Government Sector Finance Act 2018 (GSF Act)

• Video - Government Sector Finance Act – Who it applies to - November 2018
• Video - GSF Act - Regulations and Treasurer's Directions
• Fact Sheet - Accountable Authority - October 2024 (PDF 115.88KB)
• Fact Sheet - Government Officer: Roles and Responsibilities - October 2024 (PDF 94.43KB)
• Fact Sheet - Summary of key functions and obligations of Government Officers - 2018
• Summary - Minister Key Functions and Obligations - June 2019 (PDF 268.17KB)
• Fact Sheet - Minister: Roles and responsibilities - May 2025 (PDF 98.88KB)
• Fact Sheet - Prescribing an entity for the purposes of the GSF Act - May 2025 (PDF 89.86KB)
• Fact Sheet - Government Sector Financial and Audit Legislation basics - May 2025 (PDF 83.73KB)
• Fact Sheet - Key provisions of the GSF Act - May 2025 (PDF 95.64KB)
• Fact Sheet - Consultation requirements - August 2024 (PDF 95.02KB)

• Fact Sheet – Deemed Appropriations – October 2024 (PDF 109.93KB)
• Video - GSF Act: Special Deposits Account (SDA) - July 2019
• Fact Sheet - Special Deposits Account (SDA) - April 2025 (PDF 112.21KB)

• Fact Sheet - Statutory Act of Grace payments - May 2025 (PDF 75.72KB)
• Fact Sheet - Expenditure – May 2025 (PDF 84.36KB)

• Fact Sheet - Financial Arrangements under Part 6 - May 2025 (PDF 117.12KB)

• Example - Statement by the Accountable Authority (PDF 73.61KB)

• Fact Sheet - Information Sharing and Performance - May 2025 (PDF 90.89KB)
• Slides - Information Sharing Explained - December 2021 (PDF 205.6KB)

• Video - GSF Act: Delegations and expenditure - December 2018
• Fact Sheet - Delegations under the GSF Act - March 2025 (PDF 215.71KB)
• Pro forma delegation instrument - For Ministers (DOCX 46.02KB)
• Pro forma subdelegation instrument - For Ministers (DOCX 41.03KB)
• Pro forma delegation instrument - For Accountable Authorities (DOCX 39.82KB)
• Pro forma subdelegation instrument - For Accountable Authorities (DOCX 33.55KB)
• Template for nominating responsible manager for SDA (DOCX 24.51KB)
• Guidance: delegations under the Government Sector Finance Act 2018 (PDF 67.75KB)

Can you provide example wording for the certification statement?

An GSF agency's financial statements must include a certification statement by that agency's accountable authority (Section 7.6(4) of the GSF Act). See example wording Statement of accountable authority on financial statements (PDF 73.61KB).

When are GSF agencies required to submit financial information to Treasury?

All accountable authorities for agencies must carry out the procedures in relation to each financial year and submit the financial information as set out in the following TPGs and TDs. The information must agree with the financial statements submitted for audit.

Refer to:

• TPG25-01: Agency Direction for the 2024-25 Mandatory Early Close; and
• TPG on Agency Direction for Mandatory Annual Returns to Treasury

When are GSF agencies required to submit their annual financial statements for audit?

The deadline for GSF agencies to submit their financial statements to the Auditor-General is dependent on whether they are required to provide a Mandatory Annual Return to Treasury or not.

Refer to Treasury’s document library for the current reporting year’s TPG on Agency Direction for Mandatory Annual Returns to Treasury.

Can GSF agencies submit their financial statements to the Auditor-General without the signed certification statement by the accountable authority?

GSF agencies can initially submit their financial statements to the Auditor-General without the signed certification statement, but it must be provided in order for the preparation of the Independent Auditor’s Report. This is as the certification statement by the accountable authority is part of the annual GSF financial statements subject to audit. 

GSF agencies and the Audit Office are to agree during the audit on the final submission date.

Can GSF agencies apply for an extension of time to submit their financial statements?

Treasury expects that accountable authorities will do everything within their power to meet the deadlines for their agencies.

In circumstances where agencies may not be able to meet these deadlines, GSF agencies can apply for an extension.

We ask that GSF agency CFOs make extension requests in written format and ask that the request:

• state the reasons why cannot comply with the deadline - keep the reasons requests brief - bullet points are ideal,
• identify the name and number of the relevant TD/TPG that creates the particular deadline (and the deadline's requirement number if it has one),
• indicate the length of extension required,
• confirm that the agency’s Audit Office contact would not object to Treasury granting the request,
• include the name, telephone number and email address of the Audit Office person who provided the above confirmation, and
• include the name, telephone number and email address of a person in your organisation that Treasury can contact if we need more information.

When making an extension request please:

• address requests to the Executive Director, Financial Stewardship and Public Reporting of NSW Treasury, and
• email those requests to legislation@treasury.nsw.gov.au.

Refer to Treasury’s document library for the current reporting year’s TPG on Agency Direction for Mandatory Annual Returns to Treasury.

When can GSF agencies expect to receive the audit report of their financial statements?

GSF agencies can discuss the timing of receiving the audit report with the Audit Office.

Who pays the Auditor-General’s audit costs?

The GSF agency must reimburse the Auditor-General for the cost of the GSF agency’s financial statements audit. The Audit Office provides information on the cost of each audit in its annual engagement letters prior to audit commencement. For further information about the Auditor-General’s costs, please visit the Audit Office website.

When must a Minister table a GSF agency’s financial statements in Parliament?

Where the accountable authority for a GSF agencies is required to prepare annual reporting information under the GSF Act, the annual reporting information for those agencies must include financial statements and the audit report of those statements.

The accountable authority for a GSF agency that is not required to prepare annual reporting information under the GSF Act, must submit that agency’s financial statements to its responsible Minister. The responsible Minister must table that report in Parliament as soon as practicable, but no later than five months or any other period prescribed by the regulations after the Auditor-General provides his audit report on those financial statements (section 7.6(5)(b) of the GSF Act).

Can the Treasurer access a GSF agency’s accounts and records?

Yes. The Treasurer can access a GSF agency’s accounts and records.

All GSF agencies must keep accounts and records that properly record and explain the agency’s transactions, cash flows, financial position and financial performance (section 7.5(1) of the GSF Act). The Treasurer and the responsible Minister have full and free access to GSF agency records and accounts (section 7.5(2) of the GSF Act). 

Which agencies are excluded from GSF Act financial reporting requirements?

Certain kinds of agencies are excluded from the GSF Act reporting requirements, as specified in Division 2 to the GSF Regulation 2024 (GSF Regulation). An excluded agency is an agency of a kind prescribed not to be a reporting GSF agency. Kinds of agencies are:

• small agencies
• Crown land managers
• common trusts
• special purpose staff agencies
• retained State interests.

Agencies must self-assess each year to determine whether they remain excluded from reporting requirements. Further information refer to Annual Reporting. Where an agency is uncertain, contact Treasury at legislation@treasury.nsw.gov.au .

Are agencies required to confirm with Treasury they are excluded from reporting?

Treasury during the year collects information from Portfolio Departments and the sector on GSF agencies including preparation of financial reporting. Agencies are asked to notify Treasury at legislation@treasury.nsw.gov.au if there is a change in their reporting status.

If my agency is not excluded from reporting, can I seek an exemption from the Treasurer or Treasury?

No. The GSF Act does not empower the Treasurer or Treasury to exempt a particular agency from the GSF Act financial reporting requirements.

Can an excluded agency voluntarily prepare its financial statements?

Yes. GSF agencies can still prepare financial statements even if they are not required to do so under section 7.6 of the GSF Act.

Some GSF agencies may fall in and out of a ‘kind’ excluded requirements specified in the Government Sector Finance Regulation 2024 (Division 2) from year to year. Those agencies may find it easier to prepare financial statements each year as the Audit Office still needs to perform audit procedures and obtain assurance on the opening balances when these amounts have not been audited in the prior year.

Can the Auditor-General inspect and examine the accounts and records of an excluded agency?

Yes. The Auditor-General can inspect and examine the accounts and records of any agency even if that agency is excluded from financial reporting (section 35(2) and (3) of the Government Sector Audit Act 1983 (GSA Act)).

The Audit Office is entitled to full and free access to the books, records or other documents of or relating to any entity, fund or account or government resources or related money for the purposes of any inspection, examination, audit or audit-related services that the Auditor-General is authorised or required to perform by or under the GSA Act or any other law (section 36(1) of the GSA Act).

By what date must the accountable authority for a GSF agency submit that GSF agency’s annual reporting information to its responsible Minister?

Within four months from the end of the GSF agency’s annual reporting period. TD23-11 Annual reporting requirements states that a GSF agency’s accountable authority must submit that GSF agency’s annual reporting information to its responsible Minister.

Can a GSF agency’s accountable authority request that Treasury extend the four-month deadline for submission of a GSF agency’s annual reporting information to its responsible Minister?

Yes, provided that that the accountable authority makes that request within three months from the end of the reporting period as required by TD23-11 Annual reporting requirements. However, as the annual reporting information must be given to the responsible Minister so as to enable it to be tabled in Parliament, generally only a one-month extension is granted.

The exception to an extension is where the Minister has agreed or directed the accountable authority that the annual reporting information is to be given by within a specified period.

By what date must the responsible Minister for an agency cause the tabling of that agency’s annual reporting information?

Within five months from the end of the GSF agency’s annual reporting period. Section 7.13 of the GSF Act requires the responsible Minister for a GSF agency to cause tabling of the annual reporting information as soon as practicable, but within five months or any other period prescribed by regulation. Currently no other period is prescribed by regulation.

I’ve discovered I have an account within the SDA I do not need – what should I do now?

A statutory Special Deposit Account (SDA) account exists for the purpose(s) specified in the legislation which establishes the account. If that purpose has been fulfilled, or the SDA account is otherwise no longer needed, then the SDA account should be dissolved.

To dissolve an SDA account requires an amendment to the legislation which establishes it. Any monies remaining in the SDA account would be paid into the Consolidated Fund, unless the amending legislation provides otherwise.

If you wish to dissolve an SDA account, or you require further information, please contact your Treasury Relationship Lead and your legal advisors. See also the Special Deposits Account fact sheet.

Do I need a separate bank account for my account within the SDA?

No. An account within the SDA is akin to a ledger account. It is not essential to have a separate bank account for an account within the SDA. However, the responsible manager for the account must maintain accounting records that are sufficient to prepare financial reports concerning the account (section 7.8 of the GSF Act). See also the Special Deposits Account fact sheet.

Does the GSF Act set delegation thresholds?

No. Thresholds are set by the delegator in the instrument of delegation.

What is an excluded function?

An excluded function is a function which may not be delegated or subdelegated by a Minister, GSF agency that is a person, or an accountable authority (sections 9.8(7), 9.9(7), 9.10(5), 9.11(7) of the GSF Act). See the Delegations fact sheet for more information.

How does expenditure authorisation need to take place under the GSF Act?

The accountable authority, through the implementation of policies and procedures, and government officers must ensure that expenditure of money is in a way that is authorised.

For the expenditure to be authorised it must be done (section 5.5(3) of the GSF Act):

• in accordance with a delegation or subdelegation from a person with power regarding the expenditure of money, or
• under the authority of the GSF Act or any other law.

In relation to expenditure of money where authorisation is by delegation or subdelegation, the delegation (including thresholds) is set by the delegator. You should refer to your GSF agency’s delegations manual and policies and procedures for who may authorise expenditure and how expenditure should be authorised. For further information refer to the Expenditure and Delegations fact sheets..

How does expenditure authorisation apply to shared service providers?

It is common for GSF agencies to enter into shared service arrangements with providers that require the provider to make payments to a third party (e.g. agency employees) on behalf of the agency. These types of arrangements generally incorporate two points of expenditure of monies (see figure below), both of which are required to be authorised pursuant to the GSF Act.

That is, the accountable authority for the GSF agency (or a government officer of a GSF agency) who enters into the shared service arrangement (see figure 1 point 1), is responsible for ensuring any expenditure of monies under that arrangement (see figure 1 point 2) is authorised.

For example, the authorisation for any expenditure under the arrangement may be included in a delegation or subdelegation instrument from a Minister or Secretary (holding an appropriation under an Annual Appropriation Act) to the relevant government officer.

The above information is provided as general guidance only. If you have any further queries, please contact your agency’s legal team in the first instance or the Financial Management Legislation team in NSW Treasury.

Can an accountable authority, or their subdelegate, enter into multi-year contracts without breaching their appropriation?

Generally, the response to this question will depend on the terms of the contract and the circumstances of each case. The accountable authority or their delegate must have a financial delegation for the total amount payable over the term of the contract, authority to enter into the contract, and the appropriation limit must not have otherwise been reached by expenditure in the relevant financial year.

The below should be followed to ensure that expenditure under a contract is authorised:

• the accountable authority of a GSF agency to ensure that expenditure of money for a GSF agency is in a way that is authorised (section 5.5(1) of the GSF Act).
• a government officer must ensure that the officer’s expenditure of money for the State or a GSF agency is done in a way that is authorised (section 5.5(2) of the GSF Act).
• an accountable authority is also a government officer and would, therefore, be subject to this obligation in section 5.5(2).

The GSF Act specifically excludes volunteers, consultants and contractors as government officers. How can volunteers, consultants and contractors become government officers?

If required, a GSF agency may prescribe volunteers, consultants and contractors as government officers in the GSF Regulation under section 2.9(1)(e) of the GSF Act.

Contact your Treasury Relationship Lead for more information regarding prescribing entities as government officers.

What is the process to have an entity prescribed as a GSF agency or person prescribed as a government officer in the regulation?

If a GSF agency wishes to have entities or persons prescribed as a GSF agency or government officer (respectively) in the GSF Regulation, they should follow these steps:

1. Refer to the Key Concepts in Part 2 of the GSF Act
2. Refer to the GSF Act 2018 Fact Sheet – GSF Agencies  

If you think the guidelines apply to your circumstance, or you have further questions, you can email legislation@treasury.nsw.gov.au.

How are serious breaches dealt with under the GSF Act?

The GSF Act provides a clear delineation between criminal offences under criminal law, and civil offences. Under Division 9.4 of the GSF Act, serious breaches will be dealt with through civil recovery arrangements instead of being treated as criminal offences.

The GSF Act does not contain any criminal offence provisions, but breaches will instead rely on existing provisions in the Crimes Act 1900 and other applicable legislation. For example, theft of government resources, or fraud resulting in a loss of government resources, will be dealt with under existing and well-established offences in statute and at common law. Breaches may also be dealt with by way of employment sanctions, including those available under the Government Sector Employment Act 2013 or through employment contracts.

What about debt recovery or write-off of debts?

Currently, aside from section 9.18 of the GSF Act (which deals specifically with recovery and write-off of debts in circumstances due to misconduct or unauthorised gifting), there are no specific requirements on debt write-off under the GSF Act or any Treasurer’s Direction issued on that subject. TD-450 in the Gold Book has been repealed and is no longer enforced.

Accountable authorities are to develop, establish and maintain financial management policies and procedures for effective risk management, protecting the integrity of financial and performance information, and for compliance with the requirements of the GSF Act (section 3.6 of the GSF Act).

If a GSF agency decides it is appropriate to have a policy or procedure for its agency on authorisation for debt recovery or write-off, it can develop and maintain its own policy, provided it is not inconsistent with the requirements of the GSF Act.

Can amounts paid under the authority of an annual appropriations be paid into another agency’s working account?

A GSF agency is precluded from paying money into its own working account where that money was appropriated for the services of that GSF agency (section 4.17(2)(a) of the GSF Act).  This section also prevents delegates (in GSF agencies) who have authority to expend money from the appropriation provided to that agency under an annual Appropriation Act from withdrawing that money from the Consolidated Fund and paying it into the working account.

However, section 4.17(2)(a) does not preclude a GSF agency (Agency A) from being paid money into its working account by another GSF agency (Agency B) if the money is of the kinds specified in clause 35(4) of the GSF Regulation. This is the case even where the money Agency B paid to Agency A came from money provided to Agency B from an appropriation under an annual Appropriation Act.

In summary, if there are two different GSF agencies and the money falls into the specific categories in clause 35(4) of the GSF Regulation, one GSF agency may pay the money into a working account of another GSF agency (subject to the working account’s instrument).