EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Commonwealth Authorities and Companies Amendment Act 2008
Proclamation
The Commonwealth Authorities and Companies Act 1997 (CAC Act) contains reporting, accountability and other rules for Commonwealth authorities and Commonwealth companies.
The Commonwealth Authorities and Companies Amendment Act 2008 (CAC Amendment Act), which amends the CAC Act, received Royal Assent on 26 May 2008. Subsection 2(1) of the CAC Amendment Act provides that all provisions of the CAC Amendment Act, other than items 42, 51 and 52 of Schedule 1, commenced on 1 July 2008. Items 51 and 52 commenced upon the commencement of section 3 of the Legislative Instruments Act 2003 on 1 January 2005.
Item 42 of Schedule 1 to the CAC Amendment Act commences on a day to be fixed by Proclamation that is published in the Gazette. However, if the date of commencement of item 42 is not fixed within 12 months beginning on the date of Royal Assent, item 42 is repealed on the following day.
The purpose of the Proclamation is to fix 1 July 2009 as the day on which item 42 commences.
Item 42 inserts a provision into the CAC Act making it a criminal offence for a person to use a Commonwealth authority credit card or credit voucher to obtain cash, goods or services otherwise than for the authority. The punishment for contravening this provision is imprisonment for seven years, consistent with the equivalent provision in the Financial Management and Accountability Act 1997. This provision also allows a Commonwealth credit card or credit voucher to be used otherwise than for the authority in accordance with the Commonwealth Authorities and Companies Regulations 1997.
Commonwealth authorities were consulted on the amendments to the CAC Act and were aware that item 42 would commence subsequent to the remainder of the CAC Amendment Act.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Commonwealth Authorities and Companies Amendment Act 2008 was introduced to address issues of accountability and misuse of Commonwealth authority credit cards and vouchers within the Commonwealth Authorities and Companies Act 1997 (CAC Act). This Act, enacted by the Parliament of Australia, aims to enhance the reporting and accountability framework for Commonwealth authorities and companies. The primary objective of this amendment is to deter misuse of credit facilities by criminalising the unauthorised use of Commonwealth authority credit cards or vouchers for obtaining cash, goods, or services. This legislative measure imposes a penalty of up to seven years of imprisonment, aligning it with the sanctions outlined in the Financial Management and Accountability Act 1997. The changes are intended to ensure stricter adherence to financial regulations and accountability within Commonwealth authorities. The Proclamation issued by the Minister for Finance and Deregulation sets 1 July 2009 as the commencement date for the provision concerning the criminalisation of unauthorised use of credit cards and vouchers.
Scope and Application
The Commonwealth Authorities and Companies Amendment Act 2008 amends the Commonwealth Authorities and Companies Act 1997, which sets forth reporting, accountability, and other rules for Commonwealth authorities and Commonwealth companies. This amendment applies to all Commonwealth authorities and companies, enforcing stricter regulations on their conduct and operations. Notably, the Act introduces a criminal offence for the misuse of Commonwealth authority credit cards or credit vouchers, with a penalty of up to seven years imprisonment. This provision, which is intended to align with the Financial Management and Accountability Act 1997, was not brought into effect until 1 July 2009, as fixed by a Proclamation issued under the Legislative Instruments Act 2003. This delayed implementation was communicated to the relevant authorities, who were aware of the staggered commencement of the Act's provisions. The Act's jurisdiction spans the entire Commonwealth of Australia, ensuring a unified regulatory framework across all states and territories. The specific exclusions and thresholds are detailed within the Commonwealth Authorities and Companies Regulations 1997, which can further extend or restrict the application of the Act through subordinate instruments.
Key Provisions
The Commonwealth Authorities and Companies Amendment Act 2008 makes significant changes to the Commonwealth Authorities and Companies Act 1997 (CAC Act). Key provisions include amendments to the usage of Commonwealth authority credit cards and credit vouchers, which are detailed in section 2 of the CAC Amendment Act. Specifically, item 42 of Schedule 1 introduces a new criminal offence (section 124A) prohibiting the use of these cards or vouchers for purposes other than those authorised by the Commonwealth authority, effective from a date to be fixed by proclamation. This new offence is intended to align with the penalties outlined in the Financial Management and Accountability Act 1997, carrying a maximum penalty of seven years imprisonment.
Entities governed by the CAC Act, such as Commonwealth authorities and companies, are subject to stringent reporting, accountability, and regulatory requirements. These obligations are detailed throughout the Act and include adherence to financial management standards, transparency in operations, and compliance with regulatory directives. The amendments introduced by the CAC Amendment Act place additional responsibilities on these entities, particularly in ensuring the proper use of credit cards and vouchers to prevent unauthorised expenditures.
Breaches of the new criminal offence established by item 42 of Schedule 1 are taken very seriously. Those found guilty of using Commonwealth authority credit cards or credit vouchers for unauthorised purposes face significant legal consequences. The penalties include imprisonment for up to seven years, reflecting the seriousness with which such misuse is viewed. Additionally, any entity that fails to comply with the Act's provisions may face further civil or administrative penalties, reinforcing the importance of adherence to the prescribed standards.