Finance Regulations (Amendment) 1994 No. 213
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 213
Issued by the authority of the Minister for Finance
Audit Act 1901
Finance Regulations (Amendment)
The attached Statutory Rules amend Finance Regulation 6A which was made under subsection 71(1) of the Audit Act 1901 (the Act). Section 2 of the Act provides, in part, that "prescribed authority" means a body corporate, or an unicorporated body, established for or under an enactment, that is declared by the regulations to be a prescribed authority; and includes a branch of the Australian Public Service prescribed for the purposes of the definition
Regulation 6A of the Finance Regulations declares certain bodies and branches of the Australian Public Service to be prescribed authorities for the purposes of the Act. As prescribed authorities, they are covered by the definitions of "Department" in section 2 of the Act, subregulation 4(1) of the Finance Regulations and regulation 2 of the Finance (Overseas) Regulations.
Only those bodies in relation to which an officer within the body has the powers of a Departmental Secretary, have been prescribed. This ensures that the prescribed authority will be subject to the Act and its subsidiary legislation in its own right. That is, it will conduct its own financial administration independently of the Department of the responsible Minister.
Details of the amendments included in these regulations are as follows:
Australian Science and Technology Council
Subregulation 3.1 amended Finance Regulation 6A(1) by omitting paragraph 6A(1)(g). That paragraph included the Australian Science and Technology Council (the Council) as a prescribed authority.
The Australian Science and Technology Council Act 1978 (the Council's Act), which established the Council, was been amended by the Prime Minister and Cabinet (Miscellaneous Provisions) Act 1994. This Act repealed section 19 of the Council's Act, which provided for a prescribed person within the Council to have the powers of a Departmental Secretary in relation to the Council's staff. Section 19 now provides for the Secretary of the Department of the Prime Minister and Cabinet to make staff available to the Council. One of the purposes of these changes was to require the Council to operate as a branch of the Department of the Prime Minister and Cabinet. It is, therefore, no longer appropriate for the Council to remain as a prescribed authority and it has been omitted from the list of prescribed authorities.
Australian Transaction Reports and Analysis Centre (AUSTRAC)
Subregulation 3.2 includes the Australian Transaction Reports and Analysis Centre (AUSTRAC) in the list of prescribed authorities in Finance Regulation 6A(1).
Part 6 of the Law and Justice Legislation Amendment Act 1994 amended section 40 of the Financial Transaction Reports Act 1988 to give the Director of AUSTRAC the powers of a Departmental Secretary in relation to the staff of AUSTRAC. The purpose of the amendment was to enable AUSTRAC to become a prescribed authority and thus operate independently of the Attorney-General's Department in matters of financial administration.
The amendment became operative on 1 July 1994, the date on which Part 6 of the Law and Justice Legislation Amendment Act 1994 was Proclaimed.
Supervising Scientist for the Alligator Rivers Region
Finance Regulation 6A(2) provides that those branches of the Public Service in relation to which the offices listed in Finance Regulation 6A(3) have the powers of a Departmental Secretary, are prescribed authorities. Subregulation 3.4 omitted the previous reference to the Supervising Scientist for the Alligator Rivers Region (the Supervising Scientist) from Finance Regulation 6A(3). Subregulation 3.3 contains a minor drafting amendment consequent upon the amendment in subregulation 3.4.
Section 13 of the Environment Protection (Alligator Rivers Region) Amendment Act 1993. omitted subsections 26(2), (3) and (4) of the Environment Protection (Alligator Rivers Region) Act 1978. As a consequence, the Supervising Scientist no longer had the powers of a Departmental Secretary in relation to his or her staff. Thus, the reference to the Supervising Scientist in Finance Regulation 6A(3) became redundant and has been deleted.
Overview
The Finance Regulations (Amendment) 1994 No. 213, issued under the authority of the Minister for Finance, amends Finance Regulation 6A, which was enacted under the Audit Act 1901. The primary objective of these amendments is to align the list of prescribed authorities within the Finance Regulations with recent legislative changes affecting the status and functions of certain bodies and branches of the Australian Public Service. The Audit Act 1901 defines a prescribed authority as a body corporate or unincorporated body established for or under an enactment, which the regulations declare to be a prescribed authority. Regulation 6A specifically identifies certain bodies and branches of the Australian Public Service as prescribed authorities. The purpose of these amendments is to ensure that only those bodies where an officer within the body has the powers of a Departmental Secretary are considered prescribed authorities, thereby subjecting them to the Act and its subsidiary legislation in their own right. This ensures that these entities conduct their financial administration independently of the Department of the responsible Minister.
Scope and Application
The Finance Regulations (Amendment) 1994 No. 213 modifies Finance Regulation 6A, which was established under the Audit Act 1901. The amendments specifically pertain to the entities recognised as prescribed authorities within the Act. These prescribed authorities, including certain bodies and branches of the Australian Public Service, are mandated to conduct their financial administration independently from the relevant Department of the responsible Minister. The changes outlined in these regulations affect the Australian Science and Technology Council, the Australian Transaction Reports and Analysis Centre (AUSTRAC), and the Supervising Scientist for the Alligator Rivers Region. The amendment to omit the Australian Science and Technology Council from the list of prescribed authorities reflects legislative changes that now require it to operate as a branch of the Department of the Prime Minister and Cabinet. Conversely, the inclusion of AUSTRAC as a prescribed authority acknowledges the legislative changes that have granted the Director of AUSTRAC the powers of a Departmental Secretary, enabling AUSTRAC to operate independently in matters of financial administration. The deletion of the Supervising Scientist for the Alligator Rivers Region from the list stems from legislative amendments that removed the powers of a Departmental Secretary from the Supervising Scientist, making the reference in the Finance Regulation redundant. These amendments highlight the dynamic nature of financial administration within the Australian Public Service, adapting to legislative changes that reflect shifts in operational and administrative structures.
Key Provisions
The Finance Regulations (Amendment) 1994 No. 213 amends Finance Regulation 6A under the Audit Act 1901, which identifies certain bodies and branches of the Australian Public Service as "prescribed authorities". These prescribed authorities are subject to the Act and its subsidiary legislation, allowing them to conduct their financial administration independently of the relevant Department of the Minister. The amendment includes the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a prescribed authority and removes the Australian Science and Technology Council (the Council) and the Supervising Scientist for the Alligator Rivers Region from the list of prescribed authorities.
The amendments imposed obligations on the Australian Science and Technology Council, AUSTRAC, and the Supervising Scientist for the Alligator Rivers Region. The Council is no longer a prescribed authority because its establishment was amended by the Prime Minister and Cabinet (Miscellaneous Provisions) Act 1994, which removed the powers of a Departmental Secretary for a prescribed person within the Council. AUSTRAC became a prescribed authority as the Financial Transaction Reports Act 1988 was amended to give the Director of AUSTRAC the powers of a Departmental Secretary. The Supervising Scientist for the Alligator Rivers Region was removed as a prescribed authority because the Environment Protection (Alligator Rivers Region) Amendment Act 1993 removed the powers of a Departmental Secretary for the Supervising Scientist.
The Finance Regulations (Amendment) 1994 No. 213 does not impose any specific offences, penalties, or consequences for breach of its provisions. However, the entities affected by the amendment must ensure that they comply with the Audit Act 1901 and its subsidiary legislation. Failure to do so may result in consequences under the relevant legislation, such as fines or other penalties. The maximum penalties for breaches of the Audit Act 1901 and its subsidiary legislation vary depending on the specific provision breached and the circumstances of the breach.