2012
2012
2023-06-21
act
government
publicgeneral
act.reprint
act-2018-070
allinforce
2012-05-31
2012-05-31
0
act-2012-058
94d12c6a-418b-4cbf-9e1c-02b26eba1a09
2496b652-5a40-459c-af72-441192f8f0f6
2012
none
See also—
Fiscal Responsibility Amendment
(Wellbeing Budget) Bill 2023 [Non-government Bill—
Ms Abigail Boyd, MLC]
Editorial note
The Parliamentary Counsel’s Office is
progressively updating certain formatting styles in versions of NSW in force
legislation published from 29 July 2019. For example, colons are being
replaced by em-rules (em-dashes). Text of the legislation is not
affected.
This version has been
updated.
An Act relating to fiscal responsibility in the
management of government finances; to repeal the Fiscal Responsibility Act 2005; and to
make consequential amendments to the Public Finance
and Audit Act 1983.
Part 1Preliminary
1Name of Act
This Act is the Fiscal
Responsibility Act 2012.
2Commencement
This Act commences on the date of assent to this
Act.
3Object of Act
(1)
The object of this Act is to maintain the AAA
credit rating of the State of New South Wales.
(2)
The purpose of that object is—
(a)
to limit the cost of government borrowing,
and
(b)
to enable access to the broadest possible
investor base for government borrowing, and
(c)
to maintain business and consumer confidence,
thereby sustaining economic activity and employment in the
State.
4Application of Act
This Act applies to and in respect of the State
budget.
5Definitions
(1)
In this Act—
budget papers means the
budget papers of the Government tabled in Parliament in connection with the
annual Appropriation Bills.
long-term
average general government revenue growth of the State means
the average annual growth rate of general government revenue over a
sufficiently long previous period to smooth out the influence of transient
factors. The regulations may prescribe the relevant rate.
long-term fiscal gap
means the change in the primary balance of the general government sector as a
share of gross state product, calculated on the basis of no policy
changes—
(a)
from 2009–10 to 2050–51,
or
(b)
after a re-assessment under section 8—over
a similar sufficiently long period to assess fiscal pressures associated with
the ageing population and other long-term trends. The regulations may
prescribe the relevant period.
For the purpose of this definition, the primary balance is
revenue less expenditure, including net capital expenditure but not including
interest transactions.
the
State’s unfunded superannuation liability means the
total net employer liabilities of the State under defined benefit
superannuation schemes for the total state sector.
(2)
Expressions used in this Act (to the extent they
are not otherwise defined in this Act) have the same meaning as similar
expressions used by the Australian Bureau of Statistics in the preparation of
government finance statistics.
(3)
Notes included in this Act do not form part of
this Act.
Part 2Fiscal targets and principles
6Fiscal targets
The fiscal targets for achieving the object of
this Act are as follows—
(a)
The annual growth in general government expenses
of the State is less than the long-term average general government revenue
growth of the State.
(b)
The elimination of the State’s unfunded
superannuation liability by 2030.
7Principles of sound financial
management
(1)
The policy objectives of the Government should be
pursued in accordance with the principles of sound financial management set
out in this section in order to support the object of this
Act.
(2)
Principle No 1 is responsible and sustainable
spending, taxation and infrastructure investment, including—
(a)
aligning general government revenue and expense
growth, and
(b)
stable and predictable taxation policies,
and
(c)
investment in infrastructure that has the highest
benefit for the community.
(3)
Principle No 2 is effective financial and asset
management, including sound policies and processes for—
(a)
performance management and reporting,
and
(b)
asset maintenance and enhancement,
and
(c)
funding decisions, and
(d)
risk management
practices.
(4)
Principle No 3 is achieving intergenerational
equity, including ensuring that—
(a)
policy decisions are made having regard to their
financial effects on future generations, and
(b)
the current generation funds the cost of its
services.
8Budget reporting in relation to fiscal targets and
principles
The Treasurer is to include the following in the
budget papers—
(a)
a statement of the Government’s fiscal
strategy having regard to the object of this Act and the fiscal targets and
principles provided by this Act,
(b)
a report on the Government’s performance
against that object and those targets and principles,
(c)
the reasons for any departure from that object
and those targets and principles, together with the action planned to achieve
that object and those targets and principles within the forward years of the
budget,
(d)
an assessment of the impact of the measures in
the budget on the State’s long-term fiscal gap,
(e)
in the case of the budget papers for
2016–17 and for each 5 years thereafter—an updated report on
long-term fiscal pressures and a re-assessment of the State’s long-term
fiscal gap.
Note—
Section 10 of the General
Government Liability Management Fund Act 2002 requires the
Management Committee (constituted under that Act to advise the Secretary of
the Treasury on the management of the Fund) to review from time to time the
long-term fiscal target of eliminating total State sector unfunded
superannuation liabilities by 2030.
Part 3Miscellaneous
9Effect of Act
(1)
Nothing in this Act places on any person any
obligation enforceable in a court of law or administrative review
body.
(2)
Without limiting subsection (1), a failure to
comply with a provision of this Act—
(a)
does not prevent the introduction of any Bill in,
or the passage of a Bill through, a House of Parliament or prevent assent
being given to any Bill, and
(b)
does not affect the validity of any legislation,
and
(c)
does not affect the validity of any action taken
by any public official or agency, and
(d)
does not expose any person to civil or criminal
liability.
(3)
Accordingly, no court or administrative review
body has jurisdiction or power to consider any question involving compliance
or non-compliance with this Act.
(4)
This section does not apply to the other
provisions of this Part or to Schedule 1.
10Regulations
The Governor may make regulations, not
inconsistent with this Act, for or with respect to any matter that by this Act
is required or permitted to be prescribed or that is necessary or convenient
to be prescribed for carrying out or giving effect to this
Act.
11Acts not affected by this Act
This Act does not affect the provisions of any of
the following Acts—
Government Sector Audit Act
1983
Government Sector Finance Act
2018
State Owned Corporations Act
1989
s 11: Am 2018 No 70,
Schs 3.23, 4.35.
12
s 12: Rep 1987 No 15,
sec 30C.
13Review of Act
(1)
The Treasurer is to review this Act to determine
whether the policy objectives of the Act remain valid and whether the terms of
the Act remain appropriate for securing those
objectives.
(2)
The review is to include an assessment of the
State’s long-term average general government revenue
growth.
(3)
The review is to be undertaken as soon as
possible after the period of 5 years from the commencement of this
Act.
(4)
A report of the outcome of the review is to be
tabled in each House of Parliament within 12 months after the end of the
period of 5 years.
Schedule 1
sch 1: Rep 1987 No
15, sec 30C.
Historical notes
Table of amending instruments
Fiscal Responsibility Act
2012 No 58. Assented to 28.8.2012. Date of commencement,
assent, sec 2. This Act has been amended as follows—
2018
No 70
Government Sector Finance
Legislation (Repeal and Amendment) Act 2018. Assented to
22.11.2018.
Date of commencement of Sch 3, 1.12.2018, sec 2 (1) and
2018 (673) LW 30.11.2018; date of commencement of Sch 4.35, 1.7.2021, sec 2(1)
and 2021 (305) LW 25.6.2021.
This Act has been amended by sec 30C of the
Interpretation Act 1987 No
15.
Table of amendments
Sec 11
Am 2018 No 70, Schs 3.23,
4.35.
Sec 12
Rep 1987 No 15, sec
30C.
Sch 1
Rep 1987 No 15, sec
30C.