Managing government investments for better commercial outcomes
The NSW Government has invested heavily in a range of government businesses. NSW Treasury works to manage these investments efficiently and effectively.
The Commercial Policy Framework is a set of Treasury policies that apply to government businesses. These policies reflect the commercial environment these businesses operate in and aim to encourage the same disciplines and incentives that drive efficient practices in the private sector.
Treasury policies under the Commercial Policy Framework
We use several legislative requirements to develop policies and guidelines for government businesses. The main law is the Government Sector Finance Act 2018.
State Owned Corporations (SOCs) must also meet specific requirements under the State Owned Corporations Act 1989.
Each policy in the Commercial Policy Framework explains which government businesses it applies to.
Commercial Policy Framework Treasury Policy Papers for Government Businesses
Policy | Title | Description |
|---|---|---|
| TPG22-02 (PDF 664.76KB) | Ownership and Portfolio Expectation Policy | This policy outlines the ownership and portfolio expectations that the Government holds for State Owned Corporations (SOCs), and the mechanism for issuing a Statement of Expectations (SoE). |
| TPG21-10 (PDF 599.86KB) | Capital Structure and Financial Distribution Policy for Government Businesses | Outlines requirements for government businesses to maintain a capital structure that meets the Government’s expectations while making appropriate dividends and capital repayments. |
| TPG24-27 (PDF 729.68KB) | Performance Reporting and Monitoring Policy for Government Businesses | Sets out the performance reporting and monitoring framework that applies for government businesses, including guidance on Statement of Intents, Business Plans and quarterly reporting requirements. |
| TPG22-20 (PDF 631.97KB) | Government Guarantee Fee Policy for Government Businesses | This policy seeks to ensure competitive neutrality for government businesses with respect to their cost of debt. It outlines the application, calculation methodology and administration of government guarantee fees on TCorp borrowings. |
| TPP17-10 (PDF 645.68KB) | Guidelines for Governing Boards of Government Businesses | Outlines the Government’s expectations for standards of corporate governance that should be adopted by all governing boards. |
| TPP18-05 (PDF 611.67KB) | Major Projects Policy for Government Businesses | Sets out the notification, assurance, approval and reporting requirements for government businesses planning to undertake a major project. |
| TPG23-19 (PDF 668.19KB) | Guidelines for Community Service Obligations | Outlines the process for establishing, funding, reviewing and monitoring Community Service Obligations (CSOs). |
| TPP21-05 (PDF 330.53KB) | Tax Equivalent Regime | Purpose is to ensure those government businesses that operate in competitive markets are subject to income tax equivalent payments, in accordance with the principle of competitive neutrality. |
| TPP17-11 (PDF 558.82KB) | CEO Appointment Guidelines for Government Businesses | Provides guidance in relation to the appointment and contractual terms, including remuneration, for chief executive officers (CEOs) or managing directors. |
| TPP18-04 (PDF 440.07KB) | Directors and Officers Indemnity Policy for State Owned Corporations | Guidance on Shareholder approval to requests by SOCs to indemnify their officers under the SOC Act 1989. |
Reporting
Government businesses must follow several laws, including annual reporting under the Government Sector Finance Act 2018.
Companies set up under the Corporations Act 2001 (Cth) must meet the requirements in that legislation.
Contact NSW Treasury
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- Address: 52 Martin Place, Sydney, NSW 2000 (Enter via 127 Phillip Street)
- Post: GPO Box 5469, Sydney, NSW 2001