Financial Framework Legislation Amendment Act 2005 (8 of 2005)

Schedule 1   Amendments relating to the Financial Management Legislation Amendment Act 1999 and Special Accounts

Part 2   Special Accounts and references to paid to the Consolidated Revenue Fund

Defence Service Homes Act 1918

135   Sections 40 and 40A

Repeal the sections, substitute:

40 Defence Service Homes Insurance Account

(1) There is continued in existence the Defence Service Homes Insurance Account.

Note: The Account was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999.

(2) The Account is a Special Account for the purposes of the Financial Management and Accountability Act 1997.

(3) There must be credited to the Account amounts equal to all payments to the Commonwealth in connection with its activities:

(a) as an insurer under this Act, including a payment to it under a contract or arrangement referred to in section 38F; and

(b) with respect to insurance, as an agent for an insurer.

(4) The purpose of the Account is to make all payments by the Commonwealth in connection with its activities:

(a) as an insurer under this Act, including:

(i) a payment by it under a contract or arrangement referred to in section 38F; and

(ii) a payment by it under section 38G; and

(iii) a payment by it that it is not legally required to make but that is of a kind that would be made by a person carrying on the business of insurance in accordance with sound commercial principles; and

(b) with respect to insurance, as an agent for an insurer.

40A Interest on amounts invested

(1) Subject to this section, there must be credited to the Defence Service Homes Insurance Account, in respect of each financial year ending after the commencement of this section, an amount, calculated in such manner as the Finance Minister determines, by way of interest on the amount standing to the credit of the Account during that year, whether that amount has been invested by the Finance Minister or not.

(2) If interest is received by the Commonwealth from the investment of an amount standing to the credit of the Defence Service Homes Insurance Account, an amount equal to the interest must be credited to the Account.

(3) In this section:

Finance Minister means the Minister who administers the Financial Management and Accountability Act 1997.