Audit Regulations (Amendment)

Overview

The Audit Regulations (Amendment) 1993 No. 58, issued under the authority of the Minister for Finance, amends the Audit Regulations made pursuant to the Audit Act 1901. The amendment follows the privatisation of Qantas, addressing the need to update regulatory frameworks to reflect the Commonwealth's no longer having an equity interest in Qantas. Consequently, Qantas and its subsidiaries will no longer be subject to audits by the Auditor-General or reports under the Act that pertain to Commonwealth-controlled companies. This legislative update aligns with the broader policy objective of adjusting the scope of the Audit Act to reflect changes in the Commonwealth's ownership structure, ensuring that regulations accurately reflect the current legal and financial landscape.

Scope and Application

The Audit Regulations (Amendment) 1993 No. 58, issued under the authority of the Minister for Finance, amends the Audit Regulations made pursuant to the Audit Act 1901. This legislative instrument specifically addresses the removal of Qantas and its subsidiaries from the scope of the Audit Regulations following the privatisation of Qantas. The amendment is necessary as the Commonwealth will no longer have a controlling interest in Qantas, thereby removing the airline from the entities subject to audits by the Auditor-General under the Act. This amendment aligns with the Qantas Sale Act 1992, which also removes Qantas and its subsidiaries from the definition of eligible incorporated company under the Audit Act. The amendment to the Regulations will take effect upon the sale of 100% of the Commonwealth's equity interest in Qantas, ensuring that Qantas and its subsidiaries are no longer subject to the provisions of the Audit Act that pertain to Commonwealth-controlled companies. The Regulations reflect the changes in ownership and the consequent shift in the regulatory oversight of Qantas.

Key Provisions

The Audit Regulations (Amendment) 1993 No. 58 amends the Audit Regulations made under the Audit Act 1901 (the Act) to remove Qantas and certain of its subsidiaries from the list of entities subject to section 70BA of the Act. Under the original regulations, these entities were subject to specific reporting requirements by the Auditor-General. However, following the privatisation of Qantas, the Commonwealth no longer has a controlling interest in these entities, and thus their accounts will no longer be subject to audits under the Act. Additionally, these entities will no longer be eligible for certain reports under the Act, such as efficiency audits. The obligations and requirements imposed by these Regulations focus on the removal of Qantas and its subsidiaries from the purview of the Audit Act. This change reflects the fact that the Commonwealth no longer holds an equity interest in these entities, thereby eliminating the need for the Auditor-General to submit reports on their behalf. The amendment to the Audit Regulations ensures that these entities are no longer subject to the specific reporting requirements outlined in section 70BA, streamlining the regulatory framework to reflect the current ownership structure. The statutory rules do not explicitly outline any offences, penalties, or civil/criminal consequences for breach related to these amendments. The primary purpose of the Regulations is to update the list of entities subject to the Audit Act in line with changes in ownership, thereby ensuring that the regulatory framework remains accurate and relevant. The changes are intended to be administrative and will come into effect in conjunction with the sale of the Commonwealth’s equity interest in Qantas as outlined in the Qantas Sale Act 1992. This ensures that the Audit Regulations are aligned with the current legal and financial status of the entities involved.