22. Investment by the Commonwealth

Guide to this section

The purpose of this section is to set out additional forms of investment that the Finance Minister and Treasurer are authorised to make for the Commonwealth.

This section is made for subparagraph 58(8)(a)(iii) of the Act.

(1) Each of the following forms of investment is an authorised investment for the Commonwealth:

(a) a bill of exchange that is accepted or endorsed only by a bank;

(b) a professionally-managed money market trust, but only if the Finance Minister or the Treasurer is satisfied that:

(i) the only investments managed by the trust are those referred to in paragraph (a) of this subsection or subparagraph 58(8)(a)(i) or (ii) of the Act; and

(ii) a charge over trust assets does not support any borrowing by the trustee in relation to the trust;

(c) a dematerialised security that is the equivalent of an investment referred to in paragraph (a) of this subsection or subparagraph 58(8)(a)(i) of the Act.

(2) A dematerialised security is a dematerialised security that is deposited in the Austraclear System.

Note: Information about the Austraclear System can be found on the Australian Securities Exchange’s website (http://www.asx.com.au).

Last updated: 13 January 2016