Description

The Government Guarantee Fee Policy is a component of the NSW Government’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 working paper outlines the methodology to determine the amount of the guarantee fee. This policy supersedes the previous NSW Treasury policy document, Government Guarantee Fee Policy for Government Businesses (TPP 10-4, September 2010). This revised policy applies from 1 July 2014.