1Short title
This Act is the Australian Business Securitisation Fund Act 2019.
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Bill homepage (APH)This Act is the Australian Business Securitisation Fund Act 2019.
Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information | ||
|---|---|---|
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this Act | The day after this Act receives the Royal Assent. | 6 April 2019 |
This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
The objects of this Act are to increase the availability, and reduce the cost, of credit provided to small and medium enterprises by the Commonwealth investing in debt securities in accordance with this Act.
This Act sets up the Australian Business Securitisation Fund.
The Fund consists of the Australian Business Securitisation Fund Special Account and the investments of the Fund.
The investments of the Fund must be debt securities that meet certain requirements.
The Minister is responsible for making investment decisions for the Fund, however, the Minister may delegate the power to make these decisions.
Investment decisions must be made in accordance with any directions given by the Minister.
In this Act:
Account means the Australian Business Securitisation Fund Special Account established by section 11.
amount of credit has the same meaning as in the National Credit Code.
authorised debt security: see subsection 12(4).
credit has the same meaning as in the National Credit Code.
debtor has the same meaning as in the National Credit Code.
eligible delegate: see subsection 19(2).
Finance Minister means the Minister who administers the Public Governance, Performance and Accountability Act 2013.
Fund means the Australian Business Securitisation Fund established by section 10.
investment means any mode of application of money or financial assets for the purpose of gaining a return (whether by way of income, capital gain or any other form of return).
Investment Mandate has the meaning given by subsection 13(1).
investment of the Fund means an investment that, under section 12, is taken to be an investment of the Fund.
listed entity has the same meaning as in the Public Governance, Performance and Accountability Act 2013.
National Credit Code has the same meaning as in the National Consumer Credit Protection Act 2009.
non‑corporate Commonwealth entity has the same meaning as in the Public Governance, Performance and Accountability Act 2013.
official has the same meaning as in the Public Governance, Performance and Accountability Act 2013.
rules means rules made under section 22.
This Act binds the Crown in each of its capacities.
This Act does not make the Crown liable to be prosecuted for an offence.
This Act extends to every external Territory.
This Act extends to acts, omissions, matters and things outside Australia.
This Part sets up the Australian Business Securitisation Fund.
The Fund consists of the Australian Business Securitisation Fund Special Account and the investments of the Fund.
The investments of the Fund must be debt securities that meet certain requirements and the investments must be made in accordance with any directions given by the Minister.
A total of $2 billion must be credited to the Account, with an initial amount of $250 million credited on 1 July 2019 and additional amounts credited on each 1 July for the following 4 years. The Minister may also, with the agreement of the Finance Minister, determine that additional amounts be credited to the Fund.
Amounts may be debited from the Account for the purposes of the Account, which include paying the costs of making investments. The Minister may also determine that the balance of the Account be reduced.
The Australian Business Securitisation Fund is established by this section.
The Australian Business Securitisation Fund consists of:
the Australian Business Securitisation Fund Special Account; and
the investments of the Fund.
The Australian Business Securitisation Fund Special Account is established by this section.
The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.
An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.
The Minister may, on behalf of the Commonwealth, invest amounts standing to the credit of the Account in any authorised debt security.
Investments under subsection (1) are taken to be investments of the Fund.
At any time before an investment of the Fund matures, the Minister may, on behalf of the Commonwealth, authorise the re‑investment of the proceeds upon maturity in an authorised debt security with the same entity. The new investment is taken to be an investment of the Fund.
An authorised debt security is a debt security that:
is issued by:
a trustee of a trust; or
a body corporate that is a special purpose vehicle; and
is expressed in Australian dollars; and
relates to one or more amounts of credit provided (whether secured or unsecured) to one or more debtors where each such amount of credit:
is provided wholly or predominantly for business purposes; and
is less than $5 million or, if the rules prescribe another amount of money, is less than that amount; and
complies with any other requirements or restrictions prescribed by the rules; and
complies with any other requirements or restrictions prescribed by the rules.
Section 58 of the Public Governance, Performance and Accountability Act 2013 (which deals with investment by the Commonwealth) does not apply to an investment of the Fund.
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