Naval Financial Regulations (Amendment)

Legislation au C1962L00022 Regulations Not in force Legislative Instrument

Legislation content

STATUTORY RULES.

1962. No. 22.

––––––

REGULATION UNDER THE NAVAL DEFENCE ACT 1910-1952.*

I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Naval Defence Act 1910-1952.

Dated this Fifth day of March, 1962.

DE L’ISLE

Governor-General.

By His Excellency’s Command,

Minister of State for the Navy.

————

AMENDMENT OF THE NAVAL FINANCIAL REGULATIONS.†

After regulation 132 of the Naval Financial Regulations the following regulation is inserted:—

Deductions from pay in respect of loss or damage caused by negligence or misconduct.

“132A.—(1.) Subject to the succeeding provisions of this regulation, where loss of money, stores or other property of the Commonwealth, or damage to any property of the Commonwealth, has occurred and the Naval Board, after due investigation, is satisfied that the loss or damage was caused, or contributed to, by the negligence or misconduct of a member, the Naval Board may order that such sum, not exceeding Fifty pounds, as is specified in the order be recovered from him, as or towards reimbursement of the Commonwealth for the loss or damage, by means of such deductions as are specified in the order, from moneys that are or become due to him by the Commonwealth in respect of his service, and the sum so directed to be recovered, less the amount of any payment made by the member on account of that sum, may be recovered by deductions accordingly.

“(2.) In a case where the negligence or misconduct of the member was not the sole cause of the loss or damage, the sum specified in the order shall not exceed such amount as the Naval Board considers just and equitable, having regard to the member’s share of responsibility for the loss or damage.

“(3.) The Naval Board shall not under this regulation direct the deduction from the pay and allowances payable periodically to a member during his service of an amount that exceeds one-half of his active pay.

 

* Notified in the Commonwealth Gazette on 15th March,1962.

† Statutory Rules 1956, No. 88, as amended by Statutory Rules 1957, Nos. 27, 32, 68 and 77; 1958, Nos. 25, 45 and 76; 1959, Nos. 66 and 90; 1960, No. 53; and 1961, Nos. 5, 12. 24, 33, 45, 78, 90, 96 and

9530/61.—PRICE 3D. 16/26.1.1962.


“(4.) An order shall not be made under this regulation unless the member concerned has been notified that it is proposed to make such an order and of the reason for the proposal and has been given an opportunity to show any reason why the order should not be made.

“(5.) An order shall not be made under this regulation if, in proceedings before a naval tribunal, the tribunal—

(a) has acquitted the member in circumstances involving a finding that he was not guilty of the misconduct or negligence in question; or

(b) has ordered him to pay any sum of money by way of compensation to the Commonwealth in respect of the loss or damage in question or for making good that loss or damage,

but, otherwise, the fact that any such proceedings have been brought in respect of that misconduct or negligence does not prevent the making of an order under this regulation.

“(6.) The powers and functions conferred on the Naval Board by the preceding provisions of this regulation may be exercised and performed by an officer authorized by the Naval Board to exercise and perform those powers and functions either generally or in the particular case.

“(7.) Where an order under this regulation is made by an authorized officer, the Naval Board shall, upon an application by the member concerned made within twenty-one days after the making of the order or such further period as the Naval Board allows, review the matter and may—

(a) confirm the order;

(b) cancel the order; or

(c) vary the order so that a lesser sum is recoverable by the Commonwealth from the member.

“(8.) If a member is aggrieved by an order under this regulation, whether or not varied under the last preceding sub-regulation, he may, within three months after the making of the order or the decision of the Naval Board on a review, appeal to the Governor-General, who shall, after such investigation as he considers appropriate—

(a) confirm the order or the order as varied, as the case may be;

(b) cancel the order; or

(c) vary the order, or the order as previously varied, so that a lesser sum is recoverable by the Commonwealth from the member.

“(9.) Where any sum is recovered from a person in accordance with this regulation in respect of any loss or damage, the liability of that person to the Commonwealth in respect of that loss or damage is reduced by that sum.

“(10.) In this regulation—

(a) a reference to loss of money of the Commonwealth does not include the making of a payment by the Commonwealth by way of damages or compensation; and


(b) ‘naval tribunal’ means a court-martial, a disciplinary court or an officer exercising power to try summarily and punish an offence against naval law.

“(11.) Subject to sub-regulation (9.) of this regulation, nothing contained in, or done under, this regulation affects any right or remedy of the Commonwealth apart from this regulation.

“(12.) The provisions of this regulation have full force and effect notwithstanding the provisions of any other regulation made under the Naval Defence Act 1910-1952 or of the Queen’s Regulations and Admiralty Instructions in their application to the Naval Forces.”.

—————————

By Authority: A. J. ARTHUR, Commonwealth Government Printer, Canberra.

Overview

The Statutory Rules 1962 No. 22, made under the Naval Defence Act 1910-1952, address the issue of financial responsibility for loss or damage caused by negligence or misconduct by members of the naval forces. Enacted by the Governor-General in Council, the regulation provides a mechanism for the Naval Board to recover sums from naval personnel responsible for such losses. The primary objective is to ensure that the Commonwealth is reimbursed for financial losses arising from the negligence or misconduct of its members, while also considering the member's share of responsibility in cases where multiple causes contribute to the loss or damage. This regulation allows for deductions from the member's pay, subject to certain conditions and procedural safeguards, ensuring that the process is fair and just.

Scope and Application

The Naval Financial Regulations, as amended, govern the financial conduct and obligations of members within the Naval Forces of Australia. These regulations apply to any member of the Naval Forces who is found to have caused, or contributed to, the loss of money, stores, or other property of the Commonwealth, or damage to Commonwealth property, through negligence or misconduct. Specifically, the regulation allows the Naval Board to order deductions from the member's pay to reimburse the Commonwealth for any losses or damages up to a specified limit. The regulation also includes provisions for notifying the member of the proposed deduction, allowing them to present their case, and providing avenues for review and appeal. Notably, the regulation does not permit deductions exceeding half of the member's active pay and it does not apply if the member has already been ordered to compensate the Commonwealth or acquitted in a naval tribunal. The regulations have national jurisdiction and apply throughout the Commonwealth of Australia, extending the reach of the Naval Defence Act 1910-1952.

Key Provisions

The main operative sections of this legislative instrument (Statutory Rules 1962, No. 22) introduce new regulation 132A into the Naval Financial Regulations under the Naval Defence Act 1910-1952. Regulation 132A outlines the process for recovering losses or damages caused by negligence or misconduct from a member’s pay. Specifically, it allows the Naval Board to order deductions from a member’s pay if they are found to be negligent or misconducted, up to a limit of Fifty pounds (section 132A(1)). The amount deducted must be deemed just and equitable if the member’s negligence or misconduct was not the sole cause of the loss or damage (section 132A(2)). Furthermore, the deduction cannot exceed half of the member’s active pay (section 132A(3)). The Act imposes several obligations and requirements on the parties involved. Firstly, the Naval Board must conduct a due investigation before deciding on the deduction of pay. The member must be notified of the proposed order and given an opportunity to provide reasons why the order should not be made (section 132A(4)). Moreover, if the member is acquitted in naval tribunal proceedings or ordered to pay compensation, no deduction can be made (section 132A(5)). The Naval Board has the flexibility to delegate its powers to authorized officers, who can make orders and review them upon the member’s application (section 132A(6) and (7)). The member also has the right to appeal to the Governor-General if they are aggrieved by the order or its variation (section 132A(8)). Breaches of the provisions outlined in this regulation can lead to civil consequences, primarily through the deduction of pay. If the member is found to have caused loss or damage due to negligence or misconduct, the sum recovered from their pay reduces their liability to the Commonwealth (section 132A(9)). However, the regulation explicitly states that it does not affect any other rights or remedies the Commonwealth may have outside of this regulation (section 132A(11)). Failure to comply with the regulation or its directives could result in disputes or further legal actions, although specific penalties for non-compliance are not outlined in the regulation itself. The regulation ensures its provisions have full force and effect, even if they conflict with other existing regulations or instructions (section 132A(12)).

Legal classification tags

Area of Law
Defence Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Offence Provisions
Enforcement Powers

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.