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 Public Finance and Audit Act 1983. 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
|TPP 05-2||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.|
|TPP 16-4||Financial Distribution Policy for Government Businesses||Purpose is to subject Government businesses to the discipline of making dividend and capital repayments.|
|TPP 16-3||Capital Structure Policy for Government Businesses||Provides a framework for determining target capital structure.|
|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.|
|TPP 03-4||Tax equivalent regime for Government businesses||Outlines the obligations for certain government businesses to pay income tax equivalents to comply with National Competition Policy requirements|
|TPP 17-11||CEO Appointment Guidelines for Government Businesses||Provides guidance in relation to the appointment and contractual terms, including remuneration, for CEOs or managing directors.|
|TPP 03-6||State Owned Corporation Indemnity Policy||Guidance on Shareholder approval to requests by SOCs to indemnify their officers under the SOC Act 1989.|
|TPP 02-4||Guidelines for Assessment of Projects of State Significance||A whole-of-Government approach to the assessment of projects where the State may incur substantial long-term or contingent liabilities.|
Other relevant Treasury policy papers for Government businesses
|TPP 07-7||Treasury Management Policy||Overarching framework for managing the risks associated with treasury functions.|
|TPP 07-4||Guidelines for Financial Appraisal||Government businesses are to ensure that capital expenditure projects commencing in the budget year have been subject to financial appraisals.|
|TPP 13-3||Total Asset Management (TAM) Submission requirements||TAM principles for preparing 10 year capital expenditure data.|
Government businesses are required to comply with a range of other Acts, including for example the Annual Reports (Statutory Bodies) Act 1984 and the Public Finance and Audit Act 1983.
Companies established under the Corporations Act 2001 (Cth) need to comply with the requirements set out in that legislation.