Commonwealth of Australia Explanatory Memoranda

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GREAT BARRIER REEF MARINE PARK AMENDMENT BILL 2007

                             2004-2005-2006-2007




     THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                       HOUSE OF REPRESENTATIVES




  GREAT BARRIER REEF MARINE PARK AMENDMENT BILL 2007




                     EXPLANATORY MEMORANDUM




(Circulated by authority of the Minister for the Environment and Water Resources,
                     the Honourable Malcolm Turnbull MP)


GREAT BARRIER REEF MARINE PARK AMENDMENT BILL 2007 GENERAL OUTLINE The purpose of this Bill is to amend the Great Barrier Reef Marine Park Act 1975 (the Act) in order to implement key recommendations of a 2006 Review of the Act. In particular, the Bill: · Makes amendments required as a consequence of applying the Financial Management and Accountability Act 1997 to the operations of the Great Barrier Reef Marine Park Authority (the Authority), in place of the Commonwealth Authorities and Companies Act 1997. The former Act is more appropriate given the operations of the Authority are to provide advisory, regulatory, management and service delivery functions and are primarily funded with public money. · Puts in place changes to the governance arrangements of the Authority in light of the 2003 report to government by Mr John Uhrig AC, Review of the Corporate Governance of Statutory Authorities and Office Holders. These changes will ensure corporate governance of the Authority is consistent with best practice. · Establishes a requirement for a periodic "Great Barrier Reef Outlook Report". This Report will provide a regular and reliable means of assessing performance in the long-term protection of the Great Barrier Reef. In so doing, it will inform management and policy and promote transparency and accountability. · Establishes statutory provisions directed at ensuring the development of zoning plans for the Marine Park is done in a transparent and accountable manner, is based on robust scientific and socio-economic information and appropriately involves communities, users of the Marine Park and other interested persons and organisations. · Abolishes the Great Barrier Reef Consultative Committee, which will be replaced by a non-statutory advisory board reporting directly to the Minister. FINANCIAL IMPACT STATEMENT The Bill will have no financial impact. 2


NOTES ON INDIVIDUAL CLAUSES Clause 1 - Short title 1. The clause provides that the short title by which the Act may be cited is the Great Barrier Reef Marine Park Amendment Act 2007. Clause 2 - Commencement 2. This clause provides that the Act will commence on 1 July 2007. This commencement date is timed to coincide with the start of the 2007-08 financial year in order to allow a more orderly transition by the Authority to new financial management arrangements. Clause 3 - Schedules This clause provides that each Act specified in a Schedule is amended or repealed as 3. set out in the applicable items in the Schedule, and other items in a Schedule has effect according to its terms. SCHEDULE 1 - AMENDMENTS Great Barrier Reef Marine Park Act 1975 Item 1 - Subsection 3(1) (definition of Committee) 4. This item amends subsection 3(1) to remove the definition of "Committee". This definition refers to the Great Barrier Reef Consultative Committee established under Part IV of the Act. This item is required as a consequence of Item 17 which repeals Part IV of the Act, thereby abolishing the Committee. Item 2 - Subsection 3(1) 5. This item amends subsection 3(1) to insert a definition of "Great Barrier Reef World Heritage Area". Definition of this term is necessitated by amendments proposed in Item 32, which establish provisions relating to the World Heritage Area. The item defines the "Great Barrier Reef World Heritage Area" as the area described in Schedule 1 to the Act. This schedule sets out geographical coordinates identical to those identified in the entry of the Great Barrier Reef on the World Heritage List established under Article 11 of the Convention Concerning the Protection of the World Cultural and Natural Heritage, 1972. Item 3 - Paragraph 7(1)(cb) 6. This item removes the words "for payment to the Authority" from paragraph 7(1)(cb). From 1 July 2007, the Financial Management and Accountability Act 1997 (FMA Act) will apply to the Authority. Therefore, as the Authority will only receive and hold money for and on behalf of the Commonwealth, this item is required as a consequence. Item 4 - Subsection 7(3) 7. This item repeals subsection 7(3). This subsection requires the Authority to disclose the particulars of any directions given to the Authority by the Minister under 3


subsection 7(2) in the annual report it is required to produce under section 9 of the Commonwealth Authorities and Companies Act 1997 (CAC Act). From 1 July 2007, the FMA Act will apply to the Authority. Section 9 of the CAC Act will therefore no longer apply. However, Item 32 inserts a new section 53 into the Act requiring the Authority to produce an annual report, which, consistent with the current subsection 7(3), must include the particulars of any directions given to the Authority by the Minister under subsection 7(2) of the Act. Item 5 - Paragraph 8(1)(a) 8. This item amends paragraph 8(1)(a) to clarify, in conjunction with the provisions proposed by Item 11, that the Authority has the power to enter into contracts, agreements, arrangements and understandings of a legal nature for and on behalf of the Commonwealth, and not in its own right. This change is required as a consequence of the application of the FMA Act to the Authority. Item 6 - At the end of paragraph 8(1)(b) 9. This item is of an administrative nature to include the word "and" at the end of paragraph 8(1)(b). Item 7 - Paragraph 8(1)(c) 10. This item amends paragraph 8(1)(c) to clarify, in conjunction with the provisions proposed by Item 11, that the Authority has the power to acquire, hold and dispose of real property for and on behalf of the Commonwealth, and not in its own right. This change is required as a consequence of the application of the FMA Act to the Authority. Item 8 - At the end of paragraph 8(1)(c) 11. This item is of an administrative nature to include the word "and" at the end of paragraph 8(1)(c). Item 9 - Paragraph 8(1)(d) 12. This item repeals paragraph 8(1)(d) to remove the capacity of the Authority, in its own right, to accept gifts, devises and bequests on trust or otherwise. As a consequence of Item 11, gifts, devises and bequests can continue to be made, but to the Commonwealth, rather than the Authority. Such resources could then be made available to the Authority subject to a special account or "net appropriation agreement" established under the FMA Act. These changes are required as a consequence of the application of the FMA Act to the Authority. Item 10 - Subsection 8(2) 13. This item repeals subsection 8(2) to remove the capacity of the Authority, in its own right, to hold property on trust. Instead, any property the Authority would otherwise hold on trust will be held on trust by the Commonwealth. This change required as a consequence of the application of the FMA Act to the Authority. Item 11 - At the end of section 8 14. This item inserts new subsections 8(4), (5), (6), (7) and (8) into the Act. The new subsections are required as a consequence of the application of the FMA Act to the 4


Authority. In particular, the provisions clarify that any contract, agreement, arrangement or undertaking entered into by the Authority is entered into on behalf of the Commonwealth, and that the Authority receives, holds and deals with and real or personal property and money for and on behalf of the Commonwealth rather that in its own right. The item also clarifies that the Authority cannot hold property on trust, rather, any real or personal property or money held on trust would be held by the Commonwealth. Subject to trust terms, those resources could then be made available to the Authority through mechanisms available under the FMA Act. Item 12 - At the end of Part II 15. This item inserts new sections 8A and 8B into the Act. 16. New section 8A clarifies that any financial liabilities of the Authority prior to the commencement of this Bill are taken to be liabilities of the Commonwealth. This provision is required as a result of the application of the FMA Act to the Authority (the effect of which is that the Authority will act on behalf of the Commonwealth in relation to financial matters, rather than in its own right). A definition of financial liability has also been inserted to aid in the interpretation of this section. 17. New section 8B provides that the Chairperson is not subject to direction by other members of the Authority in performing functions as Chief Executive Officer under the FMA Act and Agency Head under the Public Service Act 1999. This provision ensures the Chairperson is not subject to potentially conflicting legal roles, responsibilities and accountabilities. Item 13 - Subsection 9(1) (note) 18. This item repeals the note to subsection 9(1). The note relates to the application of the CAC Act to the Authority. This Act will no longer apply given application of the FMA Act to the Authority from 1 July 2007. Item 14 - Paragraphs 10(1)(b) and (c) 19. This item repeals and replaces paragraphs 10(1)(b) and (c) with a new paragraph 10(1)(b) to provide that the Authority must comprise, in addition to the Chairperson, at least two, but no more than four other members. This expands the maximum size of the Authority by one member. It also removes a requirement for one appointment to be done on a representational basis. Such appointments are contrary to best practice, as the appointee may be more concerned with the interests they represent, than those of the Authority. Item 9 of Schedule 2 will ensure that all appointments of members of the Authority immediately before the commencement of this Bill will remain in effect until the expiry of the term of appointment. Item 15 - Paragraph 16(2)(e) 20. This item repeals paragraph 16(2)(e) and substitutes an alternative provision of similar effect. The current paragraph allows for the termination of members of the Authority if they fail to comply with provisions of the CAC Act relating to the disclosure of conflicts of interest. As of 1 July 2007, the CAC Act will no longer apply to the Authority. Item 16 imposes new obligations related to the disclosure of conflicts of interest. The change to paragraph 16(2)(e) will allow for the termination of members if they fail to comply with these new provisions. 5


Item 16 - Section 16A 21. This item repeals section 16A and replaces it with new sections 16A and 16B relating to the disclosure of conflicts of interest. Section 16A currently requires the Chairperson to disclose relevant interests. Further, all Authority members are currently required to comply with provisions of the CAC Act relating to the disclosure of conflicts of interest. As of 1 July 2007, the CAC Act will no longer apply to the Authority. New sections 16A and 16B proposed by this item will require timely disclosure and appropriate management of all "material personal interests" that could conflict with the proper performance of the member's functions under the Act. This includes interests whether they are direct, indirect, pecuniary or non-pecuniary in nature and whether such interests were acquired before or after a member's appointment. The new provisions draw on the provisions of the CAC Act currently applying to the Authority. 22. New section 16B also sets out the process that the Authority must follow when a member has a material personal interest in a matter being considered, or about to be considered, by the Authority. Item 17 - Part IV 23. This item repeals Part IV of the Act. This Part provides for the establishment and operation of the Great Barrier Reef Consultative Committee. The Committee is to be replaced by a non-statutory advisory board, reporting directly to the Minister responsible for the Act. Item 18 - At the end of paragraph 32(2)(a) 24. This item is of an administrative nature to include the word "and" at the end of paragraph 32(2)(a). Item 19 - Paragraph 32(2)(b) 25. This item amends paragraph 32(2)(b) to require that a minimum of three months is provided for comment by interested persons in relation to a notice issued by the Authority under subsection 32(2) stating that the Authority intends to prepare a zoning plan in respect of an area. This increases the minimum period for comment from one month to three. Item 20 - At the end of subsection 32(2) 26. This item amends subsection 32(2) to insert a new paragraph 32(2)(d), which specifies additional matters that must be included in any notice issued by the Authority under subsection 32(2) stating that the Authority intends to prepare a zoning plan in respect of an area. Item 27 establishes new requirements for the Authority to prepare and publicly release operational principles that will guide the development of zoning and a report on the environmental, economic and social values of the area that is the subject of zoning. The amendments proposed by this item will require the Authority, as a part of the notice required under subsection 32(2), to notify the public that this information is available and where it may be obtained. 6


Item 21 - After subsection 32(6) 27. This item adds a new subsection 32(6A) into the Act. Item 27 will require the Authority to prepare operational principles to guide the development of a zoning plan. The effect of this item is to require the Authority to have regard to those operational principles when developing that zoning plan. Item 22 - At the end of paragraph 32(8)(a) 28. This item is of an administrative nature to include the word "and" at the end of paragraph 32(8)(a). Item 23- Paragraph 32(8)(b) 29. This item amends paragraph 32(8)(b) to require that a minimum of three months is provided for comment by interested persons in relation to a notice issued by the Authority under subsection 32(8) inviting interested persons to make representations in relation to a draft zoning plan. This increases the minimum period for comment from one month to three. Item 24 - At the end of paragraph 32(8)(b) 30. This item is of an administrative nature to include the word "and" at the end of paragraph 32(8)(b). Item 25 - At the end of subsection 32(8) 31. This item amends subsection 32(8) to insert a new paragraph 32(8)(e), which specifies an additional matter that must be included in any notice issued by the Authority under that subsection. Item 27 establishes a new requirement for the Authority to prepare and publicly release a report on the expected environmental, economic and social impacts of the draft zoning plan released for public comment. The amendments proposed by this item will require the Authority, as a part of the notice required under subsection 32(8), to notify the public that this information is available and where it may be obtained. Item 26 - At the end of section 33 32. This item inserts a new subsection 33(7) into the Act which will establish a requirement for the Authority, as a final step in zoning plan development, to produce and publicly release a report on the manner in which the final zoning plan addresses the operational principles approved under section 34 (inserted by item 27). This requirement is designed to ensure a high degree of transparency and accountability around the development of zoning plans by the Authority. Item 27 - After section 33 33. This item will insert new sections 34 and 35 into the Act which prescribe additional procedural requirements for the development of zoning plans. 34. New section 34 will require the Authority, as a first step in the amendment of an existing zoning plan or the development of a new zoning plan, to prepare and publicly release "operational principles" setting out the environmental, economic and social objectives that will guide the development of that particular zoning plan. The Minister will approve and may alter the principles, but a report on any such 7


alterations must be tabled in Parliament along with the final zoning plan. These requirements reflect the fact that the operational principles are fundamental to the development of a zoning plan - they provide the policy parameters the zoning plan will seek to achieve. Disclosure of any changes made by the Minister to the principles is considered appropriate, as the Act reflects an intention that the Authority exercise a degree of independence in the development of zoning. 35. As the operational principles are only intended as a step in the process for the development of a zoning plan, and will have no legal effect following the development of a particular zoning plan, new subsection 34(11) clarifies that the principles are not a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LI Act). The operational principles are not of a legislative character in that they will not determine or alter the content of the law. Therefore, this provision has been inserted into the Act as an aid to interpretation, rather than establishing an exemption to the provisions of the LI Act. 36. New section 35 will require the Authority to prepare and publicly release a statement of the environmental, economic and social assessments of relevance to zoning plan development or amendment. At the time the Authority issues a notice under subsection 32(2) of the Act announcing its intention to develop a zoning plan, it will be required to publicly release information on the environmental, economic and social values of the area that is the subject of the zoning proposal. At the time the Authority issues a notice under subsection 32(8) inviting comments on a draft zoning plan, it will be required to release information on the expected environmental, economic and social effects of the zoning plan. These requirements are directed at ensuring there is appropriate information in the public domain during the development of zoning so as to increase transparency and facilitate informed public engagement. 37. The statement will set out the environmental, economic and social values of the area prior to the development of a zoning plan, and will be used to inform the development of the plan and public input into zoning development. As the statement is not of a legislative character, and does not determine or alter the content of the law, new subsection 35(4) clarifies that the statement is not a legislative instrument for the purposes of the LI Act. This provision is merely declaratory in nature, and does not establish an exemption to the provisions of the LI Act. Item 28 - Section 37 38. This item replaces section 37 of the Act, which currently deals with the amendment and revocation of a zoning plan. The new section 37 will provide that the process to amend or replace an existing zoning plan cannot commence until at least seven years from the date the plan, or any amendments to the plan (whichever is later), came into effect. Further, prior to issuing the notice under subsection 32(2) announcing an intention to amend or prepare a new zoning plan, the Authority must first obtain the approval of the Minister. 39. New section 37 will also require the Authority to prepare and publicly release a report, drawing on relevant environmental, social and economic information, setting out the rationale for any proposal to amend or revoke an existing zoning plan. The Authority will be required to notify the public that the report is available and where it may be obtained as a part of the notice issued under subsection 32(2) announcing an 8


intention to amend an existing zoning plan or prepare a new zoning plan. Production of the report is intended to provide a high degree of transparency around any decision to amend or replace an existing zoning plan. 40. As this report will provide the rationale for the amendment or revocation of a zoning plan, it is not of a legislative character as it does not determine or alter the content of the law. Therefore, new subsection 37(7) clarifies that the report is not a legislative instrument for the purposes of the LI Act. This provision is merely declaratory in nature, and does not establish an exemption to the LI Act. 41. The item also inserts new section 37A into the Act which establishes a process for the amendment of a zoning plan for the purpose of correcting typographical errors, for example, incorrectly transcribed geographical coordinates. Such amendments would be made by the Authority with the approval of the Minister. The procedural requirements relating to the development of zoning plans in section 32 and proposed in item 27 will not apply to such amendments. Any amendments to a zoning plan made under this new section will still be subject to the Parliamentary disallowance processes as set out in section 33 of the Act. Item 29 - Section 39I 42. This item repeals section 39I of the Act and replaces it with a new section. Section 39I currently provides that money collected by or otherwise paid to the Authority as a result of the Environmental Management Charge (EMC) scheme be paid to the Commonwealth. Given the application of the FMA Act to the Authority and the changes proposed in items 7 and 11, all money received by the Authority will, in the future, be received for and on behalf of the Commonwealth. New section 39I reflects these changed arrangements, but otherwise retains provisions of the same practical effect as at present. This includes the retention of a standing appropriation in relation to EMC revenues raised. The EMC is a scheme to collect money from tourists to and specified commercial operations in the Great Barrier Reef Marine Park to help meet the costs of managing and protecting the Park. The standing appropriation ensures EMC collected is used for that purpose, by providing an appropriation authority for the purpose of the performance of the functions of the Authority. Further, the amount appropriated is dictated by the amount of EMC collected from Park users. Given these considerations, the use of a standing appropriation is considered appropriate. 43. The item also includes a note referring to subsection 28(2) of the FMA Act. The purpose of this note is to clarify that, if a refund of an amount of EMC is required, section 28 of the FMA Act provides the appropriation authority for the refund. Subsection 39I(2) then provides that the Authority's appropriation under subsection 39I(1) is decreased by the amount of the refund provided. Item 30 - Section 39KA 44. This item repeals section 39KA. This section currently provides that the FMA Act does not apply in relation to money collected or otherwise payable as a part of the EMC scheme. This item is required as a consequence of item 31, which will result in the FMA Act applying to the Authority in relation to this public money, but not to the tourism operators collecting the charge from tourists to the Great Barrier Reef Marine Park on behalf of the Commonwealth. 9


Item 31 - After Division 5 of Part VA 45. This item inserts a new Division 5A (Application of the Financial Management and Accountability Act 1997) and new section 39QA into the Act. 46. The purpose of new section 39QA is to clarify the application of the FMA Act to money collected or otherwise payable as part of the EMC scheme. New section 39QA will ensure that tourism operators collecting the EMC from tourists on behalf of the Commonwealth are not subject to the requirements of the FMA Act. However, once the EMC has been provided to the Authority (as required by section 39FD of the Act), the FMA Act will apply once the money has been received by the Authority, and the Authority will be responsible for meeting the requirements of the FMA Act with respect to that money. 47. New section 39QA also maintains the ability for the tourism operators to retain any interest earned on EMC amounts they collect in the period between collection and acquittal to the Authority, but clarifies that the FMA Act does not apply with respect to any interest earned. Item 32 - Part VII 48. This item repeals the existing Part VII (Finance) and replaces it with a new Part VII (Finance and reporting requirements) and inserts new sections 49, 50, 51, 52, 53 and 54 into the Act. This item is required as a consequence of the application of the FMA Act to the Authority in the place of the CAC Act. 49. New section 49 establishes the Great Barrier Reef Field Management Special Account pursuant to section 21 of the FMA Act. This account will be used to facilitate the long-standing collaborative approach to field management of the Great Barrier Reef World Heritage Area by the Australian and Queensland governments. Under these arrangements, which are underpinned by a series of inter-governmental agreements, funding for field management is shared by the two governments, with expenditure in accordance with an agreed programme. The special account will ensure that both Queensland and Commonwealth government money allocated for this purpose is partitioned, and used only for the purposes agreed by the two governments (as set out in new sections 51 and 52). The special account will also enhance transparency and accountability, providing greater assurance to both governments that money set aside for field management will be spent for the purpose intended and in an efficient, effective and ethical manner, as required by the FMA Act. 50. This item establishes a requirement for the Authority to produce an annual report and a five-yearly "Great Barrier Reef Outlook Report". The requirement for an annual report is necessitated by the application of the FMA Act to the Authority, in the place of the CAC Act. 51. The requirement for a Great Barrier Reef Outlook Report is designed to provide for a periodic evaluation of the condition of and outlook for, the Great Barrier Reef. The report will be prepared by the Authority every five years, with the first report to be produced by 30 June 2009. New section 54 specifies the matters that must be addressed in the report and will require the report undergo a peer-review (such 10


persons to be appointed by the Minister) prior to the report being provided to the Minister and tabled in both Houses of the Parliament. 52. This item also inserts new section 55 which clarifies that the Authority is exempt from taxation. This new section reflects the exemption currently specified in section 59 of the Act. Item 33 - Subsection 61A(5) 53. This item repeals subsection 61A(5) of the Act. This subsection requires the Authority to disclose in its annual report required by section 9 of the CAC Act, the particulars of any directions given to the Authority by the Minister under subsection 61A(4), relating to actions to remedy, mitigate and/or prevent damage resulting from an action believed to constitute a contravention of the Act. From 1 July 2007, the FMA Act will apply to the Authority. Section 9 of the CAC Act will therefore no longer apply. New section 53 (inserted by item 32) sets out the requirement for the Authority to prepare an annual report, which, consistent with the current subsection 61A(5), must include the particulars of any directions given to the Authority by the Minister under subsection 61A(4) of the Act. Item 34 - Paragraph 66(2)(u) 54. This item amends paragraph 66(2)(u) of the Act to clarify that when the Governor- General makes regulations providing for the grant or issue of licences, permissions, permits and authorities and the conditions subject to which they are granted or issued, this may also include a requirement to enter into an agreement with the Commonwealth. This item is required as a consequence of items 5 and 11 above, and as a result of the application of the FMA Act to the Authority from 1 July 2007 SCHEDULE 2 - APPLICATION AND TRANSITIONAL PROVISIONS Part 1 - Definitions Item 1 - Definitions 55. This item defines a number of terms used for the purposes of this Schedule. Part 2 - Assets, liabilities and legal proceedings Item 2 - Existing property, money and financial liabilities 56. The purpose of this item is to clarify that all real or personal property and money held by the Authority at the time of commencement (defined as the time when Schedule 2 commences) is taken to by held by the Authority for and on behalf of the Commonwealth. The item provides an appropriation authority necessary to achieve this transition. The use of a special appropriation in this context is considered appropriate given it will provide a once-off appropriation directed only at maintaining the current level of resources currently available to the Authority through previously provided appropriations. 57. The item also provides that any financial liabilities of the Commonwealth existing at the time of commencement are taken to be liabilities of the Commonwealth. This item 11


is required as a consequence of the application of the FMA Act to the Authority from 1 July 2007. Item 3 - Vesting of assets held on trust by the Authority 58. This item provides that any assets held on trust by the Authority at the time of commencement will become assets held on trust by the Commonwealth. This provision is required as a consequence of the application of the FMA Act to the Authority from 1 July 2007. The FMA Act includes mechanisms to ensure the assets in question will continue to be made available to the Authority, subject to the terms of the trust. Item 4 - Vesting of liabilities relating to assets held on trust 59. This item provides that any liabilities of the Authority relating to assets held on trust by the Authority at the time of commencement are liabilities of the Commonwealth. This item provides that any assets held on trust by the Authority at the time of commencement will become assets held on trust by the Commonwealth. This provision is required as a consequence of the application of the FMA Act to the Authority from 1 July 2007. Item 5 - Contracts etc, 60. This item provides that any contracts, agreements, arrangements and understandings of a legal nature entered into by the Authority and in force at the time of commencement have effect after that time as if entered into by the Authority for and on behalf of the Commonwealth. This provision is required as a result of the application of the FMA Act to the Authority from 1 July 2007. Item 6 - Certificates relating to vesting of land 61. This item provides that, where land has become vested in the Commonwealth as a result of this Schedule, a certificate attesting to that fact may be presented to a land registration official for the purpose of registering or otherwise giving effect to the certificate. Item 7 - Certificates relating to vesting of assets other than land 62. This item provides that, where assets other than land have become vested in the Commonwealth as a result of this Schedule, a certificate attesting to that fact may be presented to an assets registration official for the purpose of registering or otherwise giving effect to the certificate. Item 8 - Substitution of Commonwealth as a party to pending proceedings 63. This item provides that the Commonwealth is substituted for the Authority from the commencement time as a party to any legal proceedings relating to an asset held on trust by the Authority immediately before the commencement time. 12


Part 3 - Membership of the Authority Item 9 - Membership of the Authority 64. This item provides for the continuation of the current appointments of members of the Authority that are in effect immediately prior to the commencement time until the expiration of their terms of appointment. Part 4 - Zoning plans Item 10 - Zoning Plans 65. This item provides that the amendments made by item 28 of Schedule 1 apply in relation to the existing zoning plan. As a consequence, a process to amend or replace the Great Barrier Reef Marine Park Zoning Plan 2003, which came into effect on 1 July 2004, may not be commenced (through the issuing of a notice under subsection 32(2)) until at least 1 July 2011. Part 5 - Reporting requirements and records Item 11 - Reporting Requirements 66. This item requires the Chairperson of the Authority to provide all reports required by law to be prepared immediately prior to commencement. Item 12 - Access to Records 67. This item provides that, for the purposes of subsection 27L(4) of the CAC Act as it relates to the books of the Authority, a reference to a Commonwealth authority should, following commencement, be read as a reference to the Chairperson. Consequently, the Chairperson, and not the Authority, will be required to provide access to the books of the Authority prepared under the CAC Act as provided for by section 27L of that Act. Item 13 - Continuing obligation to keep records 68. This item provides that section 20 of the CAC Act continues to apply in relation to the accounting records kept by the Authority under that section prior to the commencement time. Part 6 - Other matters Item 14 - Exemption from stamp duty and other State or Territory taxes 69. This item provides that no stamp duty or other tax is payable in respect of or in relation to the operation of this Schedule or the transfer of an asset or liability as provided for by this Schedule. This reflects the fact that any such transfers are the result of a technical requirement arising from the application of the FMA Act to the Authority. Item 15 - Constitutional safety net - acquisition of property 70. This item provides that, if the operation of this Schedule would result in an acquisition of property from a person other than on just terms, the Commonwealth is 13


liable to pay a reasonable amount of compensation to the person. If necessary, a court of competent jurisdiction may determine the amount of compensation payable. Item 16 - Certificates taken to be authentic 71. This item provides that a document appearing to be a certificate made in accordance with this Schedule is taken to be authentic unless the contrary is established. Item 17- Delegation by Minister 72. This item empowers the Minister to delegate his or her powers and functions under this Schedule to the Chairperson of the Authority. Item 18 - Regulations 73. This item empowers the Governor-General to make regulations prescribing matters required or permitted by this Schedule or necessary or convenient for carrying out or giving effect to this Schedule, including regulations prescribing matters of a transitional nature relating to the amendments or repeals made by Schedule 1. 14


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