Document ID: chunk:federal_register_of_legislation:F2023L01023:body:0:p3
Version: federal_register_of_legislation:F2023L01023
Segment Type: other
Provision Reference: 
Character Range: 5601–8533

aggregate has an acceptable but not excessive level of risk, having regard to the terms of the Act and the focus on particular areas identified in section 14 of this direction.
The Board must periodically review its investment practices for the purposes of managing the risk of the General Portfolio over time and must advise the responsible Ministers of specific measures taken in this regard.
         Note: The directions on risk for each Sub-Fund is set out in sections 15 and 16 of this direction.
    9.             Limits on concessionality

Except in relation to the Rewiring the Nation Fund and the Household Energy Upgrades Fund, the Board must limit the amount of concessionality it provides in any financial year to $300 million.
Concessionality reflects the mark-to-market valuation of loans made that financial year and should be measured as the difference between the present value of each loan at market rates and the present value of each loan at the given concessional rate.
         Note: The direction on concessionality in relation to the Rewiring the Nation Fund and the Household Energy Upgrades Fund are set out in sections 15 and 16 of this direction.
    10.        Limits on guarantees

The Board must:
        (a)   except in relation to the Rewiring the Nation Fund, avoid the use of guarantees where possible; and
        (b)   ensure that all guarantees are limited and quantifiable; and
        (c)   ensure the total value of all outstanding guarantees (other than guarantees in relation to the Rewiring the Nation Fund) at any time does not exceed 5 per cent of the total amount that has been credited to the Account under section 46 of the Act for purposes other than the Rewiring the Nation Fund.
    11.        Application of policies to support Australian industry

    Australian Industry Participation (AIP) Plans must apply to projects that the Corporation invests in, in accordance with the Government's AIP Plan policy and recognising the importance of increased sovereign capacity to the deployment of clean energy technologies and resilient clean energy supply chains.

The Corporation must also:
        (a)   consult with the Department of Finance in relation to the application of the Government's Buy Australian Plan; and
        (b)   where practical, encourage the increased use of local content in the deployment of clean energy technologies.
    12.        Medium to long term outlook for its investment strategy

    The Board must take a medium to long term outlook when setting the investment strategy for the Corporation.

    13.        Board must not damage the Australian Government's reputation

The Board must not act in a way that is likely to cause damage to the Australian Government's reputation.
    14.        Focus areas for the Corporation's activities

The Board must focus on clean energy technologies and financial products and structures that work to