Financial Framework Legislation Amendment Act (No. 2) 2013

No. 53, 2013

An Act to amend the law relating to finance, and for other purposes

Contents

1 Short title 1

2 Commencement 2

3 Schedule(s) 2

Schedule 1—Amendments of Acts 4

Part 1—Commonwealth companies 4

Administrative Decisions (Judicial Review) Act 1977 4

Financial Management and Accountability Act 1997 4

Part 2—Australian Government Disaster Recovery Payments 7

Social Security Act 1991 7

Part 3—Judges’ pensions 12

Judges’ Pensions Act 1968 12

Part 4—Remuneration Tribunal 18

Remuneration Tribunal Act 1973 18

Schedule 2—Amendments of regulations 25

Financial Management and Accountability Regulations 1997 25

Schedule 3—Loss relief relating to the transfer of assets from the MSB Fund to the ARIA Investments Trust 29

Financial Framework Legislation Amendment Act (No. 2) 2013

No. 53, 2013

An Act to amend the law relating to finance, and for other purposes

[Assented to 28 May 2013]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Financial Framework Legislation Amendment Act (No. 2) 2013.

2 Commencement 1

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	Commencement information	Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.	28 May 2013
2. Schedule 1, Parts 1 and 2	The day after this Act receives the Royal Assent.	29 May 2013
3. Schedule 1, Part 3	The later of: (a) the day after this Act receives the Royal Assent; and (b) the day Schedule 1 to the Judges and Governors-General Legislation Amendment (Family Law) Act 2012 commences.	29 May 2013 (paragraph (a) applies)
4. Schedule 1, Part 4	The day after this Act receives the Royal Assent.	29 May 2013
5. Schedules 2 and 3	The day after this Act receives the Royal Assent.	29 May 2013

Note: This table relates only to the provisions of this Act as originally enacted.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.

3 Schedule(s) 1

Each Act, and each set of regulations, that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

The amendment of any regulation under subsection (1) does not prevent the regulation, as so amended, from being amended or repealed by the Governor-General.

Amendments of Acts

Administrative Decisions (Judicial Review) Act 1977

1 After paragraph (he) of Schedule 1

Insert:

Financial Management and Accountability Act 1997

hea

(hea) decisions under Financial Management and Accountability Act 1997;section 39B of the

2 At the end of Part 5

Add:

39B Supplementary powers to form companies etc.

Formation of company etc.

the Commonwealth has power to:

as the case may be.

Acquisition of shares in company etc.

in circumstances that would result in the company becoming a Commonwealth company; and

the Commonwealth has power to:

as the case may be, in circumstances that would result in the company becoming a Commonwealth company.

Finance Minister’s power

Note: For delegation by the Finance Minister, see section 62.

Executive power of the Commonwealth

Definitions

acquire includes acquire by subscription.

Commonwealth company has the same meaning as in the Commonwealth Authorities and Companies Act 1997.

If:

apart from this subsection, the Commonwealth does not have power to:

form a company; or

participate in the formation of a company; and

if the company were to come into existence, the company would be a company:

that is specified in the regulations; and

whose objects or proposed activities are specified in the regulations;

form the company; or

participate in the formation of the company;

If:

apart from this subsection, the Commonwealth does not have power to:

acquire shares in a company; or

become a member of a company;

both:

the company is specified in the regulations; and

the company’s objects or proposed activities are specified in the regulations;

acquire shares in the company; or

become a member of the company;

A power conferred on the Commonwealth by subsection (1) or (2) may be exercised on behalf of the Commonwealth by the Finance Minister.

This section does not, by implication, limit the executive power of the Commonwealth.

In this section:

3 At the end of section 62

Add:

The Finance Minister must not delegate any of the Finance Minister’s powers under section 39B to an official unless the official is a Chief Executive.

4 Transitional—pre-commencement formation of companies etc. 1

This item applies to action taken, or purportedly taken, by the Commonwealth before the commencement of this item if, assuming that:

both:

(i) Financial Management and Accountability Act 1997 as amended by this Schedule; andsection 39B of the

(ii) the amendments of the Financial Management and Accountability Regulations 1997 made by Schedule 2 to this Act;

had been in force when the action was taken or purportedly taken; and

the action would have been authorised by subsection 39B(1) or (2) of the Financial Management and Accountability Act 1997 as amended by this Schedule.

Social Security Act 1991

(b) if the name of a company changed after the action was taken or purportedly taken—a reference in Schedule 1B to the Financial Management and Accountability Regulations 1997 to the company under its new name were read as a reference to the company under its former name;

(2) The action has, and is taken to have had, effect, after the commencement of this item, as if it had been taken under subsection 39B(1) or (2), as the case may be, of the Financial Management and Accountability Act 1997 as amended by this Schedule.

5 At the end of Part 2.24

Add:

1061PAAA Recoverable payments 1

(1) If, apart from this subsection, the Commonwealth does not have power under the social security law to pay an amount (the relevant amount) to a person (the recipient) purportedly as an Australian Government Disaster Recovery Payment, then the Commonwealth may pay the relevant amount to the recipient.

Recovery

Note: See also Financial Management and Accountability Act 1997 (duty to pursue recovery of a debt).section 47 of the

If a payment is made under subsection (1) to the recipient, the relevant amount:

is a debt due to the Commonwealth by the recipient; and

may be recovered by the Secretary, on behalf of the Commonwealth, in a court of competent jurisdiction.

1061PAAB Recoverable death payments 1

(1) If, apart from this subsection, the Commonwealth does not have power under the social security law to pay an amount (the relevant amount) in any of the following circumstances:

the relevant amount is deposited to an account kept in the name of a deceased person;

the relevant amount is deposited to an account kept in the names of a deceased person and another person;

the relevant amount is paid by way of a cheque made out to a deceased person;

the Commonwealth may pay the relevant amount in the circumstances mentioned in paragraph (a), (b) or (c), so long as:

Note: For Department official, see section 1061PAAE.

Recovery

Note: See also Financial Management and Accountability Act 1997 (duty to pursue recovery of a debt).section 47 of the

on the last day on which changes could reasonably be made to the payment of the relevant amount, no Department official knew that the deceased person had died; and

apart from this subsection, the relevant amount would have been payable as an Australian Government Disaster Recovery Payment to the deceased person if the deceased person had not died.

If a payment is made under subsection (1), the relevant amount is taken to have been paid to the deceased person’s estate.

If a payment is made under subsection (1), the relevant amount:

is a debt due to the Commonwealth by the legal personal representative of the deceased person; and

may be recovered by the Secretary, on behalf of the Commonwealth, in a court of competent jurisdiction.

1061PAAC Reports about recoverable payments and recoverable death payments 1

During the applicable publication period for a reporting period, the Secretary must cause to be published, in such manner as the Secretary thinks fit, a report that sets out:

both:

the number of payments made under subsection 1061PAAA(1) during the reporting period; and

the total amount of those payments; and

both:

the number of payments made under subsection 1061PAAB(1) during the reporting period; and

the total amount of those payments.

However, a report is not required if:

the number mentioned in subparagraph (1)(a)(i) is zero; and

the number mentioned in subparagraph (1)(b)(i) is zero.

Deferred reporting

Note: For Department official, see section 1061PAAE.

the payment is subject to a deferred reporting obligation in relation to the later reporting period.

Note: For Department official, see section 1061PAAE.

Reporting period

Applicable publication period

beginning immediately after the end of the reporting period.

Paragraph (1)(a) of this section does not require a report to deal with a payment unless, before the preparation of the report, a Department official was aware the payment was made under subsection 1061PAAA(1).

Paragraph (1)(b) of this section does not require a report to deal with a payment unless, before the preparation of the report, a Department official was aware the payment was made under subsection 1061PAAB(1).

For the purposes of this section, if:

a payment was made under subsection 1061PAAA(1) or 1061PAAB(1) in a reporting period; and

either:

because of subsection (3) of this section, paragraph (1)(a) of this section did not require a report to deal with the payment; or

because of subsection (4) of this section, paragraph (1)(b) of this section did not require a report to deal with the payment; and

during a later reporting period, a Department official becomes aware that the payment was made under subsection 1061PAAA(1) or 1061PAAB(1), as the case may be;

If one or more payments made under subsection 1061PAAA(1) during a reporting period are subject to a deferred reporting obligation in relation to a later reporting period, the Secretary must, during the applicable publication period for the later reporting period:

prepare a report that sets out:

the number of those payments; and

the total amount of those payments; and

iii

the reporting period during which the payments were made; and

if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

if paragraph (b) does not apply—publish, in such manner as the Secretary thinks fit, the paragraph (a) report.

If one or more payments made under subsection 1061PAAB(1) during a reporting period are subject to a deferred reporting obligation in relation to a later reporting period, the Secretary must, during the applicable publication period for the later reporting period:

prepare a report that sets out:

the number of those payments; and

the total amount of those payments; and

iii

the reporting period during which the payments were made; and

if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

if paragraph (b) does not apply—publish, in such manner as the Secretary thinks fit, the paragraph (a) report.

(8) For the purposes of this section, a reporting period is:

a financial year; or

if a shorter recurring period is prescribed in an instrument under subsection (9)—that period.

The Minister may, by legislative instrument, prescribe a recurring period for the purposes of paragraph (8)(b).

(10) For the purposes of this section, the applicable publication period for a reporting period is the period of:

4 months; or

if a lesser number of months is prescribed, in relation to the reporting period, in an instrument under subsection (11)—that number of months;

The Minister may, by legislative instrument, prescribe a number of months, in relation to a reporting period, for the purposes of paragraph (10)(b).

1061PAAD Review of decisions

Part 4 of the Social Security (Administration) Act 1999 does not apply to a decision under this Division.

1061PAAE Department official

For the purposes of this Division, Department official means an official (within the meaning of the Financial Management and Accountability Act 1997):

Judges’ Pensions Act 1968

who:

is in the Department or is part of the Department; or

(ii) is a Departmental employee (within the meaning of the Human Services (Centrelink) Act 1997); and

whose duties consist of, or include, matters relating to Australian Government Disaster Recovery Payments.

6 After section 20

Insert:

20A Recoverable payments 1

(1) If, apart from this subsection, the Commonwealth does not have power under this Act to pay an amount (the relevant amount) to a person (the recipient) purportedly as a benefit, then the Commonwealth may pay the relevant amount to the recipient.

Recovery

Note: See also Financial Management and Accountability Act 1997 (duty to pursue recovery of a debt).section 47 of the

Appropriation

Benefit

If a payment is made under subsection (1) to the recipient, the relevant amount:

is a debt due to the Commonwealth by the recipient; and

may be recovered by the Secretary of the Department, on behalf of the Commonwealth, in a court of competent jurisdiction.

For the purposes of subsection 12A(5), if a payment under subsection (1) of this section relates to a benefit under subsection 12A(2), the payment is taken to be a benefit under subsection 12A(2).

For the purposes of section 14 (other than paragraph (a) of that section), if a payment under subsection (1) of this section relates to a pension under this Act, the payment is taken to be a pension under this Act.

For the purposes of subsection 17AB(7), if a payment under subsection (1) of this section relates to an amount under subsection 17AB(6), the payment is taken to be an amount under subsection 17AB(6).

(6) For the purposes of this section, benefit means:

a pension under this Act; or

a benefit under subsection 12A(2); or

an amount under subsection 17AB(6).

20B Recoverable death payments 1

(1) If, apart from this subsection, the Commonwealth does not have power under this Act to pay an amount (the relevant amount) in any of the following circumstances:

the relevant amount is deposited to an account kept in the name of a deceased person;

the relevant amount is deposited to an account kept in the names of a deceased person and another person;

the relevant amount is paid by way of a cheque made out to a deceased person;

the Commonwealth may pay the relevant amount in the circumstances mentioned in paragraph (a), (b) or (c), so long as:

Recovery

Note: See also Financial Management and Accountability Act 1997 (duty to pursue recovery of a debt).section 47 of the

Appropriation

Benefit

on the last day on which changes could reasonably be made to the payment of the relevant amount, the Secretary of the Department did not know that the deceased person had died; and

apart from this subsection, the relevant amount would have been payable as a benefit to the deceased person if the deceased person had not died.

If a payment is made under subsection (1), the relevant amount is taken to have been paid to the deceased person’s estate.

If a payment is made under subsection (1), the relevant amount:

is a debt due to the Commonwealth by the legal personal representative of the deceased person; and

may be recovered by the Secretary of the Department, on behalf of the Commonwealth, in a court of competent jurisdiction.

For the purposes of subsection 12A(5), if a payment under subsection (1) of this section relates to a benefit under subsection 12A(2), the payment is taken to be a benefit under subsection 12A(2).

For the purposes of subsection 17AB(7), if a payment under subsection (1) of this section relates to an amount under subsection 17AB(6), the payment is taken to be an amount under subsection 17AB(6).

(7) For the purposes of this section, benefit means:

a pension under this Act; or

a benefit under subsection 12A(2); or

an amount under subsection 17AB(6).

20C Reports about recoverable payments and recoverable death payments 1

During the applicable publication period for a reporting period, the Secretary of the Department must cause to be published, in such manner as the Secretary of the Department thinks fit, a report that sets out:

both:

the number of payments made under subsection 20A(1) during the reporting period; and

the total amount of those payments; and

both:

the number of payments made under subsection 20B(1) during the reporting period; and

the total amount of those payments.

However, a report is not required if:

the number mentioned in subparagraph (1)(a)(i) is zero; and

the number mentioned in subparagraph (1)(b)(i) is zero.

Deferred reporting

the payment is subject to a deferred reporting obligation in relation to the later reporting period.

Reporting period

Applicable publication period

beginning immediately after the end of the reporting period.

Designated Department official

Remuneration Tribunal Act 1973

Paragraph (1)(a) of this section does not require a report to deal with a payment unless, before the preparation of the report, a designated Department official was aware the payment was made under subsection 20A(1).

Paragraph (1)(b) of this section does not require a report to deal with a payment unless, before the preparation of the report, a designated Department official was aware the payment was made under subsection 20B(1).

For the purposes of this section, if:

a payment was made under subsection 20A(1) or 20B(1) in a reporting period; and

either:

because of subsection (3) of this section, paragraph (1)(a) of this section did not require a report to deal with the payment; or

because of subsection (4) of this section, paragraph (1)(b) of this section did not require a report to deal with the payment; and

during a later reporting period, a designated Department official becomes aware that the payment was made under subsection 20A(1) or 20B(1), as the case may be;

If one or more payments made under subsection 20A(1) during a reporting period are subject to a deferred reporting obligation in relation to a later reporting period, the Secretary of the Department must, during the applicable publication period for the later reporting period:

prepare a report that sets out:

the number of those payments; and

the total amount of those payments; and

iii

the reporting period during which the payments were made; and

if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

if paragraph (b) does not apply—publish, in such manner as the Secretary of the Department thinks fit, the paragraph (a) report.

If one or more payments made under subsection 20B(1) during a reporting period are subject to a deferred reporting obligation in relation to a later reporting period, the Secretary of the Department must, during the applicable publication period for the later reporting period:

prepare a report that sets out:

the number of those payments; and

the total amount of those payments; and

iii

the reporting period during which the payments were made; and

if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

if paragraph (b) does not apply—publish, in such manner as the Secretary of the Department thinks fit, the paragraph (a) report.

(8) For the purposes of this section, a reporting period is:

a financial year; or

if a shorter recurring period is prescribed in an instrument under subsection (9)—that period.

The Minister may, by legislative instrument, prescribe a recurring period for the purposes of paragraph (8)(b).

(10) For the purposes of this section, the applicable publication period for a reporting period is the period of:

4 months; or

if a lesser number of months is prescribed, in relation to the reporting period, in an instrument under subsection (11)—that number of months;

The Minister may, by legislative instrument, prescribe a number of months, in relation to a reporting period, for the purposes of paragraph (10)(b).

(12) For the purposes of this section, designated Department official means an official (within the meaning of the Financial Management and Accountability Act 1997) who is in the Department or is part of the Department.

7 Before section 17

Insert:

16A Recoverable payments 1

Recovery

Note: See also Financial Management and Accountability Act 1997 (duty to pursue recovery of a debt).section 47 of the

then:

may, if the Chief Executive so directs, be recovered by deduction from that benefit, unless the recipient is a Justice or Judge of a federal court.

Note: See also Financial Management and Accountability Act 1997 (duty to pursue recovery of a debt).section 47 of the

Appropriation

Benefit

Relevant agency

If a payment is made under subsection (1) to the recipient, the relevant amount:

is a debt due to the Commonwealth by the recipient; and

(b) may be recovered by the Chief Executive (as determined under the Financial Management and Accountability Act 1997) of the relevant agency, on behalf of the Commonwealth, in a court of competent jurisdiction.

If:

a payment is made under subsection (1) to the recipient; and

the recipient is receiving, or is entitled to receive, a benefit;

the relevant amount; or

(d) such part of the relevant amount as the Chief Executive (as determined under the Financial Management and Accountability Act 1997) of the relevant agency determines;

For the purposes of subsection 7(13), if a payment under subsection (1) of this section relates to remuneration (including salary) or an allowance under subsection 7(9), the payment is taken to be remuneration or an allowance under subsection 7(9).

For the purposes of subsection 7(13), if a payment under subsection (1) of this section relates to reimbursement under subsection 7(10), the payment is taken to be reimbursement under subsection 7(10).

(6) For the purposes of this section, benefit means:

remuneration (including salary) or an allowance under subsection 7(9); or

a reimbursement under subsection 7(10).

(7) For the purposes of this section, the relevant agency, in relation to a recovery under this section of the whole or part of a relevant amount, means:

(a) the Agency (as defined by Financial Management and Accountability Act 1997) that paid the relevant amount under subsection (1) on behalf of the Commonwealth; orsection 5 of the

if a different Agency is prescribed in an instrument under subsection (8)—the Agency.

(8) The Minister may, by legislative instrument, prescribe an Agency (as defined by Financial Management and Accountability Act 1997) for the purposes of paragraph (7)(b).section 5 of the

16B Recoverable death payments 1

(1) If, apart from this subsection, the Commonwealth does not have power under this Act to pay an amount (the relevant amount) in any of the following circumstances:

the relevant amount is deposited to an account kept in the name of a deceased person;

the relevant amount is deposited to an account kept in the names of a deceased person and another person;

the relevant amount is paid by way of a cheque made out to a deceased person;

the Commonwealth may pay the relevant amount in the circumstances mentioned in paragraph (a), (b) or (c), so long as:

Recovery

Note: See also Financial Management and Accountability Act 1997 (duty to pursue recovery of a debt).section 47 of the

Appropriation

Benefit

Relevant agency

(d) on the last day on which changes could reasonably be made to the payment of the relevant amount, the Chief Executive (as determined under the Financial Management and Accountability Act 1997) of the relevant agency did not know that the deceased person had died; and

apart from this subsection, the relevant amount would have been payable as a benefit to the deceased person if the deceased person had not died.

If a payment is made under subsection (1), the relevant amount is taken to have been paid to the deceased person’s estate.

If a payment is made under subsection (1), the relevant amount:

is a debt due to the Commonwealth by the legal personal representative of the deceased person; and

(6) For the purposes of this section, benefit means:

remuneration (including salary) or an allowance under subsection 7(9); or

a reimbursement under subsection 7(10).

(7) For the purposes of this section, the relevant agency, in relation to a payment or recovery under this section of the whole or part of a relevant amount, means:

(a) the Agency (as defined by Financial Management and Accountability Act 1997) that paid the relevant amount under subsection (1) on behalf of the Commonwealth; orsection 5 of the

if a different Agency is prescribed in an instrument under subsection (8)—the Agency.

(8) The Minister may, by legislative instrument, prescribe an Agency (as defined by Financial Management and Accountability Act 1997) for the purposes of paragraph (7)(b).section 5 of the

16C Reports about recoverable payments and recoverable death payments 1

(1) During the applicable publication period for a reporting period, the Chief Executive (as determined under the Financial Management and Accountability Act 1997) of the relevant agency must cause to be published, in such manner as the Chief Executive thinks fit, a report that sets out:

both:

the number of payments made under subsection 16A(1) during the reporting period; and

the total amount of those payments; and

both:

the number of payments made under subsection 16B(1) during the reporting period; and

the total amount of those payments.

However, a report is not required if:

the number mentioned in subparagraph (1)(a)(i) is zero; and

the number mentioned in subparagraph (1)(b)(i) is zero.

Deferred reporting

the payment is subject to a deferred reporting obligation in relation to the later reporting period.

Reporting period

Applicable publication period

beginning immediately after the end of the reporting period.

Relevant agency

(3) Paragraph (1)(a) of this section does not require a report to deal with a payment unless before the preparation of the report, an official (as determined under the Financial Management and Accountability Act 1997) of the relevant agency was aware the payment was made under subsection 16A(1).

(4) Paragraph (1)(b) of this section does not require a report to deal with a payment unless before the preparation of the report, an official (as determined under the Financial Management and Accountability Act 1997) of the relevant agency was aware the payment was made under subsection 16B(1).

For the purposes of this section, if:

a payment was made under subsection 16A(1) or 16B(1) in a reporting period; and

either:

because of subsection (3) of this section, paragraph (1)(a) of this section did not require a report to deal with the payment; or

because of subsection (4) of this section, paragraph (1)(b) of this section did not require a report to deal with the payment; and

(c) during a later reporting period, an official (as determined under the Financial Management and Accountability Act 1997) of the relevant agency becomes aware that the payment was made under subsection 16A(1) or 16B(1), as the case may be;

If one or more payments made under subsection 16A(1) during a reporting period are subject to a deferred reporting obligation in relation to a later reporting period, the Chief Executive of the relevant agency must, during the applicable publication period for the later reporting period:

prepare a report that sets out:

the number of those payments; and

the total amount of those payments; and

iii

the reporting period during which the payments were made; and

if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

if paragraph (b) does not apply—publish, in such manner as the Chief Executive thinks fit, the paragraph (a) report.

If one or more payments made under subsection 16B(1) during a reporting period are subject to a deferred reporting obligation in relation to a later reporting period, the Chief Executive of the relevant agency must, during the applicable publication period for the later reporting period:

prepare a report that sets out:

the number of those payments; and

the total amount of those payments; and

iii

the reporting period during which the payments were made; and

if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

if paragraph (b) does not apply—publish, in such manner as the Chief Executive thinks fit, the paragraph (a) report.

(8) For the purposes of this section, a reporting period is:

a financial year; or

if a shorter recurring period is prescribed in an instrument under subsection (9)—that period.

The Minister may, by legislative instrument, prescribe a recurring period for the purposes of paragraph (8)(b).

(10) For the purposes of this section, the applicable publication period for a reporting period is the period of:

4 months; or

if a lesser number of months is prescribed, in relation to the reporting period, in an instrument under subsection (11)—that number of months;

The Minister may, by legislative instrument, prescribe a number of months, in relation to a reporting period, for the purposes of paragraph (10)(b).

(12) For the purposes of this section, the relevant agency means:

(a) the Agency (as defined by Financial Management and Accountability Act 1997) that is responsible for making payments under subsection 16A(1) or 16B(1) on behalf of the Commonwealth; orsection 5 of the

if a different Agency is prescribed in an instrument under subsection (13)—the Agency.

(13) The Minister may, by legislative instrument, prescribe an Agency (as defined by Financial Management and Accountability Act 1997) for the purposes of paragraph (12)(b).section 5 of the

Amendments of regulations

Financial Management and Accountability Regulations 1997

1 After regulation 22AA

Insert:

22AB Supplementary powers to form companies etc. (Act s39B) 1

For subparagraphs 39B(1)(b)(i) and (2)(b)(i) of the Act, each item of Schedule 1B specifies a company.

For subparagraphs 39B(1)(b)(ii) and (2)(b)(ii) of the Act, each item of Schedule 1B specifies objects or proposed activities of the company specified in the item.

2 After Schedule 1A

Insert:

B—Companies and objects or proposed activities

Note: See regulation 22AB.

Loss relief relating to the transfer of assets from the MSB Fund to the ARIA Investments Trust 1 Loss relief relating to the transfer of assets from the MSB Fund to the ARIA Investments Trust

Object

Transfer of net capital loss

Effect of transferring a net capital loss

Interpretation

Definition

MSB Fund has the same meaning as Fund has in the Military Superannuation and Benefits Act 1991.

[Minister’s second reading speech made in—

House of Representatives on 13 March 2013

Senate on 20 March 2013]

(53/13)

The object of this item is to provide for loss relief relating to the transfer of assets from the MSB Fund to the ARIA Investments Trust.

Each of the following is transferred from the MSB Fund to the ARIA Investments Trust:

(a) any of the MSB Fund’s net capital losses for income years earlier than the 2011-12 income year, to the extent that the loss was not utilised before the end of 11 May 2012 (an earlier year net capital loss);

(b) a net capital loss the MSB Fund would have made for the 2011-12 income year if it were assumed that the income year had ended at the end of 11 May 2012 (a transfer year net capital loss).

To the extent that an earlier year net capital loss is transferred to the ARIA Investments Trust:

the MSB Fund is taken not to have made the loss for that earlier income year; and

an amount equal to the transferred amount is taken to be a capital loss made by the ARIA Investments Trust for the 2011-12 income year.

To the extent that a transfer year net capital loss is transferred to the ARIA Investments Trust:

the sum of the MSB Fund’s capital losses for the transfer year is reduced by an amount equal to the transferred amount; and

an amount equal to the transferred amount is taken to be a capital loss made by the ARIA Investments Trust for the 2011-12 income year.

(5) An expression used in this item and in the Income Tax Assessment Act 1997 has the same meaning in this item as it has in that Act.

In this item: