Norfolk Island Amendment Act 1988

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au C2004A03620 Not in force Act

Legislation content

Norfolk Island Amendment Act 1988

No. 27 of 1988

 

An Act to amend the Norfolk Island Act 1979

[Assented to 11 May 1988]

[Date of Commencement 8 June 1988]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title etc.

1. (1) This Act may be cited as the Norfolk Island Amendment Act 1988.

(2) In this Act, “Principal Act” means the Norfolk Island Act 19791.

Interpretation

2. Section 4 of the Principal Act is amended by inserting in subsection (1) the following definitions:

“ ‘accounts of the Territory’ means:

(a) the accounts and records of financial transactions of the Administration and records relating to assets of, or in the custody of, the Administration; and


(b) the accounts and records of financial transactions of a Territory authority (other than an authority whose accounts and records are required to be audited under an enactment) and records relating to assets of, or in the custody of, such an authority;

‘Auditor’ means the Norfolk Island Government Auditor appointed under section 51;”.

3. After section 50d of the Principal Act the following sections are inserted in Part VI:

Appointment of Norfolk Island Government Auditor

“51. Subject to section 51a, the Administrator shall, on the advice of the Legislative Assembly:

(a) appoint a person or firm to be the Norfolk Island Government Auditor; and

(b) determine the terms and conditions of employment (including remuneration) of the Auditor.

Restrictions on appointment of Auditor etc.

“51a. (1) The Administrator shall not appoint a person or firm under section 51 to be the Auditor unless the person, or at least one member of the firm, is, or is deemed to be, registered as an auditor (in this section called a ‘registered auditor’):

(a) under Division 2 of Part II of the Companies Act 1981; or

(b) under Division 3 of Part III of the Companies Act 1985 of the Territory.

“(2) The appointment of a firm as the Auditor shall be deemed to be an appointment of each member of the firm who, at the date of appointment, is a registered auditor.

“(3) Where a firm that has been appointed as the Auditor is reconstituted because of the death, retirement or withdrawal of a member or members or by reason of the admission of a new member or new members, or both:

(a) a person who was deemed under subsection (2) to be the Auditor and who has so died or retired or withdrawn from the firm as previously constituted shall be deemed to have resigned as the Auditor as from the day of that person’s death, retirement or withdrawal and, if that person was the only member of the firm who was a registered auditor and, after that person’s death, retirement or withdrawal, there is no member of the firm who is a registered auditor, the firm shall cease to hold office as the Auditor as from the day of that person’s death, retirement or withdrawal;

(b) a person who is a registered auditor and who is so admitted to the firm shall be deemed to have been appointed as the Auditor as from the day of that admission; and


(c) the reconstitution of the firm does not affect the appointment as Auditor of any continuing member of the firm who is a registered auditor.

“(4) Except as provided by subsection (3), upon the dissolution of a firm appointed as the Auditor:

(a) the firm ceases to hold office as the Auditor as from the day of dissolution; and

(b) each member of the firm who is deemed by subsection (2) or paragraph (3) (b) to have been appointed as the Auditor ceases to hold office as the Auditor as from the day of the dissolution.

Auditor-General may accept appointment

“51b. It is lawful for the Auditor-General for the Commonwealth to accept appointment as the Auditor.

Audit

“51c. (1) The Auditor shall, at least once in each year, inspect and audit the accounts of the Territory and shall draw the President’s attention to any irregularity disclosed by the inspection and audit that is, in the opinion of the Auditor, of sufficient importance to justify the Auditor so doing.

“(2) The Auditor may dispense with all or a part of the detailed inspection and audit of any accounts referred to in subsection (1).

“(3) The Auditor shall, at least once in each year, prepare, and give to the President and the Administrator, a report on the inspection and audit carried out under subsection (1).

Tabling of report etc.

“51d. (1) The President shall cause a copy of the Auditor’s report given to the President under subsection 51c (3) to be laid before the Legislative Assembly within 65 days after the day on which the President receives the report.

“(2) The Administrator shall, as soon as practicable after receiving the Auditor’s report under subsection 51c (3), forward the report to the Minister.

Access to documents

“51e. (1) The Auditor or a person authorised in writing by the Auditor is entitled at all reasonable times to full and free access to all accounts, records, documents and papers relating directly or indirectly to the receipt or payment of money by the Administration or a prescribed authority or to the acquisition, receipt, custody or disposal of assets by the Administration or a prescribed authority.

“(2) The Auditor or a person authorised in writing by the Auditor may make copies of, or take extracts from, any such accounts, records, documents or papers.


“(3) The Auditor or a person authorised in writing by the Auditor may require any person to furnish the Auditor with such information in the possession of that person or to which that person has access as the Auditor or authorised person considers necessary for the purposes of the powers and functions of the Auditor under this Act, and the person shall comply with the requirement.

“(4) A person who contravenes subsection (3) is guilty of an offence punishable, upon conviction, by a fine not exceeding $200.

“(5) In this section, ‘prescribed authority’ means a Territory authority whose accounts are not required to be audited under an enactment.

Auditor not subject to direction

“51f. Subject to section 51g, the Auditor is not, in the exercise of powers and the performance of functions under this Act, subject to the directions of the Minister, the Administrator, the Legislative Assembly or any member of the Legislative Assembly.

Auditing standards

“51g. (1) Subject to subsections (2) and (4), the Legislative Assembly may, by resolution, set the auditing standards to be complied with by the Auditor when inspecting and auditing the accounts of the Territory.

“(2) In setting the auditing standards under subsection (1) the Legislative Assembly shall have regard to:

(a) the auditing standards set by the Auditor-General under subsection 63mb (1) of the Audit Act 1901; and

(b) the auditing standards issued jointly by The Institute of Chartered Accountants in Australia and the Australian Society of Accountants.

“(3) The Legislative Assembly may amend or vary the standards set under subsection (1) and subsection (2) applies accordingly in relation to such amendment or variation.

“(4) Where the Auditor-General is appointed as the Auditor:

(a) the auditing standards set under subsection (1) do not apply to the Auditor-General; and

(b) the Auditor-General shall comply with the auditing standards set under subsection 63mb (1) of the Audit Act 1901 when inspecting and auditing the accounts of the Territory.”.

Repeal of section 63

4. (1) Section 63 of the Principal Act is repealed.

(2) Notwithstanding the repeal of section 63 of the Principal Act effected by subsection (1), where the Auditor-General had, before the commencement of this Act, commenced to inspect and audit the accounts of the Territory in relation to a particular financial year, section 63 of the Principal Act as in force immediately before the commencement of this section continues to apply to that inspection and audit.


NOTE

1. No. 25, 1979, as amended. For previous amendments, see No. 120, 1981; Statutory Rules No. 153, 1981 (as amended by Statutory Rules No. 33, 1984; and Statutory Rules No. 173, 1985); No. 26, 1982 (as amended by No. 80, 1982); No. 80, 1982; No. 39, 1983; No. 63, 1984; Nos. 65 and 193, 1985; and Nos. 76 and 168, 1986.

[Minister’s second reading speech made in—

House of Representatives on 24 February 1988

Senate on 24 March 1988]

Overview

The Norfolk Island Amendment Act 1988 was enacted to amend the Norfolk Island Act 1979, with the aim of enhancing the governance and financial oversight mechanisms on Norfolk Island. This Act was passed by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia, and it came into effect on 8 June 1988. One of the primary objectives of this amendment was to introduce more rigorous auditing standards and processes for the financial transactions of the Norfolk Island Administration and prescribed authorities. The Act established the appointment of a Norfolk Island Government Auditor, subject to certain conditions, and mandated that the Auditor-General for the Commonwealth could be appointed to this role. The Auditor is tasked with inspecting and auditing the financial accounts of the Territory at least once a year, reporting any irregularities to the President and preparing an annual report for the Legislative Assembly and the Administrator. The Legislative Assembly has the authority to set auditing standards, which should align with those set by the Auditor-General under the Audit Act 1901 and standards issued by professional accounting bodies in Australia. The Act also grants the Auditor broad access to financial records and documents to ensure thorough inspections and audits.

Scope and Application

The Norfolk Island Amendment Act 1988 amends the Norfolk Island Act 1979, introducing provisions concerning the appointment, powers, and functions of the Norfolk Island Government Auditor. This Act applies to the Norfolk Island Administration and any prescribed authorities on the island, ensuring the auditing of their financial transactions and asset records. The Auditor's role is to inspect and audit the accounts of the Territory at least once a year, identify any irregularities, and report these findings to the President and the Administrator. The President is then required to table the Auditor’s report before the Legislative Assembly within 65 days of receiving it, while the Administrator forwards the report to the Minister. The Auditor-General for the Commonwealth may also accept appointment as the Auditor, and while auditing standards may be set by the Legislative Assembly, these do not apply to the Auditor-General who must adhere to the standards set under the Audit Act 1901. The Act also includes provisions for the Auditor's access to relevant documents and information, and specifies that the Auditor is not subject to direction from the Minister, the Administrator, the Legislative Assembly, or any member of the Legislative Assembly, except as provided in the Act.

Key Provisions

The Norfolk Island Amendment Act 1988 primarily amends the Norfolk Island Act 1979 by introducing provisions related to the appointment, duties, and standards for the Norfolk Island Government Auditor. Section 51 of the Act mandates that the Administrator, on the advice of the Legislative Assembly, must appoint a person or firm as the Auditor and determine their terms and conditions of employment. The Auditor must be a registered auditor under either the Companies Act 1981 or the Companies Act 1985 of the Territory, as outlined in Section 51a. The Act further stipulates that if a firm is appointed and later reconstituted, the Auditor's appointment continues unless the firm ceases to have any registered auditors. The Auditor-General of the Commonwealth is also eligible for appointment under Section 51b. The Auditor's duties, detailed in Section 51c, include conducting an annual inspection and audit of the Territory's accounts and reporting any significant irregularities to the President. The Auditor may opt to partially or fully exempt certain accounts from detailed inspection and audit. The Auditor must submit an annual report to the President and the Administrator, which the President is required to table before the Legislative Assembly within 65 days of receipt (Section 51d). The Auditor is granted extensive access to financial records and documents under Section 51e, including the authority to compel information from individuals, with non-compliance being a punishable offence. The Auditor operates independently of the Minister, Administrator, Legislative Assembly, or any member of the Legislative Assembly, as stated in Section 51f. However, the Legislative Assembly has the power to set auditing standards, which must consider standards set by the Auditor-General and those issued by The Institute of Chartered Accountants in Australia and the Australian Society of Accountants, as per Section 51g. If the Auditor-General is appointed, they are exempt from these standards and must adhere to the standards set by the Auditor-General under the Audit Act 1901. Finally, Section 63 of the Principal Act is repealed, although it continues to apply to any ongoing inspections and audits commenced by the Auditor-General before the Act's commencement. Non-compliance with the Auditor's requirements to furnish information can result in a fine not exceeding $200, as stipulated in Section 51e(4).

Legal classification tags

Area of Law
Administrative Law
Auditing & Accountability
Instrument
Amending Act
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Licensing & Registration
Enforcement Powers
Access to Information

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.