Conflicts of Interest Policy

Policy coverage

All persons undertaking work for or engaged by the Department in either a paid or unpaid capacity (employees) must comply with this policy.

Employees includes:

• all Departmental employees (ongoing, temporary, and casual and those on secondment to the Department), contractors and agency employees engaged to perform work for, or on behalf of, the Department.
• work experience students and volunteers.
• consultants where their engagement requires adherence to the Code of Conduct.

Key requirements

Identify a Conflict of Interest:

A conflict of interest exists when a reasonable person might perceive that your personal interests could be favoured or have influence over your public duties. When identifying a conflict of interest, you should consider the following common categories of conflicts.

• Actual – a conflict that currently exists between your public duties and your personal interests.
  • E.g. A business in which you have an ownership stake, was successful in procuring a contract with DCITHS
• Potential  – no conflict currently exists, but circumstances do exist where a conflict could arise in the future.
  • E.g. An external organisation in which you hold a leadership role is considering applying for a DCITHS grant.
• Perceived  – where a reasonable person might perceive or believe that a conflict exists.
  • E.g. There is no overlap in the work you perform for DCITHS and at your secondary employer, however both roles are in the same industry or involve the same stakeholders. 

Personal interests (non-pecuniary interests)

As a rule, the personal interests of you, your family members and close connections are your personal interests.

People who are more than acquaintances.

Any relationship with a person who is more than an acquaintance, could also be a personal interest. This typically includes spouses, relatives (including relatives by marriage), friends, intimate partners, close colleagues, mentors, and social connections. It can also include people with whom you formerly had a close relationship, for example, a previous spouse, ex-colleague, or an old friend. Feelings of enmity or hatred towards a person may also constitute a personal interest.

Organisations, clubs and political parties, and people connected to them.

A personal interest may arise from a connection with organisations or clubs that may be professional, political, sporting, recreational, community, arts, social and so forth. Hobbies about which you are passionate could also be classed as a personal interest.

Connections to people and entities who have given benefits or favours.

Officials may have a personal interest if they could feel indebted or obligated to anyone who has provided gifts, benefits, hospitality, or favours. It is not necessarily the gift or benefit itself that causes the conflict of interest, but the potential relationship and sense of obligation or expectation that could arise.

Financial interests (pecuniary interests)

Financial interests can be direct or indirect, potential, contingent or realised, short or long term, and can stem from both gains and losses. Money does not have to change hands for an interest to be pecuniary. The financial interests of your immediate family members or any other member of your family economic unit are normally deemed to be your interests. Examples of financial interests include:

• sources of income, including secondary employment
• financial trusts
• ownership or lease of land, buildings, and property
• shares or investments in companies, partnerships, or other entities
• beneficial interest in a trust or deceased estate
• loans or debts
• an option to buy or sell an asset or any other anticipated future financial benefit

Examples of interests that may be a conflict

You should assess your personal and financial interests and whether they conflict, have the potential to conflict, or may be perceived to be in conflict with your official duties. Some situations that could be considered a conflict are:

• participation in, memberships of or shareholdings in certain incorporated associations, unincorporated associations, Pty Limited companies, company limited by guarantee, industry, and manufacturing associations.
• membership of organisations or boards whose interests may conflict with those of the Department such as entities that seek grants or normally lobby government on issues managed by the Department.
• approval of transactions which provide a personal financial benefit to you (for example, payroll, overtime, leave and expense reimbursement matters).
• being a member of a trust, partnership, board, or committee.
• historical dealings as a former employee, shareholder, contractor, or partner of any service providers that you may seek to engage to undertake work for the Department.
• a relationship that goes beyond a professional working relationship with someone that the Department is dealing with.
• an intimate relationship with another Department employee, and/or Ministerial staff member, or a Minister or member of Parliament, or member of a Board or Committee associated with the Department.
• party-political activities or political comments you might make that could place the Department’s reputation as an apolitical institution at risk.
• seeking discounts or favourable terms from suppliers and service providers of the Department for private business purchases.

Managing Conflicts of Interest

Conflicts of interest can occur, but all employees should avoid placing themselves in conflicting situations where it is practical to do so. The interests of the Department and the public interest must always be prioritised ahead of an individual’s interests. This can be achieved by:

• completing annually the Declaration of Interests and Senior Executive Private Interests Form on  the DCITHS Compliance Forms Portal to disclose all actual, potential and perceived conflicts of interest. This should also be done whenever your circumstances change, with regards to an existing conflict of interest.
• escalating, if required, to your manager, your disclosure to seek guidance from subject matter experts, including from the Ethics & Integrity team.
• engaging with your manager to implement and document an appropriate conflicts of interest management plan.
• not allowing your private interests to affect or influence your public duties.
• always protecting the Department’s and your own reputation by declaring and implementing a plan that appropriately removes or mitigates the conflicts of interest.
• report situations where a colleague or workplace manager attempts to influence a decision where there is an actual, potential or perceived conflict.

Employees do not always need to give up an external activity or opportunity simply because a conflict of interest is identified. In consultation with your manager, some conflicts can be managed by implementing a management plan. Some conflict of interest management options include:

• restrict your involvement in, or access to, certain assignments, tasks, or duties that could conflict with a private interest.
• prohibit commercial dealings with suppliers and other stakeholders that are not on a normal “arm’s length basis.”
• remove you from circumstances and or situations where your personal and professional relationships cannot be separated and/or managed.
• set out a process by which your manager, colleagues or an independent third party could provide additional supervision or oversight on certain decisions or transactions.
• relinquish or change your private interest that presents a conflict outside of the Department.
• inform key stakeholders of the conflict and management plan.

If you are a manager, and one of your employees has disclosed a conflict of interest, you must:

• verify the accuracy and completeness of the disclosure.
• discuss the conflict with the employee and decide how it will be managed (the management plan) and document the management plan in the Declaration of Interests and Senior Executive Private Interests Form.
• monitor the situation to ensure compliance with the agreed management plan.

In addition to general declarations, all employees must comply with the requirements of the Department to disclose conflicts of interest that may arise during procurement, recruitment, and project management. If you are unsure of the declaration process during these activities, you can seek advice from Ethics & Integrity.

It is expected all employees will act with caution by making a disclosure and declaring it if they are unsure about whether there is a conflict of interest.

Managing privacy

Conflicts of interest can involve the disclosure of information that may be private in nature, such as details about personal finances and relationships. While you must disclose this information, personal information will typically only be shared with relevant Department employees where necessary or required. 

Secondary employment or business

Secondary employment refers to any additional paid employment that an individual is engaged in outside of their primary role at the Department. This includes, but is not limited to:

• any ongoing, casual, temporary, part time or full-time employment with another organisation.
• all self-employment or sole trader activity.
• all paid or unpaid independent contracting or consulting.
• operating or being involved in a paid capacity in a business
• holding any office or engaging in any employment for which an individual is entitled to be paid, but where they choose not to accept payment or accept only an honorarium or allowance for their services.

When seeking secondary employment employees are to consider:

• any conflicts that may arise from the type of secondary employment. It is common for a perceived conflict of interest to be present even if there is no overlap between the employee’s work at DCITHS and their secondary employment. Any form of conflict identified is to be declared in accordance with this policy.
• safety issues are also a relevant consideration, including the type and hours of work that may impact your primary role with the Department.

Employees who work full time hours are required to seek approval for any paid secondary employment by submitting the ‘Secondary Employment Form’ located under the forms tile in the DCITHS Compliance Forms Portal.

Many secondary employment arrangements can be managed with an agreed management plan between the employee and their manager. In circumstances where conflicts or safety concerns are assessed as high risk or unable to be appropriately mitigated or managed, secondary employment maybe rejected for approval.

Part time and casual employees are not permitted to undertake secondary employment during hours when they should be undertaking work for the Department and must seek approval if their secondary employment may adversely affect their work at the Department or there is a potential conflict of interest. Approval can be obtained by submitting the ‘Secondary Employment Form’ located under the forms tile in myCareer.

Unpaid work outside of work hours does not require approval unless the involvement is likely to affect the performance of your public duties within the Department, or if there is an actual, potential or perceived conflict of interest.

Where approval for secondary employment is granted, approval is only valid for 12 months from the date of approval. For continuation of the secondary employment, you are required to resubmit an ‘Secondary Employment Form’ each approval date anniversary.

Prior to approving any secondary employment, managers must refer to the HR Delegations Schedule and review their authority for approval.

You must not allow yourself or your work to be influenced by plans for, or offers of, employment outside the department.

Senior Executive Private Interest Declarations

All Senior Executives (including employees acting in those roles) are also required to make a written declaration of private financial, business, personal and other interests or relationships that have the potential to influence, or could be perceived to influence, decisions made, or advice given by the Senior Executive. They must complete the Declaration of Interests and Senior Executive Private Interests Form located in the DCITHS Compliance Forms Portal.

Where a Senior Executive has no such private interests to declare, they must declare a ‘nil’ return.

After a Senior Executive makes an initial declaration, a fresh declaration must be made in the DCITHS Compliance Forms Portal:

• as soon as practicable, following any relevant change in their private interests,
• as soon as practicable, following their movement to a new role or responsibility, or
• at least annually.

Breaches

Failure to disclose a conflict of interest or conduct which favours a private interest is in breach of this policy and you may be subject to disciplinary action.

Breaches that are suspected to amount to corrupt conduct will be reported to the Independent Commission Against Corruption. Breaches that amount to criminal conduct will be reported to the police. You must report any suspected breaches of this policy in accordance with the Department’s Public Interest Disclosure Policy.

Further information about this policy and management of conflicts of interest can be obtained by:

• contacting Ethics & Integrity.
• visiting the website of the NSW Independent Commission Against Corruption or the website of the Public Service Commission.

Variation

The Department may amend this policy from time to time as appropriate.