Proposed transitional arrangement for
Commonwealth authorities
10 June 2014
With the commencement of the Public Governance, Performance and Accountability Act 2013
(PGPA Act) on 1 July 2014, the Commonwealth Authorities and Companies Act 1997 (CAC Act)
and the Commonwealth Authorities and Companies Regulations 1997 (CAC Regulations) will be
repealed.
On 1 July Commonwealth authorities will become corporate Commonwealth entities. Some
other changes to terminology will be:
CAC Act
PGPA Act
Commonwealth authority
corporate Commonwealth entity
director(s)
accountable authority
director, senior manager or employee
official
money held in own account
relevant money
Finance Minister’s Orders
PGPA rule for financial reporting
General Policy Order
Government Policy Order
The following table sets out the proposed transitional arrangements for Commonwealth
authorities for:

existing requirements in the CAC Act and the CAC Regulations and

new requirements commencing in the PGPA Act.
Transitional and saving arrangements
Section of CAC
Act or CAC
regulation
ss 9, 10, 12, 14
& Schedule 1
Finance
Minister’s
Orders on the
preparation of
financial
statements
Subject
Proposed transitional arrangement
Continuation of
reporting obligations
for 2013-14 financial
year
Certain provisions in the CAC Act relating to the 2013-14 financial
year continue to apply after 1 July to ensure that Commonwealth
authorities produce their financial statements for 2013-14, and
have those statements audited by the Auditor-General, in
accordance with the CAC Act.
Finance Minister’s Orders on the preparation of financial
statements for the 2013-14 financial year will also continue to
apply for financial statements for 2013-14.
The reporting requirements in the PGPA Act will then apply for
the 2014-15 financial year and beyond, for example:
 budget estimates will be prepared for reporting periods
Proposed transitional arrangements for Commonwealth authorities |
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Section of CAC
Act or CAC
regulation
Subject
Proposed transitional arrangement
commencing on or after 1 July 2014 in accordance with s36 of
the PGPA Act
 annual financial statements will be prepared and audited for
reporting periods commencing on or after 1 July 2014 in
accordance with ss42 and 43 of the PGPA Act
 audits of subsidiary’s financial statements for reporting periods
commencing on or after 1 July 2014 will be in accordance with
s44 of the PGPA Act
 annual reports for reporting periods commencing on or after
1 July 2014 will be prepared in accordance with s46 of the
PGPA Act.
Rules supporting the annual reporting obligations will also be
developed in consultation with key stakeholders, including the
Joint Committee of Public Accounts Audit (JCPAA), during the
second half of 2014 before the JCPAA is asked to formally
approve any proposed rules.
s 15
Responsible Minister
to be notified of
significant events
Director(s) will be required to notify the responsible Minister of
any significant event that event occur before 1 July. This is to
ensure that the CAC Act’s accountability framework continues for
all events that occur before its repeal.
For events that occur after 1 July, Ministers will have to inform
Parliament of certain events in accordance with s19 of the PGPA
Act.
s 16
Keeping responsible
Minister and Finance
Minister informed
Director(s) will be required to keep the responsible Minister and
Finance Minister informed of all matters listed in s16 that occur
before 1 July (i.e. after 1 July a minister will not need to make a
new request under s19 of the PGPA Act – an existing request must
still be fulfilled).
s 17
Corporate plan for
Government Business
Enterprises’ (GBEs)
Will apply to the corporate plan requirements for the first
reporting period that a GBE makes after 1 July (i.e. a GBE’s
corporate plan for 2014-15 will be prepared under the CAC Act).
For 2015-16 the corporate plan will be prepared in accordance
with s35 of the PGPA Act.
ss 18(2) and
19(2)
Banking and
investment
Will apply after 1 July for money received before that time.
Money received after 1 July will be covered by ss 54 and 55 of the
PGPA Act for banking.
Surplus money will be treated as investments under section 59 of
the PGPA Act. This will cover fixed-term investments made before
1 July that has not matured before 1 July.
Finance Minister approvals for other investment types will be
preserved under the PGPA Act.
s 20
Accounting records
Will continue to apply after 1 July to accounting records made
before that time.
Over time the ordinary record-keeping requirements of the
Archives Act 1983 will supersede CAC Act requirements.
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Section of CAC
Act or CAC
regulation
ss 24 and 25
Subject
Proposed transitional arrangement
Duties of officials –
use of position and
information
Will continue to apply after 1 July to ensure that civil penalty
proceedings can be taken after 1 July even where it is not apparent
that misuse has happened before or after 1 July.
For misuse of position or information after 1 July, ss27 and 28 of
the PGPA Act will apply to officials. This will ensure that an official
cannot be found to have contravened ss27 or 28 by misusing his or
her position or information obtained before 1 July, even if the
effects of that misuse only become apparent after 1 July.
s 27C
Disqualification order Will ensure that any existing disqualification orders continue to
for contravention of
apply after 1 July. Civil Penalty provisions not exist under the PGPA
civil penalty
Act.
provisions
ss 27F and 27G
Duties of officials –
disclosures of
interests
ss 27F and 27G of the CAC Act only applied to the disclosure of
information by Directors. Any standing notices about material
personal interests that were given under the CAC Act will be saved
after 1 July (i.e. directors do not have to remake pre-1 July standing
notices).
After 1 July s 29 of the PGPA Act will broaden the duty to disclose
interests to all officials. Section 29 will apply to the actions of
officials before or after 1 July. A material personal interest arising
before 1 July should be disclosed as this could still pose a risk to
the Commonwealth entity if it is ongoing.
s 27L and
Schedule 2
Right of access to an
authority’s books
Will preserve a director’s access to a Commonwealth authority’s
books, for a director that is subject to civil penalty proceedings
after 1 July for contraventions that occurred before 1 July.
ss 27M and
27N
Indemnification and
exemption of officer
and insurance for
certain liabilities of
officers
Will maintain existing indemnities and contracts of insurance after
1 July, to ensure that these indemnities and contracts do not have
to be re-made on 1 July.
s 28
Cessation of General
Policy Orders
All General Policy Orders made under the CAC Act will cease to be
in force on 1 July. In addition any notifications made under s28
and preserved by the Commonwealth Authorities and Companies
Amendment Act 2008 will also cease to have effect.
The PGPA Act provides the opportunity to start afresh in relation to
the application of Australian Government policies to corporate
Commonwealth entities: after 1 July, a policy can be applied by a
government policy order made in accordance with s22 of the PGPA
Act.
New
New
Termination of
appointment (for the
accountable
authority or member
of an accountable
authority)
s30 of the PGPA Act will apply to all accountable authority
appointments, regardless of when those appointments occur.
Corporate plans
s35 of the PGPA Act will require all Commonwealth entities who
are not already required to prepare corporate plans by existing
This will ensure a consistent approach is taken when dealing with
breaches of duties and avoids situation in which only some board
members would be subject to s30 due to their appointment dates,
when a decision is made by the board collectively as the
accountable authority.
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Section of CAC
Act or CAC
regulation
Subject
Proposed transitional arrangement
legislation, to prepare their first corporate plan for reporting
periods commencing on or after 1 July 2015.
This requirement is not commencing until 1 July 2015:
 as the first complete reporting period that occurs immediately
after commencement of ss35 and 95 will be the 2015-16 year
and
 so that rules on corporate planning can be prepared in
consultation with stakeholders, including the Parliament and
Commonwealth entities and companies, during the second half
of 2014.
Any requirement in legislation other than the PGPA Act for a
Commonwealth entity to prepare a corporate plan (however
described) will continue for the 2014-15 financial year.
New
Annual performance
statements
ss 39 and 40 of the PGPA Act will require entity’s annual reports
to provide an assessment of performance against the matters
covered in their corporate plan for reporting periods commencing
on or after 1 July 2015 (as for corporate plans). The first
performance statements will need to be included in annual
reports presented to Parliament in October 2016.
This requirement is not commencing until after 1 July 2015:
 as the corporate plans on which the performance statements
will be based will not be available before mid-2015 and
 to enable consultation with key stakeholders, including the
Parliament, on the rules and information required to be met in
their preparation.
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