AUDIT REGULATIONS (AMENDMENT) 1993 NO. 58

AUDIT REGULATIONS (AMENDMENT) 1993 NO. 58

Statutory Rules 1993 No. 58

Issued by the Authority of the Minister for Finance

Audit Act 1901

Audit Regulations (Amendment)

Sub-section 7 1 (1) of the Audit Act 1901 (the Act) provides that the Governor-General may make regulations for the purposes of the Act. The attached statutory rules amend the Audit Regulations ("the Regulations") made pursuant to the Act.

Section 70BA of the Act provides that the Regulations may declare an authority, a body or a company in which the Commonwealth has a controlling interest, to be subject to the section The effect of such a declaration is that, where tile Auditor-General is required by the Act or other legislation to submit a report on an authority, body or company, the Auditor-General may authorise an officer to sign that report on the Auditor-General's behalf and when the report is submitted, it shall be taken to have been submitted by the Auditor-General. Currently the Audit Regulations declare Qantas and certain of its subsidiaries to be companies to which section 70BA applies.

Following the privatisation of Qantas, the Commonwealth will no longer have an equity interest in Qantas and accordingly its accounts will no longer be able to be audited by the AuditorGeneral. It will also no longer be capable of being the subject of other reports under the Act which relate specifically to Commonwealth controlled companies such as efficiency audits which are performed pursuant to Division 2 of Part VI of the Act. Part 1 of the Schedule to the Qantas Sale Act 1992 will amend that Division of the Act to remove Qantas and its subsidiaries from the definition of eligible incorporated company. It is intended that the amendment will commence with effect from the sale of 25% of Qantas which occurred on 10 March 1993.

Once the airline is fully privatised, and it no longer fails within the ambit of any part of the Audit Act (not just Division 2), the references to Qantas and its subsidiaries in the Audit Regulations will no longer have effect and accordingly should be omitted following the 100% sale of the Airline.

To this end, these Regulations would amend the Regulations to remove the names listed below from Schedule 3:

Australian Pacific Distribution Limited

Australian Asia Airlines Ltd

Qantair Lid

Qantas Airways Lid

Qantas Distribution Services Ltd

Qantas Flight Catering Ltd

Qantas Flight Catering Holdings Ltd

Qantas Information Technology Ltd

Qantas Jetabout Holidays Ltd

Qantas Superannuation Ltd

QH Cruises Pty Ltd

Q.H. Tours Ltd

VIVA! Holidays Ltd

The commencement of these Regulations is tied to Part 7 of the Schedule to the Qantas Sale Act 1992 which will commence on or after the sale of 100% of the Commonwealth's equity interest in Qantas.