Overview

The Commonwealth Authorities and Companies Amendment Regulations 2008 (No. 2) were enacted to address the legislative gap created by the transfer of the Australian Accounting Standards Board (AASB) and the Australian Fisheries Management Authority (AFMA) from being governed by the Commonwealth Authorities and Companies Act 1997 to governance under the Financial Management and Accountability Act 1997 on 1 July 2008. This amendment was made by the Commonwealth Parliament to ensure the accuracy and relevance of the regulatory framework governing Commonwealth authorities and companies. The Regulations remove redundant references to AASB and AFMA from the Commonwealth Authorities and Companies Regulations 1997, reflecting their changed governance status, without otherwise altering existing regulatory arrangements. The policy objective of the Regulations is to streamline and modernise the legislative framework to accurately reflect the current governance structures of Commonwealth authorities.

Scope and Application

The Commonwealth Authorities and Companies Amendment Regulations 2008 (No. 2) applies to the Commonwealth Authorities and Companies Act 1997, which governs Commonwealth authorities and companies, establishing rules for their reporting, accountability, and other related matters. These Regulations specifically amend the Commonwealth Authorities and Companies Regulations 1997 to reflect the transfer of the Australian Accounting Standards Board (AASB) and the Australian Fisheries Management Authority (AFMA) from the purview of the CAC Act to the Financial Management and Accountability Act 1997, effective from 1 July 2008. This amendment involves removing AASB and AFMA from the list of Commonwealth authorities subject to government procurement requirements. The Regulations have a national reach as they are made under the authority of the Commonwealth of Australia and apply across all states and territories. There are no stated exclusions, exemptions, or thresholds within these Regulations, which come into effect on the day after their registration on the Federal Register of Legislative Instruments.

Key Provisions

The Commonwealth Authorities and Companies Amendment Regulations 2008 (No. 2) (Regulations) amend the Commonwealth Authorities and Companies Regulations 1997 (Principal Regulations) by removing two references that were consequential to the Australian Accounting Standards Board (AASB) and the Australian Fisheries Management Authority (AFMA) ceasing to be Commonwealth authorities under the Commonwealth Authorities and Companies Act 1997 (CAC Act) on 1 July 2008. Specifically, Regulation 3 of the Regulations amends the Principal Regulations by removing AASB and AFMA from the table in Part 1 of Schedule 1 that lists Commonwealth authorities subject to government procurement requirements (Regulation 3, Schedule 1, items 101 and 102). These changes ensure that the Principal Regulations accurately reflect the current governance arrangements for these authorities, which now fall under the Financial Management and Accountability Act 1997 (FMA Act). The Regulations impose obligations on the entities they govern by updating the regulatory framework to reflect the changes in governance arrangements for AASB and AFMA. Specifically, the removal of these authorities from the list of Commonwealth authorities subject to government procurement requirements means that they are no longer required to adhere to the procurement rules set out in the Principal Regulations. This change ensures that the regulatory framework remains accurate and up-to-date, reflecting the current governance arrangements for these authorities. There are no offences, penalties, or civil or criminal consequences specified in the Regulations for breach. The Regulations simply remove two references that were consequential to the changes in governance arrangements for AASB and AFMA. However, entities that fail to comply with the procurement rules set out in the Principal Regulations may be subject to penalties under the CAC Act or other relevant legislation. The maximum penalties for breach of the procurement rules may vary depending on the nature and severity of the breach. Overall, the Regulations serve to update the regulatory framework for Commonwealth authorities and companies by removing two references that were consequential to the changes in governance arrangements for AASB and AFMA. By doing so, the Regulations ensure that the regulatory framework remains accurate and up-to-date, reflecting the current governance arrangements for these authorities. While the Regulations do not impose any specific obligations or penalties, entities that fail to comply with the procurement rules set out in the Principal Regulations may be subject to penalties under the CAC Act or other relevant legislation.