58. Investment by the Commonwealth

(1) The Finance Minister or the Treasurer may, on behalf of the Commonwealth, invest in any authorised investment.

(2) For the purposes of investing under this section in securities of the Commonwealth, the Commonwealth is to be treated as if it were a separate legal entity to the entity issuing the securities.

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

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

(5) The proceeds of an investment of an amount debited from a special account must be credited to the special account.

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

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

(8) Any of the following are an authorised investment:

(a) in relation to both the Finance Minister and the Treasurer:

(i) securities of, or securities guaranteed by, the Commonwealth, a State or a Territory; or

(ii) a deposit with a bank, including a deposit evidenced by a certificate of deposit; or

(iii) any other form of investment prescribed by the rules;

(b) in relation to the Treasurer - debt instruments with an investment grade credit rating that:

(i) are issued or guaranteed by the government of a foreign country; or

(ii) are issued or guaranteed by a financial institution whose members consist of foreign countries (which may also include Australia); or

(iii) are denominated in Australian currency.

(9) An authorisation under subsection (6) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to it.

Related PGPA Rule provisions: 

Last updated: 19 April 2016