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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Government Financial Responsibility Bill
1998
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
3. Purposes of this Act 2
4. Interpretation 2
5. Obtaining information from public sector bodies 4
6. The financial management principles 4
7. The financial elements 4
8. Matters to be addressed in statements and reports 5
9. Releasing financial statements and reports 5
Part 2 -- Government financial planning and
reporting
10 . Government financial planning 6
11 . Government Financial Strategy Statements 6
12 . Government Financial Projections Statements 7
page i
143 --1
Government Financial Responsibility Bill 1998
13 . Government Mid-year Financial Projections
Statements 9
14 . Government Financial Results Report 12
15 . Pre-election Financial Projections Statements 12
16 . Costing pre-election commitments 14
page ii
Western Australia
LEGISLATIVE ASSEMBLY
Government Financial Responsibility Bill
1998
A Bill for
An Act to establish a framework for government financial planning
and reporting, to facilitate public scrutiny of government financial
policy and performance, and for related purposes.
The Parliament of Western Australia enacts as follows:
page 1
Government Financial Responsibility Bill 1998
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This Act may be cited as the Government Financial
Responsibility Act 1998.
5 2. Commencement
This Act commences on the day on which it receives the Royal
Assent.
3. Purposes of this Act
(1) The main purposes of this Act are --
10 (a) to establish a framework for government financial
planning with a view to improving government financial
outcomes; and
(b) to facilitate public scrutiny of government financial
policy and performance.
15 (2) Nothing in this Act creates rights or duties that are enforceable
in judicial or other proceedings.
4. Interpretation
In this Act, unless the contrary intention appears --
"Australian Accounting Standards" means the Australian
20 Accounting Standards issued by the Australian Accounting
Research Foundation on behalf of the Australian Society of
Certified Practising Accountants and the Institute of
Chartered Accountants in Australia;
"budget planning cut-off date", in relation to a budget year,
25 means the date on which the Treasurer notifies the Under
Treasurer under section 12(4) that the budget process for
that year has been completed;
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Government Financial Responsibility Bill 1998
Preliminary Part 1
s. 4
"budget year" means the financial year to which a budget
relates;
"external reporting standards" means --
(a) the concepts and classifications set out in GFS
5 Australia; and
(b) the Australian Accounting Standards;
"financial element" has the meaning given in section 7;
"financial management principles" means the financial
management principles set out in section 6;
10 "GFS Australia" means the publication of the Australian
Bureau of Statistics known as Government Finance
Statistics Australia: Concepts, Sources and Methods, as
updated from time to time;
"Government Financial Projections Statement" means a
15 statement under section 12;
"Government Financial Strategy Statement" means a
statement under section 11;
"Government Mid-year Financial Projections Statement"
means a statement under section 13;
20 "Pre-election Financial Projections Statement" means a
statement under section 15;
"pre-election period" means the period between the issue of
the writs for a general election for the Legislative
Assembly and the date of the general election;
25 "public sector body" means --
(a) a department established under section 35 of the
Public Sector Management Act 1994; or
(b) a body, whether corporate or unincorporate, or the
holder of an office, post or position, being a body,
page 3
Government Financial Responsibility Bill 1998
Part 1 Preliminary
s. 5
office, post or position that is established or
continued for a public purpose under a written law;
"release", in relation to a statement or report made or to be
made under this Act, has the meaning given in section 9;
5 "Under Treasurer" means the chief executive officer within
the meaning of the Interpretation Act 1984.
5. Obtaining information from public sector bodies
(1) The Under Treasurer may, in writing, ask a public sector body
for any information needed to prepare a statement, report or
10 policy costing for the purposes of this Act.
(2) The Under Treasurer may issue written guidelines to help public
sector bodies to provide the information needed to prepare
statements, reports and policy costings for the purposes of this
Act.
15 6. The financial management principles
The financial management principles are as follows --
(a) funding for current services is to be provided by the
current generation;
(b) spending and taxing policies are to be formulated and
20 applied so as to give rise to a reasonable degree of
stability and predictability;
(c) financial risks are to be managed prudently.
7. The financial elements
(1) For the purposes of this Act, a financial element is --
25 (a) the assets of the State;
(b) the liabilities of the State;
(c) the net assets of the State;
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Government Financial Responsibility Bill 1998
Preliminary Part 1
s. 8
(d) the operating expenses of the State;
(e) the operating revenue of the State;
(f) the operating balance of the State; or
(g) any other significant element of the Government's
5 financial management or performance.
(2) For the purposes of this Act, the amount or value of a financial
element is to be calculated in accordance with the principles of
the external reporting standards.
8. Matters to be addressed in statements and reports
10 (1) Financial projections or financial reports released under this Act
are to include projections or reports of the matters usually
addressed in a general purpose financial report within the
meaning of Australian Accounting Standard 31 (Financial
Reporting by Governments).
15 (2) A projection or report of an operating surplus or total equity is
either to be consolidated in accordance with Australian
Accounting Standard 31, or to be calculated in such a way that
the projected or reported result is the same as if it had been
consolidated in accordance with the Standard.
20 9. Releasing financial statements and reports
(1) Where this Act provides for the release of a statement or report,
the statement or report is to be --
(a) tabled in each House of Parliament; and
(b) made publicly available.
25 (2) If a House of the Parliament is not sitting when a statement or
report is to be released, the statement or report is to be made
publicly available at that time, and is to be tabled in the House
as soon as practicable.
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Government Financial Responsibility Bill 1998
Part 2 Government financial planning and reporting
s. 10
Part 2 -- Government financial planning and
reporting
10. Government financial planning
(1) The Government's financial planning is to be consistent with the
5 financial management principles.
(2) The Government's financial planning may deviate temporarily
from the financial management principles in special
circumstances.
(3) If there is any deviation from the financial management
10 principles, the Under Treasurer is to prepare, for inclusion in the
next Government Financial Strategy Statement to be released --
(a) a statement of the reasons for the deviation; and
(b) a summary of the Government's proposed programme
for reverting to compliance with the principles.
15 11. Government Financial Strategy Statements
(1) The Treasurer is to release a Government Financial Strategy
Statement at least once in each calendar year.
(2) A Government Financial Strategy Statement is to --
(a) set out the Government's medium-term targets in
20 relation to the financial element or elements relevant to
each target;
(b) explain how the targets are to be achieved;
(c) indicate how the targets are related to the financial
management principles;
25 (d) contain a statement and summary under section 10(3), if
required; and
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Government Financial Responsibility Bill 1998
Government financial planning and reporting Part 2
s. 12
(e) indicate the time frames proposed for achieving the
targets.
(3) If the Government makes a significant change in its financial
strategy, the Treasurer is to release a new Government Financial
5 Strategy Statement, dealing with the matters listed in
subsection (2), and giving the reasons for the change.
(4) The new Government Financial Strategy Statement is to be
released as soon as possible after the change in financial
strategy, but in any case no later than when the next
10 Government Financial Projections Statement is released.
(5) If the financial strategy to be dealt with in a Government
Financial Strategy Statement has not changed significantly from
the financial strategy dealt with in the previous Government
Financial Strategy Statement, then, instead of releasing a full
15 Government Financial Strategy Statement in accordance with
subsection (2), the Treasurer may release a Government
Financial Strategy Statement to the effect that the information in
the previous Government Financial Strategy Statement is still
current.
20 12. Government Financial Projections Statements
(1) The Treasurer is to release a Government Financial Projections
Statement when the appropriation Bills and budget papers for a
budget or supplementary budget are tabled in the Legislative
Assembly.
25 (2) A Government Financial Projections Statement is to include the
following --
(a) financial projections for the Government for the budget
year and the 3 following financial years;
(b) an account of the economic and other assumptions on
30 which the financial projections are based;
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Government Financial Responsibility Bill 1998
Part 2 Government financial planning and reporting
s. 12
(c) an explanation of the implications of the financial
projections for meeting the financial targets set out in
the most recently released Government Financial
Strategy Statement;
5 (d) an analysis of the degree to which the financial
projections are likely to be affected by changes in the
circumstances on which the economic and other
assumptions are based;
(e) a statement of any risks, quantified as far as practicable,
10 that could materially affect the financial projections,
including particulars of any contingent liabilities and
any government negotiations that have not been
finalized;
(f) a certificate by the Under Treasurer under
15 subsection (7).
(3) When preparing a Government Financial Projections Statement,
the Under Treasurer is to take account of the following --
(a) the implications of all relevant decisions that were taken
by the Government before the budget planning cut-off
20 date and that were known to the Under Treasurer on or
before that date;
(b) any other information that could have a material effect
on the financial projections and that was available to the
Under Treasurer on or before the budget planning
25 cut-off date.
(4) When the Treasurer is satisfied that the budget planning process
has been completed for a budget year, the Treasurer is to notify
the Under Treasurer to that effect.
(5) On or before the budget planning cut-off date, the Treasurer
30 must give the Under Treasurer all available information about
government decisions taken before that date --
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Government Financial Responsibility Bill 1998
Government financial planning and reporting Part 2
s. 13
(a) that has or could have material financial or economic
implications relevant to preparing the Government
Financial Projections Statement; and
(b) that the Under Treasurer could not reasonably be
5 expected to have already.
(6) The Government Financial Projections Statement does not have
to include commercially confidential information.
(7) The Under Treasurer is to certify to the effect that --
(a) the financial projections, and the economic forecasts and
10 assumptions, in the Government Financial Projections
Statement were prepared by the Under Treasurer;
(b) the statement takes account of all relevant information
available to the Under Treasurer on the budget planning
cut-off date;
15 (c) the statement sets out the implications of all relevant
decisions that were known to the Under Treasurer on
that date; and
(d) the economic assumptions on which the financial
projections in the statement are based were finalized on
20 the date set out in the certificate.
13. Government Mid-year Financial Projections Statements
(1) The Treasurer is to release a Government Mid-year Financial
Projections Statement not later than 15 February in each budget
year.
25 (2) A Government Mid-year Financial Projections Statement is to
include the following --
(a) financial projections for the Government for the budget
year and the 3 following financial years;
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Government Financial Responsibility Bill 1998
Part 2 Government financial planning and reporting
s. 13
(b) an account of the economic and other assumptions on
which the financial projections are based;
(c) an explanation of the implications of the financial
projections for meeting the financial targets set out in
5 the last Government Financial Strategy Statement;
(d) an analysis of the degree to which the financial
projections are likely to be affected by changes in the
circumstances on which the economic and other
assumptions are based;
10 (e) a statement of any risks, quantified as far as practicable,
that could materially affect the financial projections,
including particulars of any contingent liabilities and
any government negotiations that have not been
finalized;
15 (f) a certificate by the Under Treasurer under
subsection (5).
(3) When preparing a Government Mid-year Financial Projections
Statement, the Under Treasurer is to take account of the
following --
20 (a) the implications of all relevant decisions that were taken
by the Government before the cut-off date referred to in
the certificate under subsection (5) and that are known
to the Under Treasurer (excluding any interim decisions
taken in the course of planning the budget to be brought
25 down in the next budget year);
(b) any other relevant information available to the Under
Treasurer before the cut-off date noted in the certificate
under subsection (5).
(4) The Government Mid-year Financial Projections Statement does
30 not have to include commercially confidential information.
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Government Financial Responsibility Bill 1998
Government financial planning and reporting Part 2
s. 13
(5) The Under Treasurer is to certify to the effect that --
(a) the financial projections, and the economic forecasts and
assumptions, in the Government Mid-year Financial
Projections Statement were prepared by the Under
5 Treasurer;
(b) the statement takes account of all relevant information
available to the Under Treasurer on the cut-off date
noted in the certificate;
(c) the statement sets out the implications of all relevant
10 decisions that were known to the Under Treasurer on the
cut-off date; and
(d) the economic assumptions on which the financial
projections in the statement are based were finalized on
the date set out in the certificate.
15 (6) If any information to be included in a Government Mid-year
Financial Projections Statement under subsection (2) is the same
as information included in the last Government Financial
Projections Statement to be released then, instead of setting out
the information in full, the Government Mid-year Financial
20 Projections Statement may include a summary of the
information, with a note to the effect that the information is
unchanged from the previous statement.
(7) If --
(a) the last financial projections statement released before a
25 Government Mid-year Financial Projections Statement
is released was a Pre-election Financial Projections
Statement; and
(b) the information to be included in the Government
Mid-year Financial Projections Statement is the same as
30 information included in the Pre-election Financial
Projections Statement,
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Government Financial Responsibility Bill 1998
Part 2 Government financial planning and reporting
s. 14
then, instead of setting out the information in full, the
Government Mid-year Financial Projections Statement may
consist of a statement to the effect that the information given in
the Pre-election Financial Projections Statement is still current.
5 14. Government Financial Results Report
(1) The Treasurer is to release a Government Financial Results
Report for each budget year within 3 months after the end of the
budget year.
(2) A Government Financial Results Report must --
10 (a) be prepared in accordance with the Australian
Accounting Standards;
(b) include the financial result for the budget year;
(c) include an explanation of the factors and considerations
that contributed to any material differences between the
15 financial result and the financial projections; and
(d) include an explanation of the factors and considerations
that contributed to any material differences between the
financial result and the Government's medium-term
targets applying at the beginning of the budget year.
20 15. Pre-election Financial Projections Statements
(1) The Treasurer is to release a Pre-election Financial Projections
Statement within 14 days after the Legislative Assembly is
dissolved or expires.
(2) A Pre-election Financial Projections Statement is to include the
25 following --
(a) financial projections for the Government for the budget
year and the 3 following financial years;
(b) an account of the economic and other assumptions on
which the financial projections are based;
page 12
Government Financial Responsibility Bill 1998
Government financial planning and reporting Part 2
s. 15
(c) an explanation of the implications of the financial
projections for meeting the financial targets set out in
the last Government Financial Strategy Statement;
(d) an analysis of the degree to which the financial
5 projections are likely to be affected by changes in the
circumstances on which the economic and other
assumptions are based;
(e) a statement of any risks, quantified as far as practicable,
that could materially affect the financial projections,
10 including particulars of any contingent liabilities and
any government negotiations that have not been
finalized;
(f) a certificate by the Under Treasurer under
subsection (6).
15 (3) When preparing a Pre-election Financial Projections Statement,
the Under Treasurer is to take account of the following --
(a) the implications of all relevant decisions that were taken
by the Government before the Legislative Assembly was
dissolved or expired and that are known to the Under
20 Treasurer (excluding any interim decisions taken in the
course of planning the next budget to be brought down);
(b) any other information available to the Under Treasurer
at the end of 3 days after the Legislative Assembly was
dissolved or expired.
25 (4) Within 3 days after the dissolution or expiry of the Legislative
Assembly, the Treasurer is to give the Under Treasurer all
available information about government decisions taken before
the date of dissolution or expiry --
(a) that has or could have material financial or economic
30 implications relevant to preparing the Pre-election
Financial Projections Statement; and
page 13
Government Financial Responsibility Bill 1998
Part 2 Government financial planning and reporting
s. 16
(b) that the Under Treasurer could not reasonably be
expected to have already.
(5) The Pre-election Financial Projections Statement does not have
to include commercially confidential information.
5 (6) The Under Treasurer is to certify to the effect that --
(a) the financial projections, and the economic forecasts and
assumptions, in the Pre-election Financial Projections
Statement were prepared by the Under Treasurer;
(b) the statement takes account of all relevant information
10 available to the Under Treasurer at the end of 3 days
after the Legislative Assembly was dissolved or expired;
(c) the statement sets out the implications of all relevant
decisions that were known to the Under Treasurer at that
time; and
15 (d) the economic assumptions on which the financial
projections in the statement are based were finalized on
the date set out in the certificate.
(7) If any information to be included in a Pre-election Financial
Projections Statement under subsection (2) is the same as
20 information included in the last Government Financial
Projections Statement or the last Government Mid-year
Financial Projections Statement (whichever was released later)
then, instead of setting out the information in full, the
Pre-election Financial Projections Statement may consist of a
25 statement to the effect that the information in the previous
statement is still current.
16. Costing pre-election commitments
(1) The Treasurer may request the Under Treasurer to prepare
costings of policies that have been publicly announced by the
30 Government in a pre-election period.
page 14
Government Financial Responsibility Bill 1998
Government financial planning and reporting Part 2
s. 16
(2) The leader of a party in opposition that was represented in the
Legislative Assembly when the Legislative Assembly was
dissolved or expired may ask the Treasurer for a costing of a
policy that has been publicly announced by the party during the
5 pre-election period after the dissolution or expiry.
(3) The Treasurer may ask the Under Treasurer to prepare a costing
requested under subsection (2).
(4) A request for a policy costing must --
(a) be in writing;
10 (b) outline the policy to be costed, giving enough
information for the Under Treasurer to be able to
prepare the costing; and
(c) state the purpose or intention of the policy.
(5) A person who requests a policy costing to be prepared may
15 withdraw the request by writing to the Under Treasurer.
(6) When the Under Treasurer prepares a policy costing, the Under
Treasurer is to --
(a) send a copy of the policy costing, through the Treasurer,
to the person who requested it; and
20 (b) make the policy costing publicly available.
(7) The Under Treasurer is not obliged to prepare or finish
preparing a policy costing if insufficient information or time is
available to do so before the end of the pre-election period.
(8) If the Under Treasurer is unable to prepare or finish a policy
25 costing before the end of the pre-election period, the Under
Treasurer is to inform the person who requested the costing to
that effect, by writing to the person through the Treasurer.
page 15
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