Senate

Revised Explanatory Memorandum

(Circulated with the authority of the Minister for Finance and Deregulation, Senator the Hon Penny Wong)

IV. Notes on Schedule 1 - Amending the Commonwealth Authorities and Companies Act 1997

24. This Schedule seeks to improve the readability of the Commonwealth Authorities and Companies Act 1997 (CAC Act) by moving particular operational provisions into the Commonwealth Authorities and Companies Regulations 1997 (CAC Regulations).

25. An explanation of the amendments proposed in Schedule 1 is provided in sequential order.

Corporate plan of a Commonwealth authority that is a Government Business Enterprise (GBE)

26. Item 1 amends subsection 17(4) of the CAC Act to provide that, if a Commonwealth authority GBE has subsidiaries, the corporate plan of that authority must include details for each subsidiary of the matters specified by the CAC Regulations, where applicable, rather than the matters specified under subsection 17(6).

27. Item 2 replaces subsection 17(6) of the CAC Act, which sets out the matters that must be detailed in the corporate plan for a Commonwealth authority GBE. This item inserts a new subsection that enables the matters that the corporate plan for a Commonwealth authority GBE must include (where those matters apply) to be specified in the CAC Regulations. Transferring the content requirements of a Commonwealth authority GBE's corporate plan from the CAC Act to the CAC Regulations allows the content requirements to be consolidated in one place, and enables the CAC Act to be read more easily.

28. As a result of the amendment to subsection 17(6) of the CAC Act by item 2, item 3 makes a consequential amendment to subsection 17(7) of the CAC Act to provide that the corporate plan of a Commonwealth authority GBE must also cover other matters required by the responsible Minister, which may include further details about the matters specified in the CAC Regulations (rather than specified under subsection 17(6) of the CAC Act).

Corporate plan of a Commonwealth company that is a GBE

29. Item 4 amends subsection 42(4) of the CAC Act to provide that, if a Commonwealth company GBE has subsidiaries, the corporate plan of that company must include details for each subsidiary of the matters specified by the CAC Regulations, where applicable, rather than the matters specified under subsection 42(6).

30. Item 5 replaces subsection 42(6) of the CAC Act, which sets out the matters that must be detailed in the corporate plan for a Commonwealth company GBE. This item inserts a new subsection that enables the matters that the corporate plan for a Commonwealth company GBE must include (where those matters apply) to be specified in the CAC Regulations. Transferring the content requirements of a Commonwealth company GBE's corporate plan from the CAC Act to the CAC Regulations allows the content requirements to be consolidated in one place, and enables the CAC Act to be read more easily.

31. As a result of the amendment to subsection 42(6) of the CAC Act by item 5, item 6 makes a consequential amendment to subsection 42(7) of the CAC Act to provide that the corporate plan of a Commonwealth company GBE must also cover other matters required by the responsible Minister, which may include further details about the matters specified in the CAC Regulations (rather than specified under subsection 42(6) of the CAC Act).

Application

32. Item 7 provides that the amendments made by items 1 to 6 apply to corporate plans prepared on or after the commencement of item 7 . Item 7 will commence on the same day that items 1 to 6 commence.