{"id":"C2004A05173","name":"Natural Heritage Trust of Australia Act 1997","slug":"natural-heritage-trust-of-australia-act-1997","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"76 of 1997","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7745,"registerId":"commonwealth-C2004A05173-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Introduction","content":"## Part 1—Introduction","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Natural Heritage Trust of Australia Act 1997.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences on the day on which it receives the Royal Assent.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Simplified outline","content":"#### 3 Simplified outline\n\n  The following is a simplified outline of this Act:\n\n• This Act establishes the Natural Heritage Trust of Australia Account.\n\n• The main source of money for the Account is $1.35 billion from the partial sale of Telstra.\n\n• The main objective of the establishment of the Account is to conserve, repair and replenish Australia’s natural capital infrastructure.\n\n• Amounts standing to the credit of the Account will be spent on the environment, sustainable agriculture and natural resources management.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"The Natural Heritage Trust of Australia Account","content":"## Part 2—The Natural Heritage Trust of Australia Account","sortOrder":4},{"sectionNumber":"4","sectionType":"section","heading":"Natural Heritage Trust of Australia Account","content":"#### 4 Natural Heritage Trust of Australia Account\n\n  There is continued in existence the Natural Heritage Trust of Australia Account.\n\n> Note: The Account was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999.","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Nature of the Account","content":"#### 5 Nature of the Account\n\n  The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Investments and income of the Account","content":"#### 6 Investments and income of the Account\n\n  Investments\n  (1) Amounts equal to income derived from the investment of an amount standing to the credit of the Account are to be credited to the Account.\n\n> Note: An amount standing to the credit of the Account may be invested in accordance with the Public Governance, Performance and Accountability Act 2013.\n\n  Fixed income—uninvested amounts\n  (2) Within 28 days after the end of a financial year, there is to be credited to the Account, in respect of the financial year, an amount equal to the fixed‑income percentage of the uninvested amount standing to the credit of the Account as at the end of the financial year.\n  Fixed‑income percentage\n  (3) For the purposes of the application of subsection (2) to a particular financial year, the fixed‑income percentage is:\n    (a) if the financial year begins on or before 1 July 2001:\n    (i) 8%; or\n    (ii) if the Finance Minister, by written instrument made within 28 days after the end of the financial year, determines a higher percentage—that higher percentage; or\n    (b) if the financial year begins on or after 1 July 2002:\n    (i) the percentage equal to the rate of interest earned by the Commonwealth as at the end of the financial year on deposits held with the Reserve Bank of Australia; or\n    (ii) if the Finance Minister, by written instrument made within 28 days after the end of the financial year, determines a higher percentage—that higher percentage.\n  Advances on account of fixed income\n  (4) During a financial year, the Finance Minister may, by written instrument, determine that a specified amount is to be credited to the Account by way of an advance on account of the amount that may be credited to the Account under subsection (2) in respect of the financial year. The determination has effect accordingly.\n  (5) For each $1 credited under subsection (4) in respect of a financial year, the amount credited under subsection (2) in respect of the financial year is to be reduced by $1.\n  (6) If, at the end of a financial year:\n    (a) the total amount credited to the Account under subsection (4) in respect of the financial year;\n  exceeds:\n    (b) the amount (if any) that would have been credited to the Account under subsection (2) in respect of the financial year if it were assumed that no amounts had been credited under subsection (4) in respect of the financial year;\n  an amount equal to the excess must be debited from the Account.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Amounts not held on trust","content":"#### 7 Amounts not held on trust\n\n  Amounts standing to the credit of the Account and amounts invested by debiting the Account are not held on trust (within the ordinary meaning of that expression).","sortOrder":8},{"sectionNumber":"Part 3","sectionType":"part","heading":"Purposes of the Account","content":"## Part 3—Purposes of the Account","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Purposes of the Account","content":"#### 8 Purposes of the Account\n\n  The purposes of the Account are as follows:\n    (a) the National Vegetation Initiative;\n    (b) the Murray‑Darling 2001 Project;\n    (c) the National Land and Water Resources Audit;\n    (d) the National Reserve System;\n    (e) the Coasts and Clean Seas Initiative;\n    (f) environmental protection (as defined by section 15);\n    (g) supporting sustainable agriculture (as defined by section 16);\n    (h) natural resources management (as defined by section 17);\n    (i) a purpose incidental or ancillary to any of the above purposes;\n    (j) the making of grants of financial assistance for any of the above purposes;\n    (k) an accounting transfer purpose (as defined by section 18).","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Debits of proceeds from the partial privatisation of Telstra and interest earned from the Account","content":"#### 9 Debits of proceeds from the partial privatisation of Telstra and interest earned from the Account\n\n  (1) Amounts standing to the credit of the Account that represents proceeds of the sale of shares in Telstra may only be debited for the following purposes:\n    (a) the National Vegetation Initiative;\n    (b) the Murray‑Darling 2001 Project;\n    (c) the National Land and Water Resources Audit;\n    (d) the National Reserve System;\n    (e) the Coasts and Clean Seas Initiative;\n    (f) environmental protection (as defined by section 15), being environmental protection that involves the carrying out of a project, or a program, the primary objective of which is to maintain or replenish Australia’s environmental infrastructure;\n    (g) supporting sustainable agriculture (as defined by section 16), being support that involves the carrying out of a project, or a program, the primary objective of which is to maintain or replenish Australia’s environmental infrastructure;\n    (h) natural resources management (as defined by section 17), being natural resources management that involves the carrying out of a project, or a program, the primary objective of which is to maintain or replenish Australia’s environmental infrastructure;\n    (i) a purpose incidental or ancillary to any of the above purposes;\n    (j) the making of grants of financial assistance for any of the above purposes.\n  (2) An amount standing to the credit of the Account that represents interest earned on an amount standing to the credit of the Account may be applied for any purpose of the Account.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Primary objective of the National Vegetation Initiative","content":"#### 10 Primary objective of the National Vegetation Initiative\n\n  For the purposes of this Act, the primary objective of the National Vegetation Initiative is to reverse the long‑term decline in the extent and quality of Australia’s native vegetation cover by:\n    (a) conserving remnant native vegetation; and\n    (b) conserving Australia’s biodiversity; and\n    (c) restoring, by means of revegetation, the environmental values and productive capacity of Australia’s degraded land and water.","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"Primary objective of the Murray‑Darling 2001 Project","content":"#### 11 Primary objective of the Murray‑Darling 2001 Project\n\n  For the purposes of this Act, the primary objective of the Murray‑Darling 2001 Project is to contribute to the rehabilitation of the Murray‑Darling Basin, with a view to achieving a sustainable future for the Basin, its natural systems and its communities.","sortOrder":13},{"sectionNumber":"12","sectionType":"section","heading":"Primary objectives of the National Land and Water Resources Audit","content":"#### 12 Primary objectives of the National Land and Water Resources Audit\n\n  For the purposes of this Act, the primary objectives of the National Land and Water Resources Audit are as follows:\n    (a) to estimate the direct and indirect causes and effects of land and water degradation on the quality of the Australian environment and to estimate the effects of land and water degradation on Australia’s economy;\n    (b) to provide a baseline for the purposes of carrying out assessments of the effectiveness of land and water degradation policies and programs.","sortOrder":14},{"sectionNumber":"13","sectionType":"section","heading":"Primary objective of the National Reserve System","content":"#### 13 Primary objective of the National Reserve System\n\n  For the purposes of this Act, the primary objective of the National Reserve System is to assist with the establishment and maintenance of a comprehensive, adequate and representative system of reserves.","sortOrder":15},{"sectionNumber":"14","sectionType":"section","heading":"Primary objectives of the Coasts and Clean Seas Initiative","content":"#### 14 Primary objectives of the Coasts and Clean Seas Initiative\n\n  For the purposes of this Act, the primary objectives of the Coasts and Clean Seas Initiative are as follows:\n    (a) to ameliorate pollution problems in Australia’s coastal areas;\n    (b) to protect the environment in Australia’s coastal areas;\n    (c) to ameliorate threats to Australia’s marine biodiversity;\n    (d) to develop an oceans policy for Australia.","sortOrder":16},{"sectionNumber":"15","sectionType":"section","heading":"Meaning of environmental protection","content":"#### 15 Meaning of environmental protection\n\n  For the purposes of this Act, environmental protection means:\n    (a) maintaining, conserving, preserving or protecting components of the natural environment of Australia; or\n    (b) restoring, improving or replenishing components of the natural environment of Australia; or\n    (c) conserving or restoring Australia’s biodiversity; or\n    (d) developing or promoting waste minimisation in Australia; or\n    (e) developing or promoting clean production in Australia; or\n    (f) preventing, combating or rectifying pollution of the environment (whether natural or otherwise) of Australia; or\n    (g) carrying on research, or disseminating information, about:\n    (i) the natural environment of Australia; or\n    (ii) Australia’s biodiversity.","sortOrder":17},{"sectionNumber":"16","sectionType":"section","heading":"Meaning of sustainable agriculture","content":"#### 16 Meaning of sustainable agriculture\n\n  (1) For the purposes of this Act, sustainable agriculture means the use of agricultural practices and systems that maintain or improve the following:\n    (a) the economic viability of agricultural production;\n    (b) the social viability and well‑being of rural communities;\n    (c) the ecologically sustainable use of Australia’s biodiversity;\n    (d) the natural resource base;\n    (e) ecosystems that are influenced by agricultural activities.\n  (2) To avoid doubt, for the purposes of this Act, property management planning in relation to the farm unit is taken to be sustainable agriculture.","sortOrder":18},{"sectionNumber":"17","sectionType":"section","heading":"Meaning of natural resources management","content":"#### 17 Meaning of natural resources management\n\n  For the purposes of this Act, natural resources management means:\n    (a) any activity relating to the management of the use, development or conservation of one or more of the following natural resources:\n    (i) soil;\n    (ii) water;\n    (iii) vegetation; or\n    (b) any activity relating to the management of the use, development or conservation of any other natural resources for the purposes of an activity mentioned in paragraph (a).","sortOrder":19},{"sectionNumber":"18","sectionType":"section","heading":"Meaning of accounting transfer purpose","content":"#### 18 Meaning of accounting transfer purpose\n\n  For the purposes of this Act, each of the following is an accounting transfer purpose:\n    (a) making payments under section 5 of the Natural Resources Management (Financial Assistance) Act 1992;\n    (b) crediting amounts to the Natural Resources Management Account continued in existence under subsection 11(1) of the Natural Resources Management (Financial Assistance) Act 1992.","sortOrder":20},{"sectionNumber":"19","sectionType":"section","heading":"Grant of financial assistance to a State","content":"#### 19 Grant of financial assistance to a State\n\n  (1) This section applies if an amount is to be debited from the Account for the purpose of making a grant of financial assistance to a State.\n  (2) The terms and conditions on which that financial assistance is granted are to be set out in a written agreement between the Commonwealth and the State.\n  (3) An agreement under subsection (2) may be entered into:\n    (a) by either of the following Ministers on behalf of the Commonwealth:\n    (i) the Minister;\n    (ii) the Agriculture Minister; or\n    (b) jointly by both of the following Ministers on behalf of the Commonwealth:\n    (i) the Minister;\n    (ii) the Agriculture Minister.\n  (4) An agreement under subsection (2) may establish a framework under which the Commonwealth and the State are to work cooperatively to achieve both common and complementary outcomes in relation to:\n    (a) environmental protection; and\n    (b) natural resources management; and\n    (c) sustainable agriculture.\n  (5) Subsection (4) does not limit subsection (2).\n  (6) This section does not affect the operation of Part 2 of the Natural Resources Management (Financial Assistance) Act 1992.\n\n> Note: State is given an extended meaning by section 54.","sortOrder":21},{"sectionNumber":"20","sectionType":"section","heading":"Grant of financial assistance to a person, or a body, other than a State","content":"#### 20 Grant of financial assistance to a person, or a body, other than a State\n\n  (1) This section applies if an amount is to be debited from the Account for the purpose of making a grant of financial assistance to a person, or a body, other than a State.\n  (2) The terms and conditions on which that financial assistance is granted are to be set out in a written agreement between the Commonwealth and the person or body.\n  (3) An agreement under subsection (2) may be entered into:\n    (a) by either of the following Ministers on behalf of the Commonwealth:\n    (i) the Minister;\n    (ii) the Agriculture Minister; or\n    (b) jointly by both of the following Ministers on behalf of the Commonwealth:\n    (i) the Minister;\n    (ii) the Agriculture Minister.\n\n> Note: State is given an extended meaning by section 54.","sortOrder":22},{"sectionNumber":"21","sectionType":"section","heading":"Principles of ecologically sustainable development","content":"#### 21 Principles of ecologically sustainable development\n\n  (1) This section applies to a decision of a Minister to approve a proposal to spend an amount standing to the credit of the Account for a purpose of the Account.\n  (2) In making that decision, the Minister concerned must have regard to:\n    (a) the principles of ecologically sustainable development; and\n    (b) such other matters as the Minister concerned considers relevant.\n  (3) For the purposes of this section, the principles of ecologically sustainable development consist of:\n    (a) the following core objectives:\n    (i) to enhance individual and community well‑being and welfare by following a path of economic development that safeguards the welfare of future generations;\n    (ii) to provide for equity within and between generations;\n    (iii) to protect biological diversity and maintain essential ecological processes and life‑support systems; and\n    (b) the following guiding principles:\n    (i) decision‑making processes should effectively integrate both long‑term and short‑term economic, environmental, social and equity considerations;\n    (ii) if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation;\n    (iii) the global dimension of environmental impacts of actions and policy should be recognised and considered;\n    (iv) the need to develop a strong, growing and diversified economy that can enhance the capacity for environmental protection should be recognised;\n    (v) the need to maintain and enhance international competitiveness in an environmentally sound manner should be recognised;\n    (vi) cost‑effective and flexible measures should be adopted;\n    (vii) decisions and actions should provide for broad community involvement on issues which affect the community.\n\n> Note: The principles of ecologically sustainable development that are set out in this subsection are based on the core objectives and guiding principles that were endorsed by the Council of Australian Governments in December 1992.","sortOrder":23},{"sectionNumber":"Part 4","sectionType":"part","heading":"Crediting of amounts to the Account","content":"## Part 4—Crediting of amounts to the Account","sortOrder":24},{"sectionNumber":"22","sectionType":"section","heading":"$1.1 billion derived from the initial partial sale of Telstra","content":"#### 22 $1.1 billion derived from the initial partial sale of Telstra\n\n  (1) For each $1 that is received by the Commonwealth, in a particular month beginning before the date of commencement of section 22A, by way of proceeds of the sale of shares in Telstra, $1 is to be credited to the Account before the end of the next following month.\n  (2) The total amount credited to the Account under this section is not to exceed $1.1 billion.","sortOrder":25},{"sectionNumber":"22A","sectionType":"section","heading":"$250 million derived from the subsequent partial sale of Telstra","content":"#### 22A $250 million derived from the subsequent partial sale of Telstra\n\n  (1) For each $1 that is received by the Commonwealth, in a particular month beginning on or after the date of commencement of this section, by way of proceeds of the sale of shares in Telstra, $1 is to be credited to the Account before the end of the next following month.\n  (2) The total amount credited to the Account under this section is not to exceed $250 million.","sortOrder":26},{"sectionNumber":"23","sectionType":"section","heading":"Budget appropriations","content":"#### 23 Budget appropriations\n\n  (1) This section applies if another Act appropriates an amount from the Consolidated Revenue Fund for credit to the Account.\n  (2) The amount is to be credited to the Account.","sortOrder":27},{"sectionNumber":"24","sectionType":"section","heading":"Gifts and bequests","content":"#### 24 Gifts and bequests\n\n  (1) This section applies if a gift or bequest is given or made for the purposes of the Account.\n  (2) An amount equal to the amount of the gift or bequest is to be credited to the Account.","sortOrder":28},{"sectionNumber":"25","sectionType":"section","heading":"Repayments of grants","content":"#### 25 Repayments of grants\n\n  (1) This section applies if:\n    (a) an amount standing to the credit of the Account is debited and paid by the Commonwealth in making a grant of financial assistance; and\n    (b) the grant is repaid, in whole or in part.\n  (2) An amount equal to the repayment is to be credited to the Account.","sortOrder":29},{"sectionNumber":"26","sectionType":"section","heading":"Commonwealth receipts under funding agreements","content":"#### 26 Commonwealth receipts under funding agreements\n\n  (1) This section applies if:\n    (a) the Commonwealth enters into an agreement with a person or body in relation to the spending of amounts debited from the Account and paid by the Commonwealth; and\n    (b) the agreement contains a provision requiring an amount to be paid or repaid to the Commonwealth in specified circumstances; and\n    (c) the Commonwealth receives money under the agreement.\n  (2) An amount equal to the receipt is to be credited to the Account.","sortOrder":30},{"sectionNumber":"27","sectionType":"section","heading":"Income from assets acquired using amounts credited to the Account","content":"#### 27 Income from assets acquired using amounts credited to the Account\n\n  (1) This section applies if:\n    (a) an amount standing to the credit of the Account is debited and paid by the Commonwealth in acquiring property or interests; and\n    (b) an amount is received by the Commonwealth by way of income derived from the property or interests.\n  (2) An amount equal to the receipt is to be credited to the Account.","sortOrder":31},{"sectionNumber":"28","sectionType":"section","heading":"Proceeds of disposal of assets acquired using amounts credited to the Account","content":"#### 28 Proceeds of disposal of assets acquired using amounts credited to the Account\n\n  (1) This section applies if:\n    (a) an amount standing to the credit of the Account is debited and paid by the Commonwealth in acquiring property or interests; and\n    (b) an amount is received by the Commonwealth from the disposal of the property or interests.\n  (2) An amount equal to the receipt is to be credited to the Account.","sortOrder":32},{"sectionNumber":"29","sectionType":"section","heading":"Income from projects and related activities funded with amounts credited to the Account","content":"#### 29 Income from projects and related activities funded with amounts credited to the Account\n\n  (1) This section applies if:\n    (a) an amount standing to the credit of the Account is debited and paid by the Commonwealth in carrying out a project; and\n    (b) income is received by the Commonwealth from the project or from activities carried out in relation to the project.\n  (2) An amount equal to the receipt is to be credited to the Account.","sortOrder":33},{"sectionNumber":"Part 6","sectionType":"part","heading":"Miscellaneous","content":"## Part 6—Miscellaneous","sortOrder":34},{"sectionNumber":"40","sectionType":"section","heading":"Natural Heritage Ministerial Board","content":"#### 40 Natural Heritage Ministerial Board\n\n  (1) There is to be a Natural Heritage Ministerial Board, which is to consist of:\n    (a) the Minister; and\n    (b) the Agriculture Minister.\n  (2) The functions of the Natural Heritage Ministerial Board are as follows:\n    (a) to provide a forum in which the Minister and the Agriculture Minister are to consult with each other about all matters relating to the Account;\n    (b) to prepare estimates under section 41;\n    (c) to monitor the effectiveness of the administration of this Act in achieving:\n    (i) the primary objective of the National Vegetation Initiative; and\n    (ii) the primary objective of the Murray‑Darling 2001 Project; and\n    (iii) the primary objectives of the National Land and Water Resources Audit; and\n    (iv) the primary objective of the National Reserve System; and\n    (v) the primary objectives of the Coasts and Clean Seas Initiative; and\n    (vi) environmental protection; and\n    (vii) sustainable agriculture; and\n    (viii) natural resources management.\n  (3) For the purposes of this section, each of the following decisions is taken to be a matter that relates to the Account:\n    (a) a decision about a proposal to spend an amount standing to the credit of the Account;\n    (b) a decision relating to the investment of an amount standing to the credit of the Account;\n    (c) a decision to make a recommendation to the Governor‑General about the making of regulations under this Act;\n    (d) a decision under this Act;\n    (e) a decision under any other law of the Commonwealth, to the extent that the law relates to the Account.","sortOrder":35},{"sectionNumber":"41","sectionType":"section","heading":"Estimates","content":"#### 41 Estimates\n\n  (1) The Natural Heritage Ministerial Board must prepare estimates of debits from the Account that are to be made for purposes of the Account.\n  (2) The estimates are to be prepared for:\n    (a) each financial year; and\n    (b) such other periods (if any) as the Natural Heritage Ministerial Board determines.\n  (3) In exercising its powers under this section, the Natural Heritage Ministerial Board must have regard to:\n    (a) the investment strategy for the Account; and\n    (b) such other matters as the Natural Heritage Ministerial Board considers relevant.\n  (4) Money must not be debited from the Account for a purpose of the Account otherwise than in accordance with estimates prepared under this section.","sortOrder":36},{"sectionNumber":"42","sectionType":"section","heading":"Minimum balance in the Account after 30 June 2001","content":"#### 42 Minimum balance in the Account after 30 June 2001\n\n  (1) This section applies to a financial year that begins on or after 1 July 2001.\n  (2) The Minister must take all reasonable steps to ensure that, throughout each financial year, the balance of the Account does not fall below the base amount for that year (worked out under subsection (3) or (4)).\n  (3) The base amount for the financial year that begins on 1 July 2001 is $300 million.\n  (4) This is how to work out the base amount for a subsequent financial year:\n    (a) multiply $300 million by the indexation factor for that year;\n    (b) if the result of that multiplication is not an amount of whole dollars—round up the result to the nearest whole dollar.\n  (5) For the purposes of this section, the indexation factor for a financial year is the factor (being a number not less than 1) specified in relation to that year in a written determination made by the Finance Minister for the purposes of this subsection.","sortOrder":37},{"sectionNumber":"43","sectionType":"section","heading":"Annual report about the Account","content":"#### 43 Annual report about the Account\n\n  (1) For the purposes of this Act, the Minister must, as soon as practicable after the end of 30 June in each year, cause to be prepared an annual report. The annual report must include (but is not limited to):\n    (a) a report about the operations of the Account during the financial year ended on that date; and\n    (b) financial statements relating to those operations; and\n    (c) the Auditor‑General’s report or reports under section 44 on the financial statements; and\n    (d) a report on the effectiveness of the administration of this Act during the financial year ended on that date in achieving the outcomes sought in agreements entered into under subsection 19(2).\n  (2) The report mentioned in paragraph (1)(a) must comply with written guidelines issued by the Finance Minister.\n  (3) The financial statements must comply with written guidelines issued by the Finance Minister.\n  (4) The Minister must cause copies of the annual report to be laid before each House of the Parliament within 15 sitting days of that House after the completion of the preparation of the annual report.\n  (5) The Agriculture Minister must give the Minister such information as the Minister requires to enable the Minister to comply with the Minister’s obligations under subsection (1).\n  (6) The obligations imposed by this section are in addition to, and not instead of, obligations imposed by any other law of the Commonwealth.","sortOrder":38},{"sectionNumber":"44","sectionType":"section","heading":"Audit of annual financial statements of the Account","content":"#### 44 Audit of annual financial statements of the Account\n\n  (1) As soon as practicable after financial statements are prepared in accordance with subsection 43(1), the statements must be given to the Auditor‑General.\n  (2) As soon as practicable after receiving the financial statements, the Auditor‑General must examine the statements and report in accordance with this section to the Minister.\n  (3) In the report, the Auditor‑General must state whether, in the Auditor‑General’s opinion, the financial statements:\n    (a) have been prepared in accordance with guidelines in force under subsection 43(3); and\n    (b) give a true and fair view of the matters required by those guidelines.\n  If the Auditor‑General is not of that opinion, the Auditor‑General must state the reasons.\n  (4) If the Auditor‑General is of the opinion that failing to prepare the financial statements in accordance with the guidelines has a quantifiable financial effect, the Auditor‑General must quantify that financial effect and state the amount.\n  (5) If the Auditor‑General is of the opinion that the Secretary of a Department has contravened an obligation relating to the keeping of accounts or records, the Auditor‑General must state particulars of the contravention.\n  (6) If the Auditor‑General is of the opinion that the Auditor‑General did not obtain all necessary information and explanations, the Auditor‑General must state particulars of the shortcoming.\n  (7) Instead of preparing a single report, the Auditor‑General may prepare an initial report and one or more later supplementary reports.","sortOrder":39},{"sectionNumber":"45","sectionType":"section","heading":"Delegation by Minister","content":"#### 45 Delegation by Minister\n\n  (1) The Minister may, by writing, delegate to:\n    (a) the Secretary of the Department; or\n    (b) the Director of National Parks (within the meaning of the Environment Protection and Biodiversity Conservation Act 1999); or\n    (c) an SES employee or acting SES employee (whether or not in the Department);\n  all or any of the Minister’s powers under:\n    (d) this Act (other than section 40 or 41); or\n    (e) any other law of the Commonwealth, to the extent that that law relates to the Account.\n  (2) The delegate is, in the exercise of the power delegated under subsection (1), subject to the directions of the Minister.","sortOrder":40},{"sectionNumber":"46","sectionType":"section","heading":"Delegation by Agriculture Minister","content":"#### 46 Delegation by Agriculture Minister\n\n  (1) The Agriculture Minister may, by writing, delegate to:\n    (a) the Secretary of the Agriculture Department; or\n    (b) an SES employee or acting SES employee (whether or not in the Agriculture Department);\n  all or any of the powers conferred on the Agriculture Minister by:\n    (c) this Act (other than section 40 or 41); or\n    (d) any other law of the Commonwealth, to the extent that that law relates to the Account.\n  (2) The delegate is, in the exercise of the power delegated under subsection (1), subject to the directions of the Agriculture Minister.","sortOrder":41},{"sectionNumber":"47","sectionType":"section","heading":"Acceptance of gifts etc.","content":"#### 47 Acceptance of gifts etc.\n\n  (1) The Commonwealth must not accept a gift or bequest given or made for the purposes of the Account if:\n    (a) the gift or bequest is given or made subject to a condition (other than the condition that the gift or bequest be applied for the purposes of the Account); or\n    (b) the gift or bequest is required to be held on trust (within the ordinary meaning of that expression).\n  (2) If:\n    (a) an advertisement solicits gifts or bequests for the purposes of the Account; and\n    (b) the advertisement is authorised by the Commonwealth;\n  the advertisement must include a statement to the effect that the proceeds of the gift or bequest will be applied to a government program.","sortOrder":42},{"sectionNumber":"49","sectionType":"section","heading":"Appropriations for the purposes of the Natural Resources Management (Financial Assistance) Act 1992","content":"#### 49 Appropriations for the purposes of the Natural Resources Management (Financial Assistance) Act 1992\n\n  (1) A reference in subsection 5(6) of the Natural Resources Management (Financial Assistance) Act 1992 to money appropriated by the Parliament for the purpose mentioned in that subsection includes a reference to an amount debited from the Account in accordance with paragraphs 8(k) and 18(a) of this Act.\n  (2) A reference in paragraph 11(4)(a) of the Natural Resources Management (Financial Assistance) Act 1992 to amounts appropriated from time to time by the Parliament includes a reference to an amount debited from the Account in accordance with paragraphs 8(k) and 18(b) of this Act.","sortOrder":43},{"sectionNumber":"50","sectionType":"section","heading":"Regulations","content":"#### 50 Regulations\n\n  The Governor‑General may make regulations prescribing matters:\n    (a) required or permitted by this Act to be prescribed; or\n    (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":44},{"sectionNumber":"53","sectionType":"section","heading":"External Territories","content":"#### 53 External Territories\n\n  This Act extends to all the external Territories.","sortOrder":45},{"sectionNumber":"54","sectionType":"section","heading":"Interpretation","content":"#### 54 Interpretation\n\n  In this Act:\n\n> Account means the Natural Heritage Trust of Australia Account continued in existence by section 4.\n\n> accounting transfer purpose has the meaning given by section 18.\n\n> agriculture includes:\n\n    (a) the cultivation of land; or\n    (b) the maintenance of animals for the purposes of selling them or their bodily produce, including natural increase; or\n    (c) fishing or aquaculture operations; or\n    (d) forest operations; or\n    (e) horticulture.\n\n> Agriculture Department means the Department administered by the Agriculture Minister.\n\n> Agriculture Minister means the Minister administering Part 2 of the Natural Resources Management (Financial Assistance) Act 1992.\n\n> Australia, when used in a geographical sense, includes:\n\n    (a) the external Territories; and\n    (b) the exclusive economic zone.\n\n> environmental protection has the meaning given by section 15.\n\n> exclusive economic zone means the exclusive economic zone (within the meaning of the Seas and Submerged Lands Act 1973), adjacent to the coast of Australia or the coast of an external Territory.\n\n> Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.\n\n> horticultural product means:\n\n    (a) fruits, including processed fruits; and\n    (b) vegetables, including:\n    (i) processed vegetables; and\n    (ii) mushrooms and other edible fungi; and\n    (iii) processed mushrooms and other processed edible fungi; and\n    (c) nuts, including processed nuts; and\n    (d) nursery products, including:\n    (i) trees, shrubs, plants, seeds, bulbs, corms and tubers; and\n    (ii) propagating material and plant tissue cultures, grown for ornamental purposes or for producing fruits, vegetables, nuts or cut flowers and foliage; and\n    (e) cut flowers and foliage, including processed cut flowers and foliage; and\n    (f) products prescribed by the regulations for the purposes of this paragraph.\n\n> horticulture includes the production of a horticultural product.\n\n> Natural Heritage Ministerial Board means the Natural Heritage Ministerial Board established by section 40.\n\n> natural resources management has the meaning given by section 17.\n\n> proceeds of the sale of shares in Telstra includes:\n\n    (a) an amount received by the Commonwealth directly or indirectly from:\n    (i) the sale‑scheme trustee (within the meaning of the Telstra Corporation Act 1991); or\n    (ii) an investor in Telstra;\n    under a Telstra sale scheme (within the meaning of that Act); and\n    (b) an amount received by the Commonwealth by way of the redemption of redeemable preference shares in Telstra held by the Commonwealth, where the redemption was in accordance with a Telstra sale scheme (within the meaning of the Telstra Corporation Act 1991).\n\n> State includes the Australian Capital Territory and the Northern Territory.\n\n> sustainable agriculture has the meaning given by section 16.\n\n> Telstra has the same meaning as in the Telstra Corporation Act 1991.\n\n> waste minimisation includes reduction of use, re‑use and recycling.","sortOrder":46}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Act as structured provides for an initial crediting of $1.1 billion from partial Telstra share sales (s 22). It also includes a separate provision crediting up to $250 million from subsequent Telstra share sale proceeds (s 22A). Taken together (and reflected in the Act’s simplified outline, s 3), available Telstra‑derived funding increased from the initial $1.1 billion to a combined total of $1.35 billion, expanding the statutory funding envelope for the Account."},"complexity_factors":["Multiple and specified funding streams with caps (initial $1.1bn and an additional $250m) and varied crediting rules (ss 22, 22A, 23–29).","Detailed eligibility and use restrictions distinguishing capital (Telstra proceeds) from ongoing income (s 9).","Layered definitions of core purposes and statutory meanings (environmental protection, sustainable agriculture, natural resources management) which determine permissible spending (ss 8, 15–17).","Governance and control requirements: Ministerial Board, mandatory estimates, minimum balance rule and reporting/audit obligations (ss 40–44, 41(4), 42).","Ministerial and Finance Minister discretions (investment income determinations, advances on account, spending approvals) and delegation pathways (ss 6, 21, 45–46).","Cross‑references to other legislation (Public Governance, Performance and Accountability Act 2013; Natural Resources Management (Financial Assistance) Act 1992; Telstra Corporation Act 1991) which create legal interdependencies (s 5, s 18, s 49, definitions).","Constraints on acceptance of conditional gifts and trust‑held contributions that affect fundraising and private donor control (s 47).","Indexation and future‑year base balance calculation requiring Finance Minister determinations (s 42)."],"plain_english_summary":"What this law does (mechanically)\n\n- Establishes and continues the Natural Heritage Trust of Australia Account (the Account) to hold money for specific environmental, agricultural and natural‑resource purposes (s 4, s 5, s 8).\n- Credits money to the Account from a number of specific sources: proceeds of partial sales of Telstra (initial $1.1 billion and a further $250 million) (s 3, s 22, s 22A), parliamentary appropriations (s 23), gifts and bequests (s 24), repayments and receipts under funding agreements (ss 25–26), and income or proceeds from property and projects financed from the Account (ss 27–29). Investment income and a fixed‑income credit mechanism are also returned to the Account (s 6).\n- Limits how money that represents Telstra sale proceeds may be spent: those Telstra proceeds can only be debited for the listed programs and for projects or programs whose primary objective is to maintain or replenish Australia’s environmental infrastructure (s 9). Interest earned on amounts in the Account may be applied for any Account purpose (s 9(2)).\n- Defines the list of permitted purposes and sets primary objectives for named programs (National Vegetation Initiative, Murray‑Darling 2001 Project, National Reserve System, Coasts and Clean Seas Initiative, National Land and Water Resources Audit) and broader categories (environmental protection, sustainable agriculture, natural resources management) including statutory definitions of those terms (ss 8, 10–17, 18).\n- Requires written agreements as the vehicle for grants to States and for grants to other persons or bodies; agreements may be entered into by the relevant Commonwealth Minister or jointly by the Minister and the Agriculture Minister (ss 19–20).\n- Directs that Ministers approving proposals to spend Account money must have regard to the principles of ecologically sustainable development and other relevant matters (s 21).\n- Establishes governance and control systems: a Natural Heritage Ministerial Board composed of the Minister and the Agriculture Minister to consult, prepare estimates and monitor effectiveness (s 40); the Board must prepare spending estimates and money may only be debited in accordance with those estimates (s 41(1), (4)).\n- Imposes a minimum balance requirement from 1 July 2001 onward (base amount $300 million indexed) that the Minister must take reasonable steps to maintain (s 42).\n- Contains reporting and audit obligations: an annual report to be prepared and tabled (s 43) and audited financial statements to be reported on by the Auditor‑General (s 44).\n- Provides for delegations from the Minister and the Agriculture Minister to specified senior officials, subject to directions (ss 45–46), and for regulations and territorial extent (ss 50, 53). It also sets limits on accepting conditional gifts and on accepting gifts required to be held on trust (s 47).\n\nWho pays and who controls the money\n\n- Who pays: the Commonwealth funds the Account. The primary named initial funding source is proceeds from partial sales of Telstra (ss 3, 22, 22A). Additional funding can come from parliamentary appropriations, gifts, repayments, investment and project income (ss 23–29).\n- Who decides: Ministers (the Minister and the Agriculture Minister) control spending decisions, subject to the Board’s estimates process (s 40, s 41). The Finance Minister has specific powers over investment returns and the fixed‑income percentage and may make written determinations affecting credited amounts (s 6). The Auditor‑General reviews the accounts (s 44).\n\nWhat behaviour changes and incentives the law creates\n\n- It channels a defined pool of Commonwealth money toward specified environmental and agricultural programs (s 8, s 9). Recipients (States, persons, bodies) can expect support where a written agreement is negotiated (ss 19–20).\n- By ring‑fencing Telstra sale proceeds to projects with a primary objective of maintaining or replenishing environmental infrastructure, the Act restricts how that capital may be redirected by later policy choices (s 9).\n- The requirement for written agreements and estimates (ss 19–20, s 41) creates contractual and reporting pathways and places administrative compliance obligations on grant recipients and Commonwealth agencies.\n- The Finance Minister’s ability to determine the fixed‑income percentage and to advance funds on account (s 6) creates fiscal timing flexibility for the Commonwealth and affects how much is credited to the Account in any year.\n\nCompliance burdens and bureaucratic discretion\n\n- Compliance burdens: grant recipients and administering agencies must operate under written agreements (ss 19–20) and comply with reporting and audit requirements (ss 41, 43–44). Advertising fundraising must declare that proceeds will be applied to a government program (s 47(2)).\n- Discretion: Ministers have discretion to approve spending (s 21 requires only that they have regard to listed principles), the Finance Minister can set fixed‑income percentages and make advances (s 6), and delegations allow senior officials to exercise many powers subject to ministerial directions (ss 45–46). The Governor‑General may make regulations for implementation (s 50).\n\nTrade‑offs, costs and opportunity costs (mechanisms, not judgments)\n\n- Concentrated benefits: grant recipients (States, organisations, individuals) receive direct finance under written agreements (ss 19–20).\n- Diffuse costs: the money originates from Commonwealth resources—initially Telstra sale proceeds and potentially parliamentary appropriations or other receipts—so funding these programs reduces the pool available to other Commonwealth priorities (ss 22, 22A, 23).\n- Administrative costs: monitoring, preparing estimates, negotiating and enforcing written agreements, auditing and reporting impose administrative and compliance costs on the public service and on recipients (ss 41, 43–44, 19–20).\n- Implementation risks: statutory discretion in spending approvals, written determinations about investment returns, and delegation pathways create execution risk tied to ministerial choices and administrative practice (ss 6, 21, 45–46).\n\nConnections to other laws and accounting flows\n\n- The Account is a special account under the Public Governance, Performance and Accountability Act 2013 (s 5) and the Act cross‑references the Natural Resources Management (Financial Assistance) Act 1992 for certain transfer and appropriation mechanisms (s 18, s 49).\n\nWhy it matters (official purpose claims and a mechanical test)\n\n- The Act’s statutory purpose is to conserve, repair and replenish Australia’s natural capital infrastructure by funding named national initiatives and by supporting environmental protection, sustainable agriculture and natural resources management (s 3, s 8). Mechanically, it creates a ring‑fenced funding vehicle with specified crediting and debiting rules, governance (Ministerial Board), audit/reporting obligations and definitional limits on eligible uses (ss 4–9, 40–44). The law therefore directs Commonwealth financial resources into these purposes while prescribing how those resources are credited, invested, governed and spent."},"kimi_summary":{"_metrics":{"model":"kimi-k2.6","source":"moonshot-batch-reanalyse","citationCount":14,"completionTokens":3941},"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation remains focused on its original purpose of establishing a dedicated funding account for environmental protection, sustainable agriculture, and natural resources management, primarily sourced from Telstra privatisation proceeds. While provisions have been updated to accommodate subsequent share sales, revised financial governance, and accounting transfers to related legislation, the substantive scope has not significantly expanded beyond natural capital infrastructure and related programs."},"complexity_factors":["Over 20 defined terms in the interpretation section (section 54), with additional bespoke definitions for spending categories in sections 15 to 18","Two-tier spending regime that imposes stricter debit rules on original Telstra sale proceeds than on interest or other income earned by the Account","Time-bound financial formulas for fixed-income calculations that differ depending on whether a financial year began before 1 July 2001 or on/after 1 July 2002","Cross-references to multiple other Commonwealth Acts, including the Public Governance, Performance and Accountability Act 2013, Telstra Corporation Act 1991, and Natural Resources Management (Financial Assistance) Act 1992","Indexation mechanics and minimum balance requirements tied to a base amount of $300 million (section 42)","Dual-minister governance structure with specific delegation powers, joint decision-making requirements, and mandatory annual reporting and audit obligations"],"plain_english_summary":"This law establishes and runs a special government fund called the **Natural Heritage Trust of Australia Account**. Its core purpose is to pay for projects that repair, protect, and sustain Australia’s natural environment and farmland.\n\n**Where the money comes from**\nThe account was originally filled with **$1.35 billion** raised from the government selling part of its stake in Telstra. Money can also be added through annual budgets, public donations, repaid grants, and profits from investments or projects already funded by the account.\n\n**What the money is spent on**\nThe fund supports several named national programs and broader goals, including:\n*   **Reversing the loss of native vegetation** and restoring degraded land.\n*   **Rehabilitating the Murray–Darling Basin** for a sustainable future.\n*   **Tracking the health of Australia’s land and water** through a national audit.\n*   **Building and maintaining national parks and reserves**.\n*   **Reducing pollution and protecting coastal and marine areas**.\n*   General **environmental protection**, **sustainable agriculture** (farming practices that stay economically and ecologically viable), and **natural resources management** (looking after soil, water, and plants).\n\nThere are tighter spending rules for the original Telstra sale money than for interest earned by the account.\n\n**How it is governed**\nA **Natural Heritage Ministerial Board**—made up of the Environment Minister and the Agriculture Minister—oversees the account. They set spending estimates and check whether programs are delivering results. Before approving spending, Ministers must consider principles of **ecologically sustainable development** (in short, balancing economic growth, community well-being, and environmental health for current and future generations).\n\n**Other key rules**\n*   Financial help given to state governments or other organisations must generally be covered by a written agreement.\n*   The account must keep a minimum cash balance each year, adjusted over time for inflation.\n*   The account is audited every year and a public report on its activities must be presented to Parliament.\n*   Ministers can delegate some of their powers to senior public servants."},"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act's scope is consistent with its stated original intent — establishing a dedicated environmental fund seeded by Telstra privatisation proceeds and directing spending toward conservation, sustainable agriculture, and natural resources management. No provisions appear to have significantly broadened or narrowed the original purpose."},"complexity_factors":["Multiple interlocking financial mechanisms for crediting the Account (Telstra proceeds, budget appropriations, gifts, repayments, investment income, asset income)","Tiered restrictions on how different categories of funds can be spent (Telstra proceeds vs. interest earnings have different permitted uses)","Variable income calculation formula for uninvested amounts, with different rules before and after 1 July 2002 and ministerial override provisions","Complex advance payment and clawback mechanism for fixed income credits (subsections 6(4)-(6))","Cross-references to multiple other pieces of legislation (Public Governance, Performance and Accountability Act 2013; Natural Resources Management (Financial Assistance) Act 1992; Telstra Corporation Act 1991; Environment Protection and Biodiversity Conservation Act 1999; Seas and Submerged Lands Act 1973)","Indexed minimum balance requirement requiring a separate Finance Minister determination each year","Broad but carefully bounded definitions (e.g. 'environmental protection', 'sustainable agriculture', 'natural resources management') that require careful reading to understand exactly what qualifies","Dual ministerial governance structure with delegation provisions adding administrative layers"],"plain_english_summary":"## Natural Heritage Trust of Australia Act 1997\n\n### What is this law about?\n\nThis Act created a large dedicated government fund — called the **Natural Heritage Trust of Australia Account** — to pay for environmental conservation and repair across Australia. Think of it as a dedicated savings account that the government set up specifically to fix and protect Australia's natural environment.\n\n### Where did the money come from?\n\nThe main source of funding was **$1.35 billion from the partial sale of Telstra** (the government-owned telecommunications company). Specifically:\n- **$1.1 billion** from the first round of Telstra share sales\n- **$250 million** from a subsequent round of Telstra share sales\n\nThe fund can also receive budget appropriations, gifts, bequests, and money returned from funded projects.\n\n### What is the money spent on?\n\nFunds are directed at five headline programs and three broad categories:\n\n**Five named programs:**\n- 🌿 **National Vegetation Initiative** — reversing the decline of native bush and vegetation\n- 💧 **Murray-Darling 2001 Project** — rehabilitating the Murray-Darling river system\n- 📊 **National Land and Water Resources Audit** — measuring the scale of land and water damage across Australia\n- 🦘 **National Reserve System** — expanding protected wildlife reserves\n- 🌊 **Coasts and Clean Seas Initiative** — cleaning up coastal pollution and protecting marine life\n\n**Three broad categories:**\n- **Environmental protection** — maintaining, restoring, and researching the natural environment\n- **Sustainable agriculture** — farming practices that don't destroy the land\n- **Natural resources management** — managing soil, water, and vegetation\n\n**Important restriction:** Money from Telstra sale proceeds can *only* be spent on projects whose *primary goal* is maintaining or replenishing Australia's environmental infrastructure — it can't be used for general administration or loosely related activities.\n\n### Who benefits?\n\n- **Farmers and rural communities** — through sustainable agriculture funding\n- **State and Territory governments** — who can receive grants (via written agreements with the Commonwealth) to run environmental programs\n- **Community organisations and private bodies** — who can also receive grants\n- **All Australians** — through cleaner waterways, healthier ecosystems, protected native species, and better coastal environments\n\n### How is it governed?\n\n- A **Natural Heritage Ministerial Board** (made up of the Environment Minister and the Agriculture Minister) oversees spending decisions and monitors results\n- Spending must follow annual **estimates** (forward spending plans) prepared by the Board\n- Decisions must consider **principles of ecologically sustainable development** — including the precautionary principle (don't wait for scientific certainty before acting on serious environmental threats)\n- An **annual report** must be tabled in Parliament\n- The **Auditor-General** audits the fund's finances each year\n\n### Safeguards\n\n- A **minimum balance of $300 million** (indexed over time) must be maintained in the Account after 30 June 2001 — you can't simply spend the fund down to zero\n- The fund is *not* held on trust — it remains a government account\n- Gifts and bequests can be accepted, but only without strings attached"}},"importantCases":[],"_links":{"self":"/api/acts/natural-heritage-trust-of-australia-act-1997","history":"/api/acts/natural-heritage-trust-of-australia-act-1997/history","analysis":"/api/acts/natural-heritage-trust-of-australia-act-1997/analysis","conflicts":"/api/acts/natural-heritage-trust-of-australia-act-1997/conflicts","importantCases":"/api/acts/natural-heritage-trust-of-australia-act-1997/important-cases","documents":"/api/acts/natural-heritage-trust-of-australia-act-1997/documents"}}