Commonwealth Consolidated Acts Commonwealth Consolidated ActsNote: See section 13.
The following is a simplified outline of this Schedule:
• Amounts may be debited from the Fund Account in accordance with the purposes of the Fund Account.
• The main purpose of the Fund Account is to discharge unfunded superannuation liabilities from whichever is the earlier of:
(a) the time when the balance of the Fund is greater than or equal to the target asset level;
(b) 1 July 2020.
Note: The target asset level is specified in a declaration (a target asset level declaration ) given by the designated actuary under Schedule 3. The target asset level represents the amount that is expected to offset the present value of projected unfunded superannuation liabilities.
2 Purposes of the Fund Account
Superannuation purposes and purposes related exclusively to the Fund
(1) Each of the following is a purpose of the Fund Account:
(a) discharging, in whole or in part, an unfunded superannuation liability that becomes payable in a financial year, where:
(i) the financial year ends before 1 July 2020; and
(ii) a target asset level declaration is in force for the financial year; and
(iii) the balance of the Fund, as at the start of the financial year, is not less than the target asset level specified in the target asset level declaration;
(b) discharging, in whole or in part, an unfunded superannuation liability that becomes payable in a financial year beginning on or after 1 July 2020;
(c) paying the costs of, or incidental to, the acquisition of financial assets under section 16;
(d) paying expenses of an investment of the Fund;
(e) paying the costs of, or incidental to, the acquisition of derivatives under section 25;
(f) paying or discharging the costs, expenses and other obligations incurred by the Board under a contract between the Board and an investment manager engaged under subsection 28(1);
(g) paying or discharging the costs, expenses and other obligations incurred in connection with the establishment, maintenance or operation of a bank account of the Board, where the bank account relates exclusively to the Fund;
(h) paying a premium in respect of a contract of insurance entered into by the Board exclusively in connection with the Fund;
(i) paying or discharging any other costs, expenses, obligations or liabilities incurred by the Board exclusively in connection with the Fund.
Note 1: See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts).
Note 2: A target asset level declaration is given by the designated actuary under Schedule 3.
Purposes not related exclusively to the Fund
(2) Each of the following is a purpose of the Fund Account:
(a) paying or discharging the costs, expenses and other obligations incurred in connection with the establishment, maintenance or operation of a bank account of the Board, where those costs, expenses or obligations are not covered by:
(i) paragraph (1)(g); or
(ia) paragraph 16(e) of the Future Drought Fund Act 2019 ; or
(vi) paragraph 15(e) of the DisabilityCare Australia Fund Act 2013 ; or
(via) paragraph 15(e) of the Disaster Ready Fund Act 2019 ; or
(vib) paragraph 13(e) of the Housing Australia Future Fund Act 2023 ; or
(vii) paragraph 18(e) of the Medical Research Future Fund Act 2015 ; or
(viii) paragraph 15(e) of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018 ;
(b) paying a premium in respect of a contract of insurance entered into by the Board, where the premium is not covered by:
(i) paragraph (1)(h); or
(ia) paragraph 16(f) of the Future Drought Fund Act 2019 ; or
(vi) paragraph 15(f) of the DisabilityCare Australia Fund Act 2013 ; or
(via) paragraph 15(f) of the Disaster Ready Fund Act 2019 ; or
(vib) paragraph 13(f) of the Housing Australia Future Fund Act 2023 ; or
(vii) paragraph 18(f) of the Medical Research Future Fund Act 2015 ; or
(viii) paragraph 15(f) of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018 ;
(c) paying or discharging any other costs, expenses, obligations or liabilities incurred by the Board, where the costs, expenses, obligations or liabilities are not covered by:
(i) a paragraph of subclause (1); or
(ia) a paragraph of section 16 of the Future Drought Fund Act 2019 ; or
(vi) a paragraph of section 15 of the DisabilityCare Australia Fund Act 2013 ; or
(via) a paragraph of section 15 of the Disaster Ready Fund Act 2019 ; or
(vib) a paragraph of section 13 of the Housing Australia Future Fund Act 2023 ; or
(vii) a paragraph of section 18 of the Medical Research Future Fund Act 2015 ; or
(viii) a paragraph of section 15 of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018 ;
(d) paying remuneration and allowances of Board members;
(e) paying remuneration, and other employment - related costs and expenses, in respect of members of the staff of the Agency;
(f) paying or discharging the costs, expenses and other obligations incurred by the Commonwealth under a contract entered into under section 78 or 82;
(g) paying or discharging the costs, expenses and other obligations incurred by the Commonwealth in connection with the establishment or operation of the Agency.
Note: See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts).
3 Board must ensure that there is sufficient money to cover the main purposes of the Fund Account
The Board must take all reasonable steps to ensure that, during a financial year to which paragraph 2(1)(a) or (b) of this Schedule applies, the amount of money standing to the credit of the Fund Account is sufficient to cover the purpose mentioned in that paragraph.
Note: This may require the Board to realise an investment of the Fund in accordance with section 17.