the maximum return available on authorised investments, consistent with the requirements, including particular cashflow requirements, of sound financial management of the Account. 5.3 Notification to Australian Office of Financial Management for large amounts Before making any investment or authorising any reinvestment involving an amount of $15 million or more, the delegate must provide details of the proposed investment or reinvestment to the Australian Office of Financial Management. Part 6 Delegation under section 60 of the Act Indemnities, – guarantees or warranties by the Commonwealth Division 1 Delegation Section 60 1 Provision of Act To grant an indemnity, guarantee or warranty 2 Summary of function or power on behalf of the Commonwealth Non-Finance accountable authorities, of 3 Delegates noncorporate Commonwealth entities Division 2 Directions 6.1 Scope of delegation This delegation extends only to arrangements consisting of or including indemnities, guarantees or warranties, on behalf of the Commonwealth as described in clauses 6.3 to 6.5 but subject to paragraphs (2) and (3). A delegate cannot grant a guarantee for the payment of any amount of principal or interest due on a loan. A delegate cannot grant an indemnity that would meet the costs of civil or criminal penalties of the indemnified party. A delegate is delegated, the power to delegate this power of the Finance Minister under the provision of the Act. 6.2 Principles When exercising the delegation, the delegate must consider two overarching policy principles: (a) that risks should be borne by the party best placed to manage them; and (b) benefits to the Commonwealth should outweigh the risks involved.
the maximum return available on authorised investments, consistent with the requirements, including particular cashflow requirements, of sound financial management of the Account. 5.3 Notification to Australian Office of Financial Management for large amounts Before making any investment or authorising any reinvestment involving an amount of $15 million or more, the delegate must provide details of the proposed investment or reinvestment to the Australian Office of Financial Management. Part 6 Delegation under section 60 of the Act – Indemnities, guarantees or warranties by the Commonwealth Division 1 Delegation 1 Provision of Act Section 60 2 Summary of function or power To grant an indemnity, guarantee or warranty on behalf of the Commonwealth 3 Delegates Non-Finance accountable authorities, of noncorporate Commonwealth entities Division 2 Directions 6.1 Scope of delegation This delegation extends only to arrangements consisting of or including indemnities, guarantees or warranties, on behalf of the Commonwealth as described in clauses 6.3 to 6.5 but subject to paragraphs (2) and (3). A delegate cannot grant a guarantee for the payment of any amount of principal or interest due on a loan. A delegate cannot grant an indemnity that would meet the costs of civil or criminal penalties of the indemnified party. A delegate is delegated, the power to delegate this power of the Finance Minister under the provision of the Act. 6.2 Principles When exercising the delegation, the delegate must consider two overarching policy principles: (a) that risks should be borne by the party best placed to manage them; and (b) benefits to the Commonwealth should outweigh the risks involved.
FM%20Delegation%20to%20AA%202014.docx