Committee Details

COMMITTEE'S CONSIDERATION

In its Report No. 54, 57th Parliament – Annual Report 2022-2023 tabled on 7 November 2023, the committee reported on a summary of its activities, including its consideration of Auditor-General Report 11: 2021-22 – Establishing the Queensland Future Fund.   After seeking information from Queensland Treasury and asking further questions about the findings of the report at briefings with the Auditor-General and QAO staff, the committee determined not to undertake any further consideration or inquiry and made no recommendations to the Legislative Assembly.

oVERVIEW

Role of the Auditor-General 

The role of the Auditor-General is to provide parliament with independent assurance of public sector accountability and performance. This is achieved through reporting to parliament on the results of its financial and performance audits and other insights.

About the Auditor-General Report

The Auditor-General’s report to Parliament 11: 2021-22—Establishing the Queensland Future Fund looked at the establishment of the Queensland Future Fund, outlines the assets that were initially transferred into it, and explains what has happened to those assets since.

The report noted the Queensland Future Fund, established in August 2020 under the Queensland Future Fund Act 2020, is not an investment fund in itself, but instead provides the structure under which individual funds can be created to hold assets for managing the state’s debt or for other purposes. The first individual fund set up under this structure is the Debt Retirement Fund, the assets and returns from which can only be used to reduce the state’s debt. The underlying assets of the Debt Retirement Fund are held in several investment trusts.

The assets contributed by the government to the Debt Retirement Fund include the Queensland Titles Registry (75% ownership), defined benefit fund (government superannuation assets) and Aurizon shares. QIC Limited manages these assets on behalf of the state and was involved in the transfer process. 

While the Queensland Future Fund Act 2020 created the concept of ‘prescribed’ assets, which must always be held by the state and not sold or transferred into private ownership, the investments transferred into the Debt Retirement Fund during 2020–21 are not prescribed assets. The Auditor-General reports significant portions of them changed ownership after being placed in the fund, though all of the ownership of Queensland Titles Registry remained with government entities. After the fund was established, QIC Limited sold a portion of the Aurizon shares. On the same date as the Queensland Titles Registry business was transferred in, part of the ownership in it was transferred to government superannuation assets and a statutory body in exchange for other more liquid investments. A $2.1 billion loan was also taken out against the Queensland Titles Registry business.

The report noted it is too early to determine if the fund has met most of its objectives. However, the fund met the objective of having assets of $7.7 billion as at 30 June 2021 and improving the net debt to revenue ratio for the state. Other objectives will be measured in the medium to long term.

Referral to Committee 

Standing Order 194B provides that the Committee of the Legislative Assembly shall as soon as practicable after a report of the Auditor-General is tabled in the Assembly refer that report to the relevant portfolio committee(s) for consideration. 

The committee is responsible under section 94 of the Parliament of Queensland Act 2001 for assessing the integrity, economy, efficiency and effectiveness of government financial management by examining government financial documents and considering reports of the Auditor-General.

The Committee of the Legislative Assembly referred this Auditor-General’s report to the committee on 25 February 2022.

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