Queensland Treasury Corporation Inscribed Stock Amendment Regulation (No. 1) 1994 (Qld)

Queensland Subordinate Legislation 1994 No. 221 Queensland Treasury Corporation Act 1988 QUEENSLAND TREASURY CORPORATION INSCRIBED STOCK AMENDMENT REGULATION (No. 1) 1994 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Replacement of s 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Insertion of Pt heading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 PART 2—INSCRIBED STOCK 5 Amendment of s 4 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 6 Omission of Pt heading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7 Insertion of new Pt 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 PART 3—PERFORMANCE DIVIDEND AND ATTRIBUTED AMOUNTS Division 1—Definitions 32 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Division 2—Basic concepts 33 Meaning of “quarter-end borrowing margin” . . . . . . . . . . . . . . . . . . . 5 34 Meaning of “net value ” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 35 Meaning of “yield on the pool” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 36 Prescription of Corporation accounts . . . . . . . . . . . . . . . . . . . . . . . . . 7 37 How to round to a decimal place . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2 Queensland Treasury Corporation Inscribed Stock Amendment (No. 1) No. 221, 1994 38 Prescription of periods—Act, ss 19A(2) and 19B(3) . . . . . . . . . . . . 7 Division 3—Performance dividend 39 Total amount of performance dividend for a prescribed period . . . . 7 40 Performance dividend for prescribed pools . . . . . . . . . . . . . . . . . . . . 8 41 Performance dividend for special arrangements . . . . . . . . . . . . . . . . 8 42 Payment of performance dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Division 4—Attributed amounts 43 Calculation of attributed amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 44 Payment of attributed amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 SCHEDULE NOTIONAL STOCK

s1 3 s5 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) ˙ Short title 1. This regulation may be cited as the Queensland Treasury Corporation Inscribed Stock Amendment Regulation (No. 1) 1994 . ˙ Regulation amended 2. This regulation amends the Queensland Treasury Corporation Inscribed Stock Regulation 1989 . ˙ Replacement of s 1 3. Section 1— omit, insert— ˙ ‘ Short title ‘ 1. This regulation may be cited as the Queensland Treasury Corporation Regulation 1989 .’. ˙ Insertion of Pt heading 4. After section 3— insert— ‘ PART 2—INSCRIBED STOCK ’. ˙ Amendment of s 4 (Interpretation) 5.(1) Section 4, heading— omit, insert— ‘ Definitions ’. (2) Section 4, ‘these regulations’ to ‘appears’— omit, insert— ‘this Part’.

s6 4 s7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) (3) Section 4, definitions “the Act” and “the Corporation” — omit. ˙ Omission of Pt heading 6. Heading to Part 2, after section 4— omit. ˙ Insertion of new Pt 3 7. After section 31— insert— ‘ PART 3—PERFORMANCE DIVIDEND AND ATTRIBUTED AMOUNTS ‘ Division 1—Definitions ˙ ‘ Definitions ‘ 32. In this Part— “central financing authority” means any of the following— (a) New South Wales Treasury Corporation; (b) South Australian Government Financing Authority; (c) Tasmanian Public Finance Corporation; (d) Treasury Corporation of Victoria; (e) Western Australian Treasury Corporation; “dividend percentage” for a prescribed pool has the meaning given in section 40 (Performance dividend for prescribed pools); “financial quarter” means the 3 successive months of a financial year that end on 30 September, 31 December, 31 March and 30 June; “net value” has the meaning given in section 34 (Meaning of “net value ”);

s7 5 s7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) “pool benchmark” for a prescribed pool means the benchmark for the pool as set out in the Schedule; “prescribed period” has the meaning given in section 38 (Prescription of periods—Act, ss 19A(2) and 19B(3)); “prescribed pool” means a pool specified in section 36 (Prescription of Corporation accounts); “quarter-end borrowing margin” has the meaning given in section 33 (Meaning of “quarter-end borrowing margin”); “special arrangement” means a financial arrangement entered into under section 19(1) of the Act that is not associated with a prescribed pool; “weighted average dividend percentage” for a special arrangement has the meaning given in section 41(2) (Performance dividend for special arrangements); “yield on the pool” has the meaning given in section 35 (Meaning of “yield on the pool”). ‘ Division 2—Basic concepts ˙ ‘ Meaning of “quarter-end borrowing margin” ‘ 33.(1) The “quarter-end borrowing margin” for a prescribed pool for a prescribed period is the amount calculated by the Corporation under this section. ‘ Step 1 ‘ (2) The Corporation establishes, for each prescribed pool, notional stock with the characteristics shown in the Schedule (the “notional stock” ) for the prescribed period. ‘ Step 2 ‘ (3) The Corporation calculates the yield for each notional stock for each financial quarter as if each central financing authority and the Corporation had issued the notional stock. ‘ (4) In calculating the yield under subsection (3), the Corporation must

s7 6 s7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) have regard to the current yields for the central financing authorities and the Corporation for equivalent or similar stock. ‘ (5) The yields in subsection (3) are expressed as a percentage for the year compounded quarterly and rounded to the fourth decimal place. ‘ Step 3 ‘ (6) For each notional stock, the Corporation calculates the stock margin by subtracting the Corporation’s yield from the simple average of the yields of all central financing authorities. ‘ (7) The stock margin for notional stocks with a maturity of less than 1 year is taken to be zero. ‘ Step 4 ‘ (8) The Corporation calculates the quarter-end borrowing margin for each prescribed pool— (a) by multiplying the stock margin for each notional stock by the benchmark weighting of the notional stock as set out in the Schedule; and (b) adding together the resultant products. ˙ ‘ Meaning of “net value ” ‘ 34.(1) The “net value” of a prescribed pool for a day means the amount that represents the market value of the prescribed pool’s liabilities less the market value of its assets. ‘ (2) The market values of the prescribed pool’s liabilities and assets for a day are the values decided for the day by the Corporation. ‘ (3) For subsection (1), the prescribed pool’s assets do not include any outstanding amounts. ˙ ‘ Meaning of “yield on the pool” ‘ 35. The “yield on the pool” for a prescribed period is obtained by compounding the daily pool yields over the prescribed period.

s7 7 s7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) ˙ ‘ Prescription of Corporation accounts ‘ 36. The Corporation accounts known by the following names are prescribed— (a) the floating rate debt pool; (b) the long term debt pool; (c) the medium term debt pool; (d) the short term debt pool. ˙ ‘ How to round to a decimal place ‘ 37.(1) This section applies if a percentage must be rounded to a particular decimal place. ‘ (2) If the number immediately after the place is less than 5, the number at the place is not changed. ‘ (3) If the number immediately after the place is 5 or more, the number at the place is rounded up to the next whole number. ˙ ‘ Prescription of periods—Act, ss 19A(2) and 19B(3) ‘ 38. Each financial year is a prescribed period. ‘ Division 3—Performance dividend ˙ ‘ Total amount of performance dividend for a prescribed period ‘ 39. The amount of the performance dividend payable by the Corporation for a prescribed period is the total of— (a) the performance dividend payable for each prescribed pool for the prescribed period; and (b) the performance dividend payable for all special arrangements for the prescribed period.

s7 8 s7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) ˙ ‘ Performance dividend for prescribed pools ‘ 40.(1) To calculate the performance dividend for a prescribed pool for a prescribed period, the Corporation must calculate the dividend percentage for the pool for the period under subsection (2). ‘ (2) The dividend percentage for each prescribed pool for a prescribed period is calculated as follows— where— DP = (BM + (B-C)) 2 “DP” means the dividend percentage rounded to the second decimal place; “BM” means the simple average, rounded to the fourth decimal place as calculated by the Corporation, of the quarter-end borrowing margins for the prescribed period; “B” means the yield on the pool benchmark for the prescribed period as calculated by the Corporation as the yield on the pool benchmark; “C” means the yield on the pool for the prescribed period as calculated by the Corporation as the yield on the pool. ‘ (3) If the dividend percentage calculated under subsection (1) is less than zero, the dividend percentage is taken to be zero. ‘ (4) The performance dividend for the prescribed pool for the prescribed period is the amount equal to the increase in the net value for the prescribed pool on the last day of the prescribed period that would result if the daily pool yields were increased by the dividend percentage. ˙ ‘ Performance dividend for special arrangements ‘ 41.(1) The performance dividend for a prescribed period for a special arrangement is calculated by applying the weighted average dividend percentage to the average of the outstanding amounts under the special arrangement for the prescribed period. ‘ (2) The weighted average dividend percentage is calculated as follows— A=B C

s7 9 s7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) where— “A” means the weighted average dividend percentage for special arrangements; and “B” means the total of the results obtained by multiplying the dividend percentage for each prescribed pool by the net value of the pool on the last day of the prescribed period; and “C” means the total of all the net values of the prescribed pools on the last day of the prescribed period. ˙ ‘ Payment of performance dividend ‘ 42.(1) As soon as practicable after the end of a prescribed period for which a performance dividend is payable, the Corporation must calculate the amount of the performance dividend payable by it and give notice of the amount to the Treasurer. ‘ (2) The performance dividend is payable 14 days after the day notice is given to the Treasurer under subsection (1). ‘ (3) If the Corporation has not given notice of the amount before the end of 28 days after the end of the prescribed period to which the performance dividend relates, the Corporation must give to the Treasurer its reasons for not giving notice of the amount. ‘ Division 4—Attributed amounts ˙ ‘ Calculation of attributed amounts ‘ 43. The attributed amount for a statutory body or other person because of a financial arrangement is calculated as follows— (a) if the financial arrangement is associated with a prescribed pool—the attributed amount is the increase in the outstanding amount on the last day of the prescribed period that would result if the daily pool yields were increased by the dividend percentage for the pool; (b) if the financial arrangement is a special arrangement—the

s 7 10 s 7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) attributed amount is calculated by applying the weighted average dividend percentage to the average of the outstanding amounts under the arrangement for the prescribed period. ˙ ‘ Payment of attributed amount ‘ 44.(1) As soon as practicable after the end of a prescribed period for which an attributed amount is payable, the Corporation must calculate the attributed amount payable for each financial arrangement and give notice of the amount to the relevant statutory body or other person. ‘ (2) The attributed amount is payable 14 days after the day notice is given to the statutory body or other person.

s 7 11 s 7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) ‘ SCHEDULE ‘ NOTIONAL STOCK section 33 NOTIONAL STOCKS DEBT POOL BENCHMARK WEIGHTINGS STOCK STOCK MATURITY COUPON FLOATING RATE DEBT POOL BENCH- MARK WEIGHT- INGS SHORT TERM DEBT POOL BENCH- MARK WEIGHT- INGS MEDIUM TERM DEBT POOL BENCH- MARK WEIGHT- INGS LONG TERM DEBT POOL BENCH- MARK WEIGHT- INGS 11 AM CASH 25% 30 DAYS 25% 60 DAYS 25% 90 DAYS 25% 37% 12% 180 DAYS 10% 1 YEAR 8% 21% 22% 2 YEARS 8% 18% 3 YEARS 8% 21% 22% 4 YEARS 8% 18% 5 YEARS 8% 21% 22% 6 YEARS 8% 18% 7 YEARS 8% 22% 8 YEARS 8% 18%

s 7 12 s 7 Queensland Treasury Corporation Inscribed No. 221, 1994 Stock Amendment (No. 1) 9 YEARS 10 YEARS 8% 8% 18%’. ENDNOTES 1. Made by the Governor in Council on 30 June 1994. 2. Notified in the Gazette on 30 June 1994. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Treasury Department. © State of Queensland 1994