Conciliation and Arbitration Regulations (Amendment)

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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.

Overview

The Conciliation and Arbitration Regulations (Amendment) Statutory Rule 1986, issued by the authority of the Minister for Employment and Industrial Relations, was enacted to address gaps in financial reporting requirements for certain organizations under the Conciliation and Arbitration Act 1904. These amendments were made through the Statute Law (Miscellaneous Provisions) Act (No 1) 1985 and sought to provide alternative financial accounting and reporting requirements for organizations or branches with an annual income of up to $10,000, allowing them to apply for a certificate of exemption from certain requirements of Part VIIIAA of the Act. The objective was to streamline and reduce the administrative burden on smaller organizations while still ensuring transparency and accountability in their financial dealings. The proposed regulations, which complement the amendments to the Act, were designed to provide detailed provisions for organizations and branches with an annual income below $10,000 that have obtained a certificate of exemption. These regulations mandate that such organizations still account for all income and expenditure and provide details of their assets and liabilities. The regulations were set to come into effect simultaneously with the amendments to the Act, with a recommended commencement date of 30 June 1986.

Scope and Application

The Conciliation and Arbitration Regulations (Amendment) Statutory Rule 1986 No 154 applies to organizations and their branches that are registered under the Conciliation and Arbitration Act 1904, particularly those whose annual income does not exceed $10,000. These organizations or branches are eligible to apply for a certificate of exemption from certain financial accounting and reporting requirements outlined in Part VIIIAA of the Act. Upon obtaining such a certificate, these entities are still required to account for all income and expenditure and provide details of their assets and liabilities at the end of their financial year. The regulations were designed to come into effect concurrently with the amendments to the Act and were proclaimed to commence on 30 June 1986. The regulations also establish specific accounting and reporting requirements for organizations and branches that qualify for exemption, including detailed provisions for the inclusion of various income and expenditure items, as well as assets and liabilities in their financial statements. Additionally, the regulations address the admissibility of statements in legal proceedings against the organizations.

Key Provisions

The main operative sections of the Conciliation and Arbitration Regulations (Amendment) Statutory Rule 1986 No 154 require that organisations and branches with an annual income of $10,000 or less and that have obtained a certificate of exemption from certain financial reporting requirements under Part VIIIAA of the Conciliation and Arbitration Act 1904 must still provide an account of all income and expenditure and details of assets and liabilities. Regulation 149A(a) stipulates the specific details to be included in the statement of accounts, such as entrance fees, grants, donations, administrative expenses, political payments, and assets sales or revaluations. Regulation 149A(b) requires that the statement of accounts must include details of cash in hand, cash at bank, loans, investments, and funds balances. Regulation 2 amends regulation 152 to incorporate additional reporting requirements for these organisations, including compliance with auditor report and account preparation provisions and the admissibility of statements in legal proceedings. The obligations and requirements imposed by these regulations on the relevant organisations and branches include the preparation and submission of annual financial statements that comply with the specified accounting standards. These statements must accurately reflect all income and expenditure, as well as the assets and liabilities of the organisation. Specifically, Regulation 149A mandates that the statement of accounts must detail the total amount of entrance fees, grants, donations, administrative expenses, political payments, and any sales or revaluations of assets. Additionally, Regulation 149A(b) requires that the statement of accounts must also include details of cash holdings, loans, investments, and fund balances. Regulation 2 further specifies that these organisations must comply with provisions regarding the preparation and reporting of auditor reports and financial statements, as well as the admissibility of statements in legal proceedings. The proposed regulations impose several potential consequences for non-compliance. Under sub-section 158AG(1) of the Conciliation and Arbitration Act 1904, an organisation may be subject to an offence if it fails to comply with the financial reporting requirements. The penalties for such offences can include fines, with the maximum penalty varying depending on the specific offence and jurisdiction. Additionally, under sub-section 158AN(6) of the Act, an organisation may also be subject to an offence if it fails to comply with auditor report requirements, with similar penalties applying. Furthermore, Regulation 2 stipulates that statements made in respect of an organisation are not admissible as evidence in proceedings against the organisation for certain offences, further emphasising the importance of compliance with the regulations.

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