Indigenous Land Corporation gpo box 652 Adelaide sa 5001

Part 6: Financial administration

The Aboriginal and Torres Strait Islander Land Account

The Aboriginal and Torres Strait Islander Land Account (Land Account) is the primary source of funding for the ILC.

The Land Account was established in 1995 with the intention of providing a secure stream of income to the ILC in perpetuity. The Land Account is a Special Account as provided for by section 20(1) of the Financial Management and Accountability Act 1997 (FMA Act).

Land Account Financial Overview

The Land Account and its investments are administered by the Department of Prime Minister and Cabinet under delegation from the Minister for Finance and Deregulation.

The Financial Management and Accountability Act restricts the Land Account to investing in authorised investments, which are:

• Securities of the Commonwealth or of a state 
or territory;

• Securities guaranteed by the Commonwealth, 
a state or territory;

• A deposit with a bank, including a deposit evidenced by a certificate of deposit; and

• Any other form of investment prescribed 
by the regulation.

The Land Account was built up to become a self-sustaining capital fund by 30 June 2004. Funding received from the Land Account since 1 July 2004 is set out in Table 32.

Amendments to the Act in June 2010 provided for a minimum guaranteed annual payment of $45m from 1 July 2010, which is indexed annually by the Consumer Price Index. The amendment also provided for additional payments to the ILC where the actual capital value of the Land Account exceeds the real capital value of the account. The additional amount is the excess above the real capital value.