National Housing Finance and Investment Corporation Amendment Act 2018

Administered by Department of the Treasury

Legislation au C2018A00139 In force Act

Legislation content

 

 

 

 

 

 

National Housing Finance and Investment Corporation Amendment Act 2018

 

No. 139, 2018

 

 

 

 

 

An Act to amend the National Housing Finance and Investment Corporation Act 2018, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Special account

National Housing Finance and Investment Corporation Act 2018

Schedule 2—Other amendments

National Housing Finance and Investment Corporation Act 2018

 

 

 

National Housing Finance and Investment Corporation Amendment Act 2018

No. 139, 2018

 

 

 

An Act to amend the National Housing Finance and Investment Corporation Act 2018, and for related purposes

[Assented to 29 November 2018]

The Parliament of Australia enacts:

1  Short title

  This Act is the National Housing Finance and Investment Corporation Amendment Act 2018.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

The day after this Act receives the Royal Assent.

30 November 2018

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Special account

 

National Housing Finance and Investment Corporation Act 2018

1  Before section 48

Insert:

Division 1—National Housing Finance and Investment Corporation Special Account

47A  National Housing Finance and Investment Corporation Special Account

 (1) The National Housing Finance and Investment Corporation Special Account (the Account) is established by this section.

 (2) The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.

47B  Credits to the Account

  There must be credited to the Account amounts equal to the following:

 (a) $105 million, to be credited on the day this section commences;

 (b) $310 million, to be credited on 1 July 2019;

 (c) $270 million, to be credited on 1 July 2020;

 (d) $165 million, to be credited on 1 July 2021;

 (e) each amount paid to the Commonwealth by the NHFIC, on or after the day this section commences, that:

 (i) is a repayment of money debited from the Account, or of other money lent by the Commonwealth to the NHFIC (whether as described in subsection 50(1) or otherwise); and

 (ii) is paid in accordance with the Investment Mandate.

Note 1: For paragraphs (a) and (e), this section commences on the day the National Housing Finance and Investment Corporation Amendment Act 2018 commences.

Note 2: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.

Note 3: An example of such an Appropriation Act is the Appropriation Act (No. 2) 2018‑2019. Under section 15 of that Act, it is expected that $150 million will be debited against the appropriation in that Act and credited to the Account.

47C  Purpose of the Account

 (1) The purpose of the Account is to make loans to the NHFIC for the NHFIC to later apply in accordance with subsection (2).

Note: See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts).

 (2) The NHFIC may apply such loans:

 (a) for making loans in the performance of its function mentioned in paragraph 8(1)(a); or

 (b) for other purposes as agreed between the Minister and the Finance Minister in accordance with the Investment Mandate.

Note: This subsection confers a function on the NHFIC to apply the loans from the Commonwealth mentioned in subsection (1). This means the Investment Mandate may include directions about how the NHFIC applies those loans.

 (3) Subsection (2) does not prevent investment, under section 59 of the Public Governance, Performance and Accountability Act 2013, of money that is not immediately required for the purposes of the NHFIC.

47D  Cap on the Account and transfers to general CRF

 (1) If, at a particular time, the balance of the Account exceeds $1 billion, an amount equal to the excess is debited from the Account immediately after that time.

 (2) The Minister may, by writing, direct that a specified amount is to be debited from the Account on a specified day (which must be on or after the day the direction is made).

 (3) The Minister must consult the Board before making a direction under subsection (2).

 (4) A direction under subsection (2) is not a legislative instrument.

 (5) The Minister must give a copy of a direction under subsection (2) to the Finance Minister.

Division 2—The NHFIC’s money

2  Subsection 50(5)

After “this section”, insert “or Division 1”.

Schedule 2—Other amendments

 

National Housing Finance and Investment Corporation Act 2018

1  At the end of section 18

Add:

 (3) In appointing Board members, the Minister must ensure that:

 (a) the Board members collectively have an appropriate balance of qualifications, skills or experience in the fields mentioned in subsection (2); and

 (b) at least one Board member has appropriate qualifications, skills or experience in social or affordable housing.

2  Subsection 57(1)

Omit “the period of 3 years beginning when this Act commences”, substitute “30 June 2020”.

3  Application

The amendment of section 18 of the National Housing Finance and Investment Corporation Act 2018 made by this Act applies in relation to appointments made under that section on or after the commencement of this Act.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 18 October 2018

Senate on 12 November 2018]

(212/18)

 

Overview

The National Housing Finance and Investment Corporation Amendment Act 2018 was enacted by the Parliament of Australia to amend the National Housing Finance and Investment Corporation Act 2018, addressing specific areas to enhance the operations and oversight of the NHFIC. The Act was designed to introduce several key changes, including the establishment of a special account for the NHFIC, providing a structured financial mechanism for the NHFIC's operations. Additionally, it ensures that the NHFIC Board members possess appropriate qualifications and experience in relevant fields, particularly in social or affordable housing, thereby strengthening the NHFIC's governance and capacity to manage housing finance effectively. The Act also extends the tenure of certain NHFIC Board members to ensure continuity and stability in leadership. The overarching policy objective is to improve the NHFIC's financial management and governance to better support its role in providing housing finance and investment.

Scope and Application

The National Housing Finance and Investment Corporation Amendment Act 2018 amends the National Housing Finance and Investment Corporation Act 2018, introducing several significant changes to the operations and governance of the National Housing Finance and Investment Corporation (NHFIC). This Act applies to the NHFIC, a statutory body responsible for providing finance and investment for housing in Australia, and extends its application across the Commonwealth. The Act includes the establishment of a National Housing Finance and Investment Corporation Special Account, which serves as a special account under the Public Governance, Performance and Accountability Act 2013. The Act outlines specific credits to be made to this Account and details the purpose of the Account, which is to provide loans to the NHFIC for certain housing-related functions and other purposes agreed upon by the relevant Ministers. Additionally, the Act imposes a cap on the Account and specifies the conditions under which amounts may be debited from it. The amendment of section 18 of the National Housing Finance and Investment Corporation Act 2018, concerning the appointment of Board members, applies to appointments made on or after the commencement of this Act. This legislation is effective throughout Australia and will be enforced according to the stipulated commencement dates, with certain provisions taking effect immediately upon Royal Assent.

Key Provisions

The National Housing Finance and Investment Corporation Amendment Act 2018 introduces significant changes to the National Housing Finance and Investment Corporation Act 2018, primarily through the establishment of a new Special Account and modifications to Board appointments and reporting periods. Section 47A of the Act establishes the National Housing Finance and Investment Corporation Special Account, designated as a special account under the Public Governance, Performance and Accountability Act 2013. This account is intended to facilitate loans to the NHFIC, which can then be applied in line with the NHFIC’s functions or as otherwise agreed between the Minister and the Finance Minister under the Investment Mandate. The Act specifies that certain amounts will be credited to the account on particular dates, and any repayments of loans or other money lent by the Commonwealth to the NHFIC will also be credited to the account, provided they comply with the Investment Mandate. The Act imposes several obligations on the NHFIC and the Minister. Firstly, the Minister must ensure that the NHFIC Board members collectively possess the appropriate qualifications, skills, or experience in relevant fields, and at least one member must have expertise in social or affordable housing (section 18(3)). Additionally, the Minister must consult with the Board before directing the debiting of funds from the Account (section 47D(3)). Furthermore, the Minister is required to notify the Finance Minister of any such direction (section 47D(5)). The Act also mandates that the NHFIC may apply the loans from the Account for making loans in the performance of its function or for other purposes as agreed upon by the Minister and the Finance Minister (section 47C). Breaches of the Act can result in civil and criminal consequences. While specific penalties are not detailed within the text provided, it is understood that violations of provisions under the Public Governance, Performance and Accountability Act 2013, which govern special accounts, can lead to substantial fines and even imprisonment. The Act’s failure to credit specified amounts to the Special Account or to adhere to the prescribed investment and application guidelines could result in legal action under the broader legislative framework. Additionally, the requirement for the Minister to consult the Board before debiting funds from the Account underscores the importance of compliance and the potential repercussions of non-compliance.

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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.