EXPLANATORY STATEMENT
STATUTORY RULE 1986 NO 154
CONCILIATION AND ARBITRATION REGULATIONS (AMENDMENT)
(Issued by the Authority of the Minister for Employment and Industrial Relations)
The Statute Law (Miscellaneous Provisions) Act (No 1) 1985 included, in part, amendments to Part VIIIAA of the Conciliation and Arbitration Act 1904 relating to the financial accounting and reporting requirements for organizations registered under the Act. These amendments will:
(i) enable an organization or branch whose annual income does not exceed $10 000 to apply each year to the Industrial Registrar for a certificate of exemption from certain requirements of Part VIIIAA;
(ii) provide alternative financial accounting and reporting requirements for such an organization or branch.
These amendments to the Act are expressed to come into effect upon proclamation, but were not proclaimed pending the preparation of complementary amendments to the Conciliation and Arbitration Regulations. It is desirable that the amendments to the Act and to the Regulations come into operation at the same time.
The proposed regulations amend Part VI of the Conciliation and Arbitration Regulations by inserting detailed provisions in respect of those organizations and branches of organizations whose annual income does not exceed $10,000 and which have obtained a certificate of exemption from certain requirements of Part VIIIAA of the Act. Under the proposed regulations each such organization and branch will still be required to account for all income and expenditure and to provide details of its assets and liabilities as at the end of its financial year.
The proposed regulations are to take effect on the date of commencement of the amendments to Part VIIIAA of the Act. It has been recommended to the Governor-General that he proclaim 30 June 1986 as the date on which the amendments to the Act shall come into operation.
Details of the proposed regulations are as follows:
• Regulation 1 inserts new regulation 149A into the regulations.
- regulation 149A(a) provides for an account of all income and expenditure items for a registered organization during the financial year in accordance with the following sub-paragraphs:
- sub-paragraph 149A(a)(i) requires details of the total amount received as entrance fees, or periodic contributions, for membership of the organization to be included in the statement of accounts;
- sub-paragraph 149A(a)(ii) requires details of the total amount of any grants or donations received by the organization to be included in the statement of accounts;
- sub-paragraph 149A(a)(iii) requires details of the total amount paid by the organization as a grant or donation to be included in the statement of accounts;
- sub-paragraph 149A(a)(iv) provides that where an organization is divided into branches, any monies paid by those branches to the organization towards administrative expenses are to be included in the statement of accounts;
- sub-paragraph 149A(a)(v) provides that where the organization is a branch of another organization, and pays an amount to that organization as a contribution towards administrative expenses, then that amount is to be included in the statement of accounts;
- sub-paragraph 149A(a)(vi) requires details of any amounts paid to political parties or other bodies to be provided in the statement of accounts;
- sub-paragraph 149A(a)(vii) provides that details of amounts paid as administrative expenses, professional fees or remuneration to holders of offices in, or to the employees of, the organization are to be included in the statement of accounts;
- sub-paragraph 149A(a)(viii) requires details to be included in the statement of accounts in circumstances where the assets amounting to more than $1000 of an organization have been sold or revalued;
- sub-paragraph 149A(a)(ix) provides that where there is an excess of income over expenditure or an excess of expenditure over income, then this amount is to be included in the statement of accounts;
- regulation 149A(b) provides for an account of the assets and liabilities for a registered organization during the financial year in accordance with the following sub-paragraphs:
- sub-paragraph 149A(b)(i) requires details of the total amount of cash in hand to be shown in the statement of accounts;
- sub-paragraph 149A(b)(ii) requires details of the total amount of cash at bank to be shown in the statement of accounts;
- sub-paragraph 149A(b)(iii) requires details of the total amount of loans made to the organization to be included in the statement of accounts;
- sub-paragraph 149A(b)(iv) requires details of the total amount of loans made by the organization to be included in the statement of accounts;
- sub-paragraph 149A(b)(v) provides for the total book value of investments, including real property and other assets valued in excess of $1000, to be included in the statement of accounts;
- sub-paragraph 149A(b)(vi) requires the total amount of the balance of all funds operating under the rules of the organization to be included in the statement of accounts;
- sub-paragraph 149A(b)(vii) provides for the balance of the general fund to be included in the statement of accounts;
• Regulation 2 amends regulation 152 of the regulations:
- the amendments include the insertion in sub-regulation (1) of the phrase “or section 158AN(3) whichever is applicable”;
- sub-paragraph 1(a)(iv) is amended by the insertion of the phrase “in the case of accounts prepared in accordance with sub-section 158AD(1) of the Act”;
- sub-paragraph 1(a)(iva) requires details to be provided of any payments that were made for a purpose other than the purpose for which the fund was operated, out of the fund referred to in sub-paragraph 149(b) (.vi);
- existing paragraphs 1(b) and sub-paragraph 1(b)(iii) are amended by the insertion of the words “given by” and the deletion of the word “and” respectively;
- existing sub-paragraph 1(b)(iv) is omitted and sub-paragraph 1(b)(iv) is inserted. Sub-paragraph 1(b)(iv) requires that an organization shall comply with whichever of the provisions of sub-section 158AG(1) and (4A) or (4B) of the Act as are applicable in relation to any report of the auditor prepared in accordance with section 158AF or in relation to any accounts and statements prepared in accordance with section 158AD in respect of the previous financial year;
- sub-paragraph 1(b)(v) is Inserted into the regulations and, in relation to sub-section 158AN(3) of the Act, requires that an organization shall comply with the provisions of sub-sections 158AN(5) and (6) of the Act in relation to any report of the auditor prepared in accordance with section 158AF of the Act and in relation to any accounts and statements prepared in accordance with sub-section 158AN(3) of the Act in respect of the previous financial year;
- sub-regulation (1A) is inserted into the regulations and provides that a statement made in respect of an organization referred to in sub-paragraph 1(b)(iv) is not admissible as evidence in proceedings against the organization under sub-section 158AG(2) of the Act for an offence against sub-section 158AG(1) or under sub-section 158AG(5) of the Act for an offence against sub-section 158AN(6) of the Act;
- sub-regulation (1B) is inserted into the regulations and provides that a statement made in respect of an organization referred to in sub-paragraph 1(b)(v) is not admissible as evidence in proceedings against the organization under sub-section 158AG(5) of the Act for an offence against sub-section 158AN(5) or under sub-section 158AN(7) of the Act for an offence against sub-section 158AN(6) of the Act.