Public Service Regulations (Amendment)

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EXPLANATORY STATEMENT

STATUTORY RULES 1986 NO 369

PUBLIC SERVICE REGULATIONS (AMENDMENT)

Issued with the authority of the Public Service Board

Paragraph 97(1)(k) of the Public Service Act 1922 (‘the Act’) provides that the Public Service Board may, with the approval of the Governor-General, make regulations prescribing all matters which are required or permitted to be prescribed or which are necessary or convenient to be prescribed for regulating the duties and conduct of officers.

Sub-section 33(3) of the Acts Interpretation Act 1901 provides (inter alia) that where an Act confers a power to make regulations, the power shall, unless the contrary intention appears, be construed as including a power to repeal those regulations.

These statutory rules amended Regulations 37 and 39 and repealed Regulation 40 of the Public Service Regulations and were made following the Board’s consideration of a report of a sub-committee of the Joint Council of the Australian Public Service, a union-management consultative body.

The previous Regulation 37 prohibited the solicitation or acceptance of gifts except in very limited circumstances. However the regulation presented difficulties for officers in situations where refusal of a gift would be an embarrassment or severe affront to the donor or where retention by the officer would be unobjectionable. The amended Regulation stipulates that:

 officers are prohibited from taking advantage of their functions to solicit gifts and benefits;

 where an officer, in the course of duty, is offered or presented with a gift, that officer may accept the gift with the Secretary’s written approval;

 the Secretary may exempt classes of gifts and/or officers from the requirement of written approval.

Regulation 39 previously prohibited borrowing between officers. The amended Regulation clarifies and widens this prohibition.

In the amended Regulation 39 the intention of the first sub-regulation is to prohibit officers from taking advantage of opportunities which arise in carrying out their duties, or of their status as an officer, to influence anyone to enter a financial or similar transaction.


The intention of the second sub-regulation is to prohibit an officer from influencing another officer’s performance of their functions by offering gifts or entering a financial arrangement with the other officer.

The Regulation does not prohibit loans between officers as an ordinary favour between friends, or as a profit-motivated arrangement provided it is unconnected with duties and there is no implication of influence.

In legislation at present before the Parliament it is proposed that section 63U of the Act be repealed. This section requires an officer to report becoming bankrupt to the Chief Officer.

The former Regulation 40 required notification of an officer’s bankruptcy by a Chief Officer to the Public Service Board. This requirement is no longer relevant therefore the Regulation was repealed.

Overview

The Public Service Regulations (Amendment) Statutory Rules 1986 were enacted to address specific issues in the conduct and duties of public service officers in Australia. These regulations amend and repeal certain sections of the Public Service Regulations under the authority of the Public Service Act 1922. The amendments were made following a report from a sub-committee of the Joint Council of the Australian Public Service, which is a consultative body involving both union and management representatives. Regulation 37, which previously had strict prohibitions on the acceptance of gifts, was amended to allow officers to accept gifts with written approval from the Secretary, provided that taking the gift would not be an embarrassment or severe affront to the donor. Regulation 39, concerning borrowing between officers, was clarified and expanded to prohibit officers from leveraging their position to influence financial transactions or other arrangements. Regulation 40, which required notification of an officer's bankruptcy to the Public Service Board, was repealed due to its redundancy in light of pending legislative changes.

Scope and Application

The Public Service Regulations (Amendment) Statutory Rules 1986 No 369 amends and repeals certain regulations under the Public Service Act 1922. The regulations apply to officers within the Commonwealth public service, including both permanent and temporary employees, and cover their duties and conduct. The regulations have a national jurisdictional reach as they pertain to the Commonwealth public service. The amendments to Regulation 37 address the acceptance of gifts and benefits by officers, allowing acceptance with written approval from the Secretary, and permitting exemptions for certain classes of gifts or officers. Regulation 39 is amended to clarify and widen the prohibition on borrowing between officers, specifically prohibiting officers from using their status or duties to influence financial transactions or offer gifts with the intention of affecting another officer's performance. Notably, the regulations do not prohibit loans between officers if they occur as ordinary favours or profit-motivated arrangements unrelated to duties. Regulation 40, which required notification of an officer’s bankruptcy to the Public Service Board by a Chief Officer, has been repealed as it is no longer relevant. These changes reflect the Board’s consideration of a report from the Joint Council of the Australian Public Service, aiming to address practical difficulties faced by officers while maintaining ethical standards.

Key Provisions

The Public Service Regulations (Amendment) Statutory Rules 2004, issued under the authority of the Public Service Board and approved by the Governor-General, make several amendments and a repeal to the Public Service Regulations. Regulation 37, which previously prohibited officers from soliciting or accepting gifts except in very limited circumstances, now provides that officers are prohibited from taking advantage of their functions to solicit gifts and benefits. It also allows officers to accept gifts offered or presented in the course of duty, provided they obtain the Secretary’s written approval. The Secretary has the authority to exempt certain classes of gifts and/or officers from the requirement of written approval. Regulation 39, which originally prohibited borrowing between officers, is amended to more clearly prohibit officers from using their position or duties to influence financial transactions or arrangements with other officers. The amendment specifies that this prohibition does not apply to ordinary loans made as a favour between friends or in the context of a profit-motivated arrangement, provided it is not connected with duties and there is no implication of influence. Under the amended regulations, officers are required to adhere to strict standards of conduct to avoid any potential conflicts of interest or perceptions of impropriety. They must refrain from soliciting gifts or benefits and must seek and obtain written approval from the Secretary before accepting any gifts presented in the course of duty. Officers must also avoid using their position or status to influence financial transactions or arrangements with other officers, unless it is a genuine favour or profit-motivated arrangement unrelated to their duties. The Secretary’s ability to exempt certain gifts or classes of officers from the written approval requirement provides some flexibility, but officers must still demonstrate compliance with the spirit and intent of the regulation. Failure to comply with the amended regulations may result in disciplinary action, including potential termination of employment. The specific consequences for breach are not detailed in the explanatory statement, but the Public Service Act 1922 and other relevant legislation likely provide for a range of disciplinary measures. The Public Service Regulations themselves do not specify penalties for breaches, but breaches of the Public Service Act or other related legislation can result in fines, imprisonment, or other penalties as determined by the relevant court. In summary, the amended regulations impose clear requirements on officers to maintain high standards of integrity and avoid any actions that could be perceived as improper or influenced by personal gain. Compliance with these regulations is essential to uphold the public service’s reputation and ensure that officers act in the best interests of the public.

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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.