Document ID: chunk:federal_register_of_legislation:C2004A00414:clause:1_39:p1
Version: federal_register_of_legislation:C2004A00414
Segment Type: clause
Provision Reference: sch 1 cl 39 (pt 1/2)
Character Range: 14915–17725

39  Investment of public money

 (1) The Finance Minister may invest public money in any authorised investment.

 (2) For the purpose of managing the public debt of the Commonwealth, the Treasurer may invest public money in any authorised investment.

 (3) An investment of public money under this section must not be inconsistent with the terms of any trust that applies to the money concerned.

 (4) If an amount invested under this section was debited from a Special Account, then expenses of the investment may be debited from that Special Account.

 (5) Upon realisation of an investment of an amount debited from a Special Account, the proceeds of the investment must be credited to that Special Account.

 (6) At any time before an investment matures, the Finance Minister or Treasurer, as the case requires, may authorise the re‑investment of the proceeds upon maturity in an authorised investment with the same entity.

Note: The proceeds of investment of the original investment will not become public money when the investment matures because the proceeds will not be received by or on behalf of the Commonwealth.

 (7) The corporation established by section 62B of the Audit Act 1901 is continued in existence for the purposes of this section with the name "The Minister for Finance of the Commonwealth". Investments by the Finance Minister under this section must be made in that corporate name.

 (8) The corporation established by section 8 of the Loan Consolidation and Investment Reserve Act 1955 is continued in existence for the purposes of this section with the name "The Treasurer of the Commonwealth". Investments by the Treasurer under this section must be made in that corporate name.

 (9) The CRF is appropriated as necessary for the purposes of this section.

 (10) In this section:

authorised investment means:
 (a) in relation to the Finance Minister—any of the following investments:
 (i) securities of the Commonwealth or of a State or Territory;
 (ii) securities guaranteed by the Commonwealth, a State or a Territory;
 (iii) a deposit with a bank, including a deposit evidenced by a certificate of deposit;
 (iv) any other form of investment prescribed by the regulations; and
 (b) in relation to the Treasurer—any of the following investments:
 (i) securities of the Commonwealth or of a State or Territory;
 (ii) securities guaranteed by the Commonwealth, a State or a Territory;
 (iii) a deposit with a bank, including a deposit evidenced by a certificate of deposit;
 (iv) debt instruments issued or guaranteed by:
 (A) the government of a foreign country; or
 (B) a financial institution whose members consist of foreign countries, or of Australia and foreign countries;
  being debt instruments with a credit rating that is consistent with the sound management of public