Secretary’s
introduction

Secretary to the Treasury - Dr Steven Kennedy PSM

Treasury is the Government’s lead economic adviser.

We advise the Government and 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.

The economy will be shaped now and over coming years by significant uncertainty and structural changes. During 2022–23 our  expert advice helped the Government face the challenges of high inflation and weak global growth.

While we will continue to respond to the immediate, near-term issues in 2023‑24, we will also continue to pursue long-term national success.

Treasury forms valuable relationships across Commonwealth, state and territory governments, as well as with international counterparts and external stakeholders. These partnerships enable us to promote well-functioning markets and deliver high quality economic advice.

Treasury focuses on the wellbeing of employees and builds an inclusive culture.

This Corporate Plan — for the reporting period 2023‑24 to 2026‑27 — sets out how we intend to achieve our purpose and deliver on the Government’s priorities.

Our plan provides an overview of Treasury’s operating environment, 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 2023

Treasury Corporate Plan
2023–24 to 2026–27

icon

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

A complex and uncertain economic environment

Managing the challenges in the medium term

Promoting strong and sustainable outcomes

icon

Our priorities

A strong and sustainable economic and fiscal environment

Effective Government policies, programs and regulation

Organisational capability, pro‑integrity culture, sound governance and assurance

icon

Our key activities and intended results

  • Treasury’s policy advice and analysis is impactful, informed and influential
    • Treasury’s policy advice, including economic and fiscal policy advice, reflects a whole of economy view.
    • Treasury forecasts inform policy advice to Government and are in an acceptable range of variance with actuals.
    • Budgets, fiscal and economic updates are timely and comply with the Charter of Budget Honesty.
  • Treasury’s implementation of policies and regulation supports Australia's economy and national interest
    • Treasury’s policy advice on markets and regulator issues assists the Australian economy to be competitive and key markets to be dynamic.
    • 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.
    • Treasury’s policy advice and implementation of policy for the tax system supports a stable, resilient, and sustainable economy.
    • Treasury’s delivery of the legislative program is in line with the Government’s priorities and within the required timeframes.
    • Treasury’s regulatory functions
      • Treasury administers Australia's foreign investment framework consistent with Australia's national and economic interests.
      • Treasury’s administration of the Payment Times Reporting Scheme enhances transparency of the payment practices of large businesses to their small business suppliers, thereby contributing to improved outcomes for small businesses.
  • Treasury’s external engagements enable implementation of the Government’s economic and fiscal agenda
    • Relationships with Treasury ministers, Treasury portfolio agencies and regulators, and key stakeholders enable implementation of the Government’s agenda.
    • 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.
    • 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.
icon

Enablers

People

Successful delivery of our purpose relies on our capable and professional workforce. We are committed to investing in our people and supporting their wellbeing.

Information management

Access to high quality data, modelling and analysis as well as timely access to information is important to delivering high quality advice to Government. We also rely on responsive information and communication technology solutions as key enablers of our work.

Risk oversight and management

Risk management is an enabler of good decision-making and robust advice to government. It supports accountability, transparency, and engagement and helps identify opportunities as they arise.

icon

How

iconEnsuring our work aligns with our purpose
iconCreating and sustaining productive relationships
iconDeveloping high performing teams
iconRewarding an inclusive and pro-integrity 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

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 years.

A complex and uncertain economic environment

The economic environment in which we operate, globally and domestically, remains highly complex and uncertain. Global growth is set to slow considerably in 2023. Inflation looks to have peaked, but still-high inflation and rising interest rates are expected to lead to the weakest 2-year period of global growth  in over 2 decades, excluding the Global Financial Crisis and the COVID-19 pandemic.

The Australian economy is not immune to these challenges but is well-placed to navigate them. The unemployment rate is very low by historical standards, wages growth has picked up and national income is being supported by elevated commodity prices. However, the global slowdown, persistent inflation and higher interest rates are expected to weigh on economic activity in the near term and take the economy into a cyclical downturn. As inflation returns to target and real wages grow, growth is expected to strengthen.

The balance of risks to the economic outlook is tilted to the downside. Further tightening in global monetary policy in response to more persistent global inflation, or a deterioration in financial conditions, could trigger a more pronounced slowing in the world economy. Domestic inflation could be more persistent, which would dampen household spending through further reductions in real incomes and higher-for-longer interest rates. Consumer spending could soften more than anticipated if households become more cautious in the face of current cost-of-living pressures.

Managing the challenges in the medium term

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

In addition, rising geopolitical tensions have the potential to complicate the climate and digital transformations, affect trade and investment flows, and make unpredictable shocks more likely.

Harnessing the opportunities that come with these transitions while effectively managing the challenges, together with lifting productivity, is critical to our future and economic and fiscal performance.

Promoting strong and sustainable outcomes

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

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

In 2023–24, Treasury will deliver the Employment White Paper. The White Paper will explore issues, frameworks and policy approaches relevant to the future of Australia’s labour market over the medium and longer terms and will have an overarching focus on the objectives of full employment and productivity growth for the benefit of all Australians, along with women’s economic participation and equality.

Treasury will continue to advise the Government on how to achieve sustainable economic and fiscal outcomes in an economically uncertain environment of high inflation and geopolitical tensions. We will provide advice to Government on how to strengthen the budget to prepare for future economic shocks and manage long-term fiscal pressures.  

In 2023–24 Treasury will deliver the sixth Intergenerational Report (IGR) and the 2024–25 Commonwealth Budget. The IGR assesses the long-term sustainability of current Government policies over 40 years, including taking account of financial implications of demographic change. This IGR will include increased coverage of climate change and energy. Treasury will continue to support the Government’s efforts to improve Australia’s wellbeing outcomes, building upon the Measuring What Matters statement released in July.

Long-term living standards are underpinned by productivity. We will continue advising the Government on 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 how regulatory frameworks can support competition and protect and empower consumers, with a particular focus on digital and data issues. We will continue to advise on the economic transformation required to achieve the Government’s climate change goals.

We will 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. Treasury will also continue to work with stakeholders to implement Government housing programs and initiatives such as the National Housing Accord and the Housing Australia Future Fund. We will also provide advice to help improve social inclusion and wellbeing to reduce entrenched disadvantage.

Treasury will continue to support the Government in further strengthening Australia’s key economic institutions. This includes working with the Reserve Bank of Australia, Council of Financial Regulators and other stakeholders to implement the recommendations of the independent Review of the Reserve Bank of Australia.

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 2023–24 Treasury will develop and implement its next Strategic Workforce Plan (the Plan). The Plan will focus on enhancing the people system through the employment lifecycle to attract and retain the skills we need now and into the future.

The Plan will be overlayed with the ethos of ‘building capabilities through inclusion’. This will enable our people to contribute to the department’s outcomes in a supportive culture where employees can thrive. The Plan will identify the policies, programs and practices that focus on:

  • identifying the critical skills and expertise that the organisation needs, with a particular focus on our commitment to build and enhance leadership capabilities across all levels 
  • creating effective and efficient organisational structures and job design
  • succession planning underpinned by employment, career and development pathways.

Treasury is committed to being an Australian Public Service (APS) employer of choice as it continues to draw upon the skills it needs from across the Australian community. A strong employee value proposition will be developed under the Plan to promote the benefits of working at Treasury, strengthened by the launch of a revised Inclusion and Diversity Strategy where difference is celebrated and used to activate innovative new ideas, policies and practices.

In 2023–24 we will continue to strengthen our mental-wellbeing capability and maturity through core activities articulated under the Healthy Minds: Mental Wellbeing Strategy 2022–25. Using this Strategy, we will address psychosocial risks and sustain a positive mental-health philosophy so we can continue to deliver our vital work of supporting the Australian economy.

Employee engagement will be a core activity in 2023–24 as we negotiate the employment terms and conditions of Treasury’s new enterprise agreement to support an effective operating model.

Our pro-integrity culture

Treasury is committed to the pursuit of 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 workers are supported to do the right thing at the right time.

Treasury’s Integrity Framework, represented at Figure 1, brings together Commonwealth legislation and mandatory policy with frameworks, policies, and structures to foster integrity within the Department and reduce the risk of corruption. In 2023–24, Treasury will continue to embed the Framework and its pro-integrity culture into everything we do with a focus on integrating updated APS Integrity guidelines and strengthening anti-corruption measures and reporting.

Figure 1 — Treasury’s Integrity Framework

A circular diagram showing the range of Treasury policies and frameworks that support integrity, including financial, conflict of interest, fraud and corruption, security, information governance, recruitment, code of conduct and social media policies.

The way we work — cooperation and collaboration

Effective stakeholder engagement is core to Treasury’s work and enables the delivery of timely, relevant and influential advice and analysis to enhance decision-making. Stakeholder engagement enriches and improves our advice to Government, facilitates 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. It also includes bilateral and multilateral international cooperation.

Treasury remains committed to embedding a culture of effective stakeholder engagement. We will implement our refreshed Stakeholder Engagement Strategy in 2023–24, which will reinforce the importance of strong stakeholder engagement practices and relationships. Continuing to build and maintain these cooperative relationships is key to enabling Treasury to deliver informed and insightful advice.

Information and communications technology

Treasury continues to focus on improving its digital, data and cyber security capabilities to enhance effectiveness, improve efficiency, remain relevant and meet stakeholder expectations while conducting our business in a safe and secure manner.

Improvements across digital, data and cyber security capabilities allow Treasury to protect against ongoing and emerging cyber threats while also creating simple and positive digital experiences for stakeholders. Investment in our data capability allows us to leverage contemporary technologies to generate deep insights that inform our policy advice, program design and program implementation.

Our Enterprise Information Strategy 2021–24 (EIS) links to our purpose by focusing on well-managed information that is used to create an effective policy environment. Over the next 12 months, a Digital and Cyber Security Strategy 2024–26 (the Strategy) will be developed to supersede the existing EIS. The Strategy will drive continued technology alignment with Treasury’s business 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 2023–24 Treasury will also develop its first Enterprise Data Strategy. It will complement the Digital and Cyber Security Strategy 2024–26 by setting the strategic direction for Treasury's data governance, capability, platforms and tools.

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 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 2023–24 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 2023–24
Enterprise risk 2023–24 Risk tolerance Risk management strategy
Influential, impactful and trusted 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

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

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 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

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

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 2023–24 is to continue to embed our governance practice throughout the department and ensure our governance operating model enables management to exercise effective oversight.

Figure 2 — 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 2023–24 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 is improving 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 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 Review Framework and will make these publicly available when approved on: foreigninvestment.gov.au. The Ministerial Statement of Expectations and the Regulator Statement of Intent for the Payment Times Reporting Scheme is available on the regulator’s website: paymenttimes.gov.au.

A strong and sustainable economic and fiscal environment

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
2023–24 2024–25 2025–26 2026–27
80% 80% 80% 80%

Target Rationale Treasury established an 80% target for the stakeholder survey and ministerial feedback questionnaire based on the 2021–22 stakeholder survey results. The target has not been increased based on the 2022–23 survey 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. 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 The target has been maintained at 80% and not increased to 85% for the 2023–24 reporting period as published in the Corporate Plan 2022–23.

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
2023–24 2024–25 2025–26 2026–27
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 (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 per cent 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 Data from the Australian Bureau of Statistics Australian National Accounts: National Income, Expenditure and Product and Budget papers.

Changes from Previous Year This performance measure was developed for 2022–23 and there are no changes for the 2023–24 reporting period.

Intended result 1.2 Treasury forecasts inform policy advice to Government and are in an acceptable range of variance with actuals
Performance measure 3 Variance between actual Total Tax Receipts (excluding Company Tax) and forecast. (Program 1.1 - Department of the Treasury)
Targets
2023–24 2024–25 2025–26 2026–27
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 Total Tax Receipts (excluding company tax) for 2026–27 falls within 70% confidence interval of forecast at the 2026–27 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. The 70% confidence interval means there is a 70 per cent 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 This performance measure was developed for 2022–23 and there are no changes for the 2023–24 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
2023–24 2024–25 2025–26 2026–27
100% 100% 100% 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 2023–24 reporting period. The deliverables for performance reporting are the 2023 Intergenerational Report, 2022–23 Final Budget Outcome, 2023–24 Mid-year Economic and Fiscal Outlook, 2024–25 Budget, and Additional statement of Commonwealth stock and securities (the latter is required only if the conditions in Part 9 of the Charter of Budget Honesty Act 1998 are met).

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

Data Sources Data sources are the released documents for the Intergenerational Report, Budget, Final Budget Outcome, Mid-year Economic and Fiscal Outlook, and Additional statement of Commonwealth stock and securities (if required).

Changes from Previous Year The 2023–24 performance measure includes the additional assessment against the requirements and timeframes of the Charter for the Intergenerational Report. The Pre-Election Economic and Fiscal Outlook is not included in the 2023–24 requirements.

Effective Government policies, programs and regulation

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
2023–24 2024–25 2025–26 2026–27
Competitiveness score ≥105 Competitiveness score ≥105 Competitiveness score ≥105 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. These policy areas are not assessed through other performance measures. 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.

Data Sources Institute for Management Development World Competitiveness Rankings Results 2024.

Changes from Previous Year This performance measure was established in the Corporate Plan 2022–23 with the target set during the first year. The performance measure includes the target for 2023–24 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
2023–24 2024–25 2025–26 2026–27
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 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 This performance measure was established in the Corporate Plan 2022–23 and there are minor clarifications for the 2023–24 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. (Program 1.1 - Department of the Treasury)
Targets
2023–24 2024–25 2025–26 2026–27
Australia signs the Pillar One Multilateral Convention, signs the Subject to Tax Rule Multilateral Instrument, and implements legislation to give domestic effect to a domestic minimum tax and the income inclusion rule under Pillar Two, in accordance with the progress and timelines of the OECD (subject to Government decision to implement the pillars) 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) 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 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.

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’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. Treasury will assess the supporting evidence against the pre-determined criteria to determine if progress has been made 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 This performance measure was established in the Corporate Plan 2022–23. The targets have been determined for the 2023–24 and 2024–25 reporting periods based on OECD timeframes.

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
2023–24 2024–25 2025–26 2026–27
90% 91% 91% 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 set a 90% target for this performance measure for the reporting period with incremental increases to the target over the forward years.

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 The performance measure is retained from the Corporate Plan 2022–23 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’s administration of the Payment Times Reporting Scheme enhances transparency of the payment practices of large businesses to their small business suppliers, thereby contributing to improved outcomes for small businesses
Performance measure 9 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 (RMG 128) Principle 1)
  • risk-based, data driven decision making (RMG 128 Principle 2)
  • Treasury’s responsive communication and collaboration (RMG 128 Principle 3)
Targets
2023–24 2024–25 2025–26 2026–27
65% 65% 65% 65%

Target Rationale Targets are informed by 2022–23 survey results. Given that consecutive targets were not achieved, retaining 65% for 2023–24 and the forward years is more realistic. The Payment Times Reporting Scheme is relatively new. Engagement with stakeholders, particularly regulated entities is maturing.

Methodology Independent surveys conducted by a third-party provider with foreign investment review 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’s regulatory functions, foreign investment review framework and Payment Times Reporting Scheme, will be reported separately.

Measure type Effectiveness measure.

Data Sources Responses to the annual stakeholder feedback survey and stakeholder lists.

Changes from Previous Year Treasury established a target of 65% for 2022–23. Target for 2023–24 and the forward years is retained at 65%.

Intended result 2.5 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 (RMG 128) Principle 1)
  • risk-based, data driven decision making (RMG 128 Principle 2)
  • Treasury’s responsive communication and collaboration (RMG 128 Principle 3)
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)
Targets
2023–24 2024–25 2025–26 2026–27
85% 90% 90% 90%

Target Rationale The target has been established using regulated entities registered in 2021–22 as a baseline and reviewed using the 2022–23 performance result to set a target of 85% for 2023–24.

Methodology Number of entities registered to report compared to the number of entities identified from government and other data sources as reporting entities. The Payment Times Reporting Act 2020 (the Act) is a disclosure-based regulatory regime designed to achieve sustained improvements in economic conditions for small business by providing transparency of payment conduct of large businesses operating in Australia. The assessment uses reporting entities registered with the Payment Times Reporting Regulator and entities required to report calculated from corporate tax transparency data and third-party data. The number of entities registered to report compared to the number of entities required to report is deemed to be a measure of compliance with the regime.

Measure type Effectiveness measure.

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 performance measure was established in the Corporate Plan 2022–23. Target for 2023–24 has increased to 85% from 80% in 2022–23.

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
2023–24 2024–25 2025–26 2026–27
75% 80% 80% 80%

Target Rationale Treasury established 70% as a baseline for the stakeholder survey and ministerial feedback questionnaire in 2021–22. The target for 2023–24 has been increased from 70% to 75% based on the 2021–22 performance results and further increased to 80% in the forward years.

Methodology Independent stakeholder survey conducted by a third-party provider and structured interviews with Treasury Ministers or their delegates. 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 The target has increased from 70% to 75% for the 2023–24 reporting period. There are no changes for the 2023–24 reporting period.

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
2023–24 2024–25 2025–26 2026–27
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.

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 SourcesInternational 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 This performance measure was included in the Corporate Plan 2022–23 and there are no changes for the 2023–24 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
2023–24 2024–25 2025–26 2026–27
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.

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 SourcesThe 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 included in the Corporate Plan 2022–23 and there are no changes for the 2023–24 reporting period.

Print/save document

Send the document to your printer or save in PDF format using the button below.

Back to top