EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
Public Governance, Performance and Accountability (Investment) Amendment Authorisation 2018 (the amendment authorisation)
Purpose of the amendment authorisation
The amendment authorisation amends the Public Governance, Performance and Accountability (Investment) Authorisation 2014 (the authorisation) to authorise specific forms of investment for the National Housing Finance and Investment Corporation (NHFIC), a corporate Commonwealth entity subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This enhances NHFIC’s ability to operate along commercial lines, better enabling NHFIC to meet government expectations.
Commencement
The amendment authorisation commences on the day after it is registered.
Authority for the authorisation
Section 59 of the PGPA Act permits corporate Commonwealth entities to invest money not immediately required for the purposes of the entity in certain forms of investment prescribed in the PGPA Act. Subparagraph 59(1)(b)(iii) of the PGPA Act provides that the Finance Minister may authorise in writing any other form of investment for corporate Commonwealth entities.
Statement of Compatibility with Human Rights
A Statement of Compatibility with Human Rights is not required for the amendment authorisation. Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislation Act 2003. An authorisation, including an amendment authorisation, made under subparagraph 59(1)(b)(iii) of the PGPA Act is exempt from disallowance under subsection 59(4) of the PGPA Act. As such, a Statement of Compatibility with Human Rights is not required.
Consultation
In accordance with section 17 of the Legislation Act 2003, the Treasury, as the portfolio department, was consulted in the preparation of the amendment authorisation and the Office of Parliamentary Counsel has drafted the amendment instrument.
Summary of modifications
Item 1 of the amendment authorisation adds an additional Part (Part 11) and section (section 14) to the authorisation. Section 14 provides authorisation for NHFIC to undertake the specific forms of investment prescribed.