Senate

Explanatory Memorandum

(Circulated by authority of the Attorney-General, Senator the Honourable George Brandis QC)

General Outline

1. The Courts Administration Legislation Amendment Bill would bring the Federal Court of Australia (Federal Court), the Family Court of Australia (Family Court) and the Federal Circuit Court of Australia (Federal Circuit Court) into a single administrative entity and make legislative provision for the courts to share corporate services. The entity would also include the National Native Title Tribunal, which is currently within the Federal Court entity.

2. The Bill would implement the measure announced as part of the Government's 2015-16 Budget to merge the corporate services functions of the Federal Court with those of the Family Court and Federal Circuit Court. This measure formed part of the package of reforms aimed at streamlining and improving the financial sustainability of the federal courts.

3. The Bill would generate efficiencies through the establishment of shared corporate services functions for the courts to reduce unnecessary duplication, consistent with the Government's commitment to remove inefficiencies in public administration. These savings gained from reducing the administrative burden on each of the courts as they currently stand would then be reinvested to support the core functions of the courts.

4. The shared corporate services would be managed by the Federal Court Chief Executive Officer and Principal Registrar (CEO), which would allow for streamlining of existing services where appropriate, with the objective of placing the courts on a sustainable funding footing.

5. The courts' independence would be preserved in the Bill by maintaining their distinct statutory identities and retaining separate establishing legislation for each of the courts.

6. The Bill would primarily affect the courts' administrative and corporate operations through consolidating finance, human resources, information technology, and property and operations arrangements. It would not affect the substantive rights of court users.

7. This Bill would amend Commonwealth Acts including the:

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Federal Court of Australia Act 1976 (Federal Court Act)

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Family Law Act 1975

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Federal Circuit Court of Australia Act 1999 (Federal Circuit Court Act), and

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Native Title Act 1993.

8. The Bill would:

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establish shared corporate services functions for the Federal Court, Family Court and Federal Circuit Court, while preserving their statutory independence

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maintain heads of jurisdiction's responsibility in relation to business of the courts and managing the administrative affairs of their respective courts, with administrative affairs defined to exclude corporate services

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provide for a CEO for each head of jurisdiction to assist with the management of administrative affairs, which would mean the Family Court and Federal Circuit Court would no longer be required to share a CEO

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provide that the Federal Court CEO is responsible for managing the corporate services of each of the three courts through the shared corporate services function, with a requirement to consult each of the heads of jurisdiction and the other CEOs in relation to this function, and

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provide that the Federal Court CEO is the accountable authority for the administrative entity under the Public Governance, Performance and Accountability Act 2013 (the finance law) and the agency head for the purposes of the Public Service Act 1999, with provision for functions under these Acts to be delegated to the other two CEOs in relation to assisting with the administrative affairs of their respective courts.

9. In addition, the legislation would make the following changes:

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the titles of the Family Court Chief Judge and Family Court Deputy Chief Judge would be changed to 'Chief Justice' and 'Deputy Chief Justice'; titles which they are already legislatively entitled to use and by which they are already generally known, and

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merge the roles of the Family Court CEO and the Family Court Principal Registrar, with this change deferred until 1 January 2018 to provide a transitional period for the appointment of a person with appropriate expertise.

Financial Impact

10. The merging of the courts' corporate functions is expected to deliver efficiencies to the courts of $9.4 million over the six financial years to 2020-21 and result in ongoing annual efficiencies of $5.4 million from this time.