Explanatory Statement
Telstra (Transition to Full Private Ownership) Act 2005
Designated Day Declaration 2006 (No. 1)
Issued by the authority of the Minister for Communications, Information Technology and the Arts.
For the purposes of the Telstra (Transition to Full Private Ownership) Act 2005 the designated day is the first day on which, in the opinion of the Minister for Communications, Information Technology and the Arts, a majority of the voting shares in Telstra are held by a person, or persons, other than the Commonwealth (see subsection 3(1) of that Act).
To provide regulatory and commercial certainty, the designated day is declared by written instrument. Subsection 3(5) of the Telstra (Transition to Full Private Ownership) Act 2005 provides that this instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA), but section 42 of the LIA does not apply to the instrument. The instrument is therefore required to be registered on the Federal Register of Legislative Instruments and tabled in both Houses of Parliament, but is not subject to Parliamentary disallowance.
On the designated day, Telstra ceased to be a Commonwealth controlled company and various Commonwealth Acts, such as the Freedom of Information Act 1982, the Ombudsman Act 1976 and the Administrative Decisions (Judicial Review) Act 1977 ceased to apply to Telstra and transitional employment and superannuation arrangements took effect in accordance with the Telstra (Transition to Full Private Ownership) Act 2005.
This day was the day that the Government transferred the Telstra shares that it has sold as part of the current T3 sale offer to the Telstra sale company that will hold these shares as trustee until they are fully paid for.
Following consultation with the Department of Finance and Administration, I have been advised that on 24 November 2006, the Government transferred to the Telstra sale company around 3.7 billion shares unconditionally and around 0.55 billion subject to an over-allocation option.
The Department of Finance and Administration has also advised that after allowing for the transfer of loyalty bonus shares associated with T3, the Government’s residual shareholding in Telstra is now around 2.1 billion shares (around 17% of total Telstra shares). This residual shareholding is expected to be transferred to the Future Fund.
Accordingly, I have declared that in my opinion, 24 November 2006 is the day on which a majority of the voting shares in Telstra Corporation Limited (Telstra) are held by a person or persons other than the Commonwealth and I have declared that day to be the designated day under subsection 3(1) of the Telstra (Transition to Full Private Ownership) Act 2005.