Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The Finance Minister must, in consultation with the Joint Committee of Public Accounts and Audit, cause an independent review to be conducted of the operation of this Act and the rules.
(2) The review must be conducted as soon as practicable after the end of 3 years after this section commences.
(3) The persons who conduct the review must give the Finance Minister a written report of the review.
(4) The Finance Minister must cause copies of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Finance Minister.
Overview
This Act is mainly about the governance, performance and accountability o f Commonwealth entities.
• the use and management of public resources by the Commonwealth and Commonwealth entities ; and
• the accountability of Commonwealth companies .
Many of the terms in this Act are defined. The Dictionary in section 8 contains a list of every term that is defined in this Act.
Chapter 2--Commonwealth entities and the Commonwealth
Part 2 - 1-- Core provisions for Chapter 2
Part 2 - 1 has the core provisions for Chapter 2 (which is mainly about Commonwealth entities but does have some provisions relating to the Commonwealth specifically ) . It:
• defines what a Commonwealth entity is (see section 10 ); and
• defines what the 2 types of Commonwealth entities--corporate Commonwealth entities and non - corporate Commonwealth entities --are (see section 11 ); and
• defines w ho the accountable authority of the entity is (see section 12 ); and
• defines who the officials of the entity are (see section 13 ).
Part 2 - 2--Accountable authorities and officials
Part 2 - 2 is about the accountable authorities and officials of Commonwealth entities. It mainly deals with the general duties that are imposed on accountable authorities and officials.
Part 2 - 3--Planning, performance and accountability
Part 2 - 3 is about planning by, and performance and accountability of, Commonwealth entities. It requires the accountable authority of a Commonwealth entity:
• to prepare a corporate plan, and budget estimates, for the entity; and
• to measure and assess the performance of the entity, and prepare annual performance statement s for the entity; and
• to prepare annual financial statements for the entity; and
• to prepare an annual report for the entity.
It also requires the Finance Minister to publish monthly financial reports and table annual consolidated statements in the Parliament .
Part 2 - 4--Use and management of public resources
Part 2 - 4 is about the use and management of public resources by the Commonwealth and Commonwealth entities. It deals with:
• banking , borrowing, investments, indemnities, guarantees and warranties by the Commonwealth and corporate Commonwealth entities , and insurance obtained by corporate Commonwealth entities ; and
• waiver s , set - off s and act of gra ce payments by the Commonwealth.
It also has special provisions that apply to Ministers or officials of non - corporate Commonwealth entities (for example in relation to making gifts and liability for loss ).
Part 2 - 5 has some specific provisions relating to appropriations of the CRF. In particular, it deals with special accounts.
Part 2 - 6--Cooperating with other jurisdictions
Part 2 - 6 is about the Commonwealth and Commonwealth entities cooperating with the States and Territories. It allows the rules to prescribe situations where the accountable authority of a Commonwealth entity is required to share information with the States and Territories. It also prohibits the Commonwealth from preventing State or Territory Auditors - General from conducting audits in certain situations.
Part 2 - 7--Companies, subsidiaries and new corporate Commonwealth entities
Part 2 - 7 has provisions relating to the Commonwealth's involvement in companies, the responsibility of corporate Commonwealth entities for their subsidiaries, and the creation of new corporate Commonwealth entities.
Chapter 3 -- Commonwealth companies
Part 3 - 1 has the core provisions for Chapter 3 (which is about Commonwealth companies). It:
• defines what a Commonwealth company is (see subsection 89 ( 1 )); and
• defines what a wholly - owned Commonwealth company is (see section 90 ).
It also has some requirements that apply to the directors of wholly - owned Commonwealth compan ies .
Part 3 - 2 -- Planning and accountability
Part 3 - 2 is about planning by, and the accountability of, Commonwealth companies. It requires the directors of a Commonwealth company:
• to prepare a corporate plan and, in the case of a wholly - owned Commonwealth company, budget estimates for the company ; and
• to pr epare an annual report for the company.
Chapter 4 --Rules , delegations and independent review
Part 4 - 1--The rules
Part 4 - 1 is about the rules . It provides the general power to make the rules and provides additional matters in relation to which rules can be made.
Part 4 - 2 is about delegations. It sets out when the Finance Minister, the Treasurer, the Finance Secretary and the accountable authority of a non - corporate Commonwealth entity may delegate a power, function or duty under this Act or the rules.
Part 4 - 3--Independent review
Part 4 - 3 requires the Finance Minister, in consultation with the Joint Committee of Public Accounts and Audit, to conduct an independent review of the operation of this Act and the rules.
This Part is about the terms that are defined in this Act.
Division 2 has the Dictionary (see section 8 ). The Dictionary is a list of every term that is defined in this Act. A term will either be defined in the Dictionary itself, or in another provision of this Act. If another provision defines the term, the Dictionary will have a signpost to that definition.
This Part has the core provisions for this Chapter, which is mainly about Commonwealth entities . (For Commonwealth companies, see Chapter 3.)
It :
• defines what a Commonwealth entity is (see section 10 ) ; and
• defines what the 2 types of Commonwealth entities--corporate Commonwealth entities and non - corporate Commonwealth entities --are (see section 11 ); and
• defines who the accountable authority of the entity is (see section 12 ); and
• defines who the officials of the entity are (see section 13 ).
This Part is about the accountable authorities and officials of Commonwealth entities.
Accountable authorities
There are general duties that apply to all accountable authorities. Those duties are set out in sections 15 to 19.
Accountable authorities may give instructions to officials under section 20A. Those instructions are part of the finance law.
In relation to whether accountable authorities must apply government policy, different requirements apply depending on whether the entity is a non - corporate Commonwealth entity (see section 21) or a corporate Commonwealth entity (see section 22).
The accountable authorities of non - corporate Commonwealth entities have power to enter into arrangements, and approve commitments of relevant money, on behalf of the Commonwealth (see section 23).
There are general duties that apply to all officials. Those duties are set out in sections 25 to 29.
If an official who is the accountable authority, or a member of the accountable authority, of a corporate Commonwealth entity contravenes those duties, the official's appointment may be terminated (see section 30).
This Part is about planning by , and performance and accountability of , Commonwealth entities .
Division 2 is about planning and budgeting. It requires the accountable authority of a Commonwealth entity to prepare a corporate plan, and budget estimates, for the entity.
Division 3 is about the performance of Commonwealth entities. It requires the accountable authority of a Commonwealth entity:
• to cause records to be kept about the entity's performance; and
• to measure and assess the entity's performance; and
• to prepare annual performance statement s about the entity's performance for inclusion in the entity's annual report .
Division 4 is about financial reporting and auditing for Commonwealth entities. It requires the accountable authority of a Commonwealth entity:
• to cause accounts and records to be kept about the entity's transactions and financial position; and
• to prepare annual financial statements for the entity for inclusion in the entity's annual report .
It also requires the Auditor - General to audit those annual financial statements.
Division 5 requires the accountable authority of a Commonwealth entity to ensure that the entity has an audit committee.
Division 6 requires the accountable authority of a Commonwealth entity to prepare annual reports for the entity.
Division 7 is about Australian Government financial reporting by the Finance Minister. It requires the Finance Minister to publish monthly financial reports and table annual consolidated statements in the Parliament . It also requires the Auditor - General to audit those annual consolidated statements.
This Part is about the use and management of public resources by the Commonwealth and Commonwealth entities.
Many of the provisions in this Part apply to either the Commonwealth or corporate Commonwealth entities, and do not expressly refer to non - corporate Commonwealth entities. This is because non - corporate Commonwealth entities are legally part of the Commonwealth . Generally, the Finance Minister has the power to act on behalf of the Commonwealth for the purposes of the provisions of this Part .
Division 2 allows the Finance Minister to make available to Commonwealth entities amounts that have been appropriated by the Parliament for the entity. It also allows the rules to prescribe matters relating to the commitment or expenditure of relevant money by the Commonwealth or Commonwealth entities.
Division 3 is about banking for the Commonwealth and corporate Commonwealth entities. It also has requirements about how Ministers and officials are to deal with relevant money that they receive.
Division 4 is about borrowing by the Commonwealth and corporate Commonwealth entities.
Division 5 is about investment by the Commonwealth and corporate Commonwealth entities.
Division 6 is about indemnities, guarantees and warranties by the Commonwealth and corporate Commonwealth entities, and insurance obtained by corporate Commonwealth entities.
Division 7 is about the Commonwealth. It deals with the Commonwealth:
• waiving amounts ow ed to it ; and
• setting off amounts owed to , or by , it against another amount that is owed to, or by, another person ; and
• granting act of grace payments to a person.
Division 8 has special provisions that apply to Ministers and officials of non - corporate Commonwealth entities .
• Subdivision A prohibits Ministers and those officials from making gifts of relevant p roperty unless authorised as provided in section 66.
• Subdivision B makes Ministers and those officials liable to pay an amount to the Commonwealth if they make an unauthorised gift or are responsible for the loss of relevant money or relevant property .
Division 9 has requirements t hat apply to Ministers only . Section 71 has requirements that apply to a Minister when the Minister is approving proposed expenditure . Section 72 requires a Minister who ha s responsibility for certain events (for example, the forming of a new company) to inform Parliament of the event.
This Part has some specific provisions relating to appropriations of the CRF .
Division 2 is mainly about appropriations relating to non - corporate Commonwealth entities. It has provisions about :
• the effect on appropriations when those entities receiv e certain amounts or make payments relating to GST ; and
• the effect on appropriations when there is a transfer of functions between those entities; and
• payments within or between those entities .
Division 3 deals with special accounts. Special accounts can be established in 2 ways--by the Finance Minister under this Act (see sections 78 and 79 ), or under an Act (see section 80 ).
This Part allows the rules to prescribe situations where the accountable authority of a Commonwealth entit y is required to share information with the States and Territories.
This Part also prohibits the Commonwealth from preventing State or Territory Auditors - General from conducting audit s in certain situations.
This Part has provisions relating to the Commonwealth's involvement i n companies, the responsibility of corporate Commonwealth entities for their subsidiaries , and the creation of new corporate Commonwealth entities.
Division 2 authorises the Commonwealth to form , or participate in forming, certain compan ies , and to acquire shares in , or become a member of , certain compan ies . It also requires the accountable authority of a corporate Commonwealth entity to ensure that none of the entity's subsidiaries does anything outside of power.
Division 3 allows the rules to create new corporate Commonwealth entities.
This Part has the core provisions for this Chapter (which is about Commonwealth companies) and special provisions applying to wholly - owned Commonwealth companies.
• defines what a Commonwealth company is (see subsection 89 ( 1 )); and
• defines what a wholly - owned Commonwealth company is (see section 90 ).
Division 3 requires the directors of a wholly - owned Commonwealth company to keep the responsible Minister and the Finance Minister informed about certain things, and ensure that the company has an audit committee. It also deals with the application of government policy to wholly - owned Commonwealth companies.
This Part is about planning by, and the accountability of, Commonwealth companies.
Division 2 is about planning by Commonwealth compan ies . It requires the directors of a Commonwealth company to prepare a corporate plan for the company. It also requires the directors of a wholly - owned Commonwealth company to prepare budget estimates for the company .
Division 3 is about reporting by, and the accountability of, Commonwealth companies. It requires the directors of a Commonwealth compan y to prepare and give annual reports for the company to the responsible Minister. It also requires the directors to ensure that the financial statements of a subsidiary of the company are audited.
This Part is about some other instruments that may be made under this Act.
It provides a power to make instruments about procurement by the Commonwealth, certain corporate Commonwealth entities or certain wholly - owned Commonwealth companies (see section 105B).
It also provides a power to make instruments about grants by the Commonwealth (see section 105C).
Finally, it provides a power to make instruments modifying the operation of this Act, the rules and instruments made under sections 105B and 105C in relation to intelligence or security agencies and listed law enforcement agencies (see section 105D).
This Part is about delegations.
Division 2 sets out when the
Finance Minister, the Treasurer, the Finance Secretary and the
accountable authority of a non - corporate Commonwealth entity may delegate a
power, function or duty under this Act or the rules .