Queensland Future Fund Act 2020

Queensland Future Fund. Section 4 defines a Queensland Future Fund by operation: a fund established under this Act is a Queensland Future Fund. The only fund expressly established by the Act itself is the Debt Retirement Fund (s 9(1)), but the definition leaves open the possibility that other Queensland Future Funds could be created under the Act in future, either by further legislative provision or by regulation, although the Act provides no direct mechanism for executive creation.

Debt Retirement Fund. This is the Queensland Future (Debt) Retirement Fund, established by s 9(1). Its purpose is stated with precision: to provide funding for reducing the State’s debt (s 9(2)). The fund is not a consolidated fund account but a special purpose account (s 5(3)). Contributions to it are mandatory in three circumstances: an investment the Treasurer directs be contributed; an amount that must be contributed under another Act; and moneys from an investment already contributed to the fund (s 10(1)(a)-(c)). Additionally, an amount may be contributed if another Act states it may be contributed (s 10(2)). Payments from the fund are tightly constrained (see next section).

Prescribed State asset. This concept is central to the perpetuity requirement in s 8. A prescribed State asset means an asset (or part of an asset, or an interest in an asset) that, immediately before being given to a State entity for the purpose of contributing an investment to a Queensland Future Fund, is held directly or indirectly by a State entity, and is prescribed by regulation to be a prescribed State asset (s 8(3)). The requirement in s 8(2) that such an asset be held by a State entity in perpetuity is absolute and applies irrespective of any other provision.

State entity. Defined for the purposes of s 8 as either a government entity under the Public Sector Act 2022, s 276, or a government owned corporation (s 8(3)). This definition was amended in 2022 to replace an earlier reference to the Public Service Act. A State entity may give a prescribed State asset to another State entity for the fund contribution purpose, which then triggers the perpetual holding requirement.

Accountable officer. For the purpose of the delegation power in s 12, the accountable officer means the accountable officer of the department under the Financial Accountability Act 2009 (s 12(2)). The Treasurer may delegate functions and powers to this officer except the specific power to make a payment from the Debt Retirement Fund to reduce State debt (s 12(1)).

Information relevance. Section 6 allows the Treasurer, in performing a function or exercising a power under the Act, to have regard to any information the Treasurer considers relevant, including information or advice from another entity. This is an unfettered discretion subject only to the general law, giving the Treasurer wide latitude in, for example, deciding what investments to direct to the fund.

Compliance reporting. Section 7 imposes a mandatory disclosure obligation in the department’s annual financial statements prepared under the Financial Accountability Act 2009, s 62. For each Queensland Future Fund, the statements must include details of contributions made in the financial year, and details of payments made, including the purpose of each payment and a statement of whether the payment was made in compliance with the Act (s 7(a),(b)).

The Act binds all persons, including the State (s 3). While the provision is broad, the practical impact of the Act is concentrated on government actors and entities rather than private citizens or businesses. The primary office-holder affected is the Treasurer of Queensland, who bears the responsibility for administering any Queensland Future Fund (s 5(1)). The Treasurer must direct contributions (s 10(1)(a)), determine which investments are contributed, approve payments from the Debt Retirement Fund (subject to s 11 and to the delegation limitation), and ensure that annual financial statements contain the required details (s 7). The Treasurer may also exercise the power to delegate functions to the accountable officer, but cannot delegate the power to make debt-reduction payments (s 12(1)).

The department (the department responsible for financial administration, typically Treasury) is affected through its obligation to maintain special purpose accounts for any Queensland Future Fund (s 5(3)), and to prepare annual financial statements that include fund details (s 7). The accountable officer of that department may receive delegated functions and powers (s 12(1)), becoming responsible for day-to-day administration of the fund, but not for debt-reduction payment approvals.

State entities , defined as government entities under the Public Sector Act 2022, s 276, and government owned corporations (s 8(3)) , are directly affected when they hold assets that are prescribed by regulation as prescribed State assets. If such an entity gives a prescribed State asset to another State entity for the purpose of contributing an investment to a Queensland Future Fund, the receiving entity (and any subsequent transferee) must hold that asset, directly or indirectly, in perpetuity (s 8(2)). This imposes an inalienability constraint on those assets that does not apply to other assets of the entity.

Government owned corporations are caught by the State entity definition in s 8(3)(b). This means that corporations such as energy or transport GOCs that hold prescribed assets and transfer them for fund purposes become subject to the perpetuity holding requirement. The Act does not otherwise regulate GOCs.

Other Acts and their administering bodies may also be affected. Section 10(1)(b) requires that an amount which must be contributed to the fund under another Act must be contributed; s 10(2) permits contributions where another Act states amounts may be contributed. This means that legislation outside this Act can trigger mandatory or optional contributions, impacting the administering agencies of those Acts.

The Governor in Council is affected in the narrow sense that regulations may be made under the Act (s 13). These regulations could prescribe State assets for the purpose of s 8, or potentially create further funds, contributions rules, or administrative details.

The consolidated fund is not affected in that Queensland Future Funds do not form part of it (s 5(2)). This has implications for budget presentation and borrowing; moneys in the fund are outside the consolidated fund and therefore not available for general government expenditure without a valid payment purpose under s 11.

Treasurer's duty to administer. The Treasurer is responsible for administering a Queensland Future Fund (s 5(1)). This duty includes managing contributions, ensuring payments comply with the Act, and reporting annually. There is no explicit duty to maximise returns or to act with commercial prudence, but the Act does not exclude the application of general fiduciary or public law duties.

Treasurer's right to direct contributions. The Treasurer has the power to direct that an investment be contributed to the Debt Retirement Fund (s 10(1)(a)). This power is discretionary; the Act does not specify criteria for when a direction must be given. The Treasurer may rely on any information considered relevant when deciding to direct a contribution (s 6), which may include advice from external entities or internal analysis.

Treasurer's delegation power. The Treasurer may delegate any function or power under the Act to the accountable officer of the department (s 12(1)), except the specific power to make a payment from the Debt Retirement Fund to reduce the State’s debt. This is a significant limitation: the Treasurer cannot delegate the decision to actually pay down debt, ensuring ministerial accountability for debt reduction. All other functions, including directing contributions and approving administrative fees, may be delegated.

Right to have regard to relevant information. Section 6 confers a procedural right on the Treasurer. When performing any function or power under the Act, the Treasurer may consider any information considered relevant, including information or advice from another entity. This is not a duty; it is an enabling provision that preserves wide discretion and removes any implied constraint that only certain categories of information may be used.

Duty to ensure perpetual holding of prescribed State assets. Section 8(2) imposes an absolute duty. If a prescribed State asset is given by a State entity to another State entity for the purpose of contributing an investment to a Queensland Future Fund, that asset must be held, directly or indirectly, by a State entity in perpetuity. There is no exception or sunset clause in the Act. This duty binds the receiving entity and any subsequent holder that is a State entity. If the asset is later transferred to a non-State entity, the duty may be breached; the Act does not provide for enforcement mechanisms but the duty is strict.

Right of other Acts to mandate or permit contributions. The Act does not itself prescribe all contributions. Other Acts may require that amounts be contributed to the Debt Retirement Fund (s 10(1)(b) creates a mandatory obligation for such amounts to be contributed) or may state that amounts may be contributed (s 10(2) permits but does not require such contributions). This creates a legislative coordination mechanism: other Acts can feed into the fund without amending this Act each time.

Limitation on payments from the Debt Retirement Fund. Payments can only be made for two purposes: (a) paying an amount to reduce the State’s debt, and (b) paying fees or expenses relating to the administration of the fund (s 11). This is a strict constraint. Any payment for any other purpose would be non-compliant. The annual financial statements must declare whether each payment was made in compliance with the Act (s 7(b)), so non-compliance would be publicly reported.

Duty to report. The department must include in its annual financial statements details of contributions made, payments made, the purpose of each payment, and whether each payment was made in compliance with the Act (s 7). This is a transparency obligation that allows public and parliamentary scrutiny of fund operations.

The Act contains no express penalty provisions, no offence provisions, and no civil penalty regime. There are no infringement notices, no criminal sanctions for breach of duties, and no specific enforcement mechanisms within the Act itself. This does not mean the Act is unenforceable. Rather, enforcement arises through other mechanisms, including the annual financial statements requirement, general public law remedies, and the Financial Accountability Act 2009.

The primary enforcement tool is transparency and accountability through mandatory reporting. Section 7 requires the department's annual financial statements to include details of payments made from any Queensland Future Fund, including the purpose of each payment and whether the payment was made in compliance with the Act. This creates a public record of non-compliance. If a payment is made for an impermissible purpose (contravening s 11), that would be identified in the statement. The statement is then tabled in Parliament or otherwise made publicly available under the Financial Accountability Act 2009, enabling political and media scrutiny.

The Financial Accountability Act 2009 provides the broader accountability framework. The special purpose accounts for a Queensland Future Fund are kept under that Act (s 5(3)), and the department's annual financial statements are prepared under s 62 of that Act. The Financial Accountability Act 2009 contains its own provisions for audit, reporting, and potential consequences for financial mismanagement, which would apply to the administration of the fund.

General law remedies also apply. As a public official, the Treasurer is subject to administrative law principles. A decision to make a payment that is not for a permitted purpose under s 11 could be challenged by way of judicial review for jurisdictional error or ultra vires. Similarly, a failure to ensure a prescribed State asset is held in perpetuity (contravening s 8(2)) could be addressed through public law proceedings, potentially including an injunction to compel compliance or a declaration that a transfer was invalid.

The delegation restriction in s 12(1) provides a form of internal enforcement: the Treasurer cannot delegate the power to make debt-reduction payments. If a payment is made by a delegate, it would be beyond power and could be invalid. The accountable officer would have no authority to make such a payment, and any such payment would likely be recoverable or challengeable.

The Act does not provide for penalties for the Treasurer or other officers for breach. There is no statutory cause of action for loss caused by non-compliance. For a private person or entity that is bound by the Act (s 3), there is no penalty provision either. However, legal consequences may flow from non-compliance via other legislation (e.g., improper financial administration under the Financial Accountability Act 2009 could lead to disciplinary action under the Public Sector Act 2022).

Financial Accountability Act 2009. This is the primary interacting statute. Section 5(3) of the Queensland Future Fund Act requires accounts for a Queensland Future Fund to be kept as special purpose accounts of the department under the Financial Accountability Act 2009. That Act, s 69A(3), provides that special purpose accounts under that Act are not departmental accounts. This interaction ensures fund accounts are separate from the department's operational accounts but still subject to the Financial Accountability Act's general accountability and reporting obligations. The department's annual financial statements under s 62 of the Financial Accountability Act 2009 must include the fund information specified in s 7 of the Queensland Future Fund Act.

Public Sector Act 2022. The definition of State entity in s 8(3)(a) of the Queensland Future Fund Act refers to a government entity under the Public Sector Act 2022, s 276. That section defines government entities. The reference was amended in 2022 (see Amendment history) to update from the earlier Public Service Act. This is a standard cross-reference that will track future amendments to the public sector legislation.

Other Acts that mandate or permit contributions. Section 10(1)(b) requires that an amount which must be contributed to the Debt Retirement Fund under another Act must be contributed. Section 10(2) allows contributions if another Act states the amount may be contributed. This creates a dynamic interaction: the Queensland Future Fund Act does not itself enumerate all contribution sources but relies on other legislation to specify amounts. For example, a hypothecated tax or a resource royalty revenue stream could be directed to the fund via amendments to the relevant taxing or revenue Act. The Queensland Future Fund Act provides the receiving vessel, while other Acts provide the inflow.

Consolidated Fund. Section 5(2) provides that a Queensland Future Fund does not form part of the consolidated fund. This is significant under the Constitution of Queensland 2001 and the Financial Accountability Act 2009, which govern consolidated fund receipts and payments. Money in the fund is not available for appropriation by Parliament for general purposes. It is ring-fenced. This interaction limits the executive's ability to access fund money except for the specific purposes in s 11.

Regulation-making power. Section 13 gives the Governor in Council power to make regulations under the Act. Regulations could prescribe assets as prescribed State assets for s 8(3), or could address other matters necessary to give effect to the Act, such as administrative details, further rules about contributions or payments, or transitional provisions. Any regulations must not be inconsistent with the Act and are subject to disallowance under the Statutory Instruments Act 1992.

State entity interactions. The definition of State entity in s 8(3) encompasses government entities and government owned corporations. Those entities are governed by their own enabling Acts. The Queensland Future Fund Act imposes an additional obligation (perpetual holding) on those entities when they transfer prescribed State assets for fund purposes. This may interact with other statutory duties of those entities, such as obligations to act commercially or to maximise returns. The Act does not contain a provision overriding those duties in the event of conflict, so a GOC might need to reconcile the perpetuity requirement with its other legal obligations.

No interaction with taxing or spending legislation unless specified. The Act does not appropriate money from consolidated revenue; it only receives contributions under its own terms or under other Acts. It does not create any new taxes or charges. It does not amend the Appropriation Act or other supply legislation.

The source text of the Act shows one amendment noted directly: section 8 is marked as amended by 2022 No. 34 s 365 sch 3. The amending legislation is the Public Sector Act 2022. The amendment updated the definition of State entity in s 8(3)(a) from an earlier reference (presumably to a provision in the now-repealed Public Service Act 2009) to the current reference to "a government entity under the Public Sector Act 2022, section 276". This was a machinery amendment to maintain consistency with the new public sector legislative framework that commenced in 2022. No other amendments are recorded in the text. The Act was originally enacted in 2020 as the Queensland Future Fund Act 2020. The rest of the Act appears unamended as at the date of the source provided. No amendment history is given for ss 1-7 or ss 9-13. There is no indication of commencement dates, but the Act would have commenced on its date of assent (or as provided in its original commencement provisions, which are not reproduced in the source). The Act has not been subject to major substantive amendments, only the cross-reference update. There is no provision for review, expiration, or sunset in the Act.

The source text of the Queensland Future Fund Act 2020 includes no references to court proceedings, judicial decisions, or litigation. The Act is not listed as having been considered or interpreted in any reported case within the provided material. This is unsurprising given the Act's narrow scope, its recent enactment (2020), and its limited engagement with private rights or contentious matters. The Act primarily establishes structural arrangements for public financial management rather than creating enforceable private law rights. No cases are named in the Act itself. There is no reference to any court or tribunal in the Act (no mention of appeals, judicial review, or tribunal processes). The Act does not create any statutory cause of action. The most likely avenue for litigation would be an administrative law challenge to a decision of the Treasurer (e.g., a direction to contribute an investment, or a payment decision), or a challenge concerning the perpetual holding requirement in s 8. However, no such litigation is recorded in the source. The absence of litigation history does not indicate that no proceedings have occurred; it only indicates that none are referenced in the Act or the provided material. A comprehensive search of court records would be required to confirm whether any proceedings have been brought under or relating to the Act. Given the Act's limited scope, litigation would be rare and would likely involve constitutional questions about the treatment of State assets or the scope of the delegation power.

Perpetual holding requirement may be absolute. Section 8(2) states that a prescribed State asset given for the purpose of contributing an investment to a Queensland Future Fund "must be held, directly or indirectly, by a State entity in perpetuity." There is no exception, no power to sell or dispose of the asset, no power to release the asset from the requirement, and no sunset clause. If an asset is prescribed by regulation, any transfer of that asset to a non-State entity (even for market value) would breach s 8(2). This could have significant implications for asset management: the State cannot later privatise an entity that holds such an asset, or sell the asset, without legislative amendment. The definition of "prescribed State asset" (s 8(3)) includes "an interest in an asset or part of an asset", so even a partial interest is caught. The term "in perpetuity" is not defined and may create practical difficulties as it is a common law concept that may not absolutely mean forever, but in the absence of any discharge mechanism, a very long-term constraint is imposed.

Debt reduction payment power cannot be delegated. Section 12(1) excludes from delegation "a function or power in relation to the making of a payment from the Debt Retirement Fund to reduce the State’s debt." This is more than just the final approval; it extends to "any function or power in relation to the making of a payment." This could include preparatory steps such as determining the amount, verifying the debt, or authorising the transfer. Only the Treasurer may personally perform those functions. This is a narrow but significant reservation of power that prevents a delegation scheme from covering debt-reduction decisions.

Treasurer may rely on any information, but that cuts both ways. Section 6 gives the Treasurer a broad right to have regard to any relevant information. This means the Treasurer cannot be said to have acted improperly by considering information that would ordinarily be inadmissible or irrelevant in other contexts. However, it also means the Treasurer cannot be compelled to consider particular information; there is no duty to have regard to specific matters. The discretion is wide but may still be reviewable on Wednesday unreasonableness grounds if a decision is manifestly absurd, given the information available.

Payment purposes are strictly limited. Section 11 allows only two types of payments: reducing State debt, and paying fees or expenses relating to administration. This means the fund cannot be used for investment in new assets, operational expenditure of government, or any other purpose not squarely within those two categories. The definition of "fees or expenses relating to the administration of the fund" could be litigated if it is used to pay for general departmental overheads that would have been incurred anyway. The phrase suggests expenses directly attributable to the fund's management, not ordinary departmental running costs.

Compliance reporting is mandatory but self-reporting. Section 7 requires the department to include in its annual financial statements whether each payment was made in compliance with the Act. There is no external verification mechanism specified. The Auditor-General audits the department's financial statements under the Financial Accountability Act 2009, so the compliance statement would be subject to audit scrutiny. But the obligation remains on the department to determine and disclose compliance; no independent officer or body is given a monitoring role under this Act.

Other Acts may force contributions without the Treasurer's approval. Section 10(1)(b) says amounts that must be contributed under another Act must be contributed. This could override any discretion the Treasurer might otherwise have. If another Act says a certain amount must be paid into the Debt Retirement Fund, the Treasurer has no power to delay or refuse. Similarly, s 10(2) allows contributions if another Act states the amount may be contributed; the Treasurer may still need to accept such contributions.

Prescribed State asset definition depends on regulations. The asset must be prescribed by regulation (s 8(3)(b)). Until a regulation is made, no asset falls within the definition. This gives the executive flexibility to decide which assets are caught. However, once prescribed, the perpetual holding requirement is mandatory. Practitioners should check whether any regulations have been made and what assets are listed.

No limitation on investment types. Section 10(1)(a) allows the Treasurer to direct that "an investment" be contributed. The Act does not limit what may constitute an investment. It could be cash, securities, real property, or other assets. However, if a prescribed State asset is involved, the perpetual holding requirement in s 8 may be triggered depending on the purpose of the transfer.

Act binds the State but not the Treasurer personally. Section 3 says the Act binds all persons, including the State. The Treasurer acts as the State official. No personal liability is imposed on the Treasurer for breach; the Act does not create any personal liability provision.

Step 1: Identify whether a Queensland Future Fund is being created or has been created. The only fund currently established is the Debt Retirement Fund under s 9(1). If the government creates other funds by amendment or regulation, the same compliance steps apply. The department must ensure that any new fund is established by or under the Act and that its accounts are set up as special purpose accounts of the department under the Financial Accountability Act 2009 (s 5(3)).

Step 2: Ensure all contributions are properly directed or received. Contributions to the Debt Retirement Fund must be made only in accordance with s 10. If the Treasurer directs an investment to be contributed (s 10(1)(a)), document the direction in writing, and ensure it is within the Treasurer's power. If another Act requires a contribution (s 10(1)(b)), ensure that the amount is transferred to the fund as required by that other Act, and that the transfer is consistent with the Queensland Future Fund Act. If money from an investment already in the fund is received (s 10(1)(c)), it must be credited back to the fund; it cannot be used elsewhere. For permissive contributions under s 10(2), verify that the other Act expressly states the amount may be contributed to the Debt Retirement Fund.

Step 3: Comply with the strict payment limits. No payment may be made from the Debt Retirement Fund except for: (a) paying an amount to reduce the State’s debt, or (b) paying fees or expenses relating to administration of the fund (s 11). Before any payment, conduct a legal review to confirm the payment purpose falls within these categories. For debt reduction payments, ensure that the payment is made to the appropriate creditor or debt servicing account, and that the reduction is properly recorded. For administrative fees and expenses, ensure they are directly attributable to fund administration and not general departmental overhead; maintain an audit trail showing the connection. The Treasurer must personally authorise any payment to reduce State debt; this authority cannot be delegated (s 12(1)).

Step 4: Manage prescribed State assets with care. If a State entity (government entity under the Public Sector Act 2022, s 276, or a government owned corporation) transfers an asset to another State entity for the purpose of contributing an investment to a Queensland Future Fund, check whether the asset is a prescribed State asset under s 8(3). The asset must be prescribed by regulation. If it is prescribed, the receiving entity must hold it, directly or indirectly, in perpetuity (s 8(2)). This means no subsequent sale or transfer to a non-State entity is permitted. Entities should maintain a register of such assets and ensure that any proposed disposal is prevented. If the asset is not prescribed by regulation, no such obligation arises. Legal advice should be sought before any transfer of a State asset for fund purposes to determine if it is a prescribed State asset and whether the perpetuity requirement will be triggered.

Step 5: Maintain proper accounts. The fund's accounts are special purpose accounts of the department under the Financial Accountability Act 2009 (s 5(3)). Ensure that accounting policies comply with that Act and applicable accounting standards. The accounts must not be treated as departmental accounts for any purpose (s 5(3) by reference to the Financial Accountability Act 2009, s 69A(3)).

Step 6: Prepare annual financial statements with fund details. The department's annual financial statements under the Financial Accountability Act 2009, s 62 must include for each Queensland Future Fund: (a) details of contributions made in the financial year, (b) details of payments made, including the purpose of each payment, and (c) a statement of whether each payment was made in compliance with the Act (s 7). This requires keeping detailed records of each contribution and payment, the legal basis for each, and a compliance assessment. The compliance assessment should be prepared with input from legal advisers.

Step 7: Manage delegations. The Treasurer may delegate functions and powers to the accountable officer (s 12(1)). The delegation must be in writing and should specify which functions are delegated. It must expressly exclude the function or power of making a payment from the Debt Retirement Fund to reduce State debt. The accountable officer should be aware of the limits of the delegation and must not make debt-reduction payments. The Treasurer should regularly review the delegation instrument.

Step 8: Monitor for relevant information and other Acts. The Treasurer should maintain awareness of any information that may be relevant to fund decisions (s 6) and of legislative amendments to other Acts that may create or change contribution obligations (s 10). Compliance teams should monitor Queensland legislation for Acts that specify amounts to be contributed to the Debt Retirement Fund.

Step 9: Ensure regulations are followed. If regulations are made under s 13 (for example, prescribing assets under s 8(3)), ensure all affected State entities are notified and comply. The regulations may also impose additional requirements not specified in the Act; those must be complied with as well.