Statutory Bodies Financial Arrangements Regulation 2019


Queensland Crest
Statutory Bodies Financial Arrangements Regulation 2019

1Short title

This regulation may be cited as the Statutory Bodies Financial Arrangements Regulation 2019.

2Entities that are not statutory bodies—Act, s 6

(1)For section 6(1)(j) of the Act, the entities stated in schedule 1, column 2, are declared not to be statutory bodies.
(2)The authorising Act for each entity is stated opposite the entity in column 1 of the schedule.

3Rate of interest—Act, s 23

For section 23(b) of the Act, interest is calculated on a daily basis using the Reserve Bank of Australia’s official cash rate for the day.

4Financial accommodation—Act, s 32

(1)For section 32(3) of the Act, an operating lease entered into by a statutory body, other than a grammar school or university, is a form of financial accommodation.
(2)Subsection (1) applies whether or not the operating lease is entered into by the statutory body when performing its functions.
(3)In this section—
grammar school see the Grammar Schools Act 2016, section 6.
university means each of the following universities—
(a)Central Queensland University established under the Central Queensland University Act 1998, section 4;
(b)Griffith University established under the Griffith University Act 1998, section 4;
(c)James Cook University established under the James Cook University Act 1997, section 4;
(d)Queensland University of Technology established under the Queensland University of Technology Act 1998, section 4;
(e)The University of Queensland established under the University of Queensland Act 1998, section 4;
(f)University of Southern Queensland established under the University of Southern Queensland Act 1998, section 4;
(g)University of the Sunshine Coast established under the University of the Sunshine Coast Act 1998, section 4.

5Statutory bodies that may borrow under the Act—Act, s 33

(1)The statutory bodies stated in schedule 2, column 2, are declared to be statutory bodies that may borrow under the Act, part 5.
(2)The authorising Act for each statutory body is stated opposite the body in column 1 of the schedule.

Note—

If a statutory body does not have a particular name or the name is difficult to locate in the authorising Act for the body, the relevant section in the authorising Act or other reference helpful to the reader is also stated in column 1.

6Allocation of investment powers to statutory bodies—Act, s 42

(1)For section 42(2) of the Act, this section allocates investment power to statutory bodies.
(2)Category 1 investment power is allocated to the statutory bodies stated in schedule 3, column 2.
(3)Category 2 investment power is allocated to the statutory bodies stated in schedule 4, column 2.
(4)Category 3 investment power is allocated to the statutory bodies stated in schedule 5, column 2.
(5)If section 42(3) of the Act applies to a statutory body, both the body and the relevant fund or funds are stated in column 2 of the relevant schedule.
(6)The authorising Act for each statutory body stated in schedule 3, 4 or 5 is stated opposite the body in column 1 of the schedule.

7Category 1 investment power—Act, s 44

For section 44(1)(d) of the Act, the prescribed investment arrangements are stated in schedule 6.

8Category 1 investment power—Act, s 44

(1)For section 44(1)(e) of the Act, the rating prescribed for an investment arrangement is—
(a)a rating by Fitch Ratings of F1+ or F1; or
(b)a rating by Moody’s Investors Service of Prime-1 (P-1); or
(c)a rating by Standard & Poor’s of A-1+, A-1, AAm or AAAm.
(2)In this section—
Fitch Ratings means Fitch Australia Pty Ltd ACN 081 339 184 or another entity that carries on the business of assigning credit ratings under the trading name Fitch Ratings.
Moody’s Investors Service means Moody’s Investors Service Pty Limited ACN 003 399 657 or another entity that carries on the business of assigning credit ratings under the trading name Moody’s Investors Service.
Standard & Poor’s means Standard & Poor’s (Australia) Pty Ltd ACN 007 324 852 or another entity that carries on the business of assigning credit ratings under the trading name Standard & Poor’s.

9Category 2 investment power—Act, s 45

For section 45(b)(iv) of the Act, the prescribed investment arrangements are stated in schedule 7.

10Category 2 investment power—Act, s 45

(1)For section 45(c) of the Act, the rating prescribed for an investment arrangement is—
(a)a rating by Fitch Ratings of AA, AA+ or AAA; or
(b)a rating by Moody’s Investors Service of Aa2, Aa1 or Aaa; or
(c)a rating by Standard & Poor’s of AA, AA+ or AAA.
(2)However, a rating mentioned in subsection (1)(b) is not prescribed for an investment arrangement if the arrangement applies to a bond mutual fund.
(3)In this section—
bond mutual fund means an investment arrangement structured as a unit investment trust—
(a)with underlying assets that are—
(i)in a range of short to medium and long-term securities, with a predominant emphasis on fixed term securities; and
(ii)valued on a mark-to-market basis; and
(b)the units in which are redeemable at a value based on the market valuation of the underlying assets of the fund.

Note—

Bond mutual funds are to be distinguished from cash mutual funds. For cash mutual funds, the underlying assets are predominantly in short-term securities. The units in the relevant unit investment trust are redeemable at par or face value on an at call basis. Income from the investment is a return paid separately as appropriate.
Fitch Ratings see section 8(2).
Moody’s Investors Service see section 8(2).
Standard & Poor’s see section 8(2).

11Statutory bodies that may enter into derivative transactions—Act, s 53

(1)For section 53(2) of the Act, the statutory bodies stated in schedule 8, column 2, are prescribed as statutory bodies that may enter into derivative transactions.
(2)The authorising Act for each statutory body is stated opposite the body in column 1 of the schedule.

12Periodic reports to Treasurer about derivative transactions—Act, s 55

(1)This section prescribes, for section 55(1) of the Act, when a statutory body must give the Treasurer a report about a derivative transaction.
(2)If the duration of the derivative transaction is 90 days or more, the statutory body must give a report—
(a)for the duration of the transaction—
(i)at the end of a period, of not more than 3 months, decided by the Treasurer and stated in the Treasurer’s approval for the transaction; or
(ii)if subparagraph (i) does not apply—on the first day of each quarter; and
(b)on the first day of the calendar month immediately after completion of the transaction.
(3)However, if, under subsection (2)(a)(ii), the statutory body would be required to give a report on a day that is less than 14 days after the day the derivative transaction was entered into, the statutory body is not required to give the report.
(4)If the duration of the derivative transaction is less than 90 days, the statutory body must give a report on the first day of the calendar month immediately after completion of the transaction.
(5)In this section—
quarter means a period of 3 months starting on 1 January, 1 April, 1 July or 1 October.
Treasurer’s approval, for a derivative transaction, means the approval given by the Treasurer under part 9, division 2 or 3 of the Act for a statutory body to enter into the transaction.

13Prescribed conditions of special guarantee—Act, s 82

For section 82(3) of the Act, the conditions prescribed for special guarantees are stated in schedule 9.

14Repeal

The Statutory Bodies Financial Arrangements Regulation 2007, SL No. 209 is repealed.

Schedule 1 Entities that are not statutory bodies

section 2

Column 1

Column 2

Authorising Act

Entity

Aboriginal Land Act 1991

•  a land trust formed under part 3 of the Aboriginal Land Regulation 2011
•  an Aboriginal land claim association incorporated under the Aboriginal Land Regulation 2011

Torres Strait Islander Land Act 1991

•  a land trust formed under part 3 of the Torres Strait Islander Land Regulation 2011

Schedule 2 Statutory bodies that may borrow under part 5 of the Act

section 5

Column 1

Column 2

Authorising Act

Statutory body

Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984

Community Enterprise Queensland

Central Queensland University Act 1998

Central Queensland University

City of Brisbane Act 2010

Brisbane City Council

Cross River Rail Delivery Authority Act 2016

Cross River Rail Delivery Authority

Economic Development Act 2012

Minister for Economic Development Queensland

Education (General Provisions) Act 2006

parents and citizens associations

Education (Queensland College of Teachers) Act 2005

Queensland College of Teachers

Education (Queensland Curriculum and Assessment Authority) Act 2014

Queensland Curriculum and Assessment Authority

Food Production (Safety) Act 2000

Safe Food Production QLD

Grammar Schools Act 2016 (see section 7)

boards of trustees

Griffith University Act 1998

Griffith University

Hospital Foundations Act 2018 (see section 27)

any board established under the authorising Act

James Cook University Act 1997

James Cook University

Land Act 1994 (see section 44)

trustees of trust land

Legal Aid Queensland Act 1997

Legal Aid Queensland

Local Government Act 2009 (see section 297)

a corporate entity

Local Government Act 2009

local governments

Mt. Gravatt Showgrounds Act 1988

Mt Gravatt Showgrounds Trust

National Injury Insurance Scheme (Queensland) Act 2016

National Injury Insurance Agency, Queensland

Queensland Agricultural Training Colleges Act 2005

Queensland Agricultural Training Colleges

Queensland Institute of Medical Research Act 1945

The Council of The Queensland Institute of Medical Research

Queensland Museum Act 1970

Board of the Queensland Museum

Queensland Performing Arts Trust Act 1977

Queensland Performing Arts Trust

Queensland Rail Transit Authority Act 2013

Queensland Rail

Queensland Theatre Company Act 1970

Queensland Theatre Company

Queensland University of Technology Act 1998

Queensland University of Technology

Racing Act 2002

Racing Queensland Board

Racing Integrity Act 2016

Queensland Racing Integrity Commission

River Improvement Trust Act 1940 (see section 4)

trusts

Rural and Regional Adjustment Act 1994

Queensland Rural and Industry Development Authority

South Bank Corporation Act 1989

South Bank Corporation

South-East Queensland Water (Distribution and Retail Restructuring) Act 2009 (see section 8)

any distributor-retailer established under the authorising Act

South East Queensland Water (Restructuring) Act 2007

Queensland Bulk Water Supply Authority

TAFE Queensland Act 2013

TAFE Queensland

Tourism and Events Queensland Act 2012

Tourism and Events Queensland

University of Queensland Act 1998

The University of Queensland

University of Southern Queensland Act 1998

University of Southern Queensland

University of the Sunshine Coast Act 1998

University of the Sunshine Coast

Water Act 2000

water authorities

Workers’ Compensation and Rehabilitation Act 2003

Workers’ Compensation Regulator

Schedule 3 Statutory bodies allocated category 1 investment power

section 6(2)

Column 1

Column 2

Authorising Act

Statutory body

Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984

Community Enterprise Queensland

Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984 (see section 57)

the banker

Ambulance Service Act 1991

local ambulance committees

Anti-Discrimination Act 1991

Queensland Human Rights Commission

Anzac Day Act 1995

Anzac Day Trust

Biosecurity Act 2014

Darling Downs–Moreton Rabbit Board

Crime and Corruption Act 2001

Crime and Corruption Commission

Education (General Provisions) Act 2006

parents and citizens associations

Education (Queensland Curriculum and Assessment Authority) Act 2014

Queensland Curriculum and Assessment Authority

Family and Child Commission Act 2014

Queensland Family and Child Commission

Family Responsibilities Commission Act 2008

Family Responsibilities Commission

Food Production (Safety) Act 2000

Safe Food Production QLD

Land Act 1994 (see section 44)

trustees of trust land

Local Government Act 2009 (see section 297)

a corporate entity

Local Government Act 2009

local governments, other than—

•  Brisbane City Council
•  Cairns Regional Council
•  Gold Coast City Council
•  Ipswich City Council
•  Logan City Council
•  Moreton Bay Regional Council
•  Sunshine Coast Regional Council

Major Sports Facilities Act 2001

Stadiums Queensland

New South Wales–Queensland Border Rivers Act 1946

The Dumaresq–Barwon Border Rivers Commission

Queensland Agricultural Training Colleges Act 2005

Queensland Agricultural Training Colleges

Queensland Competition Authority Act 1997

Queensland Competition Authority

Racing Act 2002

Racing Queensland Board

Racing Integrity Act 2016

Queensland Racing Integrity Commission

River Improvement Trust Act 1940 (see section 4)

trusts

South Bank Corporation Act 1989

South Bank Corporation

Tourism and Events Queensland Act 2012

Tourism and Events Queensland

Trade and Investment Queensland Act 2013

Trade and Investment Queensland

Valuers Registration Act 1992

Valuers Registration Board of Queensland

Water Act 2000

water authorities

Schedule 4 Statutory bodies allocated category 2 investment power

section 6(3)

Column 1

Column 2

Authorising Act

Statutory body

Architects Act 2002

Board of Architects of Queensland

Building and Construction Industry (Portable Long Service Leave) Act 1991

Building and Construction Industry (Portable Long Service Leave) Authority

Contract Cleaning Industry (Portable Long Service Leave) Act 2005

Contract Cleaning Industry (Portable Long Service Leave) Authority

Education (Queensland College of Teachers) Act 2005

Queensland College of Teachers

Hospital and Health Boards Act 2011

Hospital and Health Services

Libraries Act 1988

Library Board of Queensland

Local Government Act 2009

Cairns Regional Council

Local Government Act 2009

Gold Coast City Council

Local Government Act 2009

Ipswich City Council

Local Government Act 2009

Logan City Council

Local Government Act 2009

Moreton Bay Regional Council

Local Government Act 2009

Sunshine Coast Regional Council

Motor Accident Insurance Act 1994

Motor Accident Insurance Commission

Motor Accident Insurance Act 1994

Nominal Defendant

National Injury Insurance Scheme (Queensland) Act 2016

National Injury Insurance Agency, Queensland

Professional Engineers Act 2002

Board of Professional Engineers of Queensland

Queensland Art Gallery Act 1987

Queensland Art Gallery Board of Trustees

Queensland Building and Construction Commission Act 1991

Queensland Building and Construction Commission

Residential Tenancies and Rooming Accommodation Act 2008

Residential Tenancies Authority

Rural and Regional Adjustment Act 1994

Queensland Rural and Industry Development Authority

South-East Queensland Water (Distribution and Retail Restructuring) Act 2009 (see section 8)

any distributor-retailer established under the authorising Act

Surveyors Act 2003

Surveyors Board of Queensland

Workers’ Compensation and Rehabilitation Act 2003

WorkCover Queensland

Workers’ Compensation and Rehabilitation Act 2003

Workers’ Compensation Regulator

Schedule 5 Statutory bodies allocated category 3 investment power

section 6(4)

Column 1

Column 2

Authorising Act

Statutory body

Central Queensland University Act 1998

Central Queensland University

City of Brisbane Act 2010

Brisbane City Council

Cross River Rail Delivery Authority Act 2016

Cross River Rail Delivery Authority

Economic Development Act 2012

Minister for Economic Development Queensland

Grammar Schools Act 2016 (see section 7)

boards of trustees

Griffith University Act 1998

Griffith University

Hospital Foundations Act 2018 (see section 27)

any board established under the authorising Act

James Cook University Act 1997

James Cook University

Legal Aid Queensland Act 1997

Legal Aid Queensland

Legal Profession Act 2007

Queensland Law Society Incorporated—

•  Legal Practitioners’ Fidelity Guarantee Fund

Newstead House Trust Act 1939

Board of Trustees of Newstead House

Queensland Institute of Medical Research Act 1945

The Council of The Queensland Institute of Medical Research—

•  General Fund under section 13

Queensland Museum Act 1970

Board of the Queensland Museum

Queensland Performing Arts Trust Act 1977

Queensland Performing Arts Trust

Queensland Rail Transit Authority Act 2013

Queensland Rail

Queensland Theatre Company Act 1970

Queensland Theatre Company

Queensland University of Technology Act 1998

Queensland University of Technology

South East Queensland Water (Restructuring) Act 2007

Queensland Bulk Water Supply Authority

Supreme Court Library Act 1968

Supreme Court Library Committee

TAFE Queensland Act 2013

TAFE Queensland

University of Queensland Act 1998

The University of Queensland

University of Southern Queensland Act 1998

University of Southern Queensland

University of the Sunshine Coast Act 1998

University of the Sunshine Coast

Schedule 6 Prescribed investment arrangements for category 1 investment power

section 7

Part 1 Investment arrangements managed or offered by QIC

QIC Cash Fund

Part 2 Investment arrangements managed or offered by QTC

QTC Capital Guaranteed Cash Fund
QTC Fixed Rate Deposit (up to 12 months)
QTC Working Capital Facility

Schedule 7 Prescribed investment arrangements for category 2 investment power

section 9

Part 1 Investment arrangements managed or offered by QIC

QIC Australian Fixed Interest Fund
QIC Bond Plus Fund
QIC Cash Enhanced Fund
QIC Cash Fund
QIC Diversified Fund (previously known as the QIC Growth Fund)
QIC GFI Inflation Plus Fund

Part 2 Investment arrangements managed or offered by QTC

QTC Capital Guaranteed Cash Fund
QTC Fixed Rate Deposit (up to 3 years)
QTC Working Capital Facility

Schedule 8 Statutory bodies that may enter into derivative transactions

section 11

Column 1

Column 2

Authorising Act

Statutory body

Building and Construction Industry (Portable Long Service Leave) Act 1991

Building and Construction Industry (Portable Long Service Leave) Authority

Central Queensland University Act 1998

Central Queensland University

City of Brisbane Act 2010

Brisbane City Council

Commonwealth Games Arrangements Act 2011

Gold Coast 2018 Commonwealth Games Corporation

Cross River Rail Delivery Authority Act 2016

Cross River Rail Delivery Authority

Griffith University Act 1998

Griffith University

James Cook University Act 1997

James Cook University

Local Government Act 2009

Gold Coast City Council

National Injury Insurance Scheme (Queensland) Act 2016

National Injury Insurance Agency, Queensland

Queensland Performing Arts Trust Act 1977

Queensland Performing Arts Trust

Queensland Rail Transit Authority Act 2013

Queensland Rail

Queensland University of Technology Act 1998

Queensland University of Technology

Residential Tenancies and Rooming Accommodation Act 2008

Residential Tenancies Authority

South-East Queensland Water (Distribution and Retail Restructuring) Act 2009 (see section 8)

any distributor-retailer established under the authorising Act

South East Queensland Water (Restructuring) Act 2007

Queensland Bulk Water Supply Authority

Tourism and Events Queensland Act 2012

Tourism and Events Queensland

Trade and Investment Queensland Act 2013

Trade and Investment Queensland

University of Queensland Act 1998

The University of Queensland

University of Southern Queensland Act 1998

University of Southern Queensland

University of the Sunshine Coast Act 1998

University of the Sunshine Coast

Water Act 2000

Gladstone Area Water Board

Workers’ Compensation and Rehabilitation Act 2003

WorkCover Queensland

Schedule 9 Special guarantee conditions under section 82(3) of the Act

section 13

For section 82(3) of the Act, this schedule sets out the conditions of a special guarantee for a loan by QTC to an entity.
1In this guarantee—default amount means the amount of the guaranteed moneys the Treasurer is requested to pay to QTC in a notice under clause 2(4).guaranteed moneys means all moneys that are payable, owing but not payable or contingently owing, by the entity to QTC under the loan.this guarantee means these conditions.
2(1)If the entity defaults in the due and punctual payment of the whole or part of the guaranteed moneys, QTC may serve a notice (a default notice) upon the entity.
(2)If QTC serves a default notice upon the entity, QTC must within 3 days of the service give a copy of the notice to the Treasurer.
(3)In the default notice, QTC must—
(a)specify the default; and
(b)require the entity to remedy the default.
(4)If the entity does not remedy the default within 14 days after receiving the default notice, QTC may serve a written notice upon the Treasurer.
(5)In the notice, QTC must—
(a)certify the default has occurred and remains unremedied; and
(b)request the Treasurer to pay the amount of the unremedied default to QTC.
3(1)As soon as practicable after receiving a notice from QTC under clause 2(4), the Treasurer must pay the default amount to QTC from funds or reserves that the Treasurer considers appropriate.
(2)If the Treasurer is obliged or elects to seek an appropriation from Parliament before paying the whole or part of the default amount out of a particular fund or reserve, the Treasurer must promptly seek the appropriation.
4The Treasurer may at any time direct QTC not to provide—
(a)any further financial accommodation to the entity; or
(b)financial accommodation to the entity in excess of a specified aggregate amount.
5If QTC provides financial accommodation to the entity contrary to the Treasurer’s direction under clause 4—
(a)the financial accommodation is not part of the loan, or another loan to which section 82 of the Statutory Bodies Financial Arrangements Act 1982 applies, and the Treasurer has no obligation to QTC under this guarantee for the financial accommodation; and
(b)any payments made by or for the entity to QTC must be applied by QTC firstly in reduction of the loan for which the Treasurer (for the State) is liable under this guarantee.
6The Treasurer is under no obligation to pay the default amount to QTC if—
(a)QTC or the entity materially contravened the Statutory Bodies Financial Arrangements Act 1982, the Queensland Treasury Corporation Act 1988 or the entity’s authorising Act in relation to the loan; or
(b)the approvals required under the Statutory Bodies Financial Arrangements Act 1982, the Queensland Treasury Corporation Act 1988 or the entity’s authorising Act to enter into the loan were not obtained or any conditions of the approval were not materially complied with; or
(c)QTC has materially contravened this guarantee.
7(1)QTC may grant the entity any time, waiver, forbearance or other concession without discharging or limiting the rights of QTC under this guarantee.
(2)On each occasion QTC grants any time, waiver, forbearance or other concession to the entity, QTC must give the Treasurer notice of—
(a)the time, waiver, forbearance or other concession; and
(b)particulars of the default by the entity which resulted in the granting of the time, waiver, forbearance or other concession.
8(1)A failure to exercise, or any delay by QTC in exercising, any right or remedy under this guarantee does not operate as a waiver of the right or remedy.
(2)The exercise or partial exercise by QTC of a right or remedy does not prevent any further or other exercise of the right or remedy.
9QTC may not assign or transfer all or any part of its rights or obligations under this guarantee to a third party.
10The Treasurer does not incur any personal liability under this guarantee.
11On request by the Treasurer, QTC must give to the Treasurer any information about its transactions and dealings with the entity.
12A notice, communication, consent or direction that may be given by or to the Treasurer may be given by or to the Under Treasurer or a person acting in the position of the Under Treasurer.