Emergency Response Fund Investment Mandate Amendment (Disaster Ready Fund) Direction 2023

Administered by Department of Finance

Legislation au F2023L00128 Not in force Legislative Instrument

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Explanatory Statement for the Emergency Response Fund Investment Mandate Amendment (Disaster Ready Fund) Direction 2023

Objective of the Direction

1          As stated in the Emergency Response Fund Amendment (Disaster Ready Fund) Act 2022 (the ERF Amendment Act) Explanatory Memorandum, the Government has established the Disaster Ready Fund (the DRF) by amending the Emergency Response Fund Act 2019 (ERF Act) to become the Disaster Ready Fund Act 2019 (DRF Act). The DRF aims to improve Australia’s disaster readiness by investing up to $200 million per annum to build resilience to, prepare for or reduce the risk of future natural disasters, and build the long-term sustainability of communities that are at risk of being affected by a future natural disaster.

2          Subsection 4(1) of the ERF Amendment Act gives authority to amend the Emergency Response Fund Investment Mandate Direction 2020 (ERF Investment Mandate) to reflect the change to the name of the Emergency Response Fund (the ERF) to the DRF and the ERF Act to the DRF Act. The Emergency Response Fund Investment Mandate Amendment (Disaster Ready Fund) Direction 2023 (ERF Investment Mandate Amendment) makes the amendments to the ERF Investment Mandate.

Notes on the Sections

Part 1 - Preliminary

Section 1 - Name

3          The name of this direction follows the Office of Parliamentary Counsel’s Drafting Direction No 1.1A, reissued 1 July 2022.


Section 2 - Commencement

4          This section provides that this direction commences at the same time as the commencement of Schedule 1 to the ERF Amendment Act. Schedule 1 to the ERF Amendment Act will commence on a day to be fixed by Proclamation, or if it has not commenced by 29 May 2023, it will commence on 30 May 2023, which is the day after six months from the day the ERF Amendment Act received the Royal Assent.

5          An instrument made under subsection 4(1) of the ERF Amendment Act must not take effect before the commencement of Schedule 1 to the ERF Amendment Act. This is in place as the updated names of the DRF and DRF Act will not occur until Proclamation and allows the DRF Act and the Investment Mandate to be aligned.

Section 3 - Authority

6          This section provides that the ERF Investment Mandate Amendment is made under subsection 4(1) of the ERF Amendment Act.

7          The ERF Investment Mandate Amendment is a legislative instrument that is not subject to disallowance or sunsetting, pursuant to the Legislation (Exemption and Other Matters) Regulation 2015 made under the Legislation Act 2003. The ERF Investment Mandate Amendment will be tabled in the Parliament and published on the Federal Register of Legislation.

8          The responsible Ministers must consult on this direction as required by subsection 4(3) of the ERF Amendment Act, which applies the consultation requirements in section 42 of the DRF Act to this instrument. This requires the Ministers to invite the Future Fund Board of Guardians (Board) to make a submission on the draft ERF Investment Mandate Amendment and to consider any submission so made. Any submission made by the Board on the draft ERF Investment Mandate Amendment must be tabled in the Parliament.  

Section 4 - Schedules

9          This section provides that each instrument that is specified in a Schedule to this ERF Investment Mandate Amendment is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the ERF Investment Mandate Amendment has effect according to its terms.


Part 2 - Direction

Item 1 - Section 1 Name

10      This item updates the name of the ERF Investment Mandate as the Disaster Ready Fund Investment Mandate Direction 2020 as provided for in paragraph 4(1)(c) of the ERF Amendment Act.

Item 2 - Section 3 Authority

11      This item updates the name of the Act that provides the authority to make the ERF Investment Mandate (renamed by item 1 of this Schedule to the Disaster Ready Fund Investment Mandate Direction 2020) from the ERF Act to the DRF Act. This amendment is required as a consequence of the renaming of the ERF Act to the DRF Act by the ERF Amendment Act, and is provided for in paragraph 4(1)(d) of that Act.

Item 3 and Item 4 - Section 4 Definitions

12      Items 3 and 4 amend the definitions of Act and Fund to reflect the changed name of the DRF Act and the DRF, as provided for in paragraphs 4(1)(e) and (f) of the ERF Amendment Act respectively.  

Consultation

13      The Board has been consulted prior to making this ERF Investment Mandate Amendment, in accordance with subsection 4(3) of the ERF Amendment Act. This is consistent with the consultation provision under section 42 of the DRF Act which requires the responsible Ministers to consult the Board prior to issuing an investment mandate direction under subsection 39(1) of the DRF Act.

 

Overview

The Emergency Response Fund Investment Mandate Amendment (Disaster Ready Fund) Direction 2023 was enacted to align the Emergency Response Fund Investment Mandate Direction 2020 with the recent legislative changes that transitioned the Emergency Response Fund (ERF) into the Disaster Ready Fund (DRF). This legislative instrument was introduced to address the need for updated terminology and references following the renaming of the ERF to the DRF under the Emergency Response Fund Amendment (Disaster Ready Fund) Act 2022. The direction was issued by the responsible Ministers in accordance with subsection 4(1) of the aforementioned Act, ensuring the alignment of the investment mandate with the DRF Act. The objective of the Direction is to facilitate the transition of the Emergency Response Fund into the Disaster Ready Fund, thereby enabling the DRF to focus on improving Australia’s disaster readiness by investing in resilience and preparedness measures. The Direction was subject to consultation with the Future Fund Board of Guardians, as mandated by the DRF Act, and is not subject to disallowance or sunsetting.

Scope and Application

The Emergency Response Fund Investment Mandate Amendment (Disaster Ready Fund) Direction 2023 applies to the Disaster Ready Fund Investment Mandate Direction 2020, reflecting the legislative transition from the Emergency Response Fund to the Disaster Ready Fund under the Emergency Response Fund Amendment (Disaster Ready Fund) Act 2022. This Direction modifies the name and references within the Investment Mandate to align with the new Disaster Ready Fund Act 2019, thereby ensuring that the mandate accurately reflects the fund's new identity and objectives. The amendments are geographically bound to the Commonwealth of Australia, extending its application nationally. The Direction does not specify exclusions or exemptions but ensures that the updated mandate is consistent with the legislative changes. The amendments made by this Direction take effect concurrently with the commencement of Schedule 1 to the ERF Amendment Act, which is set to occur on a date to be fixed by Proclamation or on 30 May 2023 if not earlier proclaimed. The Direction itself is a legislative instrument exempt from disallowance and sunsetting, and it mandates consultation with the Future Fund Board of Guardians, as outlined in the DRF Act. This ensures that the Board's input is considered before the Direction is finalised and issued.

Key Provisions

The Emergency Response Fund Investment Mandate Amendment (Disaster Ready Fund) Direction 2023, as outlined in the explanatory statement, primarily serves to update the Emergency Response Fund Investment Mandate Direction 2020 in light of the Emergency Response Fund Amendment (Disaster Ready Fund) Act 2022, which renamed the Emergency Response Fund (ERF) to the Disaster Ready Fund (DRF) and the Emergency Response Fund Act 2019 to the Disaster Ready Fund Act 2019 (DRF Act). These updates are made pursuant to subsection 4(1) of the ERF Amendment Act, with the aim of ensuring consistency in nomenclature across legislative instruments following the establishment of the DRF (section 2). The Direction is not subject to disallowance or sunsetting, ensuring its continued applicability once the relevant legislative changes are implemented (section 3). The Direction imposes specific obligations on the parties governed by it, most notably the requirement for the responsible Ministers to consult the Future Fund Board of Guardians prior to issuing any investment mandate direction under the DRF Act. This consultation process is mandated by subsection 4(3) of the ERF Amendment Act and is further elaborated in section 42 of the DRF Act, which outlines the consultation requirements applicable to the DRF (section 8). This ensures that the Board has an opportunity to provide input on the draft ERF Investment Mandate Amendment, which must subsequently be tabled in Parliament. Failure to adhere to the provisions of the ERF Investment Mandate Amendment could potentially lead to legal consequences, though specific offences, penalties, or consequences are not explicitly detailed in the explanatory statement. Given that the Direction is a legislative instrument not subject to disallowance or sunsetting, it remains in force and effect unless explicitly repealed or amended by subsequent legislation. The legal and administrative repercussions of non-compliance would likely depend on the specific context and the nature of the breach, potentially including civil or administrative penalties as prescribed under the DRF Act or other relevant legislation.

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Area of Law
Emergency Management & Disaster Response
Instrument
Direction
Concepts
Commencement Provisions
Consultation Requirements
Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.