{"id":"C2008A00061","name":"Governance Review Implementation (AASB and AUASB) Act 2008","slug":"governance-review-implementation-aasb-and-auasb-act-2008","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"61 of 2008","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":8054,"registerId":"commonwealth-C2008A00061-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Governance Review Implementation (AASB and AUASB) Act 2008","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nGovernance Review Implementation (AASB and AUASB) Act 2008\n\n \n\nNo. 61, 2008\n\n \n\n \n\n \n\n \n\n \n\nAn Act to amend the Australian Securities and Investments Commission Act 2001, and for related purposes\n\n \n\n \n\nContents\n\n1 Short title\n\n2 Commencement\n\n3 Schedule(s)\n\nSchedule 1—Amendments\n\nAustralian Securities and Investments Commission Act 2001\n\nSchedule 2—Transitional provisions\n\nPart 1—Definitions\n\nPart 2—Assets, liabilities and legal proceedings\n\nPart 3—Reference to, and things done by or in relation to, the AASB or the AUASB\n\nPart 4—Staff and consultants\n\nPart 5—Other matters\n\n \n\n![](image.001.png)\n\n \n\n \n\nGovernance Review Implementation (AASB and AUASB) Act 2008\n\nNo. 61, 2008\n\n \n\n \n\n \n\nAn Act to amend the Australian Securities and Investments Commission Act 2001, and for related purposes\n\n[Assented to 30 June 2008]\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act may be cited as the Governance Review Implementation (AASB and AUASB) Act 2008.\n\n2  Commencement\n\n  This Act commences on the first 1 July occurring on or after the day on which this Act receives the Royal Assent.\n\n3  Schedule(s)\n\n  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.\n\n\n\n\nSchedule 1—Amendments\n\n \n\nAustralian Securities and Investments Commission Act 2001\n\n1  Subsection 5(1)\n\nInsert:\n\nOffice of the AASB means the Office of the Australian Accounting Standards Board.\n\n2  Subsection 5(1)\n\nInsert:\n\nOffice of the AUASB means the Office of the Auditing and Assurance Standards Board.\n\n3  Before section 225\n\nInsert:\n\nSubdivision A—The Financial Reporting Council\n\n4  Paragraph 225(2)(b)\n\nRepeal the paragraph, substitute:\n\n (b) giving the AASB advice or feedback on the AASB’s:\n\n (i) priorities; and\n\n (ii) business plans; and\n\n (iii) procedures; and\n\n (ba) giving the Office of the AASB advice or feedback on the Office’s:\n\n (i) budgets; and\n\n (ii) staffing arrangements (including level, structure and composition of staffing); and\n\n5  Paragraph 225(2)(d)\n\nRepeal the paragraph.\n\n6  Paragraph 225(2)(j)\n\nOmit “and periodically reviewing”.\n\n7  Paragraph 225(2)(j)\n\nOmit “the AASB”, substitute “those processes”.\n\n8  Paragraph 225(2A)(b)\n\nRepeal the paragraph, substitute:\n\n (b) giving the AUASB advice or feedback on the AUASB’s:\n\n (i) priorities; and\n\n (ii) business plans; and\n\n (iii) procedures; and\n\n (ba) giving the Office of the AUASB advice or feedback on the Office’s:\n\n (i) budgets; and\n\n (ii) staffing arrangements (including level, structure and composition of staffing); and\n\n9  Paragraph 225(2A)(d)\n\nRepeal the paragraph.\n\n10  Paragraph 225(2A)(j)\n\nOmit “and periodically reviewing”.\n\n11  Paragraph 225(2A)(j)\n\nOmit “the AUASB”, substitute “those processes”.\n\n12  Section 226\n\nRepeal the section, substitute:\n\nSubdivision B—The Australian Accounting Standards Board and the Office of the Australian Accounting Standards Board\n\n226  The Office of the Australian Accounting Standards Board\n\n (1) The Office of the Australian Accounting Standards Board is established.\n\n (2) The Office of the AASB consists of:\n\n (a) the Chair of the AASB; and\n\n (b) the other members of the AASB; and\n\n (c) the staff of the Office of the AASB.\n\nNote: The Office of the AASB does not have a legal identity separate from the Commonwealth.\n\n226A  Office of the AASB’s functions and powers\n\n (1) The Office of the AASB has the following functions:\n\n (a) to make such arrangements as are necessary to give effect to the decisions of the AASB;\n\n (b) to provide technical services to the AASB;\n\n (c) to provide administrative services to the AASB;\n\n (d) to provide information to the AASB;\n\n (e) to advise the AASB about the performance of any of the AASB’s functions;\n\n (f) to make resources and facilities (including meeting facilities, communication facilities and secretariat services) available to the AASB;\n\n (g) such other functions as are conferred on the Office by this Act;\n\n (h) to do anything incidental to, or conducive to, the performance of any of the above functions.\n\n (2) The Office of the AASB has power to:\n\n (a) establish committees, advisory panels and consultative groups; and\n\n (b) receive money contributed towards its or the AASB’s operating costs; and\n\n (c) do anything else that is necessary for, or reasonably incidental to, the performance of its functions.\n\n13  Subsection 227(1) (notes 1 and 2)\n\nRepeal the notes, substitute:\n\nNote 1: The AASB was established by subsection 226(1) of the Australian Securities and Investments Commission Act 1989 and is continued in existence by section 261 of this Act.\n\nNote 2: The standards made under paragraph (b) are given legal effect by the Corporations Act. The standards formulated under paragraph (c) do not have legal effect under the Corporations Act itself but may be applied or adopted by some other authority.\n\nNote 3: See section 224 and sections 228 to 233 for the framework within which the AASB is to formulate and make accounting standards.\n\n14  Subsection 227(3)\n\nRepeal the subsection, substitute:\n\nPower to establish committees etc.\n\n (3) The AASB has power to establish committees, advisory panels and consultative groups.\n\n15  After section 227\n\nInsert:\n\nSubdivision C—The Auditing and Assurance Standards Board and the Office of the Auditing and Assurance Standards Board\n\n227AA  The Office of the Auditing and Assurance Standards Board\n\n (1) The Office of the Auditing and Assurance Standards Board is established.\n\n (2) The Office of the AUASB consists of:\n\n (a) the Chair of the AUASB; and\n\n (b) the other members of the AUASB; and\n\n (c) the staff of the Office of the AUASB.\n\nNote: The Office of the AUASB does not have a legal identity separate from the Commonwealth.\n\n227AB  Office of the AUASB’s functions and powers\n\n (1) The Office of the AUASB has the following functions:\n\n (a) to make such arrangements as are necessary to give effect to the decisions of the AUASB;\n\n (b) to provide technical services to the AUASB;\n\n (c) to provide administrative services to the AUASB;\n\n (d) to provide information to the AUASB;\n\n (e) to advise the AUASB about the performance of any of the AUASB’s functions;\n\n (f) to make resources and facilities (including meeting facilities, communication facilities and secretariat services) available to the AUASB;\n\n (g) such other functions as are conferred on the Office by this Act;\n\n (h) to do anything incidental to, or conducive to, the performance of any of the above functions.\n\n (2) The Office of the AUASB has power to:\n\n (a) establish committees, advisory panels and consultative groups; and\n\n (b) receive money contributed towards its or the AUASB’s operating costs; and\n\n (c) do anything else that is necessary for, or reasonably incidental to, the performance of its functions.\n\n16  Subsection 227A(1)\n\nOmit “(1)”.\n\n17  Subsections 227A(2) and (3)\n\nRepeal the subsections.\n\n18  Subsection 227B(2)\n\nRepeal the subsection, substitute:\n\nPower to establish committees etc.\n\n (2) The AUASB has power to establish committees, advisory panels and consultative groups.\n\n19  Subsection 231(1) (note)\n\nOmit “227(3)”, substitute “227(4)”.\n\n20  Section 232\n\nRepeal the section, substitute:\n\n232  FRC views\n\n  In performing its functions, the AASB must follow the broad strategic direction determined by the FRC under paragraph 225(2)(c).\n\n21  Section 234C\n\nRepeal the section, substitute:\n\n234C  FRC views\n\n  In performing its functions, the AUASB must follow the broad strategic direction determined by the FRC under paragraph 225(2A)(c).\n\n22  Paragraph 235B(1)(a)\n\nRepeal the paragraph, substitute:\n\n (a) the operations of the FRC and its committees and advisory groups; and\n\n23  Subsections 235B(2) and (2A)\n\nRepeal the subsections, substitute:\n\n (2) The report must include details of any advice or feedback that the FRC gave under paragraph 225(2)(b) or (ba) or (2A)(b) or (ba) during the year that ended on that 30 June.\n\n24  After Subdivision A of Division 3 of Part 12\n\nInsert:\n\nSubdivision AA—The Office of the AASB\n\n235D  Duties of the Chair of the AASB\n\n (1) The Chair of the AASB, under the Minister, is responsible for managing the Office of the AASB.\n\n (2) In particular, the Chair of the AASB is responsible for approving:\n\n (a) the AASB’s priorities, business plans and procedures; and\n\n (b) the Office of the AASB’s budgets and staffing arrangements (including level, structure and composition of staffing).\n\n (3) If the Chair of the AASB takes action that is inconsistent with any advice the FRC has given under paragraph 225(2)(b) or (ba), he or she must:\n\n (a) make a written record of his or her reasons for not following the advice; and\n\n (b) give a copy of the advice and of his or her reasons to the Minister; and\n\n (c) include a copy of the advice and of his or her reasons in the annual report under section 235J.\n\n235E  Staff of the Office of the AASB\n\nEmployment of staff\n\n (1) The Chair of the AASB may, on behalf of the Commonwealth, employ such staff under written agreements as the Chair thinks necessary to employ to assist the Office of the AASB in the performance of its functions and the exercise of its powers.\n\n (2) The terms and conditions of staff employed under subsection (1) are as determined in writing by the Chair.\n\nNote: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.\n\nOffice of the AASB Code of Conduct\n\n (3) The Chair of the AASB must determine, in writing, the Office of the AASB Code of Conduct.\n\nNote: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.\n\n (4) The Office of the AASB Code of Conduct applies to the Chair of the AASB and staff appointed under subsection (1).\n\n (5) An instrument made under subsection (3) is not a legislative instrument.\n\nEngagement of staff under the Public Service Act 1999\n\n (6) Without limiting subsections (1) and (2), staff of the Office of the AASB may be engaged under the Public Service Act 1999.\n\n (7) For the purposes of the Public Service Act 1999:\n\n (a) the Chair of the AASB and the staff of the Office of the AASB referred to in subsection (6) together constitute a Statutory Agency; and\n\n (b) the Chair of the AASB is the Head of that Statutory Agency.\n\n235F  Consultants and persons seconded to the Office of the AASB\n\n (1) The Chair of the AASB may, on behalf of the Commonwealth, engage consultants to perform services for the Office of the AASB in connection with the performance of any of its functions.\n\n (2) The terms and conditions of engagement are as determined in writing by the Chair.\n\nNote: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.\n\n (3) The Office of the AASB may also be assisted:\n\n (a) by employees of Agencies (within the meaning of the Public Service Act 1999); and\n\n (b) by officers and employees of authorities of the Commonwealth; and\n\n (c) by employees of Commonwealth companies (within the meaning of the Commonwealth Authorities and Companies Act 1997);\n\nwhose services are made available to the Office of the AASB in connection with the performance of any of its functions.\n\n235G  Office of the AASB to have regard to FRC’s advice etc.\n\n  The Office of the AASB must have regard to the advice and feedback about its budgets and staffing arrangements that the FRC gives under paragraph 225(2)(ba).\n\n235H  Chair not subject to direction by the AASB on certain matters\n\n  To avoid doubt, the Chair of the AASB is not subject to direction by the AASB in relation to the Chair’s performance of functions, or exercise of powers, under the Financial Management and Accountability Act 1997 or the Public Service Act 1999 in relation to the Office of the AASB.\n\n235J  Annual report\n\n  The Chair of the AASB must, as soon as practicable after the end of each financial year, prepare and give to the Minister, for presentation to the Parliament, a report of the operations of the AASB and the Office of the AASB during the financial year.\n\n25  Subsection 236A(3)\n\nRepeal the subsection.\n\n26  After section 236A\n\nInsert:\n\n236AA  AASB to have regard to FRC’s advice etc.\n\n  The AASB must have regard to the advice and feedback about its priorities, business plans and procedures that the FRC gives under paragraph 225(2)(b).\n\n27  At the end of Subdivision B of Division 3 of Part 12\n\nAdd:\n\n236DA  Disclosure of interests\n\nDisclosure to Minister or Chair of AASB\n\n (1) If a member of the AASB has or acquires any direct or indirect pecuniary interest that conflicts or could conflict with the proper performance of the member’s functions, the member must:\n\n (a) if the member is the Chair of the AASB—give written notice of the interest to the Minister; or\n\n (b) if the member is not the Chair of the AASB—give written notice of the interest to the Chair of the AASB.\n\nDisclosure to AASB\n\n (2) A member of the AASB who has a direct or indirect pecuniary interest in a matter being considered or about to be considered by the AASB must disclose the nature of the interest to a meeting of the AASB.\n\n (3) The disclosure under subsection (2) must be made as soon as possible after the relevant facts have come to the member’s knowledge.\n\n (4) The disclosure under subsection (2) must be recorded in the minutes of the meeting of the AASB.\n\n (5) The member:\n\n (a) must not be present during any deliberation by the AASB on the matter; and\n\n (b) must not take part in any decision of the AASB with respect to the matter;\n\nunless the Minister (if the member is the Chair of the AASB) or the Chair of the AASB (if the member is not the Chair of the AASB) otherwise determines.\n\n28  After Subdivision B of Division 3 of Part 12\n\nInsert:\n\nSubdivision BAA—The Office of the AUASB\n\n236DB  Duties of the Chair of the AUASB\n\n (1) The Chair of the AUASB, under the Minister, is responsible for managing the Office of the AUASB.\n\n (2) In particular, the Chair of the AUASB is responsible for approving:\n\n (a) the AUASB’s priorities, business plans and procedures; and\n\n (b) the Office of the AUASB’s budgets and staffing arrangements (including level, structure and composition of staffing).\n\n (3) If the Chair of the AUASB takes action that is inconsistent with any advice the FRC has given under paragraph 225(2A)(b) or (ba), he or she must:\n\n (a) make a written record of his or her reasons for not following the advice; and\n\n (b) give a copy of the advice and of his or her reasons to the Minister; and\n\n (c) include a copy of the advice and of his or her reasons in the annual report under section 236DG.\n\n236DC  Staff of the Office of the AUASB\n\nEmployment of staff\n\n (1) The Chair of the AUASB may, on behalf of the Commonwealth, employ such staff under written agreements as the Chair thinks necessary to employ to assist the Office of the AUASB in the performance of its functions and the exercise of its powers.\n\n (2) The terms and conditions of staff employed under subsection (1) are as determined in writing by the Chair.\n\nNote: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.\n\nOffice of the AUASB Code of Conduct\n\n (3) The Chair of the AUASB must determine, in writing, the Office of the AUASB Code of Conduct.\n\nNote: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.\n\n (4) The Office of the AUASB Code of Conduct applies to the Chair of the AUASB and staff appointed under subsection (1).\n\n (5) An instrument made under subsection (3) is not a legislative instrument.\n\nEngagement of staff under the Public Service Act 1999\n\n (6) Without limiting subsections (1) and (2), staff of the Office of the AUASB may be engaged under the Public Service Act 1999.\n\n (7) For the purposes of the Public Service Act 1999:\n\n (a) the Chair of the AUASB and the staff of the Office of the AUASB referred to in subsection (6) together constitute a Statutory Agency; and\n\n (b) the Chair of the AUASB is the Head of that Statutory Agency.\n\n236DD  Consultants and persons seconded to the Office of the AUASB\n\n (1) The Chair of the AUASB may, on behalf of the Commonwealth, engage consultants to perform services for the Office of the AUASB in connection with the performance of any of its functions.\n\n (2) The terms and conditions of engagement are as determined in writing by the Chair.\n\nNote: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.\n\n (3) The Office of the AUASB may also be assisted:\n\n (a) by officers and employees of Agencies (within the meaning of the Public Service Act 1999); and\n\n (b) by officers and employees of authorities of the Commonwealth; and\n\n (c) by employees of Commonwealth companies (within the meaning of the Commonwealth Authorities and Companies Act 1997);\n\nwhose services are made available to the Office of the AUASB in connection with the performance of any of its functions.\n\n236DE  Office of the AUASB to have regard to FRC’s advice etc.\n\n  The Office of the AUASB must have regard to the advice and feedback about its budgets and staffing arrangements that the FRC gives under paragraph 225(2A)(ba).\n\n236DF  Chair not subject to direction by the AUASB on certain matters\n\n  To avoid doubt, the Chair of the AUASB is not subject to direction by the AUASB in relation to the Chair’s performance of functions, or exercise of powers, under the Financial Management and Accountability Act 1997 or the Public Service Act 1999 in relation to the Office of the AUASB.\n\n236DG  Annual report\n\n  The Chair of the AUASB must, as soon as practicable after the end of each financial year, prepare and give to the Minister, for presentation to the Parliament, a report of the operations of the AUASB and the Office of the AUASB during the financial year.\n\n29  Subsection 236E(3)\n\nRepeal the subsection.\n\n30  After section 236E\n\nInsert:\n\n236EA  AUASB to have regard to FRC’s advice etc.\n\n  The AUASB must have regard to the advice and feedback about its priorities, business plans and procedures that the FRC gives under paragraph 225(2A)(b).\n\n31  At the end of Subdivision BA of Division 3 of Part 12\n\nAdd:\n\n236J  Disclosure of interests\n\nDisclosure to Minister or Chair of AUASB\n\n (1) If a member of the AUASB has or acquires any direct or indirect pecuniary interest that conflicts or could conflict with the proper performance of the member’s functions, the member must:\n\n (a) if the member is the Chair of the AUASB—give written notice of the interest to the Minister; or\n\n (b) if the member is not the Chair of the AUASB—give written notice of the interest to the Chair of the AUASB.\n\nDisclosure to AUASB\n\n (2) A member of the AUASB who has a direct or indirect pecuniary interest in a matter being considered or about to be considered by the AUASB must disclose the nature of the interest to a meeting of the AUASB.\n\n (3) The disclosure under subsection (2) must be made as soon as possible after the relevant facts have come to the member’s knowledge.\n\n (4) The disclosure under subsection (2) must be recorded in the minutes of the meeting of the AUASB.\n\n (5) The member:\n\n (a) must not be present during any deliberation by the AUASB on the matter; and\n\n (b) must not take part in any decision of the AUASB with respect to the matter;\n\nunless the Minister (if the member is the Chair of the AUASB) or the Chair of the AUASB (if the member is not the Chair of the AUASB) otherwise determines.\n\n32  Subsection 237(1)\n\nOmit “and the AUASB”, substitute “, the Office of the AASB, the AUASB and the Office of the AUASB”.\n\n33  Paragraph 237(2)(b)\n\nOmit “or the AUASB’s”, substitute “, the Office of the AASB’s, the AUASB’s or the Office of the AUASB’s”.\n\n34  Subdivision D of Division 3 of Part 12\n\nRepeal the Subdivision.\n\n35  Paragraphs 246(1)(i) and (j)\n\nRepeal the paragraphs, substitute:\n\n (i) a person who is:\n\n (i) a member of staff of the Office of the AASB engaged under section 235E; or\n\n (ii) a consultant to the Office of the AASB engaged under section 235F; or\n\n (iii) a person assisting the Office of the AASB under subsection 235F(3);\n\n (j) a person who is:\n\n (i) a member of staff of the Office of the AUASB engaged under section 236DC; or\n\n (ii) a consultant to the Office of the AUASB engaged under section 236DD; or\n\n (iii) a person assisting the Office of the AUASB under subsection 236DD(3);\n\n36  At the end of paragraph 246(2)(c)\n\nAdd “or by the Office of the AASB”.\n\n37  At the end of paragraph 246(2)(d)\n\nAdd “or by the Office of the AUASB”.\n\n\n\n\nSchedule 2—Transitional provisions\n\nPart 1—Definitions\n\n1  Definitions\n\nIn this Schedule:\n\namend includes repeal and remake.\n\nasset means:\n\n (a) any legal or equitable estate or interest in real or personal property, whether actual, contingent or prospective; or\n\n (b) any right, power, privilege or immunity, whether actual, contingent or prospective.\n\nassets official, in relation to an asset other than land, means the person or authority who, under a law of the Commonwealth, a State or a Territory, under a trust instrument or otherwise, has responsibility for keeping a register in relation to assets of the kind concerned.\n\ncommencement time means the time when this Schedule commences.\n\nguidance means guidance formulated under paragraph 227B(1)(c) of the Australian Securities and Investments Commission Act 2001.\n\ninstrument:\n\n (a) includes:\n\n (i) a contract, deed, undertaking or agreement; and\n\n (ii) a notice, authority, order or instruction; and\n\n (iii) an instrument made under an Act or regulations; and\n\n (iv) regulations; but\n\n (b) does not include an Act.\n\nland means any legal or equitable estate or interest in real property, whether actual, contingent or prospective.\n\nland registration official, in relation to land, means the Registrar of Titles or other proper officer of the State or Territory in which the land is situated.\n\nliability means any liability, duty or obligation, whether actual, contingent or prospective.\n\nnew law means the Australian Securities and Investments Commission Act 2001 as in force immediately after the commencement time.\n\nold law means the Australian Securities and Investments Commission Act 2001 as in force immediately before the commencement time.\n\nstandard means:\n\n (a) an accounting standard made under section 334 of the Corporations Act 2001; or\n\n (b) an auditing standard made under section 336 of that Act; or\n\n (c) a document that:\n\n (i) deals with the interpretation of such an accounting standard; and\n\n (ii) such an accounting standard requires to be applied; or\n\n (d) an accounting standard formulated under paragraph 227(1)(c) of the Australian Securities and Investments Commission Act 2001; or\n\n (e) an auditing standard or assurance standard formulated under paragraph 227B(1)(b) of that Act.\n\n\n\n\nPart 2—Assets, liabilities and legal proceedings\n\n2  Vesting of AASB’s assets and liabilities\n\n(1) At the commencement time, the assets of the AASB immediately before the commencement time:\n\n (a) cease to be the assets of the AASB; and\n\n (b) become assets of the Commonwealth without any conveyance, transfer or assignment; and\n\n (c) are taken to be held by the Office of the AASB for and on behalf of the Commonwealth.\n\nThe Commonwealth becomes the successor in law in relation to these assets.\n\n(2) At the commencement time, the liabilities of the AASB immediately before the commencement time:\n\n (a) cease to be the liabilities of the AASB; and\n\n (b) become liabilities of the Commonwealth without any conveyance, transfer or assignment.\n\nThe Commonwealth becomes the successor in law in relation to these liabilities.\n\n3  Vesting of AUASB’s assets and liabilities\n\n(1) At the commencement time, the assets of the AUASB immediately before the commencement time:\n\n (a) cease to be the assets of the AUASB; and\n\n (b) become assets of the Commonwealth without any conveyance, transfer or assignment; and\n\n (c) are taken to be held by the Office of the AUASB for and on behalf of the Commonwealth.\n\nThe Commonwealth becomes the successor in law in relation to these assets.\n\n(2) At the commencement time, the liabilities of the AUASB immediately before the commencement time:\n\n (a) cease to be the liabilities of the AUASB; and\n\n (b) become liabilities of the Commonwealth without any conveyance, transfer or assignment.\n\nThe Commonwealth becomes the successor in law in relation to these liabilities.\n\n4  Certificates relating to vesting of land\n\nIf:\n\n (a) land vests in the Commonwealth under this Schedule; and\n\n (b) there is lodged with a land registration official a certificate that:\n\n (i) is signed by the Minister; and\n\n (ii) identifies the land, whether by reference to a map or otherwise; and\n\n (iii) states that the land has become vested in the Commonwealth under this Schedule;\n\nthe land registration official may:\n\n (c) register the matter in a way that is the same as, or similar to, the way in which dealings in land of that kind are registered; and\n\n (d) deal with, and give effect to, the certificate.\n\nNote: Certificates under paragraph (b) are presumed to be authentic: see item 22 of this Schedule.\n\n5  Certificates relating to vesting of assets other than land\n\nIf:\n\n (a) any asset other than land vests in the Commonwealth under this Schedule; and\n\n (b) there is lodged with an assets official a certificate that:\n\n (i) is signed by the Minister; and\n\n (ii) identifies the asset; and\n\n (iii) states that the asset has become vested in the Commonwealth under this Schedule;\n\nthe assets official may:\n\n (c) deal with, and give effect to, the certificate as if it were a proper and appropriate instrument for transactions in relation to assets of that kind; and\n\n (d) make such entries in a register as are necessary having regard to the effect of this Part.\n\nNote: Certificates under paragraph (b) are presumed to be authentic: see item 22 of this Schedule.\n\n6  Substitution of Commonwealth as a party to pending proceedings\n\nIf any proceedings to which the AASB or AUASB was a party were pending in any court or tribunal immediately before the commencement time, the Commonwealth is substituted for the AASB or AUASB, from the commencement time, as a party to the proceedings.\n\n7  Transfer of custody of AASB and AUASB records\n\n(1) Any records or documents that, immediately before the commencement time, were in the custody of the AASB are to be transferred into the custody of the Office of the AASB at or after the commencement time.\n\n(2) Any records or documents that, immediately before the commencement time, were in the custody of the AUASB are to be transferred into the custody of the Office of the AUASB at or after the commencement time.\n\n\n\n\nPart 3—Reference to, and things done by or in relation to, the AASB or the AUASB\n\n8  References in instruments\n\nReferences to AASB or AUASB\n\n(1) If:\n\n (a) an instrument (other than a standard or guidance) is in force immediately before the commencement time; and\n\n (b) the instrument contains a reference to the AASB;\n\nthe instrument has effect from the commencement time as if the reference were a reference to the Office of the AASB.\n\n(2) If:\n\n (a) an instrument (other than a standard or guidance) is in force immediately before the commencement time; and\n\n (b) the instrument contains a reference to the AUASB;\n\nthe instrument has effect from the commencement time as if the reference were a reference to the Office of the AUASB.\n\n(3) However, if:\n\n (a) an instrument (other than a standard or guidance) is in force immediately before the commencement time; and\n\n (b) the instrument relates to assets or liabilities covered by item 2 or 3 of this Schedule; and\n\n (c) the instrument refers to the AASB or the AUASB;\n\nthe reference is to be read as a reference to the Commonwealth as necessary to give effect to item 2 or 3 of this Schedule, as the case requires.\n\nMinister and regulations may provide otherwise\n\n(4) The Minister may, by writing, determine that subitem (1), (2) or (3):\n\n (a) does not apply in relation to a specified reference; or\n\n (b) applies as if:\n\n (i) in the case of subitem (1)—the reference in that subitem to the Office of the AASB were a reference to the Commonwealth; or\n\n (ii) in the case of subitem (2)—the reference in that subitem to the Office of the AUASB were a reference to the Commonwealth; or\n\n (iii) in the case of subitem (3)—the reference in that subitem to the Commonwealth were a reference to the Office of the AASB or the Office of the AUASB (as the case requires).\n\nA determination under this subitem has effect accordingly.\n\n(5) The regulations may provide that an instrument (other than a standard or guidance) containing a reference specified in a determination under paragraph (4)(a) has effect from the commencement time as if:\n\n (a) in the case of an instrument covered by subitem (1)—the reference were a reference to a specified person or body, other than the AASB or the Office of the AASB; or\n\n (b) in the case of an instrument covered by subitem (2)—the reference were a reference to a specified person or body, other than the AUASB or the Office of the AUASB; or\n\n (c) in the case of an instrument covered by subitem (3)—the reference were a reference to a specified person or body, other than the Commonwealth or:\n\n (i) the AASB or the Office of the AASB; or\n\n (ii) the AUASB or the Office of the AUASB;\n\n  as the case requires.\n\nDeterminations are not legislative instruments\n\n(6) A determination under subitem (4) is not a legislative instrument.\n\n9  Operation of laws\n\nThings done by AASB or AUASB\n\n(1) If, before the commencement time, a thing was done by, or in relation to, the AASB, then, for the purposes of the operation of any law of the Commonwealth after the commencement time, the thing is taken to have been done by, or in relation to, the Commonwealth.\n\n(2) If, before the commencement time, a thing was done by, or in relation to, the AUASB, then, for the purposes of the operation of any law of the Commonwealth after the commencement time, the thing is taken to have been done by, or in relation to, the Commonwealth.\n\n(3) For the purposes of subitems (1) and (2), a thing done before the commencement time under a provision that is amended by this Act has effect from that time as if it were done under that provision as amended. However, this is not taken to change the time at which the thing was actually done.\n\nMinister and regulations may provide otherwise\n\n(4) The Minister may, by writing, determine that subitem (1) or (2):\n\n (a) does not apply in relation to a specified thing done by, or in relation to, the AASB or the AUASB (as the case requires); or\n\n (b) applies as if the reference in that subitem to the Commonwealth were a reference to the Office of the AASB or the Office of the AUASB (as the case requires).\n\nA determination under this subitem has effect accordingly.\n\n(5) The regulations may provide for a thing specified in a determination under paragraph (4)(a) to be taken to have been done by, or in relation to, a specified person or body other than the Commonwealth or the Office of the AASB or Office of the AUASB (as the case requires).\n\nMeaning of doing\n\n(6) For the purposes of this item, doing a thing includes making an instrument, but does not include making a standard or formulating guidance.\n\nDeterminations are not legislative instruments\n\n(7) A determination made under subitem (4) is not a legislative instrument.\n\n10  Reporting requirements of the AASB etc.\n\nFuture reporting requirements\n\n(1) If:\n\n (a) immediately before the commencement time, a law required the AASB, the Chair of the AASB or the members of the AASB to provide a report (whether financial statements or otherwise) for a period; and\n\n (b) the period ends after the commencement time;\n\nthe Chair of the AASB must provide the report, as required, for so much of the period as occurs before the commencement time.\n\n(2) If:\n\n (a) under subitem (1), the Chair of the AASB is required to provide a report for a part of a period; and\n\n (b) the Chair of the AASB is also required to provide a similar report for the remainder of the period;\n\nthe Chair of the AASB may meet the requirements in a single report for the period.\n\nOutstanding reporting requirements\n\n(3) If:\n\n (a) a law required the AASB, the Chair of the AASB or the members of the AASB to provide a report (whether financial statements or otherwise) for a period that ended before the commencement time; and\n\n (b) the report has not been provided by the commencement time;\n\nthe Chair of the AASB must provide the report as required.\n\nApplication of law to Chair of the AASB\n\n(4) To avoid doubt, if, under this item, the Chair of the AASB is required to provide a report under a law, the law applies to the Chair of the AASB in respect of the report in the same way as the law would have applied to the AASB, the Chair of the AASB or the members of the AASB in respect of the report.\n\n11  Reporting requirements of the AUASB etc.\n\nFuture reporting requirements\n\n(1) If:\n\n (a) immediately before the commencement time, a law required the AUASB, the Chair of the AUASB or the members of the AUASB to provide a report (whether financial statements or otherwise) for a period; and\n\n (b) the period ends after the commencement time;\n\nthe Chair of the AUASB must provide the report, as required, for so much of the period as occurs before the commencement time.\n\n(2) If:\n\n (a) under subitem (1), the Chair of the AUASB is required to provide a report for a part of a period; and\n\n (b) the Chair of the AUASB is also required to provide a similar report for the remainder of the period;\n\nthe Chair of the AUASB may meet the requirements in a single report for the period.\n\nOutstanding reporting requirements\n\n(3) If:\n\n (a) a law required the AUASB, the Chair of the AUASB or the members of the AUASB to provide a report (whether financial statements or otherwise) for a period that ended before the commencement time; and\n\n (b) the report has not been provided by the commencement time;\n\nthe Chair of the AUASB must provide the report as required.\n\nApplication of law to Chair of the AUASB\n\n(4) To avoid doubt, if, under this item, the Chair of the AUASB is required to provide a report under a law, the law applies to the Chair of the AUASB in respect of the report in the same way as the law would have applied to the AUASB, the Chair of the AUASB or the members of the AUASB in respect of the report.\n\n12  Reporting requirements of the FRC etc.\n\nFuture reporting requirements\n\n(1) If:\n\n (a) immediately before the commencement time, a law required the FRC, the Chair of the FRC or the members of the FRC to provide a report (whether financial statements or otherwise) relating to the AASB or the AUASB for a period; and\n\n (b) the period ends after the commencement time;\n\nthe FRC must provide the report, as required, for so much of the period as occurs before the commencement time.\n\n(2) If:\n\n (a) under subitem (1), the FRC is required to provide a report for a part of a period; and\n\n (b) the FRC is also required to provide a similar report for the remainder of the period;\n\nthe FRC may meet the requirements in a single report for the period.\n\nOutstanding reporting requirements\n\n(3) If:\n\n (a) a law required the FRC, the Chair of the FRC or the members of the FRC to provide a report (whether financial statements or otherwise) relating to the AASB or the AUASB for a period that ended before the commencement time; and\n\n (b) the report has not been provided by the commencement time;\n\nthe FRC must provide the report as required.\n\nApplication of law to Chair of the FRC\n\n(4) To avoid doubt, if, under this item, the FRC is required to provide a report under a law, the law applies to the FRC in respect of the report in the same way as the law would have applied to the FRC, the Chair of the FRC or the members of the FRC in respect of the report.\n\n13  Continuing obligation to keep records\n\n(1) Section 20 of the Commonwealth Authorities and Companies Act 1997 (as in force from time to time) continues to apply after the commencement time in relation to the accounting records kept by the AASB under that section before that time as if the Office of the AASB were subject to that Act in place of the AASB.\n\n(2) Section 20 of the Commonwealth Authorities and Companies Act 1997 (as in force from time to time) continues to apply after the commencement time in relation to the accounting records kept by the AUASB under that section before that time as if the Office of the AUASB were subject to that Act in place of the AUASB.\n\n\n\n\nPart 4—Staff and consultants\n\n14  Staff of the AASB\n\n(1) A person who was a member of the staff of the AASB immediately before the commencement time is taken, at the commencement time, to have been engaged by the Chair of the AASB as a member of the staff of the Office of the AASB.\n\n(2) The person is taken:\n\n (a) to have been engaged on the same terms and conditions as applied to the person immediately before the commencement time; and\n\n (b) to have an entitlement to benefits, in connection with that engagement by the Chair of the AASB, that is equivalent to the person’s entitlement, as a member of the staff of the AASB, immediately before the commencement time.\n\n(3) The service of the person as a member of the staff of the Office of the AASB is taken, for all purposes, to have been continuous with the service, immediately before the commencement time, of the employee as a member of the staff of the AASB.\n\n(4) The person is not entitled to receive any payment or other benefit merely because he or she stopped being a member of the staff of the AASB as a result of this Act.\n\n(5) This item does not prevent the terms and conditions referred to in paragraph (2)(a) being varied after the commencement time.\n\n15  Staff of the AUASB\n\n(1) A person who was a member of the staff of the AUASB immediately before the commencement time is taken, at the commencement time, to have been engaged by the Chair of the AUASB as a member of the staff of the Office of the AUASB.\n\n(2) The person is taken:\n\n (a) to have been engaged on the same terms and conditions as applied to the person immediately before the commencement time; and\n\n (b) to have an entitlement to benefits, in connection with that engagement by the Chair of the AUASB, that is equivalent to the person’s entitlement, as a member of the staff of the AUASB, immediately before the commencement time.\n\n(3) The service of the person as a member of the staff of the Office of the AUASB is taken, for all purposes, to have been continuous with the service, immediately before the commencement time, of the employee as a member of the staff of the AUASB.\n\n(4) The person is not entitled to receive any payment or other benefit merely because he or she stopped being a member of the staff of the AUASB as a result of this Act.\n\n(5) This item does not prevent the terms and conditions referred to in paragraph (2)(a) being varied after the commencement time.\n\n16  Consultants\n\n(1) A person in respect of whom an engagement as a consultant was in force under paragraph 227(3)(a) or 227B(2)(a) of the old law immediately before the commencement time is taken, at the commencement time, to have been engaged as a consultant under subsection 235F(1) or 236DD(1) (as the case requires) of the new law.\n\n(2) The person is taken to have been engaged on the same terms and conditions as applied to the person immediately before the commencement time.\n\n(3) This item does not prevent those terms and conditions being varied after the commencement time.\n\n\n\n\nPart 5—Other matters\n\n17  Accounting standards and auditing standards etc. unaffected\n\nTo avoid doubt, this Act does not affect:\n\n (a) the validity of accounting standards made or formulated by the AASB before the commencement time; or\n\n (b) the validity of auditing standards or guidance made or formulated by the AUASB before the commencement time.\n\n18  Membership of AASB and AUASB unaffected\n\nTo avoid doubt, if, immediately before the commencement time, a person’s appointment as a member of the AASB or AUASB is in force, this Act does not affect the continuation of the person’s appointment after the commencement time.\n\n19  Liability for damages\n\nIf:\n\n (a) section 246 of the old law applied to a person in relation to an act done or omitted before the commencement time; and\n\n (b) section 246 of the new law would not (but for this item) apply to the person;\n\nsection 246 of the new law is taken to apply to the person in relation to the act or omission.\n\n20  Exemption from stamp duty and other State or Territory taxes\n\nNo stamp duty or other tax is payable under a law of a State or Territory in respect of, or in respect of anything connected with:\n\n (a) the transfer of an asset or liability under this Schedule; or\n\n (b) the operation of this Schedule in any other respect.\n\n21  Constitutional safety net—acquisition of property\n\n(1) If the operation of this Schedule would result in an acquisition of property from a person otherwise than on just terms, the Commonwealth is liable to pay a reasonable amount of compensation to the person.\n\n(2) If the Commonwealth and the person do not agree on the amount of the compensation, the person may institute proceedings in a court of competent jurisdiction for the recovery from the Commonwealth of such reasonable amount of compensation as the court determines.\n\n(3) In this item:\n\nacquisition of property has the same meaning as in paragraph 51(xxxi) of the Constitution.\n\njust terms has the same meaning as in paragraph 51(xxxi) of the Constitution.\n\n22  Certificates taken to be authentic\n\nA document that appears to be a certificate made or issued under a particular provision of this Schedule:\n\n (a) is taken to be such a certificate; and\n\n (b) is taken to have been properly given;\n\nunless the contrary is established.\n\n23  Delegation by Minister\n\n(1) The Minister may, by writing, delegate all or any of his or her powers and functions under this Schedule relating to the AASB or the Office of the AASB to:\n\n (a) the Chair of the AASB; or\n\n (b) the Secretary of the Department; or\n\n (c) an SES employee or acting SES employee in the Department.\n\n(2) The Minister may, by writing, delegate all or any of his or her powers and functions under this Schedule relating to the AUASB or the Office of the AUASB to:\n\n (a) the Chair of the AUASB; or\n\n (b) the Secretary of the Department; or\n\n (c) an SES employee or acting SES employee in the Department.\n\n(3) In exercising powers or performing functions under a delegation under this item, the delegate must comply with any directions of the Minister.\n\n24  Regulations\n\n(1) The Governor‑General may make regulations prescribing matters:\n\n (a) required or permitted by this Schedule to be prescribed; or\n\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Schedule.\n\n(2) The Governor‑General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by Schedule 1 to this Act.\n\n \n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 18 June 2008\n\nSenate on 26 June 2008]\n\n(133/08)\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"This Act implements a governance and administrative reorganisation for the AASB and AUASB rather than expanding or creating new regulatory powers over external parties. It centralises administrative control under Chairs and places stronger statutory effect on FRC strategic direction, but it does not broaden the substantive scope of standards or extend regulatory reach beyond the original standard‑setting functions. The primary change is structural and procedural (organisation, reporting, vesting of assets/liabilities, and transitional arrangements), not substantive expansion of regulatory authority."},"complexity_factors":["Multiple new subdivisions and sections inserted (e.g. 226A, 227AB, 235D–235J, 236DB–236DG) increasing internal cross‑references","Extensive transitional schedule (Schedule 2) with multiple parts: assets/liabilities vesting, staff transfer, substitution in proceedings, instrument reference rewriting (Parts 2–5)","Amendments to existing FRC functions and multiple cross‑references to paragraph 225(2)/(2A) and new sections 232/234C","Delegation and Ministerial discretion provisions (Schedule 2 items 8, 23 and regulations item 24) that create conditional logic and possible variations","Numerous defined terms in Schedule 2 (e.g. asset, instrument, standard) creating interpretation points","Parallel but not identical provisions for AASB and AUASB (duplication increases reading complexity)","Conflict‑of‑interest disclosure and exclusion rules inserted for both Boards (236DA and 236J) with procedural consequences","Interactions with other Acts (Public Service Act 1999; Financial Management and Accountability Act 1997; Corporations Act 2001) requiring cross‑statutory interpretation","Non‑legislative instruments and Codes of Conduct (chairs determine codes; note that instruments are explicitly not legislative instruments)","Constitutional safety‑net for acquisition of property (just terms compensation) and tax/stamp duty exemptions raising property law and fiscal consequences"],"plain_english_summary":"**What this Act does (mechanically)**\n\n- Amends the Australian Securities and Investments Commission Act 2001 to reorganise the accounting and auditing standard‑setting bodies into an administrative Office model. It creates the Office of the Australian Accounting Standards Board (Office of the AASB) and the Office of the Auditing and Assurance Standards Board (Office of the AUASB) and specifies what each Office consists of (the Chair, members and staff). (See new sections 226, 227AA.)\n\n- Gives each Office explicit functions and powers to support the respective Board (technical and administrative services, making arrangements to give effect to Board decisions, establishing committees, and receiving contributions). (See new sections 226A, 227AB.)\n\n- Confirms that accounting and auditing standards already made or formulated remain valid. (Schedule 2, item 17.)\n\n- Strengthens the role of the Financial Reporting Council (FRC) by making the Boards and Offices required to follow or have regard to the FRC’s broad strategic direction and to accept its advice or feedback on priorities, business plans, procedures, budgets and staffing arrangements. The Act requires the Boards to follow the FRC’s broad strategic direction (new sections 232 and 234C) and the Offices and Boards to have regard to specific FRC advice (see sections 235G, 236DE, 236AA, 236EA). The FRC must disclose the advice it gives in the annual report. (Amendments to paragraph 225(2) and related reporting changes at paragraph 235B(2).)\n\n- Makes the Chairs of the AASB and AUASB responsible, under the Minister, for managing their Offices, and gives the Chair authority to approve the Board’s priorities, business plans and procedures and the Office’s budgets and staffing. If a Chair acts contrary to FRC advice, the Chair must record and report reasons to the Minister and include them in the annual report. (See subdivisions added at 235D–235F and 236DB–236DG.)\n\n- Confers employment and engagement powers on the Chairs: each Chair may employ staff and engage consultants on behalf of the Commonwealth on terms determined in writing. Staff may also be engaged under the Public Service Act 1999, and for that purpose the Chair and staff constitute a Statutory Agency with the Chair as Head. (See sections 235E–235F (AASB) and 236DC–236DD (AUASB).)\n\n- Introduces disclosure and conflict rules for members of the AASB and AUASB: pecuniary interests must be disclosed to the Chair or Minister, recorded in minutes, and the conflicted member must not participate in deliberations or decisions unless the Chair or Minister permits. (See sections 236DA, 236J.)\n\n- Requires annual reporting by the Chairs on operations of the Boards and their Offices. (Sections 235J, 236DG.)\n\n- Implements a transitional regime so that, on commencement, the assets and liabilities of the AASB and AUASB vest in the Commonwealth and are held by the new Offices; staff, consultants and records transfer with continuity of terms; pending proceedings substitute the Commonwealth as the party; and instruments and references to the AASB/AUASB are read as references to the appropriate Office or the Commonwealth as needed. It also protects against stamp duty and provides a constitutional compensation avenue if property is acquired otherwise than on just terms. (Schedule 2, Parts 2–5.)\n\n**Who is affected**\n\n- The AASB and AUASB (their membership, staff and consultants): their organisational form becomes an Office under the Commonwealth and staff and consultants transfer under the new arrangements (Schedule 2, items 2–3, 14–16).\n\n- The Chairs of the AASB and AUASB: they gain managerial and employment powers, responsibility for approving priorities, budgets and staffing, and reporting obligations (sections 235D–235F, 236DB–236DG).\n\n- The Financial Reporting Council (FRC): its advice and broad strategic direction are given statutory force over the Boards and Offices (paragraph 225(2) as amended; sections 232, 234C, 235G, 236DE, 236AA, 236EA).\n\n- The Commonwealth (taxpayers/government): becomes legal successor to the Boards’ assets and liabilities and may bear costs or liabilities that previously sat with the statutory bodies (Schedule 2, items 2–3).\n\n- Users of accounting and auditing standards (companies, auditors, regulators): the legal effect of existing standards is preserved, but the governance and administrative arrangements for standard setting change and the FRC gains stronger oversight (Schedule 2 item 17; sections 232/234C).\n\n**Why it matters (purpose claims and practical testing)**\n\n- The Act’s stated purpose (as reflected in its title and provisions) is to implement governance review recommendations: to consolidate administrative functions, strengthen oversight by the FRC, and place employment, budgeting and reporting powers with Chairs who operate under the Minister (see subdivisions added at 235D–235F and 236DB–236DG). This is an implementation of governance‑structure change rather than a change in the standards themselves.\n\n- Costs and incentives: the Commonwealth becomes the legal owner of assets and liable for liabilities (Schedule 2, items 2–3). That shifts financial exposure from a statutory board to government balance sheets (taxpayers ultimately bear residual costs). Chairs gain discretion over staffing and consultant engagements (sections 235E–235F and 236DC–236DD), creating incentives for Chairs to control operating costs and shape staff composition.\n\n- Trade‑offs and opportunity costs: centralising administrative control under Chairs and giving the FRC strategic influence can improve coordination and accountability, but it concentrates decision‑making authority and introduces additional layers of oversight (FRC → Chair → Office) which may slow decision timelines or change priority setting. The Act requires Chairs to report divergences from FRC advice, which increases transparency but also compliance and reporting work (sections 235D(3), 236DB(3)).\n\n- Implementation risk and compliance burden: the transitional schedule contains many operational steps (vesting assets/liabilities, transfer of staff and records, substitution in proceedings, read‑across of instruments) that create short‑term administrative complexity and legal‑technical work for agencies, land registries and other officials (Schedule 2, items 2–9). The Minister can make written determinations to alter how references are read, and regulations can prescribe transitional matters, concentrating executive discretion (Schedule 2, items 8 and 23–24), so administrative clarity during transition is essential to reduce uncertainty.\n\n- Bureaucratic discretion and accountability: Chairs have managerial control (including employment terms and non‑legislative Codes of Conduct) and are explicitly not subject to direction by their Boards in certain statutory employment/financial matters (sections 235H and 236DF). That increases the Chair’s autonomy within the Office while retaining Ministerial oversight and FRC influence, shifting internal governance away from collective board direction on administrative matters.\n\n- Effects on private enterprise and regulation: the Act does not change which accounting and auditing standards have legal force (Schedule 2, item 17) nor directly change the Corporations Act standards' legal effect. Indirectly, changes in governance, resourcing and FRC strategic direction could alter the pace, emphasis or content of future standards — which may affect compliance costs for firms, audit practices and reporting requirements over time (see sections 232, 234C and the amended paragraph 225(2)(b)/(2A)(b)/(ba)).\n\n**Who pays, who decides, and what behaviour changes**\n\n- Who pays: the Commonwealth (taxpayers) becomes the successor in law to assets and liabilities of the former statutory AASB and AUASB (Schedule 2, items 2–3). That places ultimate financial responsibility with government.\n\n- Who decides: the FRC determines broad strategic direction and gives advice on priorities, business plans, procedures, budgets and staffing (amended paragraph 225(2)/(2A)); the Chairs of the AASB and AUASB decide and approve operational priorities, budgets and staffing for their Offices and may employ staff and consultants (sections 235D–235F; 236DB–236DD). The Minister retains an oversight role (must receive reports and may receive reasons for divergence) and can make certain written determinations and delegations under the transitional schedule (Schedule 2, items 8, 23).\n\n- Behaviour changes: membership and staff operate within a new Office structure under the Chair; Chairs will likely exercise more direct control over staffing, procurement of consultants and day‑to‑day administration; the Boards are required to follow FRC strategic direction and have regard to FRC advice, which formalises a hierarchical strategic relationship between the FRC and the standard‑setting Boards (sections 232, 234C, 235G, 236DE, 236AA, 236EA).\n\n**Implementation and compliance issues to watch**\n\n- Transitional administration: ensuring correct vesting, registration of land and other assets, preservation of records, and smooth substitution of the Commonwealth in proceedings are practical steps that require coordination with land registries and other officials (Schedule 2, items 2–6, 14–16).\n\n- Reporting and transparency: Chairs must document reasons for departing from FRC advice and include these in annual reports — a recurring compliance and transparency obligation (sections 235D(3) and 236DB(3)).\n\n- Potential indirect effects on standard‑setting speed or emphasis: the new governance relationships and resource controls could influence prioritisation and timing of new standards or revisions, affecting regulated entities that must comply with future standards.\n\n**Net legal effect:**\n\n- The Act reorganises and clarifies administrative, employment and reporting arrangements for the AASB and AUASB, strengthens the FRC’s strategic role over those Boards, transfers assets/liabilities to the Commonwealth, preserves existing standards and memberships, and creates transitional mechanisms to effect those changes with continuity of staff and obligations."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: restructuring the governance and administrative framework of the AASB and AUASB. The extensive transitional provisions and mirror structures are necessary implementation details rather than scope creep."},"complexity_factors":["Extensive transitional provisions (Schedule 2) dealing with asset vesting, liability transfer, and staff continuity across 5 Parts","Mirror structure — nearly every provision for the AASB is duplicated for the AUASB, doubling the legislative text without adding conceptual complexity","Multiple cross-references to the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Public Service Act 1999, and Commonwealth Authorities and Companies Act 1997","Conditional logic in transitional provisions (e.g., items 10-12 with nested 'if' statements for reporting periods straddling commencement time)","Ministerial determination powers with explicit exclusions from legislative instrument status (items 8, 9, 23)","Constitutional safety net provision (item 21) invoking section 51(xxxi) just terms compensation","27 discrete amendment items in Schedule 1 requiring mental reconstruction of the target Act"],"plain_english_summary":"This Act restructures how Australia's two key accounting and auditing standards bodies are set up and run.\n\n**What it does:**\n\n*   **Creates two new \"Offices\"** — the Office of the Australian Accounting Standards Board (AASB) and the Office of the Auditing and Assurance Standards Board (AUASB). These Offices provide the staff, admin support, and resources that help the Boards do their jobs.\n*   **Separates governance from operations** — The Boards (made up of part-time members) keep setting the actual accounting and auditing standards. The new Offices (led by full-time Chairs) handle the day-to-day running, staffing, and budgets.\n*   **Changes who employs the staff** — Previously, staff were employed directly by the Boards. Now, the Chairs of each Board employ staff on behalf of the Commonwealth, and the Offices become \"Statutory Agencies\" under the Public Service Act.\n*   **Shifts assets and liabilities** — Any property, money, or legal obligations held by the old Boards transfer to the Commonwealth and are managed by the new Offices.\n*   **Clarifies the relationship with the Financial Reporting Council (FRC)** — The FRC (a government oversight body) gives strategic advice to the Boards and their Offices. The Chairs must consider this advice but can override it if they record their reasons and tell the Minister.\n*   **Adds conflict-of-interest rules** — Board members must disclose any financial interests that could affect their work, and generally can't vote on matters where they have a conflict.\n\n**Who it affects:**\n\n*   **Accountants and auditors** — The people who must follow the standards set by these Boards.\n*   **Companies and financial report preparers** — Anyone who prepares financial statements under Australian law.\n*   **Staff of the AASB and AUASB** — Their employer changes, though their jobs and conditions are protected.\n\n**Why it matters:**\n\nThis is a governance clean-up. It makes the standards-setting bodies operate more like other government agencies, with clearer lines of accountability, better oversight of public money, and proper public service employment frameworks — while keeping the actual standards-setting independent from government interference."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/governance-review-implementation-aasb-and-auasb-act-2008","history":"/api/acts/governance-review-implementation-aasb-and-auasb-act-2008/history","analysis":"/api/acts/governance-review-implementation-aasb-and-auasb-act-2008/analysis","conflicts":"/api/acts/governance-review-implementation-aasb-and-auasb-act-2008/conflicts","importantCases":"/api/acts/governance-review-implementation-aasb-and-auasb-act-2008/important-cases","documents":"/api/acts/governance-review-implementation-aasb-and-auasb-act-2008/documents"}}