Save Search

Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Governance Review Implementation (AASB and AUASB) Bill 2008

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

2008

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

Governance review implementation (AASB and AUasb) bill 2008

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

(Circulated by the authority of the

Minister for Superannuation and Corporate Law,

Senator the Hon Nick Sherry MP
)

 



T able of contents

Glossary                                                                                                               1

General outline and financial impact............................................................ 3

Chapter 1           Introduction........................................................................... 5

Chapter 2           Schedule 1 — Amendments............................................. 7

Chapter 3           Schedule 2 — Transitional provisions.......................... 17

Index                                                                                                                  23

 

Do not remove section break.



The following abbreviations and acronyms are used throughout this explanatory memorandum.

Abbreviation

Definition

AASB

Australian Accounting Standards Board

ASIC Act

Australian Securities and Investments Commission Act 2001

AUASB

Auditing and Assurance Standards Board

Bill

Governance Review Implementation (AASB and AUASB) Bill 2008

CAC Act

Commonwealth Authorities and Companies Act 1997

FMA Act

Financial Management and Accountability Act 1997

FRC

Financial Reporting Council

Office of the AASB

Office of the Australian Accounting Standards Board

Office of the AUASB

Office of the Auditing and Assurance Standards Board

Public Service Act

Public Service Act 1999



Outline

The Governance Review Implementation (AASB and AUASB) Bill 2008 (the Bill) improves the corporate governance of the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB).  The Bill also implements consequential amendments to the functions and powers of the Financial Reporting Council (FRC).

Date of effect:   The Act commences on the first 1 July occurring on or after the day on which the Act receives the Royal Assent.

Financial impact:   Nil.

Compliance cost impact:   Nil.

Summary of regulation impact statement

Regulation impact on business

Impact:   There is no regulation impact on business.  A Regulation Impact Statement exemption has been obtained.

Do not remove section break.



C hapter 1     

Introduction

Clause 1:  Short title

1.1                   The Act may be cited as the Governance Review Implementation (AASB and AUASB) Act 2008 .

Clause 2:  Commencement

1.2                   The Act commences on the first 1 July occurring on or after the day on which the Act receives the Royal Assent.

Clause 3:  Schedules

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

 

Do not remove section break.



C hapter 2     

Schedule 1 — Amendments

Outline of chapter

2.1                   Schedule 1 amends the Australian Securities and Investments Commission Act 2001 (the ASIC Act) to transfer the AASB and the AUASB to the FMA Act framework.

Context of amendments

2.2                   In 2007, Treasury finalised a review of the AASB’s and AUASB’s governance arrangements.  The review identified a range of concerns with the current governance framework, including the AASB’s and the AUASB’s current status as Commonwealth Authorities and Companies Act 1997 (CAC Act) bodies.  The review determined that the CAC Act is not suited to the AASB and the AUASB for the following reasons:

•        the CAC Act is suited to bodies that have a commercial purpose, whereas the AASB and the AUASB do not serve a commercial purpose;

•        the CAC Act is suited to bodies that have full power to act, whereas the AASB and the AUASB may be subject to ministerial direction in certain circumstances; and

•        the CAC Act is suited to bodies that have the power to appoint and terminate their Chair, whereas the Chairs of the AASB and the AUASB are appointed by the Minister.

2.3                   In addition, under the current governance arrangements, the FRC is responsible for a range of administrative functions relating to the two boards.

2.4                   The Bill introduces a new governance structure which improves existing accountability and governance arrangements of the AASB and the AUASB.

Summary of new law

2.5                   The Bill transfers the AASB and AUASB from the CAC Act to the Financial Management and Accountability Act 1997 (FMA Act) framework.  Under the new arrangements, two agencies prescribed under the FMA Act will be established to support the operations of the AASB and the AUASB.  The agencies will be referred to as the ‘Office of the Australian Accounting Standards Board’ and the ‘Office of the Auditing and Assurance Standards Board’.  Each FMA Act agency will comprise of the Chair of the board, the other members of the board and the staff of the board.  The Chairs of the AASB and the AUASB will hold the position of Chief Executive of their respective agency.

2.6                   There will be no change to the current statutory functions performed by the AASB and AUASB with respect to the development of accounting and auditing standards.  The amendments relate primarily to enhancing the financial and administrative arrangements of the boards.  As part of the new arrangements, consequential changes will be made to the FRC’s functions in relation to the approval of financial and administrative matters.  The FRC will, however, maintain its current strategic oversight role with respect to the boards.

2.7                   This governance structure improves existing accountability and governance arrangements, and will also enable the boards to maintain their operational autonomy.

Comparison of key features of new law and current law

New law

Current law

The AASB and the AUASB will transfer to the FMA Act framework, and will no longer be bodies corporate.

The AASB and the AUASB were CAC Act bodies and were bodies corporate.

The FRC will be responsible for providing strategic oversight.  It will undertake an advisory role with respect to financial and administrative matters.

The FRC was responsible for financial and administrative matters of the two boards in addition to providing strategic oversight.

Detailed explanation of new law

Functions and powers of the FRC

2.8                   The heading ‘Subdivision A — The Financial Reporting Council’ is inserted before section 225. [Schedule 1, Item 3]

2.9                   The Chairs of the AASB and the AUASB will be responsible for managing the Office of the AASB and the Office of the AUASB respectively.  In particular, the Chairs of the AASB and the AUASB will be responsible for approving their boards’ priorities, business plans and procedures and their Office’s budgets and staffing arrangements [Schedule 1, Items 24 and 28, sections 235D and 236DB] .

2.10               The Bill amends paragraphs 225(2)(b) and 225(2A)(b) by removing the requirement for the FRC to approve and monitor the AASB’s and the AUASB’s priorities, business plans, budgets and staffing arrangements, and replaces it with a requirement for the FRC to:

•        give the AASB and the AUASB advice or feedback on the their priorities, business plans and procedures; and

•        give the Office of the AASB and the Office of the AUASB advice or feedback on their budgets and staffing arrangements.

[Schedule 1, Items 4 and 8, paragraphs 225(2)(b) and 225(2A)(b)]

2.11               The Office of the AASB and the AASB must have regard to this advice or feedback [Schedule 1, Items 24 and 26, sections 235G and 236AA] .  Likewise, the Office of the AUASB and the AUASB are also required to have regard to this advice or feedback [Schedule 1, Items 28 and 30, sections 236DE and 236EA] .

2.12               If the Chair of the AASB or the AUASB takes action that is inconsistent with any such advice provided by the FRC, he or she must make a written record of the reasons for not following the advice, provide a copy of the advice and the reasons to the Minister and include a copy of the advice and the reasons in their annual report [Schedule 1, Items 24 and 28, sections 235D and 236DB] .

2.13               The Bill repeals paragraphs 225(2)(d) and 225(2A)(d) which set out the requirement for the FRC to give directions, advice or feedback on matters of general policy and on the AASB’s and the AUASB’s procedures [Schedule 1, Items 5 and 9, paragraphs 225(2)(d) and 225(2A)(d)] .

2.14               The Bill amends paragraphs 225(2)(j) and 225(2A)(j) by removing the requirement for the FRC to periodically review the AASB’s and AUASB’s level of funding and its funding arrangements.  The FRC will instead monitor the level of funding and the funding arrangements for accounting and auditing standard setting processes. [Schedule 1, Items 6-7 and 10-11, paragraphs 225(2)(j) and 225(2A)(j)]

The AASB and the Office of the AASB

2.15               The Bill repeals section 226 which provided the AASB with body corporate status.  It is replaced with a new Subdivision B which:

•        establishes the Office of the Australian Accounting Standards Board [Schedule 1, Item 12, subsection 226(1)] ;

•        provides that the Office of the AASB consists of the Chair of the AASB, the other members of the AASB and staff of the Office of the AASB [Schedule 1, Item 12, subsection 226(2)] .  The inclusion of board members as part of the Office relates solely to ensuring that any financial obligations of members are subject to the FMA Act.   For the purposes of the Public Service Act, the Chair of the AASB and the staff of the Office of the AASB together constitute a Statutory Agency [Schedule 1, Item 24, subsection 235E(6)] ; and

•        sets out the powers and functions of the Office of the AASB [Schedule 1, Item 12, section 226A].

2.16               The Bill repeals note 2 of section 226, which provided that the CAC Act applied to the AASB [Schedule 1, Item 12] .  Note 1 of section 226 has been relocated to note 1 of section 227(1) [Schedule 1, Item 13, subsection 227(1) (note 1)] and provides that the AASB was established under the Australian Securities and Investments Commission Act 1989 and is continued in existence by the Australian Securities and Investments Commission Act 2001 .

2.17               The Bill amends subsection 227(3) by transferring certain financial and administrative functions and powers from the AASB to the Office of the AASB.  The AASB’s functions and powers set out in subsection 227(3) have been repealed [Schedule 1, Item 14, subsection 227(3)] , with the exception of the AASB’s power to establish committees, advisory panels and consultative groups — this power will now rest with both the AASB and the Office of the AASB [Schedule 1, Items 12 and 14, paragraph 226A(2)(a) and subsection 227(3)] .  The Bill transfers to the Office of the AASB, the AASB’s power to engage staff and consultants [Schedule 1, Item 24, sections 235E and 235F] , receive money contributed towards its operating costs (or the AASB’s operating costs) and do anything else that is necessary for, or reasonably incidental to, the performance of its functions [Schedule 1, item 12, paragraphs 226A(2)(b) and (c)] .

The Office of the AASB

2.18               The Bill inserts a new subdivision AA dealing with the Office of the AASB.  The new subdivision sets out requirements relating to the duties of the Chair of the AASB [Schedule 1, Item 24, section 235D] , staff of the Office of the AASB [Schedule 1, Item 24, section 235E] , and consultants and persons seconded to the Office of the AASB [Schedule 1, Item 24, section 235F] .  Staff of the Office of the AASB may be employed either outside of the Public Service Act 1999 (the Public Service Act) or under the Public Service Act [Schedule 1, Item 24, section 235E] .  The Chair of the AASB must determine, in writing, the Office of the AASB’s Code of Conduct, which applies to the Chair and all staff [Schedule 1, Item 24, section 235E] .  The Code of Conduct is not a legislative instrument [Schedule 1, Item 24, section 235E] The Code does not meet the definition of a legislative instrument, and as such, this exemption is declaratory and does not amount to an exemption from the Legislative Instruments Act 2003 .

2.19               The new subdivision also provides that the Chair of the AASB is not subject to direction by the AASB in relation to the Chair’s performance of functions, or exercise of powers under the FMA Act or the Public Service Act in relation to the Office of the AASB [Schedule 1, Item 24, section 235H] .

2.20               The Chair of the AASB must, as soon as practicable after the end of each financial year, prepare and give to the Minister, for presentation to Parliament, a report on the operations of the AASB and the Office of the AASB during the financial year [Schedule 1, Item 24, section 235J] .

The AUASB and the Office of the AUASB

2.21               The Bill inserts a new Subdivision C which:

•        establishes the Office of the Auditing and Assurance Standards Board [Schedule 1, Item 15, subsection 227AA(1)] ;

•        provides that the Office of the AUASB consists of the Chair of the AUASB, the other members of the AUASB and staff of the Office of the AUASB [Schedule 1, Item 15, subsection 227AA(2)] .  The inclusion of board members as part of the Office relates solely to ensuring that any financial obligations of members are subject to the FMA Act.  For the purposes of the Public Service Act, the Chair of the AUASB and the staff of the Office of the AUASB together constitute a Statutory Agency [Schedule 1, Item 28, subsection 236DC(6)] ; and

•        sets out the powers and functions of the Office of the AUASB [Schedule 1, Item 15, section 227AB] .

2.22               The Bill amends subsection 227A by repealing paragraphs 227A(2) and (3), as the AUASB will no longer be a separate body corporate [Schedule 1, Item 17, subsections 227A(2) and (3)] .  The Bill retains paragraph 227A(1), which establishes the AUASB, although its paragraph numbering has been removed as it is now the only paragraph under the subsection [Schedule 1, Item 16, section 227A] .

2.23               The Bill amends subsection 227B(2) by transferring certain financial and administrative functions and powers from the AUASB to the Office of the AUASB.  The AUASB’s functions and powers set out in subsection 227B(2) have been repealed [Schedule 1, Item 18, subsection 227B(2)] , with the exception of the AUASB’s power to establish committees, advisory panels and consultative groups — this power will now rest with both the AUASB and the Office of the AUASB [Schedule 1, Items 15 and 18, paragraph 227AB(2)(a) and subsection 227B(2)] .  The Bill transfers to the Office of the AUASB, the AUASB’s power to engage staff and consultants [Schedule 1, Item 28, sections 236DC and 236DD] , receive money contributed to its operating costs (or the AUASB’s operating costs) and do anything else that is necessary for, or reasonably incidental to, the performance of its functions [Schedule 1, Item 15, paragraphs 227AB(2)(b) and (c)] .

The Office of the AUASB

2.24               The Bill inserts a new subdivision BAA dealing with the Office of the AUASB.  The new subdivision sets out requirements relating to the duties of the Chair of the AUASB [Schedule 1, Item 28, section 236DB] , staff of the Office of the AASB [Schedule 1, Item 28, section 236DC] , and consultants and persons seconded to the Office of the AASB [Schedule 1, Item 28, section 236DD] Staff of the Office of the AUASB may be employed either outside of the Public Service Act or under the Public Service Act [Schedule 1, Item 28, section 236DC] .  The Chair of the AUASB must determine, in writing, the Office of the AUASB’s Code of Conduct, which applies to the Chair and all staff [Schedule 1, Item 28, section 236DC] The Code of Conduct is not a legislative instrument [Schedule 1, Item 28, section 236DC] .  The Code does not meet the definition of a legislative instrument, and as such, this exemption is declaratory and does not amount to an exemption from the Legislative Instruments Act 2003 .

2.25               The new subdivision also provides that the Chair of the AUASB is not subject to direction by the AUASB in relation to the Chair’s performance of functions, or exercise of powers under the FMA Act or the Public Service Act in relation to the Office of the AUASB [Schedule 1, Item 28, section 236DF] .

2.26               The Chair of the AUASB must, as soon as practicable after the end of each financial year, prepare and give to the Minister, for presentation to Parliament, a report on the operations of the AUASB and the Office of the AUASB during the financial year [Schedule 1, Item 28, section 236DG] .

Accounting Standards

2.27               The Bill makes a correction to the note to subsection 231(1) by replacing an incorrect cross-reference to subsection 227(3) with a cross reference to subsection 227(4). [Schedule 1, Item 19, subsection 231(1) (note)]

2.28               The Bill amends section 232 by removing the requirement for the AASB to follow the general policy directions given by the FRC and the requirement to take into account advice and feedback on matters of general policy given by the FRC.  The FRC will, however, continue to have the power to issue broad strategic directions to the AASB, and the AASB must follow such a direction. [Schedule 1, Item 20, section 232]

Auditing standards

2.29               The Bill amends section 234C by removing the requirement for the AUASB to follow the general policy directions given by the FRC and the requirement to take into account advice and feedback on matters of general policy given by the FRC.  The FRC will, however, continue to have the power to issue broad strategic directions to the AUASB, and the AUASB must follow such a direction. [Schedule 1, item 21, section 234C]

Annual reports

2.30               The Bill amends section 235B to remove the FRC’s obligation to give reports to the Minister on the operations of the AASB, the AUASB, and their associated committees, advisory panels and consultative groups (the Chairs of the AASB and the AUASB will be responsible for providing these reports to the Minister).  The FRC will continue to have an obligation to give the Minister a report on the operations of the FRC and its committees and advisory groups. [Schedule 1, Item 22, paragraph 235B(1)(a)] .

2.31               The FRC’s report must include details of any advice or feedback given by the FRC under paragraphs 225(2)(b) or (ba) or 225(2A)(b) or (ba) during the year [Schedule 1, Item 23, paragraphs 235B(2)] .  As noted in paragraph 2.12 above, if the Chair of the AASB or the AUASB takes action that is inconsistent with the FRC’s advice, he or she must make a written record of the reasons for not following the advice, provide a copy of the advice and the reasons to the Minister and include a copy of the advice and the reasons in their annual report [Schedule 1, Items 24 and 28, sections 235D and 236DB] .

2.32               The Bill does not preclude the report of the FRC (prepared under section 235B), the report of the AASB and the Office of the AASB (prepared under section 235J) and the report of the AUASB and the Office of the AUASB (prepared under 236DG) being provided as one document.  In addition, the explanatory statement to the FMA Regulations will make clear that the AASB and the AUASB are supported financially by their respective Office, and as such, will be treated as a single entity for various obligations under the FMA Act, including the requirement to prepare an annual report.  This may also be reflected in the Finance Minister’s Orders.

Disclosure of interests

2.33               If the Chair of the AASB or AUASB has or acquires any direct or indirect pecuniary interest that conflicts or could conflict with the proper performance of their functions, the Chair must give written notice of the interest to the Minister. [Schedule 1, Items 27 and 31, paragraphs 236DA(1)(a) and 236J(1)(a)]

2.34               If a member of the AASB or AUASB (who is not the Chair) has or acquires any direct or indirect pecuniary interest that conflicts or could conflict with the proper performance of their functions, the member must give written notice of the interest to the Chair of their respective board. [Schedule 1, Items 27 and 31, paragraphs 236DA(1)(b) and 236J(1)(b)] .

2.35               A member who has a direct or indirect pecuniary interest in a matter being considered or about to be considered by the board must disclose the nature of the interest to a meeting of the board [Schedule 1, Items 27 and 31, subsections 236DA(2) and 236J(2)] , as soon as possible after the relevant facts have come to the member’s knowledge [Schedule 1, Items 27 and 31, subsections 236DA(3) and 236J(3)] .  The disclosure must be recorded in the minutes of the meeting of the relevant board [Schedule 1, Items 27 and 31, subsections 236DA(4) and 236J(4)] .  The member must not be present during any deliberation on the matter, and must not take part in any decision with respect to the matter unless the Minister (if the member is the Chair) or the Chair of the board (if the member is not the Chair) otherwise determines [Schedule 1, Items 27 and 31, subsections 236DA(5) and 236J(5)] .

Confidentiality

2.36               The Bill makes consequential amendments to subsection 237(1), by providing that the Office of the AASB and the Office of the AUASB (in addition to the FRC, the AASB and the AUASB) must take all reasonable measures to protect from unauthorised use or disclosure information given to it in confidence [Schedule 1, Item 32, subsection 237(1)] .  Further consequential amendments are also made by inserting a reference to the Office of the AASB and the Office of the AUASB in paragraph 237(2)(b) [Schedule 1, Item 33, subsection 237(2)(b)] .

Financial matters — application of money

2.37               The Bill repeals section 238 relating to the application of money.  The FMA Act requirements will apply in respect of financial matters [Schedule 1, Item 34] .

Liability for damages

2.38               The Bill amends paragraphs 246(i) and (j) by extending the exemption from liability for damages currently applying to the members, staff and consultants of the AASB and AUASB, to also apply to:

•        a member of staff of the Office of the AASB engaged under section 235E; a consultant to the Office of the AASB engaged under section 235F, or a person assisting the Office of the AASB under subsection 235F(3); and

•        a member of staff of the Office of the AUASB engaged under section 236DC; a consultant to the Office of the AUASB engaged under section 236DD, or a person assisting the Office of the AUASB under subsection 236DD(3).

[Schedule 1, Item 35, paragraphs 246(1)(i) and (j)]

2.39               The Bill also amends paragraphs 246(2)(c) and (d) by extending the exemption from liability for damages to a member of a committee, advisory panel or consultative group established by either the AASB, the AUASB, the Office of the AASB and the Office of the AUASB [Schedule 1, Items 36 and 37, paragraphs 246(2)(c) and (d)] .

 

Do not remove section break.



C hapter 3     

Schedule 2 — Transitional provisions

Outline of chapter

3.1                   Schedule 2 of the Bill outlines transitional arrangements to transfer the AASB and the AUASB to the FMA Act framework.

Detailed explanation of new law

Definitions

3.2                   The Bill defines several terms used in Schedule 2. [Schedule 2, Part 1, Item 1]

Assets, liabilities and legal proceedings

Assets

3.3                   The assets of the AASB and the AUASB immediately before the commencement time will become the assets of the Commonwealth, and are taken to be held by the Office of the AASB and the Office of the AUASB for and on behalf of the Commonwealth.  This will take effect without any conveyance, transfer or assignment.  The Commonwealth becomes the successor in law in relation to these assets [Schedule 2, Part 2, Items 2 and 3]. The Bill also contains provisions to facilitate the transfer and registration of land and other assets [Schedule 2, Part 2, Items 4 and 5] .

Liabilities

3.4                   The liabilities of the AASB and the AUASB immediately before the commencement time will also become the liabilities of the Commonwealth without any conveyance, transfer or assignment.  The Commonwealth becomes the successor in law in relation to these liabilities. [Schedule 2, Part 2, Items 2 and 3]

Substitution of Commonwealth as a party to pending proceedings

3.5                   If any proceedings to which the AASB and the AUASB was a party were pending in any court or tribunal immediately before the commencement time, the Commonwealth is substituted for the AASB and the AUASB, from the commencement time, as a party to the proceedings. [Schedule 2, Part 2, Item 6]

Records

3.6                   Any records or documents that, immediately before the commencement time, were in the custody of the AASB are to be transferred into the custody of the Office of the AASB at or after the commencement time [Schedule 2, Part 2, Sub-item 7(1)] .

3.7                   Any records or documents that, immediately before the commencement time, were in the custody of the AUASB are to be transferred into the custody of the Office of the AUASB at or after the commencement time [Schedule 2, Part 2, Sub-item 7(2)] .

Reference to, and things done by or in relation to, the AASB or the AUASB

References in instruments

3.8                   The Bill provides that instruments (other than a standard or guidance) in force immediately before the commencement time that contain a reference to the AASB or the AUASB are taken to have effect as if the reference were a reference to the Office of the AASB and the Office of the AUASB respectively [Schedule 2, Part 3, Sub-items 8(1) & (2)] unless the Minister or the regulations provide otherwise [Schedule 2, Part 3, Sub-items 8(4) & (5)] .  A determination made by the Minister is not a legislative instrument [Schedule 2, Part 3, Sub-item 8(6)] .  The determination does not meet the definition of a legislative instrument, and as such, this exemption is declaratory and does not amount to an exemption from the Legislative Instruments Act 2003 .

3.9                   There is also an exception for instruments relating to assets and liabilities covered by Items 2 or 3 of the transitional provisions [Schedule 2, Part 3, Sub-item 8(3)] .

Operation of laws

3.10               If, before the commencement time, a thing was done by or in relation to, the AASB or the AUASB (other than making a standard or guidance), then following commencement, the thing is taken to have been done by, or in relation to, the Commonwealth [Schedule 2, Part 3, Sub-items 9(1) and 9(2)] .  However, the Minister or the regulations may provide otherwise [Schedule 2, Part 3, Sub-items 9(4) and 9(5)] .  A determination made by the Minister is not a legislative instrument [Schedule 2, Part 3, Sub-item 9(7)] .  The determination does not meet the definition of a legislative instrument, and as such, this exemption is declaratory and does not amount to an exemption from the Legislative Instruments Act 2003 .

Reporting requirements relating to the AASB, the AUASB and the FRC

3.11               On commencement of the Bill, the reporting requirements will change.  The transitional provisions ensure that, following commencement, the FRC, the AASB and the AUASB continue to have an obligation to complete any pre-commencement reporting obligations for the pre vious reporting period [Schedule 2, Part 3, Items 10-12] .  Past practice has been for the FRC to provide the reports of the AASB and the AUASB to the Minister, as the FRC are taken to be the directors of the AASB and the AUASB.  The Bill does not seek to alter this practice for the final report prepared under the CAC Act.

Continuing obligation to keep records

3.12               Section 20 of the CAC Act continues to apply after the commencement time in relation to the accounting records kept by the AASB and AUASB under that section before that time as if the Office of the AASB and the Office of the AUASB were subject to that Act in place of the AASB and AUASB respectively [Schedule 2, Part 3, Item 13] .

Staff and consultants

Staff of the AASB

3.13               A person who was a member of the staff of the AASB immediately before the commencement time is taken, at the commencement time, to have been engaged by the Chair of the AASB as a member of the staff of the Office of the AASB [Schedule 2, Part 4, Sub-item 14(1)] .

3.14               The person is taken to have been engaged on the same terms and conditions as applied to the person immediately before the commencement time [Schedule 2, Part 4, Sub-item 14(2)(a)] .  The Bill does not prevent the terms and conditions being varied after the commencement time [Schedule 2, Part 4, Sub-item 14(5)] .

3.15               The person is also taken to have an entitlement to benefits, in connection with that engagement by the Chair of the AASB, that is equivalent to the person’s entitlement, as a member of the staff of the AASB, immediately before the commencement time [Schedule 2, Part 4, Sub-item 14(2)(b)] .   The service of the person as a member of the staff of the Office of the AASB is taken, for all purposes, to have been continuous with the service, immediately before the commencement time, of the employee as a member of the staff of the AASB [Schedule 2, Part 4, Sub-item 14(3)] .  The person is not entitled to receive any payment or other benefit merely because he or she stopped being a member of the staff of the AASB as a result of this Act [Schedule 2, Part 4, Sub-item 14(4)] .

Staff of the AUASB

3.16               A person who was a member of the staff of the AUASB immediately before the commencement time is taken, at the commencement time, to have been engaged by the Chair of the AUASB as a member of the staff of the Office of the AUASB [Schedule 2, Part 4, Sub-item 15(1)] .

3.17               The person is taken to have been engaged on the same terms and conditions as applied to the person immediately before the commencement time [Schedule 2, Part 4, Sub-item 15(2(a))] .  The Bill does not prevent the terms and conditions being varied after the commencement time [Schedule 2, Part 4, Sub-item 15(5)] .

3.18               The person is also taken to have an entitlement to benefits, in connection with that engagement by the Chair of the AUASB, that is equivalent to the person’s entitlement, as a member of the staff of the AUASB, immediately before the commencement time [Schedule 2, Part 4, sub-item 15(2)(b)] .  The service of the person as a member of the staff of the Office of the AUASB is taken, for all purposes, to have been continuous with the service, immediately before the commencement time, of the employee as a member of the staff of the AUASB [Schedule 2, Part 4, Sub-item 15(3)] .  The person is not entitled to receive any payment or other benefit merely because he or she stopped being a member of the staff of the AUASB as a result of this Act [Schedule 2, Part 4, Sub-item 15(4)] .

Consultants

3.19               A person in respect of whom an engagement as a consultant was in force under paragraph 227(3)(a) or 227B(2)(a) of the old law immediately before the commencement time is taken, at the commencement time, to have been engaged as a consultant under subsection 235F(1) or 236DD(1) (as the case requires) of the new law [Schedule 2, Part 4, Sub-item 16(1)] .

3.20               The person is taken to have been engaged on the same terms and conditions as applied to the person immediately before the commencement time [Schedule 2, Part 4, Sub-item 16(2)] .

3.21               The Bill does not prevent those terms and conditions being varied after the commencement time [Schedule 2, Part 4, Sub-item 16(3)] .

Other matters

Accounting standards and auditing standards etc remain unaffected

3.22               To avoid doubt, the Bill does not affect the validity of accounting standards made or formulated by the AASB before the commencement time [Schedule 2, Part 5, Sub-item 17(a)] .  In addition, the Bill does not affect the validity of auditing standards or guidance made or formulated by the AUASB before the commencement time [Schedule 2, Part 5, Sub-item 17(b)] .

Membership of AASB and the AUASB unaffected

3.23               To avoid doubt, if, immediately before the commencement time, a person’s appointment as a member of the AASB or AUASB is in force, the Bill does not affect the continuation of the person’s appointment after the commencement time [Schedule 2, Part 5, Item 18] .

Liability for damages

3.24               If section 246 of the old law applied to a person in relation to an act done or omitted before the commencement time, and section 246 of the new law would not (but for this Bill) apply to the person, section 246 of the new law is taken to apply to the person in relation to the act or omission [Schedule 2, Part 5, Item 19] .

Exemption from stamp duty and other State or Territory taxes

3.25               If an asset or liability under Schedule 2 is transferred, then no stamp duty or any other tax is payable under a law of a State or Territory in respect of it, nor in relation to the operation of Schedule 2 in any other respect [Schedule 2, Part 5, Item 20] .

Constitutional safety net — acquisition of property

3.26               If property is acquired under Schedule 2 from a person otherwise than on just terms, the Commonwealth will be liable to pay a reasonable amount of compensation to the person.  If agreement cannot be reached, proceedings can be instituted in a court to determine a reasonable amount of compensation. [Schedule 2, Part 5, Item 21]

Certificates taken to be authentic

3.27               A document that appears to be a certificate made or issued under a particular provision of Schedule 2 is taken to be authentic, and to have been properly given, unless the contrary intention is established [Schedule 2, Part 5, Item 22] .

Delegation by Minister

3.28               The Minister may, by writing, delegate all or any of his or her powers and functions under Schedule 2 relating to the AASB and the Office of the AASB to the Chair of the AASB, the Secretary of the Department or an SES employee or acting SES employee in the Department [Schedule 2, Part 5, Sub-item 23(1)] .

3.29               The Minister may, by writing, delegate all or any of his or her powers and functions under Schedule 2 relating to the AUASB and the Office of the AUASB to the Chair of the AUASB, the Secretary of the Department or an SES employee or acting SES employee in the Department [Schedule 2, Part 5, Sub-item 23(2)] .

3.30               In exercising powers or performing functions under such a delegation, the delegate must comply with any directions by the Minister [Schedule 2, Part 5, Sub-item 23(3)] .

Regulations

3.31               The Governor-General may make regulations prescribing matters required or permitted by Schedule 2, or necessary or convenient to be prescribed for carrying out or giving effect to Schedule 2 [Schedule 2, Part 5, Sub-item 24(1)] .

3.32               The Governor-General may also make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by Schedule 1 [Schedule 2, Part 5, Sub-item 24(2)] .

 

Do not remove section break.



 

Schedule 1:  Amendments

Bill reference

Paragraph number

Item 3

2.8

Items 4 and 8, paragraphs 225(2)(b) and 225(2A)(b)

2.10

Items 5 and 9, paragraphs 225(2)(d) and 225(2A)(d)

2.13

Items 6-7 and 10-11, paragraphs 225(2)(j) and 225(2A)(j)

2.14

Item 12, subsection 226(1)

2.15

Item 12, subsection 226(2)

2.15

Item 12, section 226A

2.15

Item 12

2.16

Items 12 and 14, paragraph 226A(2)(a) and subsection 227(3)

2.17

Item 12, paragraphs 226A(2)(b) and (c)

2.17

Item 13, subsection 227(1) (note 1)

2.16

Item 14, subsection 227(3)

2.17

Item 15, subsection 227AA(1)

2.21

Item 15, subsection 227AA(2)

2.21

Item 15, section 227AB

2.21

Items 15 and 18, paragraph 227AB(2)(a) and subsection 227B(2)

2.23

Item 15, paragraphs 227AB(2)(b) and (c)

2.23

Item 16, section 227A

2.22

Item 17, subsections 227A(2) and (3)

2.22

Item 18, subsection 227B(2)

2.23

Item 19, subsection 231(1) (note)

2.27

Item 20, section 232

2.28

Item 21, section 234C

2.29

Item 22, paragraph 235B(1)(a)

2.30

Item 23, paragraphs 235B(2)

2.31

Item 24, subsection 235E(6)

2.15

Bill reference

Paragraph number

Item 24, section 235D

2.18

Item 24, section 235E

2.18

Item 24, section 235F

2.18

Item 24, section 235E

2.18

Item 24, section 235H

2.19

Item 24, section 235J

2.20

Items 24 and 28, sections 235D and 236DB

2.9, 2.12, 2.31

Items 24 and 26, sections 235G and 236AA

2.11

Item 24, sections 235E and 235F

2.17

Items 27 and 31, paragraphs 236DA(1)(a) and 236J(1)(a)

2.33

Items 27 and 31, paragraphs 236DA(1)(b) and 236J(1)(b)

2.34

Items 27 and 31, subsections 236DA(2) and 236J(2)

2.35

Items 27 and 31, subsections 236DA(3) and 236J(3)

2.35

Items 27 and 31, subsections 236DA(4) and 236J(4)

2.35

Items 27 and 31, subsections 236DA(5) and 236J(5)

2.35

Item 28, subsection 236DC(6)

2.21

Item 28, section 236DB

2.24

Item 28, section 236DC

2.24

Item 28, section 236DD

2.24

Item 28, section 236DC

2.24

Item 28, section 236DF

2.25

Item 28, section 236DG

2.26

Items 28 and 30, sections 236DE and 236EA

2.11

Item 28, sections 236DC and 236DD

2.23

Item 32, subsection 237(1)

2.36

Item 33, subsection 237(2)(b)

2.36

Item 34

2.37

Item 35, paragraphs 246(1)(i) and (j)

2.38

Items 36 and 37, paragraphs 246(2)(c) and (d)

2.39

Schedule 2:  Transitional provisions

Bill reference

Paragraph number

Part 1, Item 1

3.2

Part 2, Sub-item 7(1)

3.6

Part 2, Sub-item 7(2)

3.7

Part 2, Items 2 and 3

3.3, 3.4

Part 2, Items 4 and 5

3.3

Part 2, Item 6

3.5

Part 3, Sub-items 8(1) & (2)

3.8

Part 3, Sub-items 8(4) & (5)

3.8

Part 3, Sub-item 8(6)

3.8

Part 3, Sub-item 8(3)

3.9

Part 3, Sub-items 9(1) and 9(2)

3.10

Part 3, Sub-items 9(4) and 9(5)

3.10

Part 3, Sub-item 9(7)

3.10

Part 3, Items 10-12

3.11

Part 3, Item 13

3.12

Part 4, Sub-item 14(1)

3.13

Part 4, Sub-item 14(2)(a)

3.14

Part 4, Sub-item 14(5)

3.14

Part 4, Sub-item 14(2)(b)

3.15

Part 4, Sub-item 14(3)

3.15

Part 4, Sub-item 14(4)

3.15

Part 4, Sub-item 15(1)

3.16

Part 4, Sub-item 15(2(a))

3.17

Part 4, Sub-item 15(5)

3.17

Part 4, sub-item 15(2)(b)

3.18

Part 4, Sub-item 15(3)

3.18

Part 4, Sub-item 15(4)

3.18

Part 4, Sub-item 16(1)

3.19

Part 4, Sub-item 16(2)

3.20

Part 4, Sub-item 16(3)

3.21

Part 5, Sub-item 17(a)

3.22

Part 5, Sub-item 17(b)

3.22

Part 5, Sub-item 23(1)

3.28

Bill reference

Paragraph number

Part 5, Sub-item 23(2)

3.29

Part 5, Sub-item 23(3)

3.30

Part 5, Sub-item 24(1)

3.31

Part 5, Sub-item 24(2)

3.32

Part 5, Item 18

3.23

Part 5, Item 19

3.24

Part 5, Item 20

3.25

Part 5, Item 21

3.26

Part 5, Item 22

3.27

Do not remove section break.