EXPLANATORY STATEMENT
STATUTORY RULE 1985 No. 323 ISSUED BY THE AUTHORITY OF THE MINISTER FOR COMMUNICATIONS
Section 80 of the Overseas Telecommunications Act 1946 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which by the Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
Sub-section 38(2) provides that the Overseas Telecommunications Commission (the Commission) shall not acquire any property, right or privilege for consideration exceeding $100,000, or if a higher amount is prescribed, that higher amount, without the approval of the Minister.
Regulation 13A of the Overseas Telecommunications Commission Regulations (the Principal Regulations) provides that for the purposes of sub-section 38(2) of the Act, the prescribed amount is $500,000.
The Commission’s prescribed amount of $500,000 has not been amended since 1973. Inflation and the increase in the activity of the Commission from that time have rendered the existing contract threshold innappropriate. An increase in this threshold to $2,000,000 is consistent with the level of contract approval granted to the Australian Telecommunications Commission.
The Overseas Telecommunications Commission Regulations (Amendment) amends Regulation 13A to provide an increase in the contract approval threshold from $500,000 to $2,000,000.
Overview
The Overseas Telecommunications Commission Regulations (Amendment) Statutory Rule 1985 No. 323, issued under the authority of the Minister for Communications, was enacted to address the outdated contract approval threshold within the Overseas Telecommunications Act 1946. This legislation seeks to rectify the issue of the existing $500,000 contract approval threshold, which has not been amended since 1973, and therefore does not adequately reflect the current economic landscape and the increased activity of the Overseas Telecommunications Commission. The policy objective is to align the contract approval threshold with that of the Australian Telecommunications Commission, ensuring that the Overseas Telecommunications Commission can effectively manage its operations within the modern regulatory environment.
The Overseas Telecommunications Commission Regulations (Amendment) Statutory Rule 1985 No. 323 amends Regulation 13A of the Overseas Telecommunications Commission Regulations to increase the contract approval threshold from $500,000 to $2,000,000, thereby addressing the identified gap and ensuring the continued effectiveness and relevance of the regulatory framework governing overseas telecommunications.
Scope and Application
The Overseas Telecommunications Act 1946 applies to the Overseas Telecommunications Commission, which is tasked with various responsibilities related to telecommunications outside Australia. Specifically, this Act governs the Commission's ability to acquire property, rights, or privileges for consideration, with a stipulated threshold that necessitates ministerial approval. Regulation 13A of the Overseas Telecommunications Commission Regulations further defines these thresholds, originally set at $500,000, a figure that has remained unchanged since 1973. Given inflation and increased activity over the years, the threshold has been revised upwards to $2,000,000 to align with the standards applicable to the Australian Telecommunications Commission. This amendment ensures the Commission can operate effectively within modern economic conditions while maintaining the necessary oversight over its financial commitments. The regulation applies nationally and is subject to further modification through subordinate instruments as needed to adapt to changing circumstances.
Key Provisions
The main operative sections of this statutory rule, which amends the Overseas Telecommunications Commission Regulations, pertain to Regulation 13A (subsection 38(2) of the Overseas Telecommunications Act 1946). Regulation 13A sets the threshold amount for the approval of the Minister before the Overseas Telecommunications Commission (the Commission) can acquire any property, right or privilege for consideration. Currently, this threshold is set at $500,000; however, this amendment increases it to $2,000,000 (section 3). This change responds to the economic conditions since the threshold was last set in 1973, aiming to align it with the current level of contract approval granted to the Australian Telecommunications Commission.
The amendment imposes specific obligations and requirements on the Commission. Firstly, it mandates that the Commission must obtain the approval of the Minister before acquiring any property, right, or privilege for a consideration amount exceeding the new threshold of $2,000,000 (section 3). This requirement ensures that significant financial decisions are overseen and approved by a higher authority, maintaining accountability and control over substantial transactions. Additionally, the amendment requires the Commission to adhere to this new threshold in all its dealings, ensuring consistency in the application of the regulation.
Breach of the provisions outlined in this statutory rule can lead to various consequences. If the Commission fails to obtain the required ministerial approval for transactions exceeding the new threshold, it may be in non-compliance with the Overseas Telecommunications Act 1946. Such non-compliance could potentially lead to legal challenges, financial penalties, or other sanctions as determined by relevant authorities. Additionally, individuals within the Commission who authorise or facilitate non-compliant transactions could face disciplinary actions, including possible termination of employment. The exact penalties for such breaches are not specified in this statutory rule but would be governed by the overarching Act and other applicable regulations.