{"id":"nsw:act-2018-055","name":"Government Sector Finance Act 2018","slug":"government-sector-finance-act-2018","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"55 of 2018","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":29235,"registerId":"nsw-act-2018-055-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"Division 1","sectionType":"division","heading":"Introduction","content":"## Division 1 Introduction\n\nDivision 1.1 Introduction","sortOrder":1},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1.1 Name of Act\n\n> This Act is the [Government Sector Finance Act 2018](/view/html/inforce/current/act-2018-055).","sortOrder":2},{"sectionNumber":"Part 2","sectionType":"part","heading":"Key concepts","content":"# Part 2 Key concepts\n\nPart 2 Key concepts","sortOrder":14},{"sectionNumber":"Division 2","sectionType":"division","heading":"Entities generally","content":"## Division 2 Entities generally\n\nDivision 2.1 Entities generally","sortOrder":15},{"sectionNumber":"2","sectionType":"section","heading":"Entities","content":"#### 2 Entities\n\n2.1 Entities\n\n> > (1) Each of the following is an entity—\n> > \n> > > (a) a person,\n> > \n> > > (b) a body or group of persons (whether incorporated or unincorporated),\n> > \n> > > (c) a partnership or joint venture,\n> > \n> > > (d) the trustee (or, if there is more than one trustee, the trustees together) of a trust,\n> > \n> > > (e) any other legal, administrative or fiduciary arrangement or other organisational structure capable of deploying resources to achieve objectives.\n> > \n> > Note.\n> > \n> > Section 21 (1) of the [Interpretation Act 1987](/view/html/inforce/current/act-1987-015) defines person to include an individual, a corporation and a body corporate or politic.\n> \n> > (2) To avoid doubt, entities are not limited to those that are formed or located in the State.","sortOrder":16},{"sectionNumber":"Part 3","sectionType":"part","heading":"Roles and responsibilities","content":"# Part 3 Roles and responsibilities\n\nPart 3 Roles and responsibilities","sortOrder":30},{"sectionNumber":"Division 3","sectionType":"division","heading":"Treasurer","content":"## Division 3 Treasurer\n\nDivision 3.1 Treasurer","sortOrder":31},{"sectionNumber":"3","sectionType":"section","heading":"Giving of Treasurer’s directions","content":"#### 3 Giving of Treasurer’s directions\n\n3.1 Giving of Treasurer’s directions\n\n> > (1) The Treasurer may give written directions (called Treasurer’s directions) for or with respect to each of the following—\n> > \n> > > (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,\n> > \n> > > (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,\n> > \n> > > (c) any matter of a kind prescribed by the regulations for which the Treasurer’s directions are authorised to make provision.\n> > \n> > Note.\n> > \n> > 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.\n> \n> > (2) A Treasurer’s direction—\n> > \n> > > (a) cannot be inconsistent with this Act, and\n> > \n> > > (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\n> > \n> > > (c) takes effect on the day it is published on the NSW legislation website or any later day specified in the direction, and\n> > \n> > > (d) may be amended, replaced or revoked by a further Treasurer’s direction.\n> \n> > (3) A Treasurer’s direction may do any of following (or any combination of the following)—\n> > \n> > > (a) apply generally or be limited in its application by reference to one or more specified circumstances, factors or exceptions,\n> > \n> > > (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,\n> > \n> > > (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,\n> > \n> > > (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.\n> \n> > (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.\n> \n> > (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.","sortOrder":32},{"sectionNumber":"Part 4","sectionType":"part","heading":"Budget, appropriations and Special Deposits Account","content":"# Part 4 Budget, appropriations and Special Deposits Account\n\nPart 4 Budget, appropriations and Special Deposits Account","sortOrder":41},{"sectionNumber":"Division 4","sectionType":"division","heading":"Budget","content":"## Division 4 Budget\n\nDivision 4.1 Budget","sortOrder":42},{"sectionNumber":"4","sectionType":"section","heading":"Budget Papers","content":"#### 4 Budget Papers\n\n4.1 Budget Papers\n\n> > (1) The Budget Papers are the Budget Papers of the Government tabled in Parliament in connection with Bills for annual Appropriation Acts.\n> \n> > (2) The Treasurer is responsible for the preparation and presentation of the Budget Papers.\n> \n> > (3) Unless an annual Appropriation Act provides differently, the Budget Papers tabled in Parliament in connection with the Bill for the Act—\n> > \n> > > (a) do not form part of the Act, and\n> > \n> > > (b) do not affect the application of any amount appropriated by the Act.","sortOrder":43},{"sectionNumber":"Part 5","sectionType":"part","heading":"Expenditure and gifts","content":"# Part 5 Expenditure and gifts\n\nPart 5 Expenditure and gifts","sortOrder":69},{"sectionNumber":"Division 5","sectionType":"division","heading":"Expenditure","content":"## Division 5 Expenditure\n\nDivision 5.1 Expenditure","sortOrder":70},{"sectionNumber":"5","sectionType":"section","heading":"Budget control authorities","content":"#### 5 Budget control authorities\n\n5.1 Budget control authorities\n\n> > (1) The Treasurer may issue Budget control authorities to regulate expenditure of money by GSF agencies that are part of the General Government Sector.\n> \n> > (2) A Budget control authority may be—\n> > \n> > > (a) a standing authority regulating expenditures of money in general terms, or\n> > \n> > > (b) limited as to the period during which it may operate to regulate expenditures of money, or\n> > \n> > > (c) limited as to the nature of the transactions in respect of which expenditures of money may occur, or\n> > \n> > > (d) limited to a particular transaction or series of transactions, or\n> > \n> > > (e) contained in the Treasurer’s directions or in a separate written document given to the GSF agencies concerned.\n> \n> > (3) Without limiting subsections (1) and (2), a Budget control authority may include provisions that—\n> > \n> > > (a) set limits or caps on expenditures of money (whether by reference to amounts, percentages, ratios, growth factors or any other measures), and\n> > \n> > > (b) require additional authorisations for particular expenditures of money, and\n> > \n> > > (c) regulate expenditures of money using cash accounting methodology or accrual accounting methodology (or both).","sortOrder":71},{"sectionNumber":"Part 6","sectionType":"part","heading":"Financial services and arrangements","content":"# Part 6 Financial services and arrangements\n\nPart 6 Financial services and arrangements","sortOrder":79},{"sectionNumber":"Division 6","sectionType":"division","heading":"Introduction","content":"## Division 6 Introduction\n\nDivision 6.1 Introduction","sortOrder":80},{"sectionNumber":"6","sectionType":"section","heading":"Application of Part","content":"#### 6 Application of Part\n\n6.1 Application of Part\n\n> > (1) For the purposes of this Part, each Minister (except the Treasurer) is to be treated as both a GSF agency and the accountable authority for the agency.\n> \n> > (2) To avoid doubt, an accountable authority for a GSF agency or government officer cannot do anything for or on behalf of a GSF agency that would contravene this Part if it were done directly by the agency.\n> \n> > (3) A provision of the Treasurer’s directions given, or of regulations made, for the purposes of any provisions of this Part that applies to GSF agencies generally is not to be read as applying to the New South Wales Treasury Corporation unless those directions or regulations provide for it expressly.\n> \n> > (4) The Treasurer must consult the New South Wales Treasury Corporation in accordance with section 3.5 about any proposed provisions in the Treasurer’s directions or regulations that will expressly apply to it for the purposes of this Part.\n> \n> > (5) The provisions of this Part apply despite any powers, privileges or other rights under the general law of the Crown, Ministers or other entities acting for or on behalf of the Crown.\n> \n> Note.\n> \n> This Part is a paramount provision of this Act. Section 1.8 requires a person or other entity to whom a paramount provision applies to comply with the provision (including any regulations made for the purposes of that provision) even if it may result in a non-criminal contravention of other legislation. It also provides that compliance does not result in any civil liability and displaces the operation of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth to enable compliance.","sortOrder":81},{"sectionNumber":"Part 7","sectionType":"part","heading":"Reporting","content":"# Part 7 Reporting\n\nPart 7 Reporting","sortOrder":123},{"sectionNumber":"Division 7","sectionType":"division","heading":"Interpretation","content":"## Division 7 Interpretation\n\nDivision 7.1 Interpretation","sortOrder":124},{"sectionNumber":"7","sectionType":"section","heading":"Application and objects of Part","content":"#### 7 Application and objects of Part\n\n7.1 Application and objects of Part\n\n> > (1) The provisions of this Part apply in addition to, and without limiting, any other reporting requirements that an entity may have under other legislation (including legislation of the Commonwealth).\n> \n> > (2) The objects of this Part are—\n> > \n> > > (a) to promote transparency and accountability with respect to the reporting of certain financial and other information concerning the State, GSF agencies and reporting GSF agencies, and\n> > \n> > > (b) to facilitate the use of that information by its users (whether within or outside the government sector) to make informed decisions.\n> \n> > (3) The following modifications have effect in relation to this Part in its application to the Audit Office as a GSF agency—\n> > \n> > > (a) the financial statements or reports prepared for the Audit Office under this Part that require auditing are to be given to and audited by the auditor appointed under section 47 of the [Government Sector Audit Act 1983](/view/html/inforce/current/act-1983-152) in accordance with section 48 of that Act instead of being given to and audited by the Auditor-General,\n> > \n> > > (b) the Auditor General (and not a Minister) is to cause any document relating to the Audit Office that is permitted or required to be tabled in Parliament under this Part to be presented to the Clerks of both Houses of Parliament and section 9.12 is taken to apply to the presented document regardless of whether or not the House concerned is sitting.\n> \n> Note.\n> \n> This Part (subject to subsection (1) and sections 7.4 and 7.10) is a paramount provision of this Act. Section 1.8 requires a person or other entity to whom a paramount provision applies to comply with the provision (including any regulations made for the purposes of that provision) even if it may result in a non-criminal contravention of other legislation. It also provides that compliance does not result in any civil liability and displaces the operation of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth to enable compliance.","sortOrder":125},{"sectionNumber":"Part 8","sectionType":"part","heading":"Performance information of GSF agencies","content":"# Part 8 Performance information of GSF agencies\n\nPart 8 Performance information of GSF agencies","sortOrder":146},{"sectionNumber":"8","sectionType":"section","heading":"Application of Part","content":"#### 8 Application of Part\n\n8.1 Application of Part\n\n> > (1) This Part applies in relation to GSF agencies.\n> \n> > (2) However, this Part does not apply in relation to GSF agencies to the extent that the application of the Part to them is excluded by or under the regulations.","sortOrder":147},{"sectionNumber":"Part 9","sectionType":"part","heading":"Administration","content":"# Part 9 Administration\n\nPart 9 Administration","sortOrder":149},{"sectionNumber":"Division 9","sectionType":"division","heading":"Information sharing","content":"## Division 9 Information sharing\n\nDivision 9.1 Information sharing","sortOrder":150},{"sectionNumber":"9","sectionType":"section","heading":"Relevant agency information","content":"#### 9 Relevant agency information\n\n9.1 Relevant agency information\n\n> Relevant agency information about a GSF agency is information concerning any of the following—\n> \n> > (a) the banking information of the agency,\n> \n> > (b) the cash flows of the agency,\n> \n> > (c) the assets, rights and liabilities of the agency,\n> \n> > (d) the sources and application of the agency’s funding,\n> \n> > (e) financial arrangements entered into by or on behalf of the agency,\n> \n> > (f) information for use in preparing the Budget,\n> \n> > (g) annual reporting information about the agency required under Division 7.3,\n> \n> > (h) records or other information required to be kept under Part 8 concerning the agency’s performance,\n> \n> > (i) any other information of a kind prescribed by the regulations.","sortOrder":151},{"sectionNumber":"Part 10","sectionType":"part","heading":"Miscellaneous","content":"# Part 10 Miscellaneous\n\nPart 10 Miscellaneous","sortOrder":173},{"sectionNumber":"10","sectionType":"section","heading":"Status of Workers Compensation Insurance Fund","content":"#### 10 Status of Workers Compensation Insurance Fund\n\n10.1 Status of Workers Compensation Insurance Fund\n\n> The Workers Compensation Insurance Fund is not—\n> \n> > (a) a controlled entity of the Government of New South Wales for the purposes of the preparation of the Consolidated State Financial Statements, or\n> \n> > (b) part of the General Government Sector for the purposes of this Act or the [Fiscal Responsibility Act 2012](/view/html/inforce/current/act-2012-058).","sortOrder":174},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Savings, transitional and other provisions","content":"# Schedule 1 Savings, transitional and other provisions\n\nSchedule 1 Savings, transitional and other provisions\n\n**sch 1:** Am 2018 (685), Sch 1; 2019 (257), Sch 2 \\[1\\] \\[2\\]; 2020 No 6, Sch 1.1\\[3\\]–\\[5\\]; 2021 (320), Sch 1\\[1\\]–\\[5\\]; 2022 No 29, Sch 1.3\\[4\\]; 2022 (639), sec 3; 2022 No 63, Sch 1\\[10\\]; 2023 No 1, Sch 1\\[2\\]; 2023 No 7, Sch 2.29; 2023 No 18, Sch 3\\[3\\]; 2023 No 35, Sch 3.6.","sortOrder":181},{"sectionNumber":"9A","sectionType":"section","heading":"Special provisions relating to deferred commencement of annual reporting provisions of the Act","content":"#### 9A Special provisions relating to deferred commencement of annual reporting provisions of the Act\n\n9A Special provisions relating to deferred commencement of annual reporting provisions of the Act\n\n> > (1) The references in this Act, section 7.6(5)(a) to annual reporting information and the requirement under this Act, Division 7.3 to prepare annual reporting information are to be read on and from 1 July 2021 until 30 June 2023 as references to, respectively—\n> > \n> > > (a) for a GSF agency to which the [Annual Reports (Statutory Bodies) Act 1984](/view/html/repealed/current/act-1984-087) applies—\n> > > \n> > > > (i) annual reports of a statutory body prepared under the [Annual Reports (Statutory Bodies) Act 1984](/view/html/repealed/current/act-1984-087), and\n> > > \n> > > > (ii) the requirement to prepare annual reports under the Annual Reports (Statutory Bodies) Act 1984, and\n> > \n> > > (b) for a GSF agency to which the [Annual Reports (Departments) Act 1985](/view/html/repealed/current/act-1985-156) applies—\n> > > \n> > > > (i) annual reports of a Department prepared under the [Annual Reports (Departments) Act 1985](/view/html/repealed/current/act-1985-156), and\n> > > \n> > > > (ii) the requirement to prepare annual reports under the Annual Reports (Departments) Act 1985, and\n> \n> > (2) The references in this Act, section 7.7(3)(a) to annual reporting information and the requirement under this Act, Division 7.3 to prepare annual reporting information are to be read on and from 1 July 2021 until 30 June 2023 as references to, respectively—\n> > \n> > > (a) for a former reporting GSF agency to which the [Annual Reports (Statutory Bodies) Act 1984](/view/html/repealed/current/act-1984-087) applies or applied—\n> > > \n> > > > (i) annual reports of a statutory body prepared under the [Annual Reports (Statutory Bodies) Act 1984](/view/html/repealed/current/act-1984-087), and\n> > > \n> > > > (ii) the requirement to prepare annual reports under the Annual Reports (Statutory Bodies) Act 1984, and\n> > \n> > > (b) for a former reporting GSF agency to which the [Annual Reports (Departments) Act 1985](/view/html/repealed/current/act-1985-156) applies or applied—\n> > > \n> > > > (i) annual reports of a Department prepared under the [Annual Reports (Departments) Act 1985](/view/html/repealed/current/act-1985-156), and\n> > > \n> > > > (ii) the requirement to prepare annual reports under the Annual Reports (Departments) Act 1985.","sortOrder":195},{"sectionNumber":"9B","sectionType":"section","heading":"References to annual reports","content":"#### 9B References to annual reports\n\n9B References to annual reports\n\n> > (1) This clause applies to a GSF agency to which either of the following applied immediately before its repeal—\n> > \n> > > (a) the [Annual Reports (Statutory Bodies) Act 1984](/view/html/repealed/current/act-1984-087),\n> > \n> > > (b) the [Annual Reports (Departments) Act 1985](/view/html/repealed/current/act-1985-156).\n> \n> > (2) A reference in an affected provision to an annual report of the GSF agency must be read, on and from 1 July 2023, as a reference to annual reporting information for the GSF agency.","sortOrder":196},{"sectionNumber":"11","sectionType":"section","heading":"Existing expenditure control authorities","content":"#### 11 Existing expenditure control authorities\n\n11 Existing expenditure control authorities\n\n> Any expenditure control authority under section 10 of the [Public Finance and Audit Act 1983](/view/html/inforce/current/act-1983-152) continues in force as a Budget control authority under this Act to the extent that the authority applies to entities (or kinds of entities) that are GSF agencies.","sortOrder":199},{"sectionNumber":"12","sectionType":"section","heading":"Existing delegations and authorisations to approve payment","content":"#### 12 Existing delegations and authorisations to approve payment\n\n12 Existing delegations and authorisations to approve payment\n\n> > (1) Any delegation given under a replaced Act or replaced Regulation continues in force as a delegation for the purposes of Division 9.2 of this Act.\n> \n> > (2) Any delegation made pursuant to an authorisation to delegate the committing or incurring of expenditure for the purposes of section 12A of the [Public Finance and Audit Act 1983](/view/html/inforce/current/act-1983-152) continues in force as a delegation for the purposes of Division 9.2 of this Act.\n> \n> > (3) Any authorisation to approve payment for the purposes of section 13 of the [Public Finance and Audit Act 1983](/view/html/inforce/current/act-1983-152) is taken to be a delegation given for the purposes of Division 9.2 of this Act.\n> \n> > (4) The following provisions apply in relation to a delegation or authorisation that becomes a delegation (a transferred delegation) for the purposes of Division 9.2 of this Act by operation of this clause—\n> > \n> > > (a) the transferred delegation is taken to have been given by the same person under Division 9.2,\n> > \n> > > (b) the transferred delegation delegates to the same entities (or the same kinds of entities), but only to the extent that those entities are permissible delegates under Division 9.2,\n> > \n> > > (c) the transferred delegation delegates the same functions (or the same kinds of functions), but only to the extent that those functions or corresponding functions under this Act can be delegated under Division 9.2,\n> > \n> > > (d) Division 2 of this Part applies in relation to references in a transferred delegation to a replaced Act or replaced Regulation (or a provision of such an Act or Regulation).\n> \n> > (5) This clause does not apply in respect of a delegation given under the [Public Finance and Audit Act 1983](/view/html/inforce/current/act-1983-152) to the extent that it relates to a function under a provision of that Act that is not repealed by the amending Act.","sortOrder":201},{"sectionNumber":"13","sectionType":"section","heading":"Existing financial arrangements","content":"#### 13 Existing financial arrangements\n\n13 Existing financial arrangements\n\n> > (1) Any approval for a financial arrangement given under a provision of the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033) continues in force as a financial arrangement approval under this Act (and may be amended and revoked accordingly)—\n> > \n> > > (a) for a joint financing arrangement or joint venture arrangement—until the arrangement ends, or\n> > \n> > > (b) for any other financial arrangement—for a period of 3 years after the replacement day for the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033) unless the arrangement ends sooner.\n> \n> > (2) Any guarantees provided (or taken to have been provided) by or under the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033) in relation to these financial arrangements continue to be in force until they end despite the repeal of that Act by the amending Act.\n> \n> > (3) In this clause—\n> > \n> > approval, in relation to a financial arrangement, includes an exemption or other authorisation that permits entering into the arrangement.","sortOrder":203},{"sectionNumber":"14","sectionType":"section","heading":"Existing investment powers","content":"#### 14 Existing investment powers\n\n14 Existing investment powers\n\n> > (1) This clause applies if a GSF agency was an authority with an investment power (an existing investment power) under Part 1, 2, 3 or 4 of Schedule 4 to the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033).\n> \n> > (2) Subject to subclause (3), a GSF agency may exercise its existing investment powers for a period of 3 years after the replacement day for the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033).\n> > \n> > Note.\n> > \n> > This clause operates to authorise the exercise of existing investment powers without the need for a financial arrangement approval. See section 6.22 (2) (a) of this Act.\n> \n> > (3) The Treasurer may, by written order given to the accountable authority for a GSF agency, direct that subclause (2) is to cease to apply to some or all of the agency’s existing investment powers specified in the order.\n> \n> > (4) To avoid doubt, a reference to a GSF agency in this clause includes an entity that is a GSF agency only for the purposes of some or all of the provisions of Part 6 of this Act.","sortOrder":204},{"sectionNumber":"15","sectionType":"section","heading":"Continuation of certain provisions of Public Authorities (Financial Arrangements) Act 1987","content":"#### 15 Continuation of certain provisions of Public Authorities (Financial Arrangements) Act 1987\n\n15 Continuation of certain provisions of [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033)\n\n> > (1) The following provisions of the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033) continue to apply despite the repeal of that Act—\n> > \n> > > (a) section 8A (Special provisions relating to ownership of buildings, structures or other fixtures) in relation to agreements entered into before the replacement day for the Act,\n> > \n> > > (b) section 12 (Provisions relating to authorities which obtain financial accommodation) and Schedule 2 (Provisions relating to securities etc) in relation to financial accommodations obtained before the replacement day for the Act,\n> > \n> > > (c) section 44 (Validation of certain financial adjustments) in relation to arrangements and transactions entered into before the replacement day for the Act.\n> \n> > (2) Any terms and conditions imposed by the Treasurer under section 9 (Treasury advances) of the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033) on an advance continue to apply to an advance made before the replacement day for the Act.\n> \n> > (3) This clause does not limit the operation of clause 6 or section 30 of the [Interpretation Act 1987](/view/html/inforce/current/act-1987-015) in their application to matters arising under the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033).","sortOrder":205},{"sectionNumber":"16","sectionType":"section","heading":"Existing banking agreement","content":"#### 16 Existing banking agreement\n\n16 Existing banking agreement\n\n> Any agreement in force under section 15 (Agreement with bank, building society or credit union) of the [Public Finance and Audit Act 1983](/view/html/inforce/current/act-1983-152) is taken to be a State financial service agreement for the purposes of this Act until the agreement ends.","sortOrder":206},{"sectionNumber":"17","sectionType":"section","heading":"Existing fund manager approvals","content":"#### 17 Existing fund manager approvals\n\n17 Existing fund manager approvals\n\n> An approval of the Treasurer in force under section 25 of the [Public Authorities (Financial Arrangements) Act 1987](/view/html/repealed/current/act-1987-033) given to an authority under that Act that becomes a GSF agency to engage an approved funds manager (other than the New South Wales Treasury Corporation) continues in force as a funds manager approval under this Act.","sortOrder":207},{"sectionNumber":"18","sectionType":"section","heading":"Relationship of Division with Division 6.4 of this Act","content":"#### 18 Relationship of Division with Division 6.4 of this Act\n\n18 Relationship of Division with Division 6.4 of this Act\n\n> This Division does not limit any other powers that a GSF agency has under Division 6.4 of this Act to enter into financial arrangements.","sortOrder":208},{"sectionNumber":"19","sectionType":"section","heading":"Existing appropriations","content":"#### 19 Existing appropriations\n\n19 Existing appropriations\n\n> > (1) This clause applies to an appropriation (an existing unused appropriation) that was given before the commencement of Part 4 of this Act if, immediately before that commencement, the appropriation had not been applied (whether wholly or partly).\n> \n> > (2) Part 4 of this Act extends to an existing unused appropriation to the extent to which it has not been applied.\n> \n> > (3) Without limiting subclause (2), an existing unused appropriation given as the Treasurer’s advance is taken to be a Treasurer’s State contingencies appropriation for the purposes of section 4.12 of this Act.","sortOrder":210},{"sectionNumber":"20","sectionType":"section","heading":"Existing working accounts","content":"#### 20 Existing working accounts\n\n20 Existing working accounts\n\n> > (1) This clause applies to a working account established under section 13A of the [Public Finance and Audit Act 1983](/view/html/inforce/current/act-1983-152) for an authority within the meaning of that Act (an existing working account) if—\n> > \n> > > (a) the account was in existence immediately before the replacement day for that section (the section 13A replacement day), and\n> > \n> > > (b) the authority is a GSF agency for the purposes of this Act.\n> \n> > (2) An existing working account is taken to be a working account established under section 4.17 of this Act for the GSF agency (a continued working account) concerned.\n> \n> > (3) Any money (including money that is not working account money) held in an existing working account is taken to form part of the continued working account.\n> \n> > (4) To avoid doubt, subclause (3) does not authorise the payment into a continued working account of money that is not working account money received on or after the section 13A replacement day.\n> \n> > (5) Subject to any regulations made for the purposes of section 4.17, the operation of an existing working account, and the purposes for which money may be paid out of the account, continue to be subject to any terms and conditions specified in the instrument that established the account.\n> \n> > (6) This section expires at the end of 31 December 2022.\n> \n> > (7) In this clause—\n> > \n> > working account money has the same meaning as in section 4.17 of the Act.","sortOrder":211},{"sectionNumber":"32","sectionType":"section","heading":"Definition for Part","content":"#### 32 Definition for Part\n\n32 Definition for Part\n\n> In this Part—\n> \n> amending Act means the [Treasury and Energy Legislation Amendment Act 2022](/view/pdf/asmade/act-2022-63).","sortOrder":214},{"sectionNumber":"32A","sectionType":"section","heading":"Extension of deemed appropriation money","content":"#### 32A Extension of deemed appropriation money\n\n32A Extension of deemed appropriation money\n\n> Section 4.7, as amended by the amending Act, extends to government money that was received or recovered by a GSF agency before the commencement of the amending Act, Schedule 1.","sortOrder":215},{"sectionNumber":"33","sectionType":"section","heading":"Application of existing deemed appropriations and delegations","content":"#### 33 Application of existing deemed appropriations and delegations\n\n33 Application of existing deemed appropriations and delegations\n\n> > (1) This clause applies in relation to—\n> > \n> > > (a) an existing deemed appropriation to the responsible Minister for a GSF agency, and\n> > \n> > > (b) a delegation given by the responsible Minister to a person that authorises the application of all or part of the existing deemed appropriation by the person.\n> \n> > (2) On and from the commencement of the amending Act, Schedule 1—\n> > \n> > > (a) the existing deemed appropriation is taken to have been given to the lead Minister for the GSF agency, and\n> > \n> > > (b) the delegation continues in effect as if the delegation had been given by the lead Minister for the GSF agency.\n> \n> > (3) In this clause—\n> > \n> > existing deemed appropriation, to a responsible Minister for a GSF agency, means an appropriation taken to have been given to the Minister under the Act, section 4.7 as in force before the commencement of the amending Act, Schedule 1.","sortOrder":216},{"sectionNumber":"34","sectionType":"section","heading":"Application of amendments","content":"#### 34 Application of amendments\n\n34 Application of amendments\n\n> > (1) Section 5.7, as amended by the amendment Act, applies to an act of grace payment made to a person before the commencement date.\n> \n> > (2) The Chief Commissioner of State Revenue may nominate an act of grace payment (a nominated act of grace payment) for section 5.7, as amended by the amendment Act, even if the act of grace payment was made to a person before the commencement date.\n> \n> > (3) Despite subclause (2), section 5.7(3B), to the extent it applies the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097), Part 8 in relation to a person whom a nominated act of grace payment is made, does not apply to an act of grace payment made before the commencement date.\n> \n> > (4) In this clause—\n> > \n> > amendment Act means the [Revenue, Fines and Other Legislation Amendment Act 2023](/view/pdf/asmade/act-2023-18).\n> > \n> > commencement date means the date of assent to the amendment Act.","sortOrder":218},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":null,"content":"# Schedule 2\n\nSchedule 2 (Repealed)\n\n**sch 2:** Ins 2020 No 6, Sch 1.1\\[6\\]. Rep 2018 No 55, sec 10.5(1).","sortOrder":219}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"name":"Government Sector Finance Act 2018","slug":"government-sector-finance-act-2018","title_id":"nsw:act-2018-055","version_id":29235,"analysis_type":"summary","content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"Whole Act, in force, 260,906 chars."},"complexity_factors":["Comprehensive financial management framework covering budgeting, expenditure, financial arrangements, and reporting","Complex agency classification structure (GSF agencies, reporting GSF agencies, universities)","Detailed appropriations and Special Deposits Account framework","Act of grace payment regime with recovery and tax enforcement mechanisms","Interactions with NSW Constitution Act and multiple other NSW government legislation"],"plain_english_summary":"The Government Sector Finance Act 2018 (NSW) is the primary framework statute governing financial management, budgeting, reporting, and accountability for the NSW government sector. It replaces earlier NSW financial management legislation and establishes a comprehensive set of requirements for GSF agencies (government sector finance agencies), their accountable authorities, and government officers.\n\nThe Act's key purposes include promoting sound financial management, budgeting, and accountability; facilitating devolution of financial responsibilities to agencies; requiring efficient and effective use of government resources; and promoting performance information sharing.\n\nThe Act covers: budget and appropriations (Part 4), including the Budget Papers, Budget control authority framework, and Special Deposits Account; expenditure and gifts (Part 5), including conditions for expenditure, act of grace payments, gifts of public property, and transfer of property for no or inadequate consideration; financial services and arrangements (Part 6), including banking accounts, borrowings, guarantees, insurance, and foreign currency; reporting (Part 7), including annual GSF financial statements, annual reporting information, Consolidated State Financial Statements, and audit requirements; performance information (Part 8); and administration (Part 9).\n\nSection 5.7 (act of grace payments) has been applied in litigation: in Swiss Re International SE v LCA Marrickville [2021] FCA 1206, the Federal Court found that COVID-19 business support grants made under section 5.7 are merciful beneficences (acts of grace) and not amounts to be deducted from an insured's loss under an insurance contract.\n\nThe Act applies to all GSF agencies in NSW, including government departments, statutory bodies, and (for some provisions) State-owned corporations and universities."},"kimi_summary":{"_metrics":{"completionTokens":701},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"The legislation appears to be operating within its original scope as a comprehensive public financial management framework. The 2024 amendments (integrity agency appropriations, transfers between funds) and earlier amendments represent evolutionary refinements rather than scope expansion. The core purposes stated in s 1.3 (sound financial management, devolution of responsibilities, stewardship of resources, performance information) remain the central focus."},"complexity_factors":["Extensive cross-referencing between Parts, Divisions, and sections (e.g., definitions in s 1.4 referenced throughout)","47+ defined terms in the interpretation section alone, many with nested definitions","Multiple paramount provisions that override other laws (s 1.8)","Complex delegation framework with multiple levels (delegate → subdelegate) and different rules for different types of entities (ss 9.7–9.11)","Conditional application to different entity types (GSF agencies, separate GSF agencies, universities, integrity agencies) with different rules for each","Financial arrangements framework with multiple approval pathways (Treasurer approval, deemed approval, NSW Treasury Corporation authorisation)","Transitional provisions in Schedule 1 that modify operation of the Act during phased implementation","Interaction with Commonwealth Corporations Act displacement provisions (ss 1.8, 1.9)","Nested exceptions and carve-outs (e.g., s 2.5 allows separate GSF agencies to disregard Treasurer's directions in certain circumstances)","Multiple reporting regimes with different timelines and consolidation rules (Part 7)"],"plain_english_summary":"This Act is the **Government Sector Finance Act 2018** (NSW), which establishes the legal framework for how the New South Wales government manages its money, resources, and financial reporting.\n\n**What it does:**\n- **Sets up the rules** for budgeting, spending, borrowing, investing, and reporting across all NSW government agencies (called \"GSF agencies\" — Government Sector Finance agencies)\n- **Creates accountability** by requiring agencies to have an \"accountable authority\" (a specific person or body responsible for financial decisions) and to follow values like integrity, transparency, and accountability\n- **Gives the Treasurer powerful oversight**, including the ability to issue directions, approve financial arrangements, enter banking agreements for the whole government, and require agencies to provide financial information\n- **Establishes reporting requirements** — agencies must prepare annual financial statements that are audited and tabled in Parliament, and the Treasurer must produce consolidated financial statements for the whole state\n- **Protects integrity agencies** (like the Audit Office, ICAC, and Ombudsman) by giving them special independence from Treasurer's directions if those directions would conflict with their statutory functions\n- **Allows for civil recovery** from officers who improperly give away government property or cause losses through misconduct\n\n**Who it affects:**\n- All NSW government agencies, departments, state-owned corporations, universities, health entities, and integrity bodies\n- Government officers (public servants) who handle government money or resources\n- Ministers and the Treasurer\n\n**Why it matters:**\nThis Act replaced several older laws to create a single, modern system for public financial management. It aims to ensure taxpayer money is used efficiently, transparently, and accountably, while giving agencies enough flexibility to operate effectively. The Act also includes special protections for integrity agencies to preserve their independence from political interference."},"flash_summary":{"complexity_score":9,"scope_assessment":{"changed":true,"description":"The Act significantly expanded the scope of financial governance compared to the earlier patchwork of laws it replaced. It extended detailed financial management, reporting, and control requirements to a broader range of entities (notably including universities and their controlled entities in Part 7 reporting) and gave the Treasurer new powers to issue binding directions and approvals that override other legislation. The original Acts focused on narrower categories (e.g., 'statutory bodies', 'departments') and had less integrated oversight of banking, financial arrangements, and performance information. The new Act also introduced a unified annual reporting framework and consolidated provisions for borrowing, investment, and derivatives that were previously scattered."},"complexity_factors":["Over 50 defined terms in section 1.4, many of which are interconnected and rely on further definitions (e.g., 'government money', 'GSF agency', 'financial arrangement').","Extensive cross-referencing both within the Act (e.g., s1.8 paramount provisions refer to s5.3, s5.4, Part 6, Part 7) and to external Acts (e.g., Corporations Act 2001, Constitution Act 1902).","Nested exceptions: definitions exclude certain things by regulation, and many provisions have carve-outs (e.g., s2.4(4) excludes Legislature, Ministers; s2.5 gives separate GSF agencies opt-out from Treasurer's directions).","Complex delegation framework (Division 9.2) with detailed tables specifying who can delegate to whom, and multiple levels of sub-delegation with restrictions.","Part 6 on financial arrangements includes layered concepts: financial arrangements, borrowings, investments, derivative arrangements, joint financing arrangements, joint ventures—each with regulation-made exceptions.","Multiple amendment histories (see s2.4 amendment note, Schedule 1) and transitional provisions (Schedule 1 has Parts 1-6) that modify the operation of the Act over time.","Paramount provisions (s1.8) create overriding effects that require careful reading to understand when they displace other laws.","Dependence on future regulations and Treasurer's directions for many operational details (e.g., prescribing what is 'government money', 'related money', exemption criteria)."],"plain_english_summary":"The Government Sector Finance Act 2018 sets out the rules for how most NSW government agencies handle money. It covers everything from day-to-day spending and budgeting to borrowing, investing, and reporting to Parliament. The Act applies to a wide range of bodies—government departments, health agencies, police, state-owned corporations, and others—as well as the people who work for them or handle public funds on their behalf.\n\n**What it changes mechanically:**\n- Replaces several older laws (the Public Finance and Audit Act, the Public Authorities (Financial Arrangements) Act, and the Annual Reports Acts) with a single framework.\n- Creates a central role for the Treasurer to issue directions that agencies must follow, covering financial management, banking, and reporting.\n- Requires each agency to have an 'accountable authority' (usually the agency head or governing body) responsible for financial management, internal controls, and record-keeping.\n- Sets out how money can be spent only under proper authority—either through parliamentary appropriation, delegation from a Minister, or specific statutory power.\n- Mandates annual financial statements and performance reports, which must be audited and tabled in Parliament.\n- Governs how agencies can borrow (mostly from NSW Treasury Corporation) and enter into financial arrangements (like derivatives or joint ventures), often requiring Treasurer approval.\n- Introduces rules for banking accounts, including the Treasurer's power to enter state-wide banking agreements.\n\n**Who it affects:**\n- All 'GSF agencies'—a broad category defined in the Act, including most public sector bodies except Parliament, Ministers, and some funds.\n- Government officers (employees and certain contractors) and accountable authorities.\n- Ultimately, taxpayers, by aiming to ensure public money is tracked and used efficiently.\n\n**Why it matters (mechanically):**\n- It consolidates financial governance into one Act, reducing duplication but also creating a complex web of definitions, exceptions, and delegated powers.\n- It gives the Treasurer significant discretion through directions and approvals, which can be changed without new legislation.\n- The reporting requirements (budget papers, monthly statements, half-yearly reviews, consolidated state financial statements) are intended to provide transparency, but their usefulness depends on compliance and the quality of information.\n- The Act's 'paramount provisions' (like tax-equivalent payments and financial arrangements) override other legislation, which can reduce legal certainty for third parties dealing with agencies."}},"importantCases":[],"_links":{"self":"/api/acts/government-sector-finance-act-2018","history":"/api/acts/government-sector-finance-act-2018/history","analysis":"/api/acts/government-sector-finance-act-2018/analysis","conflicts":"/api/acts/government-sector-finance-act-2018/conflicts","importantCases":"/api/acts/government-sector-finance-act-2018/important-cases","documents":"/api/acts/government-sector-finance-act-2018/documents"}}