National Security (Supplementary) Regulations (Amendment)

Overview

The Statutory Rules of 1942, No. 111, under the National Security Act 1939-1940, introduce amendments to the National Security (Supplementary) Regulations. These amendments address the financial reporting requirements of the Commonwealth Bank of Australia and the Commonwealth Savings Bank of Australia during wartime. Enacted by the Governor-General, acting on the advice of the Federal Executive Council, the regulations aim to streamline and modify the financial obligations of the two banks in alignment with national security needs. The policy objective appears to be to reduce administrative burdens on the banks and the Treasurer while ensuring that essential financial oversight is maintained by the Auditor-General and presented to Parliament.

Scope and Application

This legislative instrument pertains to the National Security (Supplementary) Regulations under the National Security Act 1939-1940, and applies to the Commonwealth Bank of Australia and the Commonwealth Savings Bank of Australia. The Regulations are focused on altering the reporting and financial management requirements of these banks, particularly during times of national security concerns. Specifically, the Regulations exempt the boards of directors and commissions from furnishing certain quarterly statements and balance sheets to the Treasurer and instead require the submission of an annual balance sheet by the thirtieth of June each year. This balance sheet must be submitted to the Auditor-General and subsequently to the Treasurer, and a copy must be provided to the President of the Senate and the Speaker of the House of Representatives for tabling in their respective Houses. The Regulations also modify the timing for calculating and crediting interest on savings bank deposits and stipulate the format for banking statistics supplied to the Treasurer. These provisions are designed to streamline and adjust financial reporting processes in response to national security imperatives, without explicitly specifying exclusions or thresholds, though the application is inherently limited to the Commonwealth Bank and the Savings Bank as per the referenced Commonwealth Bank Act 1911-1942.

Key Provisions

The primary provisions of these regulations, as outlined in section 39, concern the modifications to the reporting requirements of the Commonwealth Bank of Australia and the Commonwealth Savings Bank of Australia. Under the Commonwealth Bank Act 1911-1932, the Board of Directors of the Commonwealth Bank and the Commission appointed under the Act were previously required to submit quarterly statements and balance-sheets to the Treasurer. However, these regulations now exempt them from that obligation. Instead, section 39(2) mandates that these entities prepare a balance-sheet as at the thirtieth day of June each year, which must be submitted to the Auditor-General for verification. The balance-sheet and the Auditor-General’s report are then to be sent to the Treasurer and must also be laid before the Senate and the House of Representatives. Furthermore, section 40 alters the treatment of the net profits of the Commonwealth Bank and the Commonwealth Savings Bank. Instead of being dealt with on a half-yearly basis, as previously required, the net profits for each financial year will now be managed according to sections 30 and 35V of the Act. Section 41 modifies the calculation of interest on Savings Bank deposits, requiring the interest to be calculated up to the thirty-first day of May each year rather than the thirtieth day of June. This interest must be credited to depositors’ accounts by the eighth day of June, after which it will accrue interest itself from the first day of June. The regulations also impose certain obligations on the parties involved. The Board of Directors and the Commission must prepare and submit the balance-sheet and the Auditor-General’s report to the Treasurer within the specified timeline. These entities must adhere to the forms prescribed by the Treasurer and ensure that all financial statements and reports are accurate and timely. Failure to comply with these requirements could lead to significant consequences. In terms of penalties and consequences, the regulations do not explicitly state the penalties for non-compliance. However, given the context of the National Security Act 1939-1940, any failure to adhere to these financial reporting requirements could potentially lead to severe repercussions, including criminal charges, substantial fines, or other legal consequences. The precise penalties would depend on the nature and extent of the non-compliance and the discretion of the court in interpreting the relevant sections of the National Security Act.