Audit Act 1959

Overview

The Audit Act 1959 was enacted to amend the existing Audit Act 1901-1957, reflecting changes in the financial landscape of Australia and updating references to relevant institutions. This Act was introduced to address the need for updating references within the original Act to accommodate the establishment and naming of new financial institutions such as the Reserve Bank of Australia. Enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, the policy objective of this Act was to ensure that the legal framework governing financial audits in Australia remains current and applicable to the evolving structure of financial institutions within the Commonwealth. This legislative amendment signifies the adaptability of Australia’s financial oversight mechanisms to better align with the nation's economic developments and institutional changes.

Scope and Application

The Audit Act 1959 applies to the operations and financial activities of specific Australian financial institutions, namely the Reserve Bank of Australia, the Commonwealth Trading Bank of Australia, and the Commonwealth Development Bank of Australia. The Act amends the existing Audit Act 1901-1957, specifically altering the guarantees provided by the Treasurer concerning these financial entities. Its jurisdiction is Commonwealth-wide, as it pertains to institutions governed by federal law. The Act does not explicitly state exclusions, exemptions, or thresholds, but its application is likely limited to the financial practices and audits of the named banks. The Act may be further extended or restricted through subordinate instruments, although this is not detailed within the provided text. The commencement of the Act is tied to the operation of the Reserve Bank Act 1959, ensuring that both pieces of legislation are aligned in their implementation and enforcement.

Key Provisions

The Audit Act 1959 introduces amendments to the existing Audit Act 1901-1957. Section 1 of the Act establishes that it may be cited as the Audit Act 1959, while the amended Audit Act 1901-1957 may be referred to as the Audit Act 1901-1959. Section 2 of the Act specifies that it will come into operation on the same day as the Reserve Bank Act 1959. The key amendment made by Section 3 is the modification of Section seventy b of the Audit Act 1901-1957, which alters the entities to which guarantees are provided from the Commonwealth Bank of Australia and the Commonwealth Trading Bank of Australia, to now include the Reserve Bank of Australia, the Commonwealth Trading Bank of Australia, and the Commonwealth Development Bank of Australia. Under the Audit Act 1959, the obligations of the Treasurer are expanded as per the amendment in Section 3. The Treasurer is now required to provide guarantees to the Reserve Bank of Australia, the Commonwealth Trading Bank of Australia, and the Commonwealth Development Bank of Australia. This amendment reflects a broadening of the scope of financial institutions that are eligible for such guarantees, aligning with the evolving financial landscape and institutional changes within Australia. The Act does not explicitly state any new offences or penalties for breach of its provisions. However, it is implied that any failure to adhere to the amended guarantees requirements could lead to legal consequences under the existing provisions of the Audit Act 1901-1959. Any breaches might be subject to the penalties and enforcement mechanisms already in place under the original Act, although specific maximum penalties are not outlined in the Audit Act 1959 itself. Parties who fail to comply with the Act's requirements could potentially face civil or criminal liabilities as stipulated under the broader legal framework of the Audit Act 1901-1959.