Declaration of a Substantially Australian Investment Fund - SAPR 73/2019

Overview

The Declaration of a Substantially Australian Investment Fund, Gazetted as C2019G00887, was enacted in 2019 to address the need for ensuring that investment funds involved in critical infrastructure sectors, such as airports, are predominantly owned and controlled by Australian entities. This legislation falls under the purview of the Department of Infrastructure, Transport, Cities and Regional Development, reflecting the government's commitment to safeguarding national interests in strategic sectors. The policy objective is to maintain a significant level of Australian ownership and control over investment funds that hold shares in entities operating within these vital sectors, thereby ensuring alignment with national economic and security priorities.

Scope and Application

The Declaration of a Substantially Australian Investment Fund, under the Airports (Ownership – Interests in Shares) Regulations 1996, applies to the QIC Global Infrastructure Fund Whiskey Aggregator Trust managed by QIC Private Capital Pty Ltd. This declaration identifies the fund as being substantially Australian, thereby qualifying it under the regulatory framework. The jurisdictional reach of this legislation is primarily within the Commonwealth, impacting entities involved in the ownership of shares in Australian airports. The declaration ensures that the fund meets the criteria for being substantially Australian, which is critical for compliance with ownership restrictions in the aviation sector. The application of this Act is specifically targeted at entities and funds involved in airport share ownership, ensuring that such investments adhere to the regulatory stipulations set forth by the Commonwealth. The Act does not explicitly outline exclusions or exemptions but implies that non-substantially Australian investment funds would not qualify under this declaration.

Key Provisions

The key operative sections of the legislation (SAPR 73/2019) declare that the QIC Global Infrastructure Fund Whiskey Aggregator Trust, managed by QIC Private Capital Pty Ltd, is classified as a substantially Australian investment fund. This declaration is made under the authority of the Regulation 2.07 of the Airports (Ownership – Interests in Shares) Regulations 1996. The declaration is signed by Pip Spence, who is acting as the Secretary of the Commonwealth Department of Infrastructure, Transport, Cities and Regional Development. This formal declaration identifies the specific fund and its manager, establishing the fund's status as substantially Australian. The Act imposes specific obligations on the parties involved, notably the Department of Infrastructure, Transport, Cities and Regional Development and QIC Private Capital Pty Ltd. The Department is responsible for making the declaration based on certain criteria set forth in the Airports (Ownership – Interests in Shares) Regulations 1996, ensuring that the fund meets the definition of a substantially Australian investment fund. QIC Private Capital Pty Ltd, as the manager of the fund, must ensure that the fund maintains the requisite Australian characteristics to comply with the regulations. This includes maintaining records and providing documentation as required to substantiate the fund's status. There are no explicit offences, penalties, or civil/criminal consequences stated in the declaration itself. However, any breach of the underlying regulations that govern the classification of investment funds could result in enforcement actions. Under the Airports (Ownership – Interests in Shares) Regulations 1996, failure to comply with the regulations regarding the ownership and interests in shares could potentially lead to regulatory sanctions. Such sanctions might include fines, orders to rectify the breach, or other measures as deemed necessary by the relevant authorities. The maximum penalties for such breaches are not detailed in the declaration but would be specified in the regulations themselves.