Description

The Government Guarantee Fee Policy for Government Businesses s Commercial Policy Framework. The Framework aims to replicate within Government businesses the disciplines and incentives that lead private sector businesses towards efficient commercial practices. The purpose of the Government Guarantee Fee Policy for Government Businesses is to ensure competitive neutrality between Government businesses and their private sector counterparts, with respect to the cost of debt. This document outlines the application of the Government Guarantee Fee and the methodology to determine the amount of the fee. This policy supersedes the previous NSW Treasury policy document, Government Guarantee Fee Policy for Government Businesses (TPP 04-2, July 2004). This revised policy modifies the method for deriving the interest differentials used to calculate the guarantee fee to provide a more transparent approach that better reflects market conditions. The revised policy applies to existing and new debt from 2010-11.