Australian Capital Territory (Self-Government) Regulations (Amendment)

Overview

The Australian Capital Territory (Self-Government) Regulations (Amendment) Statutory Rules 1990 No. 401 amends the Australian Capital Territory (Self-Government) Act 1988 to clarify and expand the legislative powers of the ACT Legislative Assembly regarding Territory-owned corporations. Enacted by the Commonwealth Parliament, the Act was designed to address the limitations on the Assembly's ability to legislate on certain matters, particularly those related to companies and corporations. The amendment specifically targets paragraph 23(1)(h) of the Act, ensuring that the Assembly can make laws concerning companies wholly owned by the Territory or its nominees, subject to compliance with Commonwealth corporations law and additional requirements for control and accountability to the ACT legislature and executive government. This legislative change was introduced to facilitate the establishment and regulation of Territory-owned corporations, with the Commonwealth Government expressing no objection to the proposal.

Scope and Application

The Australian Capital Territory (Self-Government) Regulations (Amendment) Statutory Rules 1990 No. 401 serves to amend the existing regulations under the Australian Capital Territory (Self-Government) Act 1988. This amendment specifically addresses the scope of legislation that the ACT Legislative Assembly can enact regarding certain business entities and their regulation. The amendment clarifies that the Assembly retains the authority to legislate on companies whose share capital is entirely owned by the Territory or its nominees, as well as their subsidiaries, despite the restrictions outlined in paragraph 23(1)(h) of the Act. These companies will be registered under the Commonwealth Corporations Act 1989 and adhere to Commonwealth companies law, but will also comply with additional requirements related to control and accountability to the ACT legislature and executive government. Furthermore, the amendment removes an existing subregulation that has become obsolete. This legislative change ensures that the Assembly can implement the proposed Territory Owned Corporations legislation without ambiguity, while maintaining the overall framework of self-governance within the Australian Capital Territory.

Key Provisions

The main operative sections of the Australian Capital Territory (Self-Government) Regulations (Amendment) Statutory Rules 1990 No. 401 clarify the powers of the ACT Legislative Assembly in relation to companies. Specifically, section 23(1)(h) of the Australian Capital Territory (Self-Government) Act 1988 (the Act) initially prevents the Legislative Assembly from making laws on various corporate matters, including companies and the regulation of securities and futures industries. However, this regulation amends that provision to allow the Assembly to legislate on companies whose share capital is wholly owned by the Territory or its nominees, and their subsidiaries. This amendment is critical as it ensures that the Legislative Assembly can enact laws regarding Territory Owned Corporations, which are companies registered under the Commonwealth Corporations Act 1989 but subject to additional local requirements. The obligations imposed by these regulations on the ACT Legislative Assembly and the ACT Government include ensuring that any legislation regarding Territory Owned Corporations complies with both Commonwealth and Territory laws. The Assembly must ensure that these companies adhere to the requirements of the Commonwealth Corporations Act 1989 and also meet any additional local requirements relating to control and accountability. The ACT Government, in turn, must ensure that any legislation it proposes aligns with these regulatory frameworks and does not conflict with the overarching governance structures established by the Act. In terms of penalties and consequences for breach, the regulations themselves do not specify penalties for non-compliance. However, under the Act, any legislation passed by the Assembly that contravenes the Act or the regulations may be subject to judicial review, and potentially invalidated by the courts. Furthermore, if the Assembly were to pass legislation that improperly extends its powers beyond those allowed by the Act, it could face constitutional challenges, which may result in the legislation being struck down by the courts. Additionally, if the Territory Owned Corporations do not comply with the necessary legislative and regulatory requirements, they could face enforcement actions under the Commonwealth Corporations Act 1989 or other relevant legislation, which could include fines or other sanctions.