Secretary’s
introduction

Secretary to the Treasury - Dr Steven Kennedy PSM

Treasury is the Government’s lead economic adviser. Treasury’s purpose is to provide advice to the Government and implement policies and programs to achieve strong and sustainable economic and fiscal outcomes for Australians. This is a significant responsibility which relies on our professionalism, judgment and expertise.

Our work during 2021–22 was a vital part of the economic response to COVID-19. Our work was focused on providing sound economic advice and analysis to foster sustainable economic outcomes. We continued to design and deliver policies and programs that assist in securing Australia’s prosperity.

Our effectiveness continues to be underpinned by the capability of our staff, our ability to quickly adjust and our preparedness to take on new challenges.

Strong relationships fostered across the Commonwealth, states and territories, international counterparts and a wide range of external stakeholders, enable us to deliver integrated economic advice and promote well functioning markets.

We focus on the wellbeing of our staff and building an inclusive culture. It has been pleasing to see how well teams have been working together as we adjust to living with COVID-19.

This Corporate Plan – for the reporting period 2022–23 to 2025–26 – sets out how we will direct our efforts to achieve our purpose and deliver on the new Government’s priorities.

Our plan provides an overview of Treasury’s operating environment, key priorities, activities and risks, our capabilities, and how we will measure our performance.

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 2022

Our Corporate Plan
2022–23 to 2025–26

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Our purpose

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

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Our operating context

A complex and uncertain economic environment

Increased uncertainty in the medium term

Promoting strong and sustainable outcomes

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Our priorities

A strong and sustainable economic and fiscal environment

Effective Government policies, programs and regulation

Organisational capability and sound governance and assurance

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Our key activities and intended results

  • Provide informed, influential and impactful policy advice and analysis
    • Policy advice and reports are influential and contribute to a strong and sustainable economic and fiscal environment
    • Treasury forecasts are in an acceptable range of variance with actuals
  • Ensure effective Government spending arrangements
    • Budgets, fiscal and economic updates are timely and comply with the Charter of Budget Honesty
    • Payments to international financial institutions promote international monetary cooperation and facilitate Government objectives in international forums
    • 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
  • Effective markets, financial and taxation systems, and program delivery associated with the Government’s economic priorities
    • The Australian economy is competitive, and key markets are dynamic
    • The stability of the Australian financial system provides confidence to investors that ultimately supports economic growth
    • The tax system supports a stable, resilient, and sustainable economy
    • Relationships with Treasury Ministers, Treasury portfolio agencies and regulators, and key stakeholders enable implementation of the Government’s agenda
  • Deliver the Government’s legislative agenda associated with the Treasury portfolio
    • Treasury’s delivery of the legislative program is in line with the Government’s priorities and within the required timeframes
  • Administer Treasury’s regulator functions
    • Treasury’s regulatory functions are efficient and effective
      • Australia’s foreign investment review framework
      • Payment Times Reporting Scheme
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How

iconEnsuring our work aligns with our purpose
iconCreating and sustaining productive relationships
iconDeveloping high performing teams
iconRewarding an inclusive culture
iconSound governance and assurance
  • Ensuring our work aligns with our purpose
  • Creating and sustaining productive relationships
  • Developing high performing teams
  • Rewarding an inclusive culture
  • Sound governance and assurance

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 priorities and key activities

A strong and sustainable economic and fiscal environment

  • Provide informed, influential and impactful policy advice and analysis
    • Economic and fiscal policy advice and reports reflect Treasury’s whole of economy view
    • Treasury forecasts are in an acceptable range of variance with actuals
  • Ensure effective Government spending arrangements
    • Budgets, fiscal and economic updates are timely and comply with the Charter of Budget Honesty
    • Payments to international financial institutions promote monetary cooperation and facilitate Government objectives in international forums
    • Payments to the states and territories are administered in accordance with the Intergovernmental Agreement on Federal Financial Relations and other relevant agreements

Effective Government policies, programs and regulation

  • Effective markets, financial and taxation systems, and program delivery associated with the Government’s economic priorities
    • The Australian economy is competitive, and key markets are dynamic
    • Stability of Australia's financial system provides confidence to investors that supports economic growth
    • The tax system supports a stable, resilient, sustainable economy
    • Relationships with Treasury portfolio agencies, Ministers and key stakeholders enable implementation of the Government’s agenda
  • Deliver the Government’s legislative agenda associated with the Treasury portfolio
    • Treasury’s delivery of the legislative program is in line with the Government’s priorities and within the required timeframes
  • Administer Treasury’s regulator functions
    • Treasury’s regulatory functions are efficient and effective

Organisational capability

  • Ensuring our work aligns with our purpose
  • Creating and sustaining productive relationships
  • Developing high performing teams
  • Rewarding an inclusive culture

Sound governance and assurance

  • Committed to continual improvement of our management and governance practices to assure Australians we work with integrity and accountability

Operating context

Environment

Australia’s economy, and Treasury’s operating environment, will be shaped by significant economic and geo-strategic shifts now and over the coming years.

A complex and uncertain economic environment

The economic environment we are operating in is highly complex and subject to significant uncertainty.

Following a long period of low inflation and low interest rates prior to the COVID-19 pandemic, the global economy has moved quickly into a period of rising inflation and a coordinated tightening of monetary policy across advanced economies.

Three compounding international shocks underly this and are causing significant uncertainty in the outlook for the global economy.

  • The Russian invasion of Ukraine and international sanctions have caused a sharp increase in fuel, energy and food prices and affected confidence more broadly.
  • China’s commitment to an aggressive suppression strategy for COVID-19 has further increased pressure on global supply chains, particularly for manufactured goods.
  • COVID-19 continues to affect economies and global trade with elevated demand for goods, congestion at ports and increased shipping costs.

The Australian economy is not immune to these challenges. These international shocks – combined domestically with workforce shortages, energy supply constraints and healthcare demands − are adding to household cost-of-living pressures and dampening confidence.

The tight labour market reflects the fact that Australian unemployment is at its lowest level since the 1970s, and is expected to remain low for some time, a favourable outcome for many Australians.

Increased uncertainty in the medium term

Beyond the immediate challenges, our economic environment will be characterised by increased uncertainty and ongoing structural changes. Australia will be affected by a changing world and increased geopolitical tensions. Competition between major powers continues to increase and military conflict is affecting countries across the globe. Climate change remains an important global challenge, our demographic transition will continue over coming decades, and digital technology continues to change how we live and work.

Promoting strong and sustainable outcomes

Treasury works to help the Government navigate the economic conditions to achieve strong and sustainable economic and fiscal outcomes for Australians.

Treasury will deliver the Jobs and Skills Summit and the Employment White Paper. This process provides an opportunity for holistic consideration of labour market issues. Issues for focus include the implications of low unemployment, competition for labour, equal opportunity and engagement of disadvantaged groups, the role of migration, building skills for the future and the future of work.

Long-term living standards are underpinned by productivity. We will continue advising the Government in relation to reforms to boost productivity, promote well functioning markets and ensure the tax system remains equitable and adequate to fund the Government’s spending commitments. We will advise on the economic transformation required to achieve the Government’s climate change goals and will continue to design and deliver legislative and regulatory changes to improve the quality and efficiency of government services. We will also advise on housing affordability and housing supply to improve social inclusion and wellbeing, equity, and employment opportunities.

Capability

Our people

Successful delivery of economic and fiscal policy relies on Treasury having a capable and professional workforce. We are committed to investing in our people to ensure we deliver on our priorities.

In 2022–23 Treasury will continue implementing our workforce plan with a focus on developing our people to ensure they have the necessary policy, program, regulatory and corporate skills to deliver on our priorities.

Our learning and development strategy is an important part of our workforce plan. In 2022–23 and over the forward years, we will focus on consistent and structured career development. In this, one of our focus areas is developing leadership capability.

Treasury continues to be focused on capitalising on the skills and talents of all members of the community through maintaining and building on the diversity of our workforce. Treasury will be launching a revised Inclusion and Diversity strategy in 2022–23. We will review the strategy in 2024 to ensure Treasury is still on track to achieve our inclusion and diversity goals.

COVID-19 has challenged traditional working practices across the Australian Public Service with many staff working from home for extended periods. Like many other workplaces, Treasury is learning from the COVID-19 experience to inform our workplace arrangements and make them adaptable and flexible. We are updating our Flexible Work policy to ensure our people are safe and productive and that our work practices are inclusive as we continue to manage hybrid working arrangements.

To ensure we continue to deliver our vital work in support of the Australian economy and the community, we must look out for our own wellbeing, and the wellbeing of our colleagues. In 2022–23 we will launch our first mental wellbeing strategy. The Healthy Minds: Mental Wellbeing Strategy 2022–2025 will outline a comprehensive range of initiatives and commitments that will provide the foundation for creating and sustaining a positive mental health culture.

The way we work — cooperation and collaboration

Effective stakeholder engagement is core to Treasury’s work. It helps us enrich our advice to Government, assists in better decision making and enhances our relationships with the Australian community. Treasury’s stakeholder group is broad and diverse. It includes other Government entities at the international, Commonwealth and state and territory levels, peak bodies, regulators, consumers, academics, business, unions and community groups in addition to bilateral and multilateral international cooperation.

Our Stakeholder Liaison Unit partners with policy areas in effective, joined-up, coordinated consultation. It implements whole-of-Treasury stakeholder engagement systems and assists policy areas and our regulators to put in place engagement strategies relevant to their responsibilities.

Information and communications technology

Treasury requires timely access to high-quality data, modelling and analysis to provide the best possible advice to Government. We also rely on responsive information and communications technology solutions. We are focused on improving digital capabilities to enhance effectiveness, improve efficiency, remain relevant and meet stakeholder expectations. With improved digital capabilities to support our engagement and regulatory activities, we aim to make it easier for stakeholders to interact with us.

Our Enterprise Information Strategy 2021–24 (the Strategy) links to our purpose by focusing on well-managed information that is used to create an effective policy environment.

The Strategy sets standards for the management of information and outlines processes and systems to manage the information lifecycle. Priorities are to:

  • optimise information management practices
  • create a positive information experience for all
  • transform our information management culture
  • maintain a focus on the future through investment in people, process and technology over a multi-year period.

The Strategy outlines 22 actions across four focus areas to be delivered over three years. It details new projects and the enhancement of existing capabilities

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 2013 and have been updated to reflect the new Commonwealth Risk Policy.

Implementation of the policy and framework is guided by a suite of tools that 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. Treasury’s risk management arrangements are reviewed on a cyclical basis to ensure currency and effectiveness.

In 2022–23 we will continue to strengthen the management of risk through integrating risk with other governance and strategic planning models, building risk capability and maturing our approach through embedding the new policy and framework. In 2023–24 we will review Treasury’s risk management policy and framework and update as required.

Risk appetite and tolerance

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

To deliver on our purpose, we have a moderate appetite to engage with risk in the pursuit of robust policy advice and effective program delivery. Our appetite for pursuing risk must be considered in the context of the potential consequences of each risk we take, that is, our risk tolerance. Our tolerance for risk varies according to the activity undertaken. 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 those risks that may impact upon our ability to deliver our purpose and priorities, and the opportunities we must not fail to pursue and realise.

Table 1: Our enterprise risks 2022–23

Strategic focus Enterprise risk Risk tolerance Risk management strategy
Influential and impactful policy advice and analysis

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

For Enterprise Risk 1 the risk tolerance rating runs from the lower end of Green (Low) to the lower end of Yellow (Medium) 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

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

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

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; at times this may require an iterative approach to delivering and improving our analysis

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

For Enterprise Risk 3 the risk tolerance rating runs from the higher end of Green (Low) to the higher end of Yellow (Medium)
Delivery of the economic agenda

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

For Enterprise Risk 4 the risk tolerance rating runs from the higher end of Green (Low) to the higher end of Yellow (Medium) 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

5. Legislative program risk

We manage our legislation program efficiently with legally robust laws that are reflective of the Government’s priorities

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

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

ALT_TEXT
People, capability and culture

8. Staff capability risk

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

ALT_TEXT We invest in our people and embed appropriate cultural behaviours through: defined leadership expectations and responsibilities; contemporary workplace strategies, policies and procedures; and providing an environment where diversity, 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.

9. Culture risk

We sustain and embed a culture of safety, wellbeing, compliance, accountability, ethics, business resilience and security awareness in our people to support our workforce, relationships, reputation, and ability to deliver

ALT_TEXT

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.

ALT_TEXT

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. Our focus in 2022–23 is to embed our governance practice throughout the department and ensure our governance operating model enables management to exercise effective oversight.

Figure 1 – Treasury’s governance committees’ structure

The graphic shows that the Treasury Secretary is Treasury’s accountable authority and that the Secretary and the Executive Board are supported by a number of governance committees. The committees provide oversight and advice across a range of areas including financial reporting, risk, compliance, and strategic and operational matters.

Our approach to performance

The Corporate Plan 2022–23 is Treasury’s primary planning document.

Treasury continues to mature our performance framework to better reflect what we do and to tell our story. Our performance measures reflect a range of qualitative and quantitative measures and we have refined our performance assessment methodologies. They 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 will improve the reliability and verifiability of performance reporting over time.

Treasury’s Foreign Investment Review Framework and Payment Times Reporting Scheme have been incorporated into the Corporate Plan in accordance with the Regulator Performance Guide.

A strong and sustainable economic and fiscal environment

Activity 1: Provide informed, influential and impactful policy advice and analysis

Intended result 1.1 Economic and fiscal policy advice and reports reflect Treasury’s whole of economy view.
Performance measure Proportion of Treasury ministers, key government entities and stakeholders that rate Treasury advice highly. (Program 1.1 - Department of the Treasury)
Methodology Independent stakeholder survey with key government entities and stakeholders, and structured interviews with Treasury ministers or their delegates.

Effectiveness measure
Targets
2022–23 2023–24 2024–25 2025–26
80% 85% 85% 85%
Target rationale The targets are informed by 2021–22 survey results.
Data sources Responses to the annual stakeholder feedback survey and the ministerial feedback questionnaire from Treasury Ministers or their delegates.
Changes from previous year Treasury has removed the informal feedback mechanisms, evaluations, and reviews from the 2021–22 methodology to focus on the stakeholder surveys and structured interviews. This will enable a consistent performance assessment.

Treasury established 2021–22 as a baseline year for the stakeholder survey and ministerial feedback questionnaire. The performance targets have been included for the reporting period and forward years.
Intended result 1.2 Treasury forecasts 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)
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.

Effectiveness measure
Targets
2022–23 2023–24 2024–25 2025–26
Real GDP falls within 70% confidence interval of forecast real GDP Real GDP falls within 70% confidence interval of forecast real GDP Real GDP falls within 70% confidence interval of forecast real GDP 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 which is also consistent with the narrower of the two confidence intervals published by the Reserve Bank of Australia for their forecasts.
Data sources Data from the Australian Bureau of Statistics Australian National Accounts: National Income, Expenditure and Product and Budget papers.
Changes from previous year This is a new performance measure for 2022–23.
Performance measure 3 Variance between actual Total Tax Receipts (excluding Company Tax) and forecast. (Program 1.1 - Department of the Treasury)
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.

Effectiveness measure
Targets
2022–23 2023–24 2024–25 2025–26
Total Tax Receipts (excluding company tax) for 2022–23 falls within 70% confidence interval of forecast at the 2022–23 Budget Total Tax Receipts (excluding company tax) for 2023–24 falls within 70% confidence interval of forecast at the 2023–24 Budget Total Tax Receipts (excluding company tax) for 2024–25 falls within 70% confidence interval of forecast at the 2024–25 Budget Total Tax Receipts (excluding company tax) for 2025–26 falls within 70% confidence interval of forecast at the 2025–26 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.
Data sources Australian Bureau of Statistics Australian National Accounts: National Income, Expenditure and Product and Budget papers.
Changes from previous year This is a new performance measure for 2022–23.

Activity 2: Ensure effective Government spending arrangements

Intended result 2.1 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)
Methodology Assessment against the requirements and timeframes for the public release of the deliverables set out in the Charter for the 2022–23 reporting period.

Output measure in relation to compliance

Timeliness measure as a proxy for efficiency
Targets
2022–23 2023–24 2024–25 2025–26
100% 100% 100% 100%
Target rationale Treasury has delivered in accordance with the Charter over previous reporting periods. The 100% target is an indication of the importance of these deliverables.
Data sources Data sources are the released documents for the Budget, Final Budget Outcome, and Mid-year Economic and Fiscal Outlook.
Changes from previous year The 2022–23 performance measure includes an assessment against the requirements of the Charter in addition to timeframes. Timeliness will be used as a proxy efficiency measure.

The Pre-Election Economic and Fiscal Outlook is not included in the 2022–23 requirements.
Intended result 2.2 Payments to international financial institutions promote  monetary cooperation and facilitate Government objectives in international forums.
Performance measure 5 Proportion of payments to international financial institutions are transferred within legislated requirements and agreements. (Program 1.2 - Payments to International Financial Institutions)
Methodology Assessment of payments against the relevant legislation and agreements.

Output measure
Targets
2022–23 2023–24 2024–25 2025–26
100% 100% 100% 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.
Data sources International Monetary Agreements Act 1947 and International Finance Corporation Act 1955, and payment records from the Reserve Bank of Australia, World Bank and International Finance Corporation.
Changes from previous year This performance measure was combined with other payments in the Corporate Plan 2021–22. Payments to States is presented as a separate performance measure in 2022–23 for transparency. The assessment against timeframes has been removed from the performance measure with the focus on meeting requirements.
Intended result 2.3 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 6 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 to 1.9 - Department of the Treasury)
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.

Output measure
Targets
2022–23 2023–24 2024–25 2025–26
100% 100% 100% 100%
Target rationale Treasury has reported against this performance measure over previous periods. The target is set in accordance with Treasury’s obligations.
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 This performance measure was previously combined with other payments in the Corporate Plan 2021–22. Transfers to international financial institutions is presented as a separate performance measure in 2022–23 for transparency. The assessment against timeframes has been removed from the performance measure with the focus on meeting requirements.

Effective Government policies, programs and regulation

Activity 3: Effective markets, financial and taxation systems, and program delivery associated with the Government’s economic priorities

Intended result 3.1 The Australian economy is competitive and key markets are dynamic.
Performance measure 7 Australia maintains or improves its 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)
Methodology The Institute for Management Development produces a World Competitiveness Ranking based on a range of factors.

A portion of these factors that relate to the Treasury portfolio are used to construct a score relevant to this performance measure.

Effectiveness measure
Targets
2022–23 2023–24 2024–25 2025–26
Target to be developed Maintain or improve competitiveness score Maintain or improve competitiveness score Maintain or improve competitiveness score
Target rationale This is the first year Treasury will assess performance using this methodology and external data source. Treasury will develop the competitiveness score based on 15 criteria of the World Competitiveness Rankings. The target will be set for the first year in the first half of the reporting period. Treasury will report against the target at the end of year.

The target for 2023–24 and the forward years is to maintain or improve Australia’s current score based on the 15 criteria.
Data sources Institute for Management Development World Competitiveness Rankings Results
Changes from previous year This is a new performance measure for 2022–23.
Intended result 3.2 The stability of Australia's financial system provides confidence to investors that supports economic growth.
Performance measure 8 No disorderly failures of prudentially regulated institutions. (Program 1.1 - Department of the Treasury)
Methodology A disorderly failure occurs when there is material disruption to the critical economic functions and services that the institution provides, resulting in significant impacts on beneficiaries, the financial system and the wider economy.

Treasury will rely on regular bilateral engagement with the Australian Prudential Regulation Authority to obtain information on prudentially regulated institutions that have failed or are at significant risk of failure.

Treasury provides policy advice to Government to ensure the regulatory framework is fit for purpose, including for supporting financial system stability and minimising the risk of disorderly failures.

Effectiveness measure
Targets
2022–23 2023–24 2024–25 2025–26
No disorderly failures of prudentially regulated institutions No disorderly failures of prudentially regulated institutions No disorderly failures of prudentially regulated institutions No disorderly failures of prudentially regulated institutions
Target rationale No disorderly failures, supports financial system stability.

Treasury’s policy advice on the regulatory framework targets very low, but not zero, incidences of failure of the regulated entities. Orderly exits are part of market dynamics in a competitive system.
Data sources Australian Prudential Regulation Authority data
Changes from previous year This is a new performance measure for 2022–23.
Intended result 3.3 The tax system supports a stable, resilient, and sustainable economy.
Performance measure 9 Treasury contributes to the development of the Organisation for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting Action 1. (Program 1.1 - Department of the Treasury)
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 Steering Group. Treasury’s contribution will be demonstrated through continuing advice to Government, stakeholder consultation, participation in international negotiation and bilateral engagement, and liaison with other government agencies.

Output measure
Targets
2022–23 2023–24 2024–25 2025–26
Contribution to delivery of Organisation for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting Action 1 Pillars One and Two Target to be determined following Australia’s development of implementation plans for Pillars One and Two Target to be determined following Australia’s development of implementation plans for Pillars One and Two Target to be determined following Australia’s development of implementation plans for Pillars One and Two
Target rationale Treasury’s contribution to the Organisation for Economic Co-operation and Development Inclusive Framework will establish Base Erosion and Profit Shifting performance targets for future years.
Data sources Records of advice to Government, Organisation for Economic Co-operation and Development Steering Group meetings and other working party meetings, bilateral, government agency and external stakeholder meetings.
Changes from previous year This is a new performance measure for 2022–23.
Intended result 3.4 Relationships with Treasury ministers, Treasury portfolio agencies and regulators, and key stakeholders enable implementation of the Government’s agenda.
Performance measure 10 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)
Methodology Independent stakeholder surveys and structured interviews with Treasury ministers or their delegates.

Effectiveness measure
Targets
2022–23 2023–24 2024–25 2025–26
70% 75% 80% 80%
Target rationale Targets are informed by 2021–22 survey results.
Data sources Responses to the annual stakeholder feedback survey and the ministerial feedback questionnaire from Treasury ministers or their delegates.
Changes from previous year Treasury established 2021–22 as a baseline year for the stakeholder survey and ministerial feedback questionnaire. The performance targets have been included for the reporting period and future years.

Activity 4: Deliver the Government’s legislative agenda associated with the Treasury portfolio

Intended result 4.1 Treasury’s delivery of the legislative program is in line with the Government’s priorities and within the required timeframes.
Performance measure 11 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)
Methodology Calculation of the legislative measures committed for delivery, adjusted for reprioritisation and compared with the legislative measures actually delivered.

Output measure
Targets
2022–23 2023–24 2024–25 2025–26
90% 90% 90% 90%
Target rationale The priority order of legislative measures is subject to Government decisions including those relating to the conduct of parliamentary business. The target is based on delivery within relevant sitting periods.
Data sources Records of the legislative priorities of the Government agreed for delivery and reflected on Treasury’s Legislative Program.

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 is a second data source confirming the date of instrument registration.
Changes from previous year The performance measure is retained from the Corporate Plan 2021–22 with amendment to reflect the delivery of the legislative program.

Activity 5: Administer Treasury’s regulator functions

Intended result 5.1 Treasury’s regulatory functions are efficient and effective:
  • Australian’s foreign investment review framework
  • Payment Times Reporting Scheme
Performance measure 12 Proportion of stakeholders that report a high level of satisfaction regarding: (Program 1.1 - Department of the Treasury and 1.3 - Support for Markets and Business)
  • the clarity, transparency, and consistent application of Treasury’s regulatory frameworks (Regulator Performance Guide (RPG) Principle 1)
  • risk-based, data driven decision making (RPG Principle 2)
  • Treasury’s responsive communication and collaboration (RPG Principle 3)
Methodology Independent stakeholder surveys.

Effectiveness measure
Targets
2022–23 2023–24 2024–25 2025–26
65% 70% 70% 70%
Target rationale Targets are informed by 2021–22 survey results.
Data sources Responses to the annual stakeholder feedback survey.
Changes from previous year Treasury established a stakeholder survey for regulators in 2021–22. The targets have been revised to be more realistic based on 2021–22 survey results.
Performance measure 13 Proportion of regulated entities registered with the Payment Times Reporting Regulator as a reporting entity (Principle 1 and 2) (Program 1.3 - Support for Markets and Business)
Methodology Number of entities registered to report compared to the number of entities identified from government and other data sources as reporting entities.

Effectiveness measure
Targets
2022–23 2023–24 2024–25 2025–26
80% 85% 90% 90%
Target rationale The target has been established using regulated entities registered in 2021–22 as a baseline year.
Data sources Data from the Payment Times Reporting Regulator’s customer relationship management system, Australian Taxation Office taxpayer data, and third-party data service providers.
Changes from previous year This is a new performance measure for 2022–23.

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