Defence Force Regulations (Amendment) 1998 No. 63
EXPLANATORY STATEMENT
STATUTORY RULES 1998 NO. 63
Issued by the Authority of the Minister for Defence Industry, Science and Personnel
Defence Act 1903
Defence Force Regulations (Amendment)
The Defence Force Regulations ("the Principal Regulations"), made under the Defence Act 1903, prescribe various matters relating to the organisation and administration of the Navy, Army and Air Force.
This Statutory Rule makes two amendments to the Principal Regulations consequential on the repeal of the Audit Act 1901 and the commencement of the Financial Management and Accountability Act 1997 ("the FMA Act").
The first amendment relates to Part IX of the Principal Regulations which prescribed the way in which unclaimed property, held in a Defence Force store or other Defence Force establishment, was to be disposed. For other Departments, and for Defence in general, the disposal of unclaimed property was dealt with under the former Financial Regulations made pursuant to the Audit Act. With the repeal of the Audit Act, the scheme for the disposal of unclaimed property is now set out in regulation 25 of the Financial Management and Accountability Regulations (SR 1997 No 328) made under the FMA Act. This new scheme satisfies Defence's requirements for disposing of unclaimed property and therefore Part IX of the Principal Regulations was unnecessary. Regulation 3 of this Statutory Rule omits Part IX from the Principal Regulations.
The second amendment relates to regulation 82 of the Principal Regulations which sets out matters that cannot form the basis of a complaint by a member of the Australian Defence Force using the internal redress of grievance system. Paragraph 82(b) stated that a member could not make a complaint in relation to a determination under subsection 70AC(1) of the Audit Act, that is, a determination that the member was liable to pay an amount to the Commonwealth in respect of the loss of public moneys, or the loss of or damage to public property. Regulation 4 of this Statutory Rule amends paragraph 82(b) of the Principal Regulations by replacing the reference to the repealed Audit Act provision with a reference to the provisions in the FMA Act now dealing with those matters. Under the repealed Audit Act, the Administrative Appeals Tribunal was empowered to deal with any appeal against an assessment of liability. Under the FMA Act, the amount that is determined to be owed is recoverable as a debt in a court of competent jurisdiction. This mechanism will protect the interests of aggrieved persons, including members of the Australian Defence Force, who may wish to challenge their liability.
The Statutory Rule comes into operation on the date of gazettal.
Overview
The Defence Force Regulations (Amendment) 1998 No. 63 was introduced to address the need for updating the Defence Force Regulations, made under the Defence Act 1903, in light of the repeal of the Audit Act 1901 and the commencement of the Financial Management and Accountability Act 1997. This statutory rule was enacted by the authority of the Minister for Defence Industry, Science and Personnel. The primary objective of these amendments was to align the Defence Force Regulations with the new financial management framework established by the FMA Act. Specifically, the amendments removed outdated provisions concerning the disposal of unclaimed property, which were now governed by the Financial Management and Accountability Regulations, and updated the regulation that specified matters outside the scope of internal grievances to reflect the changes in liability determinations under the FMA Act.
The first amendment omitted Part IX of the Defence Force Regulations, which previously prescribed the disposal of unclaimed property but was rendered unnecessary by the new regulations under the FMA Act. The second amendment updated the regulation concerning the scope of internal grievances to reflect the shift in liability determinations from the Audit Act to the FMA Act, ensuring that members of the Australian Defence Force could still challenge their liability in a manner consistent with the new legislative framework. This statutory rule took effect on the date of its gazettal.
Scope and Application
The Defence Force Regulations (Amendment) 1998 No. 63 applies to the Defence Force Regulations made under the Defence Act 1903, specifically targeting the organisation and administration of the Navy, Army and Air Force. This amendment concerns two specific areas: the disposal of unclaimed property held in Defence Force stores and the establishment of what matters cannot form the basis of a complaint by a member of the Australian Defence Force under the internal redress of grievance system. The changes made by this Statutory Rule are consequential upon the repeal of the Audit Act 1901 and the commencement of the Financial Management and Accountability Act 1997. By removing Part IX of the Principal Regulations, the amendment aligns Defence’s procedures for the disposal of unclaimed property with the new scheme set out in regulation 25 of the Financial Management and Accountability Regulations. Additionally, the amendment adjusts the internal redress of grievance system by updating the reference to the repealed Audit Act provision with the relevant provisions in the FMA Act, ensuring that matters related to liability assessments are now handled according to the new financial management framework.
Key Provisions
The Defence Force Regulations (Amendment) 1998 No. 63 primarily amends the Defence Force Regulations, which are made under the Defence Act 1903 and cover various aspects of the administration of the Navy, Army, and Air Force. Two key amendments are made: the first removes Part IX of the Principal Regulations, which previously governed the disposal of unclaimed property held by Defence. This was necessary following the repeal of the Audit Act 1901 and the introduction of the Financial Management and Accountability Act 1997 (FMA Act). The new scheme for the disposal of unclaimed property is now detailed in regulation 25 of the Financial Management and Accountability Regulations, and this change ensures Defence's processes align with the current legislative framework.
These amendments impose specific obligations on the Defence Force to ensure compliance with the updated regulatory environment. For instance, Defence must now adhere to the provisions outlined in regulation 25 of the Financial Management and Accountability Regulations when dealing with unclaimed property. This shift in regulatory responsibility requires Defence to update its internal policies and procedures to reflect the new legal standards. Additionally, the amendment to regulation 82 of the Principal Regulations ensures that Defence members cannot lodge complaints regarding certain determinations under the repealed Audit Act provisions, but rather must follow the new procedures set out in the FMA Act. This change necessitates Defence to educate its members about the new complaint processes and ensure that internal systems are updated accordingly.
The Statutory Rule also addresses the consequences of non-compliance with the updated regulations. While specific penalties for breaches are not outlined in the text, the general legal framework under which Defence operates would apply. For instance, any failure to comply with the Financial Management and Accountability Regulations could result in civil or criminal penalties as prescribed under the FMA Act. The exact penalties would depend on the nature and severity of the breach, but could include fines, imprisonment, or other legal repercussions. These potential consequences underscore the importance for Defence to adhere to the new regulatory requirements.