No. 160, 2007
An Act about the Higher Education Endowment Fund, and for related purposes
Contents
1............ Short title............................................................................................ 2
2............ Commencement.................................................................................. 2
3............ Object................................................................................................. 2
4............ Simplified outline................................................................................ 2
5............ Definitions.......................................................................................... 3
6............ Financial assets................................................................................... 7
7............ Crown to be bound............................................................................. 7
8............ Extension to external Territories......................................................... 7
9............ Extra‑territorial application................................................................ 7
Part 2--The Higher Education Endowment Fund 8
Division 1--Introduction 8
10.......... Simplified outline................................................................................ 8
Division 2--Establishment of the Higher Education Endowment Fund etc. 9
11.......... Establishment of the Higher Education Endowment Fund................. 9
12.......... Establishment of the Higher Education Endowment Fund Special Account 9
Division 3--Credits of amounts to the Higher Education Endowment Fund 10
13.......... Initial credit of $5 billion to the Fund Account................................ 10
14.......... Subsequent credits of amounts to the Fund Account--determinations by the responsible Ministers 10
15.......... Credit of amounts to the Fund Account--gifts................................ 10
Division 4--Debits of amounts from the Higher Education Endowment Fund 12
16.......... Purposes of the Fund Account......................................................... 12
17.......... Future Fund Board must ensure that there is sufficient money in the Fund Account to cover authorised grants etc........................................................................................................... 14
Division 5--Transfers between the Higher Education Endowment Fund and the Future Fund 15
18.......... Transfers from the Future Fund to the Higher Education Endowment Fund 15
19.......... Transfers from the Higher Education Endowment Fund to the Future Fund 15
Part 3--Investment of the Higher Education Endowment Fund 16
20.......... Simplified outline.............................................................................. 16
21.......... Objects of investment of the Fund................................................... 16
22.......... Investment of the Fund.................................................................... 17
23.......... Management of investments of the Fund......................................... 17
24.......... Higher Education Endowment Fund Investment Mandate.............. 17
25.......... Limitation on Higher Education Endowment Fund Investment Mandate 19
26.......... Future Fund Board to be consulted on Higher Education Endowment Fund Investment Mandate 20
27.......... Compliance with Higher Education Endowment Fund Investment Mandate 21
28.......... Future Fund Board must not trigger the takeover provisions of the Corporations Act 2001 22
29.......... Borrowing......................................................................................... 22
30.......... Higher Education Endowment Fund investment policies................. 23
31.......... Derivatives........................................................................................ 24
32.......... Additional financial assets................................................................ 24
33.......... Securities lending arrangements........................................................ 25
34.......... Investment managers........................................................................ 25
35.......... Custody of securities........................................................................ 26
36.......... Refund of franking credits................................................................ 26
37.......... Realisation of non‑financial assets.................................................... 26
38.......... Additional function of the Future Fund Board................................. 27
Part 4--Grants of financial assistance to eligible higher education institutions 28
Division 1--Introduction 28
39.......... Simplified outline.............................................................................. 28
Division 2--Higher Education Endowment Fund Advisory Board 30
40.......... Higher Education Endowment Fund Advisory Board...................... 30
41.......... Function of the Advisory Board...................................................... 30
42.......... Remuneration and allowances........................................................... 31
43.......... Disclosure of interests...................................................................... 31
44.......... Resignation....................................................................................... 31
Division 3--Authorisation of grants 33
45.......... Authorisation of grants..................................................................... 33
46.......... Limits on authorisation of grants...................................................... 33
47.......... Maximum Grants Rules.................................................................... 34
48.......... Calculation of maximum grants amount............................................ 35
49.......... Accumulated nominal earnings......................................................... 36
Division 4--Terms and conditions of grants 37
50.......... Terms and conditions of grants of financial assistance to eligible higher education institutions 37
Part 5--Reporting obligations 38
51.......... Nominated Minister may require Future Fund Board to prepare reports or give information 38
52.......... Keeping the responsible Ministers informed etc.............................. 39
Part 6--Miscellaneous 40
53.......... Higher Education Endowment Fund Investment Mandate and Maximum Grant Rules--additional obligations of responsible Ministers....................................................................... 40
54.......... Nominated Minister......................................................................... 41
55.......... Delegation by the Education Minister.............................................. 41
56.......... Delegation by the Finance Minister................................................. 42
57.......... Regulations....................................................................................... 42
Higher Education Endowment Fund Act 2007
No. 160, 2007
An Act about the Higher Education Endowment Fund, and for related purposes
[Assented to 24 September 2007]
The Parliament of Australia enacts: