Finance Regulations (Amendment)

Overview

The Statutory Rules No 118 of 1990, issued under the authority of the Minister for Finance, amend Finance Regulation 6A of the Audit Act 1901 to address a specific gap in the legislative framework concerning the financial administration of certain commissions. This amendment was introduced to ensure that the Human Rights and Equal Opportunity Commission and the Industry Commission are recognised as prescribed authorities under the Act. By declaring these Commissions as prescribed authorities, the legislation aims to provide them with the autonomy to operate independently in financial matters, thereby aligning with the policy objective of enhancing the efficiency and integrity of financial administration within these independent bodies. This change is designed to reinforce the independence and effectiveness of these commissions in their respective mandates.

Scope and Application

The Statutory Rules No 118 of 1990, issued under the authority of the Minister for Finance, amend Finance Regulation 6A of the Audit Act 1901. These amendments declare the Human Rights and Equal Opportunity Commission and the Industry Commission as prescribed authorities under the Act, thereby including them within the definition of "Department" as outlined in section 2 of the Act, subregulation 4(1) of the Finance Regulations, and regulation 2 of the Finance (Overseas) Regulations. This designation allows each Commission to independently manage their financial administration, separate from the respective Minister's Department. The amendment extends the application of the Act to these two specific entities, thereby broadening the scope of oversight and regulation to encompass their financial operations. The rules apply across the Commonwealth, ensuring a consistent application of financial regulation to these federal bodies.

Key Provisions

The key provisions of the Statutory Rules No 118 of 1990 pertain to the amendment of Finance Regulation 6A under the Audit Act 1901. Section 1 of these rules formally declares the Human Rights and Equal Opportunity Commission and the Industry Commission as prescribed authorities (section 1(1)). This declaration brings these commissions within the scope of the term "Department" as defined in section 2 of the Audit Act and subregulation 4(1) of the Finance Regulations, and regulation 2 of the Finance (Overseas) Regulations (section 1(2)). As prescribed authorities, both the Human Rights and Equal Opportunity Commission and the Industry Commission are granted independence in financial administration matters, separate from the purview of their respective Ministers' departments. The obligations imposed by these Statutory Rules are primarily on the Human Rights and Equal Opportunity Commission and the Industry Commission. As prescribed authorities, these commissions must ensure that their financial administration is conducted independently and in accordance with the provisions of the Audit Act and associated regulations (section 1(2)). This includes the maintenance of proper financial records, the implementation of effective internal controls, and adherence to any other financial management requirements specified under the Act and its subsidiary regulations. Each commission must also ensure that any financial transactions or operations are conducted in a manner that complies with applicable laws and regulations. Breaches of the requirements set out in the Audit Act 1901 and the amended Finance Regulations could lead to various consequences, including both criminal and civil penalties. Under section 25 of the Audit Act, any person who wilfully contravenes a provision of the Act or regulations made under it can be subject to a fine of up to $21,000 for each offence, as prescribed by section 12AB of the Criminal Code. Additionally, individuals found guilty of more serious breaches, such as those involving fraud or corruption, may face imprisonment for up to five years, as outlined in the same section of the Criminal Code. The precise nature and severity of the penalty will depend on the specific circumstances of the breach and the discretion of the court in imposing the sentence.