The legislative framework we operate in influences our corporate governance. The most important pieces of legislation are outlined below.
Defence Housing Australia Act 1987
Defence Housing Australia (DHA), formerly known as Defence Housing Authority, was established as a statutory authority20 on 1 January 1988 under the Defence Housing Authority Act 1987. On 23 November 2006, in accordance with the Defence Housing Authority Amendment Act 2006, the Authority was renamed Defence Housing Australia and our principal Act was renamed Defence Housing Australia Act 1987 (DHA Act).
The DHA Act sets out our functions, powers, corporate structure and delegations. In accordance with section 5 of the Act:
- The main function of DHA is to provide adequate and suitable housing for, and housing related services to:
- members of the Defence Force and their families; and
- officers and employees of the Department and their families; and
- persons contracted to provide goods or services to the Department and their families; and
- persons contracted to provide goods or services to the Defence Force and their families;
in order to meet the operational needs of the Defence Force and the requirements of the Department.
In accordance with section 6 of the Act, DHA may provide housing and housing related services to non-corporate Government entities other than the Department of Defence in order to meet the requirements of that entity. We did not provide any such services in 2016–17.
20A statutory authority is a body created by the Parliament for a specific purpose.
Public Governance, Performance and Accountability Act 2013
In accordance with definitions in section 8 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), DHA is both a corporate Commonwealth entity21and a Government Business Enterprise (GBE).22
21A corporate Commonwealth entity is a corporate body, established by a law of the Commonwealth but legally separated from it. Corporate Commonwealth entities can act in their own right and exercise certain legal rights such as entering into contracts and owning property.
22A GBE is a body created when the Australian Government wishes to conduct some sort of commercial enterprise at arm’s length from usual departmental structures and processes. DHA became a GBE in 1992 and, as at 30 June 2017, was one of two GBEs prescribed in section 5(1) of the PGPA Rule.
As its name suggests, this Act and the Public Governance Performance and Accountability Rule 2014 (PGPA Rule), set the standards of governance, performance and accountability for Commonwealth entities and companies. The Act also imposes specific duties on our Board of Directors and senior executives relating to the use and management of resources.
As a GBE, DHA must also operate in accordance with the Commonwealth Government Business Enterprise Governance and Oversight Guidelines (GBE Guidelines). The Guidelines prescribe additional considerations on Board and corporate governance, financial governance and planning and reporting. A principal objective of the Guidelines is that we must add to shareholder value by making commercial returns and paying commercial dividends. We must deliver on these requirements while also fulfilling our functions under the DHA Act.
Other applicable legislation
DHA is the only GBE that employs its staff under the Public Service Act 1999. As an Australian Government employer we must also adhere to the provisions and statutes of various employment related legislation including, but not limited to, the Fair Work Act 2009 and the Work, Health and Safety Act 2011.
As a statutory agency we must also operate in accordance with Commonwealth legislation including, but not limited to: