NHFIC is committed to maintaining high standards of corporate governance which is essential to being a long-term sustainable organisation and to continually act in the best interests of the Australian public.
NHFIC is part of the Treasury portfolio of agencies. The responsible Minister is the Minister for Housing, Minister for Homelessness and Minister for Small Business, the Hon Julie Collins MP (Minister).
NHFIC is governed by an independent Board responsible for determining strategy, defining risk appetite, making financing decisions and monitoring performance. The Chief Executive Officer (CEO) reports to the Board and is responsible for the day-to-day administration of the organisation.
The duties of the responsible Minister in relation to NHFIC are set out in the NHFIC Act. These include that the Minister appoints the Board and may provide directions about the performance of NHFIC’s functions in the form of an Investment Mandate, including in relation to such matters as strategies and policies the Board must observe, decision-making criteria, limits on financial assistance, and risk and return on investments. The Investment Mandate may not, however, direct the Board in relation to particular financing decisions.
In addition to the NHFIC Act and Investment Mandate, following the Government’s response to the Statutory Review of the operations of NHFIC, the Minister issued the NHFIC Board with a Statement of Expectations (SOE). The Board has responded with a Statement of Intent (SOI) that outlines how NHFIC intends to take into account the Government’s policy priorities in the performance of its statutory role.
The current Investment Mandate took effect on 1 October 2022.
NHFIC was established by the Australian Government under the National Housing Finance and Investment Corporation Act 2018 (NHFIC Act).
The NHFIC Act:
- Provides the Board with statutory responsibility for deciding NHFIC's strategies and policies, and ensuring the proper, efficient and effective performance of NHFIC’s functions. The Board makes its investment decisions independently of Government.
Provides for the appointment of the NHFIC CEO, who is responsible for the day-to-day administration of NHFIC, subject to and in accordance with the policies determined by the Board.
Requires the Board to ensure that NHFIC maintains commercially sound and sufficient levels of capital and reserves.
Allows NHFIC to borrow money (supported by a Commonwealth guarantee).
Under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), NHFIC is classified as a corporate Commonwealth entity being a body corporate that is legally separate from the Commonwealth.
NHFIC Investment Mandate
NHFIC operates under an Investment Mandate set out by the Australian Government.
The Investment Mandate provides guidance to NHFIC's Board on:
- NHFIC’s investment functions, including applicant eligibility criteria
- The strategies and policies to be followed for the effective performance of NHFIC’s functions
- General governance matters
Read the current Investment Mandate.