Financial Management Act 1996

1 Name of Act This Act is the Financial Management Act 1996.

2 Act subject to Territory Superannuation Provision Protection Act This Act is subject to the Territory Superannuation Provision Protection Act 2000.

3 Dictionary The dictionary at the end of this Act is part of this Act. Note 1 The dictionary at the end of this Act defines certain terms used in the Act, and includes references (signpost definitions) to other terms defined elsewhere in this Act or in other legislation. For example, the signpost definition ‘superannuation appropriation— see the Territory Superannuation Provision Protection Act 2000, dictionary.’ means that the term ‘superannuation appropriation’ is defined in that dictionary and the definition applies to this Act. Note 2 A definition in the dictionary (including a signpost definition) applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156).

3A Notes A note included in this Act is explanatory and is not part of the Act. Note See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

Preliminary Part 1

3B Declaration that certain bodies are not territory authorities for Act (1) The Treasurer may declare that a stated body is not a territory authority for this Act or a stated provision of this Act. (2) A declaration is a notifiable instrument.

4 Application of pts 2 to 5—Office of the Legislative Assembly and officers of the Assembly (1) Unless the contrary intention appears, the provisions of parts 2 to 5 apply to— (a) the Office of the Legislative Assembly as if— (i) a reference in those provisions to a directorate included a reference to the office; and (ii) a reference in those provisions to the responsible Minister of a directorate were a reference to the Speaker; and (iii) a reference in those provisions to the responsible director-general of a directorate included a reference to the clerk of the Legislative Assembly; and (b) an officer of the Assembly as if— (i) a reference in those provisions to a directorate included a reference to the officer; and (ii) a reference in those provisions to the responsible Minister of a directorate were a reference to the Legislative Assembly; and (iii) a reference in those provisions to the responsible director-general of a directorate included a reference to the officer.

(2) Division 3.2 (Financial reports and performance statements of directorates) applies to the auditor-general as if a reference in that division to the auditor-general were a reference to the independent auditor engaged under the Auditor-General Act 1996, section 31 (Independent auditor). Note Div 3.2, s 30A and s 30E do not apply to the auditor-general (see s 30A (3) and s 30E (4)). (3) For section 20AB and section 20AC, a reference to an officer of the Assembly, in relation to the electoral commissioner, includes the other members of the electoral commission. Note The electoral commissioner is an officer of the Assembly (see Legislation Act, dict, pt 1). All members of the electoral commission are independent officers of the Legislative Assembly (see Electoral Act 1992, s 6A). (4) Section 31 (2) (c) does not apply to— (a) the Office of the Legislative Assembly; and

Subdivision 2.1.1 Appropriations and budgets—generally

5 Timing of first Appropriation Bill for financial year Except as otherwise provided by a resolution of the Legislative Assembly, the first Appropriation Bill relating to a financial year must be introduced into the Legislative Assembly not later than 3 months after the beginning of the financial year.

6 Necessity for appropriation No payment of public money must be made otherwise than in accordance with an appropriation.

7 Payments authorised on lapse of appropriation (1) If, before the end of a financial year, no Act other than this Act has been passed appropriating public money to meet the requirements of the next financial year, the Treasurer may pay the amounts necessary to meet those requirements subject to the following provisions: (a) the authority of the Treasurer under this section ceases on the commencement of the first Appropriation Act for the next financial year; (b) on that commencement all payments made under this section for the next financial year are taken for all purposes to have been paid out of money appropriated by that Act; (c) for the 2021-22 financial year—the payments made under this section for any purpose must not exceed, in total, 75% of the amount appropriated by Appropriation Acts for the 2020-21 financial year for that purpose;

(d) for any other financial year—the payments made under this section for any purpose must not exceed, in total, 1/2 of the amount appropriated by Appropriation Acts for the immediately previous financial year for that purpose. purpose means a purpose that could reasonably be considered to be within the usual responsibilities and ordinary business of an entity.

7A Temporary advance for new purpose or new entity (a) an amount is proposed to be appropriated by a bill for the first Appropriation Act for a financial year for a new purpose or a new entity; and (b) the bill has not yet been passed by the Legislative Assembly. (2) The Treasurer may, in writing, authorise an amount (a temporary advance) for expenditure for the new purpose or new entity if the Treasurer is satisfied that there is an immediate requirement for the expenditure. (3) A temporary advance must be authorised from the amount paid by the Treasurer under section 7 for section 18 (Treasurer’s advance). (4) The total amount of temporary advances authorised must not exceed 50% of the amount paid by the Treasurer under section 7 for section 18. (5) On the commencement of the first Appropriation Act for the financial (a) the temporary advance ceases; and (b) the temporary advance is taken to have been paid out of money appropriated by that Act; and

(c) the amount appropriated for section 18 for the financial year is taken to be restored by the amount of the temporary advance; and (d) if the amount proposed to be appropriated under subsection (1) (a) is not passed in that Act—the temporary advance is taken to have been authorised from the appropriation for section 18 for the financial year. (6) If the Treasurer authorises a temporary advance, the Treasurer must attach the authorisation to the next financial statement presented to the Legislative Assembly. new entity means an entity that has a purpose not previously included, or not reasonably considered to be, within the usual responsibilities and ordinary business of another entity. new purpose means a purpose other than a purpose that could reasonably be considered to be within the usual responsibilities and ordinary business of an entity.

8 Form of appropriations (1) An Appropriation Act may make separate appropriations in relation to each directorate for— (a) any controlled recurrent payments to be provided to the directorate; and (b) any capital injection to be provided to the directorate; and (c) any payments to be made by the directorate on behalf of the

(2) An Appropriation Act may make separate appropriations in relation to a territory authority or territory-owned corporation for— (a) any controlled recurrent payments to be provided to the authority or corporation; and (b) any capital injection to be provided to the authority or (3) There must be a separate Appropriation Act for an appropriation for the Office of the Legislative Assembly. (4) Any appropriation for an officer of the Assembly must be contained in an Appropriation Act for an appropriation for the Office of the Legislative Assembly.

9 Net controlled recurrent payments (1) An appropriation for controlled recurrent payments may be expressed to be made for net controlled recurrent payments. (2) Despite section 6 (Necessity for appropriation), if an appropriation for a directorate is stated to be made for net controlled recurrent payments, the directorate may apply the following in paying the expenses and liabilities of the directorate: (a) the payments it is entitled to receive for providing goods and services, other than controlled recurrent payments under an Appropriation Act; (b) the value of the input tax credits to which it is entitled for taxable supplies in relation to controlled recurrent payments. (3) If the appropriations made by an Appropriation Act for a directorate do not state an amount, or state a ‘0’ appropriation, for controlled recurrent payments, the appropriations have effect as if they included an appropriation for controlled recurrent payments for the directorate at no net cost to the Territory.

9A Net appropriations for capital injections (1) An appropriation for a capital injection may be stated to be made for, or partly for, the net cost of purchasing or developing assets. (2) Despite section 6, if an appropriation is stated to be made for, or partly for, the net cost of purchasing or developing assets, the value of the input tax credits to which the relevant entity is entitled for taxable supplies in relation to purchasing or developing the assets may be applied by the entity in paying the expenses and liabilities of the entity in purchasing or developing the assets. relevant entity, in relation to an appropriation for a capital injection, means the territory entity that is to undertake the purchasing or developing of assets for which the appropriation is made.

9B Appropriations for payments on behalf of Territory to be net appropriations Despite section 6 (Necessity for appropriation), if an appropriation for a directorate is made for payments to be made on behalf of the Territory, the directorate may apply input tax credits to which the Territory is entitled for taxable supplies for which the payments are made towards the payments under the appropriation.

10 Budget papers The Treasurer must, for each financial year, immediately after the presentation of the bill for the first Appropriation Act relating to the year, present to the Legislative Assembly— (a) the proposed budget for the Territory for the year; and (b) the proposed budget for each directorate for the year; and

(c) the proposed budget for each territory authority and territory-owned corporation for the year; and (d) a consolidated financial management statement in relation to— (i) the general government sector; and (ii) the public trading enterprise sector.

11 Territory budgets (1) The proposed budget for the Territory for a financial year presented to the Legislative Assembly under section 10 (a) must include— (a) a financial policy objectives and strategies statement under section 11A for the financial year; and (b) a statement of the economic or other assumptions used to make the budget estimates; and (c) a statement about the sensitivity of the budget estimates to changes in the economic or other assumptions; and (d) a statement of the risks, quantified if possible, that may affect the budget estimates, including contingent liabilities; and (e) the financial statements required under the financial (f) a statement about the effect of the following on an ACT household for the financial year: (i) Territory taxes and fees that have a direct effect on the household; (ii) Territory concessions that offset the taxes and fees mentioned in subparagraph (i); and (g) a statement about the government’s spending intentions for the financial year, including any significant change in spending intentions from the previous financial year.

(2) The proposed budget may include anything else the Treasurer considers relevant. (3) The proposed budget must be prepared in a form that assists a comparison between the budget for the Territory for the previous financial year and the proposed budget. (4) The financial statements included in the proposed budget under subsection (1) (e) must include budget estimates for each of the next (5) The proposed budget must be prepared taking into account— (a) the principles of responsible fiscal management; (b) the object of providing a basis for sustainable social and economic services and infrastructure fairly to all ACT residents; and (c) the object of ecologically sustainable development. (6) The proposed budget may depart from the principles of responsible fiscal management, but if it does depart— (a) any departure must be temporary; and (b) the Treasurer must present to the Legislative Assembly, when the first Appropriation Bill for the financial year is presented to the Legislative Assembly, a statement setting out— (i) the reasons for the departure; and (ii) the approach intended to be taken to return to the principles; and (iii) when the principles are expected to be returned to.

ecologically sustainable development means the effective integration of economic and environmental considerations in decision-making processes achievable through implementation of the following principles: (a) the precautionary principle; (b) the inter-generational equity principle; (c) conservation of biological diversity and ecological integrity; (d) improved valuation and pricing of environmental resources. fiscal risks include the following: (a) risks from the level of the Territory’s general government sector debt; (b) commercial risks from ownership of corporations and public enterprises; (c) risks from changes in the structure of the Territory’s tax base; (d) risks from management of the Territory’s assets and liabilities. inter-generational equity principle means that the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations. precautionary principle means that, if there is a threat of serious or irreversible environmental damage, a lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation.

principles of responsible fiscal management means the following principles: (a) ensuring that the total liabilities of the Territory are at prudent levels to provide a buffer against factors that may impact adversely on the level of total Territory liabilities in the future, and ensuring that, until prudent levels have been achieved, the total operating expenses of the Territory in each financial year are less than its operating income levels in the same financial year; (b) when prudent levels of total Territory liabilities have been achieved, maintaining the levels by ensuring that, on average, over a reasonable period of time, the total operating expenses of the Territory do not exceed its operating income levels; (c) achieving and maintaining levels of Territory net worth to provide a buffer against factors that may impact adversely on levels of Territory net worth in the future; (d) managing prudently the fiscal risks of the Territory; (e) pursuing spending and taxing policies that are consistent with a reasonable degree of stability and predictability in the level of the tax burden; (f) giving full, accurate and timely disclosure of financial information about the activities of the government and its agencies.

11A Financial policy objectives and strategies statement (1) The purposes of a financial policy objectives and strategies statement included in a proposed budget under section 11 (1) (a) are— (a) to make transparent the government’s financial strategies; and (b) to establish a benchmark for evaluating the government’s conduct of financial policy.

(2) The statement must be based on the principles of responsible fiscal management. (3) The statement must— (a) state the government’s long-term financial objectives within which financial policy for the financial year and the next 3 financial years will be framed; and (b) explain the broad strategic priorities on which the budget is based; and (c) state the key financial measures that the government has identified as being important and against which financial policy will be set and assessed; and (d) state, for the financial year and the next 3 financial years— (i) the government’s short-term financial objectives; and (ii) the targets for each stated key financial measure; and (e) explain how the financial objectives and strategic priorities mentioned in paragraphs (a), (b) and (d) relate to the principles of responsible fiscal management; and (f) state the reasons for any changes from the previous financial policy objectives and strategies statement. principles of responsible fiscal management—see section 11 (7).

12 Directorate budgets (1) A proposed budget for a directorate for a financial year presented to the Legislative Assembly under section 10 (b) must include—

(b) a statement that sets out— (i) the outputs and classes of outputs it is proposed the directorate should provide during the year; and (ii) the performance criteria to be met by the directorate in providing the outputs; and (iii) for each output and class of output mentioned in subparagraph (i)— (A) the proposed budget expense and proposed appropriation for the financial year; and (B) the estimated expense and appropriation for the previous financial year; and (c) if, during the year, the directorate is to be given a capital injection that must be repaid—a statement that— (i) states that the capital injection is a capital injection; and which it must be repaid. (2) Subsection (1) (b) does not apply to— (3) A proposed budget must be in a form that facilitates a comparison between— (a) the proposed budget for the directorate; and (b) the budget for the directorate for the previous financial year; and (c) the estimated results for the directorate for the previous financial

(4) A proposed budget must also include, for the financial statements mentioned in subsection (1) (a), budget estimates for each of the next 12AA Territory authority budgets A proposed budget presented to the Legislative Assembly under section 10 (c) for a territory authority for a financial year is the statement of intent under section 61 (Territory authority statements of intent) for the authority for the financial year.

12A Territory-owned corporation budgets (1) A proposed budget presented to the Legislative Assembly under section 10 (c) for a territory-owned corporation for a financial year must include— (b) for a prescribed territory-owned corporation—a statement that sets out— (i) the outputs and classes of outputs it is proposed that the territory-owned corporation should provide during the (ii) the performance criteria to be met by the territory-owned corporation in providing the outputs; and (iii) for each output and class of output mentioned in subparagraph (i)— (A) the proposed budget expense and proposed appropriation for the financial year; and (B) the estimated expense and appropriation for the previous financial year; and

(c) for a territory-owned corporation that, during the year, is to be given a capital injection that must be repaid—a statement that— (i) states that the capital injection is an injection that must be repaid; and which it must be repaid. (2) A proposed budget must be in a form that facilitates a comparison between— (a) the proposed budget for the territory-owned corporation; and (b) the budget for the territory-owned corporation for the previous (c) the estimated results for the territory-owned corporation for the previous financial year. (3) A proposed budget must also include, for the financial statements mentioned in subsection (1) (a), budget estimates for each of the next

13 Supplementary budget papers (1) This section applies if the Treasurer presents a bill for an Appropriation Act relating to a financial year to the Legislative Assembly, other than— (a) the bill for the first Appropriation Act relating to the year; or (b) the bill for the first Appropriation Act for the appropriation for the Office of the Legislative Assembly relating to the year. (2) The Treasurer must also present supplementary budget papers to the Assembly.

(3) The supplementary budget papers must, for each territory entity for which an appropriation is provided by the bill (an affected entity)— (a) state, for each purpose mentioned in section 8 that applies to the affected entity— (i) the amount of the appropriation provided in the first Appropriation Act; and (ii) the variations (if any) previously made to the appropriation under this Act; and (iii) the amount of the appropriation provided by the bill; and (iv) the total amount appropriated for the entity for the financial (b) include a budgeted financial statement for each affected entity that— (i) includes details of the impact on the budget of the affected entity of all variations to the appropriation that happened until the last day when it was practicable to provide for it in the relevant supplementary Appropriation Bill before the bill was introduced into the Legislative Assembly; and (ii) may show the impact of variations other than variations resulting from additional appropriations. Example—par (b) (ii) the impact of revised economic forecasts

13A Amendment of budgets for supplementary appropriation (1) If an appropriation is made for a territory entity by an Appropriation Act other than the first Appropriation Act for it for a financial year, the budget for the territory entity is amended in accordance with— (a) the supplementary budget papers presented to the Legislative Assembly under section 13 (1) in relation to the bill for the Act by which the appropriation was made; and

(b) any statement presented to the Legislative Assembly under section 13 (5) (b) in relation to the bill. budget, for the territory entity, means the budget for the territory entity for the financial year presented to the Legislative Assembly under section 10 (b) or (c) (Budget papers) and, if the budget has been amended under this Act, the budget as amended.

14 Transfer of funds between appropriations writing, direct that appropriations made by an Appropriation Act be varied by transfers of funds between the appropriations. (2) A transfer of funds between appropriations under this section must not cause an appropriation from which funds are transferred to be reduced by more than 3%. (3) The Treasurer must attach a copy of the direction to the next financial (4) Subsection (1) does not apply to a superannuation appropriation. appropriation means an appropriation made by an Appropriation Act in a financial year or, if the appropriation is amended during the financial year, the appropriation as amended.

14A Transfer of funds from capital injection appropriation to other appropriations writing, direct that an appropriation for capital injection for an entity be varied by a transfer of funds from that appropriation to an appropriation for— (a) controlled recurrent payments for the entity; or (b) payments to be made on behalf of the Territory for the entity. (2) If the transfer would cause the appropriation for the capital injection to be reduced by— (a) up to 5% or $500 000, whichever is the greater—the Treasurer presented to the Legislative Assembly; or (b) more than 5% or $500 000, whichever is the greater—the direction is a disallowable instrument. appropriation for capital injection means an appropriation for capital injection made by an Appropriation Act in a financial year or, if the appropriation is amended during the financial year, the appropriation as amended.

14B Transfer of funds from other appropriations to capital injection appropriation writing, direct that an appropriation for controlled recurrent payments or payments to be made on behalf of the Territory for an entity be varied by a transfer of funds from those appropriations to an appropriation for capital injection for the entity.

(2) The Treasurer must attach a copy of the direction to the next financial appropriation for controlled recurrent payments means an appropriation for controlled recurrent payments made by an Appropriation Act in a financial year or, if the appropriation is amended during the financial year, the appropriation as amended. appropriation for payments to be made on behalf of the Territory means an appropriation for payments to be made on behalf of the Territory made by an Appropriation Act in a financial year or, if the appropriation is amended during the financial year, the appropriation as amended.

15A Reclassification of certain appropriations (1) If an appropriation has been classified by the Act by which it was made as an appropriation for payments to be made by a directorate on behalf of the Territory, the Treasurer may, if the Treasurer is satisfied that the appropriation should be classified as an appropriation for controlled recurrent payments to be provided to the directorate, in writing, direct that the classification of the appropriation be changed accordingly. (2) If an appropriation has been classified by the Act by which it was made as an appropriation for controlled recurrent payments to be provided to a directorate, the Treasurer may, if the Treasurer is satisfied that the appropriation should be classified as an appropriation for payments to be made by the directorate on behalf of the Territory, in writing, direct that the classification of the appropriation be changed accordingly.

(3) If the Treasurer gives a direction under subsection (1) or (2), the Treasurer must attach a copy of the direction to the next financial

16 Transfer of functions to another entity (1) This section applies if the responsibility for a service or function for which an appropriation is made in an Appropriation Act for a financial year is or has been transferred from the territory entity to which the appropriation is made to another territory entity. (2) The Treasurer may, in writing, direct that the appropriation does not lapse but may, in accordance with the direction, be issued to, or applied by, the other territory entity for the service or function. (3) If the Treasurer gives a direction under subsection (2), the Treasurer (4) This section does not apply to a superannuation appropriation.

16A Appropriation for accrued employee entitlements (a) an employee entitlement exists in relation to a territory entity in a financial year; and (b) the total amount of employee entitlements paid, or required to be paid, by the territory entity in the financial year exceeds the amount appropriated for the territory entity in relation to employee entitlements for the financial year. (2) The Treasurer may, in writing, authorise an appropriation for the territory entity for the amount that the total amount paid, or required to be paid, in the financial year exceeds the amount appropriated for the territory entity for the financial year.

(3) If the Treasurer authorises an appropriation under this section, the Treasurer must attach a copy of the authorisation to the next financial

16B Rollover of undisbursed appropriation (1) This section applies to an amount of appropriation if, at the end of the financial year in which the appropriation is made, the amount is not disbursed to the territory entity to which it is appropriated. (2) The Treasurer may, in writing, authorise the amount to be disbursed in the following financial year to— (a) the territory entity; or (b) if responsibility for a service or function for which the appropriation is made is transferred from the territory entity to another territory entity—the other territory entity. (3) The Treasurer may give the authorisation in the financial year in which the appropriation is made, or in the following financial year. (4) The authorisation must identify— (a) the territory entity to which the amount is to be disbursed; and (b) the appropriation type; and (c) the amount authorised to be disbursed; and (d) the purpose for which the amount may be disbursed. (5) If the Treasurer authorises an amount to be disbursed under this section— (a) the amount is taken to be an amount of appropriation for the financial year in which the amount is authorised to be disbursed; and

(b) the amount is in addition to the appropriation to the territory entity for that financial year. (6) If the Treasurer authorises an amount to be disbursed under this section, the Treasurer must attach a copy of the authorisation to the next financial statement presented to the Legislative Assembly.

17 Variation of appropriations for Commonwealth grants (1) This section applies to an appropriation that is declared by the Act by which it is made to be an appropriation to which this section applies. (2) If— (a) an appropriation to which this section applies is to be funded in whole or in part by a payment made to the Territory by the Commonwealth for a nominated purpose; and (b) an estimate of the level of the funding to be provided to the Territory by the Commonwealth for that purpose is contained in the budget papers presented to the Legislative Assembly in conjunction with the bill for the Act by which the appropriation was made; and (c) the level of funding provided to the Territory by the Commonwealth for that purpose for the financial year for which the appropriation was made is greater than the level of funding specified in those budget papers; the Treasurer may, in writing, direct that the appropriation be increased by an amount not exceeding the difference between the level of funding specified in the budget papers and the level of funding provided by the Commonwealth. (3) The Treasurer may give the direction— (a) in the financial year in which the Commonwealth provides the funding to the Territory; or

(b) in the following financial year. (4) If the Treasurer gives the direction under subsection (3) (a), the direction may also state the financial year in which the appropriation may be disbursed to a territory entity. (5) If the responsibility for a service or function for which the appropriation is made is transferred from the territory entity to which the appropriation is made to another territory entity, the Treasurer may also direct that the appropriation be disbursed to the other territory entity. (6) If the Treasurer gives a direction under this section— (a) the amount is taken to be an amount of appropriation for the financial year in which the amount is authorised to be disbursed; and (b) the amount is in addition to the appropriation to the territory entity for that financial year. (7) If the Treasurer gives a direction under this section, the Treasurer

17A Variations of appropriations for certain payments to Commonwealth (1) This section applies to an appropriation that is declared by the Act by which it is made to be an appropriation to which the section applies. (2) If— (a) an appropriation to which this section applies is made completely or partially for a payment required to be made to the Commonwealth for the provision of a service; and

Section (b) an estimate of the amount of the payment is contained in the budget papers presented to the Legislative Assembly in conjunction with the bill for the Act by which the appropriation is made; and (c) the amount of the payment exceeds the amount of the estimate; the Treasurer may, in writing, direct that the appropriation be increased by an amount not more than the difference between the amount of the estimate and the amount of the payment. (3) If the Treasurer gives a direction under subsection (2), the Treasurer Subdivision 2.1.2 Treasurer’s advances

18 Treasurer’s advance (1) The Treasurer may, in writing, authorise an appropriation (a Treasurer’s advance) for a payment if— (a) the Treasurer is satisfied that— (i) there is an immediate requirement for the payment; and (ii) the payment is not provided for, or is insufficiently provided for, by an appropriation because— (A) there was an erroneous omission or understatement in an appropriation; or (B) the payment was unforeseen until after the last day when it was practicable to provide for it in the relevant Appropriation Bill before the bill was introduced into the Legislative Assembly; and

(b) for a payment by an officer of the Assembly—the Speaker, after consulting with the relevant Assembly committee, has advised the Treasurer that an additional appropriation is needed for the payment, stating the reasons for the additional appropriation; and (c) the total Treasurer’s advances authorised as Treasurer’s advances in a financial year do not exceed the amount appropriated for that year for Treasurer’s advances. (2) The amount appropriated for Treasurer’s advances must not exceed— (a) for the 2021-22 financial year—5% of the total amount appropriated by all Appropriation Acts for the year; or (b) for any other financial year—1% of the total amount appropriated by all Appropriation Acts for the year. (3) If, by the end of the financial year in which a Treasurer’s advance is authorised, the Treasurer’s advance is not fully disbursed to the entity to which it is appropriated, the undisbursed amount of the Treasurer’s advance lapses and is not available to be disbursed to the entity in the following financial year. relevant Appropriation Bill, for a payment, means— (a) the bill for the first Appropriation Act for the financial year when the payment is to happen; or (b) the bill for the first Appropriation Act for the appropriation for the Office of the Legislative Assembly or an officer of the Assembly for the financial year when the payment is to happen. Note An appropriation for an officer of the Assembly must be contained in an Appropriation Act for an appropriation for the Office of the Legislative Assembly (see s 8 (4)).

18A Treasurer’s advance—payment pending supplementary appropriation (a) in a financial year, the Treasurer authorises a Treasurer’s advance for a payment; and (b) the authorisation states that the payment may be provided for in an Appropriation Act other than the first Appropriation Act (a supplementary appropriation Act) in the financial year. (2) If a supplementary appropriation Act is passed for the payment— (a) the Treasurer’s advance ceases; and (b) the amount of the Treasurer’s advance is taken for all purposes to have been paid out of money appropriated by that Act; and (c) the amount appropriated for section 18 (Treasurer’s advance) for the financial year is taken to be restored by the amount of the Treasurer’s advance. (3) If a supplementary appropriation Act is not passed for the payment, the payment continues to be authorised from the appropriation for section 18 for the financial year.

18B Treasurer’s advance—reduction of amounts (1) This section applies if, in a financial year— (a) the Treasurer has authorised a Treasurer’s advance for an entity; and (b) the Treasurer’s advance has not been fully disbursed to the (c) the Treasurer is satisfied that the undisbursed amount is no longer required by the entity.

(2) The Treasurer may, in writing, authorise a reduction of the amount of the Treasurer’s advance to the entity to the amount actually disbursed to the entity. (3) If the Treasurer authorises a reduction, the amount appropriated for section 18 (Treasurer’s advance) for the financial year is taken to be restored by the amount of the reduction.

18C Assembly to be told about Treasurer’s advance (1) This section applies if the Treasurer authorises— (a) a Treasurer’s advance; or (b) a reduction of an amount of Treasurer’s advance under section 18B (2). (2) If the Treasurer authorises a Treasurer’s advance, the Treasurer must within 5 business days after authorising the advance give the Speaker a copy of the authorisation. (3) The Speaker must arrange for a copy of the authorisation to be given to each member of the Legislative Assembly as soon as practicable after it is received by the Speaker. (4) If an authorisation is given, the Treasurer must attach to the next financial statement presented to the Legislative Assembly— (a) a copy of the authorisation; and (b) a reconciliation stating the following: (i) the total amount appropriated for section 18 (Treasurer’s advance) in all Appropriation Acts for the financial year; (ii) the total amount of Treasurer’s advance authorised previously in the financial year under section 18 (1);

(iii) the total payments for temporary advances taken to have been authorised previously in the financial year under section 7A (5) (d) (Temporary advance for new purpose or new entity); (iv) the total amount of payments restored previously in the financial year under section 18A (2) (c); (v) the total reduction of the amounts of Treasurer’s advance previously authorised in the financial year under section 18B (2); (vi) the amount authorised in the authorisation; (vii) the amount of appropriation for section 18 that remains for (5) In this section— Speaker includes— (a) if the Speaker is unavailable—the Deputy Speaker; and (b) if both the Speaker and Deputy Speaker are unavailable—the clerk of the Legislative Assembly. unavailable— (a) the Speaker is unavailable if— (i) the Speaker is absent from duty; or (ii) there is a vacancy in the office of the Speaker; or (iii) the Speaker cannot for any reason exercise the functions of the Speaker; and (b) the Deputy Speaker is unavailable if— (i) the Deputy Speaker is absent from duty; or

(ii) there is a vacancy in the office of the Deputy Speaker; or (iii) the Deputy Speaker cannot for any reason exercise the functions of the Deputy Speaker. Subdivision 2.1.3 Capital works reserve

18D Capital works reserve—appropriation (1) An Appropriation Act may make an appropriation for a capital works reserve. (2) The amount appropriated for the capital works reserve for a financial year must not exceed 20% of the total amount appropriated for the capital works program by all Appropriation Acts for the financial (3) If an amount is appropriated for a capital works reserve for a financial year and the amount is not fully disbursed by the end of the financial year, the undisbursed amount lapses and is not available to be disbursed in the following financial year.

18E Capital works reserve—authorising payments from reserve (1) This section applies if an amount has been appropriated under an Appropriation Act for a capital works reserve for a financial year. (2) The Treasurer may, in writing, authorise a payment for an entity’s approved capital works project (a capital works advance) to be made from the capital works reserve to the entity if— (a) the Treasurer is satisfied that— (i) there is an immediate requirement for the capital works advance to be made to the entity; and

(ii) the capital works advance is not provided for, or is insufficiently provided for, by the appropriation to the entity for the capital works program for the financial year; and (b) the capital works advance would not result in the total amount for the project exceeding the total amount budgeted for the project; and (c) the total amount of capital works advances authorised in the financial year does not exceed the amount appropriated for the capital works reserve in the year. approved capital works project means a capital works project mentioned in the capital works program. capital works program means the capital works program mentioned in the budget papers.

18F Capital works reserve—reducing partially unused payments (1) This section applies if, in a financial year— (a) the Treasurer has authorised a capital works advance for an (b) the capital works advance has not been fully disbursed to the (c) the Treasurer is satisfied that the undisbursed amount is no longer required by the entity. (2) The Treasurer may, in writing, authorise a reduction of the amount of the capital works advance to the entity to the amount actually disbursed to the entity.

(3) If the Treasurer authorises a reduction, the capital works reserve for the financial year is taken to be restored by the amount of the reduction.

18G Capital works reserve—Treasurer must notify Assembly (1) This section applies if the Treasurer authorises a capital works advance under section 18E. (2) The Treasurer must within 5 business days after authorising the advance give the Speaker a copy of the authorisation. (3) The Speaker must arrange for a copy of the authorisation to be given to each member of the Legislative Assembly as soon as practicable after it is received by the Speaker. (4) The Treasurer must attach to the next financial statement presented to the Legislative Assembly— (a) a copy of the authorisation; and (b) a reconciliation stating the following: (i) the total amount appropriated for the capital works reserve for the financial year under section 18D; (ii) the total amount of capital works advances authorised in the financial year under section 18E; (iii) the total amount of reduction of capital works advances in the financial year under section 18F; (iv) the amount authorised in the authorisation; (v) the amount remaining in the capital works reserve for the Note 1 For the presentation of financial statements, see s 26. Note 2 The Treasurer must also prepare a capital works report at least every 6 months (see s 30F).

(5) In this section— Speaker includes— (a) if the Speaker is unavailable—the Deputy Speaker; and (b) if both the Speaker and Deputy Speaker are unavailable—the clerk of the Legislative Assembly. unavailable— (a) the Speaker is unavailable if— (i) the Speaker is absent from duty; or (ii) there is a vacancy in the office of the Speaker; or (iii) the Speaker cannot for any reason exercise the functions of the Speaker; and (b) the Deputy Speaker is unavailable if— (i) the Deputy Speaker is absent from duty; or (ii) there is a vacancy in the office of the Deputy Speaker; or (iii) the Deputy Speaker cannot for any reason exercise the functions of the Deputy Speaker. Subdivision 2.1.4 Appropriations and budgets—other matters

19 Refunds of payments made without liability (1) If a payment is made to the Territory in purported discharge of a liability that does not exist, the amount paid may be refunded to the person by whom the payment was made whether or not there is an appropriation available for that purpose.

(2) If a payment made to the Territory to discharge a liability exceeds the amount of the liability, the amount by which the payment exceeds the liability may be refunded to the person by whom the payment was made whether or not there is an appropriation available for that purpose. (3) If— (a) a person has paid an amount to the Territory for tax claimed by the Territory to be owing from the person; and (b) a court or tribunal of competent jurisdiction subsequently finds that the person was not liable for that tax or was liable for an amount of tax less than the amount paid; the amount paid, or the amount by which the payment exceeds the liability, may be refunded to the person who made the payment whether or not there is an appropriation available for that purpose.

19A Payments for Territory GST liabilities Payments may be made to the Commonwealth for the GST liabilities of the Territory whether or not there is an appropriation for the purpose. 19AA Payments for Territory GST administration costs Despite section 6, payments may be made to the Commonwealth for GST administration costs payable by the Territory (including by way of deduction by the Commonwealth from GST revenue payable to the Territory) whether or not there is an appropriation for the purpose.

19B Authorisation of appropriation for certain Commonwealth grants (a) funds have been provided to the Territory by the Commonwealth under an agreement that specifies how the funds may be applied; and (b) no appropriation has been made in relation to the funds. (2) Despite section 6 (Necessity for appropriation), the Treasurer may, in writing, authorise an appropriation to a territory entity for payments by the territory entity in accordance with the agreement. (3) The Treasurer may— (a) give the authorisation— (i) in the financial year in which the Commonwealth provides the funds to the Territory; or (ii) in the following financial year; and (b) for an authorisation under paragraph (a) (i)—state in the authorisation the financial year in which the appropriation under subsection (2) may be disbursed to the territory entity. (4) For an authorisation under this section, an appropriation under subsection (2)— (a) is taken to be an amount of appropriation for the financial year in which the appropriation is authorised to be disbursed; and (b) is in addition to the appropriation to the territory entity for that (5) If the Treasurer gives an authorisation under this section, the Treasurer must attach a copy of the authorisation to the next financial

19C Amendment of capital injection conditions (1) This section applies in relation to the conditions of a capital injection set out in a statement included in a proposed budget for a financial year for— (a) a directorate under section 12 (1) (c) (ii); or (b) a territory-owned corporation under section 12A (1) (c) (ii); or (c) a territory authority in accordance with section 61 (5) (e). (2) The Treasurer may amend the conditions. (3) An amendment must state the Treasurer’s reasons for the amendment. (4) An amendment is a notifiable instrument.

19D Amendment of performance criteria (1) This section applies in relation to the performance criteria set out in a statement included in a proposed budget for a financial year for— (a) a directorate under section 12 (1) (b); or (b) a prescribed territory-owned corporation under section 12A (1) (b) (ii); or (c) a prescribed territory authority in accordance with section 61 (6) (b). (2) The performance criteria may be amended by— (a) the responsible Minister for the territory entity; and (b) the Treasurer. (3) Without limiting subsection (2) the performance criteria may be amended if— (a) the appropriations for the territory entity are varied under— (i) section 14 (Transfer of funds between appropriations); or

(ii) section 14A (Transfer of funds from capital injection appropriation to other appropriations); or (iii) section 14B (Transfer of funds from other appropriations to capital injection appropriation); or (iv) section 17 (Variation of appropriations for Commonwealth grants); or (b) funds are transferred to or from the territory entity under section 16 (Transfer of functions to another entity); or (c) funds are— (i) taken to be authorised from section 18 (Treasurer’s advance) under section 7A (5) (d) (Temporary advance for a new purpose or new entity) for a temporary advance to the territory entity; or (ii) given to the territory entity under section 18; or (iii) reduced under section 18B (Treasurer’s advance— reduction of amounts); or (d) funds mentioned in section 19B (Authorisation of appropriation for certain Commonwealth grants) are given to the territory (e) changes happen in the priorities of the territory entity; or (f) the responsible Minister and the Treasurer are satisfied that other performance criteria should be adopted for controlled recurrent payments to be provided to the territory entity. (4) An amendment of the performance criteria must be made in a way that— (a) for a directorate—the budget as amended will comply with section 12 (3); and (b) for a prescribed territory-owned corporation—the budget as amended will comply with section 12A (2); and

(c) for a prescribed territory authority—the budget as amended will comply with section 61 (4). (5) An amendment of the performance criteria is a notifiable instrument. budget, for the territory entity, means the budget for the territory entity for the financial year presented to the Legislative Assembly under section 10 (b) or (c) (Budget papers) and, if the budget has been amended under this Act, the budget as amended. prescribed territory authority means a territory authority prescribed for section 61 (6). prescribed territory-owned corporation means a territory-owned corporation prescribed for section 12A (1) (b).

20 Recommended appropriation for Office of the Legislative Assembly Before the beginning of a financial year, the Speaker must— (a) after consultation with the relevant Assembly committee, advise the Treasurer of the appropriation that the Speaker considers should be made for the Office of the Legislative Assembly for the financial year (the recommended appropriation); and (b) give the Treasurer a draft budget for the Office of the Legislative Assembly for the financial year that contains the information mentioned in section 12 that applies to the office. 20AA Appropriation for Office of the Legislative Assembly (a) the Treasurer presents a bill for an Appropriation Act for the appropriation for the Office of the Legislative Assembly relating to a financial year in the Legislative Assembly; and

(b) the appropriation is less than the recommended appropriation for (2) Immediately after presenting the bill, the Treasurer must present to the Legislative Assembly a statement of reasons for departing from the recommended appropriation. recommended appropriation—see section 20. 20AB Recommended appropriation for officers of the Assembly Before the beginning of a financial year, the Speaker must for an officer of the Assembly— (a) after consultation with the officer and the relevant Assembly committee, advise the Treasurer of the appropriation that the Speaker considers should be made for the officer for the financial year (the recommended appropriation); and (b) present the recommended appropriation to the Assembly; and (c) give the Treasurer a draft budget for the officer for the financial year that contains the information mentioned in section 12 that applies to the officer. 20AC Appropriation for officers of the Assembly (a) the Treasurer presents a bill for an Appropriation Act for the appropriation for an officer of the Assembly relating to a financial year in the Legislative Assembly; and (b) the appropriation is less than the recommended appropriation for the office for the financial year. (2) Immediately after presenting the bill, the Treasurer must present to the Legislative Assembly a statement of reasons for departing from the recommended appropriation.

Budget reviews and pre-election updates Division 2.2 recommended appropriation—see section 20AB.

Division 2.2 Budget reviews and pre-election updates

20A Budget review (1) The Treasurer must prepare a budget review for each financial year. (2) The Treasurer must present the budget review for a financial year to the Legislative Assembly not later than 15 February in the financial Note This is the same day as financial statements for the 2nd quarter of the financial year are required to be presented under s 26 (Periodic financial statements). (3) However, if a sitting day does not fall in that year on or before

15 February, the Treasurer must give copies of the budget review to each member of the Legislative Assembly on or before that day.

20B Purpose and contents of budget review (1) The purpose of the budget review for a financial year is to give updated information to allow the assessment of the government’s financial performance against the financial policy objectives and strategies set out in the financial policy objectives and strategies statement for the Territory budget for the financial year. (2) The budget review for a financial year must be based on the financial policy objectives and strategies statement for the Territory budget for (3) The budget review for a financial year must— (a) include updated financial statements required under the financial management guidelines for the general government sector for the financial year; and

(b) include whole-of-year results for the previous financial year, the budget for the financial year, the estimated financial position of the Territory at the end of the financial year and updated budget estimates for each of the next 3 financial years; and (c) include a review of the financial policy objectives and strategies statement included in the budget for the financial year that satisfies the requirements of section 11A (2) and (3); and (d) state the date as at when the review was done. (4) However, if particular information required to be included in the budget review is unchanged from information set out in full in the budget for the Territory under section 11 (1) for the financial year, the review may instead summarise the information and state that it is unchanged from that set out in the budget. (5) For subsection (3): budget, for a financial year, means the budget for the year presented to the Legislative Assembly under section 10 (a) (Budget papers) and, if that budget has been amended under this Act, the budget as amended.

20C Pre-election budget update (1) At least 30 days before the polling day for an ordinary election, the under treasurer must prepare a pre-election budget update and give it to the parliamentary counsel for notification. (2) At least 20 days before the polling day for an election mentioned in the Self-Government Act, section 16 (Dissolution of Assembly by Governor-General) or section 48 (Resolution of no confidence in Chief Minister), the under treasurer must prepare a pre-election budget update and give it to the parliamentary counsel for notification. (3) A pre-election budget update is a notifiable instrument.

Budget reviews and pre-election updates Division 2.2 ordinary election—see the Electoral Act 1992, dictionary. polling day—see the Electoral Act 1992, dictionary.

20D Purpose and contents of pre-election budget update (1) The purpose of a pre-election budget update for an election is— (a) to allow the assessment of the government’s financial performance against the financial policy objectives and strategies set out in the latest financial policy objectives and strategies statement; and (b) to give the electorate an accurate picture of the Territory’s financial position before the election. (2) A pre-election budget update must be based on the latest financial policy objectives and strategies statement. (3) A pre-election budget update for an election must include— (a) updated financial statements required under the financial management guidelines for the financial year in which the election is to be held; and (b) updated budget estimates for the general government sector, the public trading enterprise sector and the Territory for that financial year and for each of the next 3 financial years; and (c) a statement of the economic or other assumptions used in preparing the updated financial statements and budget estimates; and (d) a statement about the sensitivity of the updated financial statements and budget estimates to changes in the economic or other assumptions; and

(e) a statement of the risks, quantified if possible, that may affect the economic or other assumptions, including— (i) contingent liabilities; and (ii) publicly announced government commitments that are not yet included in the updated financial statements and budget estimates. (4) Information in the pre-election budget update must— (a) take into account government decisions and other circumstances that may have material effect on the financial statements and budget estimates; and (b) state the date as at when the updating was done. (5) However, if particular information required to be included in the pre- election budget update is unchanged from information set out in full in the latest financial statements, the budget estimates mentioned in section 11 (Territory budgets) or budget review, the pre-election budget update may instead summarise the information and state that it is unchanged from that set out in the financial statements, budget estimates or budget review.

Financial reports of the Territory Division 3.1

21 Meaning of the Territory in div 3.1 In this division, a reference to the Territory includes a reference to all territory authorities and all territory-owned corporations.

22 Annual financial statements of the Territory (1) The under treasurer must, as soon as practicable after the end of a financial year, prepare annual financial statements for the Territory for that year. (2) The statements must be prepared in accordance with accounting standards and include— (b) a statement of the accounting policies adopted by the Territory; and (c) the other statements that are necessary to fairly reflect the financial operations of the Territory during the year and its financial position at the end of the year.

23 Responsibility for annual financial statements (1) An annual financial statement of the Territory must have a statement of responsibility attached to it. (2) The statement of responsibility must include— (a) a statement— (i) signed by the Treasurer; and

(ii) that, in the Treasurer’s opinion, the financial statements fairly reflect— (A) the financial operations of the Territory during the year to which they relate; and (B) the financial position of the Territory at the end of the (b) a statement— (i) signed by the under treasurer; and (ii) stating that the under treasurer is satisfied the financial statements have been prepared in accordance with accounting standards. auditor-general gives the Treasurer an audit opinion for the financial statement in accordance with section 24.

24 Audit of annual financial statements (1) The under treasurer must give the auditor-general the annual financial statements of the Territory for a financial year in sufficient time for the auditor-general to give an audit opinion about the statements within 4 months after the end of the financial year. (2) The auditor-general must give the Treasurer an audit opinion about the annual financial statements within 4 months after the end of the (3) Despite subsections (1) and (2), if an ordinary election is to be held in the year after the end of the financial year— (a) the under treasurer must give the auditor-general the annual financial statements of the Territory for the financial year in sufficient time for the auditor-general to give an audit opinion about the statements within 3 months after the end of the

Financial reports of the Territory Division 3.1 (b) the auditor-general must give an audit opinion to the Treasurer within 3 months after the end of the financial year. (4) Also, despite subsections (1) and (2), for the 2020-21 financial year— (a) the under treasurer must give the auditor-general the annual financial statements of the Territory for the financial year in sufficient time for the auditor-general to give an audit opinion about the statements within 5 months after the end of the (b) the auditor-general must give an audit opinion to the Treasurer within 5 months after the end of the financial year. ordinary election—see the Electoral Act 1992, dictionary.

25 Presentation of annual financial statements to Legislative Assembly (1) If the Treasurer receives, under section 24 (2), an audit opinion about annual financial statements, the Treasurer must present to the Legislative Assembly, within 3 sitting days after receiving the opinion— (a) a copy of the annual financial statements; and (b) a copy of the audit opinion. (2) If the Treasurer receives, under section 24 (3) (b), an audit opinion about annual statements, the Treasurer must give to each member of the Legislative Assembly, within 7 days after receiving the opinion— (a) a copy of the annual financial statements; and (b) a copy of the audit opinion.

26 Periodic financial statements (1) Within 45 days after the end of each quarter of a financial year (other than the 2019-20 and 2020-21 financial years), the Treasurer must prepare financial statements for— (a) the quarter; and (b) the period from the beginning of the financial year until the end of the quarter. (2) Within 60 days after the end of each quarter of the 2019-20 and 2020-21 financial years, the Treasurer must prepare financial statements for— (a) the quarter; and (b) the period from the beginning of the financial year until the end of the quarter. (3) The statements must— (a) be prepared in accordance with the financial management guidelines; and (b) include a summary of any instruments attached to statements. Note Instruments made under s 7A, s 14, s 14A, s 14B, s 15A, s 16, s 16A, s 16B, s 17, s 17A, s 18C, s 18G and s 19B may be attached to the financial statements. (4) The Treasurer must present copies of the statements prepared under subsection (1) or subsection (2) to the Legislative Assembly on the first sitting day after they are prepared. (5) Subsection (6) applies if— (a) for financial statements prepared under subsection (1)—the first sitting day mentioned in subsection (4) does not fall within 45 days after the end of the relevant quarter; or

(b) for financial statements prepared under subsection (2)—the first sitting day mentioned in subsection (4) does not fall within 60 days after the end of the relevant quarter. (6) The Treasurer must give copies of the financial statements to each member of the Legislative Assembly— (a) for statements prepared under subsection (1)—within the 45 days; or (b) for statements prepared under subsection (2)—within the 60 days.

Division 3.2 Financial reports and performance statements of directorates

27 Annual financial statements of directorates (1) A directorate must, as soon as practicable after the end of each financial year, prepare annual financial statements relating to its operations during the year. (2) The annual financial statements of a directorate must be prepared in accordance with accounting standards and in a form that facilitates a comparison between the financial operations of the directorate during the year and the estimates of those operations contained in the budget for the directorate for the financial year. (3) The annual financial statements must include— (b) if a change was made during the year to the conditions of a capital injection set out under section 12 (1) (c) (ii) (Directorate budgets) in a statement included in a proposed budget for the directorate for a financial year—a statement of the change and the reasons for it; and

Division 3.2 Financial reports and performance statements of directorates (c) a statement of the accounting policies adopted by the directorate; and (d) any other statements necessary to fairly reflect the financial operations of the directorate during the year and its financial position at the end of the year. budget, for a directorate for a financial year, means the budget for the directorate for the year presented to the Legislative Assembly under section 10 (b) (Budget papers).

28 Responsibility for annual financial statements of directorates (1) An annual financial statement of a directorate must have a statement of responsibility attached to it. (a) state that, in the responsible director-general’s opinion, the annual financial statements fairly reflect— (i) the financial operations of the directorate during the (ii) the financial position of the directorate at the end of the (b) be signed by the responsible director-general. auditor-general gives the responsible director-general an audit opinion for the financial statement in accordance with section 29.

29 Audit of financial statements of directorates (1) The responsible director-general of a directorate must give the auditor-general the financial statements of the directorate for a financial year as soon as practicable after the statements are prepared. (2) The auditor-general must give the responsible director-general an audit opinion about the financial statements as soon as practicable after the auditor-general receives them.

30 Directorate annual financial statements to be included in annual reports etc Act 2004 for a directorate for a financial year must include, or have attached to it— (a) the directorate’s annual financial statements for the year; and (b) the audit opinion under section 29 (2) about the financial statements.

30A Statements of performance of directorates directorate must prepare a statement of the performance of the directorate in providing each class of outputs set out in the directorate’s budget for the financial year and provided by it during the year. (2) The statement must— (a) compare the performance of the directorate in providing each class of the outputs with the forecast of the performance in the directorate’s budget for the year; and (b) give particulars of the extent to which the performance criteria set out in the budget for the provision of the outputs were met.

Division 3.2 Financial reports and performance statements of directorates (3) This section does not apply to— budget, for the directorate, means the budget for the directorate for the financial year presented to the Legislative Assembly under

30B Responsibility for directorate statements of performance (1) A statement of performance of a directorate must have a statement of responsibility attached to it. (a) state that, in the responsible director-general’s opinion, the statement of performance fairly reflects the performance of the directorate in providing each class of outputs set out in the directorate’s budget for the financial year during the financial (b) be signed by the responsible director-general. auditor-general gives the responsible director-general a report about the statement of performance in accordance with section 30C. budget, for the directorate, means the budget for the directorate for the financial year presented to the Legislative Assembly under

30C Scrutiny of directorate statements of performance (1) The responsible director-general of a directorate must give the auditor-general the directorate’s statement of performance for a financial year as soon as practicable after the statement is prepared. (2) The auditor-general must give the director-general a report about the statement of performance as soon as practicable after the auditor-general receives it. (3) The report must be prepared in accordance with the financial management guidelines.

30D Directorate statements of performance to be included in annual reports etc Act 2004 for a directorate for a financial year must include, or have attached to it— (a) the directorate’s statement of performance for the year; and (b) the auditor-general’s report under section 30C (2) about the statement of performance.

30E Half-yearly directorate performance reports (1) Within 45 days after 31 December in each financial year, each Minister must— (a) prepare a half-yearly performance report for each directorate for which the Minister is responsible; and (b) present the report to the Legislative Assembly. (2) The report must include— (a) a progress report on delivery of outputs; and (b) an explanation of any significant variations from performance criteria.

(3) If the report is not presented to the Legislative Assembly under subsection (1) within 45 days after 31 December, the Minister must make a copy of the report available to members of the Legislative Assembly within the 45-day period. (4) This section does not apply to—

30F Capital works report of Territory (1) The Treasurer must, at least once every 6 months, prepare a report about capital works for the Territory (a capital works report). (2) A capital works report must— (a) include a progress report on the delivery of the capital works program for the Territory during the period since the previous capital works report; and (b) include a statement of the expenditure on capital works for each directorate and territory authority for the financial year; and (c) for each major capital works project—include— (i) a statement of the expenditure on the project to date; and (ii) a statement of the expenditure on the project for the financial year to date; and (iii) a total budget for the project; and (iv) an annual budget for the project.

Capital works reports Division 3.3 (3) The Treasurer must— (a) present a copy of each capital works report to the Legislative Assembly on the first sitting day after the report is prepared; and (b) if the first sitting day is more than 60 days after the end of the period for which the report is prepared—give a copy of the report to each member of the Legislative Assembly within 60 days after the end of the period for which the report is prepared. (4) A regulation may prescribe a major capital works project. capital works includes works prescribed by regulation. expenditure includes expenditure funded by capital injection or feasibility expenditure funded by controlled recurrent payments.

Part 4 Financial management responsibilities of directors-general of directorates Part 4 Financial management responsibilities of directors-general of directorates

31 Responsibilities of directors-general of directorates (1) The responsible director-general of a directorate is accountable to the responsible Minister of the directorate for the efficient and effective financial management of the public resources for which the directorate is responsible. (2) The responsible director-general of a directorate must manage the directorate in a way that— (a) promotes the achievement of the purpose of the directorate; and (b) promotes the financial sustainability of the directorate; and (c) is not inconsistent with the policies of the government. (3) In making decisions for the purposes of subsections (1) and (2), the responsible director-general must take into account the effect of those decisions on public resources generally. (4) Without limiting subsections (1), (2) and (3), the responsible director-general of a directorate is responsible, under the responsible Minister, for ensuring— (a) that money spent by the directorate is spent in accordance with appropriations made for the directorate (including appropriations available under section 34B); and (b) that, as far as practicable, the operations of the directorate for a financial year are consistent with, and comparable to, the budget for the directorate for the year; and

Financial management responsibilities of directors-general of directorates Part 4 (c) that the officers and employees of the directorate comply with this Act (including the financial management guidelines); and instruments made or in force under the Act, including any guideline (see Legislation Act, s 104). (d) that proper accounts and records are kept of the transactions and affairs of the directorate in accordance with accounting standards; and (e) that adequate control is maintained over the assets of the directorate and assets in the control of the directorate; and (f) that adequate control is maintained over the incurring of liabilities by the directorate. (5) A report prepared under the Annual Reports (Government Agencies) Act 2004 for a financial year by the responsible director-general of a directorate must include an explanation of material variations between the actual results of the directorate for the year and the budget for the directorate for the year. budget, for a directorate for a financial year, means the budget for the directorate for the year presented to the Legislative Assembly under public property means property, other than public money, that is owned or held by the Territory or held by a person on behalf of the public resources means public money or public property. Note Public money—see the dictionary.

Part 4 Financial management responsibilities of directors-general of directorates

31A Directors-general may enter into contracts etc (1) The responsible director-general of a directorate may— (a) enter into a contract or memorandum of understanding relating to the operations of the directorate; and (b) vary and administer the contract or memorandum of understanding. (2) In exercising powers under subsection (1), the responsible director-general must act in accordance with section 31 and any requirements prescribed by regulation for this section.

32 Agreement for the conduct of banking for Territory (1) The Treasurer may enter into an agreement with an authorised deposit-taking institution relating to the conduct of banking for the (2) An agreement must not be entered into unless it contains a provision to the effect that it may be terminated by the Territory at any time subject to the giving of written notice that specifies the date the termination is to take effect.

33 Territory banking account The Treasurer must open and maintain a banking account for the purposes of the Territory.

34 Directorate banking accounts (1) The responsible Minister or the responsible director-general may open 1 or more banking accounts for the purposes of the relevant (2) A directorate banking account must be maintained by the director-general. (3) A directorate banking account must not, without the Treasurer’s written approval, be opened or maintained otherwise than with an authorised deposit-taking institution with which an agreement is in force under section 32. (4) The responsible Minister or the responsible director-general of a directorate may close a directorate banking account of the directorate.

(5) If the responsible Minister or the responsible director-general of a directorate closes a directorate banking account under subsection (4), the Minister or director-general must transfer any money standing to the credit of the account to another directorate banking account of the directorate or to the territory banking account. (6) The Treasurer may, at any time, after consultation with the responsible Minister, close or suspend the operation of a directorate banking account. (7) A Minister or a director-general must not open or operate a directorate banking account otherwise than in accordance with this Act.

34A Transfer of directorate banking account (1) If, in the Treasurer’s opinion, it is desirable, because of changes in directorate responsibilities, to transfer a directorate banking account from a directorate to another directorate, the Treasurer may, in writing, direct the responsible director-general of the directorate that holds the account to arrange for it to be transferred to another directorate nominated in the direction. (2) A director-general who receives a direction under subsection (1) must comply with the direction. (3) A directorate banking account transferred in accordance with a direction under subsection (1) becomes a directorate banking account of the directorate to which it is transferred.

34B End of year balances of directorate banking accounts (1) If at the end of a financial year amounts appropriated for a directorate for that financial year are held in a directorate banking account, the amounts may be applied after the end of that financial year for the purposes for which they were appropriated. (2) If at the end of a financial year a directorate banking account has a debit balance, the director-general of the directorate must devise and implement a scheme to recoup the amount of the deficit.

35 Payments into banking accounts (1) All public money is the property of the Territory. (2) If public money is received by a person other than for the purpose of making a payment in the course of their duties, the person must take reasonable steps to safeguard the money until it is paid into a banking account in accordance with this section. (3) Money must be paid into a directorate banking account of a directorate if the money is— (a) money that may be disbursed to the directorate as a consequence of an appropriation; or (b) a receipt relating to the operations of the directorate; or (c) a receipt relating to the sale or disposal of assets of the Territory held by the directorate. (4) All public money, except money payable into a directorate banking account, must be paid into the territory banking account. (5) The Treasurer may issue financial management guidelines regarding the banking of public money.

36 Transfer following change in directorate responsibilities If, in the Treasurer’s opinion, it is necessary as a consequence of changes in directorate responsibilities, to transfer to another account money held in the territory banking account or a directorate banking account, the Treasurer must decide the amount to be transferred and direct that the transfer be made.

36A Transfers from directorate banking accounts to territory banking account If, in the Treasurer’s opinion, it is desirable for the management of the public money of the Territory to transfer an amount held in a directorate banking account to the territory banking account, the Treasurer may direct that the transfer be made.

37 Payments from territory banking account (1) Unless provided elsewhere under this Act or another territory law, an amount must not be paid out of the territory banking account except under an appropriation to a banking account of a territory entity. Examples—provided elsewhere 1 this Act, s 38 and s 58 2 the Lifetime Care and Support (Catastrophic Injuries) Act 2014, s 80 3 the Public Sector Workers Compensation Fund Act 2018, s 14 4 the Territory Superannuation Provision Protection Act 2000, s 11 (2) This section does not apply to an overdraft or credit facility for a territory authority approved under section 59 (5). (3) Also, an amount paid into the territory banking account by a territory entity that is paid in excess, may be transferred from the territory banking account to the banking account of the territory entity without appropriation.

37A Payments into territory banking account (a) a territory entity receives an amount appropriated for the territory entity from the territory banking account into its banking account; and (b) the amount received by the territory entity is excess to requirements (the excess amount).

(2) The territory entity may repay the excess amount or part of the excess amount to the territory banking account. (3) If an amount is repaid under subsection (2)— (a) the appropriation from which the excess amount was paid to the territory entity is taken to be restored by the amount repaid by the territory entity; and (b) the balance of the appropriation, including the amount repaid, may be applied for the purposes for which it was appropriated.

38 Investment of certain public money (1) The Treasurer may invest any money held in the territory banking account or directorate banking accounts for the period and on the terms and conditions the Treasurer considers appropriate— (a) on deposit with an authorised deposit-taking institution; or (b) in the purchase of a bill of exchange that is drawn or accepted by an authorised deposit-taking institution; or (c) in a loan to a person who is a dealer in the short-term money market; or (d) in Territory, State or Commonwealth securities; or (e) in any investment prescribed under the financial management guidelines for this paragraph. (2) However, an investment may be made under this section only to increase or protect the financial wealth of the Territory. (3) Transfers of money for investment, including transfers between the territory banking account and directorate banking accounts to facilitate investment, may be made without appropriation. (4) Returns from the investment of public money under this section must be paid to the territory banking account.

(5) Any fees or expenses reasonably incurred in making or managing an investment of public money may be deducted from the investment. (6) The Treasurer may decide the amounts of returns from investments under this section that are to be credited to directorate banking accounts. (7) The amounts decided by the Treasurer may be paid from the territory banking account without further appropriation.

Borrowing and guarantees Part 6

39 Power of Territory to borrow The Territory may only borrow in accordance with this Act or another law of the Territory.

40 Treasurer may borrow on behalf of Territory The Treasurer may, on behalf of the Territory, if necessary or expedient in the public interest to do so— (a) borrow money; or (b) give security for the repayment of an amount borrowed or the payment of interest on an amount borrowed; or (c) enter into a financing lease.

41 Power of territory authorities to borrow Despite any other Act, a territory authority may only borrow (other than from the Territory) in accordance with this Act.

42 Borrowings by territory authorities to be approved (1) A territory authority must not borrow unless— (a) the borrowing is approved in writing by the Treasurer; and (b) the terms and conditions of the borrowing include the terms and conditions (if any) specified in the approval and are otherwise consistent with the approval; and (c) the borrowing is within the borrowing limits (if any) of the authority for the financial year in which the borrowing is entered into, that are approved in writing by the Treasurer. (2) However, subsection (1) (a) and (b) does not apply to a loan made to a territory authority under section 59 (1) (b).

43 Territory authorities may give security Subject to the Treasurer’s approval of the borrowing under section 42 (1) (a), a territory authority may give security for the repayment of an amount borrowed, or for the payment of interest on that amount, by issuing securities.

44 Power to approve borrowings not delegable The Treasurer must not delegate to anyone the power under section 42 (1) (a) to approve borrowings by territory authorities.

45 Loans to be paid into territory banking account Subject to this Act and any other Act, the proceeds of a loan raised on behalf of the Territory must be paid into the territory banking account.

46 Payments by Treasurer The Treasurer may, without further appropriation, make payments needed for— (a) payment of interest on borrowings made for the Territory; or (b) repayment of borrowings made for the Territory; or (c) payment of the expenses of making or repaying borrowings for the Territory.

Borrowing and guarantees Part 6

47 Guarantees by Territory (1) The Territory may only give a guarantee for the payment of money or the performance of an obligation in accordance with this Act. (2) The Treasurer may approve in writing a guarantee by the Territory for the payment of money or the performance by any person of an obligation under a contract, subject to any conditions the Treasurer may specify in the approval. (3) If the Treasurer approves a guarantee under subsection (2), the Treasurer must present a copy of the approval to the Legislative Assembly within 3 sitting days after the approval is given.

49 Identity of trust money All trust money held by the Territory must be accounted for separately from public money.

50 Administration of trust money (1) Trust money must be administered by the appropriate directorate on behalf of the Territory. (2) The Treasurer may, in writing, specify a directorate as the appropriate directorate in relation to an amount of trust money. appropriate directorate, in relation to an amount of trust money, means— (a) except if paragraph (b) applies—the directorate responsible for matters or enactments that relate most closely to the purpose of the payment; or (b) the directorate specified under subsection (2).

51 Directorate trust banking accounts (1) The responsible Minister or the responsible director-general may open a trust banking account for the purposes of the relevant (2) A trust banking account must be maintained by the director-general.

Trust money Part 7 (3) A trust banking account must not, without the Treasurer’s written approval, be opened or maintained otherwise than with an authorised deposit-taking institution with which an agreement is in force under section 32 (Agreement for the conduct of banking for Territory). (4) No money may be held in a trust banking account other than trust money. (5) A Minister or a director-general must not open or operate a trust banking account otherwise than in accordance with this Act.

51A Transfer of directorate trust banking accounts (1) This section applies if the Treasurer believes that it is desirable, because of changes in directorate responsibilities, to transfer a directorate trust banking account from a directorate to another (2) The Treasurer may, in writing, direct the responsible director-general of the directorate that holds the account to arrange for it to be transferred to the other directorate. (3) If a director-general receives a direction under subsection (2), the director-general must comply with it. (4) An account transferred in accordance with the direction becomes a trust banking account of the directorate to which it is transferred.

51B Transfers between trust banking accounts—changes in directorate responsibilities (1) This section applies if the Treasurer believes that it is necessary, because of changes in directorate responsibilities, to transfer an amount held in a directorate trust banking account (the first account) to a trust banking account of another directorate.

(2) The Treasurer may, in writing, direct the responsible director-general of the directorate that holds the first account to transfer the amount. (3) If a director-general receives a direction under subsection (2), the director-general must comply with it.

51C Transfers between trust banking accounts—investment Amounts may at any time be transferred between trust banking accounts to facilitate investment of trust money.

52 Transfers between trust banking account and territory banking account Amounts may only be transferred between a trust banking account and the territory banking account— (a) to facilitate investment of the trust money; or (b) to make a payment required by section 53A (6) (Unclaimed trust money).

53 Investment of trust money The Treasurer may invest trust money as if the Treasurer were a trustee under the Trustee Act 1925.

53A Unclaimed trust money (1) For this section, money held in a trust banking account is unclaimed trust money if— (a) not less than 6 years has elapsed since the date the money became payable; and (b) during that period, no-one entitled to the money has requested that the money be paid to them according to their direction.

Trust money Part 7 (2) If on 1 January in any year a trust banking account contains unclaimed trust money, the director-general responsible for maintaining the account must, on or before 31 January in the year, give to the Treasurer a statement of all unclaimed trust money held in the account. (3) The statement must set out— (a) the name, and last-known address, of each person entitled to unclaimed trust money held in the account; and (b) the amount of the trust money to which each of those people is entitled; and (c) the authorised deposit-taking institution, and the branch of the institution, with which the trust money is held. (4) The statement is a notifiable instrument. (5) The director-general must give additional public notice of the statement. Note Public notice means notice on an ACT government website or in a daily newspaper circulating in the ACT (see Legislation Act, dict, pt 1). The requirement in s (5) is in addition to the requirement for notification on the legislation register as a notifiable instrument. (6) The total amount shown in the statement must be paid into the territory banking account when the statement is given to the Treasurer and, on being paid into that account, becomes public money of the (7) A person who claims to be entitled to any money paid into the territory banking account in accordance with subsection (6) may apply to the Treasurer for a payment of an amount equal to the money to which the person is entitled. (8) The Treasurer must consider each application and either refuse it or approve it completely or partly.

(9) The Treasurer must give the applicant written notice of the Treasurer’s decision. (10) A payment approved by the Treasurer under subsection (8) may be made whether or not an appropriation is available for the purpose.

53B Reviewable decision notices If the Treasurer refuses an application under section 53A (8), completely or partly, the Treasurer must give a reviewable decision notice to the applicant. Note The Treasurer must also take reasonable steps to give a reviewable decision notice to any other person whose interests are affected by the decision (see ACT Civil and Administrative Tribunal Act 2008, s 67A).

53C Applications for review The following may apply to the ACAT for review of a decision under section 53A (8): (a) an applicant for payment under section 53A (8); (b) any other person whose interests are affected by the decision.

Part 8 Financial provisions for territory

54 Application––pt 8 This part applies to a territory authority prescribed by the financial management guidelines for this part.

55 Responsibilities of chief executive officers of territory (1) This section applies to a territory authority if the authority does not have a governing board. Note A territory authority has a governing board if the establishing Act for the authority establishes a governing board for the authority (see s 76). (2) The chief executive officer of the territory authority is responsible, under the responsible Minister, for the efficient and effective financial management of the resources for which the authority is responsible. (3) The chief executive officer of a territory authority must manage the authority in a way that promotes— (a) the achievement of the purpose of the authority; and (b) the financial sustainability of the authority. (4) Without limiting subsections (2) and (3), the chief executive officer of the territory authority is responsible, under the responsible Minister, for ensuring the following: (a) that the expenses incurred by the authority are properly authorised; (b) that, if an appropriation is made in relation to the authority, any amount of the appropriation spent by the authority is spent in accordance with the appropriation;

(c) that, as far as practicable, the operations of the authority during a financial year are consistent with, and comparable to, the estimates in the authority’s statement of intent for the year. (d) that payments made by the authority are properly authorised and correctly made; (e) that the staff of the authority comply with the requirements of this Act; instruments made or in force under the Act, including in this case the financial management guidelines (see Legislation Act, s 104). (f) that proper accounts and records are kept of the transactions and affairs of the authority in accordance with accounting standards; (g) that adequate control is maintained over the assets of the authority and assets under the authority’s control; (h) that adequate control is maintained over the incurring of liabilities by the authority. (5) A report prepared by the territory authority under the Annual Reports (Government Agencies) Act 2004 for a financial year must include an explanation of material variations between the actual results of the authority for the year and the estimates in the authority’s statement of property means property, other than money, that is owned or held by the territory authority or held by a person on behalf of the authority. resources means money or property.

56 Responsibilities of governing boards of territory (1) This section applies to a territory authority if the authority has a governing board. Note A territory authority has a governing board if the establishing Act for the authority establishes a governing board for the authority (see s 76). (2) The governing board of the territory authority is responsible, under the responsible Minister, for the efficient and effective financial management of the resources for which the authority is responsible. (3) The governing board of a territory authority must manage the authority in a way that promotes— (a) the achievement of the purpose of the authority; and (b) the financial sustainability of the authority. (4) Without limiting subsections (2) and (3), the governing board of the territory authority is responsible, under the responsible Minister, for ensuring the following: (a) that expenses incurred by the authority are properly authorised; (b) that, if an appropriation is made in relation to the authority, any amount of the appropriation spent by the authority is spent in accordance with the appropriation; (c) that, as far as practicable, the operations of the authority during a financial year are consistent with, and comparable to, the estimates in the authority’s statement of intent for the year; (d) that payments made by the authority are properly authorised and correctly made;

(e) that the staff of the authority comply with the requirements of this Act; instruments made or in force under the Act, including in this case the financial management guidelines (see Legislation Act, s 104). (f) that proper accounts and records are kept of the transactions and affairs of the authority in accordance with accounting standards; (g) that adequate control is maintained over the assets of the authority and assets under the authority’s control; (h) that adequate control is maintained over the incurring of liabilities by the authority. (5) A report prepared by the territory authority under the Annual Reports (Government Agencies) Act 2004 for a financial year must include an explanation of material variations between the actual results of the authority for the year and the estimates in the authority’s statement of property means property, other than money, that is owned or held by the territory authority or held by a person on behalf of the authority. resources means money or property.

57 Banking accounts of territory authorities (1) A territory authority may open 1 or more banking accounts for the purposes of the authority. (2) A territory authority must at all times keep at least 1 banking account. (3) A banking account of a territory authority must not, without the Treasurer’s written approval, be opened or kept otherwise than with an authorised deposit-taking institution with which an agreement is in force under section 32 (Agreement for the conduct of banking for Territory).

58 Investment by territory authorities (1) Funds not immediately required for the purposes of a territory authority may be invested— (a) on deposit with an authorised deposit-taking institution; or (b) by the Treasurer, for the territory authority, in an investment mentioned in section 38 (1) (a) to (e); or (c) in an investment prescribed for this paragraph. (2) However, the funds of the territory authority may only be invested under this section to increase or protect the financial wealth of the (3) Transfers between the territory banking account and the banking account of a territory authority to facilitate investments may be made without appropriation. (4) Returns received by the Territory from the investment of funds of a territory authority must be paid to the territory authority. (5) Any fees or expenses reasonably incurred in making or managing an investment of funds of a territory authority may be deducted from the investment. (6) Returns that are to be paid to a territory authority under subsection (4) may be paid direct to the territory authority or through the territory banking account. (7) If returns to be paid to a territory authority are paid into the territory banking account under subsection (6), the returns may be paid to the authority from the territory banking account without further appropriation. (8) This section does not apply to money held on trust by a territory

59 Borrowing by territory authorities (1) The Treasurer may, on the terms and conditions the Treasurer considers appropriate— (a) borrow money for a territory authority; or (b) lend public money to a territory authority. (2) A borrowing may be secured by the territory authority’s assets approved by the Treasurer for this section. (3) A territory authority may arrange an overdraft or credit facility only with the written approval of the Treasurer. (4) A loan under subsection (1) (b) may be made only from— (a) money appropriated for the purpose of making the loan; or (b) money appropriated for purposes that include the purpose of making the loan. (5) However, subsection (4) does not apply to an overdraft or credit facility for a territory authority from the territory banking account that is approved by the Treasurer for the authority. (6) The Treasurer may approve an overdraft or credit facility for a territory authority under subsection (5) only if satisfied that it is for a purpose consistent with a function of the authority. (7) An approval under subsection (5) must state, for the overdraft or credit facility— (a) each purpose for which it may be used; and (b) the maximum amount that may be outstanding at any time; and (c) conditions about— (i) the repayment of principal; and (ii) the interest rate; and (iii) the repayment of interest.

(8) An approval under subsection (5) may also state any other condition that the Treasurer requires. (9) An approval under subsection (5) is a disallowable instrument. (10) An overdraft or credit facility approved under subsection (5) must be reviewed annually by the Treasurer.

60 Guarantees by territory authorities A territory authority may only give a guarantee with the written approval of the Treasurer.

61 Territory authority statements of intent (1) A territory authority must give the Treasurer a statement (a statement of intent) for each financial year. (2) A territory authority must consult the responsible Minister in preparing a statement of intent. (3) A territory authority must show the responsible Minister a copy of the proposed statement of intent, and take into consideration any comment by the Minister, before giving it to the Treasurer. (4) A statement of intent must be— (a) in the form the Treasurer requires; and (b) in a form that facilitates a comparison between— (i) the proposed statement of intent for the authority; and (ii) the statement of intent for the authority for the previous (iii) the estimated results for the authority for the previous (c) as agreed between the relevant person for the authority and the Treasurer; and

(d) provided to the Treasurer within the period the Treasurer requires. (5) A statement of intent for a financial year must include the following: management guidelines; (b) for a financial statement mentioned in paragraph (a)—budget estimates for each of the next 3 financial years; (c) a statement of the objectives of the authority for the year and each of the next 3 financial years; (d) a statement of the nature and scope of the activities to be carried out by the authority during the year and each of the next 3 financial years; (e) for a territory authority that, during the year, is to be given a capital injection that must be repaid—a statement that— (i) states that the capital injection is an injection that must be repaid; and which it must be repaid; (f) the results of any review under section 59 (10) in the previous financial year of an overdraft or credit facility approved for the authority; (g) any other information the Treasurer directs. (6) Also, a statement of intent for a prescribed territory authority for a financial year must include a statement that sets out— (a) the outputs and classes of outputs it is proposed that the authority should provide during the year; and (b) the performance criteria to be met by the authority in providing the outputs; and

(c) for each output and class of output mentioned in paragraph (a)— (i) the proposed budget expense and proposed appropriation for the financial year; and (ii) the estimated expense and appropriation for the previous (7) In addition, the statement of intent for a territory authority that is not a prescribed territory authority for a financial year must include the following: (a) the performance criteria and other measures by which the performance of the authority may be assessed against its objectives for the year and each of the next 3 financial years; (b) an assessment of the performance (or estimated performance) of the authority in the previous financial year against its objectives for that year. (8) In this section: relevant person, for a territory authority, means—

62 Presentation of statements of intent of territory (1) This section does not apply if a territory authority presents a proposed budget to the Legislative Assembly under section 10 (c). (2) The Treasurer must present to the Legislative Assembly, with the budget papers for a financial year, a statement of intent for each territory authority for the year.

(3) If the Treasurer does not present to the Legislative Assembly, with the budget papers for a financial year, a statement of intent for a territory authority, the Treasurer must— (a) as soon as practicable after the budget papers are presented, explain to the Legislative Assembly why the statement of intent was not presented; and (b) present the statement of intent to the Legislative Assembly as soon as practicable after presenting the budget papers.

63 Annual financial statements of territory authorities territory authority must prepare annual financial statements for its operations during the year. (2) The annual financial statements must be prepared in accordance with accounting standards and in a form that facilitates a comparison between the financial operations of the territory authority during the financial year and the estimates of the operations in the authority’s statement of intent for the year. (3) The annual financial statements must include— (b) if a change was made during the year to the conditions of a capital injection set out under section 61 (5) (e) (Territory authority statements of intent) in a statement included in a proposed budget for the authority for a financial year—a statement of the change and the reasons for it; and (c) any other statement necessary to fairly reflect the financial operations of the authority during the year and its financial position at the end of the year.

64 Responsibility for annual financial statements of territory (1) An annual financial statement of a territory authority must have a statement of responsibility attached to it. (a) state that, in the relevant person’s opinion, the annual financial statements fairly reflect— (i) the financial operations of the authority during the (ii) the financial position of the authority at the end of the year; and (b) state the relevant person’s responsibility for the preparation of the annual financial statements and the judgments exercised in preparing them; and (c) be signed by the relevant person. auditor-general gives the relevant person an audit opinion for the financial statement in accordance with section 65. relevant person, for the territory authority, means—

65 Audit of annual financial statements of territory (1) The chief executive officer of a territory authority must give the auditor-general the annual financial statements of the authority for a financial year within the prescribed period after the end of the year. (2) The auditor-general must give the chief executive officer an audit opinion about the financial statements as soon as practicable after the auditor-general receives them.

66 Annual financial statements of territory authorities to be included in annual reports etc Act 2004 for a territory authority for a financial year must include, or have attached to it— (a) the authority’s annual financial statements for the year; and (b) the audit opinion under section 65 (2) about the financial statements.

67 Treasurer may require interim financial statements etc for (1) The Treasurer may, in writing, direct the relevant person for a territory authority to give the responsible Minister of the authority and the Treasurer financial or other statements relating to the authority for each month, quarter or other stated period of the year. (2) The relevant person must prepare the statements required by the direction and give them to the responsible Minister and Treasurer within 1 month after the day the person receives the direction or, if a longer period for compliance is stated in the direction, within the longer period.

relevant person, for a territory authority, means—

68 Statements of performance of territory authorities territory authority must prepare a statement of the performance of the authority in meeting the objectives in the authority’s statement of (2) For a territory authority that is not a prescribed territory authority, the statement must assess the performance by reference to the performance criteria and other measures included in the statement of intent in accordance with section 61 (7). (3) For a prescribed territory authority, the statement must include a statement of the performance of the authority in providing each class of outputs set out in the authority’s budget for the year and provided by it during the year and, in particular— (a) compare the performance of the territory authority in providing each class of the outputs with the forecast of the performance in the authority’s budget for the year; and (b) give particulars of the extent to which the performance criteria set out in the budget for the provision of the outputs were met.

budget, for the territory authority, means the budget for the authority for the financial year presented to the Legislative Assembly under section 10 (c) (Budget papers) and, if that budget has been amended prescribed territory authority means a territory authority prescribed for section 61 (6) (Territory authority statements of intent).

69 Responsibility for territory authority statements of performance (1) A statement of performance of a territory authority must have a statement of responsibility attached to it. (a) state that, in the relevant person’s opinion, the statement of performance fairly reflects the performance of the authority during the financial year; and (b) state the relevant person’s responsibility for the preparation of the statement of performance and the judgments exercised in preparing it; and (c) be signed by the relevant person. auditor-general gives the report about the statement of performance to the chief executive officer under section 70 (2). relevant person, for the territory authority, means—

70 Scrutiny of territory authority statements of performance (1) The chief executive officer of a territory authority must give the auditor-general the authority’s statement of performance for a financial year within the prescribed period after the end of the year. (2) The auditor-general must give the chief executive officer a report about the statement of performance as soon as practicable after the auditor-general receives it. (3) The report must be prepared in accordance with the financial management guidelines.

71 Territory authority statements of performance to be included in annual reports etc Act 2004 for a territory authority for a financial year must include, or have attached to it— (a) the authority’s statement of performance for the year; and (b) the auditor-general’s report under section 70 (2) about the statement of performance.

Part 9 Governance of territory Notes for pt 9 Note 1 Div 9.1 and div 9.5 apply to a territory authority, whether or not it has a governing board, unless the establishing Act otherwise provides (see eg the Legal Aid Act 1977, s 94A). Note 2 The Legislation Act contains provisions relevant to territory authorities, including the following: • making appointments (s 206, s 207) • consultation with a committee of the Legislative Assembly (div 19.3.3) • eligibility for reappointment (s 208 and dict, pt 1, def appoint) • acting appointments (s 209) • resignations (s 210) • effect of appointment irregularity or defect (s 212). Note 3 The Remuneration Tribunal Act 1995 allows terms and conditions for people appointed to be set by determination under that Act.

72 Definitions—pt 9 In this part: applicable governmental policies, for a territory authority—see section 103. establishing Act, for a territory authority, governing board or governing board member, means the Act that establishes the authority or governing board.

Definitions and important concepts Division 9.1 financial year, for a territory authority, means— (a) a period of 12 months beginning on 1 July; or (b) if the territory authority has, in writing, fixed another 12-month period as its financial year—the period fixed. governing board member, for a territory authority with a governing board, includes the CEO. material interest—see section 88 (4). relevant territory authority—a territory authority to which part 8 applies is a relevant territory authority, unless the establishing Act for the authority provides otherwise.

73 Nature of relevant territory authorities (1) A relevant territory authority— (a) is a corporation; and (b) may sue and be sued in its corporate name; and (c) may have a seal. (2) A relevant territory authority represents the Territory when exercising its functions, unless the establishing Act for the authority or another territory law otherwise provides. (3) A relevant territory authority has the same status, privileges and immunities as the Territory so far as it represents the Territory.

74 Powers of territory authorities generally (1) A relevant territory authority has the legal capacity and powers of an individual both in and outside the ACT (including outside Australia). Examples 1 to enter into a contract 2 to own, deal with and dispose of property 3 to act as trustee (2) Without limiting subsection (1), a relevant territory authority— (a) has the powers given to it under this Act or another territory law; and (b) may do anything that it is authorised to do by a territory law or a law of another jurisdiction; and (c) may exercise its powers in and outside the ACT (including outside Australia). Example for par (b) A territory authority may arrange for the authority to be registered or recognised under a law of another jurisdiction. (3) A relevant territory authority’s legal capacity to do something is not affected by the fact that the authority’s interests are not, or would not be, served by doing it. (4) To remove any doubt, this section does not— (a) authorise a relevant territory authority to do anything that is prohibited by a territory law or a law of another jurisdiction; and (b) give a relevant territory authority a right that a territory law or a law of another jurisdiction denies to the authority. another jurisdiction means the Commonwealth, a State, another Territory or a foreign country.

Definitions and important concepts Division 9.1

75 Execution of documents and assumptions people dealing with relevant territory authority may make applied Corporations Act provisions means the following provisions of the Corporations Act: (a) section 127 (which is about the execution of documents by a company); (b) section 128 (which is about a person’s entitlement to make certain assumptions in dealing with a company); (c) section 129 (which is about the assumptions that may be made). (2) The applied Corporations Act provisions apply to a relevant territory authority as if— (a) a reference to a company were a reference to the authority; and (b) a reference to a common seal were a reference to any seal of the authority; and (c) a reference to a director were a reference to a board member; and (d) a reference to a company’s constitution were a reference to this Act and the establishing Act; and (e) a reference to an officer of a company were a reference to the chief executive officer and any member of staff of the authority; and (f) a reference to information available to the public from ASIC were a reference to information available to the public from the Territory; and (g) any other necessary changes, and any change prescribed by regulation, were made.

76 Governing board of territory authority A territory authority has a governing board if the establishing Act for the authority establishes a governing board for the authority.

77 Role of governing board (1) If a territory authority has a governing board, the governing board has the following functions: (a) setting the authority’s policies and strategies; (b) governing the authority consistently with the authority’s establishing Act and other relevant legislation; (c) ensuring, as far as practicable, that the authority operates in a proper, effective and efficient way; (d) ensuring, as far as practicable, that the authority complies with applicable governmental policies (if any). Examples of policies for par (a) 1 risk management 2 communication with government 3 corporate planning (2) This section does not limit the functions of a governing board.

Division 9.2 Governing board member appointments

78 Appointment of governing board members generally (1) This section applies to the appointment of the members of the governing board of a territory authority, other than the CEO. (2) The responsible Minister for the territory authority may appoint the members. Note For laws about appointments, see the Legislation Act, pt 19.3.

Governing board member appointments Division 9.2 (3) The only criteria for deciding whether to appoint a person as a member are— (a) the contribution the person can make to the goals and objectives of the governing board; and (b) the criteria stated in applicable governmental policies (if any) relating to appointments. (4) However, the establishing Act may prescribe other criteria for deciding whether to appoint a person as a member. (5) Also, unless the establishing Act otherwise provides, a person must not be appointed as a member if— (a) the person is a public servant; and (b) if the governing board has a maximum of 6 members or less— the appointment would result in more than 1 public servant being a member of the board; and (c) if the governing board has a maximum of more than 6 members—the appointment would result in more than 2 public servants being members of the board. (6) Subsection (5) does not apply if— (a) the Minister is satisfied that there are special circumstances justifying the appointment; and (b) the Legislative Assembly approves, by resolution, the appointment. (7) An appointment of a member— (a) must not be for longer than 3 years, unless the establishing Act allows a longer period; and (b) is an appointment under the provision of the establishing Act that establishes the governing board.

(8) The conditions of appointment of a member (other than a member required under the establishing Act to be a public servant or statutory office-holder) are the conditions agreed between the Minister and the member, subject to any determination under the Remuneration Tribunal Act 1995.

79 Appointment of chair and deputy chair (1) The responsible Minister for a territory authority with a governing board may appoint a chair for the board and, unless the establishing Act otherwise provides, a deputy chair for the board. Note For laws about appointments, see the Legislation Act, pt 19.3. (2) However, the responsible Minister must not appoint the CEO of the territory authority as chair or deputy chair. (3) Also, the responsible Minister must not appoint a public servant as chair or deputy chair unless— (a) there is no member of the board who— (i) is not a public servant; and (ii) is available to be appointed; and (b) the Legislative Assembly approves, by resolution, the appointment. (4) The responsible Minister must try to ensure that the governing board of a territory authority always has a chair and, unless the establishing Act otherwise provides, deputy chair.

Governing board member appointments Division 9.2

80 Appointment of CEO of authority with governing board (1) This section applies to a territory authority with a governing board. (2) The governing board of the territory authority must, after consulting the responsible Minister, appoint a CEO for the authority. Note 1 For the making of appointments (including acting appointments), see the Legislation Act, pt 19.3. Note 2 In particular, an appointment may be made by naming a person or nominating the occupant of a position (see s 207). (3) However, if the CEO is required under the establishing Act to be a public servant, the director-general of the administrative unit responsible for the establishing Act must, after consulting the governing board and the responsible Minister, appoint a CEO for the (4) The CEO is a member of the governing board. (5) However, the CEO is not a member of the governing board if it is considering or deciding— (a) the appointment, or the ending of the appointment, of the CEO; or (b) the CEO’s conditions of appointment. (6) The conditions of appointment of a CEO (other than a CEO required under the establishing Act to be a public servant) are the conditions agreed between the governing board and the CEO, subject to any determination under the Remuneration Tribunal Act 1995.

81 Ending board member appointments (1) This section applies to a governing board member other than the CEO. (2) The responsible Minister may end the member’s appointment— (a) if the member contravenes a territory law; or (b) for misbehaviour; or (c) if the member becomes bankrupt or personally insolvent; or Note Bankrupt or personally insolvent—see the Legislation Act, dictionary, pt 1. (d) if the member is convicted, or found guilty, in Australia of an offence punishable by imprisonment for at least 1 year; or (e) if the member is convicted, or found guilty, outside Australia of an offence that, if it had been committed in the ACT, would be punishable by imprisonment for at least 1 year; or (f) if the member exercises the member’s functions other than in accordance with section 85 (Honesty, care and diligence of governing board members); or (g) if the member fails to take all reasonable steps to avoid being placed in a position where a conflict of interest arises during the exercise of the member’s functions; or (h) if the member contravenes section 88 (Disclosure of interests by governing board members); or (i) if the member is absent from 3 consecutive meetings of the board, otherwise than on approved leave; or (j) for physical or mental incapacity, if the incapacity substantially affects the exercise of the member’s functions. Note A person’s appointment also ends if the person resigns (see Legislation Act, s 210).

(3) The Minister may also end the appointment of the member (the member concerned) if the board tells the Minister in writing that it has resolved, by a majority of at least 2/3 of the members, to recommend to the Minister that the member’s appointment be ended. (4) The governing board may pass a resolution mentioned in subsection (3) only if— (a) at least 3 weeks written notice of the intention to consider the proposed resolution has been given to the member concerned; and (b) the member concerned has been given an opportunity to make submissions and present documents to a meeting of the board; and (c) if the member concerned has used the opportunity mentioned in paragraph (b)—a summary of the member’s submissions is recorded in the minutes of the board and a copy of any documents presented is included in the minutes. Division 9.3 Functions of governing board members

82 Chair’s functions The chair of the governing board of a territory authority has the following functions: (a) managing the affairs of the governing board; (b) ensuring, as far as practicable, that there is a good working relationship between the governing board and management of the authority; (c) ensuring the responsible Minister is kept informed about the operations of the authority.

83 Deputy chair’s functions (1) If the chair of the governing board of a territory authority is absent or cannot for any reason exercise the functions of the chair, the deputy chair of the governing board must exercise the functions of the chair. (2) However, this section does not apply to a territory authority if the establishing Act for the authority provides that it need not have a deputy chair. Note The Legislation Act, s 209 deals with acting appointments.

84 CEO’s functions (1) The CEO of a territory authority with a governing board has the following functions: (a) ensuring, as far as practicable, that the authority’s statement of intent is implemented effectively and efficiently; Example of implementation of statement of intent achieving objectives in statement of intent (b) managing the day-to-day operations of the authority in accordance with— (i) applicable governmental policies (if any); and (ii) the policies of the authority set by the board; and (iii) each legal requirement that applies to the authority; Example for par (iii) a direction by the independent competition and regulatory commission that relates to the authority (c) regularly advising the board about the operation and financial performance of the authority; (d) immediately advising the board about significant events.

significant event, for a territory authority, means an event that the authority is required to tell the responsible Minister about under section 101.

85 Honesty, care and diligence of governing board members In exercising the functions of a governing board member, a member must exercise the degree of honesty, care and diligence required to be exercised by a director of a corporation in relation to the affairs of the

86 Conflicts of interest by governing board members A governing board member must take all reasonable steps to avoid being placed in a position where a conflict of interest arises during the exercise of the member’s functions.

87 Agenda to require disclosure of interest item The agenda for each meeting of a territory authority governing board must include an item requiring any material interest in an issue to be considered at the meeting to be disclosed to the meeting.

88 Disclosure of interests by governing board members (1) If a governing board member has a material interest in an issue being considered, or about to be considered, by the governing board, the member must disclose the nature of the interest at a board meeting as soon as practicable after the relevant facts come to the member’s knowledge. Note Material interest is defined in s (4). The definition of indirect interest in s (4) applies to the definition of material interest. (2) The disclosure must be recorded in the governing board’s minutes and, unless the board otherwise decides, the member must not— (a) be present when the board considers the issue; or

(b) take part in a decision of the board on the issue. Example Albert, Boris and Chloe are members of a governing board. They have an interest in an issue being considered at a governing board meeting and they disclose the interest as soon as they become aware of it. Albert’s and Boris’s interests are minor but Chloe has a direct financial interest in the issue. The governing board considers the disclosures and decides that because of the nature of the interests: • Albert may be present when the board considers the issue but not take part in the decision • Boris may be present for the consideration and take part in the decision. The board does not make a decision allowing Chloe to be present or take part in the board’s decision. Accordingly, since Chloe has a material interest she cannot be present for the consideration of the issue or take part in the decision. (3) Any other governing board member who also has a material interest in the issue must not be present when the board is considering its decision under subsection (2). associate, of a person, means— (a) the person’s business partner; or (b) a close friend of the person; or (c) a family member of the person. executive officer, of a corporation, means a person (however described) who is concerned with, or takes part in, the corporation’s management, whether or not the person is a director of the indirect interest—without limiting the kinds of indirect interests a person may have, a person has an indirect interest in an issue if any of the following has an interest in the issue: (a) an associate of the person;

(b) a corporation if the corporation has not more than 100 members and the person, or an associate of the person, is a member of the corporation; (c) a subsidiary of a corporation mentioned in paragraph (b); (d) a corporation if the person, or an associate of the person, is an executive officer of the corporation; (e) the trustee of a trust if the person, or an associate of the person, is a beneficiary of the trust; (f) a member of a firm or partnership if the person, or an associate of the person, is a member of the firm or partnership; (g) someone else carrying on a business if the person, or an associate of the person, has a direct or indirect right to participate in the profits of the business. material interest—a governing board member has a material interest in an issue if the member has— (a) a direct or indirect financial interest in the issue; or (b) a direct or indirect interest of any other kind if the interest could conflict with the proper exercise of the member’s functions in relation to the board’s consideration of the issue.

89 Reporting of disclosed governing board interests to Minister (1) Within 3 months after the day a material interest is disclosed under section 88 (1), the chair of the governing board must report to the responsible Minister in writing about— (a) the disclosure; and (b) the nature of the interest disclosed; and (c) any decision by the board under section 88 (2).

(2) The chair must also give the responsible Minister, not later than 31 days after the end of each financial year, a statement that sets out the information given to the Minister in reports under subsection (1) that relate to disclosures made during the previous financial year. (3) The responsible Minister must give a copy of the statement to the relevant Assembly committee within 31 days after the day the Minister receives the statement.

90 Protection of governing board members from liability (1) A governing board member is not civilly liable for anything done or omitted to be done honestly and without recklessness— (a) in the exercise of a function under a territory law; or (b) in the reasonable belief that the act or omission was in the exercise of a function under a territory law. (2) Any liability that would, apart from this section, attach to a governing board member of a territory authority attaches instead to the authority.

91 Indemnification and exemption of governing board members (1) A territory authority must not exempt a governing board member (whether directly or through another entity) from liability to the (2) A territory authority must not indemnify a governing board member (whether directly or through another entity and whether by agreement or by making a payment) against any of the following liabilities incurred as a board member: (a) a liability owed to the authority; (b) a liability owed to someone other than the authority that did not arise from honest conduct.

(3) A territory authority must not indemnify a governing board member (whether directly or through another entity and whether by agreement or by making a payment) against legal costs incurred as a member if the costs are incurred— (a) in defending or resisting a proceeding if the person is found to have a liability for which the person could not be indemnified under subsection (2); or Note A governing board member is not personally liable for certain acts done or omissions made honestly and without recklessness (see s 90). (b) in defending or resisting a criminal proceeding in which the person is found guilty. authority includes a subsidiary (if any) of the authority.

92 Compensation for exercise of functions etc (1) A person may claim compensation from the Territory if the person suffers loss because of the exercise, or purported exercise, of a function under this part or the establishing Act. (2) Compensation may be claimed and ordered in a proceeding for compensation brought in a court of competent jurisdiction. (3) A court may order the payment of reasonable compensation for the loss or expense only if it is satisfied it is just to make the order in the circumstances of the particular case. (4) A regulation may prescribe matters that may, must or must not be taken into account by the court in considering whether it is just to make the order.

93 Time and place of governing board meetings (1) Meetings of the governing board of a territory authority are to be held when and where it decides. (2) However, the governing board must meet— (a) at least once every 3 months; or (b) if the establishing Act requires the governing board to meet more frequently—at the times required under the establishing Act. (3) The chair— (a) may at any time call a meeting of the governing board; and (b) must call a meeting if asked by the Minister or at least 2 members. (4) The chair must give the other members reasonable notice of the time and place of a meeting called by the chair.

94 Presiding member at governing board meetings (1) The chair presides at all meetings at which the chair is present. (2) If the chair is absent and the governing board has a deputy chair, the deputy chair presides. (3) If the chair and the deputy chair are absent or the chair is absent and there is no deputy chair, the member chosen by the members present presides. (4) However, the members must not choose the CEO to preside.

Governing board meetings Division 9.4

95 Quorum at governing board meetings (1) Business may be carried on at a meeting of the governing board only if at least 1/2 the number of members appointed are present. (2) However, if the establishing Act for the governing board provides that a board member is a non-voting member, that board member is not counted as a member appointed or present for subsection (1).

96 Voting at governing board meetings (1) At a meeting of the governing board each member has a vote on each question to be decided, unless the establishing Act for the board otherwise provides. (2) A question is decided by a majority of the votes of the members present and voting but, if the votes are equal, the member presiding has a deciding vote.

97 Conduct of governing board meetings etc (1) The governing board may conduct its proceedings (including its meetings) as it considers appropriate. (2) A meeting may be held using a method of communication, or a combination of methods of communication, that allows a board member taking part to hear what each other member taking part says without the members being in each other’s presence. Examples a phone link, a satellite link, an internet or intranet link (3) A governing board member who takes part in a meeting conducted under subsection (2) is taken, for all purposes, to be present at the meeting.

(4) A resolution is a valid resolution of the governing board, even if it is not passed at a meeting of the board, if all members agree to the proposed resolution in writing or by electronic communication. Example of electronic communication email (5) The board must keep minutes of its meetings. Division 9.5 Requirements and obligations for

98 Limitations on authorities forming corporations etc (1) A relevant territory authority must not do any of the following without the Treasurer’s prior written approval: (a) subscribe for, or purchase, shares in or debentures or other securities of, a corporation; (b) form, or take part in the formation of, a corporation. (2) An approval under subsection (1)— (a) must relate only to a particular corporation or proposed corporation; and (b) may be given subject to the conditions or restrictions stated in the approval. (3) If a relevant territory authority does something mentioned in subsection (1), the authority must tell the responsible Minister within 2 weeks after the day the authority does the thing. (4) The responsible Minister must— (a) prepare a written statement setting out details of, and reasons for, the relevant territory authority’s action; and (b) present the statement to the Legislative Assembly within 6 sitting days after the day the Minister is told about the action.

Requirements and obligations for territory authorities Division 9.5 (5) A statement need not include any material that is commercially sensitive. (6) However, if commercially sensitive information is not included in the statement, the responsible Minister must, when presenting the statement to the Legislative Assembly, also present a further statement setting out the general nature of the information and the reason for its non-inclusion in the statement.

99 Limitations on authorities taking part in joint ventures and trusts (1) A relevant territory authority must not take part in a joint venture or trust without the Treasurer’s prior written approval. (2) An approval under subsection (1)— (a) may apply generally or may relate to a particular proposed joint venture or trust; and (b) may be given subject to the conditions or restrictions stated in the approval. (3) If a relevant territory authority enters into an agreement for a joint venture or trust, the authority must tell the responsible Minister within 2 weeks after the day the authority enters into the agreement. (4) The responsible Minister must— (a) prepare a written statement setting out details of, and reasons for, the agreement; and (b) present the statement to the Legislative Assembly within 6 sitting days after the day the Minister is told about the agreement. (5) A statement need not include any material that is commercially sensitive.

(6) However, if commercially sensitive information is not included in the statement, the responsible Minister must, when presenting the statement to the Legislative Assembly, also present a further statement setting out the general nature of the information and the reason for its non-inclusion in the statement.

100 Corporations, joint ventures and trusts in which authority has interest (1) If a relevant territory authority has a controlling interest in a corporation, joint venture or trust, the authority must ensure that— (a) the auditor-general is appointed auditor for the corporation, joint venture or trust; and (b) the corporation or joint venture, or a trustee for the trust, does not do anything that the authority itself could not do. (2) If a relevant territory authority has an interest, other than a controlling interest, in a corporation, joint venture or trust, the authority must try to ensure that the auditor-general is appointed auditor for the corporation, joint venture or trust. Note The Auditor-General Act 1996, s 14 allows the auditor-general to require a person to give to the auditor-general information and documents. (3) In this section— controlling interest—see the Auditor-General Act 1996, section 5.

101 Obligation of authorities to tell Minister about significant events (1) A relevant territory authority must, as soon as practicable, tell the responsible Minister of any significant event that affects, or seems likely to affect— (a) the value of the authority; or (b) a significant part of the authority’s assets; or

Requirements and obligations for territory authorities Division 9.5 (c) the performance of the authority as a whole; or (d) the carrying out of a significant activity of the authority. (2) For this section, an event, part of assets or activity is significant for a relevant territory authority if— (a) it is significant when interpreted in accordance with accounting standards relating to materiality ordinarily used in Australia when the decision about whether it is significant is made; or (b) a document published by the authority identifies it as significant (however described); or (c) a memorandum of understanding or other agreement between the responsible Minister or Treasurer and the authority identifies it as significant (however described); or (d) it is prescribed under the financial management guidelines.

102 Ministerial directions to authorities about financial etc statements (1) The responsible Minister for a relevant territory authority may, in writing, direct the relevant person for the authority to give the Minister financial or other statements relating to the authority. (2) Without limiting subsection (1), the direction may state the form in which the statements are to be given and the period to which they must relate. (3) A relevant person for a relevant territory authority who receives a direction under subsection (1) must prepare the statements required by the direction and give them to the responsible Minister within 1 month after the day the person receives the direction or, if a longer period is allowed by the Minister, within the longer period. (4) The responsible Minister must not allow a longer period under subsection (3) for complying with a direction unless satisfied that there are special circumstances that justify the longer period.

relevant person, for a relevant territory authority, means—

103 Application of government policies to authorities (1) The responsible Minister for a relevant territory authority may, after consulting the authority, tell the authority the general government policies (applicable governmental policies) that are to apply to the (2) A relevant territory authority must ensure that the authority complies, as far as practicable, with the applicable governmental policies. (3) For the Competition and Consumer Act 2010 (Cwlth), this Act authorises— (a) the decision to apply applicable governmental policies to an authority; and (b) the doing of, or the failure to do, anything by or in relation to the authority to comply with applicable governmental policies. (4) A notice under subsection (1) is a notifiable instrument.

104 Purpose of div 9.6 The purpose of this division is to facilitate the transfer of assets, rights and liabilities of, or held by, territory authorities to which this division applies. Note 1 A liability includes an obligation (see Legislation Act, dict, pt 1). Note 2 See also the Legislation Act, dict, def asset.

105 What territory authorities does div 9.6 apply to? (1) This division applies to a territory authority if the authority is prescribed by regulation for this division. (2) A reference in this division to a division 9.6 authority is a reference to a territory authority to which this division applies. (3) To remove any doubt— (a) nothing in this Act prevents a division 9.6 authority also being a division 9.7 authority; and (b) a regulation may prescribe a territory authority for this division whether or not this part would otherwise apply to the authority.

106 Responsible Minister may direct div 9.6 authority to sell or transfer assets (1) The responsible Minister for a division 9.6 authority may direct the authority to sell or transfer a stated asset of, or held by, the authority. (2) The direction may also impose on the division 9.6 authority requirements to assist or regulate, or otherwise in relation to, the sale or transfer. Examples of other requirements 1 that a sale or transfer must be to a stated entity 2 that a sale or transfer must be finished before a stated time 3 that a sale or transfer must be undertaken in a stated way 4 that an asset must be sold for a price within a stated price-range 5 that an asset must be marketed, and the sale undertaken, through a stated agent (3) The division 9.6 authority must comply with the direction. (4) A direction under subsection (1) is a notifiable instrument. (5) To remove any doubt, this section is additional to, and does not limit,

107 Transfer of assets by declaration—div 9.6 authorities (1) The responsible Minister for a division 9.6 authority may make 1 or more of the following declarations (a transfer declaration) in relation to an asset of, or held by, the authority: (a) a declaration that the stated asset vests in a stated entity at a stated time without a conveyance, transfer or assignment; (b) a declaration that a stated instrument relating to the asset continues to have effect after the asset vests in a stated entity as if a reference in the instrument to the authority were a reference to the entity;

(c) a declaration that a stated entity becomes the authority’s successor in law in relation to the asset after the asset vests in the entity. (2) A transfer declaration has effect in accordance with its terms. (3) A transfer declaration is a notifiable instrument. (4) To remove any doubt, the making of a transfer declaration in relation to an asset of, or held by, a division 9.6 authority does not prevent the authority from transferring assets not dealt with in the declaration otherwise than in accordance with the declaration. (5) To remove any doubt, this section is additional to, and does not limit,

108 Transfer of contractual rights and liabilities by declaration—div 9.6 authorities (1) The responsible Minister for a division 9.6 authority may declare that the authority’s rights and liabilities under a stated contract to which the authority is party— (a) stop being the rights and liabilities of the authority at a stated time; and (b) become rights and liabilities of a stated entity at that time. (2) The responsible Minister for a division 9.6 authority may declare that a stated contract continues to have effect after a stated time as if a reference in the contract were a reference to a stated entity. (3) The responsible Minister for a division 9.6 authority may declare that a stated instrument relating to a stated contract continues to have effect after the authority’s rights and liabilities under the contract become rights and liabilities of a stated entity as if a reference in the instrument to the authority were a reference to the entity.

(4) The responsible Minister for a division 9.6 authority may declare that a stated person becomes the authority’s successor in law, in relation to the authority’s rights and liabilities under a stated contract, immediately after the authority’s rights and liabilities under the contract become rights and liabilities of the entity. (5) A declaration under this section has effect according to its terms. (6) A declaration under this section is a notifiable instrument. (7) To remove any doubt, this section is additional to, and does not limit,

109 Transfer of liabilities by declaration—div 9.6 authorities (1) The responsible Minister for a division 9.6 authority may make 1 or more of the following declarations in relation to a liability of the authority: (a) a declaration that a stated liability stops being a liability of the authority and becomes a liability of a stated entity at a stated time; (b) a declaration that a stated instrument relating to a stated liability continues to have effect after the liability becomes a liability of a stated entity as if a reference in the instrument to the authority were a reference to the entity; (c) a declaration that a stated entity becomes the authority’s successor in law in relation to a stated liability immediately after the liability becomes a liability of the entity. (2) A declaration under subsection (1) has effect in accordance with its terms. (3) A declaration under subsection (1) is a notifiable instrument. (4) To remove any doubt, this section is additional to, and does not limit

110 Assistance given by authorities for div 9.6 (1) A division 9.6 authority may, on the authority’s own initiative, give the Territory assistance in relation to the transfer of the authority’s assets. Examples of forms of assistance 1 giving information 2 giving financial assistance 3 giving a financial benefit to an entity 4 giving facilities, information and other assistance in relation to the conduct of a due diligence procedure or market briefing 5 entering into an agreement with the Territory (2) A division 9.6 authority must, if asked in writing by the responsible Minister for the authority, assist the Territory in relation to the (3) If a division 9.6 authority must give assistance under subsection (2), the assistance must be given within the period, and in the way, stated in the request. (4) To remove any doubt, a division 9.6 authority that gives assistance under this section does not incur civil liability only because of the giving of assistance. (5) Any liability that would, apart from this section, attach to the division 9.6 authority attaches instead to the Territory.

111 Assistance given by governing board members for div 9.6 (1) The governing board, or a member of the governing board, of a division 9.6 authority may, on the board’s or member’s own initiative, give the Territory assistance in relation to the transfer of the authority’s assets. Examples of forms of assistance 1 giving information 2 giving financial assistance 3 giving a financial benefit to an entity 4 giving facilities, information and other assistance in relation to the conduct of a due diligence procedure or market briefing 5 entering into an agreement with the Territory (2) The governing board, or a member of the governing board, of a division 9.6 authority must, if asked in writing by the responsible Minister for the authority, assist the Territory in relation to the (3) If the governing board, or a member of the governing board, of a division 9.6 authority must give assistance under subsection (2), the assistance must be given within the period, and in the way, stated in the request. (4) To remove any doubt, a governing board or a member of a governing board who gives assistance under this section does not incur civil liability only because of the giving of assistance. (5) Any liability that would, apart from this section, attach to the members or member of the governing board attaches instead to the

112 Use of information by Territory and div 9.6 authorities (1) This section applies to information provided under section 110 (Assistance given by authorities for div 9.6) or section 111 (Assistance given by governing board members for div 9.6) in relation to a division 9.6 authority. (2) The Territory, the division 9.6 authority or an associated person may use the information for a purpose related to, or consequent on, the (3) The Territory, the territory authority or an associated person may give the information to someone else for a purpose related to, or consequent on, the transfer of the authority’s assets. (4) If a person gives information or uses information under this section— (a) the giving of the information is not— (i) a breach of confidence; or (ii) a breach of professional etiquette or ethics; or (iii) a breach of a rule of professional conduct; and (b) the person does not incur civil liability only because of the giving or using of the information. associated person—each of the following is an associated person in relation to a division 9.6 authority: (a) the responsible Minister for the authority; (b) a public employee; (c) a person who exercises a function for the Territory in relation to the transfer of the authority’s assets;

(d) a member of the governing board of the territory authority; (e) an officer or employee of the authority; (f) a person who exercises a function for the authority in relation to the authority’s assets.

113 Contracts relating to the protection of information— responsible Minister for div 9.6 authority (1) The responsible Minister for a division 9.6 authority may, on behalf of the Territory, enter into a contract with an entity relating to the protection of information if— (a) the information is provided under section 110 (Assistance given by authorities for div 9.6) or section 111 (Assistance given by governing board members for div 9.6); and (b) publication of the information might be expected to substantially prejudice the entity’s commercial interests. (2) To remove any doubt, subsection (1) does not limit the power of the Territory to enter into contracts.

114 Contracts relating to the protection of information— div 9.6 authority (1) A division 9.6 authority may enter into a contract with an entity relating to the protection of information if— (a) the information is provided under section 110 (Assistance given by authorities for div 9.6) or section 111 (Assistance given by governing board members for div 9.6); and (b) publication of the information might be expected to substantially prejudice the entity’s commercial interests. (2) To remove any doubt, subsection (1) does not limit the power of the division 9.6 authority to enter into contracts.