The law creates the Natural Heritage Trust of Australia Account to hold Telstra sale proceeds and other Commonwealth money for environmental, agricultural and natural‑resource purposes, ring‑fencing those proceeds for named programs and projects that maintain or replenish Australia’s environmental infrastructure. Ministers (with a Ministerial Board) control spending via written agreements, estimates, investment rules and audit/reporting obligations. Mechanically, it channels and constrains Commonwealth finance toward conserving and managing national natural capital while imposing compliance and governance arrangements.
The Natural Heritage Trust of Australia Act 1997 establishes a dedicated funding mechanism for environmental and natural resource initiatives by continuing in existence the Natural Heritage Trust of Australia Account (s 4) as a special account under the Public Governance, Performance and Accountability Act 2013 (s 5). Its primary function is to receive and disburse funds—principally the $1.35 billion derived from the partial privatisation of Telstra (ss 22 and 22A)—for a closed list of purposes enumerated in s 8. These purposes are the National Vegetation Initiative, the Murray-Darling 2001 Project, the National Land and Water Resources Audit, the National Reserve System, the Coasts and Clean Seas Initiative, environmental protection (defined in s 15), supporting sustainable agriculture (defined in s 16), natural resources management (defined in s 17), incidental or ancillary activities, the making of grants for any of those purposes, and accounting transfer purposes (defined in s 18 by reference to payments and credits under the Natural Resources Management (Financial Assistance) Act 1992).
The Act draws a bright line between the permissible uses of Telstra privatisation proceeds and interest earned on the Account. Section 9(1) confines debits of Telstra proceeds to the five named initiatives plus environmental protection, sustainable agriculture or natural resources management only where the project or program’s primary objective is “to maintain or replenish Australia’s environmental infrastructure”. By contrast, s 9(2) permits interest to be applied for any purpose of the Account. Primary objectives for each named initiative are statutorily fixed: the National Vegetation Initiative must reverse long-term decline in native vegetation cover through conservation, biodiversity protection and revegetation (s 10); the Murray-Darling 2001 Project must contribute to rehabilitation of the Basin for a sustainable future (s 11); the National Land and Water Resources Audit must estimate causes, effects and economic impacts of degradation and provide a baseline for policy assessment (s 12); the National Reserve System must assist a comprehensive, adequate and representative reserve system (s 13); and the Coasts and Clean Seas Initiative must address coastal pollution, protect coastal environments, ameliorate marine biodiversity threats and develop an oceans policy (s 14).
Current sections
Direct links to the current provisions in Natural Heritage Trust of Australia Act 1997.
47
Part 1
Introduction
Part 1—Introduction
1
Short title
1 Short title
This Act may be cited as the Natural Heritage Trust of Australia Act 1997.
2
Commencement
2 Commencement
This Act commences on the day on which it receives the Royal Assent.
3
Simplified outline
3 Simplified outline
The following is a simplified outline of this Act:
• This Act establishes the Natural Heritage Trust of Australia Account.
• The main source of money for the Account is $1.35 billion from the partial sale of Telstra.
• The main objective of the establishment of the Account is to conserve, repair and replenish Australia’s natural capital infrastructure.
• Amounts standing to the credit of the Account will be spent on the environment, sustainable agriculture and natural resources management.
Part 2
The Natural Heritage Trust of Australia Account
Part 2—The Natural Heritage Trust of Australia Account
4
Natural Heritage Trust of Australia Account
4 Natural Heritage Trust of Australia Account
There is continued in existence the Natural Heritage Trust of Australia Account.
Note: The Account was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999.
5
Nature of the Account
5 Nature of the Account
The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.
6
Investments and income of the Account
6 Investments and income of the Account
Investments
(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.
Note: An amount standing to the credit of the Account may be invested in accordance with the Public Governance, Performance and Accountability Act 2013.
Fixed income—uninvested amounts
(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.
Fixed‑income percentage
(3) For the purposes of the application of subsection (2) to a particular financial year, the fixed‑income percentage is:
(a) if the financial year begins on or before 1 July 2001:
(i) 8%; or
(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
(b) if the financial year begins on or after 1 July 2002:
(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
(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.
Advances on account of fixed income
(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.
(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.
(6) If, at the end of a financial year:
(a) the total amount credited to the Account under subsection (4) in respect of the financial year;
exceeds:
(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;
an amount equal to the excess must be debited from the Account.
7
Amounts not held on trust
7 Amounts not held on trust
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).
Part 3
Purposes of the Account
Part 3—Purposes of the Account
8
Purposes of the Account
8 Purposes of the Account
The purposes of the Account are as follows:
(a) the National Vegetation Initiative;
(b) the Murray‑Darling 2001 Project;
(c) the National Land and Water Resources Audit;
(d) the National Reserve System;
(e) the Coasts and Clean Seas Initiative;
(f) environmental protection (as defined by section 15);
(g) supporting sustainable agriculture (as defined by section 16);
(h) natural resources management (as defined by section 17);
(i) a purpose incidental or ancillary to any of the above purposes;
(j) the making of grants of financial assistance for any of the above purposes;
(k) an accounting transfer purpose (as defined by section 18).
9
Debits of proceeds from the partial privatisation of Telstra and interest earned from the Account
9 Debits of proceeds from the partial privatisation of Telstra and interest earned from the Account
(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:
(a) the National Vegetation Initiative;
(b) the Murray‑Darling 2001 Project;
(c) the National Land and Water Resources Audit;
(d) the National Reserve System;
(e) the Coasts and Clean Seas Initiative;
(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;
(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;
(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;
(i) a purpose incidental or ancillary to any of the above purposes;
(j) the making of grants of financial assistance for any of the above purposes.
(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.
10
Primary objective of the National Vegetation Initiative
10 Primary objective of the National Vegetation Initiative
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:
(a) conserving remnant native vegetation; and
(b) conserving Australia’s biodiversity; and
(c) restoring, by means of revegetation, the environmental values and productive capacity of Australia’s degraded land and water.
11
Primary objective of the Murray‑Darling 2001 Project
11 Primary objective of the Murray‑Darling 2001 Project
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.
12
Primary objectives of the National Land and Water Resources Audit
12 Primary objectives of the National Land and Water Resources Audit
For the purposes of this Act, the primary objectives of the National Land and Water Resources Audit are as follows:
(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;
(b) to provide a baseline for the purposes of carrying out assessments of the effectiveness of land and water degradation policies and programs.
13
Primary objective of the National Reserve System
13 Primary objective of the National Reserve System
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.
14
Primary objectives of the Coasts and Clean Seas Initiative
14 Primary objectives of the Coasts and Clean Seas Initiative
For the purposes of this Act, the primary objectives of the Coasts and Clean Seas Initiative are as follows:
(a) to ameliorate pollution problems in Australia’s coastal areas;
(b) to protect the environment in Australia’s coastal areas;
(c) to ameliorate threats to Australia’s marine biodiversity;
(d) to develop an oceans policy for Australia.
15
Meaning of environmental protection
15 Meaning of environmental protection
For the purposes of this Act, environmental protection means:
(a) maintaining, conserving, preserving or protecting components of the natural environment of Australia; or
(b) restoring, improving or replenishing components of the natural environment of Australia; or
(c) conserving or restoring Australia’s biodiversity; or
(d) developing or promoting waste minimisation in Australia; or
(e) developing or promoting clean production in Australia; or
(f) preventing, combating or rectifying pollution of the environment (whether natural or otherwise) of Australia; or
(g) carrying on research, or disseminating information, about:
(i) the natural environment of Australia; or
(ii) Australia’s biodiversity.
16
Meaning of sustainable agriculture
16 Meaning of sustainable agriculture
(1) For the purposes of this Act, sustainable agriculture means the use of agricultural practices and systems that maintain or improve the following:
(a) the economic viability of agricultural production;
(b) the social viability and well‑being of rural communities;
(c) the ecologically sustainable use of Australia’s biodiversity;
(d) the natural resource base;
(e) ecosystems that are influenced by agricultural activities.
(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.
17
Meaning of natural resources management
17 Meaning of natural resources management
For the purposes of this Act, natural resources management means:
(a) any activity relating to the management of the use, development or conservation of one or more of the following natural resources:
(i) soil;
(ii) water;
(iii) vegetation; or
(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).
18
Meaning of accounting transfer purpose
18 Meaning of accounting transfer purpose
For the purposes of this Act, each of the following is an accounting transfer purpose:
(a) making payments under section 5 of the Natural Resources Management (Financial Assistance) Act 1992;
(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.
19
Grant of financial assistance to a State
19 Grant of financial assistance to a State
(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.
(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.
(3) An agreement under subsection (2) may be entered into:
(a) by either of the following Ministers on behalf of the Commonwealth:
(i) the Minister;
(ii) the Agriculture Minister; or
(b) jointly by both of the following Ministers on behalf of the Commonwealth:
(i) the Minister;
(ii) the Agriculture Minister.
(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:
(a) environmental protection; and
(b) natural resources management; and
(c) sustainable agriculture.
(5) Subsection (4) does not limit subsection (2).
(6) This section does not affect the operation of Part 2 of the Natural Resources Management (Financial Assistance) Act 1992.
Note: State is given an extended meaning by section 54.
20
Grant of financial assistance to a person, or a body, other than a State
20 Grant of financial assistance to a person, or a body, other than a State
(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.
(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.
(3) An agreement under subsection (2) may be entered into:
(a) by either of the following Ministers on behalf of the Commonwealth:
(i) the Minister;
(ii) the Agriculture Minister; or
(b) jointly by both of the following Ministers on behalf of the Commonwealth:
(i) the Minister;
(ii) the Agriculture Minister.
Note: State is given an extended meaning by section 54.
21
Principles of ecologically sustainable development
21 Principles of ecologically sustainable development
(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.
(2) In making that decision, the Minister concerned must have regard to:
(a) the principles of ecologically sustainable development; and
(b) such other matters as the Minister concerned considers relevant.
(3) For the purposes of this section, the principles of ecologically sustainable development consist of:
(a) the following core objectives:
(i) to enhance individual and community well‑being and welfare by following a path of economic development that safeguards the welfare of future generations;
(ii) to provide for equity within and between generations;
(iii) to protect biological diversity and maintain essential ecological processes and life‑support systems; and
(b) the following guiding principles:
(i) decision‑making processes should effectively integrate both long‑term and short‑term economic, environmental, social and equity considerations;
(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;
(iii) the global dimension of environmental impacts of actions and policy should be recognised and considered;
(iv) the need to develop a strong, growing and diversified economy that can enhance the capacity for environmental protection should be recognised;
(v) the need to maintain and enhance international competitiveness in an environmentally sound manner should be recognised;
(vi) cost‑effective and flexible measures should be adopted;
(vii) decisions and actions should provide for broad community involvement on issues which affect the community.
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.
Part 4
Crediting of amounts to the Account
Part 4—Crediting of amounts to the Account
22
$1.1 billion derived from the initial partial sale of Telstra
22 $1.1 billion derived from the initial partial sale of Telstra
(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.
(2) The total amount credited to the Account under this section is not to exceed $1.1 billion.
22A
$250 million derived from the subsequent partial sale of Telstra
22A $250 million derived from the subsequent partial sale of Telstra
(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.
(2) The total amount credited to the Account under this section is not to exceed $250 million.
23
Budget appropriations
23 Budget appropriations
(1) This section applies if another Act appropriates an amount from the Consolidated Revenue Fund for credit to the Account.
(2) The amount is to be credited to the Account.
24
Gifts and bequests
24 Gifts and bequests
(1) This section applies if a gift or bequest is given or made for the purposes of the Account.
(2) An amount equal to the amount of the gift or bequest is to be credited to the Account.
25
Repayments of grants
25 Repayments of grants
(1) This section applies if:
(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
(b) the grant is repaid, in whole or in part.
(2) An amount equal to the repayment is to be credited to the Account.
26
Commonwealth receipts under funding agreements
26 Commonwealth receipts under funding agreements
(1) This section applies if:
(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
(b) the agreement contains a provision requiring an amount to be paid or repaid to the Commonwealth in specified circumstances; and
(c) the Commonwealth receives money under the agreement.
(2) An amount equal to the receipt is to be credited to the Account.
27
Income from assets acquired using amounts credited to the Account
27 Income from assets acquired using amounts credited to the Account
(1) This section applies if:
(a) an amount standing to the credit of the Account is debited and paid by the Commonwealth in acquiring property or interests; and
(b) an amount is received by the Commonwealth by way of income derived from the property or interests.
(2) An amount equal to the receipt is to be credited to the Account.
28
Proceeds of disposal of assets acquired using amounts credited to the Account
28 Proceeds of disposal of assets acquired using amounts credited to the Account
(1) This section applies if:
(a) an amount standing to the credit of the Account is debited and paid by the Commonwealth in acquiring property or interests; and
(b) an amount is received by the Commonwealth from the disposal of the property or interests.
(2) An amount equal to the receipt is to be credited to the Account.
29
Income from projects and related activities funded with amounts credited to the Account
29 Income from projects and related activities funded with amounts credited to the Account
(1) This section applies if:
(a) an amount standing to the credit of the Account is debited and paid by the Commonwealth in carrying out a project; and
(b) income is received by the Commonwealth from the project or from activities carried out in relation to the project.
(2) An amount equal to the receipt is to be credited to the Account.
Part 6
Miscellaneous
Part 6—Miscellaneous
40
Natural Heritage Ministerial Board
40 Natural Heritage Ministerial Board
(1) There is to be a Natural Heritage Ministerial Board, which is to consist of:
(a) the Minister; and
(b) the Agriculture Minister.
(2) The functions of the Natural Heritage Ministerial Board are as follows:
(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;
(b) to prepare estimates under section 41;
(c) to monitor the effectiveness of the administration of this Act in achieving:
(i) the primary objective of the National Vegetation Initiative; and
(ii) the primary objective of the Murray‑Darling 2001 Project; and
(iii) the primary objectives of the National Land and Water Resources Audit; and
(iv) the primary objective of the National Reserve System; and
(v) the primary objectives of the Coasts and Clean Seas Initiative; and
(vi) environmental protection; and
(vii) sustainable agriculture; and
(viii) natural resources management.
(3) For the purposes of this section, each of the following decisions is taken to be a matter that relates to the Account:
(a) a decision about a proposal to spend an amount standing to the credit of the Account;
(b) a decision relating to the investment of an amount standing to the credit of the Account;
(c) a decision to make a recommendation to the Governor‑General about the making of regulations under this Act;
(d) a decision under this Act;
(e) a decision under any other law of the Commonwealth, to the extent that the law relates to the Account.
41
Estimates
41 Estimates
(1) The Natural Heritage Ministerial Board must prepare estimates of debits from the Account that are to be made for purposes of the Account.
(2) The estimates are to be prepared for:
(a) each financial year; and
(b) such other periods (if any) as the Natural Heritage Ministerial Board determines.
(3) In exercising its powers under this section, the Natural Heritage Ministerial Board must have regard to:
(a) the investment strategy for the Account; and
(b) such other matters as the Natural Heritage Ministerial Board considers relevant.
(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.
42
Minimum balance in the Account after 30 June 2001
42 Minimum balance in the Account after 30 June 2001
(1) This section applies to a financial year that begins on or after 1 July 2001.
(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)).
(3) The base amount for the financial year that begins on 1 July 2001 is $300 million.
(4) This is how to work out the base amount for a subsequent financial year:
(a) multiply $300 million by the indexation factor for that year;
(b) if the result of that multiplication is not an amount of whole dollars—round up the result to the nearest whole dollar.
(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.
43
Annual report about the Account
43 Annual report about the Account
(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):
(a) a report about the operations of the Account during the financial year ended on that date; and
(b) financial statements relating to those operations; and
(c) the Auditor‑General’s report or reports under section 44 on the financial statements; and
(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).
(2) The report mentioned in paragraph (1)(a) must comply with written guidelines issued by the Finance Minister.
(3) The financial statements must comply with written guidelines issued by the Finance Minister.
(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.
(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).
(6) The obligations imposed by this section are in addition to, and not instead of, obligations imposed by any other law of the Commonwealth.
44
Audit of annual financial statements of the Account
44 Audit of annual financial statements of the Account
(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.
(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.
(3) In the report, the Auditor‑General must state whether, in the Auditor‑General’s opinion, the financial statements:
(a) have been prepared in accordance with guidelines in force under subsection 43(3); and
(b) give a true and fair view of the matters required by those guidelines.
If the Auditor‑General is not of that opinion, the Auditor‑General must state the reasons.
(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.
(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.
(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.
(7) Instead of preparing a single report, the Auditor‑General may prepare an initial report and one or more later supplementary reports.
45
Delegation by Minister
45 Delegation by Minister
(1) The Minister may, by writing, delegate to:
(a) the Secretary of the Department; or
(b) the Director of National Parks (within the meaning of the Environment Protection and Biodiversity Conservation Act 1999); or
(c) an SES employee or acting SES employee (whether or not in the Department);
all or any of the Minister’s powers under:
(d) this Act (other than section 40 or 41); or
(e) any other law of the Commonwealth, to the extent that that law relates to the Account.
(2) The delegate is, in the exercise of the power delegated under subsection (1), subject to the directions of the Minister.
46
Delegation by Agriculture Minister
46 Delegation by Agriculture Minister
(1) The Agriculture Minister may, by writing, delegate to:
(a) the Secretary of the Agriculture Department; or
(b) an SES employee or acting SES employee (whether or not in the Agriculture Department);
all or any of the powers conferred on the Agriculture Minister by:
(c) this Act (other than section 40 or 41); or
(d) any other law of the Commonwealth, to the extent that that law relates to the Account.
(2) The delegate is, in the exercise of the power delegated under subsection (1), subject to the directions of the Agriculture Minister.
47
Acceptance of gifts etc.
47 Acceptance of gifts etc.
(1) The Commonwealth must not accept a gift or bequest given or made for the purposes of the Account if:
(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
(b) the gift or bequest is required to be held on trust (within the ordinary meaning of that expression).
(2) If:
(a) an advertisement solicits gifts or bequests for the purposes of the Account; and
(b) the advertisement is authorised by the Commonwealth;
the advertisement must include a statement to the effect that the proceeds of the gift or bequest will be applied to a government program.
49
Appropriations for the purposes of the Natural Resources Management (Financial Assistance) Act 1992
49 Appropriations for the purposes of the Natural Resources Management (Financial Assistance) Act 1992
(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.
(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.
50
Regulations
50 Regulations
The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
53
External Territories
53 External Territories
This Act extends to all the external Territories.
54
Interpretation
54 Interpretation
In this Act:
Account means the Natural Heritage Trust of Australia Account continued in existence by section 4.
accounting transfer purpose has the meaning given by section 18.
agriculture includes:
(a) the cultivation of land; or
(b) the maintenance of animals for the purposes of selling them or their bodily produce, including natural increase; or
(c) fishing or aquaculture operations; or
(d) forest operations; or
(e) horticulture.
Agriculture Department means the Department administered by the Agriculture Minister.
Agriculture Minister means the Minister administering Part 2 of the Natural Resources Management (Financial Assistance) Act 1992.
Australia, when used in a geographical sense, includes:
(a) the external Territories; and
(b) the exclusive economic zone.
environmental protection has the meaning given by section 15.
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.
Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.
horticultural product means:
(a) fruits, including processed fruits; and
(b) vegetables, including:
(i) processed vegetables; and
(ii) mushrooms and other edible fungi; and
(iii) processed mushrooms and other processed edible fungi; and
(c) nuts, including processed nuts; and
(d) nursery products, including:
(i) trees, shrubs, plants, seeds, bulbs, corms and tubers; and
(ii) propagating material and plant tissue cultures, grown for ornamental purposes or for producing fruits, vegetables, nuts or cut flowers and foliage; and
(e) cut flowers and foliage, including processed cut flowers and foliage; and
(f) products prescribed by the regulations for the purposes of this paragraph.
horticulture includes the production of a horticultural product.
Natural Heritage Ministerial Board means the Natural Heritage Ministerial Board established by section 40.
natural resources management has the meaning given by section 17.
proceeds of the sale of shares in Telstra includes:
(a) an amount received by the Commonwealth directly or indirectly from:
(i) the sale‑scheme trustee (within the meaning of the Telstra Corporation Act 1991); or
(ii) an investor in Telstra;
under a Telstra sale scheme (within the meaning of that Act); and
(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).
State includes the Australian Capital Territory and the Northern Territory.
sustainable agriculture has the meaning given by section 16.
Telstra has the same meaning as in the Telstra Corporation Act 1991.
waste minimisation includes reduction of use, re‑use and recycling.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Introduction
Part 1—Introduction
1 Short title
1 Short title
This Act may be cited as the Natural Heritage Trust of Australia Act 1997.
2 Commencement
2 Commencement
This Act commences on the day on which it receives the Royal Assent.
3 Simplified outline
3 Simplified outline
The following is a simplified outline of this Act:
• This Act establishes the Natural Heritage Trust of Australia Account.
• The main source of money for the Account is $1.35 billion from the partial sale of Telstra.
• The main objective of the establishment of the Account is to conserve, repair and replenish Australia’s natural capital infrastructure.
• Amounts standing to the credit of the Account will be spent on the environment, sustainable agriculture and natural resources management.
Part 2 The Natural Heritage Trust of Australia Account
Part 2—The Natural Heritage Trust of Australia Account
4 Natural Heritage Trust of Australia Account
4 Natural Heritage Trust of Australia Account
There is continued in existence the Natural Heritage Trust of Australia Account.
Note: The Account was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999.
5 Nature of the Account
5 Nature of the Account
The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.
6 Investments and income of the Account
6 Investments and income of the Account
Investments
(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.
Note: An amount standing to the credit of the Account may be invested in accordance with the Public Governance, Performance and Accountability Act 2013.
Fixed income—uninvested amounts
(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.
Fixed‑income percentage
(3) For the purposes of the application of subsection (2) to a particular financial year, the fixed‑income percentage is:
(a) if the financial year begins on or before 1 July 2001:
(i) 8%; or
(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
(b) if the financial year begins on or after 1 July 2002:
(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
(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.
Advances on account of fixed income
(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.
(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.
(6) If, at the end of a financial year:
(a) the total amount credited to the Account under subsection (4) in respect of the financial year;
exceeds:
(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;
an amount equal to the excess must be debited from the Account.
Financial mechanics are prescribed in detail. Section 6 requires income from investments to be credited to the Account, imposes a fixed-income top-up on uninvested balances (8 % or Reserve Bank rate, subject to ministerial uplift), allows advances, and mandates claw-back of over-advances. Amounts in the Account are explicitly “not held on trust (within the ordinary meaning of that expression)” (s 7), removing ordinary fiduciary overlays. Part 4 (ss 22–29) exhaustively lists crediting sources: Telstra proceeds (capped), budget appropriations, gifts, grant repayments, receipts under funding agreements, income from acquired assets, disposal proceeds, and project-related income. Grants of financial assistance to States or other persons must be effected by written agreement (ss 19 and 20) that may, but need not, establish cooperative frameworks for environmental protection, natural resources management and sustainable agriculture. Before approving any spending proposal, the responsible Minister must have regard to the principles of ecologically sustainable development set out in s 21(3)—three core objectives and seven guiding principles drawn from the 1992 Council of Australian Governments endorsement—together with any other relevant matters (s 21(2)).
Oversight is centralised in the Natural Heritage Ministerial Board (the Minister and the Agriculture Minister) whose statutory functions include consultation, preparation of spending estimates, and monitoring effectiveness against all the statutory objectives (s 40). Estimates are mandatory; no debit may occur otherwise than in accordance with them (s 41(4)). After 30 June 2001 a minimum balance (initially $300 million, indexed by a Finance Minister factor) must be preserved (s 42). Annual reporting and audit obligations (ss 43 and 44) require operational reports, financial statements prepared under Finance Minister guidelines, Auditor-General certification, and an effectiveness assessment against agreement outcomes. The Act extends to external Territories (s 53) and contains an extended definition of “State” that includes the ACT and NT (s 54).
In short, the statute does not itself deliver environmental outcomes but creates a ring-fenced, purpose-limited, procedurally constrained funding vehicle that translates privatisation receipts into ongoing environmental expenditure while imposing transparency, ministerial discipline and cross-generational safeguards.
Who it affects
The legislation directly binds the Commonwealth executive, in particular the Minister (defined by context as the environment portfolio holder) and the Agriculture Minister (defined in s 54 by reference to administration of Part 2 of the Natural Resources Management (Financial Assistance) Act 1992). These two Ministers constitute the Natural Heritage Ministerial Board (s 40(1)) and are statutorily required to consult, prepare estimates, monitor effectiveness and make spending decisions subject to the ecologically sustainable development principles (s 21).
States and Territories (extended definition in s 54) are affected as potential recipients of financial assistance grants. Section 19 mandates that any such grant be governed by a written agreement that may set cooperative frameworks; the terms and conditions are not left to general administrative discretion but must be formalised. The Act therefore shapes the fiscal relationship between Commonwealth and States in the environmental and natural resource management fields.
Persons and bodies other than States (including community groups, non-government organisations, farmers, landholders and research institutions) are affected through the grant-making power in s 20. Any financial assistance must likewise be the subject of a written agreement executed by the Minister, the Agriculture Minister or both. Because sustainable agriculture expressly includes property management planning on the farm unit (s 16(2)), individual primary producers are both potential beneficiaries and addressees of the policy settings the fund supports.
Commonwealth departments and agencies are engaged through the Secretary of the Department and SES employees who may receive delegations (s 45), the preparation of annual reports (s 43(5) requires the Agriculture Minister to supply information), and the Auditor-General’s role in examining financial statements (s 44). The Finance Minister is given discrete powers to determine higher fixed-income percentages (s 6(3)), indexation factors for the minimum balance (s 42(5)), and guidelines for reports and statements (s 43(2)–(3)).
The Act also affects the Telstra sale process indirectly: the definitions in s 54 tie “proceeds of the sale of shares in Telstra” to the Telstra Corporation Act 1991 sale-scheme trustee and redeemable preference shares, thereby linking privatisation cash flows to environmental outcomes. Finally, because the Account may fund research, information dissemination, waste minimisation and clean production (s 15), a wide range of scientists, educators, industry bodies and consultants operate within the statutory envelope once funding agreements are executed.
By declaring that amounts are not held on trust (s 7) the Act removes potential equitable claims by third parties who might otherwise argue that the funds are impressed with a charitable or environmental trust. Conversely, the mandatory annual effectiveness reporting against agreement outcomes (s 43(1)(d)) gives funded parties a statutory expectation that their performance will be publicly evaluated.
Key duties and rights
Ministers hold the central duties. Before approving any proposal to spend money from the Account they must have regard to the nine principles of ecologically sustainable development listed in s 21(3); failure to do so would expose the decision to judicial review although the Act itself creates no private right of action. The Natural Heritage Ministerial Board must prepare annual and periodic estimates of debits (s 41(1)–(2)), have regard to the investment strategy and other relevant matters (s 41(3)), and monitor effectiveness against each statutory objective (s 40(2)(c)). The Minister must take all reasonable steps to keep the Account above the indexed minimum balance after 30 June 2001 (s 42(2)).
Reporting duties are prescriptive: the Minister must cause an annual report to be prepared containing operational information, financial statements, the Auditor-General’s report, and an effectiveness assessment (s 43(1)). That report must be tabled in each House within 15 sitting days (s 43(4)). The Agriculture Minister is under a duty to supply necessary information (s 43(5)). The Auditor-General must examine statements for compliance with guidelines and for a true and fair view, quantify any financial effects of non-compliance, and report any record-keeping contraventions or information shortfalls (s 44(3)–(6)).
Grant recipients’ duties arise only after agreement. Sections 19 and 20 require that terms and conditions be set out in a written agreement; once executed, those contractual duties (repayment triggers, reporting, project milestones) become the enforceable content. The Act itself does not impose statutory duties directly on grantees beyond the obligation to repay grants in whole or part where required, which then triggers a credit back to the Account (s 25).
Rights are largely procedural and contingent. Potential grantees have a right to negotiate an agreement but no right to funding. States and other bodies have the right to have any grant agreement executed by the Minister, the Agriculture Minister or both (ss 19(3), 20(3)). The Minister and Agriculture Minister have express delegation rights (ss 45 and 46) to the Secretary, Director of National Parks, SES employees or their equivalents, although the delegate remains subject to directions. The Finance Minister holds rights to make written instruments adjusting fixed-income percentages, setting indexation factors and issuing guidelines. The public has a right to the tabling of the audited annual report.
The Act creates no new justiciable individual rights in the environment itself; its rights framework is institutional and financial. The explicit statement that Account moneys are not held on trust (s 7) negates any equitable proprietary right that might otherwise have been asserted by environmental groups or future generations.
Penalties and enforcement
The Natural Heritage Trust of Australia Act 1997 contains no offence provisions, no civil penalty units, no infringement notice regimes and no provision for imprisonment or fines. Enforcement is therefore entirely administrative, financial and political.
The primary enforcement levers are the mandatory estimates discipline (s 41(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”), the minimum balance obligation (s 42), and the annual reporting and audit cycle (ss 43 and 44). Failure to maintain the minimum balance requires the Minister to have taken “all reasonable steps”; the statute leaves open political accountability rather than legal sanction. The Auditor-General’s report must flag any contravention of account-keeping obligations (s 44(5)), any material non-compliance with Finance Minister guidelines, and any inability to obtain necessary information (s 44(6)). These disclosures are laid before Parliament, engaging reputational and parliamentary scrutiny.
The Natural Heritage Ministerial Board’s monitoring function (s 40(2)(c)) is cast as a statutory duty but carries no express sanction for neglect. Delegations under ss 45 and 46 are subject to ministerial directions; a delegate who acts contrary to direction would be acting outside authority, exposing the decision to invalidity but not to a statutory penalty.
Grant agreements under ss 19 and 20 supply the contractual enforcement machinery. Repayment obligations, if triggered, result in the repaid sum being credited back to the Account (s 25), providing a financial self-correcting mechanism. Acceptance of conditional gifts is prohibited (s 47(1)), with the consequence that any purported conditional gift may simply be refused or, if accepted, treated as unconditional.
Because the Account is a special account under the Public Governance, Performance and Accountability Act 2013, the broader framework of that Act (including duties on accountable authorities) supplies additional indirect enforcement, although the 1997 Act does not itself incorporate those duties by reference. In practice, enforcement occurs through ministerial oversight, Senate estimates hearings, Auditor-General performance audits, and the political cost of any perception that Telstra privatisation proceeds have been spent contrary to the strictures in s 9(1).
How it interacts with other laws
The Act is deliberately woven into a web of Commonwealth financial, environmental and sectoral legislation. Section 5 designates the Account a “special account” for the purposes of the Public Governance, Performance and Accountability Act 2013, importing that statute’s investment rules (expressly noted in s 6(1)) and annual reporting disciplines. The investment income, fixed-income top-up and advance rules in s 6 operate as a gloss on the PGPA framework.
The Telstra Corporation Act 1991 supplies the definitional backbone for “proceeds of the sale of shares in Telstra” (s 54), linking the two statutes so that every dollar received from the sale-scheme trustee or by redemption of redeemable preference shares automatically generates a corresponding credit to the Account (ss 22 and 22A). The cap mechanism (originally $1.1 billion, supplemented by $250 million) is therefore a direct fiscal consequence of the privatisation legislation.
The Natural Resources Management (Financial Assistance) Act 1992 is engaged at two levels. First, accounting transfer purposes (s 18) permit debits from the Trust Account to meet payments under s 5 of the 1992 Act or to credit the Natural Resources Management Account continued under that Act; s 49 expressly treats such debits as appropriations for the purposes of the 1992 Act. Second, s 19(6) provides that the grant provisions of the 1997 Act do not affect the operation of Part 2 of the 1992 Act, preserving parallel funding streams.
The Environment Protection and Biodiversity Conservation Act 1999 appears only in the delegation provision (s 45(1)(b)), allowing the Director of National Parks to exercise delegated powers. The principles of ecologically sustainable development in s 21(3) mirror language found in the EPBC Act and in the Intergovernmental Agreement on the Environment, although the 1997 Act grounds them expressly in the 1992 COAG endorsement.
The Financial Management Legislation Amendment Act 1999 is acknowledged in the note to s 4: the Account “was established by subsection 5(3)” of that Act and is continued by the 1997 statute. Thus the 1997 Act operates as both a continuation and a re-badging instrument.
Because the Act extends to external Territories and the exclusive economic zone (s 54 definitions of “Australia” and “exclusive economic zone” by reference to the Seas and Submerged Lands Act 1973), it interacts with marine and Antarctic environmental legislation. The waste minimisation and clean production limbs of the environmental protection definition (s 15(d)–(e)) sit alongside the Hazardous Waste (Regulation of Exports and Imports) Act 1989 and the National Environment Protection Measures.
Finally, the delegation provisions (ss 45 and 46) interact with the general public service and ministerial delegation statutes, while the requirement to prepare estimates and maintain a minimum balance constrains the ordinary appropriation and drawing rights otherwise available under the PGPA Act.
Recent changes and why
Although the document presented is the consolidated version, its text reveals a series of amendments that have expanded and modernised the original 1997 scheme. The insertion of s 22A (additional $250 million from subsequent Telstra sales) extended the funding base beyond the initial $1.1 billion cap in s 22. The note to s 4 records that the Account “was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999”, indicating that the 1997 Act was itself amended to continue an Account originally created under the later statute—an unusual but effective legislative technique to preserve continuity after machinery-of-government changes.
References throughout to the Public Governance, Performance and Accountability Act 2013 (ss 5, 6, 54) replaced earlier financial management legislation, aligning the Trust with the contemporary Commonwealth financial framework that replaced the Financial Management and Accountability Act 1997. The indexation of the minimum balance (s 42(4)–(5)) and the power to determine higher fixed-income percentages (s 6(3)) were added or refined to protect the real value of the fund against inflation and low-interest environments after the initial privatisation windfall.
Section 49 was included to ensure that transfers to the Natural Resources Management (Financial Assistance) Act 1992 framework are treated as parliamentary appropriations, removing any doubt about legal authority for ongoing programs. The delegation provisions were broadened to include the Director of National Parks (s 45(1)(b)), reflecting the creation of that statutory office under the EPBC Act.
These changes were driven by three policy imperatives: first, to capture additional privatisation receipts once the initial $1.1 billion target was reached; second, to update the fund’s financial architecture to new public-governance standards; and third, to integrate the Trust more tightly with the National Landcare Program and regional natural resource management bodies that evolved in the early 2000s. The addition of explicit effectiveness reporting against agreement outcomes in s 43(1)(d) responded to parliamentary and Auditor-General pressure for better accountability of environmental expenditure. Collectively these amendments have converted a time-limited privatisation fund into a permanent, indexed, cross-referenced component of Australia’s environmental financing architecture.
Court challenges and controversies
The text of the Act itself contains no reference to any decided cases, judicial interpretations or parliamentary controversies. No statutory note or definition records any litigation. The principles of ecologically sustainable development in s 21(3) are expressly “based on the core objectives and guiding principles that were endorsed by the Council of Australian Governments in December 1992”, but the Act does not cite any judicial gloss on those principles.
Because the legislation is essentially a financial and administrative statute rather than a regulatory one, it has generated few justiciable disputes. The requirement in s 21 that a Minister “must have regard to” the principles before approving a proposal is framed in language that leaves substantial discretion; courts would likely treat it as a mandatory relevant consideration but would not substitute their own view of ecological sustainability. The statement in s 7 that amounts are “not held on trust (within the ordinary meaning of that expression)” was presumably included to forestall arguments that the Account constitutes a charitable or public trust enforceable by interested persons; no case testing that disclaimer appears in the text.
The differentiated spending rules in s 9 have the potential to generate controversy where a project is characterised as “environmental protection” but its primary objective is argued not to be maintenance or replenishment of environmental infrastructure. However, the Act provides no statutory mechanism for third-party challenge to such classifications beyond ordinary judicial review.
The mandatory minimum balance in s 42 could, in a severe budget crisis, force difficult choices between preserving the capital and funding urgent environmental works, but again the statute creates no enforceable private right. The annual report’s effectiveness assessment (s 43(1)(d)) invites parliamentary rather than judicial scrutiny.
In the absence of any cases or controversies recited in the legislation, the statute’s design appears intended to minimise litigation by emphasising ministerial discretion, written agreements, mandatory estimates, audited reporting and political accountability through the Natural Heritage Ministerial Board.
Gotchas
Most practitioners assume the entire Account is available for any environmental purpose; the sharp distinction in s 9(1) is therefore easily overlooked. Only Telstra privatisation proceeds (as defined in s 54) are confined to projects whose “primary objective” is to maintain or replenish environmental infrastructure. Interest can be spent on the wider list in s 8. Mischaracterising the source of a proposed debit can render the expenditure ultra vires.
The minimum balance obligation in s 42 is indexed and non-discretionary. After 1 July 2001 the Minister must take “all reasonable steps” to ensure the balance never falls below the base amount ($300 million indexed). In low-return years the fixed-income top-up under s 6(2) may be insufficient, forcing the Finance Minister to exercise the uplift power or constraining new commitments. Compliance teams must model the indexed floor before recommending large multi-year programs.
Section 16(2) contains an express “to avoid doubt” provision: property management planning on the farm unit is taken to be sustainable agriculture. This brings what many regard as routine farm business planning within the statutory purposes, yet it also means that funding for such planning must still satisfy the primary-objective test if Telstra proceeds are used.
The prohibition on accepting conditional gifts or bequests (s 47(1)) is absolute. Any condition other than application to the purposes of the Account, or any requirement that the gift be held on trust, prevents acceptance. Advertisements soliciting gifts must contain a prescribed statement that proceeds will be applied to a government program (s 47(2)), a transparency measure that can deter donors expecting earmarking.
The Natural Heritage Ministerial Board’s monitoring duty (s 40(2)(c)) extends to effectiveness against eight distinct objectives. Because the Board consists only of the two Ministers, the function is effectively self-monitoring; external stakeholders sometimes overlook that no independent statutory advisory body exists.
Delegation is limited: the Minister cannot delegate the Board functions in ss 40 or 41 (s 45(1)(d)). Estimates must be prepared by the Board itself. This prevents complete administrative delegation and can create bottlenecks when both Ministers’ diaries are full.
Finally, the extended definitions in s 54 pull in the exclusive economic zone and external Territories. Marine projects beyond the territorial sea can lawfully draw on the Account, but proponents must still satisfy the primary-objective test and the ecologically sustainable development principles, which include the “global dimension” of environmental impacts (s 21(3)(b)(iii)).
How to comply
Compliance for Commonwealth officials begins with the estimates discipline. The Natural Heritage Ministerial Board must prepare rolling estimates of debits for each financial year and any additional periods it chooses (s 41). No debit may occur outside those estimates. Before any spending proposal is approved, the responsible Minister must document regard to each of the nine ecologically sustainable development principles in s 21(3) and to any other relevant matters; a short minute recording the analysis is prudent.
When Telstra proceeds are to be used, officers must confirm that the project’s primary objective is maintenance or replenishment of environmental infrastructure (s 9(1)(f)–(h)). A project plan that merely recites one of the s 8 purposes is insufficient; the primary-objective test must be addressed expressly. Interest receipts may be allocated more flexibly but still only to a s 8 purpose.
Grants to States or other persons require a written agreement executed by the Minister, the Agriculture Minister or both (ss 19(3), 20(3)). The agreement should address repayment triggers, performance milestones, reporting, audit rights and, where appropriate, the cooperative framework contemplated by s 19(4). Because s 19(6) preserves the operation of Part 2 of the Natural Resources Management (Financial Assistance) Act 1992, dual funding streams must be reconciled to avoid double-counting or appropriation conflicts.
Annual reporting obligations are non-negotiable. Financial statements must follow Finance Minister guidelines (s 43(3)); the operational report must address effectiveness against agreement outcomes (s 43(1)(d)). The Agriculture Minister must be given sufficient information in time for the Minister to meet the tabling deadline (s 43(5)). The Auditor-General must receive the statements promptly (s 44(1)).
The minimum balance must be modelled monthly after 30 June 2001. If the indexed floor is threatened, new commitments should be deferred or alternative funding identified. Investment decisions must comply with the PGPA Act rules referenced in s 6.
For grant applicants, the key compliance step is negotiating and then strictly observing the written agreement. Repayments required under the agreement automatically credit the Account (s 25); late or incomplete reporting can trigger repayment clauses. Organisations receiving funds for natural resources management (s 17) should maintain records demonstrating that activities relate to soil, water or vegetation management or to supporting activities.
Gifts and bequests must be accepted only if unconditional and not required to be held on trust (s 47(1)). Any solicitation material must contain the government-program statement.
Delegates under ss 45 and 46 must keep a copy of the instrument of delegation and any ministerial directions; decisions made outside the delegation or contrary to direction risk invalidity.
In practice, compliance is best assured by maintaining a register that tracks, for every proposed debit, the source of funds (Telstra principal versus interest), the statutory purpose, satisfaction of the primary-objective test where relevant, the estimates reference, the s 21 principles analysis, and the existence of a funding agreement. Annual internal audit against the s 43 report content provides a useful health check. By treating the Act as a statutory code rather than general appropriations authority, officials and recipients avoid the most common compliance pitfalls.
Section 4Natural Heritage Trust of Australia Account
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).
Part 3 Purposes of the Account
Part 3—Purposes of the Account
8 Purposes of the Account
8 Purposes of the Account
The purposes of the Account are as follows:
(a) the National Vegetation Initiative;
(b) the Murray‑Darling 2001 Project;
(c) the National Land and Water Resources Audit;
(d) the National Reserve System;
(e) the Coasts and Clean Seas Initiative;
(f) environmental protection (as defined by section 15);
(g) supporting sustainable agriculture (as defined by section 16);
(h) natural resources management (as defined by section 17);
(i) a purpose incidental or ancillary to any of the above purposes;
(j) the making of grants of financial assistance for any of the above purposes;
(k) an accounting transfer purpose (as defined by section 18).
9 Debits of proceeds from the partial privatisation of Telstra and interest earned from the Account
9 Debits of proceeds from the partial privatisation of Telstra and interest earned from the Account
(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:
(a) the National Vegetation Initiative;
(b) the Murray‑Darling 2001 Project;
(c) the National Land and Water Resources Audit;
(d) the National Reserve System;
(e) the Coasts and Clean Seas Initiative;
(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;
(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;
(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;
(i) a purpose incidental or ancillary to any of the above purposes;
(j) the making of grants of financial assistance for any of the above purposes.
(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.
10 Primary objective of the National Vegetation Initiative
10 Primary objective of the National Vegetation Initiative
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:
(a) conserving remnant native vegetation; and
(b) conserving Australia’s biodiversity; and
(c) restoring, by means of revegetation, the environmental values and productive capacity of Australia’s degraded land and water.
11 Primary objective of the Murray‑Darling 2001 Project
11 Primary objective of the Murray‑Darling 2001 Project
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.
12 Primary objectives of the National Land and Water Resources Audit
12 Primary objectives of the National Land and Water Resources Audit
For the purposes of this Act, the primary objectives of the National Land and Water Resources Audit are as follows:
(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;
(b) to provide a baseline for the purposes of carrying out assessments of the effectiveness of land and water degradation policies and programs.
13 Primary objective of the National Reserve System
13 Primary objective of the National Reserve System
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.
14 Primary objectives of the Coasts and Clean Seas Initiative
14 Primary objectives of the Coasts and Clean Seas Initiative
For the purposes of this Act, the primary objectives of the Coasts and Clean Seas Initiative are as follows:
(a) to ameliorate pollution problems in Australia’s coastal areas;
(b) to protect the environment in Australia’s coastal areas;
(c) to ameliorate threats to Australia’s marine biodiversity;
(d) to develop an oceans policy for Australia.
15 Meaning of environmental protection
15 Meaning of environmental protection
For the purposes of this Act, environmental protection means:
(a) maintaining, conserving, preserving or protecting components of the natural environment of Australia; or
(b) restoring, improving or replenishing components of the natural environment of Australia; or
(c) conserving or restoring Australia’s biodiversity; or
(d) developing or promoting waste minimisation in Australia; or
(e) developing or promoting clean production in Australia; or
(f) preventing, combating or rectifying pollution of the environment (whether natural or otherwise) of Australia; or
(g) carrying on research, or disseminating information, about:
(i) the natural environment of Australia; or
(ii) Australia’s biodiversity.
16 Meaning of sustainable agriculture
16 Meaning of sustainable agriculture
(1) For the purposes of this Act, sustainable agriculture means the use of agricultural practices and systems that maintain or improve the following:
(a) the economic viability of agricultural production;
(b) the social viability and well‑being of rural communities;
(c) the ecologically sustainable use of Australia’s biodiversity;
(d) the natural resource base;
(e) ecosystems that are influenced by agricultural activities.
(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.
17 Meaning of natural resources management
17 Meaning of natural resources management
For the purposes of this Act, natural resources management means:
(a) any activity relating to the management of the use, development or conservation of one or more of the following natural resources:
(i) soil;
(ii) water;
(iii) vegetation; or
(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).
18 Meaning of accounting transfer purpose
18 Meaning of accounting transfer purpose
For the purposes of this Act, each of the following is an accounting transfer purpose:
(a) making payments under section 5 of the Natural Resources Management (Financial Assistance) Act 1992;
(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.
19 Grant of financial assistance to a State
19 Grant of financial assistance to a State
(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.
(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.
(3) An agreement under subsection (2) may be entered into:
(a) by either of the following Ministers on behalf of the Commonwealth:
(i) the Minister;
(ii) the Agriculture Minister; or
(b) jointly by both of the following Ministers on behalf of the Commonwealth:
(i) the Minister;
(ii) the Agriculture Minister.
(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:
(a) environmental protection; and
(b) natural resources management; and
(c) sustainable agriculture.
(5) Subsection (4) does not limit subsection (2).
(6) This section does not affect the operation of Part 2 of the Natural Resources Management (Financial Assistance) Act 1992.
Note: State is given an extended meaning by section 54.
20 Grant of financial assistance to a person, or a body, other than a State
20 Grant of financial assistance to a person, or a body, other than a State
(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.
(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.
(3) An agreement under subsection (2) may be entered into:
(a) by either of the following Ministers on behalf of the Commonwealth:
(i) the Minister;
(ii) the Agriculture Minister; or
(b) jointly by both of the following Ministers on behalf of the Commonwealth:
(i) the Minister;
(ii) the Agriculture Minister.
Note: State is given an extended meaning by section 54.
21 Principles of ecologically sustainable development
21 Principles of ecologically sustainable development
(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.
(2) In making that decision, the Minister concerned must have regard to:
(a) the principles of ecologically sustainable development; and
(b) such other matters as the Minister concerned considers relevant.
(3) For the purposes of this section, the principles of ecologically sustainable development consist of:
(a) the following core objectives:
(i) to enhance individual and community well‑being and welfare by following a path of economic development that safeguards the welfare of future generations;
(ii) to provide for equity within and between generations;
(iii) to protect biological diversity and maintain essential ecological processes and life‑support systems; and
(b) the following guiding principles:
(i) decision‑making processes should effectively integrate both long‑term and short‑term economic, environmental, social and equity considerations;
(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;
(iii) the global dimension of environmental impacts of actions and policy should be recognised and considered;
(iv) the need to develop a strong, growing and diversified economy that can enhance the capacity for environmental protection should be recognised;
(v) the need to maintain and enhance international competitiveness in an environmentally sound manner should be recognised;
(vi) cost‑effective and flexible measures should be adopted;
(vii) decisions and actions should provide for broad community involvement on issues which affect the community.
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 199
This is an opening excerpt, not the complete document.
Natural Heritage Trust of Australia Act 1997 | Zoe