Australia Council Rule 2013

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2013L01513 Rules Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for the Arts

 

Subject -   Australia Council Act 2013

 

  Australia Council Rule 2013

 

The Australia Council Act 2013 (the Act) replaces the Australia Council Act 1975, as recommended in the report of the Review of the Australia Council (the Review), which was publicly released on 15 May 2012 by the former Minister for the Arts, the Honourable Simon Crean MP.

 

The Act received the Royal Assent on 27 June 2013 and commenced by proclamation on
1 July 2013. The Act continues the Australia Council (the Council) as the Australian Government’s principal arts funding body and as a body corporate (as established under the Australia Council Act 1975). The Act modernises the enabling legislation of the Council by updating the functions, powers and governance structure of the Council in a manner consistent with the Australian Government’s response to the Review and the governance arrangements, where appropriate, of other Commonwealth statutory authorities.

 

Section 52 of the Act provides that the Minister for the Arts may make rules prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

Subsection 48(1) of the Act provides that rules may prescribe restrictions on certain financial transactions. Such a prescription allows for appropriate controls to be set on overall commitments to particular broad categories of funding.

 

The purpose of the Rule is to set $1 million as the prescribed limit above which the Council will require the approval of the Minister to:

  • acquire any property, right or privilege exceeding in amount or value the prescribed amount;
  • dispose of any property, right or privilege exceeding in amount or value the prescribed amount; and
  • enter into a contract for the construction of a building or to pay an amount exceeding the prescribed limit.

 

Details of the Rule are at Attachment A.

 

The Statement of Compatibility with Human Rights with respect to this Rule is at Attachment B.

 

The management of the Australia Council was consulted in the development of this Rule, and agreed that the prescribed threshold is appropriate in the context of the Council’s business operations. Broader consultation was unnecessary for this instrument as it is of a minor nature and is in relation to the internal processes of the Council only. The limit prescribed by the Rule is consistent with the limits set by legislative instruments relating to other statutory authorities in the Commonwealth arts portfolio.

 

 

 

The Rule is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The Rule commences the day after it is registered.


In the Explanatory Statement the following abbreviations are used:

 

Act  Australia Council Act 2013

 

Council The Australia Council

 

Review  The 2012 Review of the Australia Council

 


ATTACHMENT A

 

DETAILS OF THE AUSTRALIA COUNCIL RULE 2013

 

Part 1 – Preliminary

 

Section 1 – Name of Rule

 

This provides that the name of the Rule is the Australia Council Rule 2013.

 

Section 2 – Commencement

 

This provides that the Sections 1 to 3 of the Rule commence on the day after the Rule is registered. Section 4 and Part 2 commence on the later of the day after the rule is registered and the day on which Section 48 of the Australia Council Act 2013 commences.

 

However, the provisions do not commence at all if the Australia Council Act 2013 does not commence.

 

Section 3 – Authority

 

Section 3 provides that the Rule is made under the Australia Council Act 2013.

 

Section 4 – Definitions

 

Section 4 provides that in this Rule, ‘Act’ means the Australia Council Act 2013.

 

Part 2 – Finance

 

Section 5 – Restrictions on financial transactions

 

Section 5 sets the prescribed amount for paragraphs 48(1)(a) to (c) of the Act as $1 million.

 

The prescribed limit will not apply to the Council’s ability to make individual funding decisions on an arm’s length basis in relation to the support and promotion of the arts, including the provision of financial assistance and guarantees, as well for the purposes of investment (as per subsection 48(2) of the Act).

 

The proposed amount of $1 million reflects the current prescribed amount set for similar statutory authorities in the Commonwealth arts portfolio, such as Screen Australia and the National Portrait Gallery of Australia.

 


ATTACHMENT B

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Australia Council Rule 2013

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

 

Section 52 of the Australia Council Act 2013 (the Act) provides that the Minister for the Arts may make rules prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

Subsection 48(1) of the Act provides that rules may prescribe restrictions on certain financial transactions. Such a prescription allows for appropriate controls to be set on overall commitments to particular broad categories of funding.

 

The purpose of the proposed Rule is to set $1 million as the prescribed limit above which the Council will require the approval of the Minister to:

  • acquire any property, right or privilege exceeding in amount or value the prescribed amount;
  • dispose of any property, right or privilege exceeding in amount or value the prescribed amount; and
  • enter into a contract for the construction of a building or to pay an amount exceeding the prescribed limit.

 

Human rights implications

 

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

 

Overview

The Australia Council Act 2013 was enacted to modernise the legislative framework governing the Australia Council, the principal arts funding body of the Australian Government. This Act, which received the Royal Assent on 27 June 2013 and commenced on 1 July 2013, replaced the outdated Australia Council Act 1975 and was designed to enhance the Council's functions, powers, and governance structure in line with the recommendations of the Review of the Australia Council. The purpose of the Act is to ensure that the Council remains an effective and responsive body in supporting the arts in Australia. The Australia Council Rule 2013, made under the authority of the Minister for the Arts, further specifies the financial transaction limits that necessitate ministerial approval, establishing a $1 million threshold for certain significant financial decisions. This legislative instrument is intended to maintain appropriate fiscal controls while allowing the Council to operate efficiently in its role of funding and promoting the arts.

Scope and Application

The Australia Council Act 2013, which came into effect on 1 July 2013, establishes the Australia Council as the Australian Government's primary funding body for the arts, replacing the previous Australia Council Act 1975. This Act modernises the Council’s functions, powers, and governance structure, ensuring it aligns with contemporary governance practices and the Australian Government’s response to the 2012 Review of the Australia Council. The Act applies to the Australia Council as a body corporate, enabling it to carry out its role as the principal arts funding body within Australia. The Australia Council Rule 2013, made under the authority of the Act, specifies financial transaction restrictions, particularly setting a $1 million threshold above which the Council must obtain the Minister for the Arts' approval for acquisitions, disposals, and construction contracts. This threshold is consistent with similar limits for other statutory authorities in the Commonwealth arts portfolio. The Rule is designed to provide appropriate controls on significant financial commitments while maintaining the flexibility necessary for the Council's operations. The prescribed limit does not affect the Council's ability to make individual funding decisions on an arm’s length basis for arts support and promotion.

Key Provisions

The Australia Council Rule 2013, which supplements the Australia Council Act 2013, sets out key financial transaction limits and procedures for the Australia Council, the principal arts funding body of the Australian Government. Specifically, Section 5 of the Rule (Section 48(1) of the Act) stipulates that any acquisition, disposal of property, rights, or privileges, as well as contracts for construction or payments exceeding $1 million, must receive approval from the Minister for the Arts (Section 5(1) to (3) of the Rule). These provisions ensure that significant financial decisions are reviewed at the ministerial level, maintaining oversight and accountability within the Council's operations. The obligations imposed by the Act and the Rule on the Australia Council are primarily centred around financial governance and transparency. The Council must ensure that all transactions exceeding the prescribed limit of $1 million are subject to ministerial approval, as outlined in Section 5 of the Rule. This requirement is intended to prevent unauthorised or excessive financial commitments that could potentially undermine the Council's financial stability and compliance with its statutory objectives (Section 48(1) of the Act). By doing so, the Council is expected to maintain prudent financial management practices and uphold the integrity of its funding activities. Failure to comply with the financial transaction restrictions set out in the Act and Rule can result in significant legal consequences. While specific offences and penalties are not explicitly detailed in the Rule, the Act provides a framework under which breaches of prescribed financial limits could lead to various civil or criminal liabilities. For instance, unauthorised transactions exceeding the $1 million limit might be considered breaches of the Council’s fiduciary duties or mismanagement of public funds, potentially leading to disciplinary actions against responsible officers or directors. Additionally, the Council may face financial penalties or be required to rectify any improper transactions, as per the governance and compliance standards set by the Act.

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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.