Overview

The Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 1) were introduced by the Minister for Finance and Administration as a legislative instrument under the authority granted by the Commonwealth Authorities and Companies Act 1997. This Act provides reporting, accountability, and other rules for Commonwealth authorities and companies. The Regulations were designed to amend the Commonwealth Authorities and Companies Regulations 1997, specifically updating the list of Commonwealth authorities that must comply with government procurement requirements. The changes were necessitated by the cessation of the Australian Trade Commission (Austrade) as a Commonwealth authority and the abolition of the National Occupational Health and Safety Commission (NOHSC), thereby removing references to these entities from the regulations. The Regulations were not subject to consultation or a Regulation Impact Statement as they were deemed minor and not substantially altering existing arrangements. They came into effect concurrently with the commencement of Part 1 of Schedule 1 to the Australian Trade Commission Legislation Amendment Act 2006.

Scope and Application

The Commonwealth Authorities and Companies Act 1997 applies to Commonwealth authorities and wholly-owned Commonwealth companies specified in the Commonwealth Authorities and Companies Regulations 1997. The Act is designed to provide rules that ensure reporting, accountability and proper conduct within these entities. Under the authority granted by the Act, the Governor-General can make regulations that prescribe matters necessary for carrying out or giving effect to the Act, as outlined in subsection 49(1). Specifically, section 47A of the Act applies to the authorities and companies listed in the Principal Regulations, enabling the Finance Minister to issue directions to the directors concerning procurement of property or services. The Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 1) update the list of Commonwealth authorities subject to these procurement requirements by removing references to the Australian Trade Commission and the National Occupational Health and Safety Commission, entities that have either ceased to be Commonwealth authorities or have been abolished. These Regulations are minor in nature and do not necessitate extensive consultation or the preparation of a Regulation Impact Statement, as advised by the Office of Regulation Review.

Key Provisions

The Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 1) (the Regulations) update the list of Commonwealth authorities subject to procurement requirements under the Commonwealth Authorities and Companies Act 1997 (the Act). Regulation 3 amends the Commonwealth Authorities and Companies Regulations 1997 (the Principal Regulations) by removing references to the Australian Trade Commission (Austrade) and the National Occupational Health and Safety Commission (NOHSC) from Part 1 of Schedule 1, as these entities no longer meet the criteria to be considered Commonwealth authorities. This amendment ensures that the Principal Regulations reflect current legislative arrangements and accurately identify which authorities must comply with procurement rules. The Act, as supplemented by these Regulations, imposes several obligations on the specified Commonwealth authorities and companies. Under section 47A(2) of the Act, the Finance Minister can issue written directions to the directors of specified authorities or companies concerning the procurement of property or services. This ensures that procurement processes within these entities are consistent with government policies and standards. The authorities and companies are also required to adhere to the reporting, accountability, and other rules stipulated in the Act to maintain transparency and efficiency in their operations. Failure to comply with the requirements set out in the Act and the Regulations can result in various consequences. Although specific offences and penalties are not detailed in the Explanatory Statement, non-compliance with government procurement rules can lead to legal actions under the Act. In general, breaches of Commonwealth legislation can result in civil or criminal penalties, depending on the severity and nature of the offence. For instance, under the Act, penalties for non-compliance might include fines or other sanctions that are commensurate with the breach. The Regulations themselves are a legislative instrument under the Legislative Instruments Act 2003, and they were not subject to consultation or the requirement for a Regulation Impact Statement because they were deemed to be of a minor or machinery nature. This determination was made due to the Regulations' role in updating the list of authorities without substantially altering existing arrangements. The amendments simply reflect the current status of certain entities within the Commonwealth framework, ensuring that the applicable regulations are accurate and relevant.