House of Representatives

Explanatory Memorandum

Circulated By Authority of the Minister for Finance and Deregulation, the Honourable Lindsay Tanner Mp

Outline

The Nation-building Funds (Consequential Amendments) Bill 2008 is one of a package of three Bills giving effect to the Government's 2008-09 Budget announcement to establish:

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three new financial asset funds to provide financing sources to meet the Government's commitment to Australia's future by investment critical areas such as transport, communications, energy, water, education, and health; and

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a COAG Reform Fund as a vehicle through which:

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capital transfers from the Funds may be disbursed to the States and Territories; and

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funding provided in future budgets may be disbursed to the States and Territories.

The Bill:

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Repeals the HEEF Act, consistent with the HEEF being closed and the assets transferred to the EIF.

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Amends the Future Fund Act to extend its operation to deal with the Future Fund Board's duties in relation to the BAF, EIF and HHF.

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Allows for amounts to be transferred from the Future Fund to the BAF, EIF and HHF for the purposes of apportioning expenses that have been paid from one Fund that should properly be apportioned between two or more of the Funds.

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A similar framework is proposed for the legislation enabling each of the BAF, EIF and HHF.

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Makes amendments to the ITAA to repeal provisions allowing tax deductible gifts to be made to the HEEF, consistent with that Fund being closed.

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Makes amendments to the Consumer Protection Act and the Telstra Corporation Act 1991 to remove references to the Communications Fund, consistent with that Fund being closed.

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Includes a number of transitional provisions relating to closure of the HEEF, including annual reporting requirements and the continuity of certain arrangements that may have previously been entered into by the Future Fund Board in managing the HEEF.

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Includes a number of transitional provisions relating to the Government's announcement to fast track its nation-building agenda, in response to the global financial crisis. As a result, certain arrangements have been adopted on an interim basis, in anticipation of the passage of the Nation-building Funds Bill 2008.

Clause 1-Short Title

Clause 1 provides for the Act to be cited as the Nation-building Funds (Consequential Amendments Act) 2008 .

Note : The clauses in the Bill will become sections of the Act on Royal Assent.

Clause 2 - Commencement

Clause 2 provides for commencement of clauses 1 to 3 on Royal Assent. Schedules 1 to 3, which contain the main repeal and amendment provisions, commence at the same time as section 3 of the Nation-building Funds Act 2008 . This is because those provisions are consequential to the passage of the Nation-building Funds Bill 2008.

Clause 3 - Schedule(s)

Clause 3 provides for the repeal of, or amendments to, other Acts as set out in Schedules to this Act.