2013‑2014

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Infrastructure Australia Amendment (Cost Benefit Analysis and Other Measures) Bill 2014

No.      , 2014

(Infrastructure and Regional Development)

A Bill for an Act to amend the Infrastructure Australia Act 2008, and for related purposes

Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedules............................................................................................ 2

Schedule 1—Amendments                                                                                                3

Infrastructure Australia Act 2008                                                                            3

A Bill for an Act to amend the Infrastructure Australia Act 2008, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Infrastructure Australia Amendment (Cost Benefit Analysis and Other Measures) Act 2014.

2  Commencement

                   This Act commences on the day after this Act receives the Royal Assent.

3  Schedules

                   Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Infrastructure Australia Act 2008

1  Section 3

Insert:

proposal means a proposal made by a person other than Infrastructure Australia.

2  After subsection 5A(1)

Insert:

             (2)  Without limiting the function referred to in subsection (1), that function includes evaluating proposals for investment in, or enhancements to, nationally significant infrastructure that involve Commonwealth funding of at least $100 million.

3  After section 5A

Insert:

5AA  Cost benefit analysis

             (1)  Infrastructure Australia must not include a proposal in an Infrastructure Priority List referred to in paragraph 5(b) unless a cost benefit analysis of the proposal has been prepared in accordance with a method approved under subsection (2).

             (2)  Infrastructure Australia may approve a method for preparing cost benefit analyses of proposals. The method must enable proposals to be compared.

             (3)  Infrastructure Australia must cause a method approved under subsection (2) to be reviewed:

                     (a)  no later than 6 months after the commencement of this section; and

                     (b)  every 24 months after that first review.

             (4)  Without limiting subsection (3), a review under that subsection must consider whether cost benefit analyses are adequately taking account of social, environmental and economic costs and benefits.

             (5)  The report of the review must be made available on Infrastructure Australia’s website within 14 days of the report being approved by the Board.

4  Paragraph 5B(1)(ba)

Repeal the paragraph.

5  Subsections 5B(3), (6), (7) and (8)

Repeal the subsections.

6  Paragraph 39C(d)

Omit “subsection 5B(3)”, substitute “subsection 5AA(2)”.

7  Before section 40

Insert:

39E  Indexation of amounts

             (1)  The amount referred to in subsection 5A(2) is to be indexed in accordance with the method determined by the Minister by legislative instrument. The method must provide for the amount to be indexed:

                     (a)  for the first time on a day in 2019; and

                     (b)  at least once every 5 years.

             (2)  Subsection 5A(2) is taken, on and from a day of indexation, to refer to the amount as indexed on that day.