{"id":"F2014L00971","name":"DisabilityCare Australia Fund Investment Mandate Directions 2014","slug":"disabilitycare-australia-fund-investment-mandate-directions-2014","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":92100,"registerId":"commonwealth-F2014L00971-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"DisabilityCare Australia Fund Investment Mandate Directions 2014","content":"![](image.001.png)\n\nDisabilityCare Australia Fund Investment Mandate Directions 20141\n\nDisabilityCare Australia Fund Act 2013\n\nWe, J.B. HOCKEY, Treasurer, and MATHIAS HUBERT PAUL CORMANN, Minister for Finance, give these Directions under subsection 29(1) of the DisabilityCare Australia Fund Act 2013.\n\nDated 1 JULY 2014\n\nJ.B. HOCKEY MATHIAS HUBERT PAUL CORMANN\n\nTreasurer Minister for Finance\n\nPart 1 Preliminary\n\n1 Name of Directions\n\nThese Directions are the DisabilityCare Australia Fund Investment Mandate Directions 2014.\n\n2 Commencement\n\nThese Directions commence on the 15th day after they are given.\n\n> Note Section 42 of the Legislative Instruments Act 2003 (which deals with the disallowance of legislative instruments) does not apply to this instrument: see section 44 of that Act. Part 6 of that Act (which deals with the sunsetting of legislative instruments) does not apply to this instrument: see section 54 of that Act.\n\n3 Definitions\n\nIn these Directions:\n\n> Act means the DisabilityCare Australia Fund Act 2013.\n\n> Board means the Future Fund Board of Guardians.\n\n> Fund means the DisabilityCare Australia Fund.\n\n> responsible Ministers has the same meaning as in the Act.\n\n4 Object of these Directions\n\n(1) The DisabilityCare Australia Fund is a financing source to enhance the Commonwealth’s ability to reimburse the States and Territories and the Commonwealth for the expenditure incurred in relation to the National Disability Insurance Scheme Act 2013.\n\n(2) The object of these Directions is to give guidance to the Board in relation to its investment strategy for the Fund. The Board is required by the Act to seek to maximise the return earned on the Fund, consistent with international best practice for institutional investment, subject to its obligations under the Act and any directions given by the responsible Ministers under the Act.\n\n(3) These Directions are given under subsection 29(1) of the Act to articulate the Government’s expectations for how the Fund will be invested and managed by the Board.\n\n(4) The responsible Ministers may review these Directions, in consultation with the Board, including after any request by the Board in the context of any material changes to either the prevailing investment conditions or the cashflow position of the Fund.\n\nPart 2 Directions\n\n5 Investment Objectives\n\n(1) The Board should invest in such a way as to minimise the probability of capital losses over a 12 month horizon.\n\n(2) Subject to the Board’s obligations under section 23 of the Act and to (1) above, the Board is to adopt a benchmark return on the Fund of the Australian three month bank bill swap rate + 0.3 per cent per annum, calculated on a rolling 12-month basis (net of fees).\n\n6 The Board must consider impacts from its investment strategy\n\nIn undertaking its investment activities, the Board must act in a way that:\n\n(1) minimises the potential to effect any abnormal change in the volatility or efficient operation of Australian financial markets; and\n\n(2) is unlikely to cause any diminution of the Commonwealth Government’s reputation in Australian and international financial markets.\n\n> Note\n\n> Note: 1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The Directions remain tightly focused on their original purpose: providing investment guidance for the DisabilityCare Australia Fund. The scope has not expanded beyond setting conservative investment parameters for the NDIS financing vehicle."},"complexity_factors":["Only 4 defined terms in the interpretation section (Act, Board, Fund, responsible Ministers)","No cross-references to other legislation beyond the parent Act and standard Legislative Instruments Act provisions","Simple conditional structure: one primary objective (minimise capital losses) with a single benchmark target","No nested exceptions or complex procedural requirements","Total length is approximately 2 pages with clear section headings","Straightforward mandate: capital preservation first, modest return second"],"plain_english_summary":"These Directions tell the Future Fund Board how to invest the DisabilityCare Australia Fund—a $20+ billion reserve meant to help pay for the NDIS. They instruct the Board to prioritise capital preservation (minimise the chance of loss over any 12‑month period), seek a very conservative target return (bank bill rate + 0.3% p.a.), and avoid market disruption or harming the government’s reputation.\n\nThey matter to the Board, people with disabilities (as beneficiaries), and states/territories reimbursed from the Fund."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"The Directions narrow and specify the Fund’s operational priorities compared with the Board’s broader return‑maximisation mandate in the Act. They impose an explicit short‑term capital preservation priority (12‑month horizon), set a concrete, modest benchmark return metric, and add qualitative limits on market impact and reputational risk. Those constraints alter how the Board must balance liquidity, risk and return when allocating assets and meeting cashflow requirements."},"complexity_factors":["Tension between short‑term capital preservation (minimise probability of capital losses over 12 months) and the Board’s statutory duty to maximise returns under the Act (creates trade‑offs in asset allocation).","Precise benchmark formula (Australian three‑month bank bill swap rate + 0.3% p.a., rolling 12 months, net of fees) requires agreed measurement conventions and fee accounting for performance assessment.","Qualitative constraints (avoid abnormal market volatility and reputational diminution) are inherently subjective and require judgment, monitoring and documentation.","Interaction with Fund cashflow needs and an explicit review/consultation process with responsible Ministers introduces operational coordination and timing complexity.","Institutional roles: the Directions bind the Future Fund Board of Guardians while preserving its investment discretion, creating implementation choices about how to operationalise the guidance.","Instrument permanence: specified exceptions to disallowance/sunsetting under the Legislative Instruments Act increase regulatory stability and reduce routine parliamentary oversight."],"plain_english_summary":"These Directions tell the Future Fund Board how to invest the DisabilityCare Australia Fund. They prioritise avoiding capital losses over a 12-month horizon and set a low benchmark return target (the Australian three‑month bank bill swap rate + 0.3% p.a., net of fees). The Board must also avoid causing abnormal market volatility or damage to the Commonwealth’s financial reputation. The Directions change how the Board balances short‑term capital preservation, return targets and market impact when managing the Fund."}},"importantCases":[],"_links":{"self":"/api/acts/disabilitycare-australia-fund-investment-mandate-directions-2014","history":"/api/acts/disabilitycare-australia-fund-investment-mandate-directions-2014/history","analysis":"/api/acts/disabilitycare-australia-fund-investment-mandate-directions-2014/analysis","conflicts":"/api/acts/disabilitycare-australia-fund-investment-mandate-directions-2014/conflicts","importantCases":"/api/acts/disabilitycare-australia-fund-investment-mandate-directions-2014/important-cases","documents":"/api/acts/disabilitycare-australia-fund-investment-mandate-directions-2014/documents"}}