New South Wales: Government Sector Finance Act 2018 (NSW)

Government Sector Finance Act 2018 No 55 An Act to establish a framework for government sector financial and resource management in New South Wales; and for other purposes. Part 1 Preliminary Division 1.1 Introduction 1.1 Name of Act This Act is the Government Sector Finance Act 2018. 1.2 Commencement (1) This Act commences on a day or days to be appointed by proclamation, except as provided by this section. (2) Section 10.4 (Regulations) and Schedule 1 commence on the date of assent to this Act. 1.3 Objects of Act The objects of this Act are as follows— (a) to promote and support sound financial management, budgeting, performance, financial risk management, transparency and accountability in the government sector and by GSF agencies and government officers, (b) to facilitate the effective devolution of roles and responsibilities in connection with financial management to support efficient and effective government, (c) to require the efficient, effective and economical use and management of government resources and related money in accordance with the principles of sound financial management, (d) to promote appropriate stewardship of government resources and related money, (e) to facilitate cooperation and collaboration within and between GSF agencies for the purpose of achieving common objectives and whole of Government objectives, (f) to facilitate the keeping and sharing of performance information in the government sector for the purposes of decisions about resource allocation. Division 1.2 Interpretation generally 1.4 General definitions In this Act— accountable authority— (a) for a GSF agency—see section 2.7, or (b) for a university or its controlled entities (including ones that are to be treated as GSF agencies or reporting GSF agencies for the purposes of provisions of this Act)—means the governing body of the university (that is, its Senate, Council or Board). annual Appropriation Act means an Act with the object of appropriating sums of revenue or moneys for the ordinary annual services of the Government (as referred to in section 5A of the Constitution Act 1902). annual GSF financial statements for a reporting GSF agency—see section 7.6. annual reporting information for a reporting GSF agency—see section 7.11. annual reporting period— (a) for a GSF agency—see section 2.10, or (b) for the NSW Government—see section 2.11. arrangement for the purposes of Part 6—see section 6.5. assets means any legal or equitable estate or interest (whether present or future, whether vested or contingent and whether personal or assignable) in real or personal property of any description (including money), and includes securities, choses in action and documents. Audit Office means the Audit Office of New South Wales established by the Government Sector Audit Act 1983. audit report, in relation to a statement or report, means an audit report for the statement or report prepared by the Auditor-General under section 34 of the Government Sector Audit Act 1983. Auditor-General means the Auditor-General referred to in section 27B of the Government Sector Audit Act 1983. Australian Accounting Standards means the standards issued by the Australian Accounting Standards Board, as in force from time to time. authorised in relation to financial arrangement for a GSF agency—see section 6.22. banking account—see section 6.4. banking account structuring—see section 6.4. banking information of a GSF agency—see section 6.4. banking service—see section 6.4. borrowing—see section 6.8. Budget control authority means a Budget control authority issued under section 5.1. Budget Papers—see section 4.1. company State owned corporation means a company State owned corporation within the meaning of the State Owned Corporations Act 1989. conduct includes an omission. Consolidated Fund means the fund formed as referred to in section 39 of the Constitution Act 1902. Consolidated State Financial Statements—see section 7.17. constituent Act, in relation to a GSF agency or other entity, means the Act by or under which the agency or entity is appointed or constituted. contractor means— (a) a person engaged under a contract for services (but not a contract of service) to perform or provide services for or on behalf of a GSF agency, or (b) a person who is provided by a person referred to in paragraph (a) (including as a subcontractor) to perform the contracted services for or on behalf of a GSF agency. controlled entity—see section 2.2. Corporations legislation means the Corporations legislation to which Part 1.1A of the Corporations Act 2001 of the Commonwealth applies. delegable function—see section 9.7. Department means a Department within the meaning of the Government Sector Employment Act 2013. derivative arrangement—see section 6.10. enter into a financial arrangement or other arrangement includes participating in the arrangement. entity—see section 2.1. expenditure of money includes— (a) the commitment of money for expenditure, and (b) the incurring of expenditure, and (c) the making of payments. financial arrangement—see section 6.7. financial arrangement approval—see section 6.23. financial service—see section 6.6. function includes a power, authority or duty, and exercise a function includes perform a duty. funds manager approval—see section 6.35. General Government Sector means New South Wales agencies or activities listed or described as part of the General Government Sector by the Australian Bureau of Statistics (which are listed or described in accordance with international statistics conventions). general law means the common law and equity, including the common law concerning the content and exercise of Executive or prerogative powers, privileges or other rights of the Crown. governing body, in relation to a GSF agency, means— (a) a board, council or other body comprised of individuals that are collectively responsible for managing the affairs of the agency, or (b) any other entity declared by the regulations to be the governing body for the agency, but does not include— (c) any board, council or other body with merely advisory functions, or (d) any entity (or entity of a kind) prescribed by the regulations not to be a governing body. government money means— (a) any public money (including any securities and revenues, loans and other moneys whatsoever) collected, received or held by any person for or on behalf of the State (as referred to in section 39 (1) of the Constitution Act 1902), and (b) any territorial, casual and other revenues of the Crown (including all royalties), from whatever source arising, within New South Wales, and as to the disposal of which the Crown may otherwise be entitled absolutely, conditionally or in any other way (as referred to in section 39 (2) of the Constitution Act 1902), and (c) any money that, under any Act, is directed or authorised to be paid to, or is expressed to form part of, the Consolidated Fund or the Special Deposits Account (including money in working accounts in the Special Deposits Account), and (d) any money (or money of a kind) prescribed by the regulations as government money, but does not include anything prescribed by the regulations not to be government money. government officer—see section 2.9. Note— Section 2.9 also defines when a government officer is a government officer of a GSF agency. government property means all property held by, for or on behalf of the State or a GSF agency (whether or not it is held on trust) except— (a) government money or related money, or (b) property held on trust for the benefit of an entity other than a GSF agency. government resources means government money and government property. GSF agency—see section 2.4. head of a GSF agency means— (a) for a Public Service agency—the person who is the head of the Public Service agency (within the meaning of the Government Sector Employment Act 2013), or (b) for any other agency—the person who is the chief executive officer (however described) of the agency or otherwise responsible for the agency's day to day management, but not its governing body (if any). investment—see section 6.9. joint financing arrangement—see section 6.11. joint venture—see section 6.12. joint venture arrangement—see section 6.12. kind, in relation to an entity, matter or thing, includes a class of entity, matter or thing. law means legislation or the general law. legislation includes Acts, statutory rules and environmental planning instruments. liabilities means any liabilities, debts or obligations (whether present or future, whether vested or contingent and whether personal or assignable). misconduct, in relation to a government officer to whom the Government Sector Employment Act 2013 applies, includes (but is not limited to) misconduct for the purposes of that Act. New South Wales Treasury Corporation means the New South Wales Treasury Corporation constituted by the Treasury Corporation Act 1983. NSW Health entity—see section 2.3. paramount provision of this Act—see section 1.8. person handling government resources means each of the following— (a) a government officer, (b) a person exercising functions as an accountable authority for a GSF agency, (c) a person exercising functions as a delegate or subdelegate in connection with the use, management or disposal of government resources or related money, (d) a person providing services to a GSF agency in connection with the use, management or disposal of government resources or related money (including as a contractor, consultant or volunteer), (e) any other person (or person of a kind) prescribed by the regulations exercising functions in connection with the use, management or disposal of government resources or related money, but does not include a Minister. prescribed reporting exemption criteria—see section 7.3. principal entity in relation to a joint financing arrangement—see section 6.11. property means property of all kinds, whether real or personal and whether tangible or intangible and, in particular, includes choses in action. Public Service agency has the same meaning as in the Government Sector Employment Act 2013. related money means— (a) any money, except government money, held by the Treasurer or another Minister or a GSF agency or government officer in the course of their official functions, including money that is held on trust for another entity or for a purpose, and (b) any money (or money of a kind), except government money, prescribed by the regulations as related money, but does not include anything prescribed by the regulations not to be related money. relevant agency information about a GSF agency—see section 9.1. reporting GSF agency—see section 7.3. responsible manager for an SDA account—see section 4.16. responsible Minister— (a) for a GSF agency—see section 2.6, and (b) for a university or its controlled entities (including ones that are to be treated as GSF agencies or reporting GSF agencies for the purposes of provisions of this Act)—means the Minister administering the constituent Act for its governing body (that is, its Senate, Council or Board). rights means any rights, powers, privileges or immunities (whether present or future, whether vested or contingent and whether personal or assignable). SDA account means an account in the Special Deposits Account. secondary entity in relation to a joint financing arrangement—see section 6.11. separate GSF agency—see section 2.5. separate GSF agency delegable function of a Minister in relation to a separate GSF agency—see section 9.7. Special Deposits Account—see section 4.15. State owned corporation means a company State owned corporation or a statutory State owned corporation. statutory special purpose fund means a fund established by or under an Act (except an SDA account) that limits the use of money in that fund to specified purposes. statutory State owned corporation means a statutory State owned corporation within the meaning of the State Owned Corporations Act 1989. Treasurer's directions means any directions given by the Treasurer under Division 3.1. trust means a trust at general law. trust money means money that is held in trust. university means a university established or continued by an Act of New South Wales. Workers Compensation Insurance Fund means the Workers Compensation Insurance Fund established under the Workers Compensation Act 1987 (including the assets and liabilities of that Fund). Workers Compensation Nominal Insurer means the Workers Compensation Nominal Insurer referred to in section 154A of the Workers Compensation Act 1987. working day means any day that is not a Saturday, Sunday or public holiday. Note— The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. 1.5 Notes Notes included in this Act do not form part of this Act. Division 1.3 Application of Act 1.6 Act binds Crown This Act binds the Crown. 1.7 Extraterritorial operation of Act (1) It is the intention of the Parliament of New South Wales that the operation of this Act should, as far as possible, include operation in relation to the activities of Ministers, GSF agencies, accountable authorities for GSF agencies and government officers whether occurring in or outside the territorial limits of the State. (2) Without limiting subsection (1), it is the intention of the Parliament of New South Wales that the provisions of this Act have an operation in relation to those activities even if the rules of private international law (whether under general law or legislation) would require the application of a law other than this Act instead of the provisions of this Act. (3) In this section— activities include conduct and transactions. Division 1.4 Relationship of Act with other laws 1.8 Relationship with other legislation generally (1) This Act, the regulations and the Treasurer's directions are not intended to limit or exclude the operation of any other legislation (whenever enacted or made), except as provided by this section. (2) A paramount provision of this Act is to be interpreted as prevailing over the provisions of other legislation (whenever enacted or made) to the extent of any inconsistency unless another Act expressly provides for the legislation generally, or those provisions specifically, to have effect despite this Act generally or the paramount provision. (3) Each of the following is a paramount provision of this Act— (a) section 5.3 (Payment of tax-equivalents to Treasurer), (b) section 5.4 (Payment of financial distributions to Treasurer), (c) Part 6 (Financial services and arrangements), (d) Part 7 (Reporting), subject to sections 7.1, 7.4 and 7.10. (4) When a paramount provision of this Act prevails over the provisions of other legislation, a person or other entity to whom the paramount provision applies must comply with the paramount provision (including any regulations made for the purposes of that provision) even if it may result in a contravention of the other legislation. (5) However, subsection (4) does not apply if compliance by a person or other entity with a paramount provision of this Act would result in that person or other entity committing an offence against other legislation. (6) To avoid doubt, a contravention of other legislation resulting from compliance with a paramount provision of this Act (or regulations made for the purposes of that provision) as required by subsection (4) does not— (a) subject any person or other entity involved in the contravention to any civil liability, or (b) invalidate any arrangement, transaction or conduct that was entered into or done in compliance with the paramount provision (or the regulations for the purposes of that provision). (7) This section and each paramount provision of this Act are declared to be Corporations legislation displacement provisions for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth generally. Note— Section 5G of the Corporations Act 2001 of the Commonwealth enables a State to displace the operation of provisions of the Corporations legislation in favour of provisions of State laws that are declared under State law to be Corporations legislation displacement provisions for the purposes of that section. (8) In this section— arrangement has the same meaning as in Part 6. 1.9 Exclusion or displacement of Corporations legislation (1) The regulations may declare any matter referred to in, or arising under or in connection with, this Act or the regulations to be an excluded matter for the purposes of section 5F of the Corporations Act 2001 of the Commonwealth in relation to— (a) the whole of the Corporations legislation, or (b) a specified provision of that legislation, or (c) that legislation other than a specified provision, or (d) that legislation otherwise than to a specified extent. Note— Section 5F of the Corporations Act 2001 of the Commonwealth provides that if a State law declares a matter to be an excluded matter for the purposes of that section in relation to all or part of the Corporations legislation, the provisions that are the subject of the declaration will not apply in relation to that matter in the State concerned. (2) The regulations may declare any provision of this Act to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth (either generally or specifically in relation to a provision of the Corporations legislation). Note— Section 5G of the Corporations Act 2001 of the Commonwealth enables a State to displace the operation of provisions of the Corporations legislation in favour of provisions of State laws that are declared under State law to be Corporations legislation displacement provisions for the purposes of that section. (3) Subsections (1) and (2) do not apply in relation to any provisions or other matters that are already declared by another provision of this Act to be excluded matters or Corporations legislation displacement provisions for the purposes of section 5F or 5G of the Corporations Act 2001 of the Commonwealth. Note— Section 1.8 declares a paramount provision of this Act to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth generally. (4) In this section— matter includes conduct, body, person or thing. Part 2 Key concepts Division 2.1 Entities generally 2.1 Entities (1) Each of the following is an entity— (a) a person, (b) a body or group of persons (whether incorporated or unincorporated), (c) a partnership or joint venture, (d) the trustee (or, if there is more than one trustee, the trustees together) of a trust, (e) any other legal, administrative or fiduciary arrangement or other organisational structure capable of deploying resources to achieve objectives. Note— Section 21 (1) of the Interpretation Act 1987 defines person to include an individual, a corporation and a body corporate or politic. (2) To avoid doubt, entities are not limited to those that are formed or located in the State. 2.2 Controlled entities (1) An entity is a controlled entity of another entity or a combination of other entities if— (a) the entity is— (i) an entity that is controlled by the other entity or combination of entities (with control being determined in accordance with section 50AA of the Corporations Act 2001 of the Commonwealth), or (ii) an entity that is controlled by the other entity or combination of entities (with control being determined in accordance with the Australian Accounting Standards), or (b) the entity is an entity (or an entity of a kind) prescribed by the regulations as a controlled entity. (2) If the Treasurer considers that it is unclear whether an entity is controlled by another entity or a combination of entities for the purposes of subsection (1) (a) (i) or (ii), the Treasurer may make an interim written determination (an interim status determination) that the entity is to be treated, or not to be treated, as being a controlled entity of the other entity or combination of entities for the purposes of this Act until regulations are made declaring the entity's status. (3) An interim status determination— (a) takes effect on the day it is published on the Treasury's website or any later day specified in the determination, and (b) ceases to have effect when the earliest of the following occurs— (i) the expiry of the period of 3 months after the determination takes effect, (ii) the revocation of the determination, (iii) a regulation made for the purposes of subsection (6) takes effect declaring the entity's status. (4) An interim status determination may be revoked by the Treasurer before it ceases to have effect by a further written notice published on the Treasury's website. (5) An entity to which an interim status determination relates is to be treated, or not to be treated, as being a controlled entity of the other entity or combination of entities for the purposes of this Act in accordance with the determination while it remains in effect. (6) Without limiting subsection (1) (b), the regulations may declare that for the purposes of this Act an entity to which an interim status determination relates is, or is not, a controlled entity of another entity or combination of entities specified in the determination. 2.3 NSW Health entities (1) Each of the following is a NSW Health entity— (a) a statutory health organisation within the meaning of the Health Services Act 1997, (b) the Health Administration Corporation incorporated by the Health Administration Act 1982 and each of its controlled entities, (c) the Cancer Institute (NSW) constituted by the Cancer Institute (NSW) Act 2003, (d) the New South Wales Health Foundation constituted by the Health Administration Act 1982, (e) the Albury Base Hospital (being a public hospital controlled by the Crown as referred to in section 15 (d) of the Health Services Act 1997), (f) any other entity (or entity of a kind) prescribed by the regulations as a NSW Health entity. (2) However, a NSW Health entity does not include any entity (or entity of a kind) prescribed by the regulations not to be a NSW Health entity. (3) The Minister is not to recommend the making of a regulation for the purposes of subsection (1) (f) or (2) unless the Minister certifies that the Minister administering the Health Services Act 1997 has concurred in the making of the regulation. (4) To avoid doubt, the exclusion of an entity (or entity of a kind) by a regulation made for the purposes of subsection (2) does not result in the entity (or entity of the kind) ceasing to be a GSF agency if it otherwise falls within the definition of GSF agency in section 2.4. Division 2.2 GSF agencies and related concepts 2.4 GSF agencies (1) Each of the following is a GSF agency— (a) a separate GSF agency, (b) a NSW Health entity, (c) the NSW Police Force, (d) the New South Wales Treasury Corporation, (e) (Repealed) (f) the Independent Pricing and Regulatory Tribunal, (g) a Council within the meaning of Part 5A of the Health Practitioner Regulation National Law (NSW), (h) a State owned corporation, (i) an entity that is a statutory body representing the Crown (including an entity that is a NSW Government agency to which section 13A of the Interpretation Act 1987 applies), (j) an entity with money held in an SDA account (but the account itself is not to be treated as being a GSF agency), (k) any Public Service agency not already covered by a previous paragraph, (l) any other entity (or entity of a kind) prescribed by the regulations as a GSF agency. (2) Each of the following entities (except if they are individuals) is also a GSF agency if it is not already an entity of a kind referred to in subsection (1)— (a) an entity that is a controlled entity of another entity (or a combination of other entities) referred in subsection (1), (b) an entity that is a controlled entity of a Minister or a combination of Ministers. (3) To avoid doubt, an entity that is a joint venture is not a GSF agency unless it is prescribed by the regulations for the purposes of subsection (1) (l) to be a GSF agency. (4) However, a GSF agency does not include— (a) the Legislature of New South Wales, or (b) a Minister (except to the extent to which Part 6 provides for a Minister to be treated as a GSF agency), or (c) the Workers Compensation Insurance Fund, or (d) the Workers Compensation Nominal Insurer. (5) Despite subsections (1) and (2), the regulations may declare that a specified entity (or specified part of an entity) is, or is not, to be treated as a GSF agency that is distinct from another specified GSF agency for the purposes of Part 6. 2.5 Separate GSF agency (1) Each of the following is a separate GSF agency— (a) the Audit Office, (b) the Independent Commission Against Corruption, (c) the Judicial Commission of New South Wales, (c1) the Law Enforcement Conduct Commission, (d) the New South Wales Electoral Commission, (e) the Ombudsman's Office, (f) any other entity (or an entity of a kind) prescribed by the regulations as a separate GSF agency. (2) Despite any other provision of this Act, a separate GSF agency (and the accountable authority for the agency and its government officers) are each not required to comply with a relevant Treasurer's requirement or Minister's information requirement if the accountable authority considers that the requirement is not consistent with the exercise of the statutory functions of the agency. (3) A relevant Treasurer's requirement is— (a) a provision of the Treasurer's directions that a separate GSF agency (or the accountable authority for the agency or its government officers) would be required to comply with but for this section, or (b) any other direction, request or other requirement given or made by the Treasurer under this Act that a separate GSF agency (or the accountable authority for the agency or its government officers) would be required to comply with but for this section. (4) A Minister's information requirement is any direction, request or other requirement given or made by a Minister under this Act for the provision of information about a separate GSF agency that the agency (or the accountable authority for the agency or its government officers) would be required to comply with but for this section. (5) The accountable authority for a separate GSF agency must ensure that a written document (a non-compliance reasons statement) stating the reasons for any non-compliance with a relevant Treasurer's requirement or Minister's information requirement is— (a) given to the Treasurer or other Minister who gave or made the requirement as soon as practicable after it is decided not to comply, and (b) included in the annual reporting information for the separate GSF agency for the annual reporting period during which the non-compliance occurred or reported in any other way prescribed by the regulations. (6) Without limiting subsection (5) (b), the regulations may make provision for or with respect to the tabling of non-compliance reasons statements in Parliament (including by providing for the application of section 9.12 to the tabling). 2.6 Responsible Minister for GSF agencies (1) The responsible Minister, in relation to a GSF agency (whether or not a reporting GSF agency), is— (a) for a NSW Health entity—the Minister administering the Health Services Act 1997, or (b) for a Public Service agency that is not a NSW Health entity—the Minister to whom the agency is responsible, or (c) for a statutory State owned corporation—the voting shareholders of the corporation under the State Owned Corporations Act 1989, or (d) for any other GSF agency—the Minister who administers the constituent Act for the agency. Note— Section 50C of the Constitution Act 1902 enables the Governor to make administrative arrangements orders that specify the Minister to whom a Public Service agency is responsible. Administrative arrangements orders can be accessed on the NSW legislation website at www.legislation.nsw.gov.au. (2) Despite subsection (1), the Premier may, by notice published in the Gazette, authorise a Minister or other person to exercise some or all of the functions of the responsible Minister for a GSF agency instead of that Minister. (3) A Minister or other person authorised to exercise the functions of the responsible Minister for a GSF agency is to be treated as being the responsible Minister for the agency for the purposes of this Act in relation to the functions that are authorised. (4) To avoid doubt, if the person authorised is not a Minister, the person has the same powers under this Act to delegate the Ministerial functions that the person is authorised to exercise as a Minister would have. 2.7 Accountable authorities for GSF agencies (1) Each GSF agency is to have an accountable authority for the purposes of this Act. (2) The accountable authority for a GSF agency is— (a) for the Audit Office—the Auditor-General, or (b) for the Independent Commission Against Corruption—the Chief Executive Officer of the Commission, or (c) for the Ombudsman's Office—the Ombudsman, or (d) for the NSW Police Force—the Commissioner of Police, or (e) for a NSW Health entity—the Secretary of the Ministry of Health, or (f) for the Judicial Commission of New South Wales—the Chief Executive of the Commission, or (g) for the Law Enforcement Conduct Commission—the Chief Executive Officer of the Commission, or (h) for the Independent Pricing and Regulatory Tribunal—the Chairperson of the Tribunal, or (h1) for the New South Wales Electoral Commission—the Electoral Commissioner, or (i) for any other agency not covered by the preceding paragraphs that is a Public Service agency— (i) if the agency is a Department—the Secretary of the Department, or (ii) if the agency is not a Department—the head of the agency, or (j) for any other agency not covered by the preceding paragraphs that is not a Public Service agency— (i) if the agency has a governing body—the governing body, or (ii) if the agency does not have a governing body—the head of the agency. (3) Despite subsection (2) (i) and (j), the regulations may, for the purpose of avoiding doubt, declare that specified persons or other entities are to be treated as being the accountable authorities for specified GSF agencies (or kinds of GSF agencies) covered by those paragraphs. 2.8 Treasurer and Auditor-General to be notified of new GSF agencies (1) The accountable authority for an entity that becomes a GSF agency must— (a) give written notice to the Treasurer of that fact within one month after the entity becomes a GSF agency, and (b) give written notice to the Auditor-General of that fact within one month after the entity becomes a GSF agency and ensure that appropriate steps are taken to have the GSF agency audited by the Auditor-General. (2) Subsection (1) (a) does not apply in relation to— (a) the establishment, abolition, change of name or transfer of a Public Service agency (or part of a Public Service agency) that results from an administrative arrangements order under section 50D of the Constitution Act 1902, or (b) the establishment, abolition, change of name or transfer of a GSF agency by a provision of an Act. Division 2.3 Government officers 2.9 Government officers (1) Each of the following is a government officer— (a) a person who is the head of a GSF agency, (b) a person employed in or by a GSF agency, (c) a person who is a statutory officer and not a Public Service employee under the Government Sector Employment Act 2013, but who is the head of, or exercises functions in relation to, a Public Service agency, (d) a person working for a GSF agency by way of secondment from another GSF agency, (e) any other person (or person of a kind) prescribed by the regulations as a government officer. Note— Section 59 of the Government Sector Employment Act 2013 provides that a reference in another Act to an officer or employee of a statutory body or statutory officer is to be read as including a reference— (a) to a Public Service employee who is employed to enable the statutory body or statutory officer to exercise functions, and (b) to any other person whose services the statutory body or statutory officer makes use of (whether by way of secondment or otherwise). (2) However, a government officer does not include any of the following— (a) the Governor, Lieutenant-Governor or Administrator of the State, (b) a Minister, a member of the Executive Council or a Parliamentary Secretary, (c) a member of the Legislative Council or the Legislative Assembly, (d) a judicial officer within the meaning of the Judicial Officers Act 1986 (including a registrar when performing judicial functions), (e) a person who is a member of the staff of the Judicial Commission of New South Wales employed under the Judicial Officers Act 1986, (f) an officer or employee of either House of Parliament or any officer or employee under the separate control of the President or Speaker, or under their joint control, (g) a person employed under the Members of Parliament Staff Act 2013, (h) a person who is a member of the governing body of a GSF agency but not employed in or by the agency or any other GSF agency, (i) a person exercising functions for or on behalf of a GSF agency as a volunteer, consultant or contractor (except a person of the kind and to the extent specified by the regulations), (j) a person employed by an entity that is not a GSF agency who is working for a GSF agency by way of secondment, (k) any other person (or person of a kind) prescribed by the regulations not to be a government officer. (3) A government officer is a government officer of a GSF agency if the officer— (a) has any of the relationships referred to in subsection (1) (a)–(d) with the agency, or (b) is an officer (or officer of a kind) prescribed by the regulations as a government officer of the agency. Division 2.4 Annual reporting periods 2.10 Annual reporting periods for GSF agencies (1) Subject to any determination of the Treasurer under this section, the annual reporting period for a GSF agency is— (a) the period of 12 months commencing on 1 July in any year, or (b) if a different period is specified as the agency's financial year by its constituent Act—that specified period. (2) The Treasurer may, by written notice given to the accountable authority for a GSF agency, determine a different annual reporting period for the GSF agency than that referred to in subsection (1) to facilitate— (a) reporting for the first annual reporting period for a new GSF agency, or (b) reporting for the final annual reporting period for a GSF agency or former GSF agency, or (c) synchronisation with the annual reporting periods of other GSF agencies for the purposes of consolidated reporting. (3) The determination may— (a) specify any of the following periods— (i) 12 months or less, (ii) more than 12 months (but not more than 18 months), or (b) specify a period for all provisions (or specified provisions) of this Act. (4) Before making a determination for the purposes of subsection (2), the Treasurer must consult both the Auditor-General and the responsible Minister for a GSF agency in accordance with section 3.5 about any proposed determination. 2.11 Annual reporting period for NSW Government The annual reporting period for the NSW Government is the period of 12 months commencing on 1 July in any year. Part 3 Roles and responsibilities Division 3.1 Treasurer 3.1 Giving of Treasurer's directions (1) The Treasurer may give written directions (called Treasurer's directions) for or with respect to each of the following— (a) the principles, practices, arrangements and procedures to be applied or followed by GSF agencies, government officers and accountable authorities for GSF agencies for the purposes of promoting compliance with the provisions of this Act and the regulations, (b) any matter that is, by or under this Act or any other Act, required or permitted to be included in the Treasurer's directions, (c) any matter of a kind prescribed by the regulations for which the Treasurer's directions are authorised to make provision. Note— Section 9.8 allows the Treasurer to delegate any functions concerning the giving of Treasurer's directions, but only to the accountable authority for the Treasury or certain other senior government officers of the Treasury. (2) A Treasurer's direction— (a) cannot be inconsistent with this Act, and (b) must be published on the NSW legislation website and may also be published on the Treasury's website or in any other way the Treasurer considers appropriate, and (c) takes effect on the day it is published on the NSW legislation website or any later day specified in the direction, and (d) may be amended, replaced or revoked by a further Treasurer's direction. (3) A Treasurer's direction may do any of following (or any combination of the following)— (a) apply generally or be limited in its application by reference to one or more specified circumstances, factors or exceptions, (b) authorise any matter or thing to be from time to time determined, applied or regulated by any specified person, group of persons or body, (c) apply, adopt or incorporate (whether with or without modification) any publication as in force at a particular time or as in force from time to time, (d) give exemptions from the direction (whether from all of the direction or specified provisions of the direction) or authorise specified entities to give those exemptions. (4) To avoid doubt, a Treasurer's direction concerning reporting requirements for a particular annual reporting period (whether for a GSF agency or for the NSW Government) may be given even if that period has already commenced or has ended. (5) Except to the extent required by this Act or the regulations, the Treasurer may (but need not) consult with responsible Ministers for GSF agencies or any other persons or entities that the Treasurer considers appropriate before giving Treasurer's directions or amending, replacing or revoking them. 3.2 Basic content for Treasurer's directions (1) A Treasurer's direction must include each of the following provisions— (a) a provision that gives the direction a name or citation, (b) a provision that indicates when the direction takes effect, (c) a provision that specifies the entities (or kinds of entities) to which the direction applies, (d) a provision that specifies the purposes or objects of the direction, (e) a provision that specifies an end date or review date for the direction. (2) It is sufficient compliance with subsection (1) (b)–(e) in respect of a Treasurer's direction that amends another Treasurer's direction if the provisions are included in the amendments. (3) A contravention of subsection (1) does not affect the validity of any Treasurer's direction. 3.3 Application of Treasurer's directions (1) Subject to subsection (2), the Treasurer's directions do not apply to any of the following— (a) a Minister (even if the Minister falls within a GSF agency of a kind to which the directions otherwise apply), (b) a university or any of its controlled entities, (c) any GSF agency, government officer or accountable authority for a GSF agency (or a GSF agency, government officer or accountable authority of a kind) prescribed by the regulations. (2) Subsection (1) does not prevent the application of Treasurer's directions to— (a) a Minister for the purposes of provisions of Part 6 that are applicable to Ministers, or (b) a university or any of its controlled entities for the purposes of provisions of Divisions 7.2 and 7.3 that are applicable to universities and their controlled entities. Note— Section 6.1 provides that, for purposes of Part 6, each Minister (except the Treasurer) is to be treated as both a GSF agency and the accountable authority for the agency. Similarly, sections 7.4 and 7.10 provide that, for the purposes of Divisions 7.2 and 7.3 respectively, a university and its controlled entitles are to be treated as GSF agencies. (3) To avoid doubt, the Treasurer's directions can apply to a Minister's delegate even though they do not apply to the Minister because of subsection (1) (a). (4) A provision of the Treasurer's directions may be limited in its application to a particular GSF agency, but only if the provision is included with the consent of the responsible Minister for the agency. (5) However, a provision of the Treasurer's directions cannot be limited in its application to a particular government officer or accountable authority for a GSF agency. (6) Subsections (4) and (5) do not prevent the giving of Treasurer's directions to kinds of GSF agencies, government officers or accountable authorities for GSF agencies unless the kind consists of a single agency, officer or authority. 3.4 Duty to comply with Treasurer's directions A person or other entity to whom a provision of the Treasurer's directions applies must comply with the provision. Note— Section 2.5 authorises a separate GSF agency not to comply with a requirement of the Treasurer's directions if the accountable authority for the agency considers the requirement not to be consistent with the agency's statutory functions. 3.5 Consultation about certain proposed regulations, directions and determinations (1) This section applies if a provision of this Act or the regulations (the consultation provision) requires the Treasurer to consult a specified entity in accordance with this section about a matter (a consultation matter) that is proposed to be included in the regulations or in directions or determinations of the Treasurer. (2) The Treasurer must consult each entity specified by the consultation provision as an entity that must be consulted about a consultation matter before recommending the making of regulations, or giving directions or making determinations, that include the matter. (3) A consultation with an entity happens for the purposes of this section if— (a) the entity is given a written statement setting out, or explaining the effect of, the consultation matter, and (b) the entity is given a reasonable opportunity to make submissions to the Treasurer concerning the consultation matter before its inclusion in regulations, directions or determinations. (4) A contravention of a consultation provision or this section does not affect the validity of any regulation, direction or determination. Division 3.2 Accountable authorities 3.6 Policies and procedures for financial management of GSF agencies (1) The accountable authority for a GSF agency is— (a) to develop, maintain and make available financial management policies and procedures, and (b) to establish, maintain and keep under review each of the following— (i) effective systems for risk management, internal control and assurance (including by means of internal audits) that are appropriate systems for the agency, (ii) arrangements for protecting the integrity of financial and performance information, (iii) arrangements for ensuring that there is compliance with this Act, and (c) to ensure that the agency complies with those policies and procedures. (2) The regulations and Treasurer's directions may make provision for or with respect to— (a) financial management policies and procedures for the purposes of subsection (1) (a), and (b) systems and arrangements for the purposes of subsection (1) (b). (3) This section does not prevent a GSF agency from developing, establishing or maintaining additional policies, procedures or systems to those required by or under this section provided that they are not inconsistent with those that are required. Division 3.3 Government officers 3.7 Values and associated principles to guide government officers (1) A government officer of a GSF agency should be guided by the following values and associated principles when exercising functions in connection with financial management (including under this Act)— Value Associated principles Accountability The government officer should take reasonable care so that the officer's use of government resources or related money is efficient, effective and prudent The government officer should— Integrity (a) place the public interest over private interest, and (b) should not use the officer's position (or information acquired in the exercise of the functions of that position) improperly for financial or personal gain The government officer should— Transparency (a) ensure that any real or perceived conflicts of interest are avoided or effectively managed, and (b) disclose to the appropriate entity, as soon as possible, any direct or indirect material conflict of interest of the officer that relates to the affairs of the GSF agency (2) Nothing in this section gives rise to, or can be taken into account in, any civil cause of action. Part 4 Budget, appropriations and Special Deposits Account Division 4.1 Budget 4.1 Budget Papers (1) The Budget Papers are the Budget Papers of the Government tabled in Parliament in connection with Bills for annual Appropriation Acts. (2) The Treasurer is responsible for the preparation and presentation of the Budget Papers. (3) Unless an annual Appropriation Act provides differently, the Budget Papers tabled in Parliament in connection with the Bill for the Act— (a) do not form part of the Act, and (b) do not affect the application of any amount appropriated by the Act. 4.2 Core content of Budget Papers (1) The Budget Papers are to be presented on a basis that covers the General Government Sector. (2) The budget aggregates relating to the General Government Sector are to be for a 6-year period comprising the annual reporting period for the NSW Government to which the Budget relates, the 2 prior years and the 3 forward years and include the following financial statements— (a) a statement of financial position for the General Government Sector, (b) an operating statement for the General Government Sector, (c) a cash flow statement for the General Government Sector. (3) The budget aggregates are to be— (a) prepared in a way that is consistent with the Australian Accounting Standards for the annual reporting period for the NSW Government to which the Budget relates for the General Government Sector, and (b) presented in a format that is consistent with the Australian Accounting Standards. (3A) Subsection (3)(a) does not apply in relation to the budget aggregates for the 2 prior years. (4) It is not necessary for the Budget Papers to be presented so as to include notes within the meaning of the Australian Accounting Standards. 4.3 Additional content of Budget Papers (1) The Budget Papers are also to include the following— (a) a Budget policy statement that includes the following— (i) the matters required to be included in the Budget Papers by section 8 of the Fiscal Responsibility Act 2012, (ii) 4-year forecasts or projections (being for the annual reporting period for the NSW Government to which the Budget relates and 3 forward years) of all major economic and financial variables, (b) revised estimates for the year before the annual reporting period for the NSW Government to which the Budget relates, and an explanation of any significant variations in major aggregates from the Budget estimates for that period, for the General Government Sector, (c) a statement of the expenditure, savings and revenue measures that may have a material impact on the forward estimates for the General Government Sector, (d) a statement of the risks that may have a material effect on the forward estimates for the General Government Sector, (e) a statement of the contingent assets and liabilities for the General Government Sector, (f) information in the form determined by the Treasurer about the performance and activities of GSF agencies. (2) The Budget Papers may include any other matters determined by the Treasurer. 4.4 When Budget is to be presented to Parliament (1) The Treasurer is to cause the Budget Papers for the annual reporting period for the NSW Government to which the Budget relates to be tabled in the Legislative Assembly before the end of the previous annual reporting period. (2) However, the Budget Papers may be tabled in the Legislative Assembly— (a) if the Legislative Assembly is not sitting in the last 2 months of the previous annual reporting period for the NSW Government—as soon as possible within the annual reporting period for the NSW Government to which the Budget relates, or (b) if there is a State election in the previous annual reporting period for the NSW Government—as soon as possible within the annual reporting period for the NSW Government to which the Budget relates (but not later than the end of September in that period). 4.5 Provision of budget information by GSF agencies (1) The accountable authority for a GSF agency must, in accordance with directions by the Treasurer, prepare information for use in Budget preparations concerning the agency and its controlled entities for the times and in the manner directed. (2) Any directions under this section may be contained in the Treasurer's directions or in a separate written document given to the GSF agency concerned. Division 4.2 Appropriations 4.6 Money to be paid out of Consolidated Fund or Special Deposits Account only if authorised (1) Money must not be paid out of the Consolidated Fund except under the authority of an Act. Note— See also Part 5 of the Constitution Act 1902, which requires certain kinds of government money to form one Consolidated Fund. (2) Money must not be paid out of an SDA account except for the purposes of the account and under the authority that may be applicable to the constitution of the account. (3) To avoid doubt— (a) money is not paid out of the Consolidated Fund merely because— (i) the money is deposited in a banking account of the State or a GSF agency if the deposited money continues to be held by, for or on behalf of the State, or (ii) the money is used to purchase securities if the securities continue to be held by, for or on behalf of the State (regardless of whether the value of those securities increases or decreases after their purchase), and (b) money is not paid out of an SDA account merely because— (i) the money is deposited in a banking account of the State or a GSF agency if the deposited money continues to be held for use for the purposes of that account, or (ii) the money is used to purchase securities if the securities continue to be held for use for the purposes of that account (regardless of whether the value of those securities increases or decreases after their purchase). (4) In this section— securities has the same meaning as in section 39 of the Constitution Act 1902. 4.7 Deemed appropriations of certain money received by GSF agencies (1) The lead Minister for a GSF agency is taken to have been given an appropriation out of the Consolidated Fund under the authority of this section, at the time the agency receives or recovers any deemed appropriation money, for an amount equivalent to the money that is received or recovered by the agency. (2) An appropriation under this section is taken to have been given— (a) if the receiving GSF agency is a special office—for the services of the receiving GSF agency, or (b) otherwise—for the services of the lead Department for the GSF agency. (3) Deemed appropriation money means— (a) government money that a GSF agency receives or recovers, including from the Commonwealth or another entity, of a kind prescribed by the regulations, that— (i) forms part of the Consolidated Fund, and (ii) is not appropriated under the authority of an Act, or (b) government money that a GSF agency receives or recovers, from another GSF agency, of a kind prescribed by the regulations, that— (i) forms part of the Consolidated Fund, and (ii) is appropriated under the authority of an Act to the lead Minister for the other GSF agency for— (A) if the other GSF agency is a special office—the services of the other GSF agency, or (B) otherwise—the services of the lead Department for the other GSF agency. (4) Without limiting subsections (3)(a) and (b) and (6)(a), the regulations may— (a) prescribe deemed appropriation money to include government money that was received or recovered before the commencement of this section, and (b) specify when (and the purposes for which) an appropriation is taken to have been given for the purposes of this section in respect of deemed appropriation money. (5) However, the regulations cannot prescribe deemed appropriation money to include— (a) any money from taxes or fines that a GSF agency receives or recovers for the benefit of the State generally (as opposed to the benefit of that particular agency), or (b) any money payable as a royalty for the mining, extraction or capture of a natural resource, or (c) any money from a general purpose Commonwealth grant received by a GSF agency. (6) An appropriation under this section is— (a) subject to any terms or conditions that may be prescribed by the regulations, and (b) taken to be for the annual reporting period for the NSW Government in which it is taken to be given. (7) At the time a receiving GSF agency receives or recovers deemed appropriation money referred to in subsection (3)(b), the appropriation to the lead Minister referred to in subsection (3)(b)(ii) is taken to have been reduced by an equivalent sum to the sum received or recovered by the receiving agency. (8) In this section— lead Department, for a GSF agency, means— (a) if the GSF agency is a Public Service executive agency within the meaning of the Government Sector Employment Act 2013—the Department specified as being the related Department for the GSF agency under that Act, Schedule 1, Part 2, or (b) if paragraph (a) does not apply and there is only 1 responsible Minister for the GSF agency—the Department responsible to the responsible Minister for the GSF agency, or (c) if paragraph (a) and (b) do not apply and there is more than 1 responsible Minister for the GSF agency and the same single Department is responsible to the responsible Ministers—the Department responsible to the responsible Ministers, or (d) if paragraphs (a)–(c) do not apply—the Department specified for the GSF agency in a written determination made by the Treasurer and published in the Gazette. lead Minister, for a GSF agency, means— (a) if amounts are appropriated, under the relevant annual Appropriation Act, to a Minister for the services of the GSF agency—the Minister to whom the amounts are appropriated under the relevant annual Appropriation Act, or (b) otherwise—the Minister to whom amounts are appropriated, under the relevant annual Appropriation Act, for the services of the GSF agency's lead Department. receiving GSF agency means a GSF agency that receives or recovers deemed appropriation money. relevant annual Appropriation Act means the annual Appropriation Act under which appropriations are made for the reporting period for a GSF agency in which the GSF agency receives deemed appropriation money. special office means a GSF agency that is a special office in relation to which an appropriation is made under the relevant annual Appropriation Act. 4.8 Unused appropriations for annual reporting period (1) Every unused appropriation for an annual reporting period for the NSW Government lapses and ceases to have effect for any purpose at the end of that period, except as provided by this section. (2) An unused appropriation for an annual reporting period for the NSW Government is that part of an appropriation out of the Consolidated Fund (including under section 4.7) that has not been applied by the end of the period. (3) An unused appropriation under section 4.7 for an annual reporting period for the NSW Government does not lapse at the end of the period unless the regulations provide differently. 4.9 Appropriations affected by transfer of functions between Ministers or GSF agencies (1) This section applies to an appropriation to a Minister made under an annual Appropriation Act for an annual reporting period for the NSW Government for a service, function or program if responsibility for the service, function or program is, during that period, transferred— (a) from one Minister to another Minister, or (b) from one GSF agency to another GSF agency. (1A) The appropriation does not lapse merely because the responsibility for the service, function or program is transferred from one Minister to another Minister, or from one GSF agency to another GSF agency, during that period. (2) The appropriation may be applied by a Minister, in accordance with any determination that may be made by the Treasurer in the same annual reporting period for the NSW Government, for or towards the transferred service, function or program. (3) A determination may extend to the application of the appropriation before the determination is made and operates to validate that application. (4) The Treasurer must cause details of any appropriation to which a determination relates to be included in the Budget Papers for the next annual reporting year for the NSW Government. 4.9A Deemed appropriations affected by transfer of functions between GSF agencies (1) This section applies to a deemed appropriation taken to have been given to the lead Minister for a GSF agency if responsibility for a service, function or program is transferred— (a) from the Minister to another Minister, or (b) from the GSF agency to another GSF agency. (2) The deemed appropriation may be applied by a Minister, in accordance with any determination that may be made by the Treasurer, for or towards the transferred service, function or program. (3) A determination may extend to the application of the deemed appropriation before the determination is made and operates to validate that application. (4) The Treasurer must cause details of any deemed appropriation to which a determination relates to be included in the Budget Papers for the next annual reporting period for the NSW Government after the annual reporting year for the NSW Government in which the determination was made. (5) In this section— deemed appropriation means an appropriation taken to have been given to a lead Minister under section 4.7. lead Minister, for a GSF agency, has the same meaning as in section 4.7. 4.10 Payments authorised on lapse of appropriation (1) This section applies if an annual Appropriation Act for an annual reporting period for the NSW Government is not enacted before the period commences. (2) The Treasurer may, subject to this section, authorise the payment of sums out of the Consolidated Fund to meet the requirements of the annual reporting period. (3) The Treasurer's authorisation under this section ends on the earliest of the following occurring— (a) the first 3 months of the annual reporting period ending, (b) the enactment of an annual Appropriation Act for the annual reporting period. (4) Payments that are authorised to be made under this section must not— (a) exceed, in total, an amount equivalent to one quarter of the amount appropriated under the annual Appropriation Act for the previous annual reporting period (adjusted for changes in consumer prices as provided by the regulations), and (b) if estimates of expenditure for the current annual reporting period have been presented to Parliament and the rate of expenditure in those estimates is lower than the rate of expenditure authorised in the annual Appropriation Act for the previous reporting period—exceed those lower rates. 4.11 Variations of annual appropriations for Commonwealth grants (1) This section applies if the Commonwealth does any of the following in an annual reporting period for the NSW Government— (a) provides for the making of a specific purpose payment not included in the Budget Papers of the State for that period, (b) provides for an increase in the amount of a specific purpose payment in excess of the amount included in the Budget Papers of the State for that period, (c) does not provide the whole of the amount of a specific purpose payment as included in the Budget Papers of the State for that period. (2) If the Treasurer is satisfied that a matter referred to in subsection (1) has occur