of Australia enacts:
4
Part 1--Preliminary
5
6
1 Short title
7
This Act is the National Housing Finance and Investment
8
Corporation Act 2018.
9
Part 1 Preliminary
Section 2
2
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
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 Object of this Act
13
The object of this Act is to establish the National Housing Finance
14
and Investment Corporation to improve housing outcomes for
15
Australians by:
16
(a) strengthening efforts to increase the supply of housing; and
17
(b) encouraging investment in housing (particularly in the social
18
or affordable housing sector); and
19
(c) providing finance, grants or investments that complement,
20
leverage or support Commonwealth, State or Territory
21
activities relating to housing; and
22
(d) contributing to the development of the scale, efficiency and
23
effectiveness of the community housing sector in Australia.
24
Preliminary Part 1
Section 4
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
3
4 Simplified outline of this Act
1
The National Housing Finance and Investment Corporation is
2
established to improve housing outcomes by making loans,
3
investments and grants (within constitutional limits).
4
The NHFIC performs its functions in accordance with one or more
5
directions given by the Minister, known as its Investment Mandate.
6
The Board of the NHFIC decides the NHFIC's strategies and
7
policies and ensures the proper, efficient and effective performance
8
of its functions.
9
The Chief Executive Officer of the NHFIC is responsible for the
10
day-to-day administration of the NHFIC. The NHFIC may engage
11
staff and consultants. The Board may establish Committees.
12
The Board must ensure that the NHFIC maintains commercially
13
sound and sufficient levels of capital and reserves.
14
The NHFIC may pay a dividend to the Commonwealth, and may
15
borrow money (supported by a Commonwealth guarantee).
16
5 Definitions
17
In this Act:
18
Board means the Board of the NHFIC.
19
Board member means a member of the Board and includes the
20
Chair.
21
CEO means the Chief Executive Officer of the NHFIC.
22
Chair means the Chair of the Board.
23
Commonwealth company has the same meaning as in the Public
24
Governance, Performance and Accountability Act 2013.
25
Commonwealth entity has the same meaning as in the Public
26
Governance, Performance and Accountability Act 2013.
27
Part 1 Preliminary
Section 6
4
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Commonwealth officer means a person who:
1
(a) holds, or performs the duties of, an appointment, office or
2
position under a law of the Commonwealth; or
3
(b) is otherwise in the service of the Commonwealth.
4
Finance Minister means the Minister who administers the Public
5
Governance, Performance and Accountability Act 2013.
6
Investment Mandate has the meaning given by subsection 12(1).
7
NHFIC means the National Housing Finance and Investment
8
Corporation.
9
paid work means work for financial gain or reward (whether as an
10
employee, a self-employed person or otherwise).
11
registered community housing provider means a community
12
housing provider (however described) that is registered under a law
13
of, or under a scheme administered by, a State or a Territory.
14
rules means rules made under section 58.
15
6 Crown to be bound
16
(1) This Act binds the Crown in each of its capacities.
17
(2) This Act does not make the Crown liable to be prosecuted for an
18
offence.
19
National Housing Finance and Investment Corporation Part 2
Establishment and functions Division 1
Section 7
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
5
Part 2--National Housing Finance and Investment
1
Corporation
2
Division 1--Establishment and functions
3
7 Establishment
4
(1) The National Housing Finance and Investment Corporation is
5
established by this section.
6
Note:
The Public Governance, Performance and Accountability Act 2013
7
applies to the NHFIC. That Act deals with matters relating to
8
Commonwealth entities, including reporting and the use and
9
management of public resources.
10
(2) The NHFIC:
11
(a) is a body corporate; and
12
(b) must have a seal; and
13
(c) may acquire, hold and dispose of real and personal property;
14
and
15
(d) may sue and be sued.
16
(3) The NHFIC's seal is to be kept in such custody as the Board
17
directs and must not be used except as authorised by the Board.
18
8 Functions of the NHFIC
19
(1) The functions of the NHFIC are:
20
(a) to make loans, investments and grants to improve, directly or
21
indirectly, housing outcomes; and
22
(b) to determine terms and conditions for such loans, investments
23
and grants; and
24
(c) to provide, to registered community housing providers,
25
business advisory services and other assistance in capacity
26
building; and
27
(d) any other functions conferred on the NHFIC by this Act or
28
any other Commonwealth law; and
29
Part 2 National Housing Finance and Investment Corporation
Division 1 Establishment and functions
Section 9
6
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
(e) to do anything incidental or conducive to the performance of
1
the above functions.
2
(2) Without limiting subsection (1), the functions of the NHFIC
3
include:
4
(a) to grant financial assistance to States and Territories for the
5
purposes of any of the matters mentioned in subsection (1);
6
and
7
(b) to determine terms and conditions for the grants of financial
8
assistance.
9
(3) In performing its functions, the NHFIC must act in a proper,
10
efficient and effective manner.
11
9 Powers of the NHFIC
12
(1) The NHFIC has power to do all things necessary or convenient to
13
be done for or in connection with the performance of its functions.
14
(2) Without limiting subsection (1), the NHFIC may:
15
(a) enter into arrangements and contracts with Commonwealth
16
entities and Commonwealth companies to obtain services to
17
assist in the performance of its functions; and
18
(b) enter into:
19
(i) arrangements known as swaps, foreign exchange
20
agreements, forward rate agreements, options or hedge
21
agreements; or
22
(ii) arrangements having a similar purpose or effect.
23
Note:
Section 59 of the Public Governance, Performance and Accountability
24
Act 2013 also gives the NHFIC the power to invest money that is not
25
immediately required for the purposes of the NHFIC.
26
10 Constitutional limits
27
(1) The NHFIC may perform its functions only:
28
(a) for purposes relating to a corporation to which
29
paragraph 51(xx) of the Constitution applies; or
30
(b) for purposes related to external affairs, including:
31
National Housing Finance and Investment Corporation Part 2
Establishment and functions Division 1
Section 10
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
7
(i) giving effect to the International Covenant on
1
Economic, Social and Cultural Rights done at New
2
York on 16 December 1966, particularly Article 11 of
3
that Covenant; or
4
(ii) giving effect to another international agreement to
5
which Australia is a party; or
6
(iii) addressing matters of international concern; or
7
(iv) by way of the performance of its functions in a place
8
outside Australia; or
9
(c) for purposes relating to the granting of financial assistance to
10
which section 96 of the Constitution applies; or
11
(d) for purposes relating to the collection of statistics; or
12
(e) for purposes relating to trade or commerce:
13
(i) between Australia and places outside Australia; or
14
(ii) among the States; or
15
(iii) within a Territory, between a State and a Territory or
16
between 2 Territories; or
17
(f) by way of the use of a postal, telegraphic, telephonic or other
18
like service within the meaning of paragraph 51(v) of the
19
Constitution; or
20
(g) for purposes relating to people to which paragraph 51(xxvi)
21
of the Constitution applies; or
22
(h) for purposes relating to railway construction or extension to
23
which paragraph 51(xxxiv) of the Constitution applies; or
24
(i) by way of the provision of service, or financial assistance, to:
25
(i) the Commonwealth; or
26
(ii) an authority of the Commonwealth;
27
for a purpose of the Commonwealth; or
28
(j) for purposes relating to a Territory; or
29
(k) for purposes relating to the implied power of the Parliament
30
to make laws with respect to nationhood; or
31
(l) for purposes relating to the executive power of the
32
Commonwealth; or
33
(m) for purposes relating to matters incidental to the execution of
34
any of the legislative powers of the Parliament or the
35
executive power of the Commonwealth.
36
Part 2 National Housing Finance and Investment Corporation
Division 1 Establishment and functions
Section 11
8
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Note:
The International Covenant on Economic, Social and Cultural Rights
1
is in Australian Treaty Series 1976 No. 5 ([1976] ATS 5) and could in
2
2018 be viewed in the Australian Treaties Library on the AustLII
3
website (http://www.austlii.edu.au).
4
(2) Paragraph (1)(a) applies in relation to a corporation to which
5
paragraph 51(xx) of the Constitution applies only if the NHFIC has
6
entered into an arrangement with the corporation that:
7
(a) sets out the terms and conditions on which money may be
8
payable to the corporation under the arrangement; and
9
(b) requires the corporation to comply with the terms and
10
conditions.
11
(3) Without limiting subsection (2), the terms and conditions must
12
provide for the circumstances in which the corporation must repay
13
amounts paid under the arrangement.
14
11 NHFIC does not have privileges and immunities of the Crown
15
The NHFIC does not have the privileges and immunities of the
16
Crown in right of the Commonwealth.
17
National Housing Finance and Investment Corporation Part 2
Investment Mandate Division 2
Section 12
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
9
Division 2--Investment Mandate
1
12 Investment Mandate
2
(1) The Minister may, by legislative instrument, give the Board
3
directions about the performance of the NHFIC's functions, and
4
must give at least one such direction. The directions together
5
constitute the Investment Mandate.
6
Note:
Section 42 (disallowance) of the Legislation Act 2003 does not apply
7
to the direction--see regulations made for the purposes of
8
paragraph 44(2)(b) of that Act.
9
(2) In giving a direction, the Minister must have regard to the object of
10
this Act and any other matters the Minister considers relevant.
11
(3) In performing its functions, the NHFIC must take all reasonable
12
steps to comply with the Investment Mandate.
13
13 Matters covered by Investment Mandate
14
The Investment Mandate may include directions about the
15
following:
16
(a) strategies and policies to be followed for the effective
17
performance of the NHFIC's functions;
18
(b) decision-making criteria for the following:
19
(i) making loans, investments and grants;
20
(ii) granting financial assistance to States and Territories;
21
(iii) providing, to registered community housing providers,
22
business advisory services and other assistance in
23
capacity building;
24
(c) limits on making loans, investments and grants, and granting
25
financial assistance to States and Territories;
26
(d) risk and return relating to NHFIC's investments;
27
(e) any other matters the Minister thinks appropriate.
28
14 Limits on Investment Mandate
29
The Minister must not give a direction under subsection 12(1):
30
Part 2 National Housing Finance and Investment Corporation
Division 2 Investment Mandate
Section 14
10
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
(a) that has the purpose, or has or is likely to have the effect, of
1
directly or indirectly requiring the Board:
2
(i) to make, or not to make, a particular loan, investment or
3
grant; or
4
(ii) to grant, or not to grant, financial assistance to a State or
5
Territory for a particular project; or
6
(iii) to take, or not to take, particular action relating to a
7
particular loan, investment or grant; or
8
(iv) to take, or not to take, particular action relating to
9
financial assistance granted to a State or Territory for a
10
particular project; or
11
(b) that is inconsistent with this Act (including the object of this
12
Act).
13
Board Part 3
Establishment and functions of the Board Division 1
Section 15
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
11
Part 3--Board
1
Division 1--Establishment and functions of the Board
2
15 Establishment of the Board
3
The Board of the NHFIC is established by this section.
4
16 Functions of the Board
5
(1) The functions of the Board are:
6
(a) to decide, within the scope of the Investment Mandate, the
7
strategies and policies to be followed by the NHFIC; and
8
(b) to ensure the proper, efficient and effective performance of
9
the NHFIC's functions; and
10
(c) any other functions conferred on the Board by this Act.
11
(2) The Board has power to do all things necessary or convenient to be
12
done for or in connection with the performance of its functions.
13
(3) Anything done in the name of, or on behalf of, the NHFIC by the
14
Board, or with the authority of the Board, is taken to have been
15
done by the NHFIC.
16
Part 3 Board
Division 2 Board members
Section 17
12
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Division 2--Board members
1
17 Membership
2
The Board consists of:
3
(a) the Chair; and
4
(b) at least 4, and no more than 6, other members.
5
18 Appointment of Board members
6
(1) Board members are to be appointed by the Minister by written
7
instrument, on a part-time basis.
8
(2) A person is not eligible for appointment as a Board member unless
9
the Minister is satisfied that the person has appropriate
10
qualifications, skills or experience in one or more of the following:
11
(a) banking and finance;
12
(b) law;
13
(c) housing (including social or affordable housing);
14
(d) infrastructure planning and financing;
15
(e) local government;
16
(f) public policy;
17
(g) an area of expertise prescribed by the rules.
18
19 Chair
19
The Minister must, by written instrument, appoint one Board
20
member to be the Chair.
21
20 Term of appointment
22
A Board member holds office for the period specified in the
23
instrument of appointment. The period must not exceed 5 years.
24
Note:
A Board member may be reappointed: see section 33AA of the Acts
25
Interpretation Act 1901.
26
Board Part 3
Board members Division 2
Section 21
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
13
21 Acting appointments
1
(1) The Minister may, by written instrument, appoint a Board member
2
to act as the Chair:
3
(a) during a vacancy in the office of Chair (whether or not an
4
appointment has previously been made to the office); or
5
(b) during any period, or during all periods, when the Chair:
6
(i) is absent from duty or from Australia; or
7
(ii) is, for any reason, unable to perform the duties of the
8
office.
9
(2) The Minister may, by written instrument, appoint a person to act as
10
a Board member:
11
(a) during a vacancy in the office of a Board member (whether
12
or not an appointment has previously been made to the
13
office); or
14
(b) during any period, or during all periods, when a Board
15
member:
16
(i) is absent from duty or from Australia; or
17
(ii) is, for any reason, unable to perform the duties of the
18
office.
19
Note:
For rules that apply to acting appointments, see sections 33AB and
20
33A of the Acts Interpretation Act 1901.
21
22 Remuneration
22
(1) A Board member is to be paid the remuneration that is determined
23
by the Remuneration Tribunal. If no determination of that
24
remuneration by the Tribunal is in operation, the member is to be
25
paid the remuneration that is prescribed by the rules.
26
(2) A Board member is to be paid the allowances that are prescribed
27
by the rules.
28
(3) This section has effect subject to the Remuneration Tribunal Act
29
1973.
30
Part 3 Board
Division 2 Board members
Section 23
14
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
23 Leave of absence
1
(1) The Minister may grant leave of absence to the Chair on the terms
2
and conditions that the Minister determines.
3
(2) The Chair may grant leave of absence to another Board member on
4
the terms and conditions that the Chair determines.
5
(3) The Chair must notify the Minister if the Chair grants another
6
Board member leave of absence for a period that exceeds 3
7
months.
8
24 Resignation
9
(1) A Board member may resign his or her appointment by giving the
10
Minister a written resignation.
11
(2) The resignation takes effect on the day it is received by the
12
Minister or, if a later day is specified in the resignation, on that
13
later day.
14
25 Termination of appointment
15
The Minister may terminate the appointment of a Board member:
16
(a) for misbehaviour; or
17
(b) if the Board member is unable to perform the duties of his or
18
her office because of physical or mental incapacity; or
19
(c) if the Board member:
20
(i) becomes bankrupt; or
21
(ii) applies to take the benefit of any law for the relief of
22
bankrupt or insolvent debtors; or
23
(iii) compounds with his or her creditors; or
24
(iv) makes an assignment of his or her remuneration for the
25
benefit of his or her creditors; or
26
(d) if the Board member is absent, except on leave of absence,
27
from 3 consecutive meetings of the Board; or
28
(e) if the Minister is satisfied that the performance of the Board
29
member has been unsatisfactory for a significant period.
30
Board Part 3
Board members Division 2
Section 26
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
15
Note:
The appointment of a Board member may also be terminated under
1
section 30 of the Public Governance, Performance and Accountability
2
Act 2013 (which deals with terminating the appointment of an
3
accountable authority, or a member of an accountable authority, for
4
contravening general duties of officials).
5
26 Other terms and conditions
6
A Board member holds office on the terms and conditions (if any)
7
in relation to matters not covered by this Act that are determined
8
by the Minister.
9
27 Observer
10
Role of the observer
11
(1) A person appointed under this section (the observer):
12
(a) is entitled to receive notice of meetings of the Board; and
13
(b) may attend any meeting of the Board and take such part in
14
the proceedings, not including voting, as the observer thinks
15
fit; and
16
(c) may report to the Minister on any matter relating to the
17
operations of the NHFIC or the Board, and must make such a
18
report to the Minister if the Minister requests a report on such
19
a matter; and
20
(d) is entitled to access to such information held by, or under the
21
control of, the NHFIC as the observer requests for the
22
purposes of taking part in proceedings of the Board or
23
reporting to the Minister.
24
Appointment of the observer
25
(2) The Minister may, by written instrument, appoint a
26
Commonwealth officer to be the observer, on a part-time basis.
27
(3) The observer holds office for the period specified in the instrument
28
of appointment. The period must not exceed 6 months.
29
Note:
The observer may be reappointed: see section 33AA of the Acts
30
Interpretation Act 1901.
31
Part 3 Board
Division 2 Board members
Section 27
16
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
(4) The Minister may at any time terminate the appointment of the
1
observer.
2
Terms and conditions
3
(5) The Minister may grant leave of absence to the observer on the
4
terms and conditions that the Minister determines.
5
(6) The observer may resign his or her appointment by giving the
6
Minister a written resignation. The resignation takes effect on the
7
day it is received by the Minister or, if a later day is specified in the
8
resignation, on that later day.
9
Board Part 3
Meetings of the Board Division 3
Section 28
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
17
Division 3--Meetings of the Board
1
28 Convening meetings
2
(1) The Board must hold such meetings as are necessary for the
3
efficient performance of its functions.
4
(2) The Chair:
5
(a) may convene a meeting at any time; and
6
(b) must convene at least 4 meetings each calendar year; and
7
(c) must convene a meeting within 30 days after receiving a
8
written request to do so from another Board member.
9
29 Presiding at meetings
10
(1) The Chair must preside at all meetings at which he or she is
11
present.
12
(2) If the Chair is not present at a meeting, the other Board members
13
present must appoint one of themselves to preside.
14
30 Quorum
15
(1) At a meeting of the Board, a quorum is constituted by a majority of
16
Board members.
17
(2) However, if:
18
(a) a Board member is required by rules made for the purposes
19
of section 29 of the Public Governance, Performance and
20
Accountability Act 2013 not to be present during the
21
deliberations, or to take part in any decision, of the Board
22
with respect to a particular matter; and
23
(b) when the Board member leaves the meeting concerned there
24
is no longer a quorum present;
25
the remaining Board members at the meeting constitute a quorum
26
for the purpose of any deliberation or decision at that meeting with
27
respect to that matter.
28
Part 3 Board
Division 3 Meetings of the Board
Section 31
18
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
31 Voting at meetings
1
(1) A question arising at a meeting of the Board is to be determined by
2
a majority of the votes of the Board members present and voting.
3
(2) The person presiding at the meeting of the Board has a deliberative
4
vote and, if the votes are equal, a casting vote.
5
32 Conduct of meetings
6
The Board may, subject to this Division, regulate proceedings at its
7
meetings as it considers appropriate.
8
Note:
Section 33B of the Acts Interpretation Act 1901 contains further
9
information about the ways in which Board members may participate
10
in meetings.
11
33 Minutes
12
The Board must keep minutes of its meetings.
13
34 Decisions without meetings
14
(1) The Board is taken to have made a decision at a meeting if:
15
(a) without meeting, a majority of the Board members entitled to
16
vote on the proposed decision indicate agreement with the
17
decision; and
18
(b) that agreement is indicated in accordance with the method
19
determined by the Board under subsection (2); and
20
(c) all the Board members were informed of the proposed
21
decision, or reasonable efforts were made to inform all the
22
Board members of the proposed decision.
23
(2) Subsection (1) applies only if the Board:
24
(a) has determined that it may make decisions of that kind
25
without meeting; and
26
(b) has determined the method by which Board members are to
27
indicate agreement with proposed decisions.
28
(3) For the purposes of paragraph (1)(a), a Board member is not
29
entitled to vote on a proposed decision if the Board member would
30
Board Part 3
Meetings of the Board Division 3
Section 34
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
19
not have been entitled to vote on that proposal if the matter had
1
been considered at a meeting of the Board.
2
(4) The Board must keep a record of decisions made in accordance
3
with this section.
4
Part 4 Chief Executive Officer, staff and consultants and committees
Division 1 Chief Executive Officer
Section 35
20
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Part 4--Chief Executive Officer, staff and
1
consultants and committees
2
Division 1--Chief Executive Officer
3
35 Chief Executive Officer
4
There is to be a Chief Executive Officer of the National Housing
5
Finance and Investment Corporation.
6
36 Functions of the CEO
7
(1) The CEO is responsible for the day-to-day administration of the
8
NHFIC.
9
(2) The CEO has power to do all things necessary or convenient to be
10
done for or in connection with the performance of his or her duties.
11
(3) The CEO is to act in accordance with policies and strategies
12
determined by the Board.
13
(4) The Board may give written directions to the CEO, not inconsistent
14
with any direction given to the Board under Division 2 of Part 2,
15
about the performance of the CEO's duties.
16
(5) The CEO must comply with a direction under subsection (4).
17
(6) A direction under subsection (4) is not a legislative instrument.
18
37 Appointment of CEO
19
(1) The CEO is to be appointed by the Board by written instrument, on
20
a full-time basis.
21
Note:
The CEO may be reappointed: see section 33AA of the Acts
22
Interpretation Act 1901.
23
(2) The CEO holds office for the period specified in the instrument of
24
appointment. The period must not exceed 5 years.
25
Chief Executive Officer, staff and consultants and committees Part 4
Chief Executive Officer Division 1
Section 38
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
21
(3) The Board must not appoint a Board member as the CEO.
1
38 Acting appointment as CEO
2
The Board may, by written instrument, appoint a person (other than
3
a Board member) to act as the CEO:
4
(a) during a vacancy in the office of CEO (whether or not an
5
appointment has previously been made to the office); or
6
(b) during any period, or during all periods, when the CEO:
7
(i) is absent from duty or from Australia; or
8
(ii) is, for any reason, unable to perform the duties of the
9
office.
10
Note:
For rules that apply to acting appointments, see sections 33AB and
11
33A of the Acts Interpretation Act 1901.
12
39 Remuneration of CEO
13
(1) The CEO is to be paid the remuneration that is determined by the
14
Remuneration Tribunal. If no determination of that remuneration
15
by the Tribunal is in operation, the CEO is to be paid the
16
remuneration that is prescribed by the rules.
17
(2) The CEO is to be paid the allowances that are prescribed by the
18
rules.
19
(3) This section has effect subject to the Remuneration Tribunal Act
20
1973.
21
40 Leave of absence of CEO
22
(1) The CEO has the recreation leave entitlements that are determined
23
by the Remuneration Tribunal.
24
(2) The Board may grant the CEO leave of absence, other than
25
recreation leave, on the terms and conditions as to remuneration or
26
otherwise that the Board determines.
27
Part 4 Chief Executive Officer, staff and consultants and committees
Division 1 Chief Executive Officer
Section 41
22
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
41 Outside employment
1
(1) The CEO must not engage in paid work outside the duties of his or
2
her office without the Chair's approval.
3
(2) The Chair must notify the Minister of any approval given under
4
subsection (1).
5
42 Other terms and conditions
6
The CEO holds office on the terms and conditions (if any) in
7
relation to matters not covered by this Act that are determined by
8
the Board.
9
43 Resignation of CEO
10
(1) The CEO may resign his or her appointment by giving the Board a
11
written resignation.
12
(2) The resignation takes effect on the day it is received by the Board
13
or, if a later day is specified in the resignation, on that later day.
14
(3) The Chair must notify the Minister of the CEO's resignation.
15
44 Termination of appointment of CEO
16
(1) The Board may terminate the appointment of the CEO:
17
(a) for misbehaviour; or
18
(b) if the CEO is unable to perform the duties of his or her office
19
because of physical or mental incapacity; or
20
(c) if the CEO:
21
(i) becomes bankrupt; or
22
(ii) applies to take the benefit of any law for the relief of
23
bankrupt or insolvent debtors; or
24
(iii) compounds with his or her creditors; or
25
(iv) makes an assignment of his or her remuneration for the
26
benefit of his or her creditors; or
27
(d) if the CEO is absent, except on leave of absence, for 14
28
consecutive days or for 28 days in any 12 months; or
29
Chief Executive Officer, staff and consultants and committees Part 4
Chief Executive Officer Division 1
Section 44
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
23
(e) if the CEO engages, except with the Chair's approval, in paid
1
work outside the duties of his or her office (see section 41
2
(outside employment)); or
3
(f) if the CEO fails, without reasonable excuse, to comply with
4
section 29 of the Public Governance, Performance and
5
Accountability Act 2013 (which deals with the duty to
6
disclose interests) or rules made for the purposes of that
7
section; or
8
(g) if the Board is satisfied that the performance of the CEO has
9
been unsatisfactory for a significant period.
10
(2) If the Board terminates the appointment of the CEO, the Board
11
must notify the Minister of the termination.
12
Part 4 Chief Executive Officer, staff and consultants and committees
Division 2 Staff and consultants
Section 45
24
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Division 2--Staff and consultants
1
45 Staff
2
(1) The NHFIC may employ such persons as it considers necessary for
3
the performance of its functions and the exercise of its powers.
4
(2) An employee is to be employed on the terms and conditions that
5
the NHFIC determines in writing.
6
(3) The NHFIC may make arrangements for the services of officers or
7
employees of the following to be made available to the NHFIC:
8
(a) the Commonwealth, a State or a Territory;
9
(b) an authority of the Commonwealth or of a State or Territory;
10
(c) any other organisation or body.
11
46 Consultants
12
(1) The NHFIC may engage consultants to assist in the performance of
13
its functions.
14
(2) The consultants are to be engaged on the terms and conditions that
15
the NHFIC determines.
16
Chief Executive Officer, staff and consultants and committees Part 4
Committees Division 3
Section 47
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
25
Division 3--Committees
1
47 Committees
2
(1) The Board may establish committees to advise or assist in the
3
performance of the Board's or the NHFIC's functions.
4
(2) A committee may be constituted:
5
(a) wholly by Board members; or
6
(b) wholly by persons who are not Board members; or
7
(c) partly by Board members and partly by other persons.
8
(3) The Board may determine, in relation to a committee established
9
under this section:
10
(a) the committee's terms of reference; and
11
(b) the terms and conditions of appointment of the members of
12
the committee; and
13
(c) the procedures to be followed by the committee.
14
(4) The members of the committee (other than Board members) are not
15
officials for the purposes of the Public Governance, Performance
16
and Accountability Act 2013.
17
Part 5 Finance
Section 48
26
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Part 5--Finance
1
2
48 Maintenance of adequate capital and reserves
3
(1) The Board is required to ensure, according to sound commercial
4
principles, that the capital and reserves of the NHFIC at any time
5
are sufficient:
6
(a) to meet the likely liabilities of the NHFIC; and
7
(b) to make adequate provision for default in the repayment of
8
principal, or in the payment of interest or other charges, in
9
connection with loans made by the NHFIC.
10
(2) If, at any time, the Board determines:
11
(a) that the capital and reserves of the NHFIC are not sufficient
12
to meet the likely liabilities, and make the provision, referred
13
to in subsection (1); or
14
(b) that there are reasonable grounds for believing that, at a time
15
in the future, the capital and reserves of the NHFIC may not
16
be sufficient to meet the likely liabilities, and make the
17
provision, referred to in subsection (1);
18
the Board must, as soon as practicable, cause the Minister to be
19
informed in writing of its determination and the reasons for that
20
determination.
21
49 Payment of annual dividends to the Commonwealth
22
(1) The Board must, within 4 months after the end of each financial
23
year, by written notice given to the Minister, recommend that the
24
NHFIC pay a specified dividend, or not pay a dividend, to the
25
Commonwealth for that financial year.
26
(2) The Minister must, within 30 days after receiving the
27
recommendation, by written notice given to the NHFIC:
28
(a) approve the recommendation; or
29
(b) if the Board has recommended the payment of a dividend--
30
direct the payment of a different specified dividend; or
31
Finance Part 5
Section 50
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
27
(c) if the Board has recommended that no dividend be paid--
1
direct the payment of a specified dividend.
2
(3) Subject to subsections (4) and (5), in performing their functions
3
under subsections (1) and (2), the Board and the Minister must
4
have regard to:
5
(a) the policies of the Commonwealth Government, and the
6
general policy of the NHFIC in relation to the performance of
7
its functions; and
8
(b) such commercial considerations as the Board or the Minister,
9
as the case may be, considers appropriate.
10
(4) The NHFIC's dividend for a financial year must not exceed its
11
profit for that year.
12
(5) For each financial year in relation to which the Minister has
13
approved a recommendation that a dividend be paid or has directed
14
the payment of a dividend, the NHFIC must pay to the
15
Commonwealth:
16
(a) if the Minister has approved a recommendation that a
17
dividend be paid--the dividend specified in the
18
recommendation; or
19
(b) if the Minister has directed that a dividend be paid or that a
20
different dividend be paid--the dividend specified in the
21
direction.
22
(6) For the purposes of this section, the period beginning on the
23
commencement of this Act and ending on 30 June 2018 is not to be
24
taken to be a financial year.
25
50 Borrowings etc.
26
Borrowings from the Commonwealth
27
(1) The Finance Minister may, on behalf of the Commonwealth, out of
28
money appropriated by the Parliament for the purpose, lend money
29
to the NHFIC on such terms and conditions as the Finance Minister
30
determines.
31
Part 5 Finance
Section 51
28
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Other borrowings etc.
1
(2) The NHFIC may:
2
(a) borrow money otherwise than from the Commonwealth; or
3
(b) raise money otherwise than by borrowing.
4
(3) One of the ways in which the NHFIC may borrow or raise money
5
under subsection (2) is by dealing with securities.
6
Security
7
(4) The NHFIC may give security over all or any of its assets:
8
(a) for the repayment by the NHFIC of money borrowed under
9
subsection (1) or paragraph (2)(a) and the payment of interest
10
on money so borrowed; or
11
(b) for the payment by the NHFIC of money (including interest)
12
that the NHFIC is liable to pay in respect of money raised
13
under paragraph (2)(b).
14
Limitation on borrowing etc.
15
(5) The NHFIC must not borrow or raise money except under this
16
section.
17
51 Guarantee by Commonwealth
18
(1) Subject to subsection (2), the due payment by the NHFIC of any
19
money that becomes payable by the NHFIC to a person other than
20
the Commonwealth is guaranteed by the Commonwealth.
21
(2) Subsection (1) does not apply in relation to money that becomes
22
payable in relation to a contract entered into on or after the day
23
(not earlier than 1 July 2023) determined under subsection (3).
24
Note:
The guarantee will continue to apply in relation to contracts entered
25
into before the determined day.
26
(3) The Minister may, by legislative instrument, determine a day for
27
the purposes of subsection (2). The day must not be a day
28
occurring earlier than 60 days after the instrument is registered
29
under the Legislation Act 2003.
30
Finance Part 5
Section 52
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
29
52 Exemption from taxation
1
(1) For the purposes of section 50-25 of the Income Tax Assessment
2
Act 1997, the NHFIC is taken to be a public authority constituted
3
under an Australian law.
4
Note:
This means the NHFIC is exempt from income tax.
5
(2) The NHFIC is not subject to taxation under a law of a State or
6
Territory, if the Commonwealth is not subject to the taxation.
7
Part 6 Miscellaneous
Section 53
30
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
Part 6--Miscellaneous
1
2
53 Delegation by NHFIC
3
(1) The NHFIC may, in writing under its seal, delegate all or any of its
4
powers or functions under this Act to:
5
(a) a Board member; or
6
(b) the CEO.
7
(2) In exercising any powers or performing any functions under the
8
delegation, the delegate must comply with any directions of the
9
NHFIC.
10
54 Delegation by Board
11
(1) The Board may, in writing, delegate to a Board member or the
12
CEO any of its powers or functions under this Act.
13
(2) In exercising any powers or performing any functions under the
14
delegation, the delegate must comply with any directions of the
15
Board.
16
55 Delegation and subdelegation by CEO
17
(1) The CEO may, in writing, delegate to a senior member of the staff
18
referred to in section 45 any of the CEO's powers or functions
19
under this Act.
20
(2) If the NHFIC or the Board delegates a power or function under
21
subsection 53(1) or 54(1) to the CEO, the CEO may, in writing,
22
subdelegate the power or function to a senior member of the staff
23
referred to in section 45.
24
(3) In exercising any powers or performing any functions under the
25
delegation or subdelegation, the delegate or subdelegate must
26
comply with any directions of the CEO.
27
Miscellaneous Part 6
Section 56
No. , 2018
National Housing Finance and Investment Corporation Bill 2018
31
(4) Sections 34AA, 34AB and 34A of the Acts Interpretation Act 1901
1
apply in relation to a subdelegation in a corresponding way to the
2
way in which they apply in relation to a delegation.
3
56 Matters to be included in annual reports
4
The annual report prepared by the Board and given to the Minister
5
under section 46 of the Public Governance, Performance and
6
Accountability Act 2013 for a period must include the following:
7
(a) the particulars of any changes to the Investment Mandate
8
during the period and their impact on the operations of the
9
NHFIC;
10
(b) in relation to each kind of financial support provided by the
11
NHFIC during the period, a summary of:
12
(i) the amount of that kind of financial support; and
13
(ii) the risks and returns to the Commonwealth.
14
Note:
Section 46 of the Public Governance, Performance and Accountability
15
Act 2013 requires the Board to prepare annual reports.
16
57 Review of operation of Act
17
(1) The Minister must cause a review of the operation of this Act to be
18
undertaken as soon as possible after the period of 3 years
19
beginning when this Act commences.
20
(2) The persons undertaking the review must give the Minister a
21
written report of the review.
22
(3) The Minister must cause a copy of the report of the review to be
23
tabled in each House of the Parliament within 15 sitting days of
24
that House after the report is given to the Minister.
25
58 Rules
26
(1) The Minister may, by legislative instrument, make rules
27
prescribing matters:
28
(a) required or permitted by this Act to be prescribed by the
29
rules; or
30
Part 6 Miscellaneous
Section 58
32
National Housing Finance and Investment Corporation Bill 2018
No. , 2018
(b) necessary or convenient to be prescribed for carrying out or
1
giving effect to this Act.
2
(2) To avoid doubt, the rules may not do the following:
3
(a) create an offence or civil penalty;
4
(b) provide powers of:
5
(i) arrest or detention; or
6
(ii) entry, search or seizure;
7
(c) impose a tax;
8
(d) set an amount to be appropriated from the Consolidated
9
Revenue Fund under an appropriation in this Act;
10
(e) directly amend the text of this Act.
11