Statutory Bodies Financial Arrangements Regulation 2007 (QLD)

Statutory Bodies Financial Arrangements Regulation 2007

1   Short title

This regulation may be cited as the Statutory Bodies Financial Arrangements Regulation 2007.

2   Entities that are not statutory bodies—Act, s 6

(1)For section 6(1)(j) of the Act, the entities stated in schedule 1, column 2, are declared not to be statutory bodies.

(2)The authorising Act for each entity is stated opposite the entity in column 1 of the schedule.

3   Prescribed rate of interest—Act, s 23

For section 23(b) of the Act, interest is calculated on a daily basis using the Reserve Bank of Australia’s official cash rate for the day.

Editor’s note—

The Reserve Bank of Australia’s official cash rate is published on the bank’s website.

4   Financial accommodation—Act, s 32

(1)An operating lease entered into by a local government is a form of financial accommodation for the definition borrow.

(2)Subsection (1) applies whether or not the operating lease is entered into by the local government in the ordinary course of performing its functions.

5   Statutory bodies that may borrow under the Act, pt 5—Act, s 33

(1)The statutory bodies stated in schedule 2, column 2, are declared to be statutory bodies that may borrow under the Act, part 5.

(2)The authorising Act for each statutory body is stated opposite the body in column 1 of the schedule.

Note—

If a statutory body does not have a particular name or the name is difficult to locate in the authorising Act for the body, the relevant section in the authorising Act or other reference helpful to the reader is also stated in column 1.

6   Allocation of investment powers to statutory bodies—Act, s 42

(1)For part 6 of the Act, this section allocates investment power to statutory bodies.

(2)Category 1 investment power is allocated to the statutory bodies stated in schedule 3, column 2.

(3)Category 2 investment power is allocated to the statutory bodies stated in schedule 4, column 2.

(4)Category 3 investment power is allocated to the statutory bodies stated in schedule 5, column 2.

(5)If section 42(3) of the Act applies to a statutory body, both the body and the relevant fund or funds are stated in column 2 of the relevant schedule.

(6)The authorising Act for each statutory body stated in schedule 3, 4 or 5 is stated opposite the body in column 1 of the schedule.

(7)In schedule 3, column 2, the statutory body called the banker means the banker under the Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984, section 57.

7   Category 1 investment power—Act, s 44(1)(d)

For section 44(1)(d) of the Act, the prescribed investment arrangements are stated in schedule 6.

8   Category 1 investment power—Act, s 44(1)(e)

(1)For section 44(1)(e) of the Act, the rating prescribed for an investment arrangement is—

(a)a rating by Fitch Ratings of F1+ or F1; or

(b)a rating by Moody’s Investors Service of Prime-1 (P-1); or

(c)a rating by Standard & Poor’s of A-1+, A-1, AAm or AAAm.

(2)In this section—

Fitch Ratings means Fitch Australia Pty Ltd ACN 081 339 184 or another entity that carries on the business of assigning credit ratings under the trading name Fitch Ratings.

Moody’s Investors Service means Moody’s Investors Service Pty Limited ACN 003 399 657 or another entity that carries on the business of assigning credit ratings under the trading name Moody’s Investors Service.

Standard & Poor’s means Standard & Poor’s (Australia) Pty Ltd ACN 007 324 852 or another entity that carries on the business of assigning credit ratings under the trading name Standard & Poor’s.

9   Category 2 investment power—Act, s 45(b)(iv)

For section 45(b)(iv) of the Act, the prescribed investment arrangements are stated in schedule 7.

10   Category 2 investment power—Act, s 45(c)

(1)For section 45(c) of the Act, the rating prescribed for an investment arrangement is—

(a)a rating by Fitch Ratings of AA, AA+ or AAA; or

(b)a rating by Moody’s Investors Service of Aa2, Aa1 or Aaa; or

(c)a rating by Standard & Poor’s of AA, AA+ or AAA.

(2)However, a rating mentioned in subsection (1)(b) is not prescribed for an investment arrangement if the arrangement applies to a bond mutual fund.

(3)A bond mutual fund is an investment arrangement structured as a unit investment trust—

(a)with underlying assets that are—

(i)in a range of short to medium and long-term securities, with a predominant emphasis on fixed term securities; and

(ii)valued on a mark-to-market basis; and

(b)the units in which are redeemable at a value based on the market valuation of the underlying assets of the fund.

Note—

Bond mutual funds are to be distinguished from cash mutual funds. For cash mutual funds, the underlying assets are predominantly in short-term securities. The units in the relevant unit investment trust are redeemable at par or face value on an at call basis. Income from the investment is a return paid separately as appropriate.

(4)In this section—

Fitch Ratings see section 8(2).

Moody’s Investors Service see section 8(2).

Standard & Poor’s see section 8(2).

11   Statutory bodies that may enter into derivative transactions—Act, s 53

(1)For section 53(2) of the Act, the statutory bodies stated in schedule 8, column 2, are prescribed as statutory bodies that may enter into derivative transactions.

(2)The authorising Act for each statutory body is stated opposite the body in column 1 of the schedule.

12   Periodic reports to Treasurer about derivative transactions—Act, s 55

(1)This section prescribes, for section 55(1) of the Act, the times at which a statutory body must give the Treasurer a report about a derivative transaction.

(2)If the duration of the derivative transaction is 90 days or more, the statutory body must give a report—

(a)for the duration of the transaction—

(i)at the intervals, of not more than 3 months, decided by the Treasurer and stated in the Treasurer’s approval for the transaction; or

(ii)if subparagraph (i) does not apply—on the first day of each quarter; and

(b)on the first day of the calendar month immediately after completion of the transaction.

(3)However, if, under subsection (2)(a)(ii), the statutory body would be required to give a report on a day that is less than 14 days after the day the derivative transaction was entered into, the statutory body is not required to give the report.

(4)If the duration of the derivative transaction is less than 90 days, the statutory body must give a report on the first day of the calendar month immediately after completion of the transaction.

(5)In this section—

quarter means a period of 3 months starting on 1 January, 1 April, 1 July or 1 October.

Treasurer’s approval, for a derivative transaction, means the approval given by the Treasurer under part 9, division 2 or 3 of the Act for a statutory body to enter into the transaction.

13   Prescribed conditions of special guarantee—Act, s 82

For section 82(3) of the Act, the conditions prescribed for special guarantees are stated in schedule 9.

14   Repeal

The Statutory Bodies Financial Arrangements Regulation 1997, SL No. 129 is repealed.

15   Transitional provision for Statutory Bodies Financial Arrangements Amendment Regulation (No. 1) 2015

(1)This section applies in relation to a derivative transaction entered into by a statutory body under part 7, division 1 of the Act before the commencement.

(2)Despite the Statutory Bodies Financial Arrangements Amendment Regulation (No. 1) 2015, section 6, previous section 12 continues to apply in relation to the derivative transaction.

(3)In this section—

previous section 12 means section 12 as in force immediately before the commencement.

Schedule 1 Entities that are not statutory bodies

section 2

Column 1	Column 2
Authorising Act	Entity
Aboriginal Land Act 1991	• a land trust formed under part 3 of the Aboriginal Land Regulation 1991 •  an Aboriginal land claim association incorporated under the Aboriginal Land Regulation 1991
Torres Strait Islander Land Act 1991	• land trust formed under part 3 of the Torres Strait Islander Land Regulation 1991 •  Torres Strait Islander land claim association incorporated under the Torres Strait Islander Land Regulation 1991

Schedule 2 Statutory bodies that may borrow under part 5 of the Act

section 5

Column 1	Column 2
Authorising Act	Statutory body
Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984	Community Enterprise Queensland
Central Queensland University Act 1998	Central Queensland University
Chicken Meat Industry Committee Act 1976	Chicken Meat Industry Committee
City of Brisbane Act 2010	Brisbane City Council
Cross River Rail Delivery Authority Act 2016	Cross River Rail Delivery Authority
Economic Development Act 2012	MEDQ
Education (General Provisions) Act 2006	parents and citizens associations
Education (Queensland College of Teachers) Act 2005	Queensland College of Teachers
Education (Queensland Curriculum and Assessment Authority) Act 2014	Queensland Curriculum and Assessment Authority
Food Production (Safety) Act 2000	Safe Food Production QLD
Grammar Schools Act 1975 (see section 7)	boards of trustees
Griffith University Act 1998	Griffith University
Hospitals Foundations Act 1982 (see part 3)	bodies corporate (Foundations and Trusts)
James Cook University Act 1997	James Cook University
Land Act 1994 (see section 44)	trustees of trust land
Legal Aid Queensland Act 1997	Legal Aid Queensland
Local Government Act 2009	a corporate entity
Local Government Act 2009	local governments
Mt. Gravatt Showgrounds Act 1988	Mt Gravatt Showgrounds Trust
National Injury Insurance Scheme (Queensland) Act 2016	National Injury Insurance Agency, Queensland
National Trust of Queensland Act 1963	The National Trust of Queensland
Queensland Agricultural Training Colleges Act 2005	Queensland Agricultural Training Colleges
Queensland Institute of Medical Research Act 1945	The Council of The Queensland Institute of Medical Research
Queensland Museum Act 1970	Board of the Queensland Museum
Queensland Performing Arts Trust Act 1977	Queensland Performing Arts Trust
Queensland Rail Transit Authority Act 2013	Authority
Queensland Theatre Company Act 1970	Queensland Theatre Company
Queensland University of Technology Act 1998	Queensland University of Technology
Racing Act 2002	Racing Queensland Board
Racing Integrity Act 2016	Queensland Racing Integrity Commission
River Improvement Trust Act 1940 (see section 4)	trusts
Rural and Regional Adjustment Act 1994	QRAA
South Bank Corporation Act 1989	South Bank Corporation
South-East Queensland Water (Distribution and Retail Restructuring) Act 2009	any distributor-retailer established under the authorising Act
South East Queensland Water (Restructuring) Act 2007	Queensland Bulk Water Supply Authority
TAFE Queensland Act 2013	TAFE Queensland
Tourism and Events Queensland Act 2012	Tourism and Events Queensland
University of Queensland Act 1998	The University of Queensland
University of Southern Queensland Act 1998	University of Southern Queensland
University of the Sunshine Coast Act 1998	University of the Sunshine Coast
Water Act 2000	water authorities
Workers’ Compensation and Rehabilitation Act 2003	Workers’ Compensation Regulatory Authority

Schedule 3 Statutory bodies allocated category 1 investment power

section 6(2)

Column 1	Column 2
Authorising Act	Statutory body
Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984	Community Enterprise Queensland
Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984	the banker
Ambulance Service Act 1991	local ambulance committees
Anti-Discrimination Act 1991	Queensland Human Rights Commission
Anzac Day Act 1995	Anzac Day Trust
Biosecurity Act 2014	Darling Downs–Moreton Rabbit Board
Chicken Meat Industry Committee Act 1976	Chicken Meat Industry Committee
Crime and Corruption Act 2001	Crime and Corruption Commission
Education (General Provisions) Act 2006	parents and citizens associations
Education (Queensland Curriculum and Assessment Authority) Act 2014	Queensland Curriculum and Assessment Authority
Family and Child Commission Act 2014	Queensland Family and Child Commission
Family Responsibilities Commission Act 2008	Family Responsibilities Commission
Food Production (Safety) Act 2000	Safe Food Production QLD
Land Act 1994 (see section 44)	trustees of trust land
Local Government Act 2009	a corporate entity
Local Government Act 2009	local governments, other than— •  Brisbane City Council •  Cairns Regional Council •  Gold Coast City Council •  Ipswich City Council •  Logan City Council •  Moreton Bay Regional Council •  Sunshine Coast Regional Council
Major Sports Facilities Act 2001	Stadiums Queensland
New South Wales–Queensland Border Rivers Act 1946	The Dumaresq–Barwon Border Rivers Commission
Queensland Agricultural Training Colleges Act 2005	Queensland Agricultural Training Colleges
Queensland Competition Authority Act 1997	Queensland Competition Authority
Racing Act 2002	Racing Queensland Board
Racing Integrity Act 2016	Queensland Racing Integrity Commission
River Improvement Trust Act 1940 (see section 4)	trusts
South Bank Corporation Act 1989	South Bank Corporation
Tourism and Events Queensland Act 2012	Tourism and Events Queensland
Trade and Investment Queensland Act 2013	Trade and Investment Queensland
Valuers Registration Act 1992	Valuers Registration Board of Queensland
Water Act 2000	water authorities other than Pioneer Valley Water Board

Schedule 4 Statutory bodies allocated category 2 investment power

section 6(3)

Column 1	Column 2
Authorising Act	Statutory body
Architects Act 2002	Board of Architects of Queensland
Building and Construction Industry (Portable Long Service Leave) Act 1991	Building and Construction Industry (Portable Long Service Leave) Authority
Contract Cleaning Industry (Portable Long Service Leave) Act 2005	Contract Cleaning Industry (Portable Long Service Leave) Authority
Education (Queensland College of Teachers) Act 2005	Queensland College of Teachers
Hospital and Health Boards Act 2011	Hospital and Health Services
Libraries Act 1988	Library Board of Queensland
Local Government Act 2009	Cairns Regional Council
Local Government Act 2009	Gold Coast City Council
Local Government Act 2009	Ipswich City Council
Local Government Act 2009	Logan City Council
Local Government Act 2009	Moreton Bay Regional Council
Local Government Act 2009	Sunshine Coast Regional Council
Motor Accident Insurance Act 1994	Motor Accident Insurance Commission
Motor Accident Insurance Act 1994	Nominal Defendant
National Injury Insurance Scheme (Queensland) Act 2016	National Injury Insurance Agency, Queensland
Professional Engineers Act 2002	Board of Professional Engineers of Queensland
Queensland Art Gallery Act 1987	Queensland Art Gallery Board of Trustees
Queensland Building Services Authority Act 1991	Queensland Building Services Authority
Residential Tenancies and Rooming Accommodation Act 2008	Residential Tenancies Authority
Rural and Regional Adjustment Act 1994	QRAA
South-East Queensland Water (Distribution and Retail Restructuring) Act 2009	any distributor-retailer established under the authorising Act
Surveyors Act 2003	Surveyors Board of Queensland
Water Act 2000	Pioneer Valley Water Board
Workers’ Compensation and Rehabilitation Act 2003	WorkCover Queensland
Workers’ Compensation and Rehabilitation Act 2003	Workers’ Compensation Regulatory Authority

Schedule 5 Statutory bodies allocated category 3 investment power

section 6(4)

Column 1	Column 2
Authorising Act	Statutory body
Central Queensland University Act 1998	Central Queensland University
City of Brisbane Act 2010	Brisbane City Council
Cross River Rail Delivery Authority Act 2016	Cross River Rail Delivery Authority
Economic Development Act 2012	MEDQ
Funeral Benefit Business Act 1982	Trustees of the Funeral Benefit Trust Fund
Grammar Schools Act 1975 (see section 7)	boards of trustees
Griffith University Act 1998	Griffith University
Hospitals Foundations Act 1982 (see part 3)	bodies corporate (Hospital Foundations and Trusts)
James Cook University Act 1997	James Cook University
Legal Aid Queensland Act 1997	Legal Aid Queensland
Legal Profession Act 2007	Queensland Law Society Incorporated— •  Legal Practitioners’ Fidelity Guarantee Fund
National Trust of Queensland Act 1963	The National Trust of Queensland
Newstead House Trust Act 1939	Board of Trustees of Newstead House
Queensland Institute of Medical Research Act 1945	The Council of The Queensland Institute of Medical Research— •  General Fund under section 13
Queensland Museum Act 1970	Board of the Queensland Museum
Queensland Performing Arts Trust Act 1977	Queensland Performing Arts Trust
Queensland Rail Transit Authority Act 2013	Authority
Queensland Theatre Company Act 1970	Queensland Theatre Company
Queensland University of Technology Act 1998	Queensland University of Technology
South East Queensland Water (Restructuring) Act 2007	Queensland Bulk Water Supply Authority
Supreme Court Library Act 1968	Supreme Court Library Committee
TAFE Queensland Act 2013	TAFE Queensland
University of Queensland Act 1998	The University of Queensland
University of Southern Queensland Act 1998	University of Southern Queensland
University of the Sunshine Coast Act 1998	University of the Sunshine Coast

Schedule 6 Prescribed investment arrangements for category 1 investment power

section 7

Part 1    Investment arrangements managed or offered by QIC

•QIC Cash Fund

Part 2    Investment arrangements managed or offered by QTC

•QTC Capital Guaranteed Cash Fund

•QTC Debt Offset Facility

•QTC Fixed Rate Deposit (up to 12 months)

•QTC Working Capital Facility

Schedule 7 Prescribed investment arrangements for category 2 investment power

section 9

Part 1    Investment arrangements managed or offered by QIC

•QIC Australian Fixed Interest Fund

•QIC Cash Fund

•QIC Growth Fund

•QIC Bond Plus Fund

•QIC Cash Enhanced Fund

•QIC GFI Inflation Plus Fund

Part 2    Investment arrangements managed or offered by QTC

•QTC Capital Guaranteed Cash Fund

•QTC Debt Offset Facility

•QTC Fixed Rate Deposit (up to 3 years)

•QTC Working Capital Facility

Schedule 8 Statutory bodies that may enter into derivative transactions

section 11

Column 1	Column 2
Authorising Act	Statutory body
Building and Construction Industry (Portable Long Service Leave) Act 1991	Building and Construction Industry (Portable Long Service Leave) Authority
Central Queensland University Act 1998	Central Queensland University
City of Brisbane Act 2010	Brisbane City Council
Commonwealth Games Arrangements Act 2011	Gold Coast 2018 Commonwealth Games Corporation
Cross River Rail Delivery Authority Act 2016	Cross River Rail Delivery Authority
Griffith University Act 1998	Griffith University
James Cook University Act 1997	James Cook University
Local Government Act 2009	Gold Coast City Council
National Injury Insurance Scheme (Queensland) Act 2016	National Injury Insurance Agency, Queensland
Queensland Performing Arts Trust Act 1977	Queensland Performing Arts Trust
Queensland Rail Transit Authority Act 2013	Authority
Queensland University of Technology Act 1998	Queensland University of Technology
Residential Tenancies and Rooming Accommodation Act 2008	Residential Tenancies Authority
South-East Queensland Water (Distribution and Retail Restructuring) Act 2009	any distributor-retailer established under the authorising Act
South East Queensland Water (Restructuring) Act 2007	Queensland Bulk Water Supply Authority
Tourism and Events Queensland Act 2012	Tourism and Events Queensland
Trade and Investment Queensland Act 2013	Trade and Investment Queensland
University of Queensland Act 1998	The University of Queensland
University of Southern Queensland Act 1998	University of Southern Queensland
University of the Sunshine Coast Act 1998	University of the Sunshine Coast
Water Act 2000	Gladstone Area Water Board
Workers’ Compensation and Rehabilitation Act 2003	WorkCover Queensland

Schedule 9 Special guarantee conditions under section 82(3) of the Act

section 13

For section 82(3) of the Act, this schedule sets out the conditions of a special guarantee for a loan by QTC to an entity.

1In this guarantee—default amount means the amount of the guaranteed moneys the Treasurer is requested to pay to QTC in a notice under clause 2(4).guaranteed moneys means all moneys which are payable, owing but not payable or contingently owing, by the entity to QTC under the loan.this guarantee means these conditions.

2(1)If the entity defaults in the due and punctual payment of the whole or part of the guaranteed moneys, QTC may serve a notice (a default notice) upon the entity.

(2)If QTC serves a default notice upon the entity, QTC must within 3 days of the service give a copy of the notice to the Treasurer.

(3)In the default notice, QTC must—

(a)specify the default; and

(b)require the entity to remedy the default.

(4)If the entity does not remedy the default within 14 days after receiving the default notice, QTC may serve a written notice upon the Treasurer.

(5)In the notice, QTC must—

(a)certify the default has occurred and remains unremedied; and

(b)request the Treasurer to pay the amount of the unremedied default to QTC.

3(1)As soon as practicable after receiving a notice from QTC under clause 2(4), the Treasurer must pay the default amount to QTC from funds or reserves that the Treasurer considers appropriate.

(2)If the Treasurer is obliged or elects to seek an appropriation from Parliament before paying the whole or part of the default amount out of a particular fund or reserve, the Treasurer must promptly seek the appropriation.

4The Treasurer may at any time direct QTC not to provide—

(a)any further financial accommodation to the entity; or

(b)financial accommodation to the entity in excess of a specified aggregate amount.

5If QTC provides financial accommodation to the entity contrary to the Treasurer’s direction under clause 4—

(a)the financial accommodation is not part of the loan, or another loan to which section 82 of the Statutory Bodies Financial Arrangements Act 1982 applies, and the Treasurer has no obligation to QTC under this guarantee for the financial accommodation; and

(b)any payments made by or for the entity to QTC must be applied by QTC firstly in reduction of the loan for which the Treasurer (for the State) is liable under this guarantee.

6The Treasurer is under no obligation to pay the default amount to QTC if—

(a)QTC or the entity materially contravened the Statutory Bodies Financial Arrangements Act 1982, the Queensland Treasury Corporation Act 1988 or the entity’s authorising Act in relation to the loan; or

(b)the approvals required under the Statutory Bodies Financial Arrangements Act 1982, the Queensland Treasury Corporation Act 1988 or the entity’s authorising Act to enter into the loan were not obtained or any conditions of the approval were not materially complied with; or

(c)QTC has materially contravened this guarantee.

7(1)QTC may, from time to time, grant the entity any time, waiver forbearance or other concession without discharging or limiting the rights of QTC under this guarantee.

(2)On each occasion QTC grants any time, waiver, forbearance or other concession to the entity, QTC must give the Treasurer notice of—

(a)the time, waiver, forbearance or other concession; and

(b)particulars of the default by the entity which resulted in the granting of the time, waiver, forbearance or other concession.

8(1)A failure to exercise, or any delay by QTC in exercising, any right or remedy under this guarantee does not operate as a waiver of the right or remedy.

(2)The exercise or partial exercise by QTC of a right or remedy does not prevent any further or other exercise of the right or remedy.

9QTC may not assign or transfer all or any part of its rights or obligations under this guarantee to a third party.

10The Treasurer does not incur any personal liability under this guarantee.

11On request by the Treasurer, QTC must give to the Treasurer any information about its transactions and dealings with the entity.

12A notice, communication, consent or direction that may be given by or to the Treasurer may be given by or to the Under Treasurer or a person acting in the position of the Under Treasurer.