Overview

The Public Governance, Performance and Accountability (Investment) Amendment Authorisation 2018 was enacted to amend the Public Governance, Performance and Accountability (Investment) Authorisation 2014, thereby enhancing the investment capabilities of the National Housing Finance and Investment Corporation (NHFIC) in alignment with the Public Governance, Performance and Accountability Act 2013. The amendment was introduced to address a gap in NHFIC's ability to operate commercially and meet government expectations. This authorisation was enacted by the Minister for Finance, pursuant to section 59 of the PGPA Act, which allows for the Finance Minister to authorise additional forms of investment for corporate Commonwealth entities. The policy objective behind the amendment is to improve NHFIC's operational efficiency and effectiveness by broadening its investment options. The amendment authorisation commenced on the day following its registration and, as it is exempt from disallowance, it did not require a Statement of Compatibility with Human Rights. The preparation of the amendment authorisation involved consultation with the Treasury, the relevant portfolio department, and was drafted by the Office of Parliamentary Counsel.

Scope and Application

The Public Governance, Performance and Accountability (Investment) Amendment Authorisation 2018 amends the Public Governance, Performance and Accountability (Investment) Authorisation 2014, specifically to authorise additional 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. This amendment enhances NHFIC's capacity to operate in a commercial manner, thereby improving its ability to meet government expectations. The amendment authorisation applies solely to NHFIC, a corporate Commonwealth entity, and specifies the types of investments it is permitted to make. It does not extend to any other entity or individual outside of NHFIC. The authorisation is effective from the day after it is registered, as stipulated in the legislation. The authority for this amendment stems from Section 59 of the PGPA Act, which allows corporate Commonwealth entities to invest funds not immediately needed for their operations, subject to prescribed forms of investment, and subparagraph 59(1)(b)(iii) of the PGPA Act, which empowers the Finance Minister to authorise additional forms of investment. The amendment authorisation is exempt from disallowance, hence a Statement of Compatibility with Human Rights is not required. The Treasury, as the relevant portfolio department, was consulted in the preparation of the amendment, and the Office of Parliamentary Counsel drafted the amendment instrument.

Key Provisions

The Public Governance, Performance and Accountability (Investment) Amendment Authorisation 2018 (F2018L01060) amends the Public Governance, Performance and Accountability (Investment) Authorisation 2014 (the authorisation) to provide the National Housing Finance and Investment Corporation (NHFIC) with specific investment powers. Section 14 of the amendment authorisation, which is part of the newly added Part 11, allows NHFIC to undertake certain forms of investment, enhancing its commercial operations and enabling it to better meet government expectations. These forms of investment are not specified in detail in the explanatory statement, but they are likely to be those that align with the NHFIC's objectives and regulatory framework. The amendment authorisation imposes obligations on NHFIC to ensure that its investments are in line with the authorised forms. NHFIC must comply with the investment provisions as detailed in the Public Governance, Performance and Accountability Act 2013 (PGPA Act), which governs the entity's activities. This includes adhering to the financial and operational guidelines set forth in the PGPA Act and the specific authorisations granted under section 59. The entity must also ensure that all investments are conducted transparently and in the best interests of the Commonwealth. Breaches of the provisions outlined in the amendment authorisation could lead to various consequences. The PGPA Act provides for both civil and criminal penalties for non-compliance, although specific penalties are not detailed in the explanatory statement. Typically, civil penalties might include fines or the requirement to rectify the breach, while criminal penalties could involve more severe fines or imprisonment. The exact penalties would depend on the nature and severity of the breach, as well as any other relevant laws or regulations that apply. The amendment authorisation does not detail specific penalties but refers to the overarching framework provided by the PGPA Act.