Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 2)

Administered by Department of Finance

Legislation au F2006L03738 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Select Legislative Instrument 2006 No. 298

 

Issued by the Authority of the Minister for Finance and Administration

 

Commonwealth Authorities and Companies Act 1997

 

Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 2) (the Regulations)

 

The Commonwealth Authorities and Companies Act 1997 (the Act) provides reporting, accountability and other rules for Commonwealth authorities and Commonwealth companies.

 

Subsection 49(1) of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

Section 5 of the Act defines ‘government business enterprise’ as meaning a Commonwealth authority or Commonwealth company that is prescribed in the Commonwealth Authorities and Companies Regulations 1997 (the Principal Regulations). Regulation 4 of the Principal Regulations provides that the Commonwealth authorities mentioned in the table in subregulation 4(1) and the Commonwealth companies mentioned in the table in subregulation 4(2) are prescribed.

 

Regulation 4A of the Principal Regulations provides that the Minister for Finance and Administration is prescribed as the Minister responsible for the Commonwealth companies mentioned in the table in subregulation 4A(1).

 

As a consequence of the sale of Telstra Corporation Limited (Telstra) and the renaming of the Defence Housing Authority, the Regulations will add the Telstra Sale Company Limited (TSCL) to the table in subregulation 4A(1), remove Telstra Corporation Limited (Telstra) from the table in subregulation 4(2) and change the name of the Defence Housing Authority in the table in subregulation 4(1).

 

Further details of the Regulations are in the Attachment.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

In accordance with section 17 of the Legislative Instruments Act 2003 we have consulted with the Department of Communications, Information Technology and the Arts. No further consultation was undertaken in relation to the Regulations as they are of a minor or machinery nature and do not substantially alter existing arrangements.

 

The Regulations have three different commencement dates. The TSCL amendment commences the day after the Regulations are registered and the amendment to de-prescribe Telstra commences on the ‘designated day’ as defined in section 3 of the Telstra (Transition to Full Private Ownership) Act 2005. The amendment to change the name of the Defence Housing Authority commences on the day on which Schedule 1 to the Defence Housing Authority Amendment Act 2006 commences (a day to be fixed by Proclamation or the first day 6 months after that Act receives Royal Assent).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT

 

Details of the Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 2)

 

Regulation 1 – Name of Regulations

 

This regulation provides that the title of the Regulations is the Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 2).

 

Regulation 2 – Commencement

 

This regulation provides for the commencement of the Regulations as follows:

  • Regulations 1, 2, and 3 and Schedule 1 to commence the day after they are registered;
  • Regulation 4 and Schedule 2 to commence on the designated day under section 3 of the Telstra (Transition to Full Private Ownership) Act 2005; and
  • Regulation 5 and Schedule 3 to commence on the day on which Schedule 1 to the Defence Housing Authority Amendment Act 2006 commences.

 

Regulation 3 – Amendment of Commonwealth Authorities and Companies Regulations 1997

 

This regulation provides that the Commonwealth Authorities and Companies Regulations 1997 (the Principal Regulations) are amended as set out in Schedule 1.

 

Regulation 4 – Amendment of Commonwealth Authorities and Companies Regulations 1997

 

This regulation provides that the Principal Regulations are amended as set out in Schedule 2.

 

Regulation 5 – Amendment of Commonwealth Authorities and Companies Regulations 1997

 

This regulation provides that the Principal Regulations are amended as set out in Schedule 3.

 

Schedule 1

 

Item [1] – Schedule 1

 

This amendment updates the table of Commonwealth companies that the Minister for Finance and Administration is responsible for by adding the Telstra Sale Company Limited (TSCL).

  • On 29 September 2006, TSCL was incorporated as a public company limited by shares. The Finance Minister is responsible for TSCL given his responsibility under the Administrative Arrangements Order for asset sales. Therefore, the Principal Regulations will be updated to include TSCL as a Commonwealth company for which the Finance Minister is responsible.

Schedule 2

 

Item [1] – Schedule 2

 

This amendment updates the table of Commonwealth companies which are government business enterprises by removing Telstra Corporation Limited (Telstra).

  • From the “designated day”, as defined in section 3 of the Telstra (Transition to Full Private Ownership) Act 2005, the Commonwealth will no longer hold the majority of the voting shares in Telstra and therefore Telstra should no longer be named in the Principal Regulations.

 

Schedule 3

 

Item [1] – Schedule 3

 

This amendment updates the table of Commonwealth companies which are government business enterprises by changing the name of the Defence Housing Authority.

  • Provisions in the Defence Housing Authority Amendment Act 2006 will replace the name “Defence Housing Authority” with “Defence Housing Australia”. Accordingly, the references to “Defence Housing Authority” in the Principal Regulations will need to be replaced with references to “Defence Housing Australia”.

Overview

The Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 2) were enacted to update the Commonwealth Authorities and Companies Regulations 1997 in response to significant changes in the status and nomenclature of certain Commonwealth entities. These changes include the privatisation of Telstra Corporation Limited, the establishment of the Telstra Sale Company Limited, and the renaming of the Defence Housing Authority to Defence Housing Australia. The Regulations were made under the authority of the Commonwealth Authorities and Companies Act 1997, which sets out the reporting, accountability, and other rules for Commonwealth authorities and companies. The objective of these amendments is to ensure that the regulatory framework accurately reflects the current structure and responsibilities of the Commonwealth entities involved. The Regulations were issued by the Minister for Finance and Administration, following consultation with relevant departments, and they are intended to be of a minor or machinery nature, not substantially altering existing arrangements.

Scope and Application

The Commonwealth Authorities and Companies Act 1997, complemented by the Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 2), provides a framework for reporting, accountability and governance rules for entities under Commonwealth control, specifically designated as Commonwealth authorities and Commonwealth companies. The Act applies to these entities, which are prescribed in the Commonwealth Authorities and Companies Regulations 1997, and includes those that are classified as government business enterprises. The scope of the Act is nationwide, applying throughout Australia as a federal law. The Regulations, which amend the Principal Regulations, include specific adjustments such as adding the Telstra Sale Company Limited to the list of Commonwealth companies, removing Telstra Corporation Limited following its transition to full private ownership, and renaming the Defence Housing Authority to Defence Housing Australia. The application of the Act is extended through subordinate instruments, specifically the Regulations, which are designed to update the Principal Regulations to reflect changes in the composition and structure of Commonwealth-controlled entities. The Regulations themselves have staggered commencement dates, reflecting the various legislative processes involved in the changes they enact.

Key Provisions

The Commonwealth Authorities and Companies Amendment Regulations 2006 (No. 2) introduces amendments to the Commonwealth Authorities and Companies Regulations 1997. The amendments primarily involve updating the list of entities under the purview of the Commonwealth Authorities and Companies Act 1997. Regulation 3 of the Regulations adds the Telstra Sale Company Limited (TSCL) to the list of Commonwealth companies overseen by the Minister for Finance and Administration, reflecting the sale of Telstra Corporation Limited (s. 1, Schedule 1). Regulation 4 removes Telstra Corporation Limited from the list of Commonwealth companies, effective from the 'designated day' defined in the Telstra (Transition to Full Private Ownership) Act 2005, when the Commonwealth ceases to hold the majority of voting shares in Telstra (s. 1, Schedule 2). Finally, Regulation 5 updates the name of the Defence Housing Authority to Defence Housing Australia, aligning with changes enacted in the Defence Housing Authority Amendment Act 2006 (s. 1, Schedule 3). These regulations impose specific obligations on the entities they govern. The inclusion of TSCL under the oversight of the Minister for Finance and Administration necessitates that TSCL complies with all reporting, accountability, and other requirements stipulated under the Commonwealth Authorities and Companies Act 1997. Similarly, the removal of Telstra Corporation Limited from the list of Commonwealth companies means that Telstra is no longer subject to these regulatory requirements post the 'designated day'. Additionally, the renaming of the Defence Housing Authority to Defence Housing Australia requires all relevant documentation, filings, and communications to reflect this change. The Act does not explicitly outline offences, penalties, or civil/criminal consequences for breaches of these regulations. However, any breach of the obligations and requirements imposed by the Commonwealth Authorities and Companies Act 1997 could potentially lead to enforcement actions under that Act. Penalties for non-compliance with the Act can vary and may include fines or other civil penalties, depending on the nature and severity of the breach. In severe cases, criminal penalties might also be applicable, although such instances would typically be rare and reserved for more flagrant or deliberate violations of the Act.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.