Commonwealth Consolidated Acts Commonwealth Consolidated ActsReader's Guide
This Guide aims to give you a general overview of the matters covered by this Act. It also gives you some information about the way this Act is organised.
Overview of this Act
The rules in this Act apply to Commonwealth authorities and Commonwealth companies. Commonwealth authority is defined in section 7. Commonwealth company is defined in section 34.
This Act regulates certain aspects of the financial affairs of Commonwealth authorities. In particular, it has detailed rules about reporting and accountability. This Act also deals with other matters relating to Commonwealth authorities, such as banking and investment and the conduct of officers.
For Commonwealth companies, this Act has reporting requirements and other requirements that apply in addition to the requirements of the Corporations Act 2001 .
Summary of this Act
Part 1 Preliminary : This Part deals with the commencement of this Act, its application to things outside Australia and its application to the Crown.
Part 2 General provisions about definitions, offences and civil penalties : This Part contains definitions of terms that are frequently used throughout this Act and general provisions about offences and civil penalty provisions. Schedule 2 sets out the civil and criminal consequences of contravening a civil penalty provision.
Part 3 Reporting and other obligations for Commonwealth authorities : This Part sets out reporting and accountability rules for Commonwealth authorities. It also deals with matters such as banking, investment and the conduct of officers. Schedule 1 deals with the content of the annual report, financial statements and auditor's report.
Part 3A Interjurisdictional authorities : This Part sets out that the regulations may prescribe a Commonwealth authority to be an interjurisdictional authority. An interjurisdictional authority involves, jointly, the Commonwealth and participating State and/or Territory jurisdictions in the governance of that authority. This Part also provides that the regulations may set out the obligations of officers of an interjurisdictional authority.
Part 4 Reporting and other obligations for Commonwealth companies : This Part sets out reporting and other rules for Commonwealth companies. These requirements are additional to those that apply under the Corporations Act 2001 .
Part 5 Miscellaneous : This Part deals with miscellaneous matters such as Finance Minister's Orders, regulations and delegations.
Related legislation
The following Acts are directly relevant to the operation or interpretation of this Act.
The Annual Appropriation Acts appropriate money out of the Consolidated Revenue Fund, including monies to be paid directly to CAC Act bodies by the relevant portfolio Departments.
The Auditor-General Act 1997 establishes the Office of Auditor-General and sets out the functions of the Auditor-General.
The Acts Interpretation Act 1901 contains many general rules about the meaning or effect of many terms and provisions that are commonly used in Commonwealth Acts.
The main purpose of the Financial Management and Accountability Act 1997 is to establish a framework for the proper management of public money and public property (broadly, money or property that is owned or held by the Commonwealth). Public money and public property is usually handled by Departments and other Agencies on behalf of the Commonwealth.
This list is not exhaustive. Acts other than those listed above might also affect the operation or interpretation of this Act.
Contents
1............ Short title [ see Note 1] ........................................................................ 1
2............ Commencement [ see Note 1] .............................................................. 1
3............ This Act binds the Crown ................................................................... 1
4............ This Act extends to things outside Australia ....................................... 1
Part 2--General provisions about definitions, offences and civil penalties 2
5............ Definitions .......................................................................................... 2
6............ Civil penalties ...................................................................................... 5
Part 3--Reporting and other obligations for Commonwealth authorities 6
7............ Meaning of Commonwealth authority ................................................ 6
8............ Role of Auditor-General ..................................................................... 6
Division 2--Reporting obligations 8
Subdivision A--Annual report and related obligations 8
9............ Directors must prepare annual report .................................................. 8
10.......... Modified requirements for first year of existence ................................ 8
11.......... Contravention of annual report rules by directors ............................... 8
12.......... Audit of relevant subsidiary's financial statements ............................. 9
Subdivision B--Other reporting obligations 10
13.......... Interim reports ................................................................................... 10
14.......... Estimates ........................................................................................... 11
15.......... Responsible Minister to be notified of significant events .................. 11
16.......... Keeping responsible Minister and Finance Minister informed .......... 12
17.......... Corporate plan for GBE .................................................................... 12
Division 3--Banking, investment etc. 14
18.......... Banking and investment (authorities other than GBEs and SMAs) .. 14
19.......... Banking and investment (GBEs and SMAs) .................................... 14
20.......... Accounting records ........................................................................... 15
Division 4--Conduct of officers 17
21.......... Background to duties of directors, other officers and employees ...... 17
Subdivision A--General duties 17
22.......... Care and diligence--civil obligation only .......................................... 17
23.......... Good faith--civil obligations ............................................................ 18
24.......... Use of position--civil obligations ..................................................... 19
25.......... Use of information--civil obligations ............................................... 19
26.......... Good faith, use of position and use of information--criminal offences 20
27A....... Compliance with statutory and other duties ....................................... 21
27B....... Interaction of sections 22 to 26 with other laws etc. .......................... 21
27C....... Disqualification order for contravention of civil penalty provision ... 22
27D....... Reliance on information or advice provided by others ...................... 23
27E........ Responsibility for actions of directors delegate ................................. 24
Subdivision B--Disclosure of, and voting on matters involving, material personal interests 24
27F........ Material personal interest--director's duty to disclose ...................... 24
27G....... Director may give other directors standing notice about an interest ... 26
27H....... Interaction of sections 27F and 27G with other laws etc. .................. 27
27J........ Restrictions on voting ....................................................................... 28
27K....... Minister's power to make declarations and class orders ................... 29
27L........ Right of access to authority's books ................................................. 30
Division 4A--Restrictions on indemnities and insurance for officers 31
27M...... Indemnification and exemption of officer .......................................... 31
27N....... Insurance for certain liabilities of officers ......................................... 32
27P........ Certain indemnities, exemptions, payments and agreements not authorised and certain documents void 33
28.......... Compliance with General Policy Orders ........................................... 34
28A....... Credit cards and credit vouchers ....................................................... 34
28B....... Misuse of credit cards or credit vouchers--criminal offence ............ 35
29.......... Activities of subsidiaries ................................................................... 35
30.......... Aligning accounting periods of subsidiaries ..................................... 35
31.......... Exemption from requirement to align accounting periods of subsidiaries 36
32.......... Audit committee ................................................................................ 37
33.......... Special rules for Commonwealth authorities established by regulations etc. 37
Part 3A--Interjurisdictional authorities 38
33A....... Interjurisdictional authorities ............................................................. 38
Part 4--Reporting and other obligations for Commonwealth companies 39
34.......... Meaning of Commonwealth company, wholly-owned Commonwealth company and related terms 39
35.......... Role of Auditor-General ................................................................... 40
Division 2--Reporting obligations 41
Subdivision A--Annual report and related obligations 41
36.......... Annual Report ................................................................................... 41
37.......... Audit of relevant subsidiary's financial statements ........................... 42
Subdivision B--Other reporting obligations 43
38.......... Interim reports ................................................................................... 43
39.......... Estimates ........................................................................................... 44
40.......... Responsible Minister to be notified of significant events .................. 44
41.......... Keeping responsible Minister and Finance Minister informed .......... 44
42.......... Corporate plan for GBE .................................................................... 45
Subdivision C--Miscellaneous 46
43.......... Compliance with General Policy Orders ........................................... 46
44.......... Audit committee ................................................................................ 46
46.......... Companies conducted for the purposes of intelligence or security agencies 47
47.......... Regulations may deal with how this Act applies if body stops being a Commonwealth authority 47
47A....... Compliance with government procurement requirements .................. 47
48.......... Finance Minister's Orders ................................................................ 48
48A....... General Policy Orders ....................................................................... 48
48B....... Delegation by Minister ...................................................................... 50
49.......... Regulations ....................................................................................... 50
Schedule 1--Annual report for Commonwealth Authority 52
Part 1--Contents of annual report 52
1............ Summary of contents ........................................................................ 52
2............ Financial statements .......................................................................... 52
Part 2--Auditor's report on financial statements 53
3............ Whether the statements comply with the Finance Minister's Orders . 53
4............ Proper accounting records not kept ................................................... 53
5............ Inadequate information and explanations .......................................... 53
6............ Subsidiaries' financial statements ...................................................... 53
7............ Deficiencies in consolidation ............................................................. 54
Schedule 2--Civil consequences of contravening civil penalty provisions 55
1............ Declarations of contravention ............................................................ 55
2............ Declaration of contravention is conclusive evidence ......................... 55
3............ Pecuniary penalty orders ................................................................... 56
4............ Compensation orders ........................................................................ 56
5............ Effect of clause 4 ............................................................................... 57
6............ Who may apply for a declaration or order ......................................... 57
7............ Time limit for application for a declaration or order .......................... 58
8............ Civil evidence and procedure rules for declarations of contravention and civil penalty orders 58
9............ Civil proceedings after criminal proceedings ..................................... 58
10.......... Criminal proceedings during civil proceedings ................................. 58
11.......... Criminal proceedings after civil proceedings ..................................... 59
12.......... Evidence given in proceedings for penalty not admissible in criminal proceedings 59
13.......... Finance Minister requiring person to assist ....................................... 59
14.......... Relief from liability for contravention of civil penalty provision ....... 61
15.......... Power to grant relief .......................................................................... 62
Schedule 3--Application, transitional and savings provisions 63
1............ Meaning of commencement , new Law and old Law ......................... 63
2............ References to provisions of old Law in laws and other documents ... 63
3............ Conduct of officers ........................................................................... 63
4............ Contraventions of, and offences against, civil penalty provisions ..... 64
5............ Civil penalty orders made under old Law .......................................... 65