Family Law (Australian Institute of Family Studies) Amendment Regulations 2002 (No. 1) 2002 No. 163
EXPLANATORY STATEMENT
Statutory Rules 2002 No. 163
Issued by the Authority of the Minister for Family and Community Services
Family Law Act 1975
Family Law (Australian Institute of Family Studies) Amendment Regulations 2002 (No. 1)
Part XIVA of the Family Law Act 1975 (the Act) establishes the Australian Institute of Family Studies (the Institute).
Section 114MC of Part XIVA of the Act provides that the Institute shall not, except with the approval of the Minister, enter into a contract involving the payment by the Institute of an amount exceeding $100,000 or if a higher amount is prescribed-that higher amount.
Subsection 125(1) of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The purpose of the Regulations is to prescribe a higher amount of $400,000 that the Institute may pay in entering a contract without seeking the approval of the Minister.
The reasons for making the Regulations that will enable the Institute to enter into a contract involving the payment of up to $400,000 is:
• a proposed Longitudinal Survey of Australian Children is likely to be conducted later this year and if the current $100,000 limit is retained, numerous sub-contractual arrangement approvals by the Minister would be necessary;
• an increasing level of contracted project work is being conducted and that even small projects are likely to involve contracts in excess of $100,000;
• the $100,000 limit was established in 1986 and has, over time, been eroded by inflation;
• increasing the limit to $400,000 will not weaken the Institute's corporate governance or raise any issues of probity because the Commonwealth Authorities and Companies Act 1997 regulates the Institute's financial management and provides a framework for corporate governance;
• any proposed contractual or sub-contractual arrangements are clearly defined in the Institute's tender for projects; and
• a similar provision relating to the Australian Institute of Health and Welfare was increased to $500,000 in September 1997.
The Regulations specify that the commencement date is on gazettal.
Overview
The Family Law (Australian Institute of Family Studies) Amendment Regulations 2002 (No. 1) were introduced to address the limitations in the Family Law Act 1975 concerning the financial contracting capacity of the Australian Institute of Family Studies. Enacted by the Parliament of Australia, the regulation aims to align the contracting threshold with contemporary financial needs and economic conditions, facilitating the Institute's operational efficiency and capacity to undertake significant projects without excessive administrative burden. The amendments respond to practical challenges, including the necessity for streamlined approval processes in light of anticipated large-scale projects such as the Longitudinal Survey of Australian Children, and the erosion of the previous threshold by inflation since its establishment in 1986. The policy objective is to enhance the Institute's capability to manage its financial commitments effectively while maintaining robust corporate governance standards.
Scope and Application
The Family Law (Australian Institute of Family Studies) Amendment Regulations 2002 (No. 1) amends the Family Law Act 1975 to adjust the financial threshold for the Australian Institute of Family Studies to enter into contracts without the approval of the Minister. This Act applies specifically to the Institute, which is established under Part XIVA of the Family Law Act 1975. The amendment raises the threshold for contract payments from $100,000 to $400,000, thereby allowing the Institute more flexibility in entering into contractual agreements necessary for its operations, such as the proposed Longitudinal Survey of Australian Children. The adjustment is meant to accommodate the evolving scope and scale of the Institute’s projects, which have increasingly required higher contract values due to inflation and the nature of commissioned work. These Regulations apply across the Commonwealth of Australia and come into effect upon gazettal.
Key Provisions
The Family Law (Australian Institute of Family Studies) Amendment Regulations 2002 (No. 1) amend Section 114MC of the Family Law Act 1975, which pertains to the financial limits for contracts that the Australian Institute of Family Studies (the Institute) can enter into without the Minister's approval. Currently, the Act stipulates that the Institute cannot enter into contracts involving payments exceeding $100,000 unless the Minister approves them. However, the Regulations introduce a new threshold, raising the limit to $400,000. This change allows the Institute to manage its contractual obligations more flexibly, especially in the context of significant projects such as the proposed Longitudinal Survey of Australian Children, which could otherwise necessitate numerous Ministerial approvals.
These Regulations impose certain obligations on the Institute, ensuring that any contracts exceeding the new $400,000 limit still adhere to the broader corporate governance and probity frameworks established under the Commonwealth Authorities and Companies Act 1997. This means that while the Institute can enter into larger contracts without Ministerial approval, it must still comply with existing regulations that govern its financial management and corporate governance. Furthermore, any contractual or sub-contractual arrangements must be clearly defined in the Institute’s tenders for projects, ensuring transparency and accountability.
The Regulations also address potential breaches and the consequences thereof. While they do not explicitly outline specific penalties for non-compliance, any breach of the financial management or corporate governance frameworks could result in civil or criminal consequences under the relevant Acts. The overarching principle is that increasing the financial limit does not undermine the integrity or probity of the Institute’s operations, which are already regulated by existing legislation. Therefore, any failure to comply with these requirements could lead to legal actions under the relevant Acts, including potential fines or other penalties as stipulated in those statutes.