Chapter 2 - Annual reports of agencies

Chapter 2Annual reports of agencies

Annual reports from the Attorney-General’s portfolio

2.1The annual reports of the following agencies were referred to the committee for examination and report:

the Independent National Security Legislation Monitor (INSLM);

the High Court of Australia; and

the Family Law Council.

2.2All of the agencies are subject to reporting obligations arising from their enabling legislation, rather than under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Independent National Security Legislation Monitor

2.3The INSLM’s annual report was tabled in the Senate and the House of Representatives on 6 February 2023.

2.4This is the third report by the fourth INSLM, Mr Grant Donaldson SC, whose term commenced on 1 July 2020 and was made permanent on 26November2020.

Reporting obligations

2.5The INSLM is a statutory office holder established under the Independent National Security Legislation Monitor Act 2010 (the INSLM Act).

2.6Section 29 of the INSLM Act outlines the reporting obligations for INSLM’s annual report. The reporting obligations are as follows:

The Independent National Security Legislation Monitor must prepare and give to the Attorney-General a report (an annual report):

(a)relating to the performance of the Monitor's functions as set out in paragraphs 6(1)(a) and (b), including information relating to the performance of the Monitor's functions as set out in subsection 6(1A); and

(b)containing such details relating to the performance of the Monitor's function as set out in paragraph 6(1)(c) as the Monitor considers appropriate.[1]

2.7Section 6 of the INSLM Act outlines the functions of the INSLM as follows:

The Independent National Security Legislation Monitor has the following functions:

(a)to review, on his or her own initiative, the operation, effectiveness and implications of:

(i)Australia's counter-terrorism and national security legislation; and

(ii)any other law of the Commonwealth to the extent that it relates to Australia's counter-terrorism and national security legislation;

(b)to consider, on his or her own initiative, whether any legislation mentioned in paragraph (a):

(i)contains appropriate safeguards for protecting the right of individuals; and

(ii)remains proportionate to any threat of terrorism or threat to national security, or both; and

(iii)remains necessary.

If a matter is referred to the Independent National Security Legislation Monitor by the Committee on Intelligence and Security under section 7A, the Monitor may perform the function set out in paragraph 1(a), (b) or (ca) in relation to the matter.[2]

(iv)

(v)

(vi)

(vii)

(viii)

(ix)

(x)

(xi)

(xii)

(xiii)

(xiv)

(xv)

(xvi)

(xvii)

(xviii)

(xix)

(xx)

(xxi)

(xxii)

(xxiii)

(xxiv)

(xxv)

(xxvi)

(xxvii)

(xxviii)

2.8During the financial year, the INSLM completed a review of the National Security Information (Criminal and Civil Proceedings) Act 2004 (Cth), which was initiated on 2 March 2021. The INSLM also reported he is in the process of a review of the Criminal Code Act 1995 (Cth).[3]

2.9In accordance with paragraph 6(1)(b) of the INSLM Act, the INSLM must complete a statutory review as soon as practicable of the National Security Legislation Amendment (Espionage and Foreign Interference) Act 2018 (Cth).[4] He noted that this review will be formally announced in due course.[5]

2.10In accordance with paragraph 6(1)(b) of the INSLM Act, the annual report considers matters relating to national terrorism threat level, domestic threats, external threats and foreign interference.[6]

Conclusion

2.11The committee considers this annual report to meet the reporting obligations under Section 29 of the INSLM Act, and therefore finds it to be ‘apparently satisfactory’.

High Court of Australia

2.12The annual report of the High Court of Australia (the High Court) was tabled in the Senate and the House of Representatives on 7 March 2023.

Reporting obligations

2.13The High Court is an ‘agency’ within the Attorney-General’s portfolio, but it is not considered a Commonwealth entity under the PGPA Act due to the status it is provided by its enabling legislation.[7]

2.14The annual reporting obligations for the High Court are set out under section 47 of the High Court of Australia Act 1979 (the High Court Act) as follows:

The High Court shall, as soon as practicable after 30 June in each year, prepare and submit to the Minister a report relating to the administration of the affairs of the Court under section 17 during the year that ended on that 30 June, together with financial statements in respect of that year in such form as the Finance Minister approves.[8]

2.15Section 17 of the High Court Act empowers the High Court to ‘administer its own affairs subject to, and accordance with [the] Act.’[9] It states:

The Court has power for the purposes of the Court to do all things that are necessary or convenient to be done for or in connection with the administration of its affairs and, without limiting the generality of the foregoing, has power:

(a) to enter into contracts;

(b) to acquire, hold and dispose of real and personal property;

(c) to take on hire, to exchange, and to accept on deposit or loan, library material, and also furnishings, equipment and goods needed for the purposes of the Court;

(d)to control and manage any land or building occupied by the Court and any adjacent land or building that is declared by Proclamation to be part of the precincts of the Court;

(e)to accept gifts, devises and bequests made to the Court upon trust and act as trustee of moneys or other property vested in the Court upon trust; and

(f)to do such other things as it is authorized by this Act to do.[10]

Administration of the affairs of the Court

2.16The annual report stated that the High Court entered into or made payments under 22 consultancy contracts. The total value of these contracts was $635,401 (including GST).[11]

2.17The annual report identified a number of other projects relating to human resources, work health and safety, asset, risk, information and knowledge management:

Various strategies and initiatives to reduce the impact of COVID-19 as restrictions lifted. These strategies were complimented with a series of programs focusing on employee wellbeing.[12]

The Court provided a series of training initiatives relating to the work health and safety of employees.[13]

The completion of a series of asset management tasks for the Canberra building, including re-design and installation of accessible bathrooms, removing of asbestos containing material from the building and emergency lighting upgrade.[14]

The implementation of risk management policies to reduce the risks across the administration of the court.[15]

The implementation of new initiatives to improve cyber security and vulnerability management.[16]

The usage of the Court’s Library to develop specialised legal research training sessions.[17]

Financial statements and inspection by the Auditor-General

2.18In accordance with subsection 47(1) of the High Court Act, the relevant financial statements are incorporated in Part 5 of the annual report.

2.19In 2021–22, the High Court recorded a deficit of $7.706 million, with an income (including revenue from appropriations) of $20.238 million and operating expenses amounting to $27.945 million.[18] The annual report noted that the High Court’s underlying operational result was a surplus of $0.053 million and that the High Court received an equity injection of $3.439 million, including departmental capital budget.[19]

2.20Subsection 47(2) of the High Court Act requires the Auditor-General to inspect the High Court's financial statements and report to the Attorney-General:

(a)whether, in his or her opinion, the statements are based on proper accounts and records;

(b)whether the statements are in agreement with the accounts and records;

(c)whether, in his or her opinion, the receipt, expenditure and investment of money, and the acquisition and disposal of assets, by the Court during the year have been in accordance with this Act; and

(d)as to such other matters arising out of the statements as the Auditor-General considers should be reported to the Minister.[20]

2.21The Auditor-General’s report was submitted to the Attorney-General on 29September 2022 and is available in Part 5 of the annual report. The report indicated that all materials under section 17 of the High Court Act are in accordance with the Act.[21]

2.22Subsection 47(3) requires the minister to table the annual report, together with the financial statements and the Auditor-General’s report, ‘before each House of Parliament within 15 days of that House after their receipt by the Minister’.[22] The report was received by the Attorney-General on 30 November 2022 and was tabled on 7 March 2023 in both the Senate and the House of Representatives. Therefore, the tabling of the Court's annual report, financial statements and Auditor-General's report met the requirements of that provision.

Conclusion

2.23The committee considers the annual report to meet the reporting obligations under section 47 of the High Court Act and therefore finds it ‘apparently satisfactory’.

Family Law Council

2.24In accordance with subsection 115(1) of the Family Law Act 1975 (Family Law Act), ‘[t]he Attorney-General may establish a Family Law Council [the Council] consisting of persons appointed by the Attorney-General in accordance with subsection (2)'.[23] On 7December 2021, the Council was reconstituted, and 11 members were appointed.[24]

2.25Subsection 115(9) of the Family Law Act requires the Council to:

…as soon as practicable after 30 June in each year, prepare and furnish to the AttorneyGeneral a report of the operations of the Council during the year that ended on that 30 June.[25]

2.26In accordance with subsection 115(10), the Council's annual report is required to be tabled within 15 days of its receipt by the Attorney-General. The report was received by the Attorney-General on 1 November 2022 and was tabled on 23November2022 in both the Senate and the House of Representatives, therefore fulfilling the requirements of that provision.

The Family Law Council's year in review

2.27The Council reported that it met twice during the financial year 'to discuss the direction of the newly reconstituted Council, and current issues in the family law system which require the Council's attention'.[26]

2.28The Council reported that it considered the recommendations of the Joint Select Committee on Australia's Family Law System second interim report (JSC second interim report). It determined that recommendation 10 of that report is a high priority.[27]

2.29Recommendation 10 of the JSC second interim report stated:

The committee recommends that the Australian Government re-constitute the Family Law Council and that the Family Law Council be tasked with determining how to make the family law courts less adversarial. In the interim, the committee recommends that courts better utilise the less adversarial trial approach in Division 12A of Part VII of the Family Law Act 1975.

The committee also recommends that in considering how to make the family court less adversarial, the re-constituted Family Law Council should consider how best to involve the voice of children in parenting proceedings in appropriate cases. This should include consideration of the establishment of a Children's and Young People's Advisory Board.[28]

Conclusion

2.30The committee considers the annual report to meet the reporting obligations under subsection 115(9) of the Family Law Act and therefore finds it to be ‘apparently satisfactory’.

Senator Nita Green

Chair

Footnotes

[1]Independent National Security Legislation Monitor Act 2010 (INSLM Act), s.29.

[2]INSLM Act, s. 6.

[4]INSLM Act, para. 6(1)(b).

[5]Independent National Security Monitor Annual Report 2021-2022, pp. 12-13.

[6]Independent National Security Monitor Annual Report 2021-2022, pp. 15-20.

[7]Department of Finance, Flipchart of PGPA Commonwealth entities and companies (189), 3 July 2023, https://www.finance.gov.au/government/managing-commonwealth-resources/structure-australian-government-public-sector/pgpa-act-flipchart-and-list (accessed 14 August 2023). See also, section 10(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), which expressly identifies the High Court as not falling with the definition of a 'Commonwealth entity'.

[8]High Court of Australia Act 1979 (High Court Act), ss. 47(1).

[9]High Court Act, ss. 17(1).

[10]High Court Act, ss. 17(2).

[11]High Court of Australia 2021-2022 Annual Report, p. 27.

[12]High Court of Australia 2021-2022 Annual Report, p. 28.

[13]High Court of Australia 2021-2022 Annual Report, p. 28.

[14]High Court of Australia 2021-2022 Annual Report, p. 29.

[15]High Court of Australia 2021-2022 Annual Report, p. 29.

[16]High Court of Australia 2021-2022 Annual Report, p. 30.

[17]High Court of Australia 2021-2022 Annual Report, p. 30.

[18]High Court of Australia 2021-2022 Annual Report, p. 26.

[20]High Court Act, ss. 47(2).

[21]High Court of Australia 2021-2022 Annual Report, p. 36.

[22]High Court Act, ss. 47(3).

[23]Family Law Act 1975 (Family Law Act), ss. 115(1).

[24]Family Law Council 2021-22 Annual Report, p.1.

[25]Family Law Act, ss. 115(9).

[26]Family Law Council 2021–22 Annual Report, p.1.

[27]Family Law Council 2021–22 Annual Report, p.1.

[28]Joint Select Committee on Australia's Family Law System, Improvements in family law proceedings: Second interim report, March 2021, p. 56.