Treasury Regulations (Amendment)

Overview

The Statutory Rules 1940 No. 46, Regulations Under the Audit Act 1901-1934, were enacted by the Governor-General in Council to provide a framework for public tendering and contract awards for works, supplies, and services with an estimated cost exceeding two hundred pounds, ensuring transparency and accountability in government spending. This legislation was introduced to address the need for a standardised procedure for public tendering and to prevent the possibility of corruption and unfair practices in government procurement processes. The policy objective was to ensure that all government contracts for substantial works, supplies, and services are subjected to open competition, thereby promoting fairness and efficiency in public expenditure. The regulations also provided exceptions for certain works and supplies, including those executed at Commonwealth facilities or approved by specific boards, where public tendering might be deemed impracticable or inexpedient.

Scope and Application

The Statutory Rules 1940 No. 46, made under the Audit Act 1901-1934, provide regulations governing the public tendering process for certain works, supplies, and services within the Commonwealth of Australia. These regulations primarily apply to contracts whose estimated costs exceed two hundred pounds. However, there are specific exceptions to this rule, such as works executed at and supplies issued from Commonwealth offices, purchases for Australian coinage, and procurement processes approved by certain boards or departments. The regulation mandates that tenders must be publicly invited unless the Secretary of the Department of the Treasury or an authorized person certifies that inviting tenders is impracticable or inexpedient. These regulations are intended to ensure transparency and accountability in the procurement process while allowing flexibility in certain critical areas. The regulations extend across the Commonwealth and are subject to modifications through subordinate instruments, which may further define or refine the application of these rules.

Key Provisions

The main operative section of the Statutory Rules 1940, No. 46, which amends the Treasury Regulations, is Regulation 67 (subsection 1). This regulation stipulates that tenders must be publicly invited and contracts must be taken for all works, supplies, and services where the estimated cost exceeds two hundred pounds. However, this requirement does not apply to works, supplies, and services for which the expenditure is authorised by the Governor-General or in cases where the Secretary of the Department of the Treasury, or an authorised person, certifies that inviting tenders is impracticable or inexpedient. The specified exceptions include works executed at and supplies issued from Commonwealth or state government printing offices, factories, workshops, stores, or dockyards, silver, nickel, and bronze bullion purchased for Australian coinage, purchases made or approved by the Commonwealth Stores Supply and Tender Board, purchases made or approved by the Contract Board of the Department of Supply and Development, and works, supplies, and services for the Works and Services Branch of the Department of the Interior. The amended regulation imposes certain obligations on the parties involved. Firstly, for any works, supplies, or services exceeding two hundred pounds in cost, public tenders must be invited, and contracts must be awarded following this process. Secondly, the Secretary of the Department of the Treasury or an authorised person must certify the impracticability or inexpediency of inviting tenders in specific cases, such as those listed in the regulation. These certifications must be based on legitimate grounds and documented appropriately to ensure compliance with the regulation. There are no explicit offences, penalties, or civil/criminal consequences outlined in the Statutory Rules 1940, No. 46. However, non-compliance with the tendering process as specified in Regulation 67 could potentially lead to legal challenges or administrative penalties under the Audit Act 1901-1934 or other related legislation. While the regulation itself does not detail specific penalties, failure to adhere to the prescribed tendering procedures might result in the contract being deemed invalid or in other repercussions as determined by relevant authorities.