Description
The Expenditure Review Committee of Cabinet has determined that public sector agencies (excluding State Owned Corporations and authorities specifically approved by the Treasurer) must operate as part of the Treasury Banking System. This decision will take effect from 1 April 2015 and will apply to all agency cash deposits held ‘at call’.
Detailed Outline
The ability of the NSW Government to optimise the State’s cash and debt position is constrained by the large number of agencies currently operating outside of the Treasury Banking System (TBS).
With this in mind, the Expenditure Review Committee of Cabinet has determined that all NSW public sector agencies, with the exception of State Owned Corporations (SOCs) and certain other agencies approved by the Treasurer, should hold their ‘at call’ cash deposits within the TBS. Under exceptional circumstances, the Treasurer may approve an agency holding ‘at call’ deposits outside the TBS based on a ‘net benefit to the State’ test. As from 1 April 2015, funds earning interest within the TBS will be paid the Reserve Bank of Australia cash rate (presently 2.5%).
Attachment A outlines the steps agencies will need to undertake to formalise their entry into the TBS. Affected agencies should review the guidance in Attachment A to meet the following deadlines.
|
ACTION |
DEADLINE |
|
Email TBS agency contacts and bank account details (Attachment B) to Treasury (new TBS agencies and existing TBS agencies transferring Non-TBS funds into the TBS) |
6 February 2015 |
|
Transfer all ‘at call’ cash deposits into Westpac accounts within the Treasury Banking System (all relevant agencies) |
31 March 2015 |
Mark Ronsisvalle
For Secretary
Further Information: Refer to ‘Treasury Contacts’ listed at the end of Attachment A
NSW Treasury website: www.treasury.nsw.gov.au
Overview
Who needs to know and/or comply with this?
- Departments
- Separate agencies
- Statutory Authorities/Bodies
- Subsidiaries of the NSW Government established under the Corporations Act
Compliance
- Mandatory
AR Details
- Date Issued
- Jan 19, 2015
- Review Date
- Feb 28, 2016
- Replaces
-
- Replaced By
Contacts
- Contact
- Phone
- Publishing Entity
- The Treasury
- Issuing Entity
- The Treasury