The Fraud Rule is changing
The Commonwealth Fraud Prevention Centre is considering amending the Commonwealth Fraud Rule (section 10 of the Public Governance, Performance and Accountability (PGPA) Rule 2014).
The Fraud Rule is a legislative instrument binding all Commonwealth entities, and a part of the 2017 Commonwealth Fraud Control Framework available on our website.
The amendments will seek to introduce new requirements for Commonwealth entities to take measures to prevent, detect and deal with corruption, alongside existing requirements for counter-fraud. These changes will complement the establishment of the National Anti-Corruption Commission, and are part of a suite of reforms to improve the standards of integrity across the public sector.
The Centre is also considering other ways the Fraud Rule could be strengthened to better align with the current industry standard, ‘AS8001:2021 Fraud and Corruption Control’, and the new Commonwealth Risk Management Policy. Elements which could be better reflected in the rule include greater accountability of senior leaders, establishment of sound governance and assurance of existing controls. In addition, reporting of fraud data is an area the Centre is considering strengthening, to enable a greater understanding of the fraud problem.
It is proposed an updated Fraud Rule would be published by mid-2023, however consideration is being given to when changes come into effect, to give entities time to implement required changes.
How to get involved
The Centre will be undertaking broad consultation of all PGPA entities. In February 2023, we will seek feedback via a mailout of a consultation paper in February to all PGPA entity CFOs and LLOs for internal coordination and feedback. We will also be providing the consultation paper to our Commonwealth Senior Officers Fraud Forum and Commonwealth Fraud Reference Group contacts, to ensure it reaches relevant areas for feedback.
There will be another opportunity to provide formal comments on an exposure draft of the rule over the coming months.
The Attorney-General’s Department will also be updating the Fraud Control Policy and associated guidance (Resource Management Guide 201) within the framework in 2023. These changes will align the policy with the new rule and provide further detail to entities to assist in meeting their fraud and corruption control obligations.
If you have any questions about this review, please contact us at firstname.lastname@example.org.