Corporations (Aboriginal and Torres Strait Islander) Amendment (Financial Reports) Regulation 2014

Administered by Department of the Prime Minister and Cabinet

Legislation au F2014L01466 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Select Legislative Instrument No. 164, 2014

 

Issued by the authority of the Minister for Indigenous Affairs

 

Corporations (Aboriginal and Torres Strait Islander) Act 2006

 

Corporations (Aboriginal and Torres Strait Islander) Amendment (Financial Reports) Regulation 2014

 

General outline

 

The Corporations (Aboriginal and Torres Strait Islander) Act 2006 (the Act) provides a special statute of incorporation for Aboriginal and Torres Strait Islander peoples that takes account of the special risks and needs of the Indigenous corporate sector and also aligns with modern corporate governance standards and the Corporations Act 2001. This includes financial reporting standards. The Act provides flexibility for corporations to accommodate specific cultural practices and tailoring to reflect the particular needs and circumstances of individual groups. In acknowledgement of the fact that most corporations are located in remote or very remote areas, and may provide essential services or hold land, the Act also offers safeguards through the Registrar’s unique regulatory powers.

 

Subsection 633-1(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.

 

Background

 

The purpose of the Regulation is to enable members and fellows of the Institute of Public Accountants (IPA) to audit financial reports of small and medium sized Aboriginal and Torres Strait Islander corporations that report under subregulation 333-16.02(2) of the Corporations (Aboriginal and Torres Strait Islander) Regulations 2007 (the Regulations).

 

Subsection 333-5(3) of the Act provides that the regulations may require each Aboriginal and Torres Strait Islander corporation in a class of Aboriginal and Torres Strait Islander corporation to prepare a financial report for a financial year.

 

Subsection 333-15(1) of the Act provides that the regulations may require a section 333-5 report to be prepared in the manner required by the regulations. Subsection 333-15(2) of the Act provides that the regulations may require a financial report to be audited and require that the auditor be an individual auditor who has particular qualifications or experience, or an audit firm that has a member or members who have particular qualifications or experience, or an authorised audit company.

 

The Regulations provide for certain medium and small sized Aboriginal and Torres Strait Islander corporations to prepare financial reports under subdivision 333-B of the Regulations. These financial reports must be audited, if the corporation reports under subregulation 333-16.02(2). These financial reports may be audited under subregulation 333-16.02(3) by a registered company auditor (or their firm or audit company) or by a Chartered member or an Affiliate of the Institute of Chartered Accountants in Australia, or by a Certified Practising Accountant or a Fellow of CPA Australia.

 

The Regulation inserts a new paragraph at the end of subregulation 333-16.02(3) adding members and fellows of the IPA to the list of auditors who may audit these financial reports.

 

The Regulation will bring the Regulations into line with other Commonwealth legislation which recognises the IPA. 

 

The Regulation will also increase the pool of eligible qualified accountants who can audit the financial reports of these small and medium sized corporations and provide them with greater choice for auditing services, particularly in remote and regional areas.

 

The Act does not impose any conditions that need to be satisfied before the power to make the Regulations may be exercised.

 

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Commencement

 

The Regulation commences on the day after it is registered.

 

Consultation

 

Public consultation was undertaken. The consultation included circulation of an exposure draft of the Regulation. The proposal and Regulation exposure draft were notified on the public website of the Registrar of Aboriginal and Torres Strait Islander Corporations (the Registrar) and the public was invited to make submissions. The Registrar also wrote to the Institute of Public Accountants, Certified Practising Accountants Australia and the Institute of Chartered Accountants Australia seeking their submissions on the proposal. Responses to the Regulation exposure draft were considered in the finalisation of the Regulation.

 

Compatibility with Human Rights

 

A Statement of Compatibility with Human Rights has been completed for the Regulation, in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011. The Statement’s overall assessment is that the Regulation is compatible with human rights as it does not raise any human rights issues. The Statement appears at the end of this Explanatory Statement.

 

Regulatory Impact Analysis

 

The Office of Best Practice Regulation (the OBPR) has been consulted and considered that that the Regulation is minor and machinery in nature and no regulation impact statement is required (OBPR reference number 17657). It is unlikely to have any compliance costs on business, community organisations or individuals.

 


 

Explanation of the provisions

 

Section 1 (Name)

 

This section provides that the name of the Regulation is the Corporations (Aboriginal and Torres Strait Islander) Amendment (Financial Reports) Regulation 2014.

 

Section 2 (Commencement)

 

This section provides for the Regulation to commence on the day after it is registered.

 

Section 3 (Authority)

 

This section provides that the Regulation is made under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.

 

Section 4 (Schedules)

 

This section provides that each instrument that is specified in a Schedule is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule has effect according to its terms.

 

Schedule 1 – Amendments

 

Schedule 1, item 1

 

This item inserts new paragraph (d) at the end of subregulation 333-16.02(3) adding members and fellows of the Institute of Public Accountants to the list of auditors who may audit the financial reports of small and medium sized Aboriginal and Torres Strait Islander corporations that report under subregulation 333-16.02(2) of the Regulations.

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Corporations (Aboriginal and Torres Strait Islander) Amendment
(Financial Reports) Regulation 2014

 

The Corporations (Aboriginal and Torres Strait Islander) Amendment (Financial Reports) Regulation 2014 (the Regulation) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.  The Regulation amends the Corporations (Aboriginal and Torres Strait Islander) Regulations 2007 (the Regulations).

 

Overview of the Regulation

 

The purpose of the Regulation is to enable members and fellows of the Institute of Public Accountants (IPA) to audit financial reports of small and medium sized Aboriginal and Torres Strait Islander corporations that report under subregulation 333-16.02(2) of the Regulations.

 

The Corporations (Aboriginal and Torres Strait Islander) Act 2006 (the Act) provides a special statute of incorporation for Aboriginal and Torres Strait Islander peoples that takes account of the special risks and needs of the Indigenous corporate sector and also aligns with modern corporate governance standards and the Corporations Act 2001. This includes financial reporting standards. The Act provides flexibility for corporations to accommodate specific cultural practices and tailoring to reflect the particular needs and circumstances of individual groups. In acknowledgement of the fact that most corporations are located in remote or very remote areas, and may provide essential services or hold land, the Bill also offers safeguards through the Registrar’s unique regulatory powers.

 

Subsection 333-5(3) of the Act provides that the regulations may require each Aboriginal and Torres Strait Islander corporation in a class of Aboriginal and Torres Strait Islander corporation to prepare a financial report for a financial year.

 

Subsection 333-15(1) of the Act provides that the regulations may require a section 333-5 report to be prepared in the manner required by the regulations. Subsection 333-15(2) of the Act provides that the regulations may require a financial report to be audited and require that the auditor be an individual auditor who has particular qualifications or experience, or an audit firm that has a member or members who have particular qualifications or experience, or an authorised audit company.

 

The Regulations provide for certain medium and small sized Aboriginal and Torres Strait Islander corporations to prepare financial reports under subdivision 333-B of the Regulations. These financial reports must be audited, if the corporation reports under subregulation 333-16.02(2). These financial reports may be audited under subregulation 333-16.02(3) by a registered company auditor (or their firm or audit company) or by a Chartered member or an Affiliate of the Institute of Chartered Accountants in Australia, or by a Certified Practising Accountant or a Fellow of CPA Australia.

 

The Regulation inserts a new paragraph at the end of subregulation 333-16.02(3) adding members and fellows of the IPA to the list of auditors who may audit these financial reports.

The Regulation will bring the Regulations into line with other Commonwealth legislation which recognises the IPA. 

 

The Regulation will also increase the pool of eligible qualified accountants that can audit the financial reports of these small and medium sized corporations and provide them with greater choice for auditing services, particularly in remote and regional areas.

 

Human rights implications

 

This Regulation does not engage any of the applicable rights or freedoms.

 

Conclusion

 

The Regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

Senator the Hon Nigel Scullion
Minister for Indigenous Affairs

 

Overview

The Corporations (Aboriginal and Torres Strait Islander) Amendment (Financial Reports) Regulation 2014 was enacted to enhance the financial reporting framework for Aboriginal and Torres Strait Islander corporations. This regulation was introduced to address the need for flexibility and cultural sensitivity in financial reporting practices for Indigenous corporations, ensuring they align with modern governance standards while accommodating specific cultural practices. The enacting body for this regulation is the Minister for Indigenous Affairs, aiming to provide greater choice and accessibility for auditing services, particularly in remote areas. The policy objective is to increase the pool of qualified accountants who can audit the financial reports of small and medium-sized Indigenous corporations, thereby improving their access to auditing services. The regulation modifies the existing Corporations (Aboriginal and Torres Strait Islander) Regulations 2007 to include members and fellows of the Institute of Public Accountants (IPA) among those who can audit the financial reports of small and medium-sized Aboriginal and Torres Strait Islander corporations. This amendment recognises the IPA and aims to increase the availability of auditing services, especially in remote and regional areas where these corporations are often located. The regulation ensures that the financial reporting practices of these corporations remain compliant with human rights standards and do not raise any human rights issues, as confirmed by the Statement of Compatibility with Human Rights.

Scope and Application

The Corporations (Aboriginal and Torres Strait Islander) Amendment (Financial Reports) Regulation 2014 applies to the financial reporting and auditing requirements of small and medium sized Aboriginal and Torres Strait Islander corporations established under the Corporations (Aboriginal and Torres Strait Islander) Act 2006. This Act provides a special statute of incorporation for Aboriginal and Torres Strait Islander peoples, acknowledging the unique risks and needs of the Indigenous corporate sector while aligning with modern corporate governance standards. The Act allows for flexibility in corporate structures to accommodate specific cultural practices and tailor to the particular needs and circumstances of individual groups, with additional safeguards provided through the Registrar’s regulatory powers. The Regulation specifically addresses the auditing of financial reports for these corporations, permitting members and fellows of the Institute of Public Accountants to audit financial reports of small and medium sized Aboriginal and Torres Strait Islander corporations that report under certain subregulations. This inclusion aims to increase the pool of qualified auditors, offering greater choice for auditing services, particularly in remote and regional areas. The Regulation operates nationally across Australia, as it is a subordinate instrument of the Corporations (Aboriginal and Torres Strait Islander) Act 2006, which has Commonwealth jurisdiction. It does not impose any specific conditions or thresholds for its application beyond those already outlined in the primary Act. The Regulation is compatible with human rights, as it does not raise any human rights issues, and aligns with other Commonwealth legislation that recognises the Institute of Public Accountants. The Regulation's commencement date is set for the day after it is registered, following public consultation and consideration of submissions from relevant professional bodies.

Key Provisions

The Corporations (Aboriginal and Torres Strait Islander) Amendment (Financial Reports) Regulation 2014 (the Regulation) amends the Corporations (Aboriginal and Torres Strait Islander) Regulations 2007 (the Regulations) to allow members and fellows of the Institute of Public Accountants (IPA) to audit the financial reports of small and medium-sized Aboriginal and Torres Strait Islander corporations that report under subregulation 333-16.02(2) of the Regulations. This amendment is made under the authority provided by subsection 333-5(3) and subsection 333-15(2) of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (the Act). Under the Regulations, certain medium and small-sized Aboriginal and Torres Strait Islander corporations must prepare financial reports, and these reports must be audited if they report under subregulation 333-16.02(2). The Regulation introduces members and fellows of the IPA to the list of approved auditors who can audit these financial reports, alongside other approved bodies such as registered company auditors, Chartered members or Affiliates of the Institute of Chartered Accountants in Australia, Certified Practising Accountants, and Fellows of CPA Australia. The Act and the Regulations impose obligations on Aboriginal and Torres Strait Islander corporations to prepare and audit their financial reports. The obligation to prepare a financial report is specified under subsection 333-5(3) of the Act, and the requirement to have these reports audited is detailed in subsection 333-15(2) of the Act. The Regulation’s amendment ensures that these corporations have a broader choice of auditors, which may help them comply with these obligations more effectively, particularly in remote and regional areas. The Regulation also mandates that the financial reports must be prepared and audited in accordance with the manner prescribed by the Regulations. This ensures that the financial reports adhere to recognised standards and provide accurate and reliable information about the corporations' financial performance and position. There are no specific offences, penalties, or civil or criminal consequences outlined in the Regulation for breaches of its provisions. However, the Act itself includes general provisions for enforcement and penalties for non-compliance with its requirements. The Act allows for regulatory actions to be taken against corporations that fail to comply with the financial reporting and auditing requirements, which may include fines and other penalties. The Registrar of Aboriginal and Torres Strait Islander Corporations has the authority to take such actions to ensure that the corporations adhere to the financial reporting standards set out in the Act and the Regulations. The Regulation enhances the flexibility and choice available to these corporations in meeting their financial reporting obligations, thereby indirectly supporting compliance with the broader legislative framework.

Legal classification tags

Area of Law
Corporate Law & Governance
Indigenous Peoples & Native Title Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
Regulatory Standards
Licensing & Registration

Interactions

Authorises

All Versions

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.