Commonwealth: Future Fund Act 2006 (Cth)

Future Fund Act 2006 No. 12, 2006 Compilation No. 18 Compilation date: 1 November 2023 Includes amendments up to: Act No. 81, 2023 Registered: 27 November 2023 About this compilation This compilation This is a compilation of the Future Fund Act 2006 that shows the text of the law as amended and in force on 1 November 2023 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part 1—Introduction 1 Short title 2 Commencement 3 Object 4 Simplified outline 5 Definitions 6 Financial assets 7 Crown to be bound 8 Extension to external Territories 9 Extra‑territorial application Part 2—The Future Fund 10 Simplified outline 11 Establishment of the Future Fund 12 Establishment of the Future Fund Special Account 13 Operation of the Future Fund Part 3—Investment of the Future Fund 14 Simplified outline 15 Objects of investment of the Fund 16 Investment of the Fund 17 Management of investments of the Fund 18 Future Fund Investment Mandate 18A Limitation on Future Fund Investment Mandate 19 Board to be consulted on Future Fund Investment Mandate 20 Compliance with Future Fund Investment Mandate 21 Board must not trigger the takeover provisions of the Corporations Act 2001 23 Borrowing 24 Investment policies 25 Derivatives 26 Additional financial assets 27 Securities lending arrangements 28 Investment managers 30 Refund of franking credits 32 Realisation of non‑financial assets Part 4—The Future Fund Board of Guardians Division 1—Introduction 33 Simplified outline Division 2—Establishment and functions of the Future Fund Board of Guardians 34 Establishment of the Future Fund Board of Guardians 35 Board's functions 36 Board's ordinary powers 37 Board is a body corporate 38 Membership 39 Application of the Corporations Act 2001 Division 3—Terms and conditions for Board members 40 Term of appointment and related matters for Board members 41 Remuneration and allowances of Board members 42 Leave of absence of Board members 43 Resignation of Board members 44 Termination of appointment of Board members 45 Other terms and conditions of Board members 46 Acting Board members Division 4—Meetings 47 Holding of meetings 48 Who is to preside at a meeting 49 Quorum 50 Voting 51 Records of meetings Division 5—Resolutions without meetings 52 Resolutions without meetings 53 Record of resolutions Division 6—Reporting obligations 54 Nominated Minister may require Board to prepare reports or give information 55 Keeping the responsible Ministers informed etc. Division 6A—Periodic investment reports 55A Periodic investment reports 55B Reporting rules 55C Board to be consulted on reporting rules Division 7—Duties of Board members etc. Subdivision A—Civil obligations and criminal offences 56 Care and diligence—civil obligation 57 Good faith—civil obligation 58 Use of position—civil obligation 59 Use of information—civil obligation 60 Good faith—criminal offence 61 Use of position—criminal offence 62 Use of information—criminal offence Subdivision B—Other provisions relating to civil penalty provisions and criminal offences 63 Compliance with statutory duties 64 Interaction of sections 56 to 62 with other laws etc. 65 Reliance on information or advice provided by others 66 Finance Minister requiring person to assist 67 Insurance for certain liabilities of Board members Subdivision C—Consequences of breach of duty 67A Consequences of breach of duty—civil penalty provisions 67B Compensation orders 67C Disqualification order for contravention of civil penalty provision by Board members 67D Exception to disqualification order 67E Relief from liability for contravention of civil penalty provision etc. Division 8—Conflict of interests 68 Material personal interest—Board member's duty to disclose 69 Board member may give other Board members standing notice about an interest 70 Interaction of sections 68 and 69 with other laws etc. 71 Restrictions on voting 72 Ministerial power to make declarations and class orders Part 5—The Future Fund Management Agency Division 1—Introduction 73 Simplified outline Division 2—Establishment and functions of the Future Fund Management Agency 74 Establishment of the Future Fund Management Agency 75 Functions of the Agency Division 3—Management and staff of the Future Fund Management Agency 76 Duties of the Chair 77 Staff of the Agency 78 Consultants and persons seconded to the Agency 79 Chair not subject to direction by the Board on certain matters Division 4—Other provisions 80 Application of the Public Governance, Performance and Accountability Act 2013 81 Annual report 82 Consultants and advisers to the Board Part 6—Miscellaneous 83 Nominated Minister 83A Delegation by the nominated Minister 83B Delegation by the Board 84 Miscellaneous receipts to be credited to the Fund Account 84A Exemption from taxation 84B Franking credits 84C Board must not have a significant stake in a foreign listed company 85 Regulations Schedule 1—Credits of amounts, and transfers of financial assets, to the Future Fund Part 1—Introduction 1 Simplified outline Part 2—Credits of amounts to the Future Fund 2 Credit of $18 billion to the Fund Account 3 Credit of additional amounts to the Fund Account—Ministerial determinations 4 Duration of subclause 3(1) determinations 5 Credit of amounts to the Fund Account—gifts Part 3—Transfers of financial assets to the Future Fund 6 Transfers to the Fund—Commonwealth‑owned financial assets 7 Transfers of financial assets to the Fund—gifts 8 Ministerial directions about transferred financial assets 9 Continuing effect of instruments relating to transferred financial assets Schedule 2—Debits of amounts from the Future Fund 1 Simplified outline 2 Purposes of the Fund Account 3 Board must ensure that there is sufficient money to cover the main purposes of the Fund Account Schedule 2A—Inter‑fund transfers 1 Simplified outline 1A Transfers from the Future Fund to the Future Drought Fund 5 Transfers from the Future Fund to the DisabilityCare Australia Fund 5A Transfers from the Future Fund to the Disaster Ready Fund 5B Transfers from the Future Fund to the Housing Australia Future Fund 6 Transfers from the Future Fund to the Medical Research Future Fund 7 Transfers from the Future Fund to the Aboriginal and Torres Strait Islander Land and Sea Future Fund Schedule 3—Target asset level declarations 1 Simplified outline 2 Designated actuary 3 Target asset level declarations 4 Reliance on projections when making target asset level declarations etc. Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act about the Future Fund, and for other purposes Part 1—Introduction 1 Short title This Act may be cited as the Future Fund Act 2006. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table The day on which this Act receives the Royal Assent. 23 March 2006 2. Sections 3 to 85 A single day to be fixed by Proclamation. 3 April 2006 However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period. (see F2006L00934) 3. Schedules 1, 2 and 3 At the same time as the provision(s) covered by table item 2. 3 April 2006 Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act. 3 Object (1) The main object of this Act is to strengthen the Commonwealth's long‑term financial position by establishing the Future Fund. (2) The Future Fund will make provision for unfunded superannuation liabilities that will become payable during a period when an ageing population is likely to place significant pressure on the Commonwealth's finances. 4 Simplified outline The following is a simplified outline of this Act: • This Act sets up the Future Fund. • The Future Fund Board of Guardians is responsible for deciding how to invest the Future Fund. • Investments of the Future Fund will consist of financial assets. • The Board is bound by a Future Fund Investment Mandate given to it by the responsible Ministers. • The Future Fund Management Agency is responsible for assisting and advising the Board. Note: The Future Fund Board of Guardians has additional functions under the Future Drought Fund Act 2019, the DisabilityCare Australia Fund Act 2013, the Disaster Ready Fund Act 2019, the Housing Australia Future Fund Act 2023, the Medical Research Future Fund Act 2015 and the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018. 5 Definitions In this Act: Aboriginal and Torres Strait Islander Land and Sea Future Fund means the Aboriginal and Torres Strait Islander Land and Sea Future Fund established by section 9 of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018. Aboriginal and Torres Strait Islander Land and Sea Future Fund Special Account means the Aboriginal and Torres Strait Islander Land and Sea Future Fund Special Account established by section 12 of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018. accountable authority has the meaning given by the Public Governance, Performance and Accountability Act 2013. acquire includes acquire by way of issue. actuary means a person who is a Fellow or an Accredited Member of the Institute of Actuaries of Australia. Agency means the Future Fund Management Agency established by section 74. asset means: (a) any kind of real or personal property; or (b) any legal or equitable estate or interest in real or personal property; or (c) any legal or equitable right. balance of the Fund means the sum of: (a) amounts standing to the credit of the Fund Account; and (b) the value of investments of the Fund. bank has the same meaning as in the Public Governance, Performance and Accountability Act 2013. Board means the Future Fund Board of Guardians established by section 34. Board member means a member of the Board, and includes the Chair. business entity means: (a) a company; or (b) a partnership; or (c) a trust; or (d) a body politic. business judgment means any decision to take or not take action in respect of a matter relevant to the operations of the Board. Chair means the Chair of the Board. civil penalty provision has the meaning given by the Regulatory Powers (Standard Provisions) Act 2014. Commonwealth company has the same meaning as in the Public Governance, Performance and Accountability Act 2013. Commonwealth‑owned financial asset means a financial asset held by the Commonwealth. corporate Commonwealth entity has the meaning given by the Public Governance, Performance and Accountability Act 2013. derivative means a derivative (within the meaning of Chapter 7 of the Corporations Act 2001) that is a financial asset. designated actuary has the meaning given by clause 2 of Schedule 3. DisabilityCare Australia Fund means the DisabilityCare Australia Fund established by section 10 of the DisabilityCare Australia Fund Act 2013. DisabilityCare Australia Fund Special Account means the DisabilityCare Australia Fund Special Account established by section 11 of the DisabilityCare Australia Fund Act 2013. Disaster Ready Fund means the Disaster Ready Fund referred to in section 9 of the Disaster Ready Fund Act 2019. Disaster Ready Fund Special Account means the Disaster Ready Fund Special Account referred to in section 12 of the Disaster Ready Fund Act 2019. dishonest means: (a) dishonest according to the standards of ordinary people; and (b) known by the person to be dishonest according to the standards of ordinary people. disqualifiable position means a position as: (a) a Board member; or (b) an accountable authority or a member of an accountable authority of a corporate Commonwealth entity. Drought Minister has the same meaning as in the Future Drought Fund Act 2019. Emergency Management Minister has the same meaning as in the Disaster Ready Fund Act 2019. Finance Minister has the same meaning as in the Public Governance, Performance and Accountability Act 2013. financial asset has the meaning given by section 6. foreign listed company means a company: (a) any of the shares of which are listed for quotation in the official list of a stock exchange in a foreign country; and (b) none of the shares of which are listed for quotation in the official list of a stock exchange in Australia. Fund means the Future Fund established by section 11. Fund Account means the Future Fund Special Account established by section 12. funded component of a superannuation benefit means the part (if any) of the superannuation benefit that, for actuarial purposes, is treated as the funded component. For this purpose, disregard Schedule 2. Future Drought Fund means the Future Drought Fund established by section 10 of the Future Drought Fund Act 2019. Future Drought Fund Special Account means the Future Drought Fund Special Account established by section 13 of the Future Drought Fund Act 2019. Future Fund investment function of the Board means: (a) a function or power conferred on the Board by section 16, 17, 23, 25, 27 or 28; or (b) a right or power conferred on the Board in its capacity as the holder of an investment of the Fund. Future Fund Investment Mandate has the meaning given by subsection 18(3). GFS Australia means the publication of the Australian Bureau of Statistics known as Australian System of Government Finance Statistics: Concepts, Sources and Methods, as updated from time to time. This updating takes 2 forms: (a) from time to time, a new version of the publication is produced; (b) from time to time, material in the current version of the publication is updated by other publications of the Australian Bureau of Statistics. GFS system has the same meaning as in GFS Australia. Health Minister has the same meaning as in the Medical Research Future Fund Act 2015. Housing Australia Future Fund means the Housing Australia Future Fund established by section 9 of the Housing Australia Future Fund Act 2023. Housing Australia Future Fund Special Account means the Housing Australia Future Fund Special Account established by section 10 of the Housing Australia Future Fund Act 2023. Housing Minister has the same meaning as in the Housing Australia Future Fund Act 2023. Indigenous Affairs Minister means the Minister who administers Part 4A of the Aboriginal and Torres Strait Islander Act 2005. investment means any mode of application of money or financial assets for the purpose of gaining a return (whether by way of income, capital gain or any other form of return). investment manager means a person or body (other than the Agency) who undertakes to do any or all of the following: (a) invest amounts on behalf of the Board; (b) manage the investment of funds on behalf of the Board; (c) acquire derivatives on behalf of the Board; (d) manage derivatives on behalf of the Board; (e) enter into securities lending arrangements on behalf of the Board; (f) realise financial assets on behalf of the Board; (g) perform custodial functions in relation to the financial assets of the Board. investment of the Fund means a financial asset that, under a provision of this Act, is taken to be an investment of the Fund. Medical Research Future Fund means the Medical Research Future Fund established by section 11 of the Medical Research Future Fund Act 2015. Medical Research Future Fund Special Account means the Medical Research Future Fund Special Account established by section 14 of the Medical Research Future Fund Act 2015. National Disability Insurance Minister means the Minister who administers the National Disability Insurance Scheme Act 2013. nominated Minister has the meaning given by section 83. person (except in Division 7 of Part 4) includes a partnership. Note: See also subsection 2C(1) of the Acts Interpretation Act 1901. realise includes redeem or dispose of. relevant court means: (a) the Federal Court of Australia; or (b) a Supreme Court of a State or Territory. reporting rules means rules made under section 55B. responsible Ministers means: (a) the Treasurer; and (b) the Finance Minister. securities lending arrangement means an agreement of the kind known as a securities lending arrangement. Social Services Minister has the same meaning as in the Housing Australia Future Fund Act 2023. South Australian railways arrangement means an arrangement between the Commonwealth and South Australia dealing with employer superannuation liabilities arising in relation to former employees of the South Australian railways. superannuation benefit means a pension, allowance or other benefit payable under: (a) the Superannuation Act 1922; or (b) the Superannuation Act 1976; or (c) the scheme established under the Superannuation Act 1990; or (d) the Parliamentary Contributory Superannuation Act 1948; or (e) the scheme established under the Military Superannuation and Benefits Act 1991; or (f) the Defence Forces Retirement Benefits Act 1948; or (g) the Defence Force Retirement and Death Benefits Act 1973; or (ga) the Australian Defence Force Cover Act 2015; or (h) the Judges' Pensions Act 1968; or (i) section 4, 4A or 4AA of the Governor‑General Act 1974. superannuation liability means a liability to make a payment of a superannuation benefit. target asset level declaration means a declaration under subclause 3(1) of Schedule 3. Tasmanian railways arrangement means an arrangement between the Commonwealth and Tasmania dealing with employer superannuation liabilities arising in relation to former employees of the Tasmanian railways. unfunded superannuation liability means: (a) so much of a superannuation liability as is not attributable to the funded component of a superannuation benefit; or (b) an amount payable by the Commonwealth under a South Australian railways arrangement; or (c) an amount payable by the Commonwealth under a Tasmanian railways arrangement. value means market value. For this purpose, disregard anything that would prevent or restrict conversion of a financial asset to money. Veterans' Affairs Minister has the same meaning as in the Housing Australia Future Fund Act 2023. 6 Financial assets A reference in this Act to a financial asset is a reference to: (a) an asset that, in accordance with GFS Australia, is treated as a financial asset for the purposes of the GFS system in Australia; or (b) an asset specified in regulations made for the purposes of this paragraph; but does not include a reference to an asset that, under the regulations, is taken to be a non‑financial asset for the purposes of this Act. Note: For specification by class, see subsection 13(3) of the Legislation Act 2003. 7 Crown to be bound (1) This Act binds the Crown in each of its capacities. (2) This Act does not make the Crown liable to be prosecuted for an offence. 8 Extension to external Territories This Act extends to every external Territory. 9 Extra‑territorial application This Act extends to acts, omissions, matters and things outside Australia (unless the contrary intention appears). Part 2—The Future Fund 10 Simplified outline The following is a simplified outline of this Part: • This Part sets up the Future Fund. • The Future Fund consists of the Future Fund Special Account and the investments of the Future Fund. 11 Establishment of the Future Fund (1) The Future Fund is established by this section. (2) The Future Fund consists of: (a) the Future Fund Special Account; and (b) the investments of the Fund. 12 Establishment of the Future Fund Special Account (1) The Future Fund Special Account is established by this section. (2) The Fund Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013. Note 1: Fund Account means the Future Fund Special Account—see section 5. Note 2: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account. 13 Operation of the Future Fund Schedules 1, 2, 2A and 3 have effect. Note 1: Schedule 1 is about credits of amounts, and transfers of financial assets, to the Future Fund. Note 2: Schedule 2 is about debits of amounts from the Future Fund. Note 2A: Schedule 2A is about transfers of amounts from the Future Fund to the Future Drought Fund, the DisabilityCare Australia Fund, the Disaster Ready Fund, the Housing Australia Future Fund, the Medical Research Future Fund and the Aboriginal and Torres Strait Islander Land and Sea Future Fund. Note 3: Schedule 3 is about target asset level declarations. Part 3—Investment of the Future Fund 14 Simplified outline The following is a simplified outline of this Part: • The Future Fund Board of Guardians is responsible for deciding how to invest the Future Fund. • Investments of the Future Fund will consist of financial assets. • Investments of the Future Fund will be held in the name of the Board. • The Board is bound by a Future Fund Investment Mandate given to it by the responsible Ministers. 15 Objects of investment of the Fund (1) The main object of the acquisition by the Board of a financial asset as an investment of the Fund is to enhance the ability of the Commonwealth to discharge unfunded superannuation liabilities as mentioned in paragraphs 2(1)(a) and (b) of Schedule 2. (2) The ancillary objects of the acquisition by the Board of a financial asset as an investment of the Fund are to enhance the ability of the Commonwealth and the Board to: (a) discharge liabilities, costs, expenses and obligations; and (b) make payments; as mentioned in paragraphs 2(1)(c) to (i), and paragraphs 2(2)(a) to (g), of Schedule 2. 16 Investment of the Fund (1) The Board may invest amounts standing to the credit of the Fund Account in any financial assets. (2) Investments under subsection (1) are to be made in the name of the Board. (3) Investments under subsection (1) are taken to be investments of the Fund. (4) This section does not authorise the acquisition of a derivative. Note: For acquisition of derivatives, see section 25. 17 Management of investments of the Fund (1) Income derived from an investment of the Fund is to be credited to the Fund Account. (2) A return of capital, or any other financial distribution, relating to an investment of the Fund is to be credited to the Fund Account. (3) The Board may realise an investment of the Fund. (4) Upon realisation of an investment of the Fund, the proceeds of the investment are to be credited to the Fund Account. (5) At any time before an investment of the Fund matures, the Board may authorise the re‑investment of the proceeds upon maturity in a financial asset investment with the same entity. The new investment is taken to be an investment of the Fund. (6) Section 58 of the Public Governance, Performance and Accountability Act 2013 (which deals with investment by the Commonwealth) does not apply to an investment of the Fund. 18 Future Fund Investment Mandate (1) The responsible Ministers may give the Board written directions about the performance of its Future Fund investment functions, and must give at least one such direction. Note: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901. (1A) Subsection (1) has effect subject to section 18A. (2) In giving a direction under subsection (1), the responsible Ministers must have regard to: (a) maximising the return earned on the Fund over the long term, consistent with international best practice for institutional investment; and (b) such other matters as the responsible Ministers consider relevant. (3) Directions under subsection (1) are to be known collectively as the Future Fund Investment Mandate. (4) A direction under subsection (1) may set out the policies to be pursued by the Board in relation to: (a) matters of risk and return; and (b) the allocation of financial assets. A policy relating to the allocation of financial assets must not be inconsistent with a policy relating to matters of risk and return. (5) Subsection (4) does not limit subsection (1). (5A) Subsection (4) has effect subject to section 18A. (6) The Future Fund Investment Mandate prevails over subsection (10) to the extent of any inconsistency. (7) The responsible Ministers must not give a direction under subsection (1) that is inconsistent with this Act (other than subsection (10)). (8) A direction under subsection (1) must not take effect before the 15th day after the day on which it is given. (9) A direction under subsection (1) is a legislative instrument. Note: Section 42 (disallowance) of the Legislation Act 2003 does not apply to the direction—see regulations made for the purposes of paragraph 44(2)(b) of that Act. (10) In the performance of its Future Fund investment functions, the Board must seek to maximise the return earned on the Fund over the long term, consistent with international best practice for institutional investment. Note: Future Fund investment function is defined in section 5. (11) Subsection (10) has effect subject to: (a) this Act; and (b) a direction under subsection (1); and (c) a direction under subclause 8(1) of Schedule 1. (12) Before the first occasion on which an amount is debited from the Fund Account for the purpose of discharging, in whole or in part, an unfunded superannuation liability, the responsible Ministers must review the Future Fund Investment Mandate in consultation with the Board. Note: If there is to be a change in the Future Fund Investment Mandate, the responsible Ministers must consult the Board under section 19. 18A Limitation on Future Fund Investment Mandate (1) The responsible Ministers must not give a direction under subsection 18(1) that has the purpose, or has or is likely to have the effect, of directly or indirectly requiring the Board to: (a) invest an amount standing to the credit of the Fund Account in a particular financial asset; or (b) acquire a particular derivative; or (c) allocate financial assets to: (i) a particular business entity; or (ii) a particular activity; or (iii) a particular business. (2) Paragraphs (1)(a) and (b) do not limit paragraph (1)(c). 19 Board to be consulted on Future Fund Investment Mandate (1) Before giving the Board a direction under subsection 18(1), the responsible Ministers must: (a) send a draft of the direction to the Board; and (b) invite the Board to make a submission to the responsible Ministers on the draft direction within a time limit specified by the responsible Ministers; and (c) consider any submission that is received from the Board within that time limit. (2) If: (a) the responsible Ministers give the Board a direction under subsection 18(1); and (b) the Board made a submission to the responsible Ministers on a draft of the direction within the time limit specified by the responsible Ministers; the submission is to be tabled in each House of the Parliament with the direction. Note: For tabling of the direction, see section 38 of the Legislation Act 2003. (3) A time limit specified under this section must be reasonable. 20 Compliance with Future Fund Investment Mandate (1) The Board must take all reasonable steps to comply with the Future Fund Investment Mandate. (2) As soon as practicable after the Board becomes aware that it has failed to comply with the Future Fund Investment Mandate, the Board must give the responsible Ministers a written statement: (a) informing the responsible Ministers of the failure to comply with the Future Fund Investment Mandate; and (b) setting out the action that the Board proposes to take in order to comply with the Future Fund Investment Mandate. (3) If the responsible Ministers are satisfied that the Board has failed to comply with the Future Fund Investment Mandate, the responsible Ministers may, by written notice given to the Board, direct the Board: (a) to give the responsible Ministers, within a period specified in the notice, a written explanation for the failure to comply with the Future Fund Investment Mandate; and (b) to take action specified in the notice, within a period specified in the notice, in order to comply with the Future Fund Investment Mandate. (4) The Board must comply with a direction under subsection (3). (5) A failure to comply with: (a) the Future Fund Investment Mandate; or (b) a direction under subsection (3); does not affect the validity of any transaction. (6) A direction under subsection (3) is not a legislative instrument. 21 Board must not trigger the takeover provisions of the Corporations Act 2001 (1) Section 606 of the Corporations Act 2001 does not apply to an acquisition by the Board if the acquisition is the result of a transfer under clause 6 or 7 of Schedule 1 to this Act. (2) Subsections 606(1A) and (2A) and section 611 of the Corporations Act 2001 do not apply to an acquisition by the Board if the acquisition is the result of the performance by the Board of its Future Fund investment functions. (3) A failure by the Board to comply with section 606 of the Corporations Act 2001 (as modified by this section) does not affect the validity of any transaction. Note: See also section 39 (application of the Corporations Act 2001). 23 Borrowing (1) The Board must not borrow money for a purpose in connection with the Fund unless the borrowing is authorised by subsection (2) or (3). (2) The Board is authorised to borrow money for a purpose in connection with the Fund if: (a) the purpose of the borrowing is to enable the Board to cover settlement of a transaction for the acquisition of one or more financial assets; and (b) at the time the relevant acquisition decision was made, it was likely that the borrowing would not be needed; and (c) the period of the borrowing does not exceed 7 days; and (d) if the borrowing were to take place, the total amount borrowed by the Board would not exceed 10% of the balance of the Fund. (3) The Board is authorised to borrow money for a purpose in connection with the Fund if the borrowing takes place in such circumstances (if any) as are specified in the regulations. 24 Investment policies (1) The Board must formulate written policies to be complied with by it in relation to the following matters in connection with the Fund: (a) the investment strategy for the Fund; (b) benchmarks and standards for assessing the performance of the Fund; (c) risk management for the Fund; (d) a matter relating to international best practice for institutional investment; (e) a matter specified in the regulations. Note: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901. (2) The Board must ensure that policies formulated under subsection (1) are consistent with the Future Fund Investment Mandate. Publication of policies (3) The Board must cause copies of policies formulated under subsection (1) to be published on the internet. (4) The Board must ensure that the first set of policies formulated under subsection (1) is published on the internet as soon as practicable after the commencement of this section. Review of policies (5) The Board must conduct periodic reviews of policies formulated under subsection (1). (6) If there is a change in the Future Fund Investment Mandate, the Board must review any relevant policies formulated under subsection (1). Compliance with policies (7) The Board must take all reasonable steps to comply with policies formulated under subsection (1). (8) A failure to comply with a policy formulated under subsection (1) does not affect the validity of any transaction. Policies (9) A policy formulated under subsection (1) is not a legislative instrument. 25 Derivatives (1) The Board may acquire a derivative for the purpose of: (a) protecting the value of an investment of the Fund (other than a derivative); or (b) protecting the return on an investment of the Fund (other than a derivative); or (c) achieving indirect exposure to financial assets (other than derivatives) for a purpose in connection with the Fund; or (d) achieving transactional efficiency for a purpose in connection with the Fund; but must not acquire a derivative for the purpose of: (e) speculation; or (f) leverage. (2) The acquisition of a derivative under subsection (1) must be consistent with the investment strategy embodied in a policy formulated by the Board under subsection 24(1). (3) A derivative acquired under subsection (1) is to be held in the name of the Board. (4) A derivative acquired under subsection (1) is taken to be an investment of the Fund. 26 Additional financial assets If, as a result of: (a) the Board's holding of an investment of the Fund; or (b) the exercise of any rights or powers conferred on the Board in its capacity as the holder of an investment of the Fund; the Board becomes the holder of a financial asset, that financial asset is taken to be an investment of the Fund. 27 Securities lending arrangements (1) The Board may enter into securities lending arrangements for a purpose in connection with the Fund. (2) Any money received by the Board under a securities lending arrangement entered into under subsection (1) is to be credited to the Fund Account. (3) To avoid doubt, a securities lending arrangement entered into under subsection (1) may provide for the Board to realise an investment of the Fund. (4) If, as the result of the operation of a securities lending arrangement entered into under subsection (1), the Board becomes the holder of a financial asset, that financial asset is taken to be an investment of the Fund. 28 Investment managers (1) The Board may engage one or more investment managers for purposes in connection with the Fund. (2) The Board must not: (a) invest amounts under subsection 16(1); or (b) acquire derivatives under subsection 25(1); or (c) enter into a securities lending arrangement under subsection 27(1); or (d) realise financial assets that are investments of the Fund; unless the Board does so: (e) through an investment manager engaged by the Board under subsection (1) of this section; or (f) in a manner approved, in writing, by the responsible Ministers. (3) The Board must ensure that any investment manager engaged by the Board under subsection (1) operates within this Act. (4) The Board must ensure that any investment manager engaged by the Board under subsection (1) reports to the Board and the Agency on the state of the investments of the Fund at such times and in such manner as the Board determines. (5) None of the following Acts: (a) this Act; (aa) the Future Drought Fund Act 2019; (ba) the DisabilityCare Australia Fund Act 2013; (bab) the Disaster Ready Fund Act 2019; (bac) the Housing Australia Future Fund Act 2023; (bb) the Medical Research Future Fund Act 2015; (bc) the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018; prevent the same person from being engaged as an investment manager under 2 or more of the following provisions: (c) subsection (1) of this section; (ca) subsection 52(1) of the Future Drought Fund Act 2019; (g) subsection 39(1) of the DisabilityCare Australia Fund Act 2013; (ga) subsection 50(1) of the Disaster Ready Fund Act 2019; (gb) subsection 52(1) of the Housing Australia Future Fund Act 2023; (h) subsection 50(1) of the Medical Research Future Fund Act 2015; (i) subsection 43(1) of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018. 30 Refund of franking credits If: (a) the Board receives a refund of a tax offset under the Income Tax Assessment Act 1997; and (b) the tax offset is attributable to an investment of the Fund; the refund is to be credited to the Fund Account. Note 1: See also section 84B. Note 2: For refunds of tax offsets, see Division 63 of the Income Tax Assessment Act 1997. 32 Realisation of non‑financial assets (1) If an asset held by the Board as an investment of the Fund ceases to be a financial asset: (a) the Board must realise the asset as soon as practicable after the Board becomes aware of the cessation; and (b) this Act (other than this section) applies in relation to the asset (including in relation to the realisation of the asset) as if the asset had remained a financial asset, and an investment of the Fund, until the realisation. (2) If an asset acquired by the Board, purportedly as an investment of the Fund, is not a financial asset: (a) the Board must realise the asset as soon as practicable after the Board becomes aware that the asset is not a financial asset; and (b) this Act (other than this section) applies in relation to the asset (including in relation to the realisation of the asset) as if the asset had been a financial asset, and an investment of the Fund, from the time of its acquisition by the Board until the realisation. Part 4—The Future Fund Board of Guardians Division 1—Introduction 33 Simplified outline The following is a simplified outline of this Part: • This Part establishes the Future Fund Board of Guardians. • The Future Fund Board of Guardians is responsible for deciding how to invest the Future Fund. • The Board consists of a Chair and 6 other members. • An asset held by the Board is held for and on behalf of the Commonwealth. • Board members must act in good faith. Note: The Future Fund Board of Guardians has additional functions under the Future Drought Fund Act 2019, the DisabilityCare Australia Fund Act 2013, the Disaster Ready Fund Act 2019, the Housing Australia Future Fund Act 2023, the Medical Research Future Fund Act 2015 and the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018. Division 2—Establishment and functions of the Future Fund Board of Guardians 34 Establishment of the Future Fund Board of Guardians The Future Fund Board of Guardians is established by this section. 35 Board's functions The Board has the following functions: (a) to invest amounts in accordance with this Act; (b) such other functions as are conferred on the Board by: (i) this Act; or (ia) the Future Drought Fund Act 2019; or (iii) the DisabilityCare Australia Fund Act 2013; or (iiia) the Disaster Ready Fund Act 2019; or (iiib) the Housing Australia Future Fund Act 2023; or (iv) the Medical Research Future Fund Act 2015; or (v) the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018; (c) to do anything incidental to or conducive to the performance of any of the above functions. 36 Board's ordinary powers (1) The Board has power to do all things necessary or convenient to be done for or in connection with the performance of its functions, other than the power to lease the whole or any part of any land or building for the purposes of the Board. (2) The Board's powers include, but are not limited to, the power to enter into contracts. Example: A contract of insurance. (3) Any real or personal property held by the Board is held for and on behalf of the Commonwealth. (4) Any money received by the Board is received by the Board for and on behalf of the Commonwealth. 37 Board is a body corporate (1) The Board: (a) is a body corporate with perpetual succession; and (b) must have a seal; and (c) may acquire, hold and dispose of real and personal property; and (d) may sue and be sued in its corporate name. Note: The Board is not a Commonwealth entity for the purposes of the Public Governance, Performance and Accountability Act 2013 (see subsection 10(2) of that Act). Seal (2) The seal of the Board must be kept in such custody as the Board directs, and must not be used except as authorised by the Board. (3) All courts, judges and persons acting judicially must: (a) take judicial notice of the imprint of the seal of the Board appearing on a document; and (b) presume that the document was duly sealed. 38 Membership (1) The Board consists of the following members: (a) a Chair; (b) 6 other members. Note: Section 18B of the Acts Interpretation Act 1901 deals with the title of the Chair. (2) Board members are to be appointed by the responsible Ministers by written instrument. Note: A Board member may be reappointed: see section 33AA of the Acts Interpretation Act 1901. (3) A person is not eligible for appointment as a Board member unless the responsible Ministers are satisfied that the person has: (a) substantial experience or expertise; and (b) professional credibility and significant standing; in at least one of the following fields: (c) investing in financial assets; (d) the management of investments in financial assets; (e) corporate governance. (4) A person is not eligible for appointment as a Board member if the person is: (a) an employee of the Commonwealth; or (b) an employee of a statutory authority of the Commonwealth; or (c) an employee of a Commonwealth company; or (d) the holder of a full‑time office under a law of the Commonwealth. Note: A Board member is not an employee of the Commonwealth. A Board member holds a part‑time office under a law of the Commonwealth. 39 Application of the Corporations Act 2001 (1) The Board is taken to be an exempt public authority for the purposes of the Corporations Act 2001. (2) To avoid doubt, the Board is taken to be an instrumentality of the Crown in right of the Commonwealth for the purposes of section 5A of the Corporations Act 2001. Division 3—Terms and conditions for Board members 40 Term of appointment and related matters for Board members (1) A Board member is to be appointed on a part‑time basis. (2) A Board member holds office for the period that is specified in the instrument of appointment. The period must not exceed 5 years. Note: A Board member may be reappointed: see section 33AA of the Acts Interpretation Act 1901. 41 Remuneration and allowances of Board members (1) A Board member is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the Board member is to be paid the remuneration that is determined by the responsible Ministers. (2) A Board member is to be paid the allowances that are prescribed. (3) This section has effect subject to the Remuneration Tribunal Act 1973. 42 Leave of absence of Board members (1) The nominated Minister may grant leave of absence to the Chair on the terms and conditions that the nominated Minister determines. (2) The Chair may grant leave of absence to another Board member on the terms and conditions that the Chair determines. 43 Resignation of Board members A Board member may resign his or her appointment by giving the responsible Ministers a written resignation. 44 Termination of appointment of Board members (1) The responsible Ministers may terminate the appointment of a Board member for misbehaviour or physical or mental incapacity. (2) The responsible Ministers may terminate the appointment of a Board member if: (a) the Board member: (i) becomes bankrupt; or (ii) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or (iii) compounds with his or her creditors; or (iv) makes an assignment of his or her remuneration for the benefit of his or her creditors; or (b) the Board member is absent, except on leave of absence, from 3 consecutive meetings of the Board; or (c) the Board member contravenes section 56, 57, 58, 59, 60, 61 or 62; or (d) the Board member fails, without reasonable excuse, to comply with section 68, 69 or 71; or (e) the responsible Ministers are satisfied that the performance of the Board member has been unsatisfactory for a significant period. 45 Other terms and conditions of Board members A Board member holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the responsible Ministers. 46 Acting Board members Acting Chair (1) The nominated Minister may appoint a person to act as the Chair: (a) during a vacancy in the office of Chair, whether or not an appointment has previously been made to the office; or (b) during any period, or during all periods, when the Chair is absent from duty or Australia, or is, for any reason, unable to perform the duties of the office. Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901. Acting Board member (other than the Chair) (2) The nominated Minister may appoint a person to act as a Board member (other than the Chair): (a) during a vacancy in the office of a Board member (other than the Chair), whether or not an appointment has previously been made to the office; or (b) during any period, or during all periods, when a Board member (other than the Chair) is absent from duty or Australia, or is, for any reason, unable to perform the duties of the office. Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901. Qualifications (3) A person is not eligible for appointment to act as: (a) the Chair; or (b) a Board member (other than the Chair); unless the person is eligible for appointment as a Board member. Note: See subsections 38(3) and (4). Division 4—Meetings 47 Holding of meetings (1) The Board is to hold such meetings as are necessary for the performance of its functions. (2) The Chair: (a) may convene a meeting at any time; and (b) must convene a meeting within 30 days after receiving a written request from another Board member. Note: See also section 33B of the Acts Interpretation Act 1901 (participation in meetings by telephone etc.). 48 Who is to preside at a meeting (1) The Chair is to preside at all meetings at which he or she is present. (2) If the Chair is not present at a meeting: (a) a Board member nominated by the Chair is to preside; or (b) if no Board member is so nominated—the Board members present are to elect one of their number to preside. 49 Quorum (1) At a meeting, 5 Board members form a quorum. (2) Despite subsection (1), if: (a) section 71 prevents one or more Board members from participating in the deliberations, or decisions, of the Board with respect to a particular matter; and (b) as a result, there is no longer a quorum present; and (c) there are in attendance at least 3 other Board members who would be counted in determining whether a quorum is present; those other Board members constitute a quorum for the purpose of any deliberation or decision at that meeting with respect to that matter. 50 Voting (1) Decisions at a meeting must be affirmed by a majority of votes of Board members voting. (2) The Board member presiding at a meeting has a deliberative vote and, in the event of an equality of votes, also has a casting vote. 51 Records of meetings The Board must keep accurate records of all its meetings. Division 5—Resolutions without meetings 52 Resolutions without meetings (1) A resolution is taken to have been passed at a meeting of the Board if: (a) the Board has determined: (i) that resolutions may be passed in accordance with this section; and (ii) the method by which Board members are to indicate agreement with a resolution proposed to be passed in accordance with this section; and (b) without meeting, a majority of the Board members indicate agreement with the resolution in accordance with the method determined by the Board; and (c) the majority would have constituted a quorum at a meeting of the Board; and (d) either: (i) all the Board members were informed of the resolution; or (ii) reasonable efforts were made to inform all the Board members of the resolution. (2) Paragraph (1)(b) does not apply to a Board member who would have been prevented by section 71 from deliberating on the resolution if the resolution had been put to a meeting of the Board. 53 Record of resolutions The Board must keep a record of resolutions passed in accordance with section 52. Division 6—Reporting obligations 54 Nominated Minister may require Board to prepare reports or give information Reports (1) The nominated Minister may, by written notice given to the Board, require the Board to: (a) prepare a report about one or more specified matters relating to the performance of the Board's functions under this Act; and (b) give copies of the report to the nominated Minister within the period specified in the notice. Information (2) The nominated Minister may, by written notice given to the Board, require the Board to: (a) prepare a document setting out specified information relating to the performance of the Board's functions under this Act; and (b) give copies of the document to the nominated Minister within the period specified in the notice. Compliance (3) The Board must comply with a requirement under subsection (1) or (2). Publication of reports and documents (4) The nominated Minister may cause to be published (whether on the internet or otherwise): (a) a report under subsection (1); or (b) a document under subsection (2). Reports and documents (5) A report under subsection (1) is not a legislative instrument. (6) A document under subsection (2) is not a legislative instrument. 55 Keeping the responsible Ministers informed etc. (1) The Board must keep the responsible Ministers informed of the operations of the Board. (2) The Board must give the nominated Minister such reports, documents and information in relation to those operations as are appropriate. (3) Subsections (1) and (2) do not apply to the operations of the Board under: (aa) the Future Drought Fund Act 2019; and (b) the DisabilityCare Australia Fund Act 2013; and (ba) the Disaster Ready Fund Act 2019; and (bb) the Housing Australia Future Fund Act 2023; and (c) the Medical Research Future Fund Act 2015; and (d) the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018. Division 6A—Periodic investment reports 55A Periodic investment reports (1) The reporting rules may require the Board: (a) to prepare a periodic investment report for each reporting day; and (b) to make the report available on the internet throughout the period (the publication period) ascertained in accordance with the reporting rules. (2) The publication period must not begin until at least 90 days have elapsed after the reporting day concerned. (3) The reporting rules may empower the Board to make a periodic investment report available on the internet before the start of the publication period concerned. (4) For the purposes of this section, periodic investment report for a reporting day means a report that: (a) relates to the investments held by or on behalf of the Board (whether under this Act or any other Act) as at the end of the reporting day; and (b) sets out such information as is specified in the reporting rules. (5) If the reporting rules prescribe the way in which information must be set out in a periodic investment report, the information must be set out in a periodic investment report in accordance with the reporting rules. (6) For the purposes of this section, reporting day means a day ascertained in accordance with the reporting rules. (7) A reporting day must not occur before the commencement of this section. (8) The period: (a) beginning at the start of a reporting day; and (b) ending at the start of the next reporting day; must be at least 6 months. 55B Reporting rules (1) The nominated Minister may, by legislative instrument, make rules (reporting rules) prescribing matters required or permitted by this Division to be prescribed by the reporting rules. (2) The nominated Minister must take all reasonable steps to ensure that the first set of reporting rules are made as soon as practicable after the commencement of this Division. (3) If the first set of reporting rules have commenced on a particular day, the nominated Minister must take all reasonable steps to ensure that reporting rules are in force at all times after that day. 55C Board to be consulted on reporting rules (1) Before making or amending reporting rules, the nominated Minister must: (a) send the draft reporting rules or amendments to the Board; and (b) invite the Board to make a submission to the nominated Minister on the draft reporting rules or amendments, as the case may be, within a time limit specified by the nominated Minister; and (c) consider any submission that is received from the Board within that time limit. (2) If: (a) the nominated Minister makes or amends reporting rules; and (b) the Board made a submission to the nominated Minister on a draft of the reporting rules or amendments, as the case may be, within the time limit specified by the nominated Minister; the submission is to be tabled in each House of the Parliament with the reporting rules or amendments, as the case may be. Note: For tabling of the reporting rules or amendments, see section 38 of the Legislation Act 2003. (3) A time limit specified under this section must be reasonable. Division 7—Duties of Board members etc. Subdivision A—Civil obligations and criminal offences 56 Care and diligence—civil obligation (1) A Board member must exercise his or her powers and discharge his or her duties with the degree of care and diligence that a reasonable person would exercise if he or she: (a) were a Board member in the Board's circumstances; and (b) occupied the office held by, and had the same responsibilities within the Board as, the Board member. Note: This is a civil penalty provision which is enforced under the Regulatory Powers (Standard Provisions) Act 2014 (see Subdivision C of this Division). Civil penalty: 2,000 penalty units. Business judgment rule (2) A Board member who makes a business judgment is taken to meet the requirements of subsection (1), and their equivalent duties at common law and in equity, in respect of the judgment if he or she: (a) makes the judgment in good faith for a proper purpose; and (b) does not have a material personal interest in the subject matter of the judgment; and (c) informs himself or herself about the subject matter of the judgment to the extent he or she reasonably believes to be appropriate; and (d) rationally believes that the judgment is in the best interests of performing the functions of the Board. The Board member's belief that the judgment is in the best interests of performing the functions of the Board is a rational one unless the belief is one that no reasonable person in his or her position would hold. 57 Good faith—civil obligation A Board member must exercise his or her powers and discharge his or her duties: (a) in good faith in the best interests of performing the functions of the Board; and (b) for a proper purpose. Note: This is a civil penalty provision which is enforced under the Regulatory Powers (Standard Provisions) Act 2014 (see Subdivision C of this Division). Civil penalty: 2,000 penalty units. 58 Use of position—civil obligation A Board member or a member of the staff of the Agency must not improperly use his or her position to: (a) gain an advantage for himself or herself or someone else; or (b) cause detriment to the Board's ability to perform its functions; or (c) cause detriment to another person. Note: This is a civil penalty provision which is enforced under the Regulatory Powers (Standard Provisions) Act 2014 (see Subdivision C of this Division). Civil penalty: 2,000 penalty units. 59 Use of information—civil obligation A person who obtains information because he or she is, or has been, a Board member or a member of the staff of the Agency must not improperly use the information to: (a) gain an advantage for himself or herself or someone else; or (b) cause detriment to the Board's ability to perform its functions; or (c) cause detriment to another person. Note 1: This duty continues after the person stops being a Board member or a member of the staff of the Agency. Note 2: This is a civil penalty provision which is enforced under the Regulatory Powers (Standard Provisions) Act 2014 (see Subdivision C of this Division). Civil penalty: 2,000 penalty units. 60 Good faith—criminal offence A Board member commits an offence if he or she: (a) is reckless; or (b) is intentionally dishonest; and fails to exercise his or her powers and discharge his or her duties: (c) in good faith in what he or she believes to be in the best interests of the performance of the functions of the Board; or (d) for a proper purpose. Penalty: Imprisonment for 5 years or 2,000 penalty units, or both. 61 Use of position—criminal offence A Board member or a member of the staff of the Agency commits an offence if he or she uses his or her position dishonestly: (a) with the intention of: (i) directly or indirectly gaining an advantage for himself or herself or someone else; or (ii) causing detriment to the ability of the Board to perform its functions; or (iii) causing detriment to another person; or (b) recklessly as to whether the use may result in: (i) him or her or someone else directly or indirectly gaining an advantage; or (ii) causing detriment to the ability of the Board to perform its functions; or (iii) causing detriment to another person. Penalty: Imprisonment for 5 years or 2,000 penalty units, or both. 62 Use of information—criminal offence A person who obtains information because he or she is, or has been, a Board member or a member of the staff of the Agency commits an offence if he or she uses the information dishonestly: (a) with the intention of: (i) directly or indirectly gaining an advantage for himself or herself or someone else; or (ii) causing detriment to the ability of the Board to perform its functions; or (iii) causing detriment to another person; or (b) recklessly as to whether the use may result in: (i) him or her or someone else directly or indirectly gaining an advantage; or (ii) causing detriment to the ability of the Board to perform its functions; or (iii) causing detriment to another person. Penalty: Imprisonment for 5 years or 2,000 penalty units, or both. Subdivision B—Other provisions relating to civil penalty provisions and criminal offences 63 Compliance with statutory duties (1) A Board member does not contravene section 57, 58 or 59, or commit an offence against section 60, 61 or 62, by doing an act that: (a) another provision of this Act; or (aa) the Future Drought Fund Act 2019; or (c) the DisabilityCare Australia Fund Act 2013; or (ca) the Disaster Ready Fund Act 2019; or (cb) the Housing Australia Future Fund Act 2023; or (d) the Medical Research Future Fund Act 2015; or (e) the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018; requires the Board member to do. (2) The Chair does not contravene section 57, 58 or 59, or commit an offence against section 60, 61 or 62, by doing an act that: (a) another provision of this Act; or (aaa) the Future Drought Fund Act 2019; or (ab) the DisabilityCare Australia Fund Act 2013; or (aba) the Disaster Ready Fund Act 2019; or (abb) the Housing Australia Future Fund Act 2023; or (ac) the Medical Research Future Fund Act 2015; or (ad) the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018; or (b) the Public Governance, Performance and Accountability Act 2013; or (c) rules or any other legislative instrument made under the Public Governance, Performance and Accountability Act 2013; requires the Chair to do. 64 Interaction of sections 56 to 62 with other laws etc. Sections 56 to 62: (a) have effect in addition to, and not in derogation of, any rule of law relating to the duty or liability of a person because of his or her office as a Board member or employment in relation to the Agency; and (b) do not prevent the commencement of proceedings for a breach of duty, or in respect of a liability, referred to in paragraph (a). This section does not apply to subsection 56(2) to the extent to which it operates on the duties at common law and in equity that are equivalent to the requirements of subsection 56(1). 65 Reliance on information or advice provided by others If: (a) a Board member relies on information, or professional or expert advice, given or prepared by: (i) a member of the staff of the Agency whom the Board member believes on reasonable grounds to be reliable and competent in relation to the matters concerned; or (ii) a professional adviser or expert in relation to matters that the Board member believes on reasonable grounds to be within the person's professional or expert competence; or (iii) another Board member in relation to matters within the Board member's authority; or (iv) a committee of Board members on which the Board member did not serve in relation to matters within the committee's authority; and (b) the reliance was made: (i) in good faith; and (ii) after making an independent assessment of the information or advice, having regard to the Board member's knowledge of the Board and the complexity of the structure and operations of the Board; and (c) the reasonableness of the Board member's reliance on the information or advice arises in proceedings brought to determine