Regional Investment Corporation Operating Mandate (Amendment) Direction 2019

Administered by Department of Agriculture

Legislation au F2019L00434 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by Authority of the Minister for Agriculture and Water Resources and the Minister for Finance and the Public Service

 

Regional Investment Corporation Act 2018

 

Regional Investment Corporation Operating Mandate (Amendment) Direction 2019

 

Legislative Authority

 

The Regional Investment Corporation Act 2018 (the Act) establishes the Regional Investment Corporation (the Corporation). The Corporation’s functions are set out in section 8 of the Act and include administering, on behalf of the Commonwealth, financial assistance to States and Territories in relation to water infrastructure projects funded through the National Water Infrastructure Loan Fund (NWILF).

 

The Regional Investment Corporation Operating Mandate (Amendment) Direction 2019 (the Amendment Direction) is made under subsection 11(1) of the Act. Subsection 11(1) of the Act requires the responsible Ministers to give directions, by legislative instrument, to the Corporation about the performance of the Corporation’s functions.

 

On 6 June 2018, the responsible Ministers for the Corporation made the Regional Investment Corporation Operating Mandate Direction 2018 (the Operating Mandate). The Operating Mandate directs the Corporation in relation to the performance of the Corporation’s functions, including matters relating to the:

  • objectives the Corporation is to pursue in administering its programs,
  • expectations relating to the strategies and policies to be followed for the effective performance of the Corporation’s functions,
  • eligibility criteria for farm business loans and financial assistance to the States and Territories for water infrastructure projects, and
  • financial arrangements for the Corporation.

 

Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make an instrument of a legislative character, it includes a power to amend such an instrument.

 

Purpose

 

The Amendment Direction amends the Operating Mandate to provide for changes to the terms of the Commonwealth’s water infrastructure loans.

 

Background

 

The changes were announced in the MYEFO 2018–19. The adjustments to the lending arrangements for the $2 billion National Water Infrastructure Loan Facility will ensure an increase in the number of commercially viable projects that can access funding.

 

Impact and Effect

 

The Amendment Direction enables the Government to work with the State and Territory Governments to identify and co-fund the construction of new water infrastructure.

 

Consultation

 

The Department of Agriculture and Water Resources consulted with the Department of Infrastructure, Regional Development and Cities, the Regional Investment Corporation and the Department of Finance in drafting the Amendment Direction.

 

Details / Operation

 

Details of the Amendment Direction are set out in Attachment A.

 

The Amendment Direction is a legislative instrument for the purposes of the Legislation Act 2003.

 

The Amendment Direction is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A statement of compatibility is set out in Attachment B.

 

 

 


 

Attachment A

 

Details of the Regional Investment Corporation Operating Mandate (Amendment) Direction 2019

 

PART 1 – PRELIMINARY

 

Section 1 – Name

 

This section provides that the name of the instrument is the Regional Investment Corporation Operating Mandate (Amendment) Direction 2019.

 

Section 2 – Authority

 

This section provides that this instrument is made under subsection 11(1) of the Regional Investment Corporation Act 2018.

 

Section 3 – Commencement

 

This section provides for the Amendment Direction to commence on the day after registration. The section includes a note that provides that section 42 of the Legislation Act 2003 (which deals with the disallowance of legislative instruments) applies to the instrument. The note refers the reader to section 11(4) of the Regional Investment Corporation Act 2018.

 

Section 4 – Schedules

 

This section provides that the Schedule amends the Regional Investment Corporation Operating Mandate Direction 2018.

 

SCHEDULE – AMENDMENTS

 

Regional Investment Corporation Operating Mandate Direction 2018

 

Item 1: Schedule 2 (subparagraph (c)(ii) under the heading ‘Eligibility requirements’) omits the words “$50 million” and substitutes “$10 million”, to provide that the minimum loan amount funded under the NWILF will be $10 million.

 

Item 2: Schedule 2 (paragraph (d) under the heading ‘Eligibility requirements’) omits the existing paragraph (d) and replaces it to provide that funding for the construction of water infrastructure (which may include funding for final design and approval costs) is dependent on it being able to be commenced within 12 months of funding being agreed and all relevant Commonwealth and State regulatory and planning approvals being in place. Final design and approval costs are expected to only include the final detailed design and site approvals.

 

Item 3: Schedule 2 (paragraph (e) under the heading ‘Eligibility requirements’) omits the existing paragraph (e) and replaces it to provide that funding for the construction of water infrastructure will be dependent on the loan term being 30 years or less, which may include a construction period of up to a maximum of five years comprising either or both an interest only period; or a no repayment period, during which interest will be capitalised and become payable as part of the principal after the construction period.

 

Item 4: Schedule 2 (paragraph (a) under the heading ‘Mandatory assessment criteria’) omits the words “water infrastructure is significant and in the national interest” and substitutes “project will increase water security and supply through the construction of new water infrastructure or by materially enhancing existing water infrastructure” to provide that projects can encompass both on and off farm water infrastructure where it delivers public benefits through increasing water supply and security and support regional economic growth.


 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Regional Investment Corporation Operating Mandate (Amendment) Direction 2019

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

The purpose of this Legislative Instrument is to amend the Regional Investment Corporation Operating Mandate Direction 2018 to increase the water infrastructure projects funded through the National Water Infrastructure Loan Fund (NWILF) by providing financial assistance to States and Territories in the form of loans.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

The Hon. David Littleproud MP

Minister for Agriculture and Water Resources

 

Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service

 

 

 

Overview

The Regional Investment Corporation Act 2018 was enacted to establish the Regional Investment Corporation, which administers financial assistance to states and territories for water infrastructure projects. The Act addresses the gap in funding for water infrastructure projects that are commercially viable but may not otherwise attract private sector investment. This legislation was enacted by the Parliament of Australia to ensure that critical water infrastructure projects can be funded through the National Water Infrastructure Loan Fund (NWILF). The policy objective of the Act is to enhance water security and supply, thereby supporting regional economic growth. The Regional Investment Corporation Operating Mandate (Amendment) Direction 2019 amends the Operating Mandate Direction 2018 to adjust the terms of the Commonwealth’s water infrastructure loans, facilitating an increase in the number of commercially viable projects that can access funding. This legislative instrument was made under subsection 11(1) of the Act and is designed to enable the Government to collaborate with state and territory governments to identify and co-fund new water infrastructure projects. The changes announced in the Mid-Year Economic and Fiscal Outlook 2018–19 aim to improve the eligibility criteria and loan terms to make more projects feasible. The Department of Agriculture and Water Resources consulted with relevant departments in drafting the Amendment Direction, which is compatible with human rights as it does not engage any of the applicable rights or freedoms.

Scope and Application

The Regional Investment Corporation Operating Mandate (Amendment) Direction 2019, issued under the authority of the Regional Investment Corporation Act 2018, amends the operating mandate of the Regional Investment Corporation (RIC) to modify the terms and conditions for water infrastructure loans provided through the National Water Infrastructure Loan Fund (NWILF). This amendment applies to the RIC, an entity established under Commonwealth law, in its role of administering financial assistance to States and Territories for water infrastructure projects. The changes are intended to increase the number of commercially viable projects that can access funding by modifying eligibility criteria, such as lowering the minimum loan amount from $50 million to $10 million, and adjusting the timeframe for project commencement and loan terms. The amendment extends to any State or Territory Government entity that seeks to avail of these loans for water infrastructure projects, ensuring that the projects must be able to commence within 12 months and have a loan term of 30 years or less. This legislative instrument applies on a national level across Australia and is subject to the disallowance provisions under the Legislation Act 2003. The amendment does not specify any exclusions, exemptions, or thresholds beyond those outlined in the Direction itself. The Amendment Direction is compatible with human rights, as outlined in the Statement of Compatibility with Human Rights.

Key Provisions

The Regional Investment Corporation Operating Mandate (Amendment) Direction 2019 (Amendment Direction) amends the Regional Investment Corporation Operating Mandate Direction 2018, which governs the operations of the Regional Investment Corporation (RIC) under the Regional Investment Corporation Act 2018 (Act). Specifically, the Amendment Direction modifies the terms and conditions for financial assistance to states and territories in relation to water infrastructure projects funded through the National Water Infrastructure Loan Fund (NWILF) (Sections 1-4). The primary changes include reducing the minimum loan amount to $10 million, requiring projects to commence within 12 months of funding approval and relevant regulatory approvals being in place, limiting the loan term to 30 years, and broadening the scope of eligible projects to include those that increase water security and supply, regardless of whether they are on or off farm infrastructure (Schedule 2, Items 1-4). The Amendment Direction imposes several obligations on the RIC and the states and territories in relation to the administration of water infrastructure loans. The RIC must adhere to the revised eligibility criteria and assessment criteria set out in the Amendment Direction when considering applications for financial assistance (Schedule 2). States and territories must ensure that projects for which they seek funding under the NWILF meet the amended eligibility and assessment requirements, and that projects are able to commence within the specified timeframes (Schedule 2, Item 2). Failure to comply with the requirements of the Amendment Direction may have legal consequences for the RIC, states and territories. There are no explicit offences or penalties set out in the Amendment Direction itself. However, the Act under which the Amendment Direction is made provides for potential civil and criminal penalties in certain circumstances. For example, section 42 of the Act provides that a person who contravenes a direction given under section 11(1) of the Act (the provision under which the Amendment Direction is made) commits an offence and is liable to a penalty of up to 5,000 penalty units ($925,000) for a corporation and 1,000 penalty units ($185,000) for an individual. Additionally, section 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make an instrument of a legislative character, it includes a power to amend such an instrument, suggesting that failure to comply with the Amendment Direction may result in legal action being taken against the RIC, states or territories. The Amendment Direction is a legislative instrument for the purposes of the Legislation Act 2003 and is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A statement of compatibility is set out in Attachment B of the Explanatory Statement. The purpose of the Amendment Direction is to increase the number of commercially viable water infrastructure projects that can access funding through the NWILF, and to enable the Government to work with state and territory governments to identify and co-fund the construction of new water infrastructure.

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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.