Export Finance and Insurance Corporation Amendment (Finance) Act 2013

No. 30, 2013

An Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes

Export Finance and Insurance Corporation Amendment (Finance) Act 2013

No. 30, 2013

An Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes

[Assented to 30 March 2013]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Export Finance and Insurance Corporation Amendment (Finance) Act 2013.

2 Commencement

This Act commences on the day after this Act receives the Royal Assent.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Export Finance and Insurance Corporation Act 1991

1 Subsection 36(3)

Omit “(3)”.

2 Subsection 49(2)

Omit “(2)” (first occurring).

3 At the end of subsection 49(2) (before the note)

Add:

; and (d) any direction by the Minister under subsection 55A(2) for the payment of a dividend by EFIC in the financial year to which the target relates.

4 Subsection 54(8)

Repeal the subsection, substitute:

(8) EFIC’s called capital at any time must not exceed:

(a) $200,000,000; or

(b) if a greater amount is specified in a legislative instrument made by the Minister—that greater amount.

5 Section 55 (heading)

Before “dividends”, insert “annual”.

6 After section 55

Insert:

55A Payment of additional dividends to the Commonwealth

One‑off dividend

(1) EFIC must pay the Commonwealth a dividend of $200,000,000 before 30 June 2013.

Minister may direct payment of a specified dividend

(2) The Minister may, in writing, direct EFIC to pay the Commonwealth a specified dividend within a specified period.

(3) In giving a direction under subsection (2), the Minister must:

(a) have regard to:

(i) the policies of the Commonwealth Government; and

(ii) the general policy of EFIC in relation to the performance of its functions; and

(iii) such commercial considerations as the Minister considers appropriate; and

(b) be satisfied that the specified dividend is reasonable having regard to:

(i) the likely capital and reserves of EFIC at the time the direction is given; and

(ii) the expected liabilities, losses and claims of and against EFIC at that time.

(4) Before the Minister gives a direction under subsection (2), the Minister must:

(a) consult the Board about the matters referred to in subparagraphs (3)(a)(ii) and (b)(i) and (ii); and

(b) obtain the agreement of the Prime Minister, Treasurer and Finance Minister to the direction.

(5) EFIC must comply with a direction given under subsection (2).