Compliance Framework
Compliance Driver
Australia's Foreign Relations (State and Territory Arrangements) Act 2020 (Cth)
Classification
Level 1
University-wide concern. Impacts on reputation and funding.
Associated Legislation
Associated Standards
None
Associated Codes
None
Associated Information
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Administrative Information
Administrative Body
Department of Foreign Affairs and Trade
Administrative Name
Minister for Foreign Affairs
Administrative Address
Administrative Phone
Administrative Email
foreignarrangements@dfat.gov.au
Administrative Website
https://www.foreignarrangements.gov.au/
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General Introduction
VC Compliance Delegate
Radha Thomas, Director Governance and University Secretary
Compliance Coordinator
Radha Thomas, Director Governance and University Secretary
Business Units Impacted
Overview
The objective of the Foreign Arrangements Scheme is to ensure that the Commonwealth Government is able to protect and manage Australia’s foreign relations by ensuring that arrangements between a state, territory, local government or university and a foreign entity do not adversely affect Australia’s foreign relations and are not inconsistent with Australia’s foreign policy.
The Act imposes an ongoing obligation (commencing 10 March 2021) on states, territories, local governments and universities to notify new arrangements (after 10 March 2021) to the Minister.Compliance Obligations
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Approval of prospective core and non-core foreign arrangements
Description
The Minister for Foreign Affairs (the Minister) must be notified of a proposal to negotiate or enter a core foreign arrangement. If the arrangement is entered into, the Minister must also be notified about that within 14 days.
The Minister must consider the proposed negotiation or entry of the arrangement, and make a decision whether to approve. The Minister must approve if satisfied that the proposed negotiation or arrangement:
• would not adversely affect, or would be unlikely to adversely affect, Australia’s foreign relations; and
• would not be, or would be unlikely to be, inconsistent with Australia’s foreign policy.
Impacts
If the University enters into an arrangement with a core foreign entity without the Minister’s approval, the arrangement will be invalid and unenforceable, be required to be terminated, or not be in operation. The University will also be prohibited from giving effect to the arrangement and from holding out that it is able to give effect to the arrangement.
Breach Impact Financial:
Primary offences: Maximum penalties of 500 penalty units for corporations for:
Entering arrangements without notification
Failing to notify variations
Non-compliance with ministerial decisions
Providing false or misleading information
Continuing offences: Additional daily penalties of 50 penalty units for ongoing non-compliance. Accumulating until breach is remedied
Breach Impact Non-Financial:Regulatory Actions:
Invalidation of foreign arrangements
Ministerial declarations voiding agreements
Mandatory termination of non-compliant arrangements
Prohibition on entering new arrangements
Administrative Impact:
Enhanced oversight requirements
Mandatory reporting obligations
Increased scrutiny of future arrangements
Compliance monitoring programs.
Executive Liability: Indirect. While the Act doesn't create personal liability, failure to comply with its requirements may expose directors and officers to a Breach of duty (under common law, legislation such as UNE Act or TEQSA, or the Corporations Act 2001 (Cth) for: Failing to act with due care and diligence; Failing to ensure legal compliance; Causing reputational or financial harm to the entity.
Criminal Penalty/Offence: Yes
Responsible Manager
Radha Thomas, Director Governance and University Secretary
Coordinating Officer
Radha Thomas, Director Governance and University Secretary
Coordinating Unit
Office of the Director Governance and University Secretary
Oversight Committee/Group
None
Business Units Impacted
Obligation Framework
Associated Legislation
None
Associated Standard
None
Associated Code
None
Associated Information
None
Management Tools
Rule
None
Policy
None
Protocol
None
Procedure
None
Guideline
None
Other Websites
Compliance Overview