Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2016-2017-2018
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
PARLIAMENTARY JOINT COMMITTEE ON THE AUSTRALIA FUND BILL 2018
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Burston)
PARLIAMENTARY JOINT COMMITTEE ON THE AUSTRALIA FUND BILL 2018
OUTLINE
The purpose of this bill is to establish a Joint Parliamentary Committee to investigate
establishing an Australia Fund. Such a fund would be designed to assist in the support and
reconstruction of Australian rural and manufacturing industries in times of crisis, including
natural disasters (such as drought, floods and bushfires) or in cases of a world financial crisis
or unfair market intervention or manipulation.
It is envisaged that the Australia Fund would have the ability, on the basis of an assessment
of the industry and/or businesses, to provide emergency and ongoing drought/flood/bushfire
relief, loan money to businesses, act as a guarantor for loans, capitalise or waive interest,
purchase existing bank loans, and assume control of relevant property of the business for a
specified time. In this way, the Fund would be designed to enable businesses to continue
operations to earn revenue, employ workers and pay taxes, rather than be prematurely wound
up, and support communities affected by natural disasters.
It would also provide funds for industry and/or company restructuring and the acquisition of
new technologies to make businesses more economically viable and internationally
competitive.
As part of its investigation as to the need for the Fund, it is intended that the Committee
would undertake hearings in all capital cities and major rural centres and specifically examine
the impact on rural Australia of ongoing drought and world market price fluctuations for
primary industry produce.
The Committee's terms of reference would also include reviewing existing bankruptcy and
insolvency laws with the aim of introducing legislation designed to assist companies to trade
through difficult times, rather than be closed down. The existing taxation laws relating to
bankruptcy would also be reviewed. The possible introduction of the equivalent of the United
States Chapter 11 provisions would also be investigated.
Administrative support to the Committee could be provided by the House and/or Senate
Departments.
At the completion of its inquiry the Committee would table before Parliament a detailed
report of its findings and recommendations.
FINANCIAL IMPACT
The bill will have no financial impact.
1
NOTES ON CLAUSES
Part 1--Preliminary
Clause 1: Short title
1. Clause 1 provides for the Act to be called Parliamentary Joint Committee on the
Australia Fund Act 2018.
Clause 2: Commencement
2. Clause 2 provides for the Act to commence the day after it receives the Royal Assent.
Clause 3: Simplified outline of this Act
3. Clause 3 sets out a simplified outline of the Act, which notes that the Act establishes
the Parliamentary Joint Committee on the Australia Fund, and that the Committee is
to investigate whether a body, to be known as the Australia Fund, should be
established, and the appropriateness.
Clause 4: Definitions
4. Clause 4 sets out definitions used in the Act.
Part 2--Parliamentary Joint Committee on the Australia Fund
Division 1--Establishment
Clause 5: Parliamentary Joint Committee on the Australia Fund
5. Clause 5 provides for the establishment of the Committee.
Clause 6: Nomination of Committee members
6. Clause 6 sets out the process for the nomination of committee members.
Clause 7: Ceasing to be a Committee member
7. Clause 7 outlines the process for the ceasing of Committee membership.
Division 2--Functions and powers of the Committee
Clause 8: Functions of the Committee
8. Clause 8 sets out the functions of the Committee - including investigation into
whether a body, to be known as the Australia Fund, should be established to support
2
rural and manufacturing industries in Australia in times of crisis and support
communities affected by natural disasters. The Committee would also assess the
efficacy of existing bankruptcy or insolvency laws.
Clause 9: Powers of the Committee
9. Clause 9 provides for the powers of the Committee.
Division 3--Procedures of the Committee
Clauses 10 to 13
10. Clauses 10 to 13 set out the procedures for the conduct of meetings of the Committee,
including calling of meetings, quorum and voting.
Clause 14: Other powers and proceedings of the Committee
11. Clause 14 provides that all other matters relating to powers and proceedings of the
Committee are to be determined by resolution of both Houses of the Parliament.
Part 3--Miscellaneous
Clause 15: Sunset provision
12. Clause 15 is a sunset provision which provides for the Act to cease to have effect the
day after the Committee tables its final report in each House of the Parliament.
3
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Parliamentary Joint Committee on the Australia Fund Bill 2018
This Bill 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 Bill
The purpose of the Bill is to establish a Joint Committee to investigate the need for
establishing a special purpose fund (Australia Fund) to assist in the support and
reconstruction of Australian rural and manufacturing industries in times of crisis, including
natural disaster and world financial crisis.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
The Bill is compatible with human rights because it does not raise any human rights issues.
Brian Burston
Senator for NSW
4