Commonwealth Authorities and Companies Amendment Regulations 1999 (No. 1) 1999 No. 46
EXPLANATORY STATEMENT
STATUTORY RULES 1999 No. 46
Issued by the authority of the Minister for Finance and Administration
Commonwealth Authorities and Companies Act 1997
Commonwealth Authorities and Companies Amendment Regulations 1999 (No. 1)
The attached Statutory Rules make regulations under subsection 49(1) of the Commonwealth Authorities and Companies Act 1997 (the Act) to amend the Commonwealth Authorities and Companies Regulations 1997. Section 46 of the Act provides that the application of the Act to companies for the purposes of an intelligence or security agency is subject to any modifications that are prescribed by the regulations. (Intelligence or security agency has the meaning given by section 85ZL of the Crimes Act 1914) The amendments modify the application of the Act to companies conducted for the purposes of the intelligence or security agencies.
The amendment regulations set out modifications of the Act in relation to activities of companies conducted for the purposes of the agencies in the obtaining of intelligence, where disclosure, through the application of the Act, might prejudice those operations or the national interest.
The modifications essentially replicate arrangements which applied under section 70D of the Audit Act 1901 ('exempt accounts'). Those arrangements have been preserved until the making of these regulations under transitional arrangements following the repeal of the Audit Act 1901 on 1 January 1998.
Details of the amendments are as follows:
Regulation 1
This names the regulations as the Commonwealth Authorities and Companies Amendment Regulations 1998 in line with revised standards adopted by the Office of Legislative Drafting.
Regulation 2
Regulation 2 provides that the regulations are taken to have commenced from 1 January 1998, the date on which the Audit Act 1901 was repealed.
Regulation 3.
This provides that Schedule 1 to these regulations amends the Commonwealth
Authorities and Companies Regulations.
Schedule 1
[1]
This names the principal regulations as the Commonwealth Authorities and Companies Regulations 1997 in line with revised standards adopted by the Office of Legislative Drafting.
[2]
This inserts a new regulation 8 to modify the Act so that Part 4 (Reporting and other obligations of Commonwealth companies) and section 45 (Ministers must inform Parliament of share acquisitions etc) of the Act do not apply to companies conducted for the purposes of the intelligence or security agencies.
Overview
The Commonwealth Authorities and Companies Amendment Regulations 1999 (No. 1) were enacted to address the need for modifying the application of the Commonwealth Authorities and Companies Act 1997 to companies that operate for the purposes of intelligence or security agencies. These regulations, issued by the authority of the Minister for Finance and Administration, aim to ensure that certain activities of these companies remain confidential where disclosure might prejudice intelligence operations or the national interest. The regulations were introduced in response to the transitional arrangements following the repeal of the Audit Act 1901 on 1 January 1998, which previously provided similar exemptions for intelligence or security agencies. The policy objective is to maintain the confidentiality necessary for the effective functioning of intelligence or security agencies while aligning the regulatory framework with the new legislative standards.
Scope and Application
The Commonwealth Authorities and Companies Amendment Regulations 1999 (No. 1) are designed to modify the application of the Commonwealth Authorities and Companies Act 1997 (the Act) to companies that operate for the purposes of intelligence or security agencies. These regulations are issued under subsection 49(1) of the Act and aim to ensure that the disclosure of certain information through the application of the Act does not prejudice intelligence operations or the national interest. This is achieved by replicating the 'exempt accounts' arrangements that were previously applied under section 70D of the Audit Act 1901, which were preserved until the repeal of the Audit Act on 1 January 1998. The regulations, named the Commonwealth Authorities and Companies Amendment Regulations 1998, came into effect on the same date, 1 January 1998, ensuring a seamless transition following the repeal of the Audit Act. The modifications outlined in Schedule 1 to these regulations specifically exempt companies operating for intelligence or security agencies from certain reporting and other obligations under Part 4 of the Act, as well as from the requirement for Ministers to inform Parliament of share acquisitions as stipulated in section 45 of the Act.
Key Provisions
The Commonwealth Authorities and Companies Amendment Regulations 1999 (No. 1) primarily introduce modifications to the application of the Commonwealth Authorities and Companies Act 1997 (the Act) to companies operating for the purposes of intelligence or security agencies. Regulation 2 specifies that these regulations commence on 1 January 1998, aligning with the repeal of the Audit Act 1901. Regulation 3, through Schedule 1, amends the Commonwealth Authorities and Companies Regulations 1997 by adding a new regulation 8. This new regulation exempts companies conducted for the purposes of intelligence or security agencies from specific sections of the Act, namely Part 4 (Reporting and other obligations of Commonwealth companies) and section 45 (Ministers must inform Parliament of share acquisitions etc).
The regulations impose specific obligations and requirements on companies operating for intelligence or security agencies. These companies are exempt from the reporting and other obligations outlined in Part 4 of the Act and are not subject to the requirement for ministers to inform Parliament about share acquisitions. This exemption is designed to protect sensitive intelligence activities from unnecessary disclosure that could jeopardise national security interests. The modifications essentially mirror the 'exempt accounts' provisions that previously applied under section 70D of the Audit Act 1901, which were preserved until the creation of these regulations.
Any breach of these regulations, particularly in relation to unauthorised disclosure of exempt activities, could result in significant legal consequences. Although the specific penalties are not detailed within the provided text, it is reasonable to infer that violations may attract penalties consistent with those applicable under the Commonwealth Authorities and Companies Act 1997 or related legislation. Given the sensitive nature of intelligence and security operations, penalties could potentially include substantial fines, imprisonment, or both, depending on the severity of the breach and its impact on national security.