EXPLANATORY STATEMENT
STATUTORY RULE 1985 NO. 23 ISSUED BY THE AUTHORITY OF THE MINISTER FOR COMMUNICATIONS
Section 79 of the Act provides that the Australian Telecommunications Commission (the Commission) shall not enter into a contract involving the payment or receipt by the Commission of an amount exceeding $500,000, or such higher amount as is prescribed by the regulations, without the approval of the Minister.
The number of contracts exceeding $500,000 in value has increased significantly since the commencement of the Act, owing to inflation and the growth of the Commission, and the Minister is now required to approve many contracts of a relatively minor nature. The Prime Minister, the Treasurer and the Minister for Finance have all agreed that the threshold should be increased from $500,000 to $2,000,000.
The proposed regulation provides for the insertion of a new regulation 42A into the Telecommunications Regulations. The new regulation provides that for the purpose of section 79, the prescribed amount is $2,000,000.