The NSW Government has a significant investment in a portfolio of Government businesses and the NSW Treasury seeks to ensure that this investment is managed efficiently and effectively.
The Commercial Policy Framework is the suite of Treasury policies that apply to Government businesses. It includes policies related to the commercial circumstances of these Government businesses and also aims to replicate in Government businesses the disciplines and incentives that lead private sector businesses towards efficient commercial practices.
Treasury policies under the Commercial Policy Framework
Government businesses are covered by a range of legislative requirements that NSW Treasury applies in the development of policy and guidelines, primarily the Government Sector Finance Act 2018. The State Owned Corporations are required to meet certain requirements under the State Owned Corporations Act 1989. Scope of application of the Commercial Policy Framework to Government businesses is included in each policy.
Commercial Policy Framework Treasury Policy Papers for Government Businesses
|TPG22-02||Ownership and Portfolio Expectation Policy||This policy outlines the ownership and portfolio expectations that the Government holds for State Owned Corporations (SOCs), and the mechanism for issuing a Statement of Expectations (SoE).|
|TPG21-10||Capital Structure and Financial Distribution Policy for Government Businesses||Outlines requirements for government businesses to maintain a capital structure that meets the Government’s expectations while making appropriate dividends and capital repayments.|
|TPP18-02||Performance Reporting and Monitoring Policy for Government Businesses||Focuses on reporting and monitoring from a shareholder perspective. Provides for annual Statement of Corporate or Business Intents and quarterly reporting.|
|Government Guarantee Fee Policy for Government Businesses||Requires SOCs and nominated Government businesses to borrow at a cost reflective of their individual credit worthiness.|
|TPP17-10||Guidelines for Governing Boards of Government Businesses||Outlines the Government’s expectations for standards of corporate governance that should be adopted by all governing boards.|
|TPP18-05||Major Projects Policy for Government Businesses||Sets out the notification, assurance, approval and reporting requirements for government businesses planning to undertake a major project.|
|TPP19-02||Guidelines for Community Service Obligations||Sets out the framework for the commissioning, funding and delivery of CSOs by commercial government businesses.|
|TPP21-04||Tax Equivalent Regime||Purpose is to ensure those government businesses that operate in competitive markets are subject to income tax equivalent
payments, in accordance with the principle of competitive neutrality.
|TPP17-11||CEO Appointment Guidelines for Government Businesses||Provides guidance in relation to the appointment and contractual terms, including remuneration, for CEOs or managing directors.|
|TPP18-04||Directors and Officers Indemnity Policy for State Owned Corporations||Guidance on Shareholder approval to requests by SOCs to indemnify their officers under the SOC Act 1989.|
Government businesses are required to comply with a range of other Acts, including for example the annual reporting under the Government Sector Finance Act 2018.
Companies established under the Corporations Act 2001 (Cth) need to comply with the requirements set out in that legislation.