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Secretary’s introduction

Dr Steven Kennedy PSM, Secretary, Treasury

Treasury is the Australian Government’s lead economic adviser.

We put in place policies and programs to achieve strong and sustainable economic and fiscal outcomes for Australians.

This significant responsibility relies on the professionalism, judgement and expertise of our staff. Therefore, the plan has a strong focus on employee wellbeing, integrity and embedding an inclusive culture.

As outlined in the plan, Treasury's operating environment continues to be shaped by significant uncertainty and structural changes.

During 2023–24, our expert advice helped the government face the challenges of persistent elevated inflation and subdued global growth. While we will continue to respond to the immediate issues in 2024–25, we will also continue to pursue long‑term national wellbeing and prosperity.

This means we place a premium on building relationships across Commonwealth, state and territory governments, as well as with international counterparts and external stakeholders. These partnerships enable us to deliver high quality economic advice, foster good corporate conduct and promote well‑functioning markets.

I am pleased to present our Corporate Plan as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). This is our primary planning document and has been prepared in accordance with the requirements of the PGPA Act.

I look forward to reporting on our progress in the annual performance statements included in the Treasury Annual Report.

Dr Steven Kennedy PSM
Secretary

August 2024

Treasury Corporate Plan
2024–25 to 2027–28

Our purpose

We provide advice to the government and implement policies and programs to achieve strong and sustainable economic and fiscal outcomes for Australians.

Our operating context

  • Navigating complexity and uncertainty
  • Managing the challenges in the medium term
  • Promoting strong and sustainable outcomes

Our areas of focus

  • A strong and sustainable economic and fiscal environment
  • Effective government policies, programs and regulation
  • Organisational capability, pro‑integrity culture, sound governance and assurance

Operating context

Environment

Australia’s economy, and Treasury’s operating environment, will continue to be shaped by significant uncertainty and complex structural changes now and over the coming decades.

Navigating complexity and uncertainty

The economic situation in which we operate, globally and domestically, remains highly complex and uncertain. Global growth is expected to remain subdued over the next few years. Inflation has peaked but remains elevated in some countries. The effects of high inflation and heightened geopolitical tensions will continue to weigh on the outlook.

The Australian economy is not immune to these challenges. Growth has slowed over the past year in response to this global volatility, along with elevated inflation and higher interest rates. However, Australia is well‑placed to navigate these challenges. The unemployment rate is very low by historical standards, wages growth has picked up, there is a solid pipeline of business investment and higher commodity prices are supporting national income. Although inflation remains elevated, it has moderated and is now less than half its peak in 2022.

There remains considerable uncertainty around the outlook for the domestic and global economy. Globally, monetary policy settings could remain tight for an extended period if inflation proves more persistent. Heightened geopolitical tensions in the Middle East have added to the risks associated with Russia’s invasion of Ukraine. A further escalation in geopolitical tensions could add to energy costs, disrupt international trade, and slow global growth. The outlook for the Chinese economy also remains uncertain.

Domestically, inflation could be more persistent, which would dampen household spending. If productivity and household consumption do not pick up as quickly as expected, this would have implications for unemployment and the real economy.

Managing the challenges in the medium term

Beyond the immediate challenges, complex structural changes will increasingly form part of our economic environment. The growing care economy, expanding use of data and digital technology, climate change and the net zero transformation will all have a significant bearing on our future economic and fiscal performance.

Similar to last year, geopolitical tensions continue to have the potential to complicate the climate and digital transformations, affect trade and investment flows, and make shocks more likely. Our economic and fiscal performance hinges on the ability to harness the opportunities that come with these transitions, and manage the challenges while lifting productivity.

Stronger competition policy is essential. Effective competition policies can help mitigate the risks associated with monopolistic practices and market concentration, which can stifle growth and hinder economic resilience. By promoting a more competitive market environment, we can drive innovation, enhance productivity, and ensure fair pricing for consumers.

We will continue advising the government on reforms to:

  • boost productivity
  • promote well‑functioning markets
  • review competition policy settings
  • foster appropriate corporate conduct
  • ensure the tax system remains equitable and adequate to fund the government’s spending commitments.

Promoting strong and sustainable outcomes

Treasury will continue to monitor evolving economic conditions, including inflation trends. We will continue to advise on achieving strong and sustainable economic and fiscal outcomes. We will also provide advice to government on how to strengthen the budget to prepare for future economic shocks and manage long‑term fiscal pressures.

In 2024–25, Treasury will deliver the 2025–26 Commonwealth Budget and a review of the Report on Government Services.

We will continue to support the economic transformation required to achieve the government’s climate change goals. This includes delivering whole‑of‑economy modelling to inform the government’s Net Zero Plan, an ambitious Sustainable Finance Roadmap and supporting suite of policies, and policy options to address energy system and price pressures.

We will implement the National Interest Framework announced as part of the government’s Future Made in Australia package. We will advise on industrial priorities relating to net zero and economic resilience and security. And we will consult on the establishment of a ‘front door’ for investors.

Treasury will strengthen its risk‑based approach to assessing foreign investment proposals. We will focus on streamlining low‑risk investments to bring in the capital Australia needs quickly. At the same time, we will increase scrutiny on high‑risk investments and bolster our compliance monitoring and enforcement activities. This will ensure Australia attracts the significant foreign capital needed to support our priorities, while protecting our national interest in an increasingly complex economic and geostrategic environment.

Housing conditions remain challenging, and we will continue to advise on approaches to improve housing affordability and supply. This includes supporting the National Housing Supply and Affordability Council in providing independent advice to government and building an evidence base to improve outcomes across the housing spectrum. Treasury will also continue to work with stakeholders to implement the government’s housing initiatives such as the National Housing Accord and programs delivered by Housing Australia. We will continue to support a focus on wellbeing and provide advice to help improve economic equality to reduce entrenched disadvantage.

Treasury will continue to support the government in further strengthening Australia’s key economic institutions. This includes working with the Council of Financial Regulators and other stakeholders to implement the Regulatory Initiatives Grid and sustainable finance strategy and manage the digital transformation occurring within payments and the financial system more broadly.

Capability

Our people

Treasury’s success relies on having a capable and professional workforce. We are committed to investing in our people to ensure we deliver on our areas of focus and achieve our purpose. We value employee wellbeing and integrity and seek to embed a supportive culture that enables people to thrive.

In 2024–25 Treasury will implement its next Strategic Workforce Plan (the Plan), which aims to improve our workforce capabilities and management practices. This will ensure Treasury can attract, develop and retain the skills we need. The Plan identifies four priorities:

  • knowing our workforce – to strengthen understanding of our workforce capability and capacity to better respond to challenges
  • attracting our workforce – by promoting and enhancing our status as an employer of choice to safeguard against future workforce challenges
  • retaining our workforce – by providing career and development opportunities to retain talent longer and build a pipeline of future specialists and leaders
  • optimising our workforce practices – by improving operating processes and practices in response to changing priorities and requirements.

Treasury is committed to being an Australian Public Service (APS) employer of choice. We will develop strategies in line with the Plan to promote the careers available and the benefits of working at Treasury. Implementation of the Plan will be complemented by our continued efforts to foster safe, respectful and accessible workplaces. The Plan is underpinned by two core strategies:

  • the Inclusion and Diversity Strategy 2023–28 – where difference is celebrated and used to activate innovative ideas, policies and practices
  • the Healthy Minds: Mental Wellbeing Strategy 2022–25 – guiding the maturity of our approach to fostering a safe and healthy workplace.

Treasury is committed to prioritising APS employment, strengthening capability, and taking considered resourcing decisions aligned with the Plan. Treasury supports APS reform and will seek to reduce outsourcing of core work in line with the APS Strategic Commissioning Framework. Our targets for 2024–25 focus on reduced outsourcing of program management work, with an expected reduction of $290,907 in 2024–25 in outsourcing expenditure.

Our pro-integrity culture

Treasury is committed to the highest standards of integrity, professionalism and ethical behaviour, including through:

  • building and maintaining a pro‑integrity culture
  • ensuring integrity is embedded in everything we do as an organisation, and our employees are supported to do the right thing at the right time.

Treasury’s Integrity Strategy 2024–2028 reflects our commitment and approach to building and sustaining trust with government, stakeholders, and the Australian people.

Treasury’s Integrity Framework is a core foundation of the strategy (Figure 1). The Framework brings together standards, legislation, policies and structures to foster integrity and reduce the risk of corruption. In 2024–25, Treasury will continue to embed the Strategy and pro‑integrity culture into everything we do. We will focus on values, behaviours, and institutional practices, and strengthening anti‑corruption measures and reporting.

Figure 1 – Treasury’s Integrity Framework
Treasury’s Integrity Framework. Link to text description follows image.

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The way we work – cooperation and collaboration

Effective stakeholder engagement is core to Treasury’s work. It helps us deliver timely, relevant and influential advice. Stakeholder perspectives improve our advice to government, and the engagement process deepens our relationships with the Australian community.

Treasury’s stakeholder group is broad and diverse. It includes peak bodies, regulators, consumers, academics, business, unions, community groups and other government entities at the international, Commonwealth and state and territory levels. It also includes bilateral and multilateral international cooperation.

Treasury remains committed to fostering a culture of effective stakeholder engagement. We will review our Stakeholder Engagement Strategy in 2024, with a view to reinforcing the importance of strong engagement practices and relationships. Building and maintaining these cooperative relationships enables Treasury to continue delivering informed and insightful advice. The corporate plan sets out the arrangements for measuring the effectiveness of our stakeholder engagement and consultation.

We work closely with the other agencies in the Treasury portfolio, across the Australian Government and with international institutions to deliver our shared objectives and Treasury’s purpose. Treasury uses data from the Australian Prudential Regulation Authority and our work with the Organisation for Economic Co‑operation and Development, International Monetary Fund, and the World Bank to demonstrate our performance.

Information and communications technology

Treasury continues to focus on improving its digital, data and cyber security capabilities. This allows us to enhance our effectiveness, improve efficiency, remain relevant and meet stakeholder expectations while working in a safe and secure way.

Improved capabilities allow Treasury to protect against ongoing and emerging cyber threats while creating simple and positive digital experiences for stakeholders. Investment in data capability means we can use contemporary technologies to do our policy work.

Our Digital and Cyber Security Strategy 2024–26 links to our purpose. It focuses on maximising the return on recent technology investments by embedding and enhancing existing technology. It also ensures we support our employees to adopt and use digital solutions. The Strategy guides continued investment to meet Treasury’s needs. This will allow us to deliver on our purpose while considering emerging technologies and whole‑of‑government initiatives that impact the broader operating environment.

During 2024–25, Treasury will continue to implement its first Enterprise Data Strategy. This Strategy sets a vision and direction for investment in data capability, governance and use across Treasury and complements the Digital and Cyber Security Strategy.

Risk oversight and management

Risk management at Treasury is about enabling good decision making and robust, high‑quality and timely advice to government.

Our risk management policy and framework support Treasury to meet its obligations under section 16 of the PGPA Act in line with the Commonwealth Risk Management Policy.

In 2024–25, we will finalise updates to our already robust risk management policy and framework. We will continue to embed risk‑based decision‑making and practices in our day‑to‑day operations and governance arrangements. This includes incorporation of climate risk and opportunity in our reporting processes. We will strengthen our risk management by integrating risk with other governance and strategic planning models. This will help build risk capability and further mature our approach.

A suite of tools guide implementation of the risk policy and framework to promote consistency in risk identification, communication, monitoring and decision‑making. We identify and manage risk and opportunities at the group and program level, with oversight provided by our governance committees. At the operational level our focus is on risk identification, assessment, and effective controls, with escalation through appropriate governance channels.

In 2024–25, Treasury will complete its first enterprise‑wide climate risk and opportunity assessment under the Commonwealth Climate Risk and Opportunity Management Program. Treasury’s risk management arrangements are reviewed on a cyclical basis to ensure currency and effectiveness.

Risk appetite and tolerance

Treasury strives to achieve the right balance between engaging with risk to effectively deliver our policy and program outcomes, while upholding accountability requirements and protecting the reputation of the Department and our status as trusted advisers.

To deliver on our purpose, we have a moderate appetite to engage with risk. Treasury must consider our appetite for pursuing risk in the context of the potential consequences of each risk we take, that is, our risk tolerance. Our tolerance for risk varies depending on the activity. Acceptance of risk within the agreed tolerance range is based on good professional judgement. This requires everyone to understand potential threats and opportunities and focus on ensuring there are sensible measures in place to mitigate and manage undesirable outcomes.

Enterprise risks

Treasury has identified risks that may impact our ability to deliver our purpose and priorities, and the opportunities we must pursue and realise.

Influential, impactful and trusted policy advice and analysis

Enterprise risk 2024–25 Risk tolerance
1. Relationship risk

We build and leverage our relationships with government, portfolio entities, and other stakeholders to enable delivery of timely, relevant, and influential advice and analysis.

Tolerance for relationship risk ranges from low to medium.For Enterprise Risk 1 the risk tolerance rating runs from the lower end of green (low) to the lower end of yellow (medium)
2. Modelling and analytical capability risk

Our investment in modelling and analytical capability supports the provision of advice which is reliable and timely in a rapidly changing economic environment, including the transition to a net zero economy; at times this may require an iterative approach to delivering and improving our analysis.

Tolerance for modelling and analytical capability risk ranges from low to high.For Enterprise Risk 2 the risk tolerance rating runs from the higher end of green (low) to the higher end of yellow (medium)
3. Policy and regulatory reform risk

We realise opportunities to drive policy and regulatory reform to improve Australia’s economic outcomes, acknowledging the ultimate decisions sit with government.

Tolerance for policy and regulatory reform risk ranges from low to high.For Enterprise Risk 3 the risk tolerance rating runs from the higher end of green (low) to the higher end of yellow (medium)
Risk management strategy

Effective stakeholder engagement is core to establishing and maintaining trust and is embedded into our processes through our Stakeholder Engagement Strategy and dedicated engagement functions.

Robust arrangements are in place to protect the integrity of policy consultation activities.

We measure the accuracy, timeliness, and robustness of our analysis to assess our performance and inform areas of improvement.

We focus on key threats and opportunities with respect to economic outcomes, including climate change and the net zero transition.

The risk appetite and tolerance settings encourage engagement with opportunities to maximise the benefit they represent.

Delivery of the economic agenda

Enterprise risk 2024–25 Risk tolerance
4. Economic policy and program risk

We deliver the government’s economic policy and program priorities in a timely manner and realise the intended benefits; at times this may require pursuing innovative and time critical solutions.

Tolerance for economic policy and program risk ranges from low to high.For Enterprise Risk 4 the risk tolerance rating runs from the higher end of green (low) to the higher end of yellow (medium)
5. Legislative program risk
We manage our legislation program efficiently with legally robust laws that reflect government priorities.
Tolerance for legislative program risk ranges from low to medium.For Enterprise Risk 5 the risk tolerance rating runs from the lower end of green (low) to the lower end of yellow (medium)
6. Payment risk

Our payments to the states and territories are timely and accurate, and we meet our international obligations.

Tolerance for payment risk ranges from very low to low.For Enterprise Risk 6 the risk tolerance rating runs from the higher end of blue (very low) to the higher end of green (low)
7. Regulation administration risk

Our administration of regulation is effective, flexible, transparent, and fair, and we avoid creating unnecessary burdens on, or uncertainty for, industry and consumers.

Tolerance for regulation administration risk ranges from low to high.For Enterprise Risk 7 the risk tolerance rating runs from the lower end of green (low) to the higher end of yellow (medium)
Risk management strategy

Targeted risk assessments and established business plans minimise possible disruptions and shield us from emerging risks.

We engage broadly across the diverse range of our stakeholders, including affected parties. Treasury’s activities are documented, and reviewed through governance and assurance mechanisms to ensure they align with the expectations of government and interested parties including the wider public.

Outcomes are assessed against pre‑established performance indicators that are open to scrutiny through reporting processes including Treasury’s annual report.

People, capability and culture

Enterprise risk 2024–25 Risk tolerance
8. Staff capability risk

We value, develop and use the full potential of our staff, including the attraction, retention and development of talent and future leaders.

Tolerance for staff capability risk ranges from low to high.For Enterprise Risk 8 the risk tolerance rating runs from the lower end of green (low) to the higher end of yellow (medium)
9. Culture risk

We sustain and embed a diverse and inclusive culture which promotes safety, wellbeing, compliance, accountability, ethics and integrity, business resilience and security awareness in our people to support our workforce, relationships, reputation, and ability to deliver.

Tolerance for culture risk ranges from very low to low.For Enterprise Risk 9 the risk tolerance rating runs from the higher end of blue (very low) to the higher end of green (low)
10. IT systems and capability risk

We invest in information management systems and IT capability to minimise risk of loss or misuse of our information, and missed opportunities to transform our information management culture, and increase efficiency and effectiveness.

Tolerance for IT systems and capability risk ranges from low to medium.For Enterprise Risk 10 the risk tolerance rating runs from the higher end of green (low) to the higher end of yellow (medium)
Risk management strategy

We invest in our people and embed appropriate cultural behaviours through defined leadership expectations and responsibilities; contemporary workplace strategies, policies and procedures; and providing a safe environment where inclusion, diversity, wellbeing, collaboration, sharing of information, innovation, and continual learning is encouraged and supported at all levels.

Our Enterprise Information Strategy outlines strategic priorities and is our roadmap to optimising our information management practices, creating a positive information experience for all, transforming our information management culture, and becoming a future focused organisation with investments in people, process and technology over a multi‑year period.

Governance

An impactful and efficient governance structure enables Treasury to achieve our purpose and meet our performance objectives.

Our enterprise governance committees provide transparency, direction and oversight of the risks and complex strategic and operational matters that affect Treasury. In 2024–25, we will continue to embed our governance practice throughout the department and ensure our governance operating model enables management to exercise effective oversight. This includes incorporating climate risk and opportunity reporting into existing governance structures. This means we can ensure governance arrangements support Treasury’s resilience to climate risk and its capability to realise opportunities in the net zero transition.

Figure 2 – Treasury’s governance structure
Treasury’s governance committees structure. Link to text description follows image.

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Our approach to performance

The Corporate Plan 2024–25 is Treasury’s primary planning document.

Treasury continues to improve our performance framework to better reflect what we do and to tell our story. Treasury reviews the performance framework annually for completeness.

Our performance measures reflect a range of qualitative and quantitative measures. We refine our performance assessment methodologies through each reporting cycle. We rely on existing data sources, including publicly available and third party. Further insights come from an independent stakeholder survey and structured interviews with Treasury ministers or their delegates. This approach informs our decision‑making and improves the reliability and verifiability of performance reporting over time.

Treasury’s Foreign Investment Framework and Payment Times Reporting Scheme are included in the Corporate Plan in accordance with the official guidance issued by the Department of Finance on Regulator Performance.

Treasury is progressing a Ministerial Statement of Expectations and the Regulator Statement of Intent for the Foreign Investment Framework and will make these publicly available at foreigninvestment.gov.au.

The Ministerial Statement of Expectations and the Regulator Statement of Intent for the Payment Times Reporting Scheme are available on the regulator’s website paymenttimes.gov.au.

Key activity 1: Treasury’s policy advice and analysis is impactful, informed and influential

Intended result 1.1

Treasury’s policy advice, including economic and fiscal policy advice, reflects a whole of economy view.

Performance measure 1
Proportion of Treasury ministers, key government entities and stakeholders that rate Treasury advice highly. (Program 1.1 – Department of the Treasury)
Targets Ministerial feedback questionnaire Stakeholder survey
2024–25 83% 80%
2025–26 83% 80%
2026–27 100% 80%
2027–28 100% 80%
Target rationale

Treasury established an 80% target for the ministerial feedback questionnaire and stakeholder survey based on 2021–22 survey results. Treasury increased the target for the ministerial feedback questionnaire for 2024–25 and forward years to align with the methodology for assessing performance and the prior year’s performance results. Treasury has not increased the stakeholder survey target in 2024–25 and the forward years based on performance results.

Methodology

Independent stakeholder survey with key government entities and stakeholders conducted by a third‑party provider, and structured interviews with Treasury ministers or their delegates. The assessment of the ministerial feedback questionnaire will be weighted so that the Treasurer’s responses account for 50% of the overall percentage measure. Stakeholder selection is governed by transparent stakeholder selection rules.

Measure type

Effectiveness measure.

Data sources

Stakeholder lists and responses to the annual stakeholder feedback survey and the ministerial feedback questionnaire from Treasury Ministers or their delegates.

Changes from previous year

For 2024–25 Treasury has separated the target by stakeholder type into ministerial feedback questionnaire and stakeholder survey. The target for the ministerial feedback questionnaire has increased from 80% to 83% for 2024–25 and increases to 100% in the forward years. The target for the stakeholder survey remains at 80%.

Intended result 1.2

Treasury forecasts inform policy advice to government and are in an acceptable range of variance with actuals.

Performance measure 2
Variance between actual real Gross Domestic Product (GDP) and forecast real GDP. (Program 1.1 – Department of the Treasury)
Targets
2024–25 Real GDP falls within 70% confidence interval of forecast real GDP
2025–26 Real GDP falls within 70% confidence interval of forecast real GDP
2026–27 Real GDP falls within 70% confidence interval of forecast real GDP
2027–28 Real GDP falls within 70% confidence interval of forecast real GDP
Target rationale

Consistency of economic and fiscal forecasts and projections are important for government decision‑making. The confidence interval is a widely used metric that provides a guide to the degree of uncertainty around forecasts, assuming that forecast errors are consistent with the distribution of past forecast errors. The choice of a 70% confidence interval is consistent with the narrower of the two confidence intervals published in Budget papers (the other confidence interval being 90%) which is also consistent with the narrower of the two confidence intervals published by the Reserve Bank of Australia for their forecasts.

Methodology

Assessment of the variance between forecasts and outcomes in each year for real GDP growth. Real GDP forecasts incorporate assumptions that include exchange rates, interest rates, commodity prices and population growth. The confidence interval is a widely used metric that provides a guide to the degree of uncertainty around forecasts. The 70% confidence interval means there is a 70% chance that the outcome falls in this range. This assumes future forecast errors are consistent with the distribution of past forecast errors from 1998–99 onwards.

Measure type

Effectiveness measure.

Data sources

Australian Bureau of Statistics Australian National Accounts: National Income, Expenditure and Product and Budget papers.

Changes from previous year

Treasury developed this performance measure for 2022–23 and there are no changes for the 2024–25 reporting period.

Performance measure 3
Variance between actual total tax receipts (excluding company tax) and forecast. (Program 1.1 – Department of the Treasury)
Targets
2024–25 Total tax receipts (excluding company tax) for 2024–25 falls within 70% confidence interval of forecast at the 2024–25 Budget
2025–26 Total tax receipts (excluding company tax) for 2025–26 falls within 70% confidence interval of forecast at the 2025–26 Budget
2026–27 Total tax receipts (excluding company tax) for 2026–27 falls within 70% confidence interval of forecast at the 2026–27 Budget
2027–28 Total tax receipts (excluding company tax) for 2027–28 falls within 70% confidence interval of forecast at the 2027–28 Budget
Target rationale

Consistency of economic and fiscal forecasts and projections are important for government decision‑making. The confidence interval is a widely used metric that provides a guide to the degree of uncertainty around forecasts, assuming that forecast errors are consistent with the distribution of past forecast errors. The choice of a 70% confidence interval is consistent with the narrower of the two confidence intervals published in Budget papers (the other confidence interval being 90%) which is also consistent with the narrower of the two confidence intervals published by the Reserve Bank of Australia for their forecasts.

Methodology

Assessment of the variance between forecasts and outcomes in each year for actual total tax receipts (excluding company tax). Tax receipts forecasts are generally prepared using a ‘base plus growth’ methodology. The last outcome for each head of revenue is the base to which growth rates are applied, using appropriate economic parameters. Estimates for the current year also incorporate recent trends in tax collections. The confidence interval is a widely used metric that provides a guide to the degree of uncertainty around forecasts and a basis for assessing forecasting performance. The 70% confidence interval means there is a 70% chance that the outcome falls in this range. This assumes future forecast errors are consistent with the distribution of past forecast errors from 1998–99 onwards.

Measure type

Effectiveness measure.

Data sources

Australian Bureau of Statistics Australian National Accounts: National Income, Expenditure and Product, Budget papers and Final Budget Outcome.

Changes from previous year

Treasury developed this performance measure for 2022–23 and there are no changes for the 2024–25 reporting period.

Intended result 1.3

Budgets, fiscal and economic updates are timely and comply with the Charter of Budget Honesty.

Performance measure 4
Delivered in line with the requirements of the Charter of Budget Honesty Act 1998 (Charter). Program 1.1 – Department of the Treasury)
Targets
2024–25 100%
2025–26 100%
2026–27 100%
2027–28 100%
Target rationale

The Charter includes specific timelines and requirements that must be met. Treasury has delivered in accordance with the Charter over previous reporting periods. The 100% target is an indication of the importance of these deliverables.

Methodology

Assessment against the requirements and timeframes for the public release of the deliverables set out in the Charter for the 2024–25 reporting period. The deliverables for performance reporting are the 2023–24 Final Budget Outcome, 2024–25 Mid‑year Economic and Fiscal Outlook, 2025–26 Budget. Assessment will include pre‑election economic and fiscal outlook, costing of election commitments, and additional statement of Commonwealth stock and securities only if the relevant conditions of Part 7, 8 or 9 of the Charter are met.

Measure type

Output measure in relation to compliance. Timeliness measure as a proxy for efficiency.

Data sources

The released documents for the Budget, Final Budget Outcome, Mid‑year Economic and Fiscal Outlook, the pre‑election economic and fiscal outlook (if required), the costing of election commitments (if required) and additional statement of Commonwealth stock and securities (if required).

Changes from previous year

The 2024–25 performance measure includes the additional assessment against the requirements and timeframes of the Charter for the pre‑election economic and fiscal outlook report and the costing of election commitments. The 2024–25 requirements do not include the Intergenerational Report.

Key activity 2: Treasury’s implementation of policies and regulation supports Australia’s economy and national interest

Intended result 2.1

Treasury’s policy advice on markets and regulator issues assists the Australian economy to be competitive and key markets to be dynamic.

Performance measure 5
Australia maintains or improves its 2022 score on markets related inputs to the World Competitiveness Ranking produced by the Institute for Management Development. (Program 1.3 – Support for Markets and Business)
Targets
2024–25 Competitiveness score ≥105
2025–26 Competitiveness score ≥105
2026–27 Competitiveness score ≥105
2027–28 Competitiveness score ≥105
Target rationale

Treasury developed the competitiveness score of 105 for the 2022–23 and forward year reporting periods based on the 2022 data for 15 criteria of the World Competitiveness Rankings. The 15 criteria relate to areas of Treasury’s policy responsibility. The target reflects the performance goal of maintaining or improving Australia’s competitiveness in areas related to market performance that are within the policy responsibilities of Treasury.

Methodology

The Institute for Management Development (IMD) produces a World Competitiveness Ranking based on a range of criteria. Fifteen of these criteria relate to the Treasury in the areas of policy responsibility for financial system, investment, retirement incomes, provision of actuarial services, and corporations, competition, and consumer data and law. Other performance measures do not assess these policy areas. IMD calculates the average value for each economy for publication in the IMD World Competitiveness Yearbook each year. Treasury will use the results against the 15 criteria to construct a competitiveness score relevant to this performance measure as an indicator of Treasury’s policy effectiveness.

Measure type

Effectiveness measure.

Changes from previous year

Treasury established this performance measure in the Corporate Plan 2022–23 with the target set during the first year. The performance measure includes the target for 2024–25 and forward years.

Intended result 2.2

Treasury’s policy advice on the prudential regulatory framework contributes to the stability of Australia's financial system and provides confidence to consumers and investors, supporting economic growth.

Performance measure 6
No disorderly failures of institutions prudentially regulated in Australia. (Program 1.1 – Department of the Treasury)
Targets
2024–25 No disorderly failures of prudentially regulated institutions
2025–26 No disorderly failures of prudentially regulated institutions
2026–27 No disorderly failures of prudentially regulated institutions
2027–28 No disorderly failures of prudentially regulated institutions
Target rationale

No disorderly failures of prudentially regulated institutions supports financial system stability and economic growth. Treasury’s policy advice on the regulatory framework targets very low, but not zero, incidences of failure of the regulated entities. The orderly transfer or exit of prudentially regulated entities is part of a competitive financial system.

Methodology

A disorderly failure of a prudentially regulated institution occurs when there is material disruption to the critical economic functions and services that the institution provides, and that this results in significant impacts on the financial system and the wider economy. Treasury will rely on regular bilateral engagement with the Australian Prudential Regulation Authority (APRA) to obtain information on prudentially regulated institutions that have failed or are at significant risk of failure.

Measure type

Effectiveness measure.

Data sources

Australian Prudential Regulation Authority data for the Money Protection Ratio and register of prudentially regulated entities at the beginning and end of the relevant reporting period.

Changes from previous year

Treasury established this performance measure in the Corporate Plan 2022–23 and there are no changes for the 2024–25 reporting period.

Intended result 2.3

Treasury’s policy advice and implementation of policy for the tax system supports a stable, resilient, and sustainable economy.

Performance measure 7
Treasury contributes to the development of the Organisation for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting Action 1.
Targets
2024–25 Australia implements legislation to give domestic effect to the undertaxed payments rule under Pillar Two in accordance with the progress and timelines of the OECD (subject to government decision to implement the Pillars)
2025–26 This performance measure will not continue in 2025–26 and the forward years
2026–27
2027–28
Target rationale

Treasury’s contribution to the OECD Inclusive Framework will establish Base Erosion and Profit Shifting performance targets for future years. These targets are necessarily based on OECD timelines and progress and are focused on domestic implementation in accordance with OECD progress. In the event that the OECD timelines are delayed, the targets will be adjusted to require Australia to be on track to deliver domestic implementation in line with the new OECD timeframes.

Pillar One of the OECD/G20 Two‑Pillar Solution is expected to be finalised in mid‑2024 and has not been included in the 2024–25 target.

Methodology

Treasury is contributing to the development of the Base Erosion and Profit Shifting Action 1 Pillars One and Two as part of the Organisation for Economic Co‑operation and Development (OECD) Inclusive Framework. Treasury will demonstrate its contribution through continuing advice to government, stakeholder consultation, participation in international negotiation and bilateral engagement, and liaison with other government agencies. Treasury will assess the supporting evidence against the pre‑determined criteria to determine progress towards the targets.

Measure type

Output measure.

Data sources

Records of advice to government, records of OECD meetings and other working party meetings, bilateral, government agency and external stakeholder meetings.

Changes from previous year

Treasury established this performance measure in the Corporate Plan 2022–23. The targets have been determined for the 2024–25 reporting period based on OECD timeframes.

This measure will not continue after 2024–25. Pillar One of the OECD/G20 Two‑Pillar Solution is expected to be finalised in mid‑2024, and Pillar Two will be implemented in Australia in 2024–25. This will complete Treasury’s contribution to the development of the OECD Inclusive Framework on Base Erosion and Profit Shifting Action 1.

Intended result 2.4

Treasury’s delivery of the legislative program is in line with the government’s priorities and within the required timeframes.

Performance measure 8
Proportion of legislative measures committed for delivery at the beginning of a parliamentary sitting period, adjusted for any government reprioritisation of legislative measures during the sitting period, and compared to the actual number delivered. (Program 1.1 – Department of the Treasury)
Targets
2024–25 91%
2025–26 91%
2026–27 92%
2027–28 92%
Target rationale

Legislative measures are routinely added to, rescheduled, or removed from the legislation program following changes to government priorities or adjustments to the delivery timing. Given the dynamic nature of the environment within which Treasury delivers the legislation program, including factors outside the control of Treasury, we have maintained the targets established in the Corporate Plan 2023–24.

Methodology

Calculation of the legislative measures committed for delivery, adjusted for reprioritisation, and compared with the legislative measures actually delivered. Treasury manages and delivers legislative measures during Parliamentary sitting periods. Accordingly, Treasury assesses performance based on the sequence of Winter and Spring Parliamentary sitting periods in one calendar year and Autumn Parliamentary sitting period in the following calendar year. This provides the best alignment with the performance reporting period. To provide a more accurate synopsis of Treasury’s delivery of the government’s legislative agenda we have excluded routine, annual or minor and technical legislative measures from the performance measure. Treasury assesses performance against the delivery of legislative measures that implement priority policies as announced by government.

Measure type

Output measure.

Data sources

Treasury’s Legislative Program provides a record of the government’s current legislative priorities in the Treasury portfolio, which Treasury track through a records management database. The Bills and Legislation page on the Parliament of Australia website is a second data source confirming date of introduction and passage of primary legislation. The Federal Register of Legislation also provides a second data source confirming the date of instrument registration.

Changes from previous year

Treasury has retained this performance measure from the Corporate Plan 2023–24 with amendment to reflect the delivery of the legislative program.

Intended result 2.5

Treasury’s regulatory functions

  • Treasury administers Australia's foreign investment framework consistent with Australia's national and economic interests
  • Treasury administers the Payment Times Reporting Scheme to improve the payment terms, times and practices of large businesses towards their small business suppliers and improve payment outcomes for small businesses.
Performance measure 9
Proportion of stakeholders that report a high level of satisfaction regarding:
  • the clarity, transparency, and consistent application of Treasury’s regulatory frameworks (Regulator Performance (RMG 128) Principle 1)
  • risk-based, data driven decision making (RMG 128 Principle 2)
  • Treasury’s responsive communication and collaboration (RMG 128 Principle 3).
(Program 1.1 – Department of the Treasury and 1.3 – Support for Markets and Business)
Targets
2024–25 65%
2025–26 65%
2026–27 65%
2027–28 65%
Target rationale

Survey results from 2022–23 and 2023–24 informed development of the 2024–25 target. Given that consecutive targets were not achieved, the target of 65% has been retained for 2024–25 and the forward years. Engagement with stakeholders, particularly regulated entities, is maturing.

Methodology

Independent surveys conducted by a third-party provider with foreign investment framework and Payment Times Reporting Scheme stakeholders. Stakeholder selection and questions that align with the Regulator Performance Principles will be governed by transparent stakeholder selection rules. Treasury will report separately on its regulatory functions for the foreign investment framework and Payment Times Reporting Scheme.

Measure type

Effectiveness measure.

Data sources

Responses to the annual stakeholder survey and stakeholder lists.

Changes from previous year

Treasury established a target of 65% for 2022–23 and has maintained this target for 2024–25 and the forward years.

Performance measure 10
Proportion of regulated entities registered with the Payment Times Reporting Regulator as a reporting entity (RMG 128 Principle 1 and 2). (Program 1.3 – Support for Markets and Business)
Changes from previous year

Treasury has removed Performance Measure 10 for the Payment Times Reporting Regulator from the Corporate Plan 2024–25 and will not report in the 2024–25 period.

Treasury will develop a new performance measure and targets for publication in the Corporate Plan 2025–26.

Rationale for the change

In December 2023, the Australian Government released its response to the independent Statutory Review of the Payment Times Reporting Act 2020, agreeing with all recommendations and committing funding through the 2023–24 Mid‑Year Economic and Fiscal Outlook process to support a range of initiatives to deliver better outcomes for small businesses.

The regulatory and legislative reforms set out in the government response to the Statutory Review of the Payment Times Reporting Act 2020 means performance reporting for the Payment Times Reporting Regulator in the 2024–25 period is not possible using the existing framework. Treasury will establish a replacement measure using new methodology and data sources during 2024–25 for performance reporting in 2025–26.

Treasury will continue to meet reporting requirements for the Payment Times Reporting Regulator through the annual stakeholder survey.

Key activity 3: Treasury’s external engagements enable implementation of the government’s economic and fiscal agenda

Intended result 3.1

Relationships with Treasury ministers, Treasury portfolio agencies and regulators, and key stakeholders enable implementation of the government’s agenda.

Performance measure 11
Proportion of Treasury ministers, Treasury portfolio agencies and regulators, and key stakeholders that highly rate working with the Treasury. (Program 1.1 – Department of the Treasury)
Targets Ministerial feedback questionnaire Stakeholder survey
2024–25 83% 80%
2025–26 83% 80%
2026–27 100% 80%
2027–28 100% 80%
Target rationale

Treasury established 70% as a baseline for the stakeholder survey and ministerial feedback questionnaire in 2021–22. Treasury has increased the target for the ministerial feedback questionnaire for 2024–25 and forward years to align with the methodology for assessing performance and the prior year performance results. Treasury increased the target for the stakeholder survey for 2024–25 to 80% in‑line with the Corporate Plan 2023–24.

Methodology

Independent stakeholder survey conducted by a third-party provider and structured interviews with Treasury Ministers or their delegates. The assessment of the ministerial feedback questionnaire will be weighted so that the Treasurer’s responses account for 50% of the overall percentage measure. Stakeholder selection is governed by transparent stakeholder selection rules.

Measure type

Effectiveness measure.

Data sources

Stakeholder lists and responses to the annual stakeholder feedback survey and the ministerial feedback questionnaire from Treasury Ministers or their delegates.

Changes from previous year

For 2024–25 Treasury has separated the target for the performance measure by stakeholder type into ministerial feedback questionnaire and the stakeholder survey. The target for the ministerial feedback questionnaire has increased from 75% to 83% for 2024–25 and increases to 100% in the forward years. The target for the stakeholder survey has increased from 75% to 80% as outlined in the Corporate Plan 2023–24.

Intended result 3.2

Partnering with international financial institutions promotes international monetary cooperation, fosters financial system stability and economic growth, and facilitates the government’s objectives in international forums.

Performance measure 12
Proportion of payments to international financial institutions are transferred within legislated requirements and agreements. (Program 1.2 – International Financial Relations)
Targets
2024–25 100%
2025–26 100%
2026–27 100%
2027–28 100%
Target rationale

Treasury has reported over previous periods that transfers to international financial institutions are within legislated requirements. The target is consistent with these performance results.

Methodology

Assessment of payments against the requirements of relevant legislation and agreements. The performance results will be calculated as a percentage of total payments that meet requirements and timeframes against total payments (all payments including those that do not meet requirements and timeframes) for the period.

Measure type

Output measure.

Data sources

International Monetary Agreements Act 1947 and International Finance Corporation Act 1955, Asian Development Bank Act 1966, Asian Infrastructure Investment Bank Act 2015, European Bank for Reconstruction and Development Act 1990, and payment records from the Reserve Bank of Australia, World Bank, International Finance Corporation, Asian Development Bank, International Monetary Fund, or other multilateral development banks (where relevant).

Changes from previous year

Treasury included this performance measure in the Corporate Plan 2023–24 and there are no changes for the 2024–25 reporting period.

Intended result 3.3

Payments to the states and territories (the states) are administered in accordance with the Intergovernmental Agreement on Federal Financial Relations and other relevant agreements between the Commonwealth and the states.

Performance measure 13
Proportion of payments to the states are delivered within requirements of the Intergovernmental Agreement on Federal Financial Relations and other relevant agreements between the Commonwealth and the states. (Program 1.4 – Commonwealth State Financial Relations)
Targets
2024–25 100%
2025–26 100%
2026–27 100%
2027–28 100%
Target rationale

Treasury has reported against this performance measure over previous periods. The target is set in accordance with Treasury’s obligations.

Methodology

Assessment of payments against the requirements of the Intergovernmental Agreement on Federal Financial Relations and other relevant agreements between the Commonwealth and the states. The assessment will be calculated as a percentage of the number of payments that meet requirements against the total number of payments (all payments including those that do not meet requirements) for the period.

Measure type

Output measure.

Data sources

The Intergovernmental Agreement on Federal Financial Relations and other relevant agreements, records of payment requests in the Federal Payments Management System, approvals, and payment advice.

Changes from previous year

Treasury included this performance measure in the Corporate Plan 2023–24 and there are no changes for the 2024–25 reporting period.

Text descriptions

Figure 1 text description: Treasury’s Integrity Framework

Figure 1 highlights the key legislation, frameworks, policies and processes that provide the foundation blocks for integrity, and that ensure the Department is governed in a way that builds and promotes a pro-integrity culture.

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Figure 2 text description: Treasury’s governance committees’ structure

Figure 2 shows the structure of Treasury’s governance committees, the Secretary (Accountable Authority), the Audit and Risk Committee and the Financial Statements and Annual Performance Statements Subcommittee, Executive Board and the Performance and Risk Committee, People and Inclusion Committee and Information Strategy Committee, which report to Executive Board.

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