The Act’s operative concepts are rights and duties of an independent officeholder; the distinction between public sector and non‑public sector audit targets; powers to compel information and enter premises; protection and controlled disclosure of sensitive information; and periodic external reviews of the auditor‑general.
Independence and discretion: The auditor‑general is an independent officer of the Legislative Assembly (s 6A). Subject to this Act and other territory laws, the auditor‑general “has complete discretion” in exercising functions and is not subject to direction from anyone in relation to whether, how or in what priority audits are carried out (s 7). However, the Act also limits implied powers and creates specified procedural interactions with the Speaker, the relevant Assembly committee and the Executive (eg s 8, s 9B, s 20). The Act therefore establishes a formal independence within the statutory framework that also provides for oversight mechanisms.
Appointment, term and accountability: Appointment is made by the Speaker after consultation with the Chief Minister, Leader of the Opposition, and specified party leaders and “in accordance with an open and accountable selection process” (s 8). The auditor‑general must have extensive knowledge and experience in governance and risk management or public administration, and the relevant Assembly committee must agree to the appointment (s 8(3)). The term is 7 years and non‑renewable (s 8AA), which is a specific mechanism to prevent reappointment incentives.
Scope of audits: The Act defines financial audits (including special financial audits of public sector companies, joint ventures and trusts where the Territory has a controlling interest, s 11), and performance audits (broadly defined as review or examination of any aspect of operations, s 11B, s 12). The auditor‑general must publish an annual performance audit program after consultation (s 13). The Act allows audits of non‑public sector entities when property or other assistance has been provided by a public sector entity and sets thresholds and conditions for such audits (s 13C-D).
Powers to obtain information: The statutory summons power in s 14 can require information, documents and attendance to answer questions, and may require verification by statutory declaration. The auditor‑general may administer an oath or affirmation (s 14A). Failure to comply is an offence (s 14B-14C), and some offences are strict liability (s 14B(3), s 14C(5), s 15A(2)).
Privilege and admissibility: The Act removes the common law privilege against self‑incrimination for the purpose of responding to audit requirements (s 14D(3)). It provides that information obtained because of compelled disclosure is not admissible in evidence against the provider in civil or criminal proceedings other than for offences under the part or the Criminal Code part dealing with false or misleading statements (s 14D(4)). The Act references client legal privilege in the notes (s 14B notes).
Protected information: Pt 5A defines protected information as information disclosed to, or obtained by, auditors because of their statutory functions (s 34). The auditor‑general or authorised person may direct that protected information not be disclosed or be restricted (s 35). Offences attach to unauthorised disclosure (s 35(4), s 36), with penalties including up to 50 penalty units and imprisonment of up to 6 months for deliberate or reckless disclosure (s 36). The Act also allows for exceptions to these prohibitions, including disclosure under the Act, disclosure with the subject person’s consent, disclosure in court proceedings, to prescribed entities, or under a “disclosure direction” by the Minister where the Minister certifies necessity in the public interest (s 36(5)-(6), s 36A).
Internal governance: The auditor‑general may employ staff under the Public Sector Management Act (s 9C), engage contractors (with exclusions for persons who are or have been the independent auditor in the last 12 months, s 9D(2)), delegate functions (s 9F), and requires staff to be subject only to the auditor‑general or authorised staff in relation to audit functions (s 9DA).
Review and oversight: The Act mandates a strategic review once in each term of the Assembly, conducted by an externally engaged strategic reviewer under terms set by the relevant Assembly committee (ss 23-29). The auditor‑general’s financial statements are subject to independent audit by an independent auditor engaged by the Speaker (ss 30-33).
Interaction with other laws: The Act embeds relations with a suite of other laws: the Financial Management Act for financial audit and reporting (see definitions and multiple cross‑references), the Public Sector Management Act for staff, the Legislation Act for instrument and delegation processes, the Criminal Code for offences, and the Corporations Act where the auditor‑general accepts appointment as auditor of public sector companies (s 10A).
Key administrative concepts therefore are statutory independence with particular oversight controls, broad compulsory investigatory powers balanced with non‑admissibility and secrecy protections, a single long non‑renewable term for the officeholder, obligations on audited entities to cooperate (including financial liability to pay audit fees per s 11A), and mechanisms for periodic external review.