Declaration of a Substantially Australian Investment Fund - SAPR 72/2019

Overview

The Airports (Ownership – Interests in Shares) Regulations 1996, as amended, were enacted by the Australian Parliament to ensure the continued control of Australian airports by Australian interests. This legislative framework was introduced to address the problem of foreign ownership and control in the aviation sector, ensuring that airport operations remain aligned with national security and economic interests. The policy objective of these regulations is to maintain the integrity of Australia's aviation infrastructure by confirming that the majority of shares in Australian airports are held by entities that are substantially Australian-owned. The declaration issued by the Acting Secretary of the Commonwealth Department of Infrastructure, Transport, Cities and Regional Development on 19 September 2019 identifies certain investment funds managed by QIC Private Capital as substantially Australian investment funds, thereby complying with the regulatory requirements for investment in Australian airports.

Scope and Application

This declaration pertains to the identification and recognition of certain investment funds as substantially Australian for the purposes of the Airports (Ownership – Interests in Shares) Regulations 1996. Specifically, the declaration applies to the QIC Global Infrastructure Fund (Australia) No. 1 Trust, QIC Global Infrastructure Fund (Australia) No. 2 Trust, QIC Global Infrastructure Fund REV AIV Trust, and QIC Global Infrastructure Fund Manta Ray AIV Trust, which are managed by QIC Private Capital Pty Ltd. These funds are identified as substantially Australian investment funds, thereby qualifying under the specified regulations. The jurisdictional reach of this declaration is within the Commonwealth of Australia, governed by the relevant authorities under the Department of Infrastructure, Transport, Cities and Regional Development. The declaration does not explicitly mention any exclusions, exemptions, or thresholds, nor does it extend or restrict the application through subordinate instruments beyond what is directly stated.

Key Provisions

The main operative sections of this Declaration pertain to the identification and recognition of specific investment funds as substantially Australian investment funds under the Airports (Ownership – Interests in Shares) Regulations 1996. The Acting Secretary, Pip Spence, declares that four funds managed by QIC Private Capital Pty Ltd are considered substantially Australian investment funds (1). These funds include QIC Global Infrastructure Fund (Australia) No. 1 Trust, QIC Global Infrastructure Fund (Australia) No. 2 Trust, QIC Global Infrastructure Fund REV AIV Trust, and QIC Global Infrastructure Fund Manta Ray AIV Trust (1). This declaration is made pursuant to Regulation 2.07 of the Airports (Ownership – Interests in Shares) Regulations 1996 (1). Under the Airports (Ownership – Interests in Shares) Regulations 1996, the Act imposes obligations and requirements on the parties and entities it governs, particularly regarding the ownership and interests in shares of airport companies. The declaration by the Acting Secretary ensures that these specified investment funds meet the criteria to be recognised as substantially Australian investment funds. This recognition is critical for determining the compliance of these funds with the regulatory framework governing airport ownership and investment interests. The entities managing these funds must adhere to the regulations set forth in the Airports (Ownership – Interests in Shares) Regulations 1996, ensuring that their operations align with the legislative requirements. The Act provides for civil and criminal consequences for non-compliance with the provisions of the Airports (Ownership – Interests in Shares) Regulations 1996. While the Declaration itself does not specify penalties, breaches of the regulations could lead to enforcement actions by the relevant authorities. These actions might include fines, legal proceedings, or other measures to ensure compliance with the Act. The maximum penalties for non-compliance can be significant, depending on the severity and nature of the breach, as outlined in the relevant sections of the Airports (Ownership – Interests in Shares) Regulations 1996. It is imperative for the parties and entities governed by the Act to understand and meet their obligations to avoid these potential consequences.