List of Recommendations

Recommendation 1

2.41
The Committee recommends that the Minister for Finance:
consider changes to improve transparency for equity investments, consistent with the proposed improvements to budget reporting as summarised in Table 4 of Parliamentary Budget Office, Report 1/2020, Alternative Financing of Government Policies: Understanding the Fiscal Costs and Risks of Loans, Equity Injections and Guarantees, and the ‘Additional proposed improvements’ to reporting set out in paragraph 2.20 of the Committee’s report
report back on:
each of these proposed changes, including how transparency could be improved in relation to equity investments subject to differing valuation methods (i.e. those in an establishment phase and those that have emerging cash flows)
how the additional information provided would meet the principles of accessibility, availability in the one document and publication on an ongoing, consistent basis, as programs and projects evolve (on an annual basis and not only at the time of initial consideration)
any impediments to implementation, and how any new reporting arrangements could be matured over time.

Recommendation 2

2.42
The Committee recommends that the Minister for Finance report back on the Finance Portfolio Budget Statement (PBS) reporting of funds managed by the Future Fund. This should include:
Finance PBS reporting on the Disability Care Australia Fund
how a similar series of tables could be implemented for the Parliamentary Budget Office proposals in Report 1/2020 and the ‘Additional proposed improvements’ to reporting set out in the relevant section of the Committee’s report, including disaggregation from major projects, loans or equity investments
how these tables would provide a detailed reconciliation of planned and/or forecast financial stocks and flows for other projects and programs, such as the equity and loan funding for the NBN and the financial flows related to HELP loans.
The Committee requests that the proposed changes and advice be provided to the JCPAA to facilitate consultation with the PBO, the ANAO and other relevant stakeholders.

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About this inquiry

The Joint Committee of Public Accounts and Audit is conducting an inquiry into the use of alternative financing mechanisms in government expenditure.



Past Public Hearings

15 Sep 2021: Canberra
19 Aug 2021: Canberra