Public Governance, Performance and Accountability (Investment) Authorisation 2014
I, Mathias Cormann, Minister for Finance, make the following authorisation.
Dated 30 June 2014
Mathias Cormann
Minister for Finance
Contents
Part 1—Preliminary 1
1............ Name of authorisation................................................................................................... 1
2............ Commencement............................................................................................................. 1
3............ Authority....................................................................................................................... 1
4............ Definitions..................................................................................................................... 1
Part 2—The Australian Broadcasting Corporation 3
5............ Authorisation for the Australian Broadcasting Corporation.......................................... 3
Part 3—The Export Finance and Insurance Corporation 4
6............ Authorisation for the Export Finance and Insurance Corporation................................. 4
Part 4—The Grains Research and Development Corporation 5
7............ Authorisation for the Grains Research and Development Corporation.......................... 5
Part 5—The Rural Industries Research and Development Corporation 6
8............ Authorisation for the Rural Industries Research and Development Corporation........... 6
Part 6—The Commonwealth Scientific and Industrial Research Organisation 7
9............ Authorisation for the Commonwealth Scientific and Industrial Research Organisation 7
Part 7—The Civil Aviation Safety Authority 8
10.......... Authorisation for the Civil Aviation Safety Authority................................................... 8
Part 8—Australian Hearing Services 9
11.......... Authorisation for Australian Hearing Services.............................................................. 9
Part 9—The Australian Nuclear Science and Technology Organisation 10
12.......... Authorisation for the Australian Nuclear Science and Technology Organisation........ 10
Part 10—Airservices Australia 11
13.......... Authorisation for Airservices Australia....................................................................... 11
Part 1—Preliminary
1 Name of authorisation
This authorisation is the Public Governance, Performance and Accountability (Investment) Authorisation 2014.
2 Commencement
This authorisation commences on the later of:
(a) the day after it is registered; and
(b) the day Schedule 1 of the Public Governance, Performance and Accountability Amendment Act 2014 commences.
However, this authorisation does not commence at all if the event mentioned in paragraph (b) does not occur.
3 Authority
This authorisation is made under subparagraph 59(1)(b)(iii) of the Public Governance, Performance and Accountability Act 2013.
4 Definitions
In this authorisation:
approved bank means a person that carries on the business of banking in Australia:
(a) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(b) the business of which has a Standard and Poor’s long‑term rating of:
(i) for a Part other than Part 4—A‑ (or the Moody’s or Fitch’s equivalent) or better; and
(ii) for Part 4—BBB‑ (or the Moody’s or Fitch’s equivalent) or better.
approved entity means an entity that operates inside or outside Australia and has a Standard and Poor’s long‑term rating of AA‑ (or the Moody’s or Fitch’s equivalent) or better.
dematerialised security means a dematerialised security that is deposited in the Austraclear System.
Note: Information about the Austraclear System could in 2014 be viewed on the Australian Securities Exchange’s website (http://www.asx.com.au).
securities:
(a) means debentures, bonds, promissory notes, commercial paper, bills of exchange, certificates of deposit and fixed and floating rate notes issued under a senior debt program, and their dematerialised security equivalents; but
(b) does not include any instrument or document that is in the nature of equity, subordinate debt or hybrid equity.
senior debt program means a program under which debt:
(a) is issued and ranked ahead of other debt; and
(b) has priority if debt has to be redeemed in cases of liquidation.
Part 2—The Australian Broadcasting Corporation
5 Authorisation for the Australian Broadcasting Corporation
(1) The Australian Broadcasting Corporation is authorised to invest relevant money for which the Corporation is responsible in accordance with this section.
(2) The Corporation may invest in one or more of the following:
(a) bills of exchange accepted or endorsed only by an approved bank;
(b) dematerialised securities that are the equivalent of the bills of exchange covered by paragraph (a);
(c) certificates of deposit with an approved bank;
(d) dematerialised securities that are the equivalent of the certificates of deposit covered by paragraph (c).
(3) Investments must be:
(a) in the name of the Corporation; and
(b) denominated in Australian currency.
Part 3—The Export Finance and Insurance Corporation
6 Authorisation for the Export Finance and Insurance Corporation
(1) The Export Finance and Insurance Corporation is authorised to invest relevant money for which the Corporation is responsible in accordance with this section.
(2) The Corporation may invest money in one or more of the following ways:
(a) in securities issued by an approved bank;
(b) on deposit with, or in securities issued or guaranteed by, an approved entity.
(3) Investments must be in the name of the Corporation.
(4) Subsections (5) to (7) apply if an investment:
(a) is covered by paragraph (2)(a) (securities issued by an approved bank); and
(b) has a Standard and Poor’s long‑term rating lower than A‑(or the Moody’s or Fitch’s equivalent).
(5) The investment, together with any other such investments of the Corporation in the approved bank, must not exceed 10% of the total investments of the Corporation.
(6) The investment, together with any other such investments of the Corporation in any approved bank, must not exceed 25% of the total investments of the Corporation.
(7) The investment:
(a) must not have a term longer than 3 years; and
(b) if the investment has a term longer than 6 months—must be able to be traded in the secondary market.
Part 4—The Grains Research and Development Corporation
7 Authorisation for the Grains Research and Development Corporation
(1) The Grains Research and Development Corporation is authorised to invest relevant money for which the Corporation is responsible in accordance with this section.
(2) The Corporation may invest in one or more of the following:
(a) bills of exchange accepted or endorsed only by an approved bank;
(b) dematerialised securities that are the equivalent of the bills of exchange covered by paragraph (a);
(c) certificates of deposit with an approved bank;
(d) dematerialised securities that are the equivalent of the certificates of deposit covered by paragraph (c);
(e) floating rate notes issued by an approved bank under a senior debt program;
(f) dematerialised securities that are the equivalent of the floating rate notes covered by paragraph (e);
(g) 11 am call deposits with an approved bank.
(3) Investments must be:
(a) in the name of the Corporation; and
(b) denominated in Australian currency.
(4) If an investment is covered by paragraph (2)(e) or (f), the investment, together with any other investments of the Corporation covered by either of those paragraphs, must not exceed 20% of the total investments of the Corporation.
Part 5—The Rural Industries Research and Development Corporation
8 Authorisation for the Rural Industries Research and Development Corporation
(1) The Rural Industries Research and Development Corporation is authorised to invest relevant money for which the Corporation is responsible in accordance with this section.
(2) The Corporation may invest in one or more of the following:
(a) bills of exchange accepted or endorsed only by an approved bank;
(b) dematerialised securities that are the equivalent of the bills of exchange covered by paragraph (a).
(3) Investments must be:
(a) in the name of the Corporation; and
(b) denominated in Australian currency.
Part 6—The Commonwealth Scientific and Industrial Research Organisation
9 Authorisation for the Commonwealth Scientific and Industrial Research Organisation
(1) The Commonwealth Scientific and Industrial Research Organisation is authorised to invest relevant money for which the Organisation is responsible in accordance with this section.
(2) The Organisation may invest in one or more of the following:
(a) bills of exchange accepted or endorsed only by an approved bank;
(b) dematerialised securities that are the equivalent of the bills of exchange covered by paragraph (a);
(c) certificates of deposit with an approved bank;
(d) dematerialised securities that are the equivalent of the certificates of deposit covered by paragraph (c).
(3) Investments must be:
(a) in the name of the Organisation; and
(b) denominated in Australian currency.
Part 7—The Civil Aviation Safety Authority
10 Authorisation for the Civil Aviation Safety Authority
(1) The Civil Aviation Safety Authority is authorised to invest relevant money for which the Authority is responsible in accordance with this section.
(2) The Authority may invest in one or more of the following:
(a) bills of exchange accepted or endorsed only by an approved bank;
(b) dematerialised securities that are the equivalent of the bills of exchange covered by paragraph (a);
(c) certificates of deposit with an approved bank;
(d) dematerialised securities that are the equivalent of the certificates of deposit covered by paragraph (c).
(3) Investments must be:
(a) in the name of the Authority; and
(b) denominated in Australian currency.
Part 8—Australian Hearing Services
11 Authorisation for Australian Hearing Services
(1) Australian Hearing Services is authorised to invest relevant money for which Australian Hearing Services is responsible in accordance with this section.
(2) Australian Hearing Services may invest in one or more of the following:
(a) bills of exchange accepted or endorsed only by an approved bank;
(b) dematerialised securities that are the equivalent of the bills of exchange covered by paragraph (a).
(3) Investments must be:
(a) in the name of Australian Hearing Services; and
(b) denominated in Australian currency.
Part 9—The Australian Nuclear Science and Technology Organisation
12 Authorisation for the Australian Nuclear Science and Technology Organisation
(1) The Australian Nuclear Science and Technology Organisation is authorised to invest relevant money for which the Organisation is responsible in accordance with this section.
(2) The Organisation may invest in one or more of the following:
(a) bills of exchange accepted or endorsed only by an approved bank;
(b) dematerialised securities that are the equivalent of the bills of exchange covered by paragraph (a);
(c) certificates of deposit with an approved bank;
(d) dematerialised securities that are the equivalent of the certificates of deposit covered by paragraph (c).
(3) Investments must be:
(a) in the name of the Organisation; and
(b) denominated in Australian currency.
Part 10—Airservices Australia
13 Authorisation for Airservices Australia
(1) Airservices Australia is authorised to invest relevant money for which the Authority is responsible in accordance with this section.
(2) Airservices Australia may invest up to $20 million in one or more of the following:
(a) floating rate notes issued by an approved bank under a senior debt program;
(b) dematerialised securities that are the equivalent of the floating rate notes covered by paragraph (a).
(3) Investments must be:
(a) in the name of Airservices Australia; and
(b) denominated in Australian currency.
