Finance Regulations (Amendment) 1996 No. 120
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 120
Issued by the authority of the Minister for Finance
Audit Act 1901
Finance Regulations (Amendment)
Finance Regulation 6A
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 unincorporated 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.
The attached regulations replace subregulation (1) by:
* adding the National Competition Council to the list of prescribed authorities. The Council was established under section 29A of the Trade Practices Act 1974 as amended by the Competition Policy Reform Act 1995. This ensures that the Council is 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.
* omitting the previous references to the Automotive Industry Authority, the Merit Protection and Review Agency and to the Textiles, Clothing and Footwear Development Authority.
- The Automotive Industry Authority no longer exists. Its establishing Act, the Automotive Industry Authority Act 1994, was repealed by the Automotive Industry Authority Repeal Act 1994,
- The Merit Protection and Review Agency was amalgamated with the Public Service Commission by the Public Service Legislation Amendment Act 1995 to form the Public Service and Merit Protection Commission. That Commission is a prescribed authority by virtue of subregulations 6A(2) and (3) which provide that the branch of the Public Service in relation to which the Public Service Commissioner has the powers of a Departmental Secretary, is a prescribed authority.
- The Textiles, Clothing and Footwear Development Authority no longer exists. Section 63 of the Textiles, Clothing and Footwear Development Act 1988 provides that that Act shall cease to have effect as from 29 February 1996.
* making other amendments of a technical nature.
These amendments came into operation on 1 July 1996.
Finance Regulations 74, 74A and 78
The attached regulations amend Finance Regulation 74 which prescribes the kinds of advances which an authorising officer may authorise. The regulation has been amended to include advances to be made to an officer in the Attorney-General's Department or to a private sector legal practitioner for the purpose of making payments on behalf of the Commonwealth in connection with any legal matter in which the Commonwealth is involved.
The amended regulation also provides that this type of advance will to be subject to such conditions as may be approved by the Secretary to the Department of Finance from time to time.
The attached regulations also amend Finance Regulation 74A which declares the kinds of purposes that are purposes to which subsection 36(2) of the Act applies. The effect of the declaration is to exempt particular types of advances from the requirement to repay that part of the advance unexpended at the end of the financial year.
The amendment provides that the settlement of amounts due in connection with a legal matter is declared to be a purpose to which subsection 36(2) of the Act applies.
Finance Regulation 78 has been amended to exclude advances for the settlement of amounts due in connection with a legal matter from the prescribed arrangements for acquitting advances.
The purpose of the amendments to Finance Regulations 74, 74A and 78 is to enhance the current administrative arrangements for repaying advances for the settlement of amounts due in connection with a legal matter. For example, the amendments would permit the Secretary to the Department of Finance to set a repayment date later than 30 June.
These amendments came into operation on the date of Gazettal.
Overview
The Finance Regulations (Amendment) 1996 No. 120, issued under the authority of the Minister for Finance, amends the Finance Regulations made under the Audit Act 1901. This legislation addresses the need to update the list of prescribed authorities and to refine the administrative arrangements for repaying advances related to legal matters. The changes include the addition of the National Competition Council to the list of prescribed authorities, ensuring it operates independently in its financial administration. Additionally, the regulation removes references to defunct entities such as the Automotive Industry Authority, Merit Protection and Review Agency, and Textiles, Clothing and Footwear Development Authority, reflecting changes in government structures and responsibilities. The amendments also introduce new provisions for advances to be made for legal matters, allowing for more flexible repayment terms. These regulatory updates aim to streamline financial administration and ensure compliance with current legislative requirements.
Scope and Application
The Finance Regulations (Amendment) 1996 No. 120, made under the Audit Act 1901, modify Finance Regulation 6A to update the list of prescribed authorities, including adding the National Competition Council and removing references to defunct entities such as the Automotive Industry Authority, the Merit Protection and Review Agency, and the Textiles, Clothing and Footwear Development Authority. This amendment ensures that the Council is recognised as an independent entity subject to the Act and its subsidiary legislation. The changes also make technical adjustments to enhance the administrative arrangements for repaying advances related to legal matters, as detailed in Finance Regulations 74, 74A, and 78. These amendments aim to allow for more flexible repayment terms for legal-related advances, with the Secretary to the Department of Finance able to set repayment dates beyond the end of the financial year. The regulations came into operation on 1 July 1996, aligning with the changes in the establishment and dissolution of relevant authorities.
Key Provisions
The Finance Regulations (Amendment) 1996 No. 120 introduces several key changes to the Finance Regulations under the Audit Act 1901. The main changes are found in Finance Regulation 6A, which declares certain bodies and branches of the Australian Public Service to be prescribed authorities. The amendment adds the National Competition Council to the list of prescribed authorities, ensuring it conducts its financial administration independently of the Department of the responsible Minister (Reg 6A). The amendment also removes references to the Automotive Industry Authority, Merit Protection and Review Agency, and Textiles, Clothing and Footwear Development Authority, as these entities no longer exist or have been amalgamated with other bodies. The changes came into effect on 1 July 1996.
The amendments to Finance Regulations 74, 74A, and 78 introduce new provisions concerning advances authorised by an authorising officer. Finance Regulation 74 now includes advances to be made to an officer in the Attorney-General's Department or to a private sector legal practitioner for the purpose of making payments on behalf of the Commonwealth in any legal matter (Reg 74). This type of advance is subject to conditions approved by the Secretary to the Department of Finance. Finance Regulation 74A declares the settlement of amounts due in connection with a legal matter to be a purpose to which a particular subsection of the Act applies, thereby exempting these advances from the requirement to repay unexpended amounts at the end of the financial year (Reg 74A). Finance Regulation 78 has been amended to exclude these advances from the prescribed arrangements for acquitting advances. The purpose of these amendments is to enhance administrative arrangements for repaying advances for legal matters.
Entities and individuals governed by these regulations have specific obligations and requirements. Prescribed authorities, including the newly added National Competition Council, must conduct their financial administration independently and are subject to the definitions of "Department" in section 2 of the Audit Act 1901 and other relevant regulations. Authorising officers must adhere to the new conditions for advances related to legal matters, as approved by the Secretary to the Department of Finance. These conditions are designed to provide flexibility in repaying advances, potentially setting repayment dates beyond the 30 June deadline.
Failure to comply with these regulations can result in various consequences. While specific offences, penalties, or consequences are not detailed in the explanatory statement, breaches of the Audit Act 1901 and its subsidiary legislation generally attract penalties under the relevant sections of the Act. Such penalties may include fines and, in severe cases, criminal charges. The amendments aim to streamline and enhance the administrative process for handling financial advances related to legal matters, ensuring compliance and proper financial oversight.