Commonwealth Numbered Regulations - Explanatory Statements

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FAMILY LAW (AUSTRALIAN INSTITUTE OF FAMILY STUDIES) AMENDMENT REGULATIONS 2002 (NO. 1) 2002 NO. 163

EXPLANATORY STATEMENT

Statutory Rules 2002 No. 163

Issued by the Authority of the Minister for Family and Community Services

Family Law Act 1975

Family Law (Australian Institute of Family Studies) Amendment Regulations 2002 (No. 1)

Part XIVA of the Family Law Act 1975 (the Act) establishes the Australian Institute of Family Studies (the Institute).

Section 114MC of Part XIVA of the Act provides that the Institute shall not, except with the approval of the Minister, enter into a contract involving the payment by the Institute of an amount exceeding $100,000 or if a higher amount is prescribed-that higher amount.

Subsection 125(1) of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of the Regulations is to prescribe a higher amount of $400,000 that the Institute may pay in entering a contract without seeking the approval of the Minister.

The reasons for making the Regulations that will enable the Institute to enter into a contract involving the payment of up to $400,000 is:

•       a proposed Longitudinal Survey of Australian Children is likely to be conducted later this year and if the current $100,000 limit is retained, numerous sub-contractual arrangement approvals by the Minister would be necessary;

•       an increasing level of contracted project work is being conducted and that even small projects are likely to involve contracts in excess of $100,000;

•       the $100,000 limit was established in 1986 and has, over time, been eroded by inflation;

•       increasing the limit to $400,000 will not weaken the Institute's corporate governance or raise any issues of probity because the Commonwealth Authorities and Companies Act 1997 regulates the Institute's financial management and provides a framework for corporate governance;

•       any proposed contractual or sub-contractual arrangements are clearly defined in the Institute's tender for projects; and

•       a similar provision relating to the Australian Institute of Health and Welfare was increased to $500,000 in September 1997.

The Regulations specify that the commencement date is on gazettal.


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