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Commonwealth act
This Act has been repealed and is no longer in force. It is retained for historical reference.
What this Act did
This Act was the primary framework for managing Commonwealth public finances and auditing government spending from 1901 until its repeal in 1997. It established the rules for how federal government money was handled, reported, and checked.
Key elements:
The Auditor-General: Created this independent office with extensive powers to examine government accounts, summon witnesses, and report directly to Parliament. The Act detailed appointment processes, removal protections, and the scope of audit powers including financial audits and efficiency audits (reviewing whether operations were economical and efficient).
Public Money Management: Established three main funds where government money was held:
Appropriations and Spending: Set out how Parliament authorized spending through appropriation acts (annual budgets), and the detailed procedures for drawing money from accounts, including requirements for authorizing and certifying officers to verify payments were lawful before they were made.
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Direct links to the current provisions in Audit Act 1901.
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View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Accounting Officers: Required specific officers to maintain proper records, render accounts, and made them personally liable for losses caused by misconduct or gross negligence.
Public Authorities: Extended financial accountability requirements to government bodies and corporations (Part XI), requiring commercial-style accounting for some authorities and allowing alternative audit arrangements for others.
Penalties and Recovery: Included criminal offences for misappropriation of public moneys, forgery of documents, and false declarations, as well as civil liability provisions for recovering losses of public property.
Why it mattered: This Act provided the legal backbone for transparency in Commonwealth financial administration, ensuring public money was spent only as authorized by Parliament and subject to independent audit. It established the Auditor-General as a key accountability institution and created the foundational rules for Australian public sector financial management.