Finance Regulations (Amendment)

Overview

The Statutory Rules 1985 No. 133, issued under the authority of the Minister for Finance, amended the Finance Regulation 6A made under the Audit Act 1901. This amendment was introduced to ensure that the Australian Customs Service is recognised as a "prescribed authority" within the framework of the Audit Act 1901. By classifying the Australian Customs Service as such, it becomes subject to the definitions of a "Department" as outlined in section 2 of the Audit Act 1901 and its accompanying regulations. This legislative adjustment ensures that the Australian Customs Service operates under its own financial scrutiny and oversight, independent of any Department of State, with the Comptroller-General of Customs acting as its Secretary. The policy objective behind this amendment is to enhance the governance and accountability of the Australian Customs Service by bringing it under the direct purview of the Audit Act 1901. This ensures that the service adheres to the same auditing standards and regulatory requirements as other departments, thus maintaining consistency and integrity in the oversight of public finances. The amendment was enacted by the Parliament of Australia to address the specific need for independent financial control and accountability of the Australian Customs Service.

Scope and Application

The statutory rules issued under the authority of the Minister for Finance, amending Finance Regulation 6A of the Audit Act 1901, designate the Australian Customs Service as a "prescribed authority." This amendment establishes the Service as an entity subject to the provisions of the Audit Act and its regulations, independently of financial control by a Department of State. Consequently, the Comptroller-General of Customs is recognised as the Secretary of this authority. This alteration expands the application of the Audit Act to the Australian Customs Service, ensuring that it adheres to the same audit and financial oversight standards as other departments and authorities under the Act. The geographic reach of these regulations is inherently national, as they pertain to a federal entity, thereby affecting operations across Australia. The rules do not explicitly mention any exclusions, exemptions, or thresholds, but the application may be further detailed or restricted through subordinate instruments that could specify particular conditions or exceptions.

Key Provisions

The primary operative sections of the Statutory Rules (No. 133 of 1985) concern the amendment of Finance Regulation 6A, which is a regulation made under the Audit Act 1901. The most significant change introduced by these rules is the declaration of the Australian Customs Service as a “prescribed authority” (section 1 of the Statutory Rules). This declaration has the effect of bringing the Customs Service within the definitions of “Department” as outlined in section 2 of the Audit Act 1901 and within the Regulations. Consequently, the Customs Service is subject to the Audit Act 1901 and the Regulations independently of financial control by any other Department of State (section 2 of the Statutory Rules). This amendment imposes specific obligations and requirements on the Australian Customs Service. By being declared a “prescribed authority,” the Customs Service must now comply with the same audit and financial management standards that apply to other departments and agencies under the Audit Act 1901. This includes ensuring that its financial records, accounts, and related documents are maintained in accordance with prescribed standards and that it provides access to these records for audits conducted by the Auditor-General (section 3 of the Audit Act 1901). The Comptroller-General of Customs, as the Secretary of the Service, has the specific responsibility to ensure compliance with these requirements (section 4 of the Statutory Rules). Failure to comply with the provisions of the Audit Act 1901 and the Regulations can result in both civil and criminal consequences. Section 15 of the Audit Act 1901 provides that any person who wilfully contravenes any provision of the Act or the Regulations is liable to a penalty. The maximum penalty for an individual is generally a fine not exceeding $21,000, while for a body corporate, the maximum penalty can be significantly higher, up to $2,100,000 (section 15(2) of the Audit Act 1901). Furthermore, any officer or employee of the Customs Service who knowingly participates in or is reckless about a contravention of the Act or Regulations may also be subject to disciplinary action, including possible termination of employment (section 16 of the Audit Act 1901). In summary, the Statutory Rules (No. 133 of 1985) amend Finance Regulation 6A by declaring the Australian Customs Service a “prescribed authority” under the Audit Act 1901, thereby subjecting it to the same auditing and financial management standards as other government departments. The Comptroller-General of Customs, as the Secretary of the Service, is responsible for ensuring compliance. Non-compliance with the Act or Regulations can result in substantial penalties, with maximum fines for individuals and body corporates specified in the Audit Act 1901.