Tasmanian Public Finance Corporation Act 1985 (TAS)

Tasmanian Public Finance Corporation Act 1985

An Act relating to the provision of finance for public purposes

[Royal Assent 23 May 1985]

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

PART IPreliminary1Short titleThis Act may be cited as the Tasmanian Public Finance Corporation Act 1985. 2Commencement (1)  This section and section 1 shall commence on the day on which this Act receives the Royal Assent. (2)  Except as provided in subsection (1), this Act shall commence on such day as may be fixed by proclamation. 3Interpretation [Section 3 Subsection (1) amended by No. 50 of 1987, s. 37 ][Section 3 Subsection (1) amended by No. 40 of 1991, s. 22 ][Section 3 Subsection (1) amended by No. 4 of 1995, s. 4 ][Section 3 Subsection (1) amended by No. 30 of 1995, s. 3 and Sched. 1 ][Section 3 Subsection (1) amended by No. 52 of 1995, s. 3 and Sched. 1 ] (1)  In this Act, unless the contrary intention appears – the Corporation means the Tasmanian Public Finance Corporation established under Part II; loan means any form of financial accommodation (not being a grant) and "lend" and "borrow" have corresponding meanings; local government authority means a council; the Minister responsible, in relation to a State authority, means the Minister having the administration of the Act by or under which the State authority is constituted; participating authority means – (a) a State authority; or (b) [Section 3 Subsection (1) amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997] a local government authority that has made arrangements to borrow money from, or to deposit money with, the Corporation; or (c) [Section 3 Subsection (1) amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997] [Section 3 Subsection (1) amended by No. 41 of 2005, Sched. 1, Applied:31 Dec 2005] [Section 3 Subsection (1) amended by No. 52 of 2008, Sched. 1, Applied:16 Jun 2009] the Tasmanian Ports Corporation Pty. Ltd. (ACN 114 161 938) while all the shares in that corporation are held in trust for the Crown; or (d) [Section 3 Subsection (1) amended by No. 52 of 2008, Sched. 1, Applied:16 Jun 2009] [Section 3 Subsection (1) amended by No. 46 of 2009, Sched. 1, Applied:27 Oct 2009] [Section 3 Subsection (1) amended by No. 51 of 2012, Sched. 2, Applied:01 Jul 2013] the Corporation, or a subsidiary of the Corporation, within the meaning of the Water and Sewerage Corporation Act 2012; or (e) [Section 3 Subsection (1) amended by No. 46 of 2009, Sched. 1, Applied:27 Oct 2009] [Section 3 Subsection (1) amended by No. 8 of 2011, Sched. 1, Applied:01 Jul 2011] a company formed under section 5 of the Rail Company Act 2009 while all the shares in that company are held in trust for the Crown, or a subsidiary of that company while all the shares in that subsidiary are held by that company; or (f) [Section 3 Subsection (1) amended by No. 8 of 2011, Sched. 1, Applied:01 Jul 2011] Tasmanian Irrigation Pty Ltd (ACN 133 148 384) while all the shares in that corporation are held in trust for the Crown; security includes any document evidencing indebtedness; State authority means – (a) a body corporate which, or of which the governing authority, wholly or partly comprises – (i) a Minister; or (ii) a person or persons appointed by the Governor, a Minister, or another State authority or a person or persons holding office by virtue of being a member or members of another State authority; or (b) [Section 3 Subsection (1) amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997] a body corporate which is financed wholly or in part out of public funds. (c) (d) (e) [Section 3 Subsection (1) amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997] (2)  [Section 3 Subsection (2) omitted by No. 4 of 1995, s. 4 ].  .  .  .  .  .  .  .   3AApplication of Act to certain persons [Section 3A Inserted by No. 39 of 1993, s. 24 and Sched. 2 ] (1)  This Act, except sections 16 and 18, applies to a person who, in the opinion of the Corporation, is directly or indirectly connected with the provision of financial accommodation for a shipping service to and from Tasmania managed or operated, or to be managed or operated, by a company formed and incorporated pursuant to section 5 of the TT-Line Arrangements Act 1993 as if that person were a State authority. (2) The terms and conditions (including, in particular, terms and conditions as to principal, interest, administrative charges, other charges and fees) of a loan provided under this Act to a person referred to in subsection (1) are the terms and conditions determined by the Corporation with the approval of the Treasurer. (3)  The Treasurer must not approve terms and conditions under subsection (2) unless the Treasurer has first consulted with the Minister to whom the administration of the TT-Line Arrangements Act 1993 is for the time being assigned. PART IIEstablishment, Composition, &C., of the Corporation4Establishment of the Corporation [Section 4 Amended by No. 52 of 1995, s. 3 and Sched. 1 ] There is established by this Act the Tasmanian Public Finance Corporation. 55A678910PART IIIOperations of the Corporation11Functions and powers of the Corporation [Section 11 Subsection (2) amended by No. 52 of 1995, s. 3 and Sched. 1 ] (1)  [Section 11 Subsection (1) amended by No. 4 of 1995, s. 10 ] The functions of the Corporation are – (a) to develop and implement borrowing and investment programmes for the benefit of participating authorities; and (b) to engage in such other activities relating to the finances of the Government of the State or participating authorities as are contemplated by this Act or approved by the Treasurer. (2)  [Section 11 Subsection (2) amended by No. 4 of 1995, s. 10 ] For the purposes of this Act, and notwithstanding the Government Business Enterprises Act 1995, the Corporation may, but only if it has the approval of the Treasurer – (a) borrow money within or outside Australia; (b) lend money to participating authorities; (c) accept money on deposit or loan from the Treasurer or a participating authority; (d) [Section 11 Subsection (2) amended by No. 74 of 1999, Sched. 2, Applied:01 Jan 2000] place on deposit with the Treasurer or an authorised deposit-taking institution money held by the Corporation; (e) invest money held by the Corporation; (f) issue, sell, purchase, pay-off, re-purchase, redeem, convert, or otherwise deal in or with securities; (g) .  .  .  .  .  .  .  .   (h) [Section 11 Subsection (2) amended by No. 74 of 1999, Sched. 2, Applied:01 Jan 2000] appoint an authorised deposit-taking institution or other person to act as underwriter, manager, trustee, or agent in connection with any transaction within or outside Australia; (i) enter into contracts of guarantee; (j) .  .  .  .  .  .  .  .   (ja) enter into any agreement or arrangement for the purpose of returning a gain, avoiding a loss, or with a view to avoiding a loss by reference to currency obligations, currency exchange rate movement or interest rate movement; or (jb) enter into any agreement or arrangement for the purposes of managing or varying financial returns or financial or currency risks (including but not limited to risks arising from currency exchange rates or interest rates); or (k) enter into any agreement or arrangement of a kind not previously mentioned in this subsection or acquire or incur any other rights or liabilities; or (l) .  .  .  .  .  .  .  .   (3)  [Section 11 Subsection (3) omitted by No. 4 of 1995, s. 10 ].  .  .  .  .  .  .  .   12Limitation on functions and powers [Section 12 Substituted by No. 52 of 1995, s. 3 and Sched. 1 ] In performing and exercising its functions and powers, and in meeting its objectives, under this or any other Act, the Corporation must have due regard to the appropriate levels of financial risk. 1313A1415Government guarantee (1)  [Section 15 Subsection (1) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] [Section 15 Subsection (1) amended by No. 4 of 1995, s. 14 and Sched. 1 ] Liabilities incurred or assumed by the Corporation in pursuance of this Act are guaranteed by the State, and any liability of the Crown arising by virtue of this subsection shall be a charge on the Public Account, and shall be payable out of the Public Account without further appropriation than this section. (2)  [Section 15 Subsection (2) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] [Section 15 Subsection (2) amended by No. 4 of 1995, s. 14 and Sched. 1 ] Where an amount is paid by the State under the guarantee created by subsection (1), the Corporation is liable to pay an amount equal to that amount to the Treasurer, for credit of the Public Account, by such instalments, at such times, and with such interest, as the Treasurer determines. 15AGovernment guarantee of certain borrowings [Section 15A Inserted by No. 22 of 2023, s. 5, Applied:01 Jul 2023] (1)  In this section – relevant organisation means an organisation or entity referred to in Schedule 1. (2) One or more amounts borrowed by a relevant organisation from the Corporation is guaranteed by the State up to, and not in excess of, such amount, in total, as is determined by the Treasurer as the maximum amount guaranteed under this section in respect of the relevant organisation. (3)  For the purposes of subsection (2), an amount borrowed by a relevant organisation from the Corporation includes each of the following: (a) the amount borrowed by the relevant organisation from the Corporation; (b) the interest payable by the Corporation in respect of the amount borrowed by the relevant organisation; (c) any charges payable to the Corporation, by the relevant organisation, in respect of the amount borrowed; (d) any expenses that are incurred by the Corporation in relation to the amount borrowed by the relevant organisation. (4) This section only applies in respect of an amount borrowed by a relevant organisation from the Corporation if the Corporation has exercised all of its rights and remedies under all securities held in respect of the amount borrowed by the relevant organisation. (5) A payment by the State to the Corporation under this section – (a) is a charge on the Public Account; and (b) is payable out of the Public Account without further appropriation than this section. (6) If the State is required to make a payment to the Corporation under this section in respect of an amount borrowed by a relevant organisation – (a) the amount so paid by the State under this section is a debt due and owing, by the relevant organisation, to the State; and (b) in addition to any other action that may be taken by the State in respect of that debt, the Treasurer may enter into an agreement with the relevant organisation for the repayment of the debt, on such terms and conditions, and in such manner, as may be determined by the Treasurer. 16Borrowing of money from, &c., the Corporation by State authorities [Section 16 Substituted by No. 4 of 1995, s. 12 ] (1) Notwithstanding any other Act, a State authority – (a) may borrow money from the Corporation, and, if the Treasurer by notice published in the Gazette so directs, must, in accordance with the notice, borrow money from the Corporation and not from any other person; and (b) may and, if the Treasurer by notice published in the Gazette so directs, must deposit with or lend to the Corporation money of the State authority that is not immediately required for the purposes of the State authority; and (c) may allow the Corporation to conduct debt management or any other activity of the type described in section 11 (2) on behalf of the State authority. (2)  The terms and conditions of any transaction or activity undertaken under subsection (1) are to be as agreed between the Corporation and the State authority and in accordance with any guidelines issued by the Treasurer. (3)  The Treasurer may issue guidelines relating to transactions or activities undertaken under subsection (1). 16ATransactions with local government authorities [Section 16A Inserted by No. 4 of 1995, s. 12 ] (1) Notwithstanding any other Act, a local government authority may – (a) borrow money from; and (b) deposit money with; and (c) lend money to – the Corporation on such terms and conditions as may be agreed between the Corporation and the local government authority. (2) A local government authority is not liable to pay a guarantee fee in respect of monies borrowed from the Corporation for the purposes of discharging or defeasing an existing liability. (3) In respect of a borrowing by a local government authority not referred to in subsection (2), the Treasurer may give directions for the purposes of – (a) assessing the amount of a guarantee fee in relation to the assessed value of the benefit to be obtained by the local government authority in respect of the borrowing; and (b) determining the manner in which and the times at which the guarantee fee is to be paid. 17Treasurer may deposit money with the Corporation [Section 17 Amended by No. 4 of 1995, s. 14 and Sched. 1 ][Section 17 Amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] Notwithstanding the Financial Management Act 2016, any money under the control of the Treasurer may be deposited with or lent to the Corporation by the Treasurer upon such terms and conditions as the Treasurer may determine. 18Treasurer may re-arrange finances of State authorities (1) The Treasurer may, if he thinks fit, after consultation with the Minister responsible for a State authority that has borrowed money from a source other than the Treasurer or the Government of the State, by notice published in the Gazette – (a) transfer to the Corporation the liabilities of the State authority in respect of the loan; and (b) direct that the money outstanding under the loan shall be regarded for all purposes as having been borrowed by the State authority from the Corporation upon terms and conditions specified in the notice. (2) The Treasurer may, after consultation with the Minister responsible for a State authority, vary any terms and conditions applying in relation to the State authority by virtue of a notice under subsection (1). PART IIIAMersey Community Hospital Fund18AInterpretation of Part [Section 18A Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] In this Part – dividend means a dividend payable, or paid, into the Public Account from the Fund in accordance with this Part; Fund means the Mersey Community Hospital Fund referred to in section 18D(1). 18BWhen Part takes effect [Section 18B Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] This Part takes effect on the day on which the State receives $730.4 million from the Commonwealth in relation to the transfer of ownership of the Mersey Community Hospital from the Commonwealth to the State. 18CEquity contribution [Section 18C Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] (1) No later than 30 days after the day on which this Part takes effect, the Treasurer must make an equity contribution to the Corporation. (2)  The equity contribution – (a) is to be the amount of $730.4 million; and (b) may be made before or after the commencement of this Part. 18DMersey Community Hospital Fund [Section 18D Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] (1)  The equity contribution referred to in section 18C(1), and any returns, and capital gains or losses, that accrue in relation to the equity contribution, comprise the Mersey Community Hospital Fund (the Fund). (2) The Corporation is to invest, in accordance with the guidelines, in relation to investment, comprised in Treasurer’s Instructions for the purposes of the Government Business Enterprises Act 1995, so much of the amount standing from time to time in the Fund as is not required, at the time of the investment, to be paid out of the Fund as a dividend under this Part. (3) For the purposes of this Part, the Treasurer may issue under section 114 of the Government Business Enterprises Act 1995 Treasurer’s instructions so as to – (a) provide guidelines relating to the determination, calculation and payment of dividends, within the meaning of this Part, and any other matter connected with such dividends; or (b) apply, to dividends, within the meaning of this Part, guidelines made under that section in relation to dividends, or special dividends, within the meaning of that Act. 18EDividends from Mersey Community Hospital Fund [Section 18E Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] (1) The Corporation is to pay into the Public Account, no later than 15 June in each financial year in which this Part is, for all or part of the year, in effect, a dividend for the financial year. (2)  The amount of the dividend for a financial year is the amount of the dividend, for the financial year, determined in accordance with section 18F. (3)  Subsection (1) does not apply in relation to the 2016-2017 financial year. (4)  The purpose of the payment of a dividend under subsection (1) is to ensure the ongoing funding of the Mersey Community Hospital. (5)  The dividend is to be paid out of the Fund. (6) Division 2 of Part 11 of the Government Business Enterprises Act 1995 does not apply in relation to a dividend under this Part. (7)  Subject to subsection (6), nothing in this Part is to be taken to affect the application to the Corporation of Division 2 of Part 11 of the Government Business Enterprises Act 1995. 18FDetermination of amount of dividend [Section 18F Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] (1)  For the 2017-2018 financial year, the amount of the dividend is $78 142 500. (2)  The amount of the dividend for each financial year after the 2017-2018 financial year is the amount of the dividend for the immediately previous financial year, as increased by 3.5%. (3)  Despite subsections (1) and (2), if the amount in the Fund is insufficient to pay all of the amount of the dividend calculated in accordance with subsection (2) in relation to a financial year, the amount of the dividend for that financial year is the amount equal to all of the remaining amount in the Fund. (4)  This Part ceases to be in effect when the amount of the dividend for a financial year is the amount calculated in accordance with subsection (3). 18GAmount of dividend is to be appropriated for Mersey Community Hospital [Section 18G Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] (1)  In this section – Appropriation Bill means a Bill for an Act which authorises the issue and application of any money from the Public Account to meet – (a) the cost of the ordinary annual services of the Government; or (b) expenditure on public works or the acquisition of any property required for public purposes; relevant Appropriation Bill means an Appropriation Bill which includes an amount to be appropriated in relation to the funding of the Mersey Community Hospital, whether or not the amount is specifically identified in that Bill to be for that purpose. (2)  The Minister who introduces into the House of Assembly a relevant Appropriation Bill for a financial year in which a dividend is to be paid into the Public Account in accordance with section 18E(1) is to specify, in the papers that are tabled in the House of Assembly in connection with the Bill, the amount, included in an appropriation in the Bill, that is for the purpose of funding the Mersey Community Hospital, which amount is to be not less than the amount of the dividend. PART IVMiscellaneous192021State authorities to provide certain information [Section 21 Amended by No. 4 of 1995, s. 14 and Sched. 3 ] A State authority shall, if so required by the Treasurer, furnish the Board with information relating to the financial affairs of the State authority. 2223Certificates of compliance with this Act (1)  [Section 23 Subsection (1) amended by No. 4 of 1995, s. 14 and Sched. 3 ] The Treasurer may, if he is so satisfied, certify that anything done by the Board has been done in pursuance of this Act. (2)  In any legal proceedings, an apparently genuine document purporting to be a certificate under subsection (1) shall be accepted as proof of the matters stated in the certificate in the absence of proof to the contrary. 24Amendment of Schedule 1 [Section 24 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ][Section 24 Inserted by No. 22 of 2023, s. 6, Applied:01 Jul 2023] (1)  The Treasurer, by order, may amend Schedule 1 by doing any one or more of the following: (a) inserting a new organisation or entity; (b) omitting an organisation or entity; (c) omitting an organisation, or entity, and substituting another organisation or entity. (2)  The provisions of section 47(3), (3A), (4), (5), (6) and (7) of the Acts Interpretation Act 1931 apply to an order under this section as if the order were regulations within the meaning of that Act. (3)  For the avoidance of doubt, an order under this section – (a) is a statutory rule within the meaning of the Rules Publication Act 1953; and (b) is not subordinate legislation within the meaning of the Subordinate Legislation Act 1992. 2526Schedule 1Relevant Organisations

Section 15A(1)

1.    A Government Business Enterprise within the meaning of the Government Business Enterprises Act 1995. 2.    A company formed under the Electricity Companies Act 1997. 3.    The Company as defined in the Irrigation Company Act 2011. 4.    The Company as defined in the Metro Tasmania Act 1997. 5.    The Company as defined in the Racing (Tasracing Pty Ltd) Act 2009. 6.    The Company formed under the Rail Company Act 2009. 7.    The Company formed under the TT-Line Arrangements Act 1993. 8.    The Corporation as defined in the Tasmanian Ports Corporation Act 2005. 9.    A subsidiary, within the meaning of the Corporations Act, that is wholly owned by one of the entities specified in item 1, 2, 3, 4, 5, 6, 7 or 8. 10.    The Forest Practices Authority continued under the Forest Practices Act 1985. 11.    Homes Tasmania, as established by the Homes Tasmania Act 2022. 12.    Macquarie Point Development Corporation, as established by the Macquarie Point Development Corporation Act 2012. 13.    Private Forests Tasmania, as established by the Private Forests Act 1994. 14.    Stadiums Tasmania, as established by the Stadiums Tasmania Act 2022. 15.    The State Fire Commission, as established by the Fire Service Act 1979. 16.    Tasmania Development and Resources, as continued by the Tasmanian Development Act 1983. 17.    TasTAFE, as continued under the TasTAFE (Skills and Training Business) Act 2021.