EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 238
Issued by the Authority of the Minister for Veterans' Affairs
Australian War Memorial Act 1980
Australian War Memorial Amendment Regulations 2007 (No. 1)
Section 42 of the Australian War Memorial Act 1980 (the Act) provides, in part, that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 35 of the Act sets out the circumstances under which the Australian War Memorial (the Memorial) may enter into contracts.
Paragraph 35(1)(a) of the Act covers contracts for the acquisition of historical material. It provides that where the Memorial wishes to enter into a contract under which it intends to purchase any historical material for a sum exceeding $250,000 (or if a higher amount is prescribed, then that amount) then the Memorial has to obtain the approval of the Minister for Veterans’ Affairs before entering that contract.
Paragraph 35(1)(b) of the Act provides that if the Memorial intends to enter into a contract under which the Memorial is to pay or receive in any other case an amount exceeding $150,000 (or if a higher amount is prescribed, then that amount) then the Memorial has to obtain the approval of the Minister for Veterans’ Affairs before entering into that contract.
The purpose of the Regulations is to provide that the Memorial be able to enter into all contracts under section 35 of the Act up to an amount of $1million without the need of the approval of the Minister for Veterans’ Affairs. At present the current thresholds result in a large number of contracts needing to be approved by the Minister which can be operationally disruptive and inefficient. The Regulations would reduce the number of contracts requiring the Minister’s approval.
Further, the amendment would be in line with the threshold for other similar agencies including the National Library, National Gallery and National Museum. The increase in the threshold would also bring the limits up to more intended levels as they have not been amended since 1989 and therefore do not reflect current day values.
This new prescribed amount would apply to a contract relating to acquisition of historical and non historical property, a contract relating to the disposal of non historical property or a contract relating to the disposal of historical property (after the Minister has approved the disposal if required under subsection 8(4) of the Act which states that in order for the Memorial to dispose of historical property valued at more than $5000, it must first obtain the approval of the Minister).
Further details of the Regulations are contained in the Attachment.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.
Consultation on this proposal has taken place. The Minister for Finance and Administration has been consulted and has no concerns with the proposed amendments.
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ATTACHMENT
Details of the Australian War Memorial Amendment Regulations 2007
Regulation 1 sets out the name of the Regulations – Australian War Memorial Amendment Regulations 2007 .
Regulation 2 specifies that the regulations are taken to have commenced on
The day after they are registered.
Regulation 3 provides that Schedule 1 amends the Principal Regulations – namely the Australian War Memorial Regulations 1983.
Schedule 1 - Amendment
Item [1] inserts a new regulation 6A into the Australian War Memorial Regulations 1983. Regulation 6A prescribes an amount of $1 million for the purposes of paragraphs 35(1)(a) and (b) of the Act.
Overview
The Australian War Memorial Amendment Regulations 2007 (No. 1) were enacted to amend the Australian War Memorial Regulations 1983 under the authority of the Australian War Memorial Act 1980. This legislative instrument was introduced by the Minister for Veterans' Affairs to address the operational inefficiencies caused by the current thresholds for contract approvals, which required the Minister's approval for contracts exceeding $250,000 for historical material and $150,000 for other cases. The primary objective of these amendments was to increase the threshold for contract approval to $1 million, thereby reducing the number of contracts requiring ministerial approval and aligning the thresholds with those of similar agencies like the National Library, National Gallery, and National Museum. This change aimed to reflect current economic values and streamline the approval process, ensuring that the Australian War Memorial can efficiently manage its contractual obligations without unnecessary bureaucratic delays. The Regulations were registered and commenced on the day following their registration on the Federal Register of Legislative Instruments.
Scope and Application
The Australian War Memorial Act 1980, as amended by the Australian War Memorial Amendment Regulations 2007, governs the operations and contractual engagements of the Australian War Memorial (Memorial) concerning historical and non-historical properties. Specifically, the Act delineates the conditions under which the Memorial can enter into contracts, notably in relation to the acquisition and disposal of historical material. Under the Act, contracts exceeding $250,000 for historical material acquisition and $150,000 for other contracts previously required ministerial approval from the Minister for Veterans’ Affairs. To streamline operations and align with thresholds of similar national institutions, the Regulations increase these thresholds to $1 million, reducing the number of contracts requiring ministerial approval. This adjustment applies to contracts for the acquisition and disposal of historical and non-historical property, with the stipulation that disposal of historical property valued over $5000 still requires prior ministerial approval. These Regulations apply nationally and are a legislative instrument under the Legislative Instruments Act 2003, commencing on registration with the Federal Register of Legislative Instruments.
Key Provisions
The Australian War Memorial Amendment Regulations 2007 (No. 1) primarily aim to adjust the financial thresholds for contract approvals under the Australian War Memorial Act 1980. Specifically, Regulation 6A of the Australian War Memorial Regulations 1983, as amended, sets a new threshold of $1 million for contracts that require the approval of the Minister for Veterans' Affairs (section 35(1)(a) and (b) of the Act). Previously, contracts exceeding $250,000 for historical material and $150,000 for other transactions required ministerial approval. The new threshold applies to contracts for the acquisition and disposal of historical and non-historical property.
The Act imposes several obligations on the Australian War Memorial (the Memorial) regarding contract approvals. Under the new regulations, the Memorial is required to obtain ministerial approval only for contracts exceeding the revised threshold of $1 million. For contracts below this amount, the Memorial is permitted to enter into them without seeking ministerial approval. This adjustment is designed to streamline operations and reduce the administrative burden associated with frequent ministerial approvals, while still ensuring that high-value transactions are appropriately scrutinised. The Memorial must still comply with any other requirements of the Act, including those related to the disposal of historical property, which may require ministerial approval regardless of the contract value.
Failure to comply with the provisions of the Act and the Regulations can result in legal consequences. For instance, entering into a contract that exceeds the specified threshold without obtaining the necessary approval from the Minister for Veterans' Affairs could lead to the contract being deemed void or unenforceable. Additionally, there may be administrative penalties for non-compliance, although the specific penalties are not detailed in the Regulations. The primary focus of the legislation is on ensuring that high-value transactions are appropriately authorised while facilitating smoother operational processes for the Memorial.