The purpose of this Act is to ensure the AFF continues as a long-term financial investment for the benefit of the current and future communities of the Auckland region.

4 Interpretation

(1)

In this Act, unless the context otherwise requires,—

Auckland Future Fund or AFF—

(a)

means the fund established by the Council as part of its Long-term Plan 2024–2034; and

(b)

includes—

(i)

any funds or assets (or both) that the Council adds to the AFF; and

(ii)

capital and income retained in the AFF

Auckland region means the region of the Council

Council means the territorial authority established by section 6(1) of the Local Government (Auckland Council) Act 2009 as the Auckland Council

structures for governing and managing the AFF means organisational structures for governing and managing the holding, direction, and operation of the AFF.

(2)

Unless the context requires another meaning, terms and expressions used and not defined in this Act, but defined in the Local Government Act 2002, have the same meaning as in that Act.

5 Decisions of Council

In this Act, decisions of the Council are made by the governing body (as defined in section 4(1) of the Local Government (Auckland Council) Act 2009).

6 Relationship between this Act and other legislation applicable to Council financial management

(1)

The following legislation applies to Council decisions in relation to the AFF:

(a)

the Local Government Act 2002:

(b)

any other legislation applicable to the Council’s financial management, accountability, and use of funds.

(2)

If there is any inconsistency between this Act and the legislation specified in subsection (1), this Act prevails over that other legislation.

Part 2 Auckland Future Fund

Governance and management

7 Governance and management of AFF

(1)

The Council must put in place structures for governing and managing the AFF.

(2)

The structures for governing and managing the AFF—

(a)

must comply with sections 8 to 12; and

(b)

may be implemented—

(i)

internally within the Council; or

(ii)

externally through 1 or more trusts or other entities.

8 Principles for governing and managing AFF

The AFF must be governed and managed—

(a)

as a long-term fund for the benefit of the current and future communities of the Auckland region; and

(b)

with the intent of maintaining or increasing the real value of its capital over time.

Investments

9 Investment decisions

(1)

An investment decision about the assets of the AFF may be made only by a person who is—

(a)

appropriately qualified; and

(b)

duly designated or appointed to make an investment decision about the assets of the AFF; and

(c)

acting independently of members of the Council and those members’ personal or political interests for the purposes of making the investment decision.

(2)

Subsection (1)(c) applies whether or not the person is an employee of the Council acting in the course of their employment.

(3)

An investment decision may result in the AFF being invested outside of the Auckland region.

(4)

Section 97 of the Local Government Act 2002 does not apply to an investment decision.

Distributions

10 Distributions of AFF

(1)

A decision about distributing the assets of the AFF may be made only by a person specified in section 9(1).

(2)

The Council may impose additional requirements in relation to distributions of the assets of the AFF.

11 Council may resolve to allow particular proposed distribution

(1)

This section applies to a distribution from the AFF that is proposed to be made other than in accordance with the principles set out in section 8 (a proposed distribution).

(2)

The Council may resolve, by a resolution approved by not less than 75% of its members who are entitled to vote and who vote on the resolution, to allow the proposed distribution on the grounds that—

(a)

the proposed distribution will achieve a benefit that is better for the current and future communities of the Auckland region than maintaining or increasing the real value of the capital of the AFF; and

(b)

reducing the real value of the capital of the AFF is the best available means of achieving that benefit.

(3)

The Council must not make a resolution under subsection (2) unless—

(a)

the proposed distribution is explicitly provided for in its long-term plan; and

(b)

the proposal to make the resolution was included in a consultation document prepared in accordance with section 93C or 93D (as applicable) of the Local Government Act 2002 and section 93E of that Act.

12 Who may receive distributions from AFF

The following entities may receive distributions from the AFF:

(a)

the Council:

(b)

an entity approved by the Council.

Legislative history

28 January 2025		Introduction (Bill 118–1)
19 February 2025		First reading and referral to Governance and Administration Committee
18 August 2025		Reported from Governance and Administration Committee
8 October 2025		Second reading
22 October 2025		Committee of the whole House
12 November 2025		Third reading
18 November 2025		Royal assent

Auckland Council (Auckland Future Fund) Act 2025