Army and Air Force Canteen Service Regulations (Amendment)

Administered by Department of Defence

Legislation au F1997B02878 Regulations Not in force Legislative Instrument

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Army and Air Force Canteen Service Regulations 1997 No. 389

EXPLANATORY STATEMENT

STATUTORY RULES 1997 No. 389

Issued by the authority of the Minister for Defence

Defence Act 1903

Army and Air Force Canteen Service Regulations

The attached Statutory Rules make regulations under section 124 of the Defence Act 1903.

The regulations make amendments to the Army and Air Force Canteen Service Regulations that are consequential on the Commonwealth Authorities and Companies Act 1997. They will come into operation on 1 January 1998.

The Commonwealth Authorities and Companies Act 1997 is one of a package of four Acts which will replace the Audit Act 1901. It will commence on 1 January 1998, the day fixed by Proclamation.

Details of the regulations are shown in the Attachment.

ATTACHMENT

DETAILS OF PROPOSED AMENDMENTS TO THE ARMY AND AIR FORCE CANTEEN SERVICE (AAFCANS) REGULATIONS

Regulation 6 of the Commonwealth Authorities and Companies Regulations prescribes the Army and Air Force Canteen Service (AAFCANS) Board of Management as a Commonwealth authority for the purposes of the Commonwealth Authorities and Companies Act 1997 (the CAC Act). The following amending regulations make consequential amendments to the AAFCANS Regulations.

Amending regulation 1

This provision states that the amending regulations commence on 1 January 1998.

Amending regulation 2

This provision states that the AAFCANS Regulations are amended as set out in the amending regulations.

Amending regulation 3

Regulation 3 of the AAFCANS Regulations includes a definition of "auditor" which presupposes that someone other than the Auditor-General may be appointed auditor of the AAFCANS Board of Management. Section 8 of the CAC Act, on the other hand, provides that the Auditor-General is to be the auditor of each Commonwealth authority. Accordingly, amending subregulation 3.1 omits the definition of "auditor" from regulation 3 of the AAFCANS Regulations.

Subregulation 3(2) of the AAFCANS Regulations defines the AAFCANS Board of Management's financial year. Amending regulation 3.2 omits subregulation 3(2). This will mean that the AAFCANS Board of Management's financial year will be governed by section 5 of the CAC Act which provides that the financial year will be a period of 12 months commencing on 1 July.

The Note to amending subregulation 3.2 indicates that the financial year of the Board that commenced on 31 January 1997 is dealt with in the Audit (Transitional and Miscellaneous) Regulations (the AT and M Regulations). Regulation 30 of the AT and M Regulations provides that the financial year referred to shall end on 30 June 1998.

Amending regulation 4

Amending regulation 4 provides for the inclusion of a note to regulation 9 of the AAFCANS Regulations indicating that the CAC Act applies to the Board.

Amending regulation 5

Section 21 of the CAC Act and regulation 11 of the AAFCANS Regulations both deal with disclosure of interests by board members. Accordingly, amending regulation 5 omits the reference to regulation 11 in paragraph 10(6)(c) of the AAFCANS Regulations and substitutes a reference to section 21 of the CAC Act.

Amending regulation 6

Section 21 of the CAC Act and regulation 11 of the AAFCANS Regulations both deal with disclosure of interests by board members. Accordingly, amending regulation 6 omits regulation 11 from the AAFCANS Regulations.

Amending regulation 7

Paragraph 13(1)(i) of the AAFCANS Regulations provides that the Board may invest moneys in pursuance of regulation 23A. However, because investment powers are dealt with by section 18 of the CAC Act, the reference to the investment of moneys in regulation 23A has been omitted by amending regulation 9 (see below). Accordingly, amending regulation 7 omits paragraph 13(1)(i) from the AAFCANS Regulations.

Amending regulation 8

Sections 5 and 18 of the CAC Act, on the one hand, and regulation 23 of the AAFCANS Regulations on the other, both deal with banking. Accordingly, amending regulation 8 omits regulation 23 from the AAFCANS Regulations.

Amending regulation 9

Section 18 of the CAC Act and subregulations 23A(2) and (3) of the AAFCANS Regulations both deal with investment powers. Accordingly, amending regulation 9 omits subregulations 23A(2) and (3) from the AAFCANS Regulations.

Amending regulation 10

Section 20 of the CAC Act and regulation 2X of the AAFCANS Regulations both deal with the keeping of proper accounting records. Accordingly, amending regulation 10 omits regulation 23 C from the AAFCANS Regulations.

Amending regulation 11

Subsection 8(1) of the CAC Act provides that the Auditor-General is to be the auditor of each Commonwealth authority and the form of the audit report is dealt with in Part 2 of Schedule 1 to the CAC Act. The functions of the Auditor-General are dealt within the Auditor-General Act 1997. These provisions overlap regulation 23D of the AAFCANS Regulations which provides for the appointment and functions of an auditor. Accordingly, amending regulation 11 omits regulation 23D from the AAFCANS Regulations.

Amending regulation 12

Section 9 of the CAC Act and regulation 23E of the AAFCANS Regulations both deal with annual reports. Accordingly, amending regulation 12 omits regulation 23E from the AAFCANS Regulations and substitutes a new regulation 23E which requires the Board to prepare an annual report in accordance with section 9 of the CAC Act while at the same time preserving the current requirements of subregulation 23E(4).

 

Overview

The Army and Air Force Canteen Service Regulations 1997 were enacted to align the Army and Air Force Canteen Service (AAFCANS) with the provisions of the Commonwealth Authorities and Companies Act 1997, ensuring that the AAFCANS is managed in accordance with the updated legislative framework. This Act was introduced to address the gap created by the transition from the Audit Act 1901 to the new legislative regime, which aimed to provide a more comprehensive and up-to-date framework for the management of Commonwealth authorities and companies. The regulations were issued under the authority of the Minister for Defence, reflecting the need for a seamless integration of the AAFCANS within the new statutory environment. The policy objective was to ensure that the AAFCANS operates within the updated governance and financial management standards set by the Commonwealth Authorities and Companies Act 1997, thereby enhancing accountability and efficiency. These regulations came into effect on 1 January 1998, the same day as the new Act, to facilitate a smooth transition and to avoid any operational disruptions.

Scope and Application

The Army and Air Force Canteen Service Regulations 1997 are made under section 124 of the Defence Act 1903 and apply to the Army and Air Force Canteen Service (AAFCANS) Board of Management, which is designated as a Commonwealth authority under the Commonwealth Authorities and Companies Act 1997. These regulations serve to align the existing Army and Air Force Canteen Service Regulations with the new Commonwealth Authorities and Companies Act 1997, and they will come into operation on 1 January 1998. The scope of the Act extends to ensuring that the financial management, auditing, and reporting practices of the AAFCANS Board of Management are consistent with the requirements set out in the Commonwealth Authorities and Companies Act 1997. This includes the removal of certain provisions that conflict with or are superseded by the new Act, such as definitions and procedures relating to financial years, investments, banking, accounting records, audits, and the preparation of annual reports.

Key Provisions

The Army and Air Force Canteen Service Regulations 1997, as amended, establish the legal framework governing the operations of the Army and Air Force Canteen Service (AAFCANS). These regulations are designed to align with the Commonwealth Authorities and Companies Act 1997, ensuring that the AAFCANS operates within the broader legislative context provided by this Act. Key sections of the regulations include the definition of the AAFCANS Board of Management as a Commonwealth authority (Regulation 6), the amendment of financial year definitions (Amending regulation 3), and the application of the CAC Act to the Board's operations (Amending regulation 4). These provisions ensure that the AAFCANS Board adheres to the financial and administrative standards set by the Commonwealth Authorities and Companies Act. The regulations impose several obligations on the AAFCANS Board of Management, including the requirement to align its financial year with the Commonwealth Authorities and Companies Act (Section 5). Additionally, the Board must ensure that the Auditor-General is appointed as its auditor, as stipulated by Section 8 of the CAC Act. The Board is also required to comply with the disclosure of interests by board members, as outlined in Section 21 of the CAC Act. Furthermore, the regulations mandate the preparation of annual reports in accordance with Section 9 of the CAC Act. These obligations ensure transparency, accountability, and adherence to national auditing standards. Breaches of the Army and Air Force Canteen Service Regulations may result in various civil and criminal consequences. While the specific penalties are not detailed within the regulations themselves, they are typically outlined in the overarching Defence Act 1903 and the Commonwealth Authorities and Companies Act 1997. Violations could potentially lead to legal action, fines, or other administrative penalties. The precise penalties would depend on the nature and severity of the breach, as well as the relevant provisions of the Acts under which the regulations operate. The regulations aim to ensure compliance through these potential consequences, thereby maintaining the integrity and effectiveness of the AAFCANS.

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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.