Review of Commonwealth Government Business Enterprises ...

2.11b(i) 3.14 The current disclosure requirements for the Statement on Governance
are outlined in the Commonwealth Authorities and Companies (Report of
Operations) Orders (the Orders). While the Orders only apply to Commonwealth
authorities, Commonwealth companies should, as a matter of better practice,
also include a Statement on Governance in their report on operations covering
the matters outlined in the Orders.
2.13 3.16 GBEs are to note that the Auditor-General may is able to conduct a performance
audit of a wholly owned GBE Commonwealth Authority GBE or a wholly-owned
Commonwealth Company GBE, or any of its subsidiaries in certain circumstances
in the circumstances outlined in the Auditor-General Act 1997.
3.5.5 The requirements for the preparation of Interim Reports are now detailed in the CAC Act
for both GBEs that are Commonwealth authorities and GBEs that are Commonwealth companies.
Finance proposes to update the GBE Guidelines to refect the requirements of the CAC Act.
Proposed Change:
2.14 The Finance Minister may require:
(a) the directors of a wholly owned GBE to prepare an interim report covering operations
for the frst six months, or for the frst three, six and nine months of each fnancial
year; and
(b) to provide it to the portfolio Minister within 2 months after the end of the period to
which the report relates.
3.17 The Finance Minister may require the directors of a wholly-owned GBE to prepare an
interim report in accordance with the requirements of the CAC Act.
3.6 Keeping Shareholder Minister(s) Informed
3.6.1 Shareholder Minister(s) are ultimately accountable to the taxpayers of the Commonwealth
for the performance of the GBEs. The transparency of GBE performance is important to
Shareholder Minister(s), and the principle of ‘no surprises’ is critical to the relationship
between the Shareholder Minister(s) and GBE boards. The relationship between offcials
and the senior management of GBEs is also critical to the free fow of information required
to keep the Shareholder Minister(s) informed and for any business initiatives the GBEs may
wish to undertake.
3.6.2 Paragraph 2.17 of the current GBE Guidelines provides that GBEs follow a disclosure principle
that is similar to the continuous disclosure requirements of the ASX Listing Rules. 38
3.6.3 However, the ASX listing rules are designed for publicly-listed entities whose shares are
traded daily on the ASX. As government-owned entities, GBEs are subject to a different
governance and accountability framework compared to ASX listed entities, including the
CAC Act and associated instruments. For example, sections 15 and 16, 40 and 41 of the
CAC Act, for Commonwealth authorities and companies respectively, require entities to
notify the Responsible Minister(s) of signifcant events.
Exposure Draft
3.6.4 Accordingly, Finance proposes to supplement any reference to the disclosure requirements
of the ASX Listing Rules with the requirements with the CAC Act.
38 The continuous disclosure requirements for ASX listed entities are covered under Chapter 3 ‘Continuous Disclosure’ of the ASX Listing Rules
http://www.asxgroup.com.au/asx-listing-rules-guidance-notes-and-waivers.htm
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