New South Wales Consolidated Acts

GOVERNMENT SECTOR FINANCE ACT 2018 - SECT 6.14

6.14 Treasurer may enter State financial service agreements

(1) Entering State financial service agreements The Treasurer may, on behalf of the State, enter one or more agreements (
"State financial service agreements" ) with one or more entities to provide financial services for the State or GSF agencies (or both).

(2) The Treasurer may enter State financial service agreements on the terms and conditions that the Treasurer considers appropriate.

(3) To avoid doubt, the Treasurer may enter a State financial service agreement--

(a) as the principal for the benefit of one or more GSF agencies, or

(b) on behalf of one or more GSF agencies.

(4) Examples of provisions that may be included in State financial service agreements Without limiting subsections (1)-(3), a State financial service agreement may include provisions for or with respect to any of the following--

(a) limiting the provision of banking services for the State or GSF agencies to one or more entities,

(b) regulating or arranging for the use of banking services for the State or GSF agencies,

(c) banking account structuring involving banking accounts or money of the State or GSF agencies including--

(i) providing for a master banking account for the State with sub-accounts for GSF agencies and other entities, and

(ii) the giving of guarantees and indemnities in connection with bank account structuring,

(d) interest payments in respect of banking accounts continued, established or operated under the State financial service agreement or money held in those accounts (including interest payments payable by reference to bank account structuring),

(e) enabling the Treasurer to open or close banking accounts on behalf of the State or GSF agencies (or conduct banking account structuring involving those accounts),

(f) enabling entities that are not GSF agencies (including the Workers Compensation Nominal Insurer), with the Treasurer's agreement, to have access to all or some of the financial services to be provided under the State financial service agreement.

Note--: See also section 6.18 (Treasurer may operate banking accounts).

(5) Parties to State financial service agreements covering banking services However, the Treasurer must not enter a State financial service agreement that covers banking services unless it is with--

(a) an entity that is an authorised deposit-taking institution, or

(b) an entity that the Treasurer is satisfied is subject to or has appropriate prudential protections.

Note--: Section 6.13 enables the regulations to make provision for or with respect to what does or does not constitute appropriate prudential protections.

(6) State financial agreements bind GSF agencies Anything that the Treasurer agrees to in a State financial service agreement, or does under the agreement, for or on behalf of GSF agencies (including in respect of banking account structuring involving their banking accounts) has the same effect in law as if it had been agreed to or done by those agencies.

(7) However, any liability (except for fees and charges) resulting from anything done by the Treasurer for or on behalf of a GSF agency to which subsection (6) applies is the liability of the Treasurer and not that of the agency.

(8) Application of State financial service agreements to SDA accounts and statutory special purpose funds The following provisions apply in respect of any money held in an SDA account or statutory special purpose fund--

(a) the money may be held in banking accounts provided under a State financial service agreement and treated as money of the State or a GSF agency for the purposes of banking account structuring under the agreement,

(b) the Treasurer is taken to be authorised to include the money in banking accounts provided under a State financial service agreement and banking account structuring under the agreement,

(c) the deposit of the money in a banking account provided under a State financial service agreement is taken to be an investment of the money even if the use of the money does not directly generate interest for payment into the SDA account or statutory special purpose fund,

(d) if the money is included in banking account structuring under a State financial service agreement, the Treasurer is authorised to make any interest payments that the Treasurer considers appropriate into the SDA account or statutory special purpose fund,

(e) the inclusion of the money in banking account structuring under a State financial service agreement does not prevent the entity responsible for administering the SDA account or statutory special purpose fund from making payments into or out of the account or fund in accordance with the purposes for which it is established or constituted.

(9) The Treasurer may use interest payable by reference to banking account structuring under a State financial service agreement, or money forming part of the Consolidated Fund if that interest is insufficient, for the purpose of making payments authorised by subsection (8) (d).

(10) The Treasurer is taken to have been given an appropriation out of the Consolidated Fund under the authority of this section, at the time a payment is made under subsection (9), for an amount equivalent to the amount of the payment if money forming part of the Consolidated Fund is used for the payment.

(11) Subsections (8)-(10) have effect despite anything to the contrary in another provision of this Act or the Act by or under which an SDA account or statutory special purpose fund is established or constituted. In particular, anything done under the authority of those subsections is taken to be for a permitted purpose.

(12) Application of State financial agreements to entities that are not GSF agencies The Treasurer may enter into agreements with entities that are not GSF agencies (including the Workers Compensation Nominal Insurer), on the terms and conditions that the Treasurer considers appropriate, concerning access by them to all or some of the financial services provided under a State financial service agreement.