This bill did not become law and is no longer proceeding.
Budget, tax & economy
Australia's Future FundAustralia's sovereign wealth fund, which the bill would stop from holding investments linked to the listed settlement companies. would be barred from investing in companies listed by the United Nations as operating in illegal Israeli settlements on Palestinian land.
Rapid expansion of illegal Israeli settlements and sharply increased settler violence, capped by the International Court of JusticeThe UN's top court, whose July 2024 advisory opinion is used here to support the case that the settlements are unlawful.’s July 2024 ruling, exposed the need for stronger action. The bill bars the Future FundAustralia's sovereign wealth fund, which the bill would stop from holding investments linked to the listed settlement companies. and Australian charities from investing in or supporting UN-listed companies linked to those settlements and requires quick divestmentTo sell an investment and get out of it, which the bill would require for any Future Fund holding in a listed company..
Australia already publicly treated Israeli settlements in the occupied Palestinian territoriesThe West Bank, East Jerusalem and related areas that the page says are affected by the settlements and the proposed divestment rules. as illegal under international law, but record settler violence after October 2023, continued settlement expansion, and the International Court of JusticeThe UN's top court, whose July 2024 advisory opinion is used here to support the case that the settlements are unlawful.’s July 2024 advisory opinionA formal legal view from the International Court of Justice that is not a binding judgment, but is treated here as important legal authority. sharpened pressure to stop Australian money helping companies linked to those settlements. The bill responded by requiring the Future FundAustralia's sovereign wealth fund, which the bill would stop from holding investments linked to the listed settlement companies. and registered charities to avoid and quickly divestTo sell an investment and get out of it, which the bill would require for any Future Fund holding in a listed company. from UN-listed settlement-linked companies, but after being introduced in November 2024 it lapsed when the Parliament ended in July 2025.
No significant public case against the bill is recorded so far, and publicly available sources does not show a developed argument that it would cause clear harm beyond disagreement with its policy aim. The limited record here shows support from Senator Fatima Payman, with no party represented in the debate publicly available sources as opposing it.
Senator Fatima Payman introduced this bill. Speeches supporting it came from some crossbench members.
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
235 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
Australia's Future FundAustralia's sovereign wealth fund, which the bill would stop from holding investments linked to the listed settlement companies. would be barred from investing in companies listed by the United Nations as operating in illegal Israeli settlements on Palestinian land.
Australia's Future FundAustralia's sovereign wealth fund, which the bill would stop from holding investments linked to the listed settlement companies. would have to sell any investment in those United Nations-listed companies as soon as the boardThe body that manages the Future Fund and would have to sell any banned holdings once it becomes aware of them. becomes aware of it.
Registered Australian charitiesCharities registered with the Australian regulator that would be restricted from using charity money or assets to back the listed companies. would be banned from using gift fundA charity's reserved pool of donated money and related assets, which the bill says must not be used for the banned companies. money or assets to fund, support or contribute to companies on the United Nations listThe UN list the bill relies on to identify companies that are treated as connected to the settlements..
Registered Australian charitiesCharities registered with the Australian regulator that would be restricted from using charity money or assets to back the listed companies. would have to stop funding and quickly pull support from those United Nations-listed companies once they realise their money or assets are reaching them.
Registered Australian charitiesCharities registered with the Australian regulator that would be restricted from using charity money or assets to back the listed companies. working outside Australia would also be barred from funding, investing in or cooperating with illegal Israeli settlements or companies on the United Nations listThe UN list the bill relies on to identify companies that are treated as connected to the settlements..
Require the Australian Government Future Fund (Future Fund) Board of Guardians to ensure that the assets of the Future Fund are not involved in, or with, undertakings that appear on the UN Database of companies operating in illegal Israeli settlements on Palestinian land;Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) explanatory memorandum
Require the Future Fund Board of Guardians to divest the assets of the Future Fund from any and all investments in undertakings that appear on the UN Database of companies operating in illegal Israeli settlements on Palestinian land, as soon as they become aware that Future Fund assets are invested in such an undertaking;Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) explanatory memorandum
Subdivision 30-BA (Endorsement of deductible gift recipients) of the Income Tax Assessment Act 1997 sets out rules about endorsement of entities and government entities as deductible gift recipients. Section 30.130 stipulates the requirements surrounding a gift fund by Australian registered charities. Item 1 inserts an additional requirement into section 30.130, which requires Australian registered charities to not use any money or assets from their gift fund in funding, supporting or contributing to any company listed on the UN database of companies operating in illegal Israeli settlements on Palestinian land. The purpose of this amendment, and indeed most remaining amendments in Schedules 2, 2A and 2B, is to ensure that registered Australian charities are also not inadvertently or purposely breaching Australia’s broader obligations to the international community and the rules-based order.Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) explanatory memorandum
Require any Australian registered charities to immediately divest and/or stop funding or cease any support whatsoever for any undertaking that appear on the UN Database of companies operating in illegal Israeli settlements on Palestinian land, as soon as they become aware that their money, assets, or other support are reaching such an undertaking.Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) explanatory memorandum
This item inserts a proposed new external standard into the Australian Charities and Not‑for‑profits Commission Regulations 2022 Subdivision 50-C, , and sets standards for the conduct of registered Australian charities outside of Australia. Item 6 inserts a proposed new standard that directs registered Australian charities to not fund, support, invest in, or in any way cooperate with illegal Israeli settlements or companies that are listed on the UN Database of companies operating in illegal Israeli settlements on Palestinian land. This is a complementary change to the amendments made under Schedule 2A and is required to ensure that registered Australian charities are not inadvertently or purposefully breaching Australia’s broader obligations to the international community and the rules-based order, nor are they destabilising the possibilities for peace by contributing to the cycles of violence generated by illegal Israeli settlements.Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) explanatory memorandum
Context
Australia already publicly treated Israeli settlements in the occupied Palestinian territoriesThe West Bank, East Jerusalem and related areas that the page says are affected by the settlements and the proposed divestment rules. as illegal under international law, but record settler violence after October 2023, continued settlement expansion, and the International Court of JusticeThe UN's top court, whose July 2024 advisory opinion is used here to support the case that the settlements are unlawful.’s July 2024 advisory opinionA formal legal view from the International Court of Justice that is not a binding judgment, but is treated here as important legal authority. sharpened pressure to stop Australian money helping companies linked to those settlements. The bill responded by requiring the Future FundAustralia's sovereign wealth fund, which the bill would stop from holding investments linked to the listed settlement companies. and registered charities to avoid and quickly divestTo sell an investment and get out of it, which the bill would require for any Future Fund holding in a listed company. from UN-listed settlement-linked companies, but after being introduced in November 2024 it lapsed when the Parliament ended in July 2025.
Australia joins statement against record settler violence
Australia joined other countries in calling on Israel to take immediate steps over record high settler violence and restated that settlements in the occupied West Bank are illegal under international law.
Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) explanatory memorandum ↗UN reports mounting deaths in the West Bank since 7 October 2023
The bill’s supporting material says the United Nations reported that 505 Palestinians and 23 Israelis had been killed in the West Bank, underscoring how settlement-related violence had intensified.
Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) explanatory memorandum ↗International Court of JusticeThe UN's top court, whose July 2024 advisory opinion is used here to support the case that the settlements are unlawful. says the settlements violate international law
The explanatory memorandum says the court’s advisory opinionA formal legal view from the International Court of Justice that is not a binding judgment, but is treated here as important legal authority. confirmed the settlements and their associated regime were unlawful and clarified that states should avoid trade or investment dealings that entrench them.
Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) explanatory memorandum ↗Bill introduced to force divestmentTo sell an investment and get out of it, which the bill would require for any Future Fund holding in a listed company. from UN-listed settlement-linked companies
The bill was introduced to bar Future FundAustralia's sovereign wealth fund, which the bill would stop from holding investments linked to the listed settlement companies. investments and charity support for companies on the UN databaseThe UN list the bill relies on to identify companies that are treated as connected to the settlements. and to require swift divestmentTo sell an investment and get out of it, which the bill would require for any Future Fund holding in a listed company. once such links were identified.
Parliamentary timeline ↗Bill lapses at the end of Parliament
The proposal did not become law because it lapsed when the Parliament ended, leaving the proposed divestmentTo sell an investment and get out of it, which the bill would require for any Future Fund holding in a listed company. rules unmade.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
Key criticism
No significant public case against the bill is recorded so far, and publicly available sources does not show a developed argument that it would cause clear harm beyond disagreement with its policy aim. The limited record here shows support from Senator Fatima Payman, with no party represented in the debate publicly available sources as opposing it.
No significant public case against the bill is recorded so far.
Votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Start here — lead voices
Payman supports the bill and says it is needed to give practical effect to Australia’s existing policy and international legal obligations by preventing public and charitable funds from supporting illegal Israeli settlements.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“This Bill goes towards ensuring that Australia complies with its obligations to the international community, global peace, and the international rules-based order, while ensuring that its financial assets are not further perpetuating a cycle of violence in the Occupied Palestinian Territories.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Lapsed at end of Parliament
Lapsed at end of Parliament
The bill reached this recorded parliamentary step.
