4Simplified outline of this Act

4 Simplified outline of this Act

• This Act establishes the Future Drought Fund, which will enhance the Commonwealth’s ability to:

(a) make arrangements with persons or bodies in relation to drought resilience; and

(b) make grants to persons or bodies in relation to drought resilience.

• The Future Drought Fund consists of:

(a) the Future Drought Fund Special Account; and

(b) the investments of the Future Drought Fund.

• The balance of the Building Australia Fund Special Account is transferred to the Future Drought Fund Special Account. The investments of the Building Australia Fund become investments of the Future Drought Fund.

• The Future Fund Board is responsible for deciding how to invest the Future Drought Fund. In doing so, the Future Fund Board is bound by the Future Drought Fund Investment Mandate given to it by the responsible Ministers.

• On or after 1 July 2020, the Drought Minister may, on behalf of the Commonwealth:

(a) make an arrangement with a person or body in relation to drought resilience; and

(b) make a grant to a person or body in relation to drought resilience.

• This Act establishes the Agriculture Future Drought Resilience Special Account.

• During the financial year beginning on 1 July 2020, and during each subsequent financial year, $100 million will be transferred from the Future Drought Fund Special Account to the Agriculture Future Drought Resilience Special Account.

• The purposes of the Agriculture Future Drought Resilience Special Account are as follows:

(a) to pay amounts payable by the Commonwealth under arrangements relating to drought resilience;

(b) to make grants relating to drought resilience.

• This Act establishes the Future Drought Fund Consultative Committee.