Federal Register of Legislation - Australian Government

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Rules/Other as made
This rule amends the Public Governance, Performance and Accountability Rule 2014 to establish the minimum requirements for annual reporting for the content of annual reports for Commonwealth companies to be presented to parliament.
Administered by: Finance
Registered 06 May 2016
Tabling HistoryDate
Tabled HR30-Aug-2016
Tabled Senate30-Aug-2016
Date of repeal 08 May 2016
Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003
Table of contents.

 

Public Governance, Performance and Accountability Amendment (Commonwealth Company Annual Reporting) Rule 2016

I, MATHIAS HUBERT PAUL CORMANN, Minister for Finance, make the following rule.

Dated 5 May 2016

MATHIAS HUBERT PAUL CORMANN

Minister for Finance

 

  

  


Contents

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................. 1

3............ Authority....................................................................................................................... 1

4............ Schedules...................................................................................................................... 1

Schedule 1—Amendments                                                                                                                          2

Public Governance, Performance and Accountability Rule 2014                                               2

 


1  Name

                   This is the Public Governance, Performance and Accountability Amendment (Commonwealth Company Annual Reporting) Rule 2016.

2  Commencement

             (1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this instrument

The later of:

(a) the start of the day after this instrument is registered; and

(b) immediately after the commencement of the Public Governance, Performance and Accountability Amendment (Corporate Commonwealth Entity Annual Reporting) Rule 2016.

7 May 2016

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under the Public Governance, Performance and Accountability Act 2013.

4  Schedules

                   Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1Amendments

  

Public Governance, Performance and Accountability Rule 2014

1  Section 4

Insert:

annual report for a Commonwealth company means the report that includes the reports referred to in paragraph 97(1)(a) of the Act.

2  Before section 27A

Insert:

Part 3‑1Planning and budgeting

  

3  Before section 28

Insert:

Part 3‑2Audit committee for Commonwealth companies

  

4  At the end of Chapter 3

Add:

Part 3‑3Annual report for Commonwealth companies

  

28A  Guide to this Part

The purpose of this Part is to prescribe requirements for annual reports for Commonwealth companies.

This Part is made for paragraph 97(1)(b) of the Act.

28B  Approval of annual report by directors

                   The annual report for a Commonwealth company must:

                     (a)  be approved by the directors of the company; and

                     (b)  be signed by a director of the company; and

                     (c)  include details of how and when approval of the annual report was given.

28C  Parliamentary standards of presentation

                   The annual report for a Commonwealth company must comply with the guidelines for presenting documents to the Parliament.

28D  Plain English and clear design

             (1)  The annual report for a Commonwealth company must be prepared having regard to the interests of the Parliament and any other persons who are interested in the annual report.

             (2)  Information included in the annual report must be relevant, reliable, concise, understandable and balanced, including through doing the following, where practicable:

                     (a)  using clear design (for example, through headings and adequate spacing);

                     (b)  defining acronyms and technical terms (for example, in a glossary);

                     (c)  using tables, graphs, diagrams and charts;

                     (d)  including any additional matters as appropriate.

28E  Contents of annual report

                   The annual report for a Commonwealth company for a reporting period must include the following:

                     (a)  the purposes of the company as included in the company’s corporate plan for the period;

                     (b)  the names of the persons holding the position of responsible Minister or responsible Ministers during the period, and the titles of those responsible Ministers;

                     (c)  any directions given to the entity by a Minister under the company’s constitution, an Act or an instrument during the period;

                     (d)  any government policy orders that applied in relation to the company during the period under section 93 of the Act;

                     (e)  if, during the period, the company has not complied with a direction or order referred to in paragraph (c) or (d)—particulars of the non‑compliance;

                      (f)  information on each director of the company during the period, including:

                              (i)  the name of the director; and

                             (ii)  the qualifications of the director; and

                            (iii)  the experience of the director; and

                            (iv)  the number of meetings of the board of the company attended by the director during the period; and

                             (v)  whether the director is an executive director or non‑executive director;

                     (g)  an outline of the organisational structure of the company (including any subsidiaries of the company);

                     (h)  an outline of the location (whether or not in Australia) of major activities or facilities of the company;

                      (i)  information in relation to the main corporate governance practices used by the company during the period;

                      (j)  the decision‑making process undertaken by the directors of the company for making a decision if:

                              (i)  the decision is to approve the company paying for a good or service from a Commonwealth entity or a company, or providing a grant to a Commonwealth entity or a company; and

                             (ii)  the company, and the Commonwealth entity or the company, are related entities; and

                            (iii)  the value of the transaction, or if there is more than one transaction, the aggregate value of those transactions, is more than $10 000 (GST inclusive);

                     (k)  if the annual report includes information under paragraph (j):

                              (i)  if there is only one transaction—the value of the transaction; and

                             (ii)  if there is more than one transaction—the number of transactions and the aggregate of value of the transactions;

                      (l)  any significant activities and changes that affected the operations or structure of the company during the period;

                    (m)  particulars of judicial decisions or decisions of administrative tribunals made during the period that have had, or may have, a significant effect on the operations of the company;

                     (n)  particulars of any report on the company given during the period by:

                              (i)  the Auditor‑General; or

                             (ii)  a Committee of either House, or of both Houses, of the Parliament; or

                            (iii)  the Commonwealth Ombudsman; or

                            (iv)  the Office of the Australian Information Commissioner; or

                             (v)  the Australian Securities and Investments Commission;

                     (o)  if the directors have been unable to obtain information from a subsidiary of the company that is required to be included in the annual report—an explanation of the information that was not obtained and the effect of not having the information on the annual report;

                     (p)  an index identifying where the requirements of this section and section 28F (if applicable) are to be found.

Note:          Other legislation may require Commonwealth companies to include additional matters in the annual report.

28F  Disclosure requirements for government business enterprises

Changes in financial conditions and community service obligations

             (1)  The annual report for a reporting period for a government business enterprise that is a Commonwealth company must include the following information:

                     (a)  an assessment of:

                              (i)  significant changes in the company’s overall financial structure and financial condition during the reporting period; and

                             (ii)  any events or risks that could cause financial information that is reported not to be indicative of future operations or financial condition;

                     (b)  dividends paid or recommended in relation to the reporting period;

                     (c)  details of any community service obligations the government business enterprise has, including:

                              (i)  an outline of actions the government business enterprise has taken to fulfil those obligations; and

                             (ii)  an assessment of the cost of fulfilling those obligations.

Note:          Details on dividends are also required under section 300 of the Corporations Act 2001.

Information that is commercially prejudicial

             (2)  However, information may be excluded if the directors of the government business enterprise believe, on reasonable grounds, that the information is commercially sensitive and would be likely to result in unreasonable commercial prejudice to the government business enterprise. The annual report must state whether such information has been excluded.

5  At the end of Chapter 5

Add:

Part 3Amendments made by the Public Governance, Performance and Accountability Amendment (Commonwealth Company Annual Reporting) Rule 2016

  

33  Application of amendments made by the Public Governance, Performance and Accountability Amendment (Commonwealth Company Annual Reporting) Rule 2016

                   The amendments of this rule made by the Public Governance, Performance and Accountability Amendment (Commonwealth Company Annual Reporting) Rule 2016 apply in relation to any reporting period that begins on or after 1 July 2015.