12Proceeds of transaction

12 Proceeds of transaction

(1) The proceeds of the transfer of port assets to a private sector entity under an authorised transaction belong to and are payable directly to the State.

(2) The transaction proceeds include any payment to a public sector entity that is a premium or periodic payment under or related to a lease or licence of port assets to a private sector entity or grant of other rights that is authorised by this Act that, but for subsection (1), would be payable to another public sector entity.

(3) The transaction proceeds paid to the State are to be paid into the Victorian Transport Fund.

(4) The following deductions are authorised to be made from the transaction proceeds—

(a) deduction of amounts approved by the Premier to repay debt and satisfy other liabilities of a public sector entity in relation to port assets transferred for the purposes of an authorised transaction;

(b) deduction of amounts approved by the Premier—

(i) to reimburse a public sector entity for payments made by the entity in relation to any tax, duty, fee or charge imposed on the public sector entity by any Act or law of the State or any other jurisdiction in connection with a transaction arrangement; or

(ii) to pay on behalf of a public sector entity any tax, duty, fee or charge referred to in subparagraph (i) payable by the public sector entity in connection with a transaction arrangement;

(c) deduction of amounts approved by the Premier to satisfy any liability of a public sector entity arising under or in connection with a transaction arrangement;

(d) deduction of amounts approved by the Premier to meet expenses reasonably incurred by a public sector entity for the purposes of an authorised transaction;

(e) deduction of amounts approved by the Premier—

(i) to satisfy the liabilities of a public sector entity arising under or in connection with a project that is approved by the Premier as a port‑related project; or

(ii) to reimburse a public sector entity for payments made by it to satisfy the liabilities it incurs for or in connection with a project that is approved by the Premier as a port-related project.

(5) The transaction proceeds do not include any amount certified by the Premier to have been paid to a public sector entity as a tax, duty, fee or charge imposed by any Act or law of the State in connection with a transaction arrangement.

(6) The deductions authorised to be made from the transaction proceeds may be made—

(a) before payment of the transaction proceeds into the Victorian Transport Fund; or

(b) by payment from the Victorian Transport Fund.