Aboriginal Land Rights (Northern Territory) Regulations (Amendment)

Administered by Department of Social Services

Legislation au F1997B01670 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Aboriginal Land Rights (Northern Territory) Regulations (Amendment)

Statutory Rules 1986 No. 181. Issued by the Authority of the Minister of State for Aboriginal Affairs.

Section 78 of the Aboriginal Land Rights (Northern Territory) Act 1976 (the Act) reads as follows:

The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters required or permitted by this Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this Act and, in particular, prescribing penalties, not exceeding a fine of $200, for offences against the regulations.

Sections 37A and 38 of the Act provide for the audit of accounts, records and financial statements of a Land Council (established pursuant to section 21 of the Act), by a person having the prescribed qualifications.

Section 37A of the Act relates to annual reports by Land Councils, and reads as follows:

(1) A Land Council shall, as soon as practicable after the end of each financial year, prepare and furnish to the Minister a report of the operations of the Council during that year, together with financial statements in respect of those statements prepared in accordance with sub-section (2).


(2) Financial statements referred to in sub-section (1) shall be audited by a person having the prescribed qualifications and appointed by the Council for the purpose, who shall report to the Council -

(a) whether the statements are based on proper accounts and records;

(b) whether the statements are in agreement with the accounts and records;

(c) whether the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the Council during the year have been in accordance with this Act; and

(d) as to such other matters arising out of the statements as the person so appointed considers should be reported to the Council.

Section 38 of the Act relates to the audit of financial records, and reads as follows:

(1) The Minister may, at any time, cause a person having the prescribed qualifications to inspect and audit the accounts and records caused to be kept by a Land Council pursuant to section 37 and to furnish to him a report of the results of that inspection and audit drawing attention to any irregularity in the financial affairs of the Council disclosed by that inspection and audit.


(2) The Minister shall, before an inspection and audit under sub-section (1) is commenced, by notice in writing served on the Chairman of the Land Council concerned, inform him that such an inspection and audit will be carried out and name the person whom he has engaged for the purpose.

(3) Where a notice is served on the Chairman of a Land Council under sub-section (2), the Chairman shall inform the Council of his receipt of the notice and, thereupon, the Land Council shall ensure that the person named in the notice or a person authorized by that person has, for the purposes of the inspection and audit referred to in the notice, full and free access to all accounts, records, documents and papers of the Council relevant directly or indirectly to the payment of money by the Council or to the acquisition, receipt, custody or disposal of assets by the Council.

(4) A person named in a notice served under sub-section (2) or a person authorized by him may, for the purpose only of use in the inspection and audit to which the notice related, take copies of, or extracts from, such accounts, records, documents and papers.

In regulations made under the Act, Statutory Rules 1979 No.299, a person having the prescribed qualifications for the purpose of the above sections was a person who is, or is entitled to be, a registered company auditor under the law of a State or Territory.


Statutory Rules 1979 No 299 read as follows:

ABORIGINAL LAND RIGHTS (NORTHERN TERRITORY) REGULATIONS

1. These Regulations may be cited as the Aboriginal Land Rights (Northern Territory) Regulations.

2. In these Regulations “the Act” means the Aboriginal Land Rights (Northern Territory) Act 1976.

3. For the purposes of sub-sections 37A(2) and 38(1) of the Act, a person having the prescribed qualifications is a person who is, or who is entitled to be, a registered company auditor under the law of a State or Territory.

The Regulations were made by the Governor-General, acting with the advice of the Federal Executive Council, on 20 December 1979, and were notified in the Commonwealth of Australia Gazette on 24 December 1979.

The new Regulations prescribe different qualifications for the purposes of section 38 than for section 37A. It is envisaged that an inspection and audit carried out under section 38 could on certain occasions be performed by a person having a different standard of qualifications than that now prescribed in the Regulations. Accordingly some flexibility is required in the Regulation relating to a person’s qualifications to carry out an inspection and audit under that section.

The new Regulations amend Statutory Rules 1979 No.299 and provide:


• That for the purposes of sub-section 37A(2) of the Act a person having the prescribed qualifications is a person who is, or who is entitled to be, registered as a company auditor under the law of a State or Territory; and

• That for the purposes of sub-section 38(1) of the Act a person having the prescribed qualifications is a person holding, or who is eligible to hold, provisional or associate membership of the Australian Society of Accountants or associateship or fellowship of the Institute of Chartered Accountants of Australia.

Overview

The Aboriginal Land Rights (Northern Territory) Regulations (Amendment) Statutory Rules 1986 No. 181 were enacted to amend the existing Aboriginal Land Rights (Northern Territory) Regulations 1979, specifically addressing the qualifications required for individuals to audit accounts and records of Land Councils established under the Aboriginal Land Rights (Northern Territory) Act 1976. This legislative amendment was issued by the Authority of the Minister of State for Aboriginal Affairs, aiming to provide greater flexibility in the qualifications of persons conducting audits under section 38 of the Act. Previously, the qualifications for auditing under both sections 37A and 38 were the same, but the new regulations differentiate between the qualifications required for audits under these two sections, thereby allowing for a more tailored approach to inspections and audits conducted under section 38.

Scope and Application

The Aboriginal Land Rights (Northern Territory) Regulations (Amendment) Statutory Rules 1986 No. 181 modify the qualifications required for individuals who are to audit accounts, records, and financial statements of Land Councils established under the Aboriginal Land Rights (Northern Territory) Act 1976. The Act applies specifically to Land Councils in the Northern Territory, which are entities established to manage land rights for Aboriginal people. The amendment introduces a distinction in the qualifications necessary for conducting audits under different sections of the Act. For annual reports under section 37A, the qualifications remain consistent with those previously defined, requiring auditors to be registered or eligible to be registered as company auditors under state or territory law. However, for inspections and audits under section 38, the amendment allows for greater flexibility by permitting individuals holding or eligible to hold provisional or associate membership of the Australian Society of Accountants, or associateship or fellowship of the Institute of Chartered Accountants of Australia, to perform the audits. This change aims to provide a broader range of qualified professionals who can inspect and audit the financial records of Land Councils, enhancing the ability to detect irregularities and ensuring compliance with the Act. The Regulations apply across the Northern Territory and are an extension of the Act's provisions, designed to refine the implementation and oversight of Land Council financial activities.

Key Provisions

The Aboriginal Land Rights (Northern Territory) Regulations (Amendment) Statutory Rules 1986 No. 181 establish new qualifications for persons who may audit the accounts, records and financial statements of Land Councils established under the Aboriginal Land Rights (Northern Territory) Act 1976 (the Act). For annual reports by Land Councils, section 37A(2) of the Act stipulates that the financial statements must be audited by a person who is, or is entitled to be, registered as a company auditor under the law of a State or Territory. This requirement remains unchanged. However, for the purposes of section 38 of the Act, which pertains to the audit of financial records by the Minister, the new regulations introduce flexibility by allowing the audit to be carried out by a person holding, or who is eligible to hold, provisional or associate membership of the Australian Society of Accountants or associateship or fellowship of the Institute of Chartered Accountants of Australia. This change aims to provide a broader range of qualifications for auditors performing inspections and audits under section 38. These new regulations impose clear obligations on Land Councils and the Minister regarding the qualifications of auditors. Land Councils are required to ensure that the person appointed to audit their financial statements holds the qualifications specified in section 37A(2), namely, being a registered company auditor. This consistency in qualifications ensures that the annual reports submitted to the Minister are audited by individuals with the requisite expertise. Conversely, for audits conducted by the Minister under section 38, the new regulations allow for a more flexible set of qualifications, namely, provisional or associate membership of the Australian Society of Accountants or associateship or fellowship of the Institute of Chartered Accountants of Australia. This flexibility aims to provide the Minister with the ability to engage auditors with varying levels of professional accounting qualifications to conduct inspections and audits of Land Councils' financial records. The Act does not explicitly detail offences, penalties, or civil/criminal consequences for breaches of the regulations. However, the regulations do provide for penalties for offences against them. Section 78 of the Act states that the Governor-General may make regulations prescribing penalties, not exceeding a fine of $200, for offences against the regulations. This implies that any breach of the new regulations, such as appointing an unqualified auditor or failing to allow the auditor access to necessary records, could result in a penalty of up to $200. Although the specific enforcement mechanisms and the entities responsible for imposing these penalties are not detailed in the Act or the regulations, it is understood that such breaches would typically be addressed through administrative or legal processes, potentially involving courts or tribunals.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.