Public Finance Act 1989

1: Short Title and commencement
1: This Act may be cited as the Public Finance Act 1989.
2: Except as provided in this section, this Act shall be deemed to have come into force on 1 July 1989.
3:
3A:
4: The amendment to section 19 Schedule 1
5: Where any document is made or thing is done, pursuant to the Public Finance Act 1977 Section 1(2) substituted 5 March 1991 Public Finance Amendment Act 1991 Section 1(3) repealed 1 July 1994 Public Finance Amendment Act 1994 Section 1(3A) repealed 1 July 1994 Public Finance Amendment Act 1994
1A: Purpose
1: The purpose of this Act is to consolidate and amend the law governing the use of public financial resources.
2: To that end, this Act—
a: provides a framework for parliamentary scrutiny of—
i: the Government's expenditure proposals; and
ii: the Government's management of its assets and liabilities; and
b: establishes lines of responsibility for effective and efficient management of public financial resources; and
c: specifies the principles for responsible fiscal management in the conduct of fiscal policy and requires regular reporting on the extent to which the Government's fiscal policy is consistent with those principles; and
d: specifies the minimum financial and non-financial reporting obligations of Ministers, departments (including departmental agencies, interdepartmental executive boards, and interdepartmental ventures), Schedule 4 organisations, and Schedule 4A companies
e: provides for the application of financial management incentives and for the accountability of Schedule 4 organisations and Schedule 4A companies
ea: places limits on the ownership of the companies named in Schedule 5
f: safeguards public assets by providing statutory authority and control for the—
i: borrowing of money; and
ii: issuing of securities; and
iii: use of derivatives
iv: investment of funds; and
v: operation of bank accounts; and
vi: giving of guarantees and indemnities. Section 1A inserted 25 January 2005 section 4 Public Finance Amendment Act 2004 Section 1A(2)﻿(d) amended 7 August 2020 section 4 Public Finance Amendment Act 2020 Section 1A(2)﻿(d) amended 18 July 2013 section 4(2) Public Finance Amendment Act 2013 Section 1A(2)﻿(e) amended 18 July 2013 section 4(3) Public Finance Amendment Act 2013 Section 1A(2)﻿(ea) inserted 30 June 2012 section 4 Public Finance (Mixed Ownership Model) Amendment Act 2012 Section 1A(2)﻿(f)﻿(iii) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
2: Interpretation
1: In this Act, unless the context otherwise requires,— annual financial statements of the Government section 27 appropriation administrator
a: in relation to an appropriation made to the Crown, means the department that administers the appropriation on behalf of the appropriation Minister; and
b: in relation to an appropriation made to an Office of Parliament, means that Office of Parliament appropriation Minister
a: in relation to an appropriation made to an Office of Parliament, means the Speaker; and
b: in relation to an appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service, means the Speaker; and
c: in relation to any other appropriation, means the Minister responsible for that appropriation asset Auditor-General section 4 bank Banking (Prudential Supervision) Act 1989 benefit borrow money
a: includes—
i: entering into hire purchase agreements or agreements that are of the same or a substantially similar nature; and
ii: entering into finance lease arrangements or arrangements that are of the same or a substantially similar nature; and
iii: accepting debt on assignment from other persons; but
b: does not include the purchase of goods or services on credit, or the obtaining of an advance, through the use of a credit card or by a supplier supplying credit for the purchase of goods or services, for a period of 90 days or less from the date the credit card is used or the credit is supplied borrowing expenses Budget main Appropriation Bill capital expenditure carrying amount category
a: in relation to expenses, means a grouping of similar or related expenses; and
b: in relation to capital expenditure, means a grouping of similar or related items of capital expenditure chief executive
a: in the case of a department (other than a department referred to in paragraphs (aa) to (ac)), the chief executive of the department appointed under the Public Service Act 2020
aa: in the case of a departmental agency, the chief executive of the departmental agency appointed under the Public Service Act 2020
ab: in the case of an interdepartmental executive board, the board selected under the Public Service Act 2020
ac: in the case of an interdepartmental venture, the board constituted in accordance with the Public Service Act 2020
b: in the case of a Crown entity, the chief executive officer of the Crown entity:
c: in the case of an Office of Parliament, the head of the Office concerned class of outputs class commitment company Companies Act 1993 Crown the Sovereign
a: means the Sovereign
b: includes all Ministers of the Crown and all departments; but
c: does not include—
i: an Office of Parliament; or
ii: a Crown entity; or
iii: a State enterprise named in Schedule 1 ; or
iv: a Schedule 4 organisation; or
v: a Schedule 4A company; or
vi: a mixed ownership model company ; or
vii: an entity named or described in Schedule 6 Crown Bank Account section 65R Crown entity section 7(1) department
a: means—
i: a department (as defined in section 5
ia: a departmental agency; or
ib: an interdepartmental executive board; or
ic: an interdepartmental venture; or
ii: the New Zealand Defence Force; or
iii: the New Zealand Police; or
iv:
v: the Parliamentary Counsel Office; or
vi: the Office of the Clerk of the House of Representatives; or
vii: the Parliamentary Service; but
b: does not include—
i: a body corporate or other legal entity that has the power to contract; or
ii: an Office of Parliament departmental
a: in relation to expenses, means expenses incurred by a department or an Office of Parliament; and
b: in relation to capital expenditure, means capital expenditure incurred by a department or an Office of Parliament departmental agency section 5 Departmental Bank Account section 65S departmental revenue derivative
a: has the same meaning as in section 8
b: includes a foreign exchange transaction Estimates
a: describes and supports the appropriations being sought in the main Appropriation Bill for
b: contains the information referred to in section 14 expenses financial year forecast financial statements
a: a forecast statement of financial performance; and
b: a forecast statement of financial position; and
c: a forecast statement of cash flows; and
d: any other forecast financial statement required by generally accepted accounting practice; and
e: any other forecast financial statement required for a reporting entity by any regulations made, or instructions issued, under this or any other Act functional chief executive section 5 generally accepted accounting practice section 8 Government Government reporting entity
a: the Sovereign in right of New Zealand; and
b: the legislative, executive, and judicial branches of the Government of New Zealand host department means the host department specified for the departmental agency in Part 2 intelligence and security department
a: the New Zealand Security Intelligence Service; or
b: the Government Communications Security Bureau interdepartmental executive board section 5 interdepartmental venture section 5 lend money
a: includes—
i: deferring payment for any goods or services supplied or works constructed for any person, organisation, or government; and
ii: entering into hire purchase agreements or agreements that are of the same or a substantially similar nature; and
iii: entering into finance lease arrangements or arrangements that are of the same or a substantially similar nature; but
b: does not include selling or supplying goods or services on credit for a period of 90 days or less from the date the credit is supplied liability local authority Local Government Act 2002 main Appropriation Bill main Appropriation Act Minister mixed ownership model company section 45P multi-category appropriation section 7A(1)﻿(g) non-departmental
a: in relation to expenses, means expenses incurred on behalf of the Crown, other than by a department or an Office of Parliament; and
b: in relation to capital expenditure, means capital expenditure incurred on behalf of the Crown, other than by a department or an Office of Parliament Office of Parliament Auditor-General operating surplus other expenses
a: output expenses; or
b: benefits or related expenses; or
c: borrowing expenses output expenses
a: includes the full cost of producing and supplying outputs measured in accrual accounting terms; and
b: includes the full allocation of overhead costs outputs
a: means goods or services that are supplied by a department, Crown entity, Office of Parliament, or other person or body; and
b: includes goods or services that a department, Crown entity, Office of Parliament, or other person or body has agreed or contracted to supply on a contingent basis, but that have not been supplied permanent legislative authority
a: in relation to incurring expenses or capital expenditure, means an express authority given by or under an Act other than an Appropriation Act to incur expenses or capital expenditure without further appropriation ( see section 65ZH section 9
b: in relation to spending public money, means an express authority given by or under an Act to spend public money without further authority ( see section 6 principles of responsible fiscal management section 26G(1) public money or on behalf of public security section 63 relevant department
a: in relation to an interdepartmental venture, a relevant department specified for the venture in Part 4
b: in relation to an interdepartmental executive board, each department listed in the Order in Council made under section 26 remeasurements
a: means revisions of prices or estimates that result from revised expectations of future economic benefits or obligations that change the carrying amounts of assets or liabilities; but
b: does not include—
i: revisions that result from transactions or events that give rise to the initial recognition of assets or liabilities in the reporting period; or
ii: revisions that result from transactions or events directly attributable to actions or decisions taken by the Crown; or
iii: expenses that arise from the consumption of assets during the reporting period; or
iv: interest income or interest expenses responsible Minister
a: in relation to an Office of Parliament, to the Office of the Clerk of the House of Representatives, or to the Parliamentary Service, the Speaker:
b: in relation to any other department, the Minister for the time being responsible for the financial performance of the department:
c: in relation to a Schedule 4 organisation, the Minister for the time being responsible for the financial performance of the organisation:
d: in relation to a Schedule 4A company, the Minister and the other shareholding Minister or Ministers Schedule 4 organisation Schedule 4 Schedule 4A company Schedule 4A Secretary Speaker
a: the Speaker of the House of Representatives; or
b: on the dissolution or expiration of Parliament until the first meeting of the new Parliament, the person holding the office of Speaker of the House of Representatives at the time of the dissolution or expiration, or, if there was at that time a vacancy in the office of Speaker of the House of Representatives or if the person holding that office at that time dies, the person holding the office of Deputy Speaker at the time of the dissolution or expiration specified agency
a: a departmental agency:
b: an interdepartmental executive board:
c: an interdepartmental venture specified date Part 4 section 44(6) subsidiary section 5 Supplementary Estimates
a: is presented to the House of Representatives in accordance with section 16
b: contains the information referred to in section 17 Treasury Treasury instructions section 80 Trust Bank Account Part 7 trust money section 66(1) type section 7A(1) Vote
a: the responsibility of a designated Minister or Ministers and administered by 1 department ( but see
b: the responsibility of the Speaker and administered by—
i: an Office of Parliament; or
ii: the Office of the Clerk of the House of Representatives; or
iii: the Parliamentary Service working day
a: a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign’s birthday, Te Rā Aro ki a Matariki/Matariki Observance Day, and Labour Day; and
ab: if Waitangi Day or Anzac Day falls on a Saturday or a Sunday, the following Monday; and
b: the day observed as anniversary day in Wellington; and
c: a day in the period commencing on 25 December in one year and ending on 15 January in the next year.
2: The reference to department in paragraph (a) of the definition of Vote in subsection (1) includes a specified agency only if the Minister has approved the specified agency’s administration of a Vote.
3: Section 6
2:
3:
4:
5: Notwithstanding any other provision of this Act, where this Act provides that a power may be exercised by both the Minister and the Secretary, the power may be exercised by the Secretary only in so far as the Minister has not otherwise directed. Section 2 substituted 1 July 1994 Public Finance Amendment Act 1994 Section 2(1) annual financial statements of the Crown repealed 25 January 2005 section 5(1) Public Finance Amendment Act 2004 Section 2(1) annual financial statements of the Government inserted 25 January 2005 section 5(1) Public Finance Amendment Act 2004 Section 2(1) appropriation administrator inserted 18 July 2013 section 5(1) Public Finance Amendment Act 2013 Section 2(1) appropriation Minister inserted 18 July 2013 section 5(1) Public Finance Amendment Act 2013 Section 2(1) asset inserted 25 January 2005 section 5(1) Public Finance Amendment Act 2004 Section 2(1) Audit Office repealed 25 January 2005 section 5(1) Public Finance Amendment Act 2004 Section 2(1) Auditor-General inserted 25 January 2005 section 5(1) Public Finance Amendment Act 2004 Section 2(1) bank amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Section 2(1) borrow money inserted 25 January 2005 section 5(2) Public Finance Amendment Act 2004 Section 2(1) borrowing expenses amended 12 December 2000 section 3 Public Finance Amendment Act 2000 Section 2(1) Budget inserted 25 January 2005 section 5(3) Public Finance Amendment Act 2004 Section 2(1) Budget amended 1 July 2014 section 58(1) Public Finance Amendment Act 2013 Section 2(1) capital contribution repealed 25 January 2005 section 5(4) Public Finance Amendment Act 2004 Section 2(1) capital expenditure inserted 25 January 2005 section 5(4) Public Finance Amendment Act 2004 Section 2(1) carrying amount inserted 25 January 2005 section 5(4) Public Finance Amendment Act 2004 Section 2(1) category inserted 18 July 2013 section 5(1) Public Finance Amendment Act 2013 Section 2(1) chief executive replaced 7 August 2020 section 5(1) Public Finance Amendment Act 2020 Section 2(1) chief executive replaced 7 August 2020 section 5(1) Public Finance Amendment Act 2020 Section 2(1) chief executive inserted 7 August 2020 section 5(1) Public Finance Amendment Act 2020 Section 2(1) chief executive inserted 7 August 2020 section 5(1) Public Finance Amendment Act 2020 Section 2(1) company replaced 5 December 2013 section 14 Companies Amendment Act 2013 Section 2(1) contingent liability repealed 25 January 2005 section 5(5) Public Finance Amendment Act 2004 Section 2(1) cost repealed 25 January 2005 section 5(5) Public Finance Amendment Act 2004 Section 2(1) Crown Her Majesty repealed 25 January 2005 section 5(6)﻿(a) Public Finance Amendment Act 2004 Section 2(1) Crown the Sovereign inserted 25 January 2005 section 5(6)﻿(a) Public Finance Amendment Act 2004 Section 2(1) Crown the Sovereign amended 25 January 2005 section 5(6)﻿(b) Public Finance Amendment Act 2004 Section 2(1) Crown the Sovereign amended 18 July 2013 section 5(3) Public Finance Amendment Act 2013 Section 2(1) Crown the Sovereign inserted 18 July 2013 section 5(4) Public Finance Amendment Act 2013 Section 2(1) Crown the Sovereign inserted 18 July 2013 section 5(4) Public Finance Amendment Act 2013 Section 2(1) Crown the Sovereign inserted 18 July 2013 section 5(4) Public Finance Amendment Act 2013 Section 2(1) Crown the Sovereign amended 28 July 2014 section 138 Te Urewera Act 2014 Section 2(1) Crown the Sovereign inserted 28 July 2014 section 138 Te Urewera Act 2014 Section 2(1) Crown Bank Account substituted 25 January 2005 section 5(7) Public Finance Amendment Act 2004 Section 2(1) Crown entity substituted 25 January 2005 section 5(8) Public Finance Amendment Act 2004 Section 2(1) Crown entity group repealed 25 January 2005 section 5(8) Public Finance Amendment Act 2004 Section 2(1) department substituted 25 January 2005 section 5(9) Public Finance Amendment Act 2004 Section 2(1) department replaced 18 July 2013 section 5(5) Public Finance Amendment Act 2013 Section 2(1) department replaced 7 August 2020 section 5(2) Public Finance Amendment Act 2020 Section 2(1) department inserted 7 August 2020 section 5(2) Public Finance Amendment Act 2020 Section 2(1) department inserted 7 August 2020 section 5(2) Public Finance Amendment Act 2020 Section 2(1) department inserted 7 August 2020 section 5(2) Public Finance Amendment Act 2020 Section 2(1) department repealed 28 September 2017 section 322 Intelligence and Security Act 2017 Section 2(1) departmental inserted 18 July 2013 section 5(6) Public Finance Amendment Act 2013 Section 2(1) departmental agency inserted 18 July 2013 section 5(6) Public Finance Amendment Act 2013 Section 2(1) departmental agency amended 7 August 2020 section 5(3) Public Finance Amendment Act 2020 Section 2(1) Departmental Bank Account substituted 25 January 2005 section 5(10) Public Finance Amendment Act 2004 Section 2(1) derivative inserted 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(1) derivative transaction repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(1) Estimates substituted 25 January 2005 section 5(12) Public Finance Amendment Act 2004 Section 2(1) Estimates amended 1 July 2014 section 58(2) Public Finance Amendment Act 2013 Section 2(1) forecast financial statements inserted 25 January 2005 section 5(13) Public Finance Amendment Act 2004 Section 2(1) functional chief executive inserted 7 August 2020 section 5(4) Public Finance Amendment Act 2020 Section 2(1) generally accepted accounting practice replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 2(1) Government reporting entity inserted 25 January 2005 section 5(14) Public Finance Amendment Act 2004 Section 2(1) host department inserted 18 July 2013 section 5(6) Public Finance Amendment Act 2013 Section 2(1) host department amended 7 August 2020 section 5(5) Public Finance Amendment Act 2020 Section 2(1) impact repealed 1 July 2014 section 58(3) Public Finance Amendment Act 2013 Section 2(1) intelligence and security department inserted 25 January 2005 section 5(14) Public Finance Amendment Act 2004 Section 2(1) interdepartmental executive board inserted 7 August 2020 section 5(4) Public Finance Amendment Act 2020 Section 2(1) interdepartmental venture inserted 7 August 2020 section 5(4) Public Finance Amendment Act 2020 Section 2(1) lend money inserted 18 July 2013 section 5(6) Public Finance Amendment Act 2013 Section 2(1) liability substituted 25 January 2005 section 5(15) Public Finance Amendment Act 2004 Section 2(1) local authority substituted 1 July 2003 section 262 Local Government Act 2002 Section 2(1) main Appropriation Bill inserted 1 July 2014 section 58(8) Public Finance Amendment Act 2013 Section 2(1) Minister substituted 25 June 1997 section 2 Treasurer (Statutory References) Act 1997 Section 2(1) mixed ownership model company inserted 30 June 2012 section 5 Public Finance (Mixed Ownership Model) Amendment Act 2012 Section 2(1) Mode B repealed 25 January 2005 section 5(16) Public Finance Amendment Act 2004 Section 2(1) Mode C repealed 25 January 2005 section 5(16) Public Finance Amendment Act 2004 Section 2(1) multi-category appropriation inserted 1 July 2014 section 58(8) Public Finance Amendment Act 2013 Section 2(1) multi-class output expense appropriation repealed 1 July 2014 section 58(4) Public Finance Amendment Act 2013 Section 2(1) non-departmental inserted 18 July 2013 section 5(6) Public Finance Amendment Act 2013 Section 2(1) Office of Parliament amended 25 January 2005 section 5(18) Public Finance Amendment Act 2004 Section 2(1) Office of Parliament amended 1 July 2001 section 53 Public Audit Act 2001 Section 2(1) other expenses substituted 25 January 2005 section 5(19) Public Finance Amendment Act 2004 Section 2(1) other expenses replaced 1 July 2014 section 58(5) Public Finance Amendment Act 2013 Section 2(1) outcome repealed 1 July 2014 section 58(6) Public Finance Amendment Act 2013 Section 2(1) output expenses inserted 25 January 2005 section 5(20) Public Finance Amendment Act 2004 Section 2(1) outputs substituted 25 January 2005 section 5(20) Public Finance Amendment Act 2004 Section 2(1) permanent legislative authority inserted 18 July 2013 section 5(6) Public Finance Amendment Act 2013 Section 2(1) permanent legislative authority amended 1 July 2014 section 58(9) Public Finance Amendment Act 2013 Section 2(1) principles of responsible fiscal management inserted 25 January 2005 section 5(20) Public Finance Amendment Act 2004 Section 2(1) public money amended 18 July 2013 section 5(7)﻿(a) Public Finance Amendment Act 2013 Section 2(1) public money amended 18 July 2013 section 5(7)﻿(b) Public Finance Amendment Act 2013 Section 2(1) public security amended 25 January 2005 section 5(21) Public Finance Amendment Act 2004 Section 2(1) purchased repealed 25 January 2005 section 5(22) Public Finance Amendment Act 2004 Section 2(1) raising a loan repealed 25 January 2005 section 5(22) Public Finance Amendment Act 2004 Section 2(1) relevant department inserted 7 August 2020 section 5(4) Public Finance Amendment Act 2020 Section 2(1) remeasurements inserted 25 January 2005 section 5(23) Public Finance Amendment Act 2004 Section 2(1) responsible Minister replaced 18 July 2013 section 5(8) Public Finance Amendment Act 2013 Section 2(1) Schedule 4 organisation inserted 18 July 2013 section 5(9) Public Finance Amendment Act 2013 Section 2(1) Schedule 4A company inserted 18 July 2013 section 5(9) Public Finance Amendment Act 2013 Section 2(1) specified agency inserted 7 August 2020 section 5(4) Public Finance Amendment Act 2020 Section 2(1) specified date inserted 7 August 2020 section 5(4) Public Finance Amendment Act 2020 Section 2(1) subsidiary replaced 5 December 2013 section 14 Companies Amendment Act 2013 Section 2(1) Supplementary Estimates substituted 25 January 2005 section 5(25) Public Finance Amendment Act 2004 Section 2(1) trading revenue repealed 25 January 2005 section 5(26) Public Finance Amendment Act 2004 Section 2(1) type inserted 25 January 2005 section 5(27) Public Finance Amendment Act 2004 Section 2(1) type amended 1 July 2014 section 58(7) Public Finance Amendment Act 2013 Section 2(1) Vote substituted 25 January 2005 section 5(28) Public Finance Amendment Act 2004 Section 2(1) Vote amended 7 August 2020 section 5(6) Public Finance Amendment Act 2020 Section 2(1) working day added 25 January 2005 section 5(29) Public Finance Amendment Act 2004 Section 2(1) working day replaced 12 April 2022 wehenga 7 Te Ture mō te Hararei Tūmatanui o te Kāhui o Matariki 2022 section 7 Te Kāhui o Matariki Public Holiday Act 2022 Section 2(1) working day inserted 1 January 2014 section 8 Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Act 2013 Section 2(2) inserted 7 August 2020 section 5(7) Public Finance Amendment Act 2020 Section 2(2) repealed 25 January 2005 section 5(30) Public Finance Amendment Act 2004 Section 2(3) inserted 7 August 2020 section 5(7) Public Finance Amendment Act 2020 Section 2(3) repealed 25 January 2005 section 5(30) Public Finance Amendment Act 2004 Section 2(4) repealed 25 January 2005 section 5(30) Public Finance Amendment Act 2004
2A: Provisions affecting application of amendments to this Act
Schedule 1 see section 88 Section 2A inserted 18 July 2013 section 6 Public Finance Amendment Act 2013
3: Act to bind Crown
This Act shall bind the Crown. 1977 No 65 s 3
3AA: Meaning of generally accepted accounting practice
Section 3AA repealed 1 July 1994 Public Finance Amendment Act 1994
3A: Power to amend Schedule 4
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4
a: to add the name or description of—
i: any body, office (except an Office of Parliament), or officer established by or under an Act; or
ii: any trust that is created by the Crown by deed of trust or in respect of which the Crown has appointed, or has the power to appoint, a majority of the trustees:
b: to apply to an organisation any provision of the Crown Entities Act 2004 Schedule 4 section 165
c: to disapply to an organisation any provision of the Crown Entities Act 2004 Schedule 4
d: to substitute the name of an organisation in recognition of a change in its name:
e: to remove the name or description of an organisation.
2: The Minister must recommend that an Order in Council be made to remove the name or description of an organisation from Schedule 4
a: the organisation has become a company or a Crown entity; or
b: in the case of a body, office, or officer established by or under an Act, the body, office, or officer has been disestablished; or
c: in the case of a trust,—
i: the trust has been wound up; or
ii: the Crown no longer has the power to appoint a majority of the trustees.
3: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 3A replaced 18 July 2013 section 7 Public Finance Amendment Act 2013 Section 3A(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
3AB: Power to amend Schedule 4A
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, amend Schedule 4A
a: to add the name of a company that meets the following criteria:
i: Ministers of the Crown hold, on behalf of the Crown, more than 50% of the issued ordinary shares in the capital of the company; and
ii: shares in the company are not listed on a registered market (within the meaning of the Securities Markets Act 1988
iii: the company is not a Crown entity or a State enterprise named in Schedule 1
b: to apply to a company any provision of the Crown Entities Act 2004 Schedule 4A section 165
c: to disapply to a company any provision of the Crown Entities Act 2004 Schedule 4A
d: to substitute the name of a company in recognition of a change in its name:
e: to remove the name of a company.
2: The Minister must recommend that an Order in Council be made to remove the name of a company from Schedule 4A
a: the company has been removed from the register of companies kept under the Companies Act 1993
b: the company no longer meets the criteria set out in subsection (1)﻿(a).
3: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 3AB inserted 18 July 2013 section 7 Public Finance Amendment Act 2013 Section 3AB(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
3B: Power to amend Schedule 5 to reflect name changes
1: The Governor-General may, by Order in Council, amend Schedule 5
2: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 3B inserted 30 June 2012 section 6 Public Finance (Mixed Ownership Model) Amendment Act 2012 Section 3B(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
3C: Power to amend Schedule 5 to restore company to State-Owned Enterprises Act 1986
1: The Governor-General may, by Order in Council, repeal the name of a company from Schedule 5 Schedules 1 2
2: Every Order in Council made under subsection (1) must (unless the amendment is redundant), and is empowered to, also—
a: insert the name of that company in Part 2
b: repeal the name of that company from Part B of Schedule 36 Part A
3: An Order in Council may be made under this section only if the Governor-General in Council is satisfied, at the time of the making of the Order in Council, that 100% of the issued ordinary shares in the company are held by Ministers of the Crown on behalf of the Crown.
4: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 3C inserted 30 June 2012 section 6 Public Finance (Mixed Ownership Model) Amendment Act 2012 Section 3C(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
3D: Power to amend Schedule 6 to reflect name changes
1: The Governor-General may, by Order in Council, on the recommendation of the Minister following consultation with the person with statutory responsibility for performing or exercising the rights, powers, and duties of the legal entity, amend Schedule 6
2: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 3D inserted 28 July 2014 section 138 Te Urewera Act 2014 Section 3D(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
1: Appropriations
Part 1 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Requirement for appropriations Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
4: Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority
1: The Crown or an Office of Parliament must not incur expenses or capital expenditure, except as expressly authorised by an appropriation, or other authority, by or under an Act.
2: In this section, expense
a: a remeasurement of an asset or a liability; or
b: an operating loss incurred by—
i: a Crown entity named or described in the Crown Entities Act 2004
ia: a Schedule 4 organisation; or
ii: a Schedule 4A company; or
iia: a mixed ownership model company listed in Schedule 5
iii: a State enterprise named in Schedule 1
iv: the Reserve Bank of New Zealand; or
v: any other entity whose financial statements must be consolidated into the financial statements of the Government to comply with generally accepted accounting practice. Section 4 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 4(2)﻿(b)﻿(ia) inserted 18 July 2013 section 8 Public Finance Amendment Act 2013 Section 4(2)﻿(b)﻿(ii) replaced 18 July 2013 section 8 Public Finance Amendment Act 2013 Section 4(2)﻿(b)﻿(iia) inserted 30 June 2012 section 7 Public Finance (Mixed Ownership Model) Amendment Act 2012
4A: Authority to incur expenses or capital expenditure under Imprest Supply Act
1: The authority given by an Imprest Supply Act to incur expenses or capital expenditure in a financial year in advance of appropriation is an authority under an Act for the purposes of sections 4(1) 26C(1)
2: However, subsection (1) does not apply unless an appropriation for the expenses or capital expenditure is made before the end of the financial year. Section 4A inserted 18 July 2013 section 9 Public Finance Amendment Act 2013
5: Public money must not be spent unless in accordance with statutory authority
The Crown or an Office of Parliament must not spend public money, except as expressly authorised by or under an Act (including this Act). Section 5 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004
6: Authority to spend public money
Public money may be spent, without further authority than this section, for the purpose of—
a: meeting expenses or capital expenditure incurred in accordance with an appropriation or other authority by or under an Act; and
b: the payment of goods and services tax in relation to those expenses or capital expenditure; and
c: the repayment of debt of the Crown or an Office of Parliament; and
d: the settlement of liabilities of the Crown or an Office of Parliament. Section 6 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004
7: Expenses and capital expenditure must be allocated to appropriation type
All expenses and capital expenditure to be incurred in any financial year must be allocated to one of the appropriation types set out in section 7A(1) Section 7 replaced 1 July 2014 section 59 Public Finance Amendment Act 2013
7A: Appropriation types
1: An appropriation must be an appropriation for—
a: 1 category of output expenses; or
b: 1 category of benefits or related expenses; or
c: 1 category of borrowing expenses; or
d: 1 category of other expenses; or
e: 1 category of capital expenditure; or
f: expenses and capital expenditure to be incurred by an intelligence and security department; or
g: 2 or more categories of 1 or more of the following:
i: output expenses:
ii: other expenses:
iii: non-departmental capital expenditure.
2: For the purposes of this section,—
a: a category of output expenses must not include both departmental and non-departmental expenses; and
b: a category of other expenses must not include both departmental and non-departmental expenses; and
c: a category of capital expenditure must not include both departmental and non-departmental capital expenditure. Section 7A inserted 1 July 2014 section 59 Public Finance Amendment Act 2013
7B: Requirements for multi-category appropriations
A multi-category appropriation described in section 7A(1)﻿(g)
a: must be approved by the Minister; and
b: must include only categories of expenses or non-departmental capital expenditure that contribute to a single overarching purpose. Section 7B inserted 1 July 2014 section 59 Public Finance Amendment Act 2013
7C: Responsibility for, and administration and use of, appropriations
1: An appropriation is made to the Crown or an Office of Parliament.
2: In the case of an appropriation made to the Crown,—
a: a Minister (the appropriation Minister
b: the appropriation must be administered by 1 department (the appropriation administrator
c: if the appropriation is an appropriation for departmental expenses or a multi-category appropriation, any other department may incur expenses against the appropriation—
i: at the direction of the appropriation Minister; or
ii: with the agreement of the appropriation administrator.
3: Despite subsection (2)﻿(a), the Speaker is responsible for any appropriation administered by the Office of the Clerk of the House of Representatives or the Parliamentary Service.
4: In the case of an appropriation made to an Office of Parliament,—
a: the Speaker is responsible for the appropriation; and
b: the appropriation must be administered by that Office of Parliament.
5: The reference to department in subsection (2)﻿(b) does not include a departmental agency that, under Part 2 Section 7C inserted 18 July 2013 section 10 Public Finance Amendment Act 2013 Section 7C(5) inserted 7 August 2020 section 6 Public Finance Amendment Act 2020
8: Appropriation limited by amount
The authority to incur expenses or capital expenditure provided by an appropriation under an Appropriation Act—
a: is limited to the amount specified for the appropriation by or under that Act; and
b: may not be exceeded (except as provided for in section 25 section 26A section 26B Section 8 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004
9: Appropriation limited by scope
1: The authority to incur expenses or capital expenditure provided by an appropriation—
a: is limited to the scope of the appropriation; and
b: may not be used for any other purpose.
2: For the purposes of subsection (1),—
a: the scope of a multi-category appropriation is the scope of each of the individual categories of expenses or non-departmental capital expenditure included in that appropriation; and
b: any variation made by the Minister of the terms and conditions of a capital injection to any entity referred to in section 27(3)﻿(a) to (f) Section 9 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 9(2)﻿(a) replaced 1 July 2014 section 60 Public Finance Amendment Act 2013
9A: Supplementary Estimates
Section 9A repealed 25 January 2005 section 7 Public Finance Amendment Act 2004
9B: Power of Secretary to obtain information
Section 9B repealed 25 January 2005 section 7 Public Finance Amendment Act 2004
10: Appropriation limited by period
1: The authority to incur expenses or capital expenditure provided by an appropriation under an Appropriation Act lapses at the end of the financial year to which the Act relates.
2: However, if an Appropriation Act provides that the authority to incur expenses or capital expenditure applies for more than 1 financial year, that authority—
a: lapses at the end of the period specified in the Act; and
b: continues in force until the end of the period specified despite the repeal of the Act, unless the authority is expressly varied, revoked, or replaced by an authority in another Appropriation Act.
3: Despite subsection (2), the authority to incur expenses or capital expenditure must not apply for more than 5 financial years. Section 10 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004
11: Expenses or payments authorised other than by Appropriation Act
1: If an Act (other than an Appropriation Act) expressly provides for payments to be appropriated by or under that Act, any expense or capital expenditure incurred that gives rise to the need for those payments may be incurred without further appropriation than this section.
2: Each expense or capital expenditure incurred in accordance with an appropriation , or other authority, Section 11 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 11(2) amended 18 July 2013 section 11 Public Finance Amendment Act 2013
12: Timing of
main Appropriation Bill Except as otherwise provided by a resolution of the House of Representatives, the main Appropriation Bill for Section 12 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 12 heading amended 1 July 2014 section 61(1) Public Finance Amendment Act 2013 Section 12 amended 1 July 2014 section 61(2) Public Finance Amendment Act 2013 Requirements for capital injections Heading inserted 1 July 2014 section 62 Public Finance Amendment Act 2013
12A: Capital injections must be authorised
1: The Crown must not make a capital injection to a department (other than an intelligence and security department) or an Office of Parliament unless the capital injection is authorised under an Appropriation Act.
2: The authority to make the capital injection—
a: is limited by the amount specified for the capital injection by that Appropriation Act; and
b: must not be exceeded, except as provided for in section 25A Section 12A inserted 1 July 2014 section 62 Public Finance Amendment Act 2013
12B: Authority to make capital injections under Imprest Supply Act
1: The authority given by an Imprest Supply Act to make a capital injection in a financial year in advance of authorisation under an Appropriation Act must be treated as an authority under an Appropriation Act for the purposes of sections 12A 26CA
2: However, subsection (1) does not apply unless the capital injection is authorised under an Appropriation Act before the end of the financial year. Section 12B inserted 1 July 2014 section 62 Public Finance Amendment Act 2013 Information requirements for appropriations Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
13: Estimates and supporting information must be presented with main Appropriation Bill
1: The Minister must present to the House of Representatives the Estimates immediately after he or she has delivered the Budget , or at any time prior to that time on the same day
2: The Minister must also present to the House of Representatives the sections 15 to 15F Section 13 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 13 heading replaced 1 July 2014 section 63(1) Public Finance Amendment Act 2013 Section 13(1) amended 25 February 2012 section 4 Public Finance Amendment Act 2012 Section 13(2) amended 1 July 2014 section 63(2)﻿(a) Public Finance Amendment Act 2013 Section 13(2) amended 1 July 2014 section 63(2)﻿(b) Public Finance Amendment Act 2013
14: Content of Estimates
1: The Estimates must state, for each appropriation sought in the main Appropriation Bill for a financial year and each appropriation authorised for that financial year by an Appropriation Act,—
a: the Vote to which the appropriation relates; and
b: the appropriation Minister; and
c: the appropriation administrator; and
ca: if the appropriation administrator is a specified agency and the Vote is not administered by the specified agency, the department administering the Vote; and
d: the type of the appropriation (in terms of section 7A(1)
e: in the case of a multi-category appropriation, the overarching purpose of the appropriation (in terms of section 7B(b)
f: the amount authorised by the appropriation (in terms of section 8
g: the scope of the appropriation (in terms of section 9
h: the period of the appropriation (in terms of section 10
2: The Estimates must state, for each appropriation authorised by a permanent legislative authority against which it is proposed to incur expenses or capital expenditure in the financial year to which the Estimates relate,—
a: the authority for the appropriation; and
b: the information specified in subsection (1)﻿(a) to (h), other than subsection (1)﻿(f); and
c: the amount forecast to be incurred under the appropriation.
3: The Estimates must state,—
a: for each department, the responsible Minister for the department; and
b: for each department other than an intelligence and security department, the amount of capital injections authorised to be made to the department for the financial year to which the Estimates relate.
4: The Minister may, in addition to the information referred to in this section, include in the Estimates any further information that the Minister considers necessary or desirable. Section 14 replaced 1 July 2014 section 64 Public Finance Amendment Act 2013 Section 14(1)﻿(ca) inserted 7 August 2020 section 7 Public Finance Amendment Act 2020
15: Main Appropriation Bill: supporting information relating to Votes
1: The supporting information for the main Appropriation Bill must include, for the total in each Vote of each type of appropriation,—
a: voted departmental and non-departmental expenses or capital expenditure for the financial year to which the Appropriation Bill relates; and
b: comparative voted and estimated actual expenses or capital expenditure for the previous financial year; and
c: comparative actual expenses or capital expenditure for each of the 4 financial years that preceded the previous financial year; and
d: projected expenses or capital expenditure for each of the 3 financial years following the financial year to which the Appropriation Bill relates.
2: However, if the Vote has been restructured 1 or more times since the beginning of the period in respect of which supporting information is required under subsection (1), then the comparative information required under that subsection must, to the extent practicable, be prepared as if the restructuring had occurred before the beginning of that period.
3: For the purposes of subsection (2), a Vote has been restructured
a: it has been combined with, or separated from, any other Vote; or
b: an appropriation, or a category within a multi-category appropriation, has been moved into the Vote from, or moved out of the Vote into, any other Vote; or
c: a category of expenses or non-departmental capital expenditure has been moved into or out of a multi-category appropriation within the Vote. Section 15 replaced 1 July 2014 section 64 Public Finance Amendment Act 2013
15A: Main Appropriation Bill: supporting information relating to appropriations
1: The supporting information for the main Appropriation Bill for a financial year must include the information specified in subsections (2) and (3), including any information required by section 15B
a: each appropriation sought in the Bill; and
b: each appropriation authorised for that financial year by an Appropriation Act; and
c: each appropriation authorised by a permanent legislative authority against which it is proposed to incur expenses or capital expenditure in that financial year.
2: The following information is required for each appropriation:
a: a concise explanation of what the appropriation is intended to achieve; and
b: comparative voted and estimated actual expenses or capital expenditure for the previous financial year; and
c: 1 of the following:
i: the end-of-year performance information details described in section 15C
ii: if the Minister has, under section 15D
3: The following additional information is required for each category of a multi-category appropriation:
a: a concise explanation of what the category is intended to achieve; and
b: projected expenses or non-departmental capital expenditure to be incurred for the category; and
c: comparative projected and estimated actual expenses or non-departmental capital expenditure for the category for the previous financial year.
4: However,—
a: in the case of an appropriation for expenses and capital expenditure to be incurred by an intelligence and security department, subsection (2)﻿(c) does
b: in the case of an appropriation for borrowing expenses, subsection (2)﻿(c) does not apply. Section 15A inserted 1 July 2014 section 64 Public Finance Amendment Act 2013 Section 15A(4)﻿(a) amended 28 September 2017 section 323 Intelligence and Security Act 2017
15B: Comparative information requirements if no directly corresponding appropriation or category
1: This section applies if—
a: section 15A
b: that appropriation or category (the new appropriation or category
2: The comparative information for the new appropriation or category must include all comparable expenses or capital expenditure.
3: The comparative information for the new appropriation or category must also, to the extent practicable,—
a: identify each previous appropriation or category that includes comparable expenses or capital expenditure; and
b: identify the amount of comparable expenses or capital expenditure for that previous appropriation or category.
4: In this section, comparable expenses or capital expenditure Section 15B inserted 1 July 2014 section 64 Public Finance Amendment Act 2013
15C: End-of-year performance information requirements
1: The end-of-year performance information details for an appropriation ( see section 15A(2)﻿(c)﻿(i)
a: a concise explanation of how performance against the appropriation will be assessed; and
b: in the case of a multi-category appropriation, a concise explanation of how performance against each category of the appropriation will be assessed; and
c: who, in accordance with subsection (2), will provide information at the end of the financial year on what has been achieved with the appropriation; and
d: the document in which the end-of-year performance information will be presented to the House of Representatives.
2: End-of-year performance information on an appropriation must be provided,—
a: for a multi-category appropriation,—
i: by a Crown entity, a Schedule 4 organisation (but not including a Reserves Board (as described in Schedule 4
ii: by a department if, in accordance with a direction under section 7C(2)﻿(c)﻿(i)
iii: by the appropriation administrator, in any other case; and
b: for an appropriation described in subsection (3), by the appropriation Minister; and
c: for any other appropriation, by a department, a functional chief executive, a Crown entity, a Schedule 4 organisation (but not including a Reserves Board (as described in Schedule 4
3: Subsection (2)﻿(b) applies in respect of an appropriation for non-departmental expenses, or non-departmental capital expenditure, from which resources will be provided to a person or an entity other than a department, a functional chief executive, a Crown entity, a Schedule 4 organisation (but not including a Reserves Board (as described in Schedule 4 Section 15C inserted 1 July 2014 section 64 Public Finance Amendment Act 2013 Section 15C(2)﻿(a) replaced 24 October 2019 section 114 Statutes Amendment Act 2019 Section 15C(2)﻿(c) amended 7 August 2020 section 8(1) Public Finance Amendment Act 2020 Section 15C(2)﻿(c) amended 8 September 2018 section 81 Statutes Amendment Act 2018 Section 15C(3) amended 7 August 2020 section 8(2) Public Finance Amendment Act 2020 Section 15C(3) amended 8 September 2018 section 81 Statutes Amendment Act 2018
15D: Exemptions from end-of-year performance information requirements for certain categories of expenses and capital expenditure
1: The Minister may grant an exemption from the end-of-year performance information requirements in respect of an appropriation for departmental output expenses, or a category of departmental output expenses within a multi-category appropriation, if the Minister is satisfied that the appropriation or category relates exclusively to outputs supplied by a department to 1 or more other departments.
2: The Minister may grant an exemption from the end-of-year performance information requirements in respect of an appropriation for non-departmental expenses or non-departmental capital expenditure, or a category of non-departmental expenses or non-departmental capital expenditure within a multi-category appropriation, if the Minister is satisfied that—
a: the appropriation or category is one from which resources will be provided to a person or an entity other than a department, a functional chief executive,
b: 1 of the following applies:
i: key performance information relevant to the appropriation or category will be otherwise readily available to the House of Representatives:
ii: end-of-year performance information for the appropriation or category is not likely to be informative in the light of the nature of the transaction or causal event giving rise to the expenses or capital expenditure:
iii: the amount of the annual appropriation (or its annual average equivalent if the appropriation is a multi-year or permanent appropriation) or the projected amount of the expenses or non-departmental capital expenditure in the category (or its annual average equivalent if the category is part of a multi-year or permanent appropriation) is less than $5 million for expenses or less than $15 million for capital expenditure.
3: An exemption under this section may be granted for 1 or more financial years or until further notice.
4: The Minister’s reasons for granting an exemption must be included in the supporting information for an Appropriation Bill ( see section 15A(2)﻿(c)﻿(ii)
5: In subsection (2)﻿(b)﻿(iii),— multi-year appropriation see section 10 permanent appropriation
6: An exemption under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication It is not required to be published LA19 s 73(2) Presentation It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 15D inserted 1 July 2014 section 64 Public Finance Amendment Act 2013 Section 15D(2)﻿(a) amended 7 August 2020 section 9 Public Finance Amendment Act 2020 Section 15D(6) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
15E: Main Appropriation Bill: supporting information relating to capital injections
1: The supporting information for the main Appropriation Bill must include, for each capital injection authorised for the financial year to which the Appropriation Bill relates,—
a: the department to which the capital injection is to be made; and
b: a concise explanation of what the capital injection is to be used for; and
c: the amount of the capital injection.
2: Subsection (1) does not apply to a capital injection to an intelligence and security department. Section 15E inserted 1 July 2014 section 64 Public Finance Amendment Act 2013
15EA: Main Appropriation Bill: supporting information relating to child poverty
1: The supporting information for the main Appropriation Bill must include a report on child poverty.
2: The report must—
a: discuss any progress made, in the most recent completed financial year, in reducing child poverty consistent with the targets under the Child Poverty Reduction Act 2018
b: indicate whether and, if so, to what extent, measures in or related to that Bill will affect child poverty. Section 15EA inserted 21 December 2018 section 49 Child Poverty Reduction Act 2018
15F: Minister may present further supporting information
The Minister may, in addition to the information referred to in sections 15 to 15EA Section 15F inserted 1 July 2014 section 64 Public Finance Amendment Act 2013 Section 15F amended 21 December 2018 section 50 Child Poverty Reduction Act 2018
16: Supplementary Estimates
and supporting information
1: The Minister must present to the House of Representatives the Supplementary Estimates on the day of the introduction of an Appropriation Bill that is other than—
a: the main Appropriation Bill
b: an Appropriation Bill that deals only with matters that relate to a previous financial year.
2: The Minister must also present to the House of Representatives the supporting information referred to in sections 17A 17B Section 16 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 16 heading amended 1 July 2014 section 65(1) Public Finance Amendment Act 2013 Section 16(1)﻿(a) amended 1 July 2014 section 65(2) Public Finance Amendment Act 2013 Section 16(2) inserted 1 July 2014 section 65(3) Public Finance Amendment Act 2013
17: Content of Supplementary Estimates
1: The Supplementary Estimates for a financial year must include—
a: the information specified in section 14(1)
i: each appropriation authorised for that financial year by an Appropriation Act; and
ii: each appropriation sought in an Appropriation Bill relating to that financial year; and
b: the information specified in section 14(2)
2: The Supplementary Estimates must state,—
a: for each department, the responsible Minister for the department; and
b: for each department other than an intelligence and security department, the amount of capital injections authorised to be made to the department for the financial year.
3: The Minister may, in addition to the information referred to in this section, include in the Supplementary Estimates any further information that the Minister considers necessary or desirable. Section 17 replaced 1 July 2014 section 66 Public Finance Amendment Act 2013
17A: Supplementary Appropriation Bill: supporting information relating to appropriations
1: The supporting information for a supplementary Appropriation Bill must include,—
a: for each new appropriation, the information (excluding comparative information) specified in section 15A
b: for each existing appropriation, any change to the information (excluding comparative information) specified in section 15A
2: In this section,— comparative information section 15A(2)﻿(b) and (3)﻿(c) existing appropriation section 15A new appropriation
a: an appropriation—
i: that is sought in that Bill; and
ii: for which the information specified in section 15A
b: an appropriation—
i: that is authorised by a permanent legislative authority to incur expenses or capital expenditure; and
ii: against which it is proposed to incur expenses or capital expenditure in that financial year; and
iii: for which the information specified in section 15A Section 17A inserted 1 July 2014 section 66 Public Finance Amendment Act 2013
17B: Supplementary Appropriation Bill: supporting information relating to capital injections
1: The supporting information for a supplementary Appropriation Bill must include,—
a: for each new capital injection, the information specified in section 15E
b: for each existing capital injection, any change to the information specified in section 15E
2: In this section,— existing capital injection section 15E new capital injection
a: that is authorised for that financial year; and
b: for which the information specified in section 15E
3: This section does not apply to a capital injection to an intelligence and security department. Section 17B inserted 1 July 2014 section 66 Public Finance Amendment Act 2013
18: Minister must consult on proposal to change format or content of information presented with Appropriation Bills
1: This section applies if the Minister proposes to significantly change the format or content of—
a: the Estimates ( see section 14
b: the supporting information for a main Appropriation Bill ( see sections 15 to 15EA
c: the Supplementary Estimates ( see section 17
d: the supporting information for a supplementary Appropriation Bill ( see sections 17A 17B
2: Before giving effect to the proposal, the Minister must—
a: submit the proposal to the Speaker (who must then present it to the House of Representatives); and
b: consider any comments that he or she receives from—
i: the Speaker; or
ii: any committee of the House of Representatives that considered the proposal. Section 18 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 18(1) replaced 1 July 2014 section 67 Public Finance Amendment Act 2013 Section 18(1)﻿(b) amended 21 December 2018 section 50 Child Poverty Reduction Act 2018
19: Power of Secretary to obtain information
1: The Secretary may request a department , a functional chief executive, section 27(3)﻿(a) to (f)
a: the Estimates; or
b: the supporting information for a main Appropriation Bill ( see sections 15 to 15EA
c: the Supplementary Estimates ( see section 17
d: the supporting information for a supplementary Appropriation Bill ( see sections 17A 17B
2: A request under subsection (1)—
a: must be in writing; and
b: may state the date by which, and the manner in which, the information requested must be provided.
3: If a date is specified under subsection (2)﻿(b), that date must be reasonable having regard to the time limits prescribed by this Act for presenting to the House of Representatives—
a: the Estimates and the supporting information for a main Appropriation Bill ( see section 13
b: the Supplementary Estimates and the supporting information for a supplementary Appropriation Bill ( see section 16
4: A department , a functional chief executive, or an Section 19 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 19(1) amended 7 August 2020 section 10(1) Public Finance Amendment Act 2020 Section 19(1) amended 18 July 2013 section 12(1) Public Finance Amendment Act 2013 Section 19(1)﻿(a) replaced 1 July 2014 section 68(1) Public Finance Amendment Act 2013 Section 19(1)﻿(b) replaced 1 July 2014 section 68(1) Public Finance Amendment Act 2013 Section 19(1)﻿(b) amended 21 December 2018 section 50 Child Poverty Reduction Act 2018 Section 19(1)﻿(c) replaced 1 July 2014 section 68(1) Public Finance Amendment Act 2013 Section 19(1)﻿(d) inserted 1 July 2014 section 68(1) Public Finance Amendment Act 2013 Section 19(3)﻿(a) replaced 1 July 2014 section 68(2) Public Finance Amendment Act 2013 Section 19(3)﻿(b) replaced 1 July 2014 section 68(2) Public Finance Amendment Act 2013 Section 19(4) amended 7 August 2020 section 10(2) Public Finance Amendment Act 2020 Section 19(4) amended 18 July 2013 section 12(2) Public Finance Amendment Act 2013 Reporting on appropriations: end-of-year performance information Heading inserted 1 July 2014 section 69 Public Finance Amendment Act 2013
19A: Provision of end-of-year performance information other than by Ministers
1: This section applies to the department, functional chief executive, Crown entity, Schedule 4 organisation, or Schedule 4A company performance reporter
2: As soon as practicable after the end of each financial year, the performance reporter must prepare the information that is required by section 19C
3: Not later than 15 working days after the performance reporter receives an audit report on the information under section 45D section 156
a: the performance reporter must, unless the performance reporter is the appropriation administrator, provide the information and the audit report to the appropriation administrator; and
b: the appropriation administrator must provide the information and the audit report to the appropriation Minister; and
c: the appropriation Minister must ensure that the information and the audit report are presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.
4: If Parliament is not in session, subsection (3)﻿(c) does not apply, but the appropriation Minister must ensure that, as soon as possible after the commencement of the next session of Parliament, the information and the audit report are presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.
5: The performance reporter must ensure that the information is published as soon as practicable after the information is presented to the House of Representatives, or, if subsection (4) applies, not later than 15 working days after receiving the audit report. Section 19A inserted 1 July 2014 section 69 Public Finance Amendment Act 2013 Section 19A(1) amended 7 August 2020 section 11 Public Finance Amendment Act 2020 Section 19A(1) amended 8 September 2018 section 82 Statutes Amendment Act 2018
19B: Provision of end-of-year performance information by Ministers
1: This section applies to the appropriation Minister most recently identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for a financial year.
2: Within 4 months after the end of the financial year, the appropriation Minister must—
a: prepare the information that is required by section 19C
b: ensure that the information is presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.
3: If Parliament is not in session, subsection (2)﻿(b) does not apply, but the appropriation Minister must ensure that, as soon as possible after the commencement of the next session of Parliament, the information is presented to the House of Representatives in the document most recently specified for that purpose in the supporting information for an Appropriation Act.
4: The appropriation Minister must ensure that the information is published as soon as practicable after the information is presented to the House of Representatives, or, if subsection (3) applies, not later than 4 months after the end of the financial year. Section 19B inserted 1 July 2014 section 69 Public Finance Amendment Act 2013
19BA: Extension of time limits for 2019/20 financial year information: COVID-19
2021-07-01 Public Finance Act 1989 Section 19BA is repealed at the close of 30 June 2021 Section 19BA repealed 30 June 2021
19C: Requirements for end-of-year performance information
1: The end-of-year performance information for an appropriation must include the following:
a: an assessment of what has been achieved with the appropriation in the financial year; and
b: a comparison of the actual expenses or capital expenditure incurred in relation to the appropriation in the financial year with the expenses or capital expenditure that were appropriated or forecast to be incurred.
2: In the case of a multi-category appropriation, subsection (1)﻿(a) and (b) must be read as if the references in those paragraphs to an appropriation included a reference to each category of expenses or capital expenditure within that appropriation.
3: The end-of-year performance information for an appropriation must be prepared in accordance with generally accepted accounting practice, to the extent that the information is of a form or nature for which provision is made in financial reporting standards that form part of generally accepted accounting practice. Section 19C inserted 1 July 2014 section 69 Public Finance Amendment Act 2013 Other provisions relating to appropriations Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
20: Departments may incur output expenses for, or on behalf of, other departments
Section 20 repealed 18 July 2013 section 13 Public Finance Amendment Act 2013
21: Expenses restricted by revenue
1: If a class of outputs is supplied by a department, output expenses may be incurred, without further appropriation than this section, up to the amount of revenue expected to be earned by that class of outputs from parties other than the Crown.
2: However, subsection (1) applies only if—
a: the appropriation is limited to 1 class of outputs; and
b: the appropriation to which the output expenses are to be charged is specified in an Appropriation Act for that year as being supplied under this section; and
c: the approval of the Minister for the output expenses to be incurred under this section has been given.
3: Despite subsections (1) and (2), the Minister may direct that only part of the output expenses may be incurred to a level less than the amount of the revenue earned from parties other than the Crown.
4: This section does not authorise output expenses to be incurred, in respect of any class of outputs, that exceed the actual amount of revenue earned by that class of outputs from parties other than the Crown in any year.
5: In this section, a reference to the amount of revenue earned by a class of outputs from parties other than the Crown may include a reference to the amount of revenue earned by a class of outputs from another department. Section 21 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004
22: Operating surplus of department
1: Except as agreed between the Minister and the responsible Minister for a department, the department must not retain any operating surplus that results from its activities.
2:
3:
4: Section 22 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 22(2) repealed 1 July 2014 section 70 Public Finance Amendment Act 2013 Section 22(3) repealed 1 July 2014 section 70 Public Finance Amendment Act 2013 Section 22(4) repealed 1 July 2014 section 70 Public Finance Amendment Act 2013
23: Net assets of departments must be confirmed
Section 23 repealed 1 July 2014 section 71 Public Finance Amendment Act 2013
24: Movements within departmental statement of financial position
1: A department other than an intelligence and security department
2: A department may, without further authority than this section, use the proceeds of the sale or disposal of its assets, together with any working capital held by it, to pay its liabilities. Section 24 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 24(1) amended 1 July 2014 section 72 Public Finance Amendment Act 2013
25: Expenses or capital expenditure may be incurred in emergencies
1: This section applies if—
a: a state of emergency is declared under the Civil Defence Emergency Management Act 2002
b: a situation occurs that affects the public health or safety of New Zealand or any part of New Zealand that the Government declares to be an emergency.
2: The Minister may approve expenses or capital expenditure to be incurred to meet the emergency or disaster and, whether or not there is an appropriation by Parliament available for the purpose and despite sections 4 8 9
3:
4: Public money may be spent, without further authority than this section, for the purpose of meeting expenses or capital expenditure incurred in accordance with subsection (2) that have not been appropriated.
5: A statement about any expenses and capital expenditure incurred under this section in any financial year that have not been appropriated must be included in—
a: the annual financial statements of the Government; and
b: an Appropriation Bill for confirmation by Parliament.
6: Subsection (5) does not limit the validity of any expenses or capital expenditure incurred under this section. Section 25 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 25(1)﻿(a) replaced 29 November 2016 section 42 Civil Defence Emergency Management Amendment Act 2016 Section 25(3) repealed 18 July 2013 section 14 Public Finance Amendment Act 2013
25A: Capital injections may be made in emergencies
1: The Minister may approve a capital injection to meet an emergency or disaster described in section 25(1)
2: A capital injection approved under subsection (1) may be made despite not being authorised under an Appropriation Act and despite section 12A
3: A statement about any capital injection made under subsection (2) in any financial year that has not been authorised in an Appropriation Act (other than a capital injection to an intelligence and security department) must be included in—
a: the annual financial statements of the Government; and
b: an Appropriation Bill for confirmation by Parliament.
4: Subsection (3) does not limit the validity of any capital injection made under this section. Section 25A inserted 1 July 2014 section 73 Public Finance Amendment Act 2013
26: Minister may determine terms and conditions of capital injections
1: The Minister, after consultation with the Minister responsible for an entity, may—
a: determine the terms and conditions under which any capital injection authorised by an appropriation under section 7A(1)﻿(e)
b: vary those terms and conditions at any time.
2: However, subsection (1)﻿(b) does not apply in respect of a State enterprise named in Schedule 1 Section 26 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26(1)﻿(a) amended 1 July 2014 section 74 Public Finance Amendment Act 2013
26A: Transfer of resources between output expense appropriations
1: The Governor-General may, by Order in Council, direct that an amount appropriated for an output expense appropriation in a Vote be transferred, without further appropriation than this section, to another output expense appropriation in that Vote if—
a: the amount transferred does not increase that appropriation for a financial year by more than 5%; and
b: no other transfer under this section to that appropriation has occurred during that financial year; and
c: the total amount appropriated for that financial year for all output expense appropriations in that Vote is unaltered.
2: A clause that confirms the making of an Order in Council under subsection (1) in a financial year must be included in an Appropriation Bill that applies to that financial year.
3: Subsection (2) does not limit the validity of an Order in Council made under subsection (1) or the validity of any transfer made under that Order in Council.
4: In this section, output expense appropriation
a: an appropriation for 1 category of output expenses:
b: a multi-category appropriation that includes only categories of output expenses.
5: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 26A substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26A(4) inserted 8 September 2018 section 83 Statutes Amendment Act 2018 Section 26A(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
26B: Minister may approve expenses or capital expenditure to be incurred in excess of existing appropriation
1: This section applies if the Minister considers that the incurring of expenses or capital expenditure in the last 3 months of any financial year that is in excess, but within the scope, of an existing appropriation by or under an Act should be approved.
2: The Minister may, in that financial year or not later than 3 months after the end of that financial year, approve in respect of that appropriation up to the greater of—
a: an amount not exceeding $10,000; or
b: 2% of the total amount appropriated for that appropriation.
3: Subsection (2) applies—
a: even though all or part of the expenses or capital expenditure may have been incurred; and
b: despite sections 4 8
4: Any expenses or capital expenditure that the Minister approves under this section must be included, for confirmation by Parliament, in an Appropriation Bill that applies to that financial year.
5: Subsection (4) does not limit the validity of any expenses or capital expenditure incurred under this section. Section 26B inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26C: Expenses or capital expenditure incurred without appropriation or other authority requires validation by Parliament
1: The incurring of any expenses or capital expenditure without appropriation, or other authority, by or under an Act is unlawful, unless it is validated by Parliament in an Appropriation Act.
2: The Minister must, on the introduction of any Appropriation Bill that seeks validation by Parliament of any expenses or capital expenditure incurred without appropriation, or other authority, by or under an Act, present to the House of Representatives a report that sets out—
a: the amount of each category of expenses or capital expenditure so incurred; and
b: the explanation of the Minister responsible for the expenses or capital expenditure. Section 26C inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26CA: Capital injections made without authority or approval require validation by Parliament
1: The making of a capital injection without authority under an Appropriation Act or approval under section 25A
2: The Minister must, on the introduction of any Appropriation Bill that seeks validation by Parliament of any capital injection made without authority under an Appropriation Act or approval under section 25A
a: the amount of each capital injection so made; and
b: an explanation by the responsible Minister for the department to which the capital injection was made.
3: This section does not apply to a capital injection to an intelligence and security department. Section 26CA inserted 1 July 2014 section 75 Public Finance Amendment Act 2013
26D: Reporting requirements in relation to expenses or capital expenditure incurred in excess of, or without, appropriation
and capital injections made in excess of, or without, authorisation
1: This section applies to—
a: any expenses that have, or capital expenditure that has, been incurred—
i: without appropriation or other authority; or
ii: in excess of an existing appropriation or other authority; and
b: any capital injection (other than a capital injection to an intelligence and security department) that has been made—
i: without authority under an Appropriation Act or approval under section 25A
ii: in excess of an existing authority under an Appropriation Act or an existing approval under section 25A
2: A statement that relates to any expenses , capital expenditure, or capital injection
a: the annual financial statements of the Government for the financial year; and
b: the annual report of the administering department for the financial year in accordance with section 45A(c) and (e) Section 26D inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26D heading amended 1 July 2014 section 76(1) Public Finance Amendment Act 2013 Section 26D(1) replaced 1 July 2014 section 76(2) Public Finance Amendment Act 2013 Section 26D(2) amended 1 July 2014 section 76(3) Public Finance Amendment Act 2013 Section 26D(2)﻿(b) replaced 1 July 2014 section 76(4) Public Finance Amendment Act 2013 Application of this Part to Offices of Parliament Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26E: Application of this Part to Offices of Parliament
1: Before an appropriation in a Vote administered by an Office of Parliament may be included in an Appropriation Bill for a financial year, the chief executive of the Office concerned must prepare and submit to the House of Representatives the following information:
a: an estimate of expenses and capital expenditure to be incurred for—
i: each proposed appropriation; and
ii: each proposed category of expenses or non-departmental capital expenditure within a multi-category appropriation; and
b: the revenue of the Office (including the revenue associated with each proposed expenses appropriation and each proposed category of expenses within a multi-category appropriation).
2: Before an authorisation for a capital injection to be made to an Office of Parliament may be included in an Appropriation Bill for a financial year, the chief executive of the Office concerned must submit to the House of Representatives the amount of the proposed capital injection.
3: The House of Representatives, after considering the information provided under subsections (1) and (2), may for each Office of Parliament commend to the Governor-General, by way of an address,—
a: the estimates referred to in subsection (1)﻿(a); and
b: the capital injection referred to in subsection (2).
4: The House of Representatives may, in that address, request that the estimates be included as a Vote, and the capital injection be authorised, in an Appropriation Bill for that year.
5: If the Vote or authorisation is included in an Appropriation Bill for that year, this Part applies, with all necessary modifications, as if references to a department were references to an Office of Parliament.
6: An alteration to the Vote or authorisation during that year is subject to the provisions of this section. Section 26E replaced 1 July 2014 Public Finance Amendment Act 2013
2: Fiscal responsibility
and wellbeing Part 2 substituted 25 January 2005 section 7 Public Finance Amendment Act 2004 Part 2 heading amended 1 July 2020 section 4 Public Finance (Wellbeing) Amendment Act 2020 Preliminary Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26F: Interpretation
If the context requires, references in this Part to total debt, total operating expenses, total operating revenues, and total net worth are references to the total fiscal aggregates of the forecast financial statements prepared in accordance with section 26Q Section 26F inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26G: Principles of responsible fiscal management
1: The Government must pursue its policy objectives in accordance with the following principles (the principles of responsible fiscal management
a: reducing total debt to prudent levels so as to provide a buffer against factors that may impact adversely on the level of total debt in the future by ensuring that, until those levels have been achieved, total operating expenses in each financial year are less than total operating revenues in the same financial year; and
b: once prudent levels of total debt have been achieved, maintaining those levels by ensuring that, on average, over a reasonable period of time, total operating expenses do not exceed total operating revenues; and
c: achieving and maintaining levels of total net worth that provide a buffer against factors that may impact adversely on total net worth in the future; and
d: managing prudently the fiscal risks facing the Government; and
e: when formulating revenue strategy, having regard to efficiency and fairness, including the predictability and stability of tax rates; and
f: when formulating fiscal strategy, having regard to the interaction between fiscal policy and monetary policy; and
g: when formulating fiscal strategy, having regard to its likely impact on present and future generations; and
h: ensuring that the Crown's resources are managed effectively and efficiently.
2: However, the Government may depart from the principles of responsible fiscal management if—
a: the departure from those principles is temporary; and
b: the Minister, in accordance with this Act, states—
i: the reasons for the departure from those principles; and
ii: the approach the Government intends to take to return to those principles; and
iii: the period of time that the Government expects to take to return to those principles. Section 26G inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26G(1)﻿(e) replaced 4 September 2013 section 4 Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26G(1)﻿(f) inserted 4 September 2013 section 4 Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26G(1)﻿(g) inserted 4 September 2013 section 4 Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26G(1)﻿(h) inserted 4 September 2013 section 4 Public Finance (Fiscal Responsibility) Amendment Act 2013
26H: Generally accepted accounting practice
All financial statements and forecast financial statements included in reports and updates required under this Part must be prepared in accordance with generally accepted accounting practice. Section 26H inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Fiscal strategy report Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26I: Fiscal strategy report
1: The Minister must, in each financial year and in accordance with subsection (2), present to the House of Representatives a report on the Government's fiscal strategy.
2: The Minister must present the fiscal strategy report immediately after he or she has delivered the Budget for the financial year to which the report relates , or at any time prior to that time on the same day
3: Sections 26J to 26L Section 26I inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26I(2) amended 25 February 2012 section 5 Public Finance Amendment Act 2012
26J: Contents of fiscal strategy report: long-term objectives
1: The fiscal strategy report must—
a: state the Government's long-term objectives for fiscal policy and, in particular, for the following variables:
i: total operating expenses:
ii: total operating revenues:
iii: the balance between total operating expenses and total operating revenues:
iv: the level of total debt:
v: the level of total net worth; and
b: explain how those long-term objectives accord with the principles of responsible fiscal management; and
c: state the period to which those long-term objectives relate (which must be a period of 10 or more consecutive financial years commencing with the financial year to which the fiscal strategy report relates).
2: The fiscal strategy report must also—
a: assess the consistency of the long-term objectives referred to in subsection (1)﻿(a)—
i: with the long-term objectives in the most recent fiscal strategy report; or
ii: if the long-term objectives in the most recent fiscal strategy report were amended in the budget policy statement most recently prepared under section 26M
b: if the long-term objectives referred to in subsection (1)﻿(a) are not consistent with the long-term objectives in the most recent fiscal strategy report or in the budget policy statement most recently prepared under section 26M Section 26J inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26K: Contents of fiscal strategy report: short-term intentions
1: The fiscal strategy report must, for the financial year to which the report relates and at least the next 2 financial years, indicate explicitly, by the use of ranges, ratios, or other means, the Government's short-term intentions for each of the variables specified in section 26J(1)﻿(a)
2: The fiscal strategy report must—
a: assess the consistency of the short-term intentions referred to in subsection (1) with—
i: the principles of responsible fiscal management; and
ii: the long-term objectives referred to in section 26J(1)﻿(a)
b: if those short-term intentions are not consistent with the principles of responsible fiscal management or with the long-term objectives referred to in section 26J(1)﻿(a)
i: the reasons for the departure of those short-term intentions from those principles or from those long-term objectives or from both; and
ii: the approach the Government intends to take to ensure that those short-term intentions become consistent with those principles and those long-term objectives; and
iii: the period of time that is expected to elapse before those short-term intentions become consistent with those principles and those long-term objectives.
3: The fiscal strategy report must also—
a: assess the consistency of the short-term intentions referred to in subsection (1)—
i: with the short-term intentions indicated in the most recent fiscal strategy report; or
ii: if the short-term intentions indicated in the most recent fiscal strategy report were amended in the budget policy statement most recently prepared under section 26M
b: if the short-term intentions referred to in subsection (1) are not consistent with the short-term intentions in the most recent fiscal strategy report or in the budget policy statement most recently prepared under section 26M Section 26K inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26KA: Contents of fiscal strategy report: management of the Crown's resources
1: The fiscal strategy report must include details of the Government's strategy for managing expenditure, assets, and liabilities in the period of at least 3 financial years commencing with the financial year to which the report relates.
2: Details of the Government's strategy for managing expenditure, assets, and liabilities may include—
a: the outcomes sought from new or reallocated expenditure, assets, and liabilities; and
b: any expected change over time in the major components of expenditure, assets, and liabilities. Section 26KA inserted 4 September 2013 section 5 Public Finance (Fiscal Responsibility) Amendment Act 2013
26KB: Contents of fiscal strategy report: wellbeing objectives
The fiscal strategy report must—
a: explain how wellbeing objectives have guided the Government’s Budget decisions; and
b: if the wellbeing objectives that guided the Government’s Budget decisions differ from those indicated in the budget policy statement most recently prepared under section 26M Section 26KB inserted 1 July 2020 section 5 Public Finance (Wellbeing) Amendment Act 2020
26L: Contents of fiscal strategy report: other matters
1: The fiscal strategy report must include—
a: an assessment of the extent to which the economic and fiscal update prepared under section 26O(1) section 26K(1)
b: if the economic and fiscal update departs from those short-term intentions, an explanation of the reasons for the departure ; and
c: an assessment of the extent to which the fiscal performance of the Government, in the period since the most recent substantial change in the political party composition of the administration, is consistent with the Government's fiscal strategy report (if any) for that period; and
d: details of the Government's revenue strategy, including the Government's objectives for the tax system and tax policy.
2: The fiscal strategy report must also include—
a: scenarios that—
i: contain projections of trends in the variables specified in section 26J(1)﻿(a)
ii: explain the reasons for any significant differences from previous scenarios; and
b: an assessment of the consistency of the scenarios with the long-term objectives referred to in section 26J(1)﻿(a)
c: if the scenarios depart from the long-term objectives referred to in section 26J(1)﻿(a)
3: The projections required by subsection (2)﻿(a)﻿(i) must relate to the period to which the long-term objectives referred to in section 26J(1)﻿(a)
4: In subsection (1)﻿(c), administration Section 26L inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26L(1)﻿(b) amended 4 September 2013 section 6(1) Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26L(1)﻿(c) inserted 4 September 2013 section 6(2) Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26L(1)﻿(d) inserted 4 September 2013 section 6(2) Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26L(4) inserted 4 September 2013 section 6(3) Public Finance (Fiscal Responsibility) Amendment Act 2013 Budget policy statement Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26M: Budget policy statement
1: The Minister must present to the House of Representatives a budget policy statement—
a: not later than 31 March in each financial year; or
b: if Parliament is not in session on 31 March and a budget policy statement has not been presented in that financial year, as soon as possible after the commencement of the next session of Parliament.
2: The budget policy statement must, for the financial year commencing on 1 July after the statement is presented, state the broad strategic priorities by which the Government will be guided in preparing the Budget for that financial year, including—
a: the overarching policy goals that will guide the Government's Budget decisions; and
(aa): the wellbeing objectives that will guide the Government’s Budget decisions; and
b: the policy areas that the Government will focus on in that year; and
c: how the Budget for that year accords with the short-term intentions referred to in the most recent fiscal strategy report or the amended short-term intentions under subsection (3).
3: The budget policy statement must,—
a: if the long-term objectives referred to in section 26J(1)﻿(a)
b: if the short-term intentions referred to in section 26K(1) ; and
c: if the details of the Government's strategy for managing expenditure, assets, and liabilities ( see section 26KA
4: The wellbeing objectives referred to in subsection (2)﻿(aa)
5: The budget policy statement must explain how the wellbeing objectives are intended to support long-term wellbeing in New Zealand. Section 26M inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26M(2)﻿(aa) inserted 1 July 2020 section 6(1) Public Finance (Wellbeing) Amendment Act 2020 Section 26M(3)﻿(b) amended 4 September 2013 section 7(1) Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26M(3)﻿(c) inserted 4 September 2013 section 7(2) Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26M(4) inserted 1 July 2020 section 6(2) Public Finance (Wellbeing) Amendment Act 2020 Section 26M(5) inserted 1 July 2020 section 6(2) Public Finance (Wellbeing) Amendment Act 2020 Statement on long-term fiscal position Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26N: Statement on long-term fiscal position
1: Before the end of the second financial year after the commencement of this section and then at intervals not exceeding 4 years,—
a: the Treasury must prepare a statement on the long-term fiscal position; and
b: the Minister must present each statement to the House of Representatives.
2: The statement must—
a: relate to a period of at least 40 consecutive financial years commencing with the financial year in which the statement is prepared; and
b: be accompanied by—
i: a statement of responsibility signed by the Secretary stating that the Treasury has, in preparing the statement under subsection (1), used its best professional judgements about the risks and the outlook; and
ii: a statement of all significant assumptions underlying any projections included in the statement under subsection (1). Section 26N inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26NAAA: Extension of time limit for 2020 statement: COVID-19
2021-10-01 Public Finance Act 1989 Section 26NAAA is repealed on 1 October 2021 Section 26NAAA repealed 1 October 2021 Investment statement Heading inserted 4 September 2013 section 8 Public Finance (Fiscal Responsibility) Amendment Act 2013
26NA: Investment statement
1: The Minister must, before the end of 2017 and then at intervals not exceeding 4 years, present to the House of Representatives an investment statement prepared by the Treasury.
2: The investment statement must—
a: describe and state the value of the Crown's significant assets and liabilities; and
b: state how those assets and liabilities have changed in value over time; and
c: forecast how those assets and liabilities are expected to change in value in each of at least the next 2 financial years after the financial year in which the investment statement is presented; and
d: identify any significant differences between the information specified in paragraphs (a) to (c) and the equivalent information reported in the most recent previous investment statement.
3: The investment statement must be accompanied by a statement of responsibility signed by the Secretary.
4: The statement of responsibility must state that the investment statement has been prepared by the Treasury using its best professional judgements. Section 26NA inserted 4 September 2013 section 8 Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26NA(3) inserted 1 July 2020 section 7 Public Finance (Wellbeing) Amendment Act 2020 Section 26NA(4) inserted 1 July 2020 section 7 Public Finance (Wellbeing) Amendment Act 2020 Wellbeing report Heading inserted 1 July 2020 section 8 Public Finance (Wellbeing) Amendment Act 2020
26NB: Wellbeing report
1: The Minister must, before the end of 2022 and then at intervals not exceeding 4 years, present to the House of Representatives a report on wellbeing prepared by the Treasury.
2: Using indicators, the report must describe—
a: the state of wellbeing in New Zealand; and
b: how the state of wellbeing in New Zealand has changed over time; and
c: the sustainability of, and any risk to, the state of wellbeing in New Zealand.
3: The report must be accompanied by a statement of responsibility signed by the Secretary.
4: The statement of responsibility must state that the indicators have been selected, and the report prepared, by the Treasury using its best professional judgements. Section 26NB inserted 1 July 2020 section 8 Public Finance (Wellbeing) Amendment Act 2020 Economic and fiscal updates Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26O: Economic and fiscal update
1: The Minister must, in accordance with subsection (2), present to the House of Representatives an economic and fiscal update prepared by the Treasury for each financial year.
2: The Minister must present the economic and fiscal update immediately after he or she has delivered the Budget for the financial year to which the update relates , or at any time prior to that time on the same day
3: The update must—
a: contain economic and fiscal forecasts that relate to—
i: the financial year to which the update relates; and
ii: each of the next 2 financial years; and
b: contain a statement of tax policy changes in accordance with section 26R
c: be accompanied by a statement of responsibility.
4: The update must state—
a: the day on which the contents of the update were finalised; or
b: the days on which the contents of different specified aspects of the update were finalised. Section 26O inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26O(2) amended 25 February 2012 section 6 Public Finance Amendment Act 2012
26P: Economic forecasts
1: The economic forecasts contained in the economic and fiscal update prepared under section 26O
a: gross domestic product (including the major components of gross domestic product):
b: consumer prices:
c: unemployment and employment:
d: current account position of the balance of payments.
2: The economic forecasts must also include a statement of all significant assumptions underlying the forecasts. Section 26P inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26Q: Fiscal forecasts
1: The fiscal forecasts contained in the economic and fiscal update prepared under section 26O
2: In addition to the forecast financial statements required by subsection (1), the fiscal forecasts must include—
a: a statement of borrowings that reflects the forecast borrowing activities for each of those financial years:
b: any other statements that are necessary to fairly reflect—
i: the forecast financial operations for each of those financial years; and
ii: the forecast financial position at the end of each of those financial years.
3: The fiscal forecasts must also include—
a: a statement of commitments from the most recent monthly financial statements of the Government that are required to be prepared under section 31A
b: a statement of specific fiscal risks of the Government as at the day on which the forecast financial statements are finalised—
i: that sets out specific fiscal risks that relate to—
A: the Government decisions and other circumstances required by section 26U section 26O
B: any other contingent liabilities (including any guarantees or indemnities given under any Act); and
ii: that discloses the rules used to determine what is and is not a fiscal risk; and
c: a statement of all significant accounting policies (including any changes from the accounting policies contained in the annual financial statements of the Government most recently presented to the House of Representatives or published under section 31
d: in relation to each forecast financial statement required by subsections (1) and (2)﻿(a) and, if appropriate, subsection (2)﻿(b),—
i: comparative budgeted and estimated actual figures for the financial year immediately before the first of the financial years to which the fiscal forecasts relate; and
ii: comparative actual figures for the financial year that is 2 years before the first of the financial years to which the fiscal forecasts relate; and
e: a statement of all significant assumptions underlying the fiscal forecasts; and
f: a statement that shows the sensitivity of the fiscal aggregates to changes in economic conditions.
4: The fiscal forecasts must be for the same reporting entity as the annual financial statements of the Government to be prepared under section 27 Section 26Q inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26R: Annual statement of tax policy changes
1: The statement of tax policy changes contained in the economic and fiscal update prepared under section 26O
a: a summary and quantitative assessment of tax policy changes that have resulted in a material change to the tax revenue forecasts for the financial year to which the update relates and at least the next 2 financial years; and
b: the basis for determining whether or not a particular tax policy change should be included in that summary.
2: In this section, tax policy change
a: a change in tax legislation that has been enacted since the most recent statement of tax policy changes prepared under this section; and
b: a proposed change in tax legislation that has been approved by the Government (whether set out in a Bill that has been introduced into the House of Representatives or otherwise). Section 26R inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26S: Half-year economic and fiscal update
1: The Minister must, not earlier than 1 November nor later than 31 December in each financial year,—
a: arrange to be published a half-year economic and fiscal update prepared by the Treasury; and
b: present the update to the House of Representatives.
2: However, if a half-year economic and fiscal update has not been presented by 31 December in a financial year because Parliament has not been in session since the date that the update was published, the Minister must present the half-year economic and fiscal update as soon as possible after the next meeting of Parliament.
3: The half-year economic and fiscal update must—
a: include the information required by sections 26O(3)﻿(a) and (4) 26P 26Q 26U
i: the reference to estimated actual figures in section 26Q(3)﻿(d)﻿(i)
ii: the actual figures required by section 26Q(3)﻿(d)﻿(ii)
b: be accompanied by a statement of responsibility.
4: However, the Minister is not required to arrange the publication of the half-year economic and fiscal update in any financial year if, in the period of that financial year beginning on 1 October and ending on 31 December, a pre-election economic and fiscal update—
a: has been published under section 26T
b: is required to be published under that section. Section 26S inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26T: Pre-election economic and fiscal update
1: The Minister must, not earlier than 30 working days, nor later than 20 working days, before the day appointed as polling day in relation to any general election of members of the House of Representatives, arrange to be published a pre-election economic and fiscal update prepared by the Treasury.
2: The pre-election economic and fiscal update must,—
a: except as provided in subsection (3), include the information required by sections 26O(3)﻿(a) and (4) 26P 26Q 26U
b: be accompanied by a statement of responsibility.
3: If, before the day on which a pre-election economic and fiscal update is required to be published under this section, the annual financial statements of the Government for the financial year immediately before the first of the financial years to which the fiscal forecasts relate have been presented to the House of Representatives or published under section 31
a: the reference to estimated actual figures in section 26Q(3)﻿(d)﻿(i)
b: the actual figures required by section 26Q(3)﻿(d)﻿(ii)
4: If the day of the dissolution of Parliament is less than 30 working days before the day appointed as polling day in relation to the general election of members of the House of Representatives, the Minister must arrange for the pre-election economic and fiscal update required under this section to be published not later than 10 working days after the day of the dissolution of Parliament.
5: The Minister must, as soon as possible after the next meeting of Parliament, present to the House of Representatives a copy of the update published under this section. Section 26T inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Disclosure requirements for economic and fiscal updates Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26U: Disclosure of policy decisions and other circumstances that may influence future fiscal situation
1: An economic and fiscal update prepared under section 26O section 26S section 26T section 26V
2: If the fiscal implications of Government decisions and other circumstances referred to in subsection (1) can be quantified for particular years with reasonable certainty by the day on which the forecast financial statements are finalised, the quantified fiscal implications of those Government decisions and other circumstances must be included in the forecast financial statements.
3: If the fiscal implications of Government decisions and other circumstances referred to in subsection (1) cannot be quantified for or assigned to particular years with reasonable certainty by the day on which the forecast financial statements are finalised, those Government decisions and other circumstances must be disclosed in the statement of specific fiscal risks of the Government required by section 26Q(3)﻿(b) Section 26U inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26V: Limits on disclosure requirements
Sections 26Q(2)﻿(b) 26U(1)
a: to incorporate that decision, circumstance, or statement in an economic and fiscal update is likely—
i: to prejudice the substantial economic interests of New Zealand; or
ii: to prejudice the security or defence of New Zealand or the international relations of the Government; or
iii: to compromise the Government in a material way in negotiation, litigation, or commercial activity; or
iv: to result in material loss of value to the Government; and
b: there is no reasonable or prudent way the Government can avoid this prejudice, compromise, or material loss,—
i: in the case of a circumstance, by making a decision before the day on which the forecast financial statements are finalised; or
ii: in the case of a decision or circumstance, by incorporating in the update the fiscal implications of that decision or circumstance, or the nature of that decision or circumstance, but without reference to its fiscal implications; or
iii: in the case of a statement, by incorporating that statement in the update. Section 26V inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Statement of responsibility Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26W: Requirements for statement of responsibility
1: The statement of responsibility required by section 26O section 26S section 26T
a: the Minister; and
b: any other Minister designated for all or any of the purposes of subsection (2)﻿(a) to (c); and
c: the Secretary.
2: The statement of responsibility must comprise—
a: a statement by the Minister, and any other Minister designated for the purpose of this paragraph, that the following matters have been communicated to the Secretary:
i: all policy decisions with material economic or fiscal implications that the Government has made before the day on which the contents of an economic and fiscal update or of the relevant aspect of the update were finalised; and
ii: all other circumstances with material economic or fiscal implications of which the Minister and that other Minister (if any) were aware before that day; and
b: a statement by the Secretary that the Treasury has supplied to the Minister, and to any other Minister designated for the purpose of this paragraph, an economic and fiscal update—
i: that incorporates the fiscal and economic implications of the decisions and circumstances referred to in paragraph (a); but
ii: that does not incorporate any decisions, circumstances, or statements that the Minister and any other Minister designated for the purpose of section 26V
c: a statement of the responsibility of the Minister, and of any other Minister designated for all or any of the purposes of this paragraph and paragraphs (a) and (b),—
i: for the integrity of the disclosures contained in the update; and
ii: for the consistency with the requirements of this Part of the information contained in the update; and
iii: for the omission from the update under section 26V
3: The statement referred to in subsection (2)﻿(b) must be accompanied by a statement that the economic and fiscal update has been prepared by the Treasury—
a: using its best professional judgements; and
b: on the basis of economic and fiscal information available to it before the day on which the contents of the update or the relevant aspect of the update were finalised. Section 26W inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Miscellaneous Heading inserted 25 January 2005 section 7 Public Finance Amendment Act 2004
26X: Certain statements and updates may be published in advance of presentation to House of Representatives
The Minister may arrange for the following to be published in advance of their being presented to the House of Representatives:
a: a budget policy statement under section 26M(1)
aa: a statement on the long-term fiscal position under section 26N(1)
ab: an investment statement under section 26NA(1)
ac: a wellbeing report under section 26NB(1)
b: a half-year economic and fiscal update under section 26S(1)
c: a pre-election economic and fiscal update under section 26T(1) Section 26X inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26X(aa) replaced 1 July 2020 section 9 Public Finance (Wellbeing) Amendment Act 2020 Section 26X(ab) inserted 1 July 2020 section 9 Public Finance (Wellbeing) Amendment Act 2020 Section 26X(ac) inserted 1 July 2020 section 9 Public Finance (Wellbeing) Amendment Act 2020
26Y: Publication and availability of reports, statements, or updates
1: The Minister must arrange for a specified document to be published on an Internet site maintained by or on behalf of the Treasury as soon as practicable after the specified document is—
a: published in advance of being presented to the House of Representatives (if permitted under section 26X
b: if paragraph (a) does not apply, presented to the House of Representatives.
2: The Secretary must ensure that the specified document remains available on the Internet site for inspection by members of the public for at least 5 financial years after the financial year (or, if the document relates to more than 1 financial year, the first financial year) to which the document relates.
3: Subsection (1)﻿(a) is deemed to be satisfied if the advance publication referred to in that paragraph includes publication on an Internet site maintained by or on behalf of the Treasury, but subsection (2) applies to the specified document.
4: In this section, specified document
a: a fiscal strategy report ( see section 26I
b: a budget policy statement ( see section 26M
c: a statement on the long-term fiscal position ( see section 26N
d: an investment statement ( see section 26NA
da: a wellbeing report ( see section 26NB(1)
e: an economic and fiscal update ( see section 26O
f: a half-year economic and fiscal update ( see section 26S
g: a pre-election economic and fiscal update ( see section 26T Section 26Y replaced 4 September 2013 section 10 Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26Y(4)﻿(da) inserted 1 July 2020 section 10 Public Finance (Wellbeing) Amendment Act 2020
26Z: Power of Secretary to obtain information
1: The Secretary may request any department , any functional chief executive, section 27(3)﻿(a) to (f) sections 26L 26N 26NA 26O 26Q 26S 26T
2: A request under subsection (1)—
a: must be in writing; and
b: may state the date by which, and the manner in which, the information requested must be provided.
3: If a date is stated under subsection (2)﻿(b), that date must be reasonable having regard to the time limits prescribed by this Act for presenting to the House of Representatives, or for publishing, the report or update for which the information is being requested.
4: A department , a functional chief executive, or an Section 26Z inserted 25 January 2005 section 7 Public Finance Amendment Act 2004 Section 26Z(1) amended 7 August 2020 section 12(1) Public Finance Amendment Act 2020 Section 26Z(1) amended 4 September 2013 section 11 Public Finance (Fiscal Responsibility) Amendment Act 2013 Section 26Z(1) amended 18 July 2013 section 15(1) Public Finance Amendment Act 2013 Section 26Z(4) amended 7 August 2020 section 12(2) Public Finance Amendment Act 2020 Section 26Z(4) amended 18 July 2013 section 15(2) Public Finance Amendment Act 2013
3: Reporting by Government reporting entity
Part 3 heading substituted 25 January 2005 section 8 Public Finance Amendment Act 2004
27: Annual financial statements of Government
1: The Treasury must, as soon as practicable after the end of each financial year, prepare annual consolidated financial statements for the Government reporting entity for that financial year.
2: The annual financial statements of the Government must—
a: be prepared in accordance with generally accepted accounting practice; and
b: include the forecast financial statements prepared under section 26Q
c: include, in addition to those financial statements required by generally accepted accounting practice,—
i: a statement of borrowings that reflects the borrowing activities for that year, including budgeted figures for that year and comparative actual figures for the previous financial year:
ii: a statement of unappropriated expenses and capital expenditure and unauthorised capital injections (excluding any capital injection to an intelligence and security department):
iii: a statement of emergency expenses and capital expenditure incurred under section 25 section 25A
iv: a statement of trust money administered by departments and Offices of Parliament:
v: any additional information and explanations needed to fairly reflect the consolidated financial operations of the Government reporting entity for the financial year and its consolidated financial position at the end of that year.
3: The annual financial statements of the Government must include the Government reporting entity's interests in—
a: all Crown entities named or described in the Crown Entities Act 2004
ab: all Schedule 4 organisations:
b: all Schedule 4A companies:
ba: all mixed ownership model companies listed in Schedule 5
bb: all legal entities named or described in Schedule 6
c: all State enterprises named in Schedule 1
d: all Offices of Parliament:
e: the Reserve Bank of New Zealand:
f: any other entity whose financial statements must be consolidated into the financial statements of the Government reporting entity to comply with generally accepted accounting practice. 1989 No 44 s 27 Section 27 substituted 25 January 2005 section 9 Public Finance Amendment Act 2004 Section 27(2)﻿(c)﻿(ii) replaced 1 July 2014 section 78 Public Finance Amendment Act 2013 Section 27(2)﻿(c)﻿(iii) replaced 1 July 2014 section 78 Public Finance Amendment Act 2013 Section 27(3)﻿(ab) inserted 18 July 2013 section 16 Public Finance Amendment Act 2013 Section 27(3)﻿(b) replaced 18 July 2013 section 16 Public Finance Amendment Act 2013 Section 27(3)﻿(ba) inserted 30 June 2012 section 8 Public Finance (Mixed Ownership Model) Amendment Act 2012 Section 27(3)﻿(bb) inserted 28 July 2014 section 15(2) Te Urewera Act 2014
28: Half-year financial statements of the Crown
Section 28 repealed 12 December 2000 section 4 Public Finance Amendment Act 2000
29: Responsibility for
annual financial statements of Government
1: Every annual
2: The statement of responsibility shall comprise—
a: a statement of the responsibility of the Minister, and of any other Minister designated by the Prime Minister for the purpose of this paragraph, for the integrity of the financial statements; and
b: a statement of the Treasury's responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance that the transactions recorded are within statutory authority and properly record the use of all public financial resources by the Government reporting entity
c: a statement by the Secretary that the Treasury has prepared the financial statements in accordance with generally accepted accounting practice; and
d: a statement that, in the opinion of the Minister, and of any other Minister designated by the Prime Minister for the purpose of this paragraph, the financial statements fairly reflect the consolidated financial position and operations of the Government reporting entity for the reporting period. Section 29 substituted 1 July 1994 Public Finance Amendment Act 1994 Section 29 heading amended 25 January 2005 section 10(1) Public Finance Amendment Act 2004 Section 29(1) substituted 25 June 1997 section 2 Treasurer (Statutory References) Act 1997 Section 29(1) amended 12 December 2000 section 5 Public Finance Amendment Act 2000 Section 29(2)﻿(a) substituted 25 June 1997 section 2 Treasurer (Statutory References) Act 1997 Section 29(2)﻿(b) amended 25 January 2005 section 10(2) Public Finance Amendment Act 2004 Section 29(2)﻿(d) substituted 25 January 2005 section 10(3) Public Finance Amendment Act 2004
29A: Power of Secretary to obtain information
1: The Secretary may request any department , any functional chief executive, section 27(3)﻿(a) to (f)
a: the preparation of those financial statements and the monthly financial statements referred to in section 31A
b: the Minister or the Secretary to meet their obligations under section 29
2: A request under subsection (1)—
a: must be in writing; and
b: may state the date by which, and the manner in which, the information requested must be provided.
3: If a date is stated under subsection (2)﻿(b), that date must be reasonable having regard to the time limits prescribed by this Act for presenting to the House of Representatives, or for publishing, the annual or monthly financial statements of the Government.
4: A department , a functional chief executive, or an Section 29A substituted 25 January 2005 section 11 Public Finance Amendment Act 2004 Section 29A(1) amended 7 August 2020 section 13(1) Public Finance Amendment Act 2020 Section 29A(1) amended 18 July 2013 section 17(1) Public Finance Amendment Act 2013 Section 29A(4) amended 7 August 2020 section 13(2) Public Finance Amendment Act 2020 Section 29A(4) amended 18 July 2013 section 17(2) Public Finance Amendment Act 2013
29B: Auditor-General to be auditor of
Government reporting entity For the purposes of this Act, Government reporting entity section 4 Section 29B inserted 1 July 2001 section 53 Public Audit Act 2001 Section 29B heading amended 25 January 2005 section 12(1) Public Finance Amendment Act 2004 Section 29B amended 18 July 2013 section 18 Public Finance Amendment Act 2013 Section 29B amended 25 January 2005 section 12(2) Public Finance Amendment Act 2004
30: Audit report
1: The Treasury must forward the annual financial statements of the Government to the Auditor-General not later than the end of the second month following the end of the financial year to which those statements relate.
2: The Auditor-General must—
a: audit the annual financial statements of the Government; and
b: provide an audit report on those statements to the Treasury within 30 days after receiving them. Section 30 substituted 25 January 2005 section 13 Public Finance Amendment Act 2004
31: Annual financial statements must be presented to House of Representatives
and published
1: The Treasury must forward the annual financial statements of the Government and the audit report to the Minister.
2: The Minister must present the annual financial statements and the audit report, together with the statement of responsibility, to the House of Representatives—
a: not later than 10 working days after the Treasury receives the audit report; or
b: if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.
3: The Minister must arrange for the annual financial statements, the audit report, and the statement of responsibility to be published , on an Internet site maintained by or on behalf of the Treasury,
a: as soon as practicable after they have been presented to the House of Representatives; but
b: in any case, not later than 15 working days after the audit report is provided to the Treasury.
4: The Secretary must ensure that the annual financial statements, the audit report, and the statement of responsibility remain available on that Internet site for inspection by members of the public for at least 5 financial years after the financial year to which the annual financial statements relate. Section 31 substituted 25 January 2005 section 13 Public Finance Amendment Act 2004 Section 31 heading amended 18 July 2013 section 19(1) Public Finance Amendment Act 2013 Section 31(3) amended 18 July 2013 section 19(2) Public Finance Amendment Act 2013 Section 31(4) inserted 18 July 2013 section 19(3) Public Finance Amendment Act 2013
31A: Monthly financial statements of Government
1: The Treasury must, as soon as practicable after the end of each month (except the first 2 months and the last month) in each financial year, prepare consolidated financial statements for the Government reporting entity for the period of the financial year to the end of the month concerned.
2: The monthly financial statements must—
a: be prepared in accordance with generally accepted accounting practice; and
b: include, in addition to those financial statements required by generally accepted accounting practice,—
i: a statement of borrowings that reflects the borrowing activities for the period of the financial year to the end of the month concerned:
ii: any additional information and explanations needed to fairly reflect the consolidated financial operations of the Government reporting entity for the period of the financial year to the end of the month concerned and the consolidated financial position at the end of that month:
iii: in relation to the financial statements required by generally accepted accounting practice and the statement required by subparagraph (i),—
A: budgeted figures for the period of the financial year to the end of the month concerned:
B: comparative actual figures for the period of the previous financial year to the end of the corresponding month.
3: The monthly financial statements prepared under subsection (1) must be for the same Government reporting entity as the annual financial statements prepared under section 27
4: The Minister must arrange for the monthly financial statements to be published , on an Internet site maintained by or on behalf of the Treasury,
a: in the case of the financial statements to the end of November, the last day of January in the following year; and
b: in the case of the financial statements to the end of December, the last day of February in the following year; and
c: in any other case, 6 weeks after the end of the period to which they relate.
5: The Secretary must ensure that the monthly financial statements remain available on that Internet site for inspection by members of the public for at least 5 financial years after the financial year to which the monthly financial statements relate. 1989 No 44 ss 30–31A Section 31A substituted 25 January 2005 section 13 Public Finance Amendment Act 2004 Section 31A(4) amended 18 July 2013 section 20(1) Public Finance Amendment Act 2013 Section 31A(5) inserted 18 July 2013 section 20(2) Public Finance Amendment Act 2013
31B: Publication, inspection, and purchase of financial statements of
Government reporting entity Section 31B repealed 18 July 2013 section 21 Public Finance Amendment Act 2013
32: Monthly cash flow statements
Section 32 repealed 21 December 1992 section 22 Public Finance Amendment Act 1992
32A: Additional reports in relation to non-departmental appropriations
Section 32A repealed 1 July 2014 section 79 Public Finance Amendment Act 2013
4: Reporting by departments
Part 4 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Part 4 heading amended 7 August 2020 section 14 Public Finance Amendment Act 2020
33: Extended meaning of department for purpose of Part 4
In this Part, the following activities, bodies, and statutory offices must be taken to be part of a department:
a: any activities, other than activities performed by a natural person or separate legal entity, that are funded by way of appropriation administered by the department:
b: any bodies or statutory offices, other than natural persons or separate legal entities, that are funded by way of appropriation administered by the department. Section 33 replaced 18 July 2013 section 23 Public Finance Amendment Act 2013 Responsibilities of chief executives Heading replaced 18 July 2013 section 23 Public Finance Amendment Act 2013
34: Responsibilities of chief executives: financial management of departmental matters
1: The chief executive of a department—
a: is responsible to the responsible Minister for the financial management, financial performance, and financial sustainability of the department; and
b: must comply with any lawful financial actions required by the Minister or the responsible Minister.
2: The chief executive of a department that administers an appropriation—
a: is responsible to the appropriation Minister for what is achieved with departmental expenses and departmental capital expenditure under that appropriation; and
b: is responsible for advising the appropriation Minister on the efficiency and effectiveness of any departmental expenses or departmental capital expenditure under that appropriation.
3: However, if a department other than the appropriation administrator, or any functional chief executive, section 7C(2)﻿(c)﻿(i) or that functional chief executive,
4: Subsection (1)﻿(a) applies to a specified agency only to the extent that the specified agency manages assets or liabilities. Section 34 replaced 18 July 2013 section 23 Public Finance Amendment Act 2013 Section 34(3) amended 7 August 2020 section 15(1) Public Finance Amendment Act 2020 Section 34(3) amended 7 August 2020 section 15(2) Public Finance Amendment Act 2020 Section 34(4) inserted 7 August 2020 section 15(3) Public Finance Amendment Act 2020
34A: Forecast financial statements of departments
Section 34A repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
35: Responsibilities of chief executives: financial management of non-departmental matters
The chief executive of a department is responsible for—
a: the financial management of, and financial reporting on, appropriations for non-departmental expenses and non-departmental capital expenditure administered by the department; and
b: advising the appropriation Minister on the efficiency and effectiveness of expenditure under those appropriations; and
c: the financial management of, and financial reporting on, assets, liabilities, and revenue managed by the department on behalf of the Crown; and
d: advising the Minister responsible for those assets, liabilities, and revenue on their performance. Section 35 replaced 18 July 2013 section 23 Public Finance Amendment Act 2013
36: Responsibilities of chief executives: reporting
1: The chief executive of a department is responsible to the responsible Minister for ensuring that the department complies with the reporting requirements imposed on the department by or under this or any other Act.
2: Section 36 replaced 18 July 2013 section 23 Public Finance Amendment Act 2013 Section 36(2) repealed 7 August 2020 section 16 Public Finance Amendment Act 2020 Power of chief executives to obtain information Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
37: Power of
1: The chief executive of a department may sections 34 to 36
2: A request under subsection (1)—
a: must be in writing; and
b: may state the date by which, and the manner in which, the information requested must be provided.
3: If a date is stated under subsection (2)﻿(b), that date must be reasonable, having regard to the time limits prescribed by this Act or any other Act for the department
4: A specified person to whom the request is made must comply with the request.
5: Nothing in this section limits or affects the privilege against self-incrimination.
6: In this section, specified person section 33 Section 37 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 37 heading amended 18 July 2013 section 24(1) Public Finance Amendment Act 2013 Section 37(1) replaced 18 July 2013 section 24(2) Public Finance Amendment Act 2013 Section 37(1) amended 7 August 2020 section 17(1) Public Finance Amendment Act 2020 Section 37(1) amended 7 August 2020 section 17(2) Public Finance Amendment Act 2020 Section 37(3) amended 7 August 2020 section 17(3) Public Finance Amendment Act 2020 Reporting requirements: information on strategic intentions Heading replaced 1 July 2014 section 80 Public Finance Amendment Act 2013
38: Departments must provide information on strategic intentions
1: A department must provide to its responsible Minister—
a: information on the department’s strategic intentions that complies with this section and section 40
b: a statement of responsibility for the information, signed by the department’s chief executive.
2: The information—
a: must relate to the forthcoming financial year and at least the following 3 financial years; and
b: may also relate to the remainder of the current financial year.
3: The information must identify the period to which it relates.
4: The department must provide the information—
a: at least once in every 3-year period, unless the Minister has granted an extension of time under section 41
b: in the case of a new department, as soon as practicable, but not later than 6 months, after the date on which the department is established; and
c: if there has been a significant change in the nature or scope of the department's functions, as soon as practicable, but not later than 6 months, after that change.
5: Despite subsection (4)﻿(a), the department must comply with subsection (1) as soon as practicable if the information most recently provided by the department under this section—
a: becomes out of date because of a material change in the department's strategic intentions; or
b: is otherwise false or misleading in a material particular.
6: This section and sections 38A to 40 Part 2 see section 40(3) Section 38 replaced 1 July 2014 section 80 Public Finance Amendment Act 2013 Section 38(6) inserted 7 August 2020 section 18 Public Finance Amendment Act 2020
38A: Responsible Minister may require department to provide information on strategic intentions at any time
1: A department's responsible Minister may, if that Minister considers it necessary or desirable, require the department to provide new information on strategic intentions at any time.
2: Information on strategic intentions provided under this section must comply with sections 38 40
3: The responsible Minister may require the information to relate to the remainder of the current financial year in addition to the forthcoming financial year and at least the following 3 financial years. Section 38A inserted 1 July 2014 section 80 Public Finance Amendment Act 2013
39: Obligation to publish and present information on strategic intentions
1: A department must, as soon as practicable after providing information on its strategic intentions to its responsible Minister, publish the information on an Internet site maintained by or on behalf of the department.
2: However, the department must not publish the information—
a: in the period of 3 months before the Minister delivers the Budget for the first full financial year to which the information relates; or
b: if the Minister gives less than 3 months' notice of the day on which he or she will deliver that Budget, in the period commencing on the day on which the Minister gives that notice and ending when the Minister delivers the Budget.
3: In the case of information provided by an intelligence and security department, the responsible Minister must forward a copy of the information, as soon as practicable after receiving it, to the members of the Intelligence and Security Committee continued under section 192
4: In the case of information provided by any other department, the responsible Minister (or the Minister referred to in subsection (6), if applicable) must present the information to the House of Representatives—
a: in the same document as the department's annual report for the financial year before the first full financial year to which the information relates; or
b: in any other document, in which case the information must be presented as soon as practicable after the responsible Minister receives it and not later than the date on which the annual report described in paragraph (a) is presented.
5: However, the responsible Minister (or the Minister referred to in subsection (6), if applicable) must not present the information to the House of Representatives in the period described in subsection (2).
6: A Minister other than the responsible Minister may present the information to the House of Representatives if—
a: the information is presented in a document that includes other information; and
b: that other Minister is responsible for presenting that other information.
7: Information presented to the House of Representatives under subsection (4) must be accompanied by a statement signed by the responsible Minister stating,—
a: in the case of the Office of the Clerk of the House of Representatives or the Parliamentary Service, that the information is consistent with the policies and performance expectations of the responsible Minister; or
b: in the case of any other department, that the information is consistent with the policies and performance expectations of the Government. Section 39 replaced 1 July 2014 section 80 Public Finance Amendment Act 2013 Section 39(3) amended 28 September 2017 section 335 Intelligence and Security Act 2017
40: Requirements for information on strategic intentions
1: The information required under section 38 strategic intentions
2: The information must also, for the period to which it relates,—
a: explain the nature and scope of the department's functions and intended operations; and
b: identify any specified agencies for which the department is a host or relevant department (or, if the department is a specified agency, the department’s host or relevant departments)
c: explain how the department intends to manage its functions and operations to meet its strategic intentions; and
d: set out and explain any other matters that—
i: are reasonably necessary to achieve an understanding of the department's strategic intentions and capability; or
ii: may be specified by the Minister or the responsible Minister for the purposes of subparagraph (i).
3: If, for the period to which the information relates, a specified agency identified under subsection (2)﻿(b) is not required to provide information on its own strategic intentions ( see sections 38(6) 41(3A) Section 40 replaced 1 July 2014 section 80 Public Finance Amendment Act 2013 Section 40(2)﻿(b) amended 7 August 2020 section 19(1) Public Finance Amendment Act 2020 Section 40(3) inserted 7 August 2020 section 19(2) Public Finance Amendment Act 2020
41: Minister may grant extension of time for, or waive, requirement to provide information on strategic intentions
1: If a department is likely to have a significant change in the nature or scope of its functions, the Minister may grant the department an extension, of up to 1 year, of the period specified in section 38(4)﻿(a)
2: However, the Minister must not grant an extension unless the Minister is satisfied that the extension will enable the department to improve the quality of the information on strategic intentions that the department provides to its responsible Minister.
3: If a department is likely to be disestablished, the Minister may grant the department a waiver of the requirements in section 38
3A: The Minister may grant a specified agency a waiver of the requirements of section 38
3B: A waiver granted under subsection (3A) may apply for a period of up to 3 years.
4: As soon as practicable after granting an extension or a waiver, the Minister must present to the House of Representatives notice of the extension or waiver and the Minister's reasons for granting it. Section 41 replaced 1 July 2014 section 80 Public Finance Amendment Act 2013 Section 41(3A) inserted 7 August 2020 section 20 Public Finance Amendment Act 2020 Section 41(3B) inserted 7 August 2020 section 20 Public Finance Amendment Act 2020
41AA: Minister may grant extension of time requirement to provide information on strategic intentions: COVID-19
2020-10-01 Public Finance Act 1989 Section 41AA repealed 1 October 2020
41A: Special provisions in relation to annual financial statements of school Board of Trustees
Section 41A repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
41B: Special provisions in relation to annual financial statements of Boards under Reserves Act 1977
Section 41B repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
41C: Draft statement of intent
Section 41C repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
41D: Contents of statement of intent
Section 41D repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
41E: Completed statement of intent
Section 41E repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
41F: Laying of statement of intent before House of Representatives
Section 41F repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
41G: Power of responsible Minister to require Crown entity to modify statement of intent
Section 41G repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
41H: Power of Crown entity to modify statement of intent
Section 41H repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
41I: Annual report of Crown entities named or described in Schedule 6
Section 41I repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
42: Information on future operating intentions must include statement of responsibility
Section 42 repealed 1 July 2014 section 81 Public Finance Amendment Act 2013 Reporting requirements—Annual reports Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
43: Departments must prepare annual reports
1: As soon as practicable after the end of each financial year, each department must prepare a report on the operations of the department for that financial year
1A: The annual report is not required to cover operations—
a: of any specified agency for which the department is a host or relevant department; and
b: on which the specified agency is required to report under this Part.
2: Not later than 15 working days after the specified date, the department must provide the annual report and the audit report (if any)—
a: to its responsible Minister; and
b: if the department is a departmental agency, to the responsible Minister for the departmental agency’s host department.
3: This section does not limit any provision in any other Act that requires the chief executive of a department to provide an annual report, but the chief executive need not provide a separate report under each enactment. Section 43 replaced 18 July 2013 section 25 Public Finance Amendment Act 2013 Section 43(1) amended 7 August 2020 section 21(1) Public Finance Amendment Act 2020 Section 43(1A) inserted 7 August 2020 section 21(2) Public Finance Amendment Act 2020 Section 43(2) replaced 7 August 2020 section 21(3) Public Finance Amendment Act 2020
43A: Departmental agencies must prepare annual reports
Section 43A repealed 7 August 2020 section 22 Public Finance Amendment Act 2020
44: Obligation to present and publish annual reports
1: The responsible Minister of a department must present the annual report of the department, and any applicable audit report, to the House of Representatives.
2: The responsible Minister (or the Minister referred to in subsection (3)﻿(b), if applicable) must comply with subsection (1)—
a: not later than 15 working days after the specified date
b: if Parliament is not in session, as soon as possible after the commencement of the next session of Parliament.
3: A Minister other than the responsible Minister may present an annual report and audit report (if any) to the House of Representatives if—
a: those reports are presented in a document that includes another report or other information ( see
b: that other Minister is responsible for presenting that other report or information.
4: A department
a: as soon as practicable after the annual report has been presented to the House of Representatives, but, if subsection (2)﻿(b) applies, not later than 15 working days after the specified date
b: in accordance with the manner (if any)—
i: prescribed by regulations made under this Act; or
ii: specified in instructions issued by the Minister under section 80A
5: The annual report of a department
6: In this section,— audit report section 45D specified date
a: in the case of a department that receives an audit report under section 45D
b: in the case of any other department, the date that is 2 months after the end of the financial year. Section 44 replaced 18 July 2013 section 25 Public Finance Amendment Act 2013 Section 44(1) replaced 7 August 2020 section 23(1) Public Finance Amendment Act 2020 Section 44(2)﻿(a) amended 7 August 2020 section 23(2) Public Finance Amendment Act 2020 Section 44(4) amended 7 August 2020 section 23(3) Public Finance Amendment Act 2020 Section 44(4)﻿(a) amended 7 August 2020 section 23(4) Public Finance Amendment Act 2020 Section 44(5) amended 7 August 2020 section 23(5) Public Finance Amendment Act 2020 Section 44(6) audit date repealed 7 August 2020 section 23(6) Public Finance Amendment Act 2020 Section 44(7) specified date inserted 7 August 2020 section 23(7) Public Finance Amendment Act 2020
44A: Extension of time limits for 2019/20 financial year: COVID-19
2021-07-01 Public Finance Act 1989 Section 44A is repealed at the close of 30 June 2021 Section 44A repealed 30 June 2021
44A: Laying before House of Representatives of financial statements of Crown entities (other than school Boards of Trustees and Reserves Boards)
Section 44A repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
44B: Annual report in relation to schools' sector
Section 44B repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
44C: Annual financial statements of school Boards of Trustees
Section 44C repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
44D: Annual financial statements of Reserves Boards
Section 44D repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
45: Contents of annual report of department
1: The annual report of a department must provide the information that is necessary to enable an informed assessment to be made of the department's performance during the financial year, including how well the department is managing the resources it controls.
2: The annual report of a department must contain the following information in respect of the financial year to which it relates:
a: an assessment of the department's operations (excluding operations on which any specified agency for which the department is a host or relevant department is required to report under this Part
b: an assessment of the department's progress in relation to its strategic intentions; and
c: information about the department's management of its organisational health and capability; and
d: statements of expenses and capital expenditure for the department that comply with section 45A
e: annual financial statements for the department that comply with section 45B
f: a statement of responsibility that complies with section 45C
g: any other matters that relate to or affect the department's operations that the department is required, has undertaken, or wishes to report on in its annual report.
3: The annual report of a department must also contain, in respect of the financial year after the financial year to which the annual report relates, forecast financial statements for the department that comply with section 45BA
4: The annual report of a department must identify any specified agency for which the department is a host or relevant department
5: This section does not apply to a specified agency. ( See section 45AA Section 45 replaced 1 July 2014 section 82 Public Finance Amendment Act 2013 Section 45(2)﻿(a) amended 7 August 2020 section 24(1) Public Finance Amendment Act 2020 Section 45(4) amended 7 August 2020 section 24(2) Public Finance Amendment Act 2020 Section 45(5) replaced 7 August 2020 section 24(3) Public Finance Amendment Act 2020
45AA: Contents of annual report of specified agency
1: The annual report of a specified agency must provide the information that is necessary to enable an informed assessment to be made of the specified agency’s performance during the financial year, including how well the specified agency is managing the resources it controls.
2: The annual report of a specified agency must contain the following information in respect of the financial year to which it relates:
a: an assessment of the specified agency’s operations; and
b: an assessment of the specified agency’s progress in relation to its strategic intentions or, if the specified agency is not required to provide information on its own strategic intentions under section 38, in relation to,—
i: in the case of a departmental agency, any of the host department’s strategic intentions that are relevant to the departmental agency:
ii: in the case of an interdepartmental executive board or an interdepartmental venture, any of its relevant departments’ strategic intentions that are relevant to the specified agency; and
c: information about the specified agency’s management of its organisational health and capability; and
d: if the specified agency administered an appropriation in that financial year, statements of expenses and capital expenditure for the specified agency that comply with section 45A; and
e: if the specified agency managed assets or liabilities in that financial year (and does not have a waiver under section 45AB
f: if the specified agency has a waiver under section 45AB see section 45B(3)
g: a statement of responsibility that complies with section 45CA
h: any other matters that relate to or affect the operations of the specified agency that the specified agency is required, has undertaken, or wishes to report on in its annual report.
3: If the annual report must contain annual financial statements under subsection (2)﻿(e), the annual report must also contain, in respect of the financial year after the financial year to which the annual report relates, forecast financial statements for the specified agency that comply with section 45BA
4: The annual report must identify the specified agency’s host or relevant departments. Section 45AA replaced 7 August 2020 section 25 Public Finance Amendment Act 2020
45AB: Waiver from requirement to include financial statements in specified agency’s annual report
1: The Minister may grant a waiver from the requirements to include the financial statements described in section 45AA(2)﻿(e) and (3)
a: the functions and operations of the specified agency; and
b: the materiality of the assets, liabilities, expenditure, and revenue of the specified agency.
2: Before granting a waiver to a specified agency under this section, the Minister must consult—
a: the specified agency’s responsible Minister; and
b: if the specified agency is a departmental agency, the host department’s responsible Minister.
3: A waiver granted under this section may apply for a period of up to 3 years.
4: As soon as practicable after granting a waiver under this section, the Minister must present to the House of Representatives notice of the waiver and the Minister’s reasons for granting it. Section 45AB inserted 7 August 2020 section 25 Public Finance Amendment Act 2020
45A: Statements of expenses and capital expenditure
A department's annual report must include—
a: a statement of the budgeted and actual expenses and capital expenditure incurred against—
i: each appropriation administered by the department; and
ii: each category of expenses or non-departmental capital expenditure included in a multi-category appropriation administered by the department; and
b: for each appropriation administered by the department, details of the document in which the end-of-year performance information for the appropriation for the previous financial year (if required) is presented to the House of Representatives; and
c: a statement of expenses and capital expenditure incurred without appropriation or other authority, or in excess of an existing appropriation or other authority, in relation to the activities of, or appropriations administered by, the department, together with an explanation of the reasons for the unappropriated expenses and capital expenditure; and
d: a statement of the amount of any capital injection authorised, under an Appropriation Act, to be made to the department compared with the actual amount of any capital injection made to the department; and
e: a statement of any capital injection made to the department without authority, or in excess of an existing authority, under an Appropriation Act, together with an explanation of the reasons for the unauthorised capital injection. Section 45A replaced 1 July 2014 section 84 Public Finance Amendment Act 2013
45B: Annual financial statements
1: A department's annual financial statements must be prepared in accordance with generally accepted accounting practice.
2: In addition to the financial statements required by generally accepted accounting practice, a department's annual financial statements must include—
a: any other information or explanations needed to fairly reflect the department's financial operations and financial position; and
b: the forecast financial statements prepared at the start of the financial year, for comparison with the actual financial statements.
c:
d:
3: If a specified agency for which the department is a host or relevant department has a waiver under section 45AB Section 45B substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 45B(2)﻿(b) amended 1 July 2014 section 85(1) Public Finance Amendment Act 2013 Section 45B(2)﻿(c) repealed 1 July 2014 section 85(2) Public Finance Amendment Act 2013 Section 45B(2)﻿(d) repealed 1 July 2014 section 85(2) Public Finance Amendment Act 2013 Section 45B(3) inserted 7 August 2020 section 26 Public Finance Amendment Act 2020
45BA: Forecast financial statements
1: A department's forecast financial statements must be prepared in accordance with generally accepted accounting practice.
2: In addition to what is required by generally accepted accounting practice, a department's forecast financial statements must include—
a: a statement of all significant assumptions underlying the forecast financial statements; and
b: any other information or explanations needed to fairly reflect the forecast financial operations and financial position of the department. Section 45BA inserted 1 July 2014 section 86 Public Finance Amendment Act 2013
45C: Statement of responsibility
1: A statement of responsibility relating to the annual report of a department must include—
aaa: a statement that, in the opinion of the department’s chief executive, the annual report fairly reflects the operations, progress, and organisational health and capability of the department; and
a: a statement of the responsibility of the department's chief executive for the preparation of the financial statements, and statements of expenses and capital expenditure, and for the judgements expressed in them; and
b: a statement of the responsibility of the department's chief executive for having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and
c: a statement of the responsibility of the department's chief executive for ensuring that end-of-year performance information on each appropriation administered by the department is provided in accordance with sections 19A to 19C
d: a statement of the responsibility of the department's chief executive for the accuracy of any end-of-year performance information prepared by the department ( see section 19A
e: a statement that, in the opinion of the department's chief executive,—
i: the financial statements fairly reflect the financial position and operations of the department for the reporting period; and
ii: the forecast financial statements fairly reflect the forecast financial position and operations of the department for the financial year to which the forecast financial statements relate.
2:
3: The statement of responsibility must be signed and dated by the chief executive of the department.
4: This section does not apply to a specified agency. ( See section 45CA Section 45C replaced 1 July 2014 section 87 Public Finance Amendment Act 2013 Section 45C(1)﻿(aaa) inserted 7 August 2020 section 27(1) Public Finance Amendment Act 2020 Section 45C(2) repealed 7 August 2020 section 27(2) Public Finance Amendment Act 2020 Section 45C(3) replaced 7 August 2020 section 27(3) Public Finance Amendment Act 2020 Section 45C(4) inserted 7 August 2020 section 27(4) Public Finance Amendment Act 2020
45CA: Statement of responsibility for specified agencies
1: A statement of responsibility relating to the annual report of a specified agency must include—
a: a statement that, in the opinion of the specified agency’s chief executive, the annual report fairly reflects the operations, progress, and organisational health and capability of the specified agency; and
b: if the annual report contains statements of expenses and capital expenditure,—
i: a statement of the responsibility of the specified agency’s chief executive for the preparation of the statements of expenses and capital expenditure and for the judgements expressed in them; and
ii: a statement of the responsibility of the specified agency’s chief executive for ensuring that end-of-year performance information on each appropriation administered by the specified department is provided in accordance with sections 19A to 19C
c: if the annual report contains financial statements,—
i: a statement of the responsibility of the specified agency’s chief executive for the preparation of the financial statements and for the judgements expressed in them; and
ii: a statement that, in the opinion of the specified agency’s chief executive, the financial statements fairly reflect the financial position and operations of the specified agency for the reporting period; and
iii: a statement that, in the opinion of the specified agency’s chief executive, the forecast financial statements fairly reflect the forecast financial position and operations of the specified agency for the financial year to which the forecast financial statements relate; and
d: if the annual report contains statements of expenses and capital expenditure or financial statements (or both), a statement of the responsibility of the specified agency’s chief executive for having in place a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and
e: a statement of the responsibility of the specified agency’s chief executive for the accuracy of any end-of-year performance information prepared by the specified agency ( see section 19A
2: The statement of responsibility must be signed and dated by the chief executive of the specified agency. Section 45CA inserted 7 August 2020 section 28 Public Finance Amendment Act 2020
45D: Audit report
1: A department must forward to the Auditor-General—
a: its annual financial statements, statements of expenses and capital expenditure
b: if required to forward statements or any other information under paragraph (a),
1A: The department or functional chief executive most recently identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for a financial year must, within 2 months after the end of that financial year, forward to the Auditor-General—
a: the end-of-year performance information; and
b: the document in which that information will be presented to the House of Representatives and published (if not already provided).
2: The Auditor-General must—
a: audit the statements referred to in subsection (1)﻿(a) and the information referred to in subsections (1)﻿(a) and (1A)
b: provide an audit report on them to the department or functional chief executive Section 45D inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 45D(1)﻿(a) amended 1 July 2014 section 88(1) Public Finance Amendment Act 2013 Section 45D(1)﻿(b) amended 7 August 2020 section 29(1) Public Finance Amendment Act 2020 Section 45D(1A) replaced 7 August 2020 section 29(2) Public Finance Amendment Act 2020 Section 45D(2)﻿(a) amended 1 July 2014 section 88(3) Public Finance Amendment Act 2013 Section 45D(2)﻿(b) amended 7 August 2020 section 29(3) Public Finance Amendment Act 2020 Section 45D(2)﻿(b) amended 1 July 2014 section 88(4) Public Finance Amendment Act 2013
45DA: Extension of time limits for 2019/20 financial year reports and audits: COVID-19
2021-07-01 Public Finance Act 1989 Section 45DA is repealed at the close of 30 June 2021 Section 45DA repealed 30 June 2021 Miscellaneous Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
45E: Application of this Part to intelligence and security departments
1: This Part applies to an intelligence and security department, subject to subsection (2) and with the following (and any other necessary) modifications:
a: section 40
b:
c: section 221 sections 43 44
d:
2: Section 39
3: However, subsection (2) does not affect the obligations of the responsible Minister of an intelligence and security department under section 39(3)
4: Section 45A(d) and (e)
5: See also section 82A Section 45E inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 45E(1)﻿(a) replaced 28 September 2017 section 324(1) Intelligence and Security Act 2017 Section 45E(1)﻿(b) repealed 28 September 2017 section 324(2) Intelligence and Security Act 2017 Section 45E(1)﻿(c) replaced 28 September 2017 section 324(3) Intelligence and Security Act 2017 Section 45E(1)﻿(d) repealed 1 July 2014 section 89(4) Public Finance Amendment Act 2013 Section 45E(2) replaced 1 July 2014 section 89(5) Public Finance Amendment Act 2013 Section 45E(3) inserted 1 July 2014 section 89(5) Public Finance Amendment Act 2013 Section 45E(4) inserted 1 July 2014 section 89(5) Public Finance Amendment Act 2013 Section 45E(5) inserted 7 August 2020 section 30 Public Finance Amendment Act 2020
45F: Application of this Part to Offices of Parliament
1: This Part applies to an Office of Parliament, subject to subsection (2) and with the following (and any other necessary) modifications:
a: references to a department must be read as references to an Office of Parliament; and
b: references to the Auditor-General must be read as references to an auditor appointed by the House of Representatives to audit the financial statements, statements of expenses and capital expenditure, and end-of-year performance information of Offices of Parliament; and
c: section 40(2)﻿(d)
d: section 41
2: Section 39(7)﻿(b) Section 45F replaced 1 July 2014 section 90 Public Finance Amendment Act 2013
45G: This Part modified for purpose of applying Part to Offices of Parliament
Section 45G repealed 1 July 2014 section 91 Public Finance Amendment Act 2013
5: Special reporting requirements
Part 5 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
1: Special annual reporting requirements
Subpart 1 inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
45H: Application of subpart
1: This subpart applies to the following entities:
a: a department and any other entity that must provide an annual report that includes audited annual financial statements for presentation to the House of Representatives; and
b:
c: an entity that must provide audited annual financial statements (rather than an annual report) for presentation to the House of Representatives.
2: For the purposes of subsection (1)﻿(c)
3: In this section and sections 45I to 45K provide
a: forwarded to an entity's auditor; or
b: provided to a Minister; or
c: presented to the House of Representatives. Section 45H inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 45H(1) replaced 18 July 2013 section 28(1) Public Finance Amendment Act 2013 Section 45H(1)﻿(b) repealed 7 August 2020 section 31 Public Finance Amendment Act 2020 Section 45H(2) amended 18 July 2013 section 28(2) Public Finance Amendment Act 2013
45I: First annual report for newly established entities
1: The Minister may (at the Minister's discretion) exempt an entity that is established during the last 4 months of a financial year from the obligation to provide an annual report for that financial year.
2: Despite subsection (1), an entity that administers an appropriation must, after the end of that financial year, provide the following statements and report as if they were an annual report:
a: the statements and details required by section 45A
b: an audit report on those statements.
3: An entity that is exempted under subsection (1) must, after the end of the entity's first full financial year, provide an annual report that covers the period from the date on which the entity is established until the end of the entity's first full financial year.
4: To avoid doubt, the annual report referred to in subsection (3) must contain the information required to be included in the entity's annual report, except that the information must be in respect of the period referred to in that subsection.
5: Subsections (1) to (4) also apply to an entity that, during the last 4 months of a financial year, becomes subject to the requirement to provide an annual report for presentation to the House of Representatives. Section 45I replaced 18 July 2013 section 29 Public Finance Amendment Act 2013 Section 45I(2)﻿(a) replaced 1 July 2014 section 92 Public Finance Amendment Act 2013
45J: Final annual report for disestablished entities
1: An entity that is disestablished must provide a final report for the period—
a: commencing at the start of the financial year in which the entity is disestablished; and
b: ending on the date on which the entity is disestablished (the disestablishment date
2: The final report must be—
a: prepared as if it were an annual report; and
b: provided not later than 3 months after the disestablishment date.
3: If the Minister is satisfied that it is necessary or expedient to transfer some or all of the responsibility for providing a final report to another party,—
a: the Minister may approve the transfer of that responsibility; and
b: if the Minister does so, each party with responsibility for providing the final report must sign the statement of responsibility for the report in respect of the matters in the report for which the party is responsible. Section 45J replaced 18 July 2013 section 29 Public Finance Amendment Act 2013
45K: Final annual report for entities that cease to be subject to requirement to provide annual report
1: An entity that ceases to be subject to the requirement to provide an annual report for presentation to the House of Representatives must provide a final report for the period—
a: commencing at the start of the financial year in which the entity ceases to be subject to the requirement to provide an annual report; and
b: ending on the date on which the entity ceases to be subject to the requirement to provide an annual report (the specified date
2: The final report must be—
a: prepared as if it were an annual report; and
b: provided not later than 3 months after the specified date.
3: Despite subsection (2)﻿(b), the Minister may allow the entity to provide the final report later than 3 months after the specified date on any conditions that the Minister thinks fit.
4: If the Minister is satisfied that it is necessary or expedient to transfer some or all of the responsibility for providing a final report to another party,—
a: the Minister may approve the transfer of that responsibility; and
b: if the Minister does so, each party with responsibility for providing the final report must sign the statement of responsibility for the report in respect of the matters in the report for which the party is responsible. Section 45K replaced 18 July 2013 section 29 Public Finance Amendment Act 2013
45L: Minister may allow certain information to be included in another entity's annual report if operations transferred
1: This section applies if—
a: an entity is disestablished during the entity's financial year; and
b: that entity's operations are transferred to 1 or more entities; and
c: those operations are, at the time of the transfer, to be carried out on substantially the same terms by the entity to whom they are transferred.
2: The Minister may exempt the entity from whom operations are transferred from the requirement to include in its final report—
a: a statement of performance
b: a full report on its operations.
3: The Minister may grant an exemption under subsection (2)—
a: on the condition that—
i: the information referred to in subsection (2)﻿(a) and (b) is subsequently included, at the end of that financial year, in the annual report of the entity to whom the operations are transferred; and
ii: the entity to whom those operations are transferred has not been exempted under section 45I
b: only if the Minister is satisfied that the inclusion of that information in the other entity's annual report in accordance with paragraph (a)﻿(i) does not unreasonably compromise accountability for the performance of those operations during that financial year. Section 45L inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 45L(2)﻿(a) amended 1 July 2014 section 93 Public Finance Amendment Act 2013
1A: Special requirements for end-of-year performance information
Subpart 1A inserted 24 October 2019 section 115 Statutes Amendment Act 2019
45LA: End-of-year performance information for newly established performance reporters
1: The Minister may (at the Minister’s discretion) exempt a performance reporter from the obligation to provide end-of-year performance information under section 19A
a: was established during the last 4 months of a financial year; and
b: is identified in the supporting information for an Appropriation Act as providing end-of-year performance information on an appropriation for the financial year.
2: A performance reporter that is exempted under subsection (1) must, after the end of the performance reporter’s first full financial year, provide the end-of-year performance information required by section 19C
a: starting from the date on which the performance reporter is established; and
b: ending at the end of the performance reporter’s first full financial year.
3: In this section, performance reporter section 19A(1) Section 45LA inserted 24 October 2019 section 115 Statutes Amendment Act 2019
2: Application of Crown Entities Act 2004 to Schedule 4 organisations
Subpart 2 inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Subpart 2 heading replaced 18 July 2013 section 30 Public Finance Amendment Act 2013
45M: Application of Crown Entities Act 2004 to Schedule 4 organisations
1: The following sections of the Crown Entities Act 2004
a: sections 133 134
b: sections 154 to 156
c: section 158
d: if there is a tick in a column of the table in Schedule 4
e: if section 139 sections 138 139A 139B 141 144 to 149A
ea: if section 149C sections 149E to 149M
f: if section 150 sections 151 152 154 to 157A
1A: If section 150 section 150(1)﻿(b)
a: as if, in those provisions,—
i: every reference to a Crown entity were a reference to a Schedule 4 organisation; and
ii: every reference to the annual report were a reference to the annual financial statements, statement of responsibility, and audit report required under subsection (1)﻿(b); and
b: with all other necessary modifications.
2: The responsible Minister for a Schedule 4 organisation that is required, under subsection (1)﻿(d), to produce a statement of performance section 153
3: If a Schedule 4 organisation is established or regulated under an Act, the provisions applied by this section apply to the organisation subject to any express negation or modification of the provision in that Act. Section 45M replaced 18 July 2013 section 30 Public Finance Amendment Act 2013 Section 45M(1)﻿(e) amended 30 November 2022 section 103(1) Statutes Amendment Act 2022 Section 45M(1)﻿(e) amended 1 July 2014 section 94(1) Public Finance Amendment Act 2013 Section 45M(1)﻿(ea) inserted 30 November 2022 section 103(2) Statutes Amendment Act 2022 Section 45M(1)﻿(f) amended 1 July 2014 section 94(2) Public Finance Amendment Act 2013 Section 45M(1A) inserted 17 December 2016 section 85 Statutes Amendment Act 2016 Section 45M(2) amended 1 July 2014 section 94(3) Public Finance Amendment Act 2013
45N: Exemptions from certain sections of Crown Entities Act 2004 for Schedule 4 organisations
1: The Minister may exempt a Schedule 4 organisation, for 1 or more financial years or until further notice, from any of the requirements in sections 141 149E 151 152
2: If the Minister considers that it is necessary or desirable to grant an exemption under this section, the Minister may grant the exemption—
a: by notice in writing to the organisation; and
b: on any conditions that the Minister thinks fit. Section 45N replaced 18 July 2013 section 30 Public Finance Amendment Act 2013 Section 45N(1) amended 1 July 2014 section 95 Public Finance Amendment Act 2013
45O: Special provisions relating to Reserves Boards
1: Despite section 45M(1A) section 150(3) and (4) section 2
2: The Minister of Conservation must, in each year, send to each member of Parliament copies of the annual financial statements of a Reserves Board that manages a reserve in the member's electoral district.
3: The copies must be sent not later than 1 month after the date on which an audit report is provided by the Auditor-General on those financial statements.
4: The chief executive of the Department of Conservation must ensure that information about the financial performance of Reserves Boards is, in each year, included in the annual report of the Department of Conservation. Section 45O inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 45O(1) amended 24 October 2019 section 116 Statutes Amendment Act 2019
5AAA: Non-listed companies in which the Crown is majority or sole shareholder
Part 5AAA inserted 18 July 2013 section 31 Public Finance Amendment Act 2013
45OA: Application of Crown Entities Act 2004 to non-listed companies in which the Crown is majority or sole shareholder
1: The following provisions of the Crown Entities Act 2004
a: section 79
b: sections 81 82 Schedule 4A
c: sections 83 84
d: section 85 Crown Entities Act 2004 Companies Act 1993
e: if the company is 100% Crown-owned,—
i: section 88
ii: section 88A
f: sections 89 to 92 94 95
g: sections 96 97 99
h: section 100
i: section 102 Crown Entities Act 2004 Companies Act 1993
j: sections 107 to 111 113
k: section 114
l: section 118
m: sections 132 to 135
n: sections 136 to 157A
o: section 158
p: if there is a tick in a column of the table in Schedule 4A
2: In the case of a Schedule 4A company that is not 100% Crown-owned, subsection (1)﻿(n) does not prevent the shareholders from agreeing on a process for minority shareholders to be involved in the process of preparing, reviewing, or amending the statement of intent or statement of performance expectations referred to in sections 136 to 157A
3: For the purposes of subsections (1) and (2), a Schedule 4A company is 100% Crown-owned
4: For the purposes of section 107(2)﻿(a)
5: If a Schedule 4A company is established or regulated under an Act, the provisions applied by this section apply to the company subject to any express negation or modification of the provision in that Act. Section 45OA inserted 18 July 2013 section 31 Public Finance Amendment Act 2013 Section 45OA(1)﻿(n) amended 1 July 2014 section 96 Public Finance Amendment Act 2013 Section 45OA(2) amended 1 July 2014 section 96 Public Finance Amendment Act 2013
5A: Mixed ownership model companies
Part 5A inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012 Preliminary provisions Heading inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012
45P: Definitions of mixed ownership model company and other terms
1: In this Act, mixed ownership model company Schedule 5
2: In this Part,— 10% limit section 45S Crown excess securities FMA section 6 relevant interest sections 235 to 238 security section 7 voting right section 45T(1)﻿(c)
a: during a period in which a payment or distribution (or part of a payment or distribution) in respect of the security that confers the voting right is in arrears or some other default exists:
b: on a proposal that affects rights attached to the security that confers the voting right:
c: on a proposal to put the company into liquidation:
d: during the liquidation of the company:
e: in respect of a special, immaterial, or remote matter that is inconsequential to control of the company voting security Section 45P inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012 Section 45P(2) relevant interest replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 45P(2) security replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
45Q: Treaty of Waitangi (Te Tiriti o Waitangi)
1: Nothing in this Part shall permit the Crown to act in a manner that is inconsistent with the principles of the Treaty of Waitangi (Te Tiriti o Waitangi).
2: For the avoidance of doubt, subsection (1) does not apply to persons other than the Crown. 1986 No 124 s 9 Section 45Q inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012 51% Crown control Heading inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012
45R: Restriction on reduction of the Crown's holding below 51% control
1: No Minister who is a shareholder in a mixed ownership model company may take any of the following actions if it would result in the Crown having less than 51% control of the company:
a: sell or otherwise dispose of any shares in, or voting securities of, the company held in the Minister's name:
b: permit shares in, or voting securities of, the company to be allotted or issued to any person.
2: A mixed ownership model company must not issue, acquire, or redeem shares in, or voting securities of, the company if the issue, acquisition, or redemption would result in the Crown having less than 51% control of the company.
3: An issue, acquisition, or redemption of shares or voting securities is invalid and of no effect to the extent that it breaches subsection (2) (and, if more than 1 person has participated in an issue of shares or voting securities affected by this provision, the invalidity applies to the issue of shares or voting securities to those persons on a pro-rata basis).
4: The Crown has less than 51% control of a mixed ownership model company, for the purposes of this section, if the Crown holds less than—
a: 51% of any class of issued shares in the company; or
b: 51% of any class of voting securities of the company. Section 45R inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012 10% limit Heading inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012
45S: 10% limit on holdings by persons other than the Crown
1: No person (other than the Crown) may have a relevant interest in shares in, or voting securities of, a mixed ownership model company that comprise more than—
a: 10% of a class of issued shares in the company; or
b: 10% of a class of voting securities of the company.
2: In this Part, 10% limit
3: Subsection (1) is subject to section 45U Section 45S inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012
45T: Effect of exceeding 10% limit
1: Every person who contravenes section 45S
a: comply with any written notice that the person receives from the mixed ownership model company requiring that the person sell or otherwise dispose of interests in excess securities of the company, or take any other steps that are specified, for the purpose of ensuring that the 10% limit is not exceeded; and
b: without limiting paragraph (a), take the steps that are necessary to ensure that the person is no longer in contravention of that section at the end of 60 days after the date on which the person becomes aware, or ought to have become aware, of the contravention; and
c: while the person contravenes that section, not exercise or control the exercise of the voting rights attaching to the excess securities.
2: A person has no right to be paid a dividend or other distribution in respect of the excess securities (despite the Companies Act 1993
3: An exercise of a voting right in contravention of subsection (1)﻿(c) is of no effect and must be disregarded in counting the votes concerned.
4: However, subsections (1)﻿(c) and (3) do not invalidate a resolution if the votes concerned were counted by the company in good faith and without knowledge that the voting rights were exercised in contravention of subsection (1)﻿(c).
5: Nothing in section 45S 1988 No 234 s 36U Section 45T inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012
45U: Exemption from 10% limit for trustee corporations and nominee companies, etc
1: A person ( A section 45S
a: A complies with both of the following subparagraphs:
i: A exceeds the 10% limit merely because A holds securities on behalf of another person in the ordinary course of business as a trustee corporation or nominee company; and
ii: section 285(1)﻿(b)
b: A exceeds the 10% limit merely because A is attributed with (under section 237
2: A person to whom subsection (1)﻿(a) applies must—
a: keep under continuing review the transactions of all persons for whom A holds securities of the mixed ownership model company in A's name; and
b: inform the mixed ownership model company if any of those persons exceeds the 10% limit.
3: The exemption under this section does not apply to a person who is currently designated under section 45V 1988 No 234 ss 31–32A Section 45U inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012 Section 45U(1)﻿(a)﻿(ii) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 45U(1)﻿(b) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
45V: Power of FMA to remove exemption from 10% limit for trustee corporations, nominee companies, etc
1: The FMA may, by notice in the Gazette section 45U
a: the person has not complied with the condition in section 45U(2)
b: the exemption is being used for the purpose or purposes of circumventing, evading, or defeating the operation of the 10% limit taking into account the nature, substance, and economic effect of the interest or relationship or other facts (and not the mere form).
2: The FMA may, by notice in the Gazette
3: A notice under this section takes effect from the date stated in the notice (which must not be earlier than the date of the Gazette
4: Before designating a person as no longer exempt, the FMA must—
a: do everything reasonably possible on its part to advise the person of the proposed designation; and
b: give the person a reasonable opportunity to make submissions to the FMA on the proposal.
5: Subsection (4) does not apply to a designation if the FMA considers that it is desirable in the public interest for the exemption to be removed urgently.
6: Failure to comply with subsection (4) does not invalidate the designation. 1988 No 234 ss 48C 48D Section 45V inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012 Continuing application of certain provisions Heading inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012
45W: Certain provisions of State-Owned Enterprises Act 1986 and other enactments continue to apply
1: Sections 22 to 30(1)
a: the company were a State enterprise and a company named in Schedule 2
b: the Minister of Finance and the Minister responsible for that company were the shareholding Ministers for the company.
2: The provisions are—
a: the definition of State forest land in section 2(1) sections 24(1) 24B(4) to (6) 61(2)
b: section 11
c: sections 8A to 8H 1998 No 99 s 3(2), (4) Section 45W inserted 30 June 2012 section 9 Public Finance (Mixed Ownership Model) Amendment Act 2012
6: Borrowing, securities,
derivatives Part 6 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Part 6 heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
1: Borrowing
Subpart 1 heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Limits on borrowing by the Crown Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
46: The Crown must not borrow except under statute
Except as expressly authorised by any Act, it is not lawful for—
a: the Crown to borrow money; or
b: any person to lend money to the Crown. Section 46 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
47: Minister may borrow on behalf of the Crown if in public interest
1: The Minister, on behalf of the Crown, may borrow money if it appears to the Minister to be necessary or expedient in the public interest to do so.
2: The Minister may borrow money from any person, organisation, or government (either within or outside New Zealand).
3: Except as otherwise provided in any Act, all monies received as a result of money being borrowed under subsection (2) must be paid into—
a: a Crown Bank Account; or
b: if the Minister directs, a Departmental Bank Account. Section 47 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
48: Power to borrow must not be delegated
Despite anything in the Public Service Act 2020 section 47 Section 48 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 48 amended 7 August 2020 section 135 Public Service Act 2020
49: The Crown not liable for debts of Crown entities, etc
1: The Crown is not liable to contribute towards the payment of any debts or liabilities of—
a: a Crown entity , a Schedule 4 organisation, or a Schedule 4A company
b: a subsidiary of a Crown entity , a Schedule 4 organisation, or a Schedule 4A company
c: any entity in which a Crown entity has an interest; or
d: any other agency or body corporate that is controlled or wholly owned by the Crown.
2: However, this section does not apply in relation to—
a: any sum the Crown is liable to contribute under any Act; or
b: any sum the Crown is liable to contribute under any guarantee or indemnity given by the Minister under section 65ZD or the Crown Retail Deposit Guarantee Scheme Act 2009
c: any sum the Crown is liable to pay a creditor of a Crown entity, Crown subsidiary, other agency, or other body corporate, by virtue of a cause of action that the creditor has against the Crown; or
d: any sum the Crown is liable to pay to a creditor of the Reserve Bank of New Zealand. Section 49 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 49(1)﻿(a) amended 18 July 2013 section 32(1) Public Finance Amendment Act 2013 Section 49(1)﻿(b) amended 18 July 2013 section 32(2) Public Finance Amendment Act 2013 Section 49(2)﻿(b) amended 13 September 2009 section 10(2) Crown Retail Deposit Guarantee Scheme Act 2009 Appointment of borrowing agents Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
50: Minister may appoint agents for purpose of borrowing money
1: The Minister may appoint 2 or more persons to act on the Minister's behalf as joint borrowing agents for any of the following purposes:
a: borrowing money under this Act:
b: issuing securities for money borrowed under this Act:
c: any other purpose that is connected with the matters referred to in paragraphs (a) and (b).
2: An appointment under subsection (1)—
a: must be made by warrant signed by the Minister; and
b: may be made in respect of—
i: a specified officer or person; or
ii: officers or persons of a specified class; or
iii: the holder for the time being of a specified office or appointment; or
iv: the holders for the time being of a class of offices or appointments.
3: The number of persons acting as borrowing agents under this section must not be less than 2.
4: The Minister may, at any time, by instrument signed by the Minister,—
a: revoke or amend a warrant of appointment under this section; or
b: reappoint a person as a borrowing agent; or
c: appoint another person to replace a borrowing agent—
i: whose appointment is revoked; or
ii: who resigns or dies.
5: The Minister may give notice of an appointment, or revocation of appointment, of a borrowing agent under this section by any means of communication that he or she thinks fit. Section 50 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
51: Appointment of borrowing agents does not prevent exercise of power by Minister
The appointment by the Minister of a borrowing agent under section 50 Section 51 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
52: Borrowings must be taken to be lawful
1: Any money that appears to have been borrowed by the Crown under this Act must be taken to have been lawfully borrowed within the powers conferred by this Act, and the person from whom the money was borrowed may not question whether, or to what extent, authority has been given or occasion has arisen for the exercise of those powers.
2: The fact that a borrowing agent exercises any powers relating to money borrowed by the Crown is, in the absence of proof to the contrary, conclusive evidence of his or her authority to do so. Section 52 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
52A: Crown not to issue securities except under statute
Section 52A repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
53: Borrowing agents may delegate powers
1: A borrowing agent appointed under section 50
a: the consent of the Treasury; and
b: the requirement under section 50(3)
2: The delegation may—
a: be made by a borrowing agent acting jointly or severally with any other borrowing agent; and
b: be made to 1 or more persons; and
c: be subject to any conditions that the delegating agent, or agents, think fit. Section 53 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Terms and conditions of borrowing Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
54: Minister may determine terms and conditions of borrowing
For the purposes of section 47 Section 54 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
55: Charge on public revenues
All principal, interest, and other money that is payable in relation to money borrowed by the Crown is a charge on, and payable out of, the revenues of the Crown equally and rateably with all other general borrowing obligations of the Crown. Section 55 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
56: Power to borrow by issue of series of similar securities
The power conferred on the Minister under section 47
a: by way of the issue of public securities in 1 or more series (for example, Treasury bills or commercial paper); and
b: under 1 or more agreements between the Crown and 1 or more specified banks, financial institutions, or security dealers. Section 56 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
57: Power to vary borrowings of the Crown
1: The Minister may, at any time, vary the terms and conditions of borrowings of the Crown with the consent, if necessary, of the person from whom the money was borrowed.
2: At the request of the person from whom money was borrowed, the Minister may—
a: direct that the principal, or any interest payable in respect of the principal, be paid at a place in New Zealand or elsewhere that is other than the place otherwise provided; and
b: revoke the direction and give other directions. Section 57 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
58: Conversion of money borrowed by the Crown
1: The Minister may, at any time, convert any money borrowed by the Crown into any other money borrowed by the Crown.
2: In exercising a power under subsection (1), the Minister—
a: may do so on any terms and conditions that the Minister thinks fit; and
b: must, if necessary, do so with the consent of, as the case may be,—
i: the person from whom the money was borrowed; or
ii: the holder of the securities issued in respect of the money borrowed. Section 58 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
58A: Authority for the giving by the Crown of guarantees and indemnities
Section 58A repealed 25 January 2005 section 16 Public Finance Amendment Act 2004
59: Minister may appoint underwriters, managers, etc, for borrowings of the Crown
1: The Minister, on behalf of the Crown, may enter into an agreement with a bank, financial institution, or other person for the purpose of appointing the bank, institution, or person to act in any of the following capacities for, or in connection with, the borrowing of money under this Act:
a: an underwriter; or
b: a manager; or
c: a dealer; or
d: a trustee; or
e: a registrar; or
f: a paying, fiscal, or other agent.
2: The Minister may enter into the agreement on any terms and conditions that the Minister thinks fit. Section 59 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Payments relating to borrowings Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
60: Payment of principal and interest on money borrowed by the Crown
1: Subject to the provisions of this Act,—
a: all principal payable in respect of money borrowed by the Crown—
i: must be paid without further authority than this section; and
ii: must be paid from a Crown Bank Account or, if the Minister directs, a Departmental Bank Account; and
b: all borrowing expenses in respect of money borrowed by the Crown may be incurred without further appropriation, and must be paid without further authority, than this section.
2: Subsection (1) does not apply to money borrowed by the Crown under—
a: hire purchase agreements or agreements that are of the same or a substantially similar nature; and
b: finance lease arrangements or arrangements that are of the same or a substantially similar nature. Section 60 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
61: Expenses in respect of money borrowed by the Crown
Section 61 repealed 1 July 2014 section 97 Public Finance Amendment Act 2013
2: Securities
Subpart 2 heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Limits on the Crown issuing securities Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
62: The Crown must not issue securities except under statute
Except as expressly authorised by any Act, the Crown must not issue securities (whether for money borrowed or any other purpose). Section 62 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
63: Minister may issue securities for money borrowed by the Crown
1: This section applies if, under any Act, money is borrowed by the Crown for any purpose.
2: The Minister, on behalf of the Crown, may issue securities for that money in any manner and form that the Minister thinks fit. Section 63 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
64: Issue or variation of security taken to be lawful
1: A security that appears to have been issued or varied under this Act must be taken to have been lawfully issued or varied, as the case may be, within the powers conferred by this Act, and neither the lender nor the holder may question whether, or to what extent, authority has been given or occasion has arisen for the exercise of those powers.
2: However, subsection (1) applies only if the security has been issued or varied by—
a: the Minister; or
b: a person acting in accordance with a delegation under the Public Service Act 2020
c: borrowing agents appointed for the purpose under section 50
3: The fact that a borrowing agent exercises any powers relating to a security is, in the absence of proof to the contrary, conclusive evidence of his or her authority to do so. Section 64 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 64(2)﻿(b) amended 7 August 2020 section 135 Public Service Act 2020 Terms and conditions of securities Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65: Securities must be in name of Sovereign
1: This section applies if—
a: either of the following circumstances applies:
i: a security is taken for an advance of money by the Crown; or
ii: a security is given for money borrowed by the Crown; and
b: the Act that authorises the borrowing does not provide otherwise as to in whose name the security must be taken or given.
2: If this section applies,—
a: the security must be taken or given in the name of the Sovereign; and
b: the Minister may, on behalf of the Sovereign, do any of the following things in respect of or in connection with the security that could be done by the Sovereign:
i: exercise any powers, functions, and rights (including any power of disposal); and
ii: undertake and perform any liabilities. Section 65 substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
65A: Power to vary public securities
1: The Minister may, with the consent of the holder that may be necessary, at any time vary the terms and conditions of a public security.
2: At the request of the holder of a public security, the Minister may—
a: direct that the principal, or any interest payable in respect of the principal, be paid at a place in New Zealand or elsewhere that is other than the place otherwise provided; and
b: revoke the direction and give other directions. Section 65A substituted 25 January 2005 section 16 Public Finance Amendment Act 2004
65B: Issue of new public security on loss, damage, or destruction of public security
1: The Minister may direct the issue of a new public security to replace a public security that is lost, damaged, or destroyed if the Minister is satisfied, on receiving evidence, of the loss, damage, or destruction.
2: The Minister may give a direction under subsection (1) subject to any conditions that the Minister thinks fit. Section 65B inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65C: Execution of securities
1: A security that must be executed by the Sovereign for the purposes of this Act must be executed for and on behalf of the Sovereign by—
a: the Minister; or
b: a person acting in accordance with a delegation under clause 2 or 5 of Schedule 6
c: borrowing agents appointed for the purpose under section 50
2: For the purposes of this section, it is enough if a facsimile of the signature of a person who is required to execute a security under this section is reproduced on the security. Section 65C inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65C(1)﻿(b) amended 7 August 2020 section 135 Public Service Act 2020 Payments relating to securities Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65D: Payments under public securities
1: Subject to the provisions of this Act,—
a: all principal payable under a public security—
i: must be paid without further authority than this section; and
ii: must be paid from a Crown Bank Account; and
b: all borrowing expenses incurred under a public security may be incurred without further appropriation, and must be paid without further authority, than this section.
2: In this section and section 65ZH public security Section 65D inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65D(2) replaced 1 July 2014 section 98 Public Finance Amendment Act 2013
65E: Expenses in respect of securities
Section 65E repealed 1 July 2014 section 99 Public Finance Amendment Act 2013
3: Derivatives Subpart 3 inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Subpart 3 heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Limits on the Crown entering into derivatives Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
65F: The Crown must not enter into
derivatives Except as expressly authorised by any Act, the Crown must not enter (either directly or through an intermediary) into a derivative Section 65F inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65F heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 65F amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
65G: Minister may enter into
derivatives
1: The Minister, on behalf of the Crown, may enter into a derivative
2: The Minister may enter into a derivative Section 65G inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65G heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 65G(1) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 65G(2) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Payments relating to derivatives Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
65H: Payments relating to
derivatives
1: Any money that is required to be paid by the Crown under a derivative
a: must be paid without further authority than this section; and
b: must be paid from a Crown Bank Account or, if the Minister directs, a Departmental Bank Account.
2: Section 65H inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65H heading amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 65H(1) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 65H(2) repealed 1 July 2014 section 100 Public Finance Amendment Act 2013
4: Investment
Subpart 4 inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Investment of public money Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65I: Investment of public money
1: The Treasury may, without further appropriation than this section, invest any money held in a Crown Bank Account or a Departmental Bank Account—
a: on deposit with a bank (whether in New Zealand or elsewhere) approved by the Minister for the purpose; or
b: in public securities; or
c: in any other securities that the Minister may approve for the purpose.
2: The Treasury may—
a: invest the money for any period and on any terms and conditions that it thinks fit; and
b: sell, or convert into money, any of the securities.
3: The following must be paid into a Crown Bank Account or, if the Minister directs, a Departmental Bank Account
a: all interest received from the investment; and
b: all money received from—
i: the redemption or maturity of the investment; or
ii: the sale or conversion of the securities. Section 65I inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65I(3) amended 18 July 2013 section 33 Public Finance Amendment Act 2013
65J: Payment of expenses relating to investment
Section 65J repealed 1 July 2014 section 101 Public Finance Amendment Act 2013 Limits on lending by the Crown Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65K: The Crown must not lend money except under statute
Except as expressly authorised by any Act, the Crown must not lend money to a person or an organisation. Section 65K replaced 18 July 2013 section 34 Public Finance Amendment Act 2013
65L: Minister may lend money to persons or organisations if in public interest
1: The Minister, on behalf of the Crown, may lend money to a person or organisation (whether the person or organisation is in New Zealand or elsewhere) if it appears to the Minister to be necessary or expedient in the public interest to do so.
2: The Minister may lend the money under subsection (1) on any terms and conditions that the Minister thinks fit. Section 65L inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65M: Minister may lend money to foreign government
1: The Minister, on behalf of the Crown, may lend money to the Government of another country for the purpose of assisting—
a: the economic development of that country; or
b: the welfare of the inhabitants of that country.
2: The Minister may lend the money under subsection (1) on any terms and conditions that the Minister thinks fit. Section 65M inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65N: Authority to lend money includes authority to defer payments
Section 65N repealed 18 July 2013 section 35 Public Finance Amendment Act 2013
65O: Repayment of money lent by the Crown
The Minister may, in relation to any money lent by the Crown under section 65L section 65M
a: accept all money payable under the loan in any currency that the Minister thinks fit; and
b: agree at any time to the variation of any security issued in respect of the loan. Section 65O inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65P: Appropriation required for lending
Any lending under section 65L section 65M Section 65P inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65Q: Securities relating to lending must be in name of Sovereign
1: A security taken in respect of a loan under section 65L section 65M
2: The Minister may, on behalf of the Sovereign, do any of the following things in respect of, or in connection with, the security that could be done by the Sovereign:
a: exercise any powers, functions, and rights (including any power of disposal); and
b: undertake and perform any liabilities. Section 65Q inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
5: Banking
Subpart 5 inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Crown Bank Accounts Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65R: Crown Bank Accounts
1: The Treasury may open, maintain, and operate 1 or more Crown Bank Accounts at a bank or banks that the Minister may direct.
2: The Minister may specify the terms and conditions under which a Crown Bank Account is to be operated.
3: To avoid doubt, a reference to the Crown Bank Account in any other enactment must, unless the context otherwise requires, be read as a reference to a Crown Bank Account. Section 65R inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Departmental Bank Accounts Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65S: Departmental Bank Accounts
1: A department may open, maintain, and operate 1 or more Departmental Bank Accounts at a bank or banks that the Minister or the Treasury may direct.
2: However, an intelligence and security department may open, maintain, and operate 1 or more Departmental Bank Accounts at banks other than those to which a direction under subsection (1) relates if the responsible Minister for that department has given his or her written authority for the department to do so.
3: The responsible Minister may give the authority under subsection (2) only if he or she is satisfied that the authority is needed to protect the security interests of the intelligence and security department.
4: This section does not apply to a departmental agency that, under Part 2 Section 65S inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65S(4) inserted 7 August 2020 section 32 Public Finance Amendment Act 2020
65T: Directions relating to operation of Departmental Bank Accounts
1: The Minister or the Treasury may give directions on the terms and conditions under which a Departmental Bank Account must be operated.
2: However, in the case of an intelligence and security department, the power conferred by subsection (1) must be exercised only on a basis agreed between the Minister and the responsible Minister Section 65T inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65T(2) amended 28 September 2017 section 335 Intelligence and Security Act 2017 General Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65U: Payment into Bank Accounts
1: All public money is the property of the Crown and must be lodged in either a Crown Bank Account or a Departmental Bank Account.
2: A department that operates a Departmental Bank Account must, subject to any directions given under section 65T
a: any money that,—
i: in the case of an intelligence and security department, is disbursed to the department by the Treasury on a basis agreed between the chief executive of the department and the Treasury; or
ii: in the case of any other department, is disbursed to the department by the Treasury; and
b: all receipts relating to departmental revenue; and
c: all receipts resulting from the sale or disposal of assets by the department.
3: Any other public money that is not paid into a Departmental Bank Account must be paid into a Crown Bank Account.
4: Without limiting any provisions of this Act, any money that is paid into a Crown or Departmental Bank Account in error, or in excess of the amount required for the purpose for which it was paid, may be paid out of that Bank Account to the person who is entitled to the payment without further authority than this section. Section 65U inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65V: Requirements for payment of money out of Bank Accounts
1: Money must not be paid out of a Crown Bank Account or a Departmental Bank Account, except in accordance with an appropriation, or other authority, by or under an Act.
2: Despite subsection (1), money may be transferred—
a: between Crown Bank Accounts; or
b: between Crown Bank Accounts and Departmental Bank Accounts. Section 65V inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65W: Powers of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account
1: The Minister or the Treasury may request from any person or organisation any information in relation to a Crown Bank Account or a Departmental Bank Account.
2: A person or organisation to whom a request for information is made under subsection (1) must supply that information.
3: The Minister may, at any time, close or suspend the operation of—
a: a Crown Bank Account; or
b: after consultation with the responsible Minister, a Departmental Bank Account.
4: The Minister or the Treasury may—
a: issue directions about any public money held in a Crown Bank Account or a Departmental Bank Account; and
b: transfer money in a Crown Bank Account to another Crown Bank Account or a Departmental Bank Account; and
c: after consultation with the responsible Minister, direct a department that operates a Departmental Bank Account to transfer money in that account to a Crown Bank Account or another Departmental Bank Account.
5: In the case of an intelligence and security department, the powers conferred on the Minister or the Treasury by subsections (3) and (4) must be exercised on a basis agreed between the Minister and the responsible Minister Section 65W inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65W(5) amended 28 September 2017 section 335 Intelligence and Security Act 2017
65X: Statement of accounts must be sent to Treasury or Auditor-General
A bank at which public money is kept must send to the Treasury or the Auditor-General the statements of account relating to that money that the Treasury or the Auditor-General may require, as the case may be. Section 65X inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65Y: Treasury must report on all expenses and capital expenditure incurred with or without appropriation or other statutory authority
1: The Treasury must, within the time required under subsection (3), prepare and submit to the Auditor-General a report that sets out—
a: all actual expenses and capital expenditure incurred against an appropriation, or other authority, by or under an Act; and
b: all actual expenses and capital expenditure incurred in excess of, or without, an appropriation, or other authority, by or under an Act.
2: The report must also set out, for each appropriation, or other authority, by or under an Act, the balance between—
a: the amount of expenses and capital expenditure authorised to be incurred; and
b: the amount that was actually incurred.
3: The time required is 3 working days after the Treasury receives the information from departments that is required for the preparation of the monthly financial statements of the Government reporting entity under section 31A
4: To avoid doubt, this section does not limit the powers of the Auditor-General, under Part 4
5: In this section, a reference to authority includes a reference to an authority in advance of an appropriation.
6: In this section and sections 65Z 65ZA Section 65Y inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65Z: Auditor-General may direct Ministers to report to House of Representatives in cases involving unlawful expenses, etc
1: The Auditor-General may direct a Minister to report to the House of Representatives if the Auditor-General has reason to believe that expenses or capital expenditure for which that Minister is responsible have been incurred for a purpose that—
a: is not within the scope, amount, or period of any appropriation, or other authority, by or under an Act; or
b: is, for any other reason, unlawful.
2: The report must set out the following details:
a: the nature and extent of any alleged breach of the appropriation or other authority that the Auditor-General has reason to believe has occurred; and
b: the events that gave rise to the alleged breach; and
c: the remedial action taken or proposed to be taken to correct the breach and prevent its recurrence.
3: If the Minister is of the opinion that there has not been a breach, the report—
a: must set out the details specified in subsection (2)﻿(a) and (b); and
b: must also state—
i: that the Minister is of that opinion; and
ii: the Minister's reasons for that opinion.
4: The Minister responsible for the expenses or capital expenditure must—
a: comply with the direction within 20 working days after receiving it; or
b: if Parliament is not in session,—
i: publish the information required by subsection (2) or, as the case may be, subsection (3) in the Gazette
ii: present the information to the House as soon as possible after the commencement of the next session of Parliament; or
c: if the direction is made after the end of the financial year,—
i: comply with the direction by including the information required by subsection (2) or, as the case may be, subsection (3) in the report under section 26C
ii: comply with the direction within 20 working days after receiving it. Section 65Z inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65Z(1)﻿(a) replaced 18 July 2013 section 36 Public Finance Amendment Act 2013 Section 65Z(1)﻿(b) replaced 18 July 2013 section 36 Public Finance Amendment Act 2013
65ZA: Auditor-General may stop payments out of Bank Accounts
1: This section applies if the Auditor-General has reason to believe that any money to be paid out of a Crown Bank Account or a Departmental Bank Account may be applied for a purpose that—
a: is not within the scope, amount, or period of any appropriation, or other authority, by or under an Act; or
b: is, for any other reason, unlawful.
2: If this section applies, the Auditor-General may direct the Minister, the Treasury or, as the case may be, the department concerned to stop payments out of that Crown Bank Account or Departmental Bank Account. Section 65ZA inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65ZA(1)﻿(a) replaced 18 July 2013 section 37 Public Finance Amendment Act 2013 Section 65ZA(1)﻿(b) replaced 18 July 2013 section 37 Public Finance Amendment Act 2013
65ZB: Application of this subpart to Offices of Parliament
1: Despite section 65S
2: Despite section 65U
3: This subpart, if the context requires, applies to that Departmental Bank Account as if—
a: references to a department were references to an Office of Parliament; and
b: the money disbursed by the Treasury under section 65U(2)﻿(a)
c: the powers of the Minister or the Treasury under section 65W
d: the investment of money held in a Departmental Bank Account operated by an Office of Parliament, in accordance with section 65I Section 65ZB inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
6: Guarantees and indemnities
Subpart 6 inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Limits on giving by the Crown of guarantees and indemnities Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65ZC: Guarantee or indemnity by the Crown must not be given except under statute
Except as expressly authorised by any Act, it is not lawful for any person to give a guarantee or indemnity on behalf of or in the name of the Crown. Section 65ZC inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65ZD: Minister may give guarantee or indemnity if in public interest
1: The Minister, on behalf of the Crown, may give, in writing, a guarantee or indemnity to a person, organisation, or government if it appears to the Minister to be necessary or expedient in the public interest to do so.
2: The Minister may—
a: give the guarantee or indemnity on any terms and conditions that the Minister thinks fit; and
b: in the case of a guarantee, give the guarantee in respect of the performance or non-performance of any duties or obligations by a person
3: If the contingent liability of the Crown under a guarantee or an indemnity given by the Minister under subsection (1) exceeds $10 million, the Minister must, as soon as practicable after giving the guarantee or indemnity, present a statement to the House of Representatives that the guarantee or indemnity has been given.
4: The statement may contain any details about the guarantee or indemnity that the Minister considers appropriate. Section 65ZD inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65ZD(2)﻿(b) amended 18 July 2013 section 38(1) Public Finance Amendment Act 2013 Section 65ZD(3) replaced 18 July 2013 section 38(2) Public Finance Amendment Act 2013
65ZE: Departments may give guarantee or indemnity specified in regulations if in public interest
1: A department, on behalf of or in the name of the Crown, may give, in writing, a guarantee or indemnity of a type specified in regulations made under section 81
2: A department must give the guarantee or indemnity on the prescribed terms and conditions (if any).
3: If the contingent liability of the Crown under a guarantee or an indemnity given by a department under subsection (1) exceeds $10 million, the responsible Minister must, as soon as practicable after the guarantee or indemnity is given, present to the House of Representatives a statement that the guarantee or indemnity has been given.
4: The statement may contain any details about the guarantee or indemnity that the responsible Minister considers appropriate.
5: This section does not limit section 65ZD
6: This section does not apply to a departmental agency that, under Part 2 Section 65ZE inserted 25 January 2005 section 16 Public Finance Amendment Act 2004 Section 65ZE(3) replaced 18 July 2013 section 39 Public Finance Amendment Act 2013 Section 65ZE(6) inserted 7 August 2020 section 33 Public Finance Amendment Act 2020 Other provisions relating to guarantees and indemnities Heading inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65ZF: Recovery of money paid under guarantee
1: Any money paid by the Crown under a guarantee given under section 65ZD section 65ZE
2: A debt referred to in subsection (1)—
a: is recoverable in any court of competent jurisdiction:
b: may be paid over any period of time and on any terms and conditions that the Minister thinks fit:
c: may be written down by the Minister (except that the debt must not be written down below its market value other than in accordance with an appropriation, or other authority, by or under an Act).
3: This section does not limit or affect any other rights that the Crown may have as guarantor. Section 65ZF inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
65ZG: Payments in respect of guarantees or indemnities
Any money paid by the Crown under a guarantee or indemnity given under section 65ZD 1989 No 44 ss 18, 20, 23, 33(2), (3), 34, 44A(4), 44D, 46–48, 50–65, 70F Section 65ZG inserted 25 January 2005 section 16 Public Finance Amendment Act 2004
7: Permanent legislative authority for payment of certain expenses
Subpart 7 inserted 1 July 2014 section 102 Public Finance Amendment Act 2013
65ZH: Permanent legislative authority for payment of certain expenses
1: Any expenses incurred in connection with any of the following matters may be incurred without further appropriation, and must be paid without further authority, than this section: Expenses in respect of money borrowed by the Crown
a: negotiating the borrowing of money by the Crown:
b: undertaking, managing, servicing, converting, or repaying borrowing described in paragraph (a): Expenses in respect of securities
c: issuing a public security in respect of the Crown:
d: executing, redeeming, or varying a public security described in paragraph (c): Expenses relating to derivative transactions of the Crown
e: negotiating a derivative transaction of the Crown:
f: managing, servicing, or making payments under a derivative transaction described in paragraph (e): Expenses relating to investment
g: negotiating an investment referred to in section 65I
h: placing, managing, servicing, or converting an investment referred to in section 65I
2: In this section, expenses
a: includes—
i: duties, taxes, premiums, bonuses, fees, interests, and commissions; and
ii: any expenses incurred on personnel and equipment necessary in connection with the matters set out in subsection (1); but
b: does not include expenses incurred in connection with—
i: money borrowed by the Crown under a hire purchase agreement, a finance lease agreement, or any agreement that is of the same nature as or a substantially similar nature to either of those agreements; or
ii: a guarantee or an indemnity on behalf of or in the name of the Crown given under this Act or any other enactment. Section 65ZH inserted 1 July 2014 section 102 Public Finance Amendment Act 2013
7: Trust money
Part 7 heading substituted 25 January 2005 section 17 Public Finance Amendment Act 2004
66: Trust money
1: The following money shall be deemed to be trust money:
a: money that is deposited with the Crown pending the completion of a transaction or dispute and which may become repayable to the depositor or payable to the Crown or any other person:
b: all money that is paid into court for possible repayment to the payee or a third party, by virtue of any Act, rule, or authority whatsoever:
c: all money that is paid to the Crown in trust for any purpose:
d: money that belongs to or is due to any person and is collected by the Crown pursuant to any agreement between the Crown and that person:
e: unclaimed money that is due to or belongs to any person and is deposited with the Crown.
2: All trust money held by the Crown shall be accounted for separately from public money.
3: All trust money shall be the responsibility of the Treasury on behalf of the Crown.
4: The Treasury may appoint a department or any agent to manage some or all trust money on such terms and conditions as the Treasury from time to time determines.
5: The Crown or the agent appointed under subsection (4) may charge a fee for the management of trust money at such rate or rates as the Minister from time to time determines. Such fee shall be payable from trust money held. 1977 No 65 ss 42, 52
67: Establishment of bank accounts for trust money
1: There shall be established at any bank or banks approved by the Minister a bank account or accounts to be known as Trust Bank Accounts, to be operated and maintained by the Treasury or by a department or any agent appointed by the Treasury.
2: All trust money must, as soon as practicable after being identified as trust money, be lodged in a Trust Bank Account.
3: The Minister or the Treasury may give directions as to any terms and conditions under which a Trust Bank Account may be operated. Section 67(2) replaced 18 July 2013 section 40 Public Finance Amendment Act 2013
68: Investment of trust money
1: The Treasury or any agent of the Crown appointed by the Treasury for the purpose may from time to time invest any trust money held by the Crown for such periods and on such terms and conditions as it thinks fit—
a: on deposit with any bank in New Zealand or any bank outside New Zealand approved by the Minister for the purpose; or
b: in public securities; or
c: in such other securities as the Minister may from time to time approve for the purpose— and may from time to time sell or convert into money any such securities.
2: All proceeds of the investments and all money received from any sale or conversion of securities shall be deemed to be trust money.
3: No person shall have any right of action against the Crown or any agent of the Crown in respect of any investment or non-investment of any money to which this section relates.
69: Payment of interest on trust money
1: When any trust money held by the Crown becomes repayable to the depositor or payable to any other person entitled thereto, where it is practicable to do so there shall be added the amount of interest (if any) certified by the Treasury to have been earned thereon.
2: Where interest has been earned on any trust money but it is not practicable to add that interest to the trust money to be repaid to the depositor or to be paid to any other person entitled thereto, that interest shall be deemed to be public money and shall be transferred to the Crown Bank Account. Section 69(2) added 1 July 1994 Public Finance Amendment Act 1994
70: Unclaimed trust money
1: Any trust money that is unclaimed for a period of 1 year (or such longer period as the Minister directs) after having become repayable to the depositor or payable to any other person entitled thereto, shall, together with interest (if any) added thereto pursuant to section 69
2: If any person claims any trust money which has been deemed to be public money under this section, and establishes a claim to the satisfaction of the Treasury, the money shall be paid to that person out of the Crown Bank Account without further appropriation than this section.
7A: Security and intelligence departments
Part 7A repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70A: Interpretation
Section 70A repealed 25 January 2005 section 18 Public Finance Amendment Act 2004 Appropriations Heading repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70B: Nature of appropriation required
Section 70B repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70C: Estimates
Section 70C repealed 25 January 2005 section 18 Public Finance Amendment Act 2004 Banking and investment Heading repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70D: Departmental Bank Accounts
Section 70D repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70E: Payment into Bank Accounts
Section 70E repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70F: Power of Minister or Treasury in relation to Crown Bank Account and Departmental Bank Account
Section 70F repealed 25 January 2005 section 18 Public Finance Amendment Act 2004 Reporting Heading repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70G: Annual financial statements
Section 70G repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70H: Half-yearly financial statements
Section 70H repealed 21 December 1992 section 35 Public Finance Amendment Act 1992
70I: Tabling of financial statements
Section 70I repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70J: Information to be provided to Treasury
Section 70J repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
70K: Treasury instructions
Section 70K repealed 25 January 2005 section 18 Public Finance Amendment Act 2004
8: General provisions
Part 8 heading substituted 25 January 2005 section 19 Public Finance Amendment Act 2004
71AA: Delegation of Secretary's powers
1: The Secretary may delegate to the chief executive of a department (whether or not the department is listed in Part 1
a: conferred on the Secretary by this Act; or
b: conferred on the Minister by this Act and delegated to the Secretary by the Minister.
2: Without limiting subsection (1), the Secretary may delegate to the persons referred to in subsection (3) any power conferred on the Secretary by Part 6
3: The persons are—
a: the Reserve Bank of New Zealand; or
b: the Governor of the Reserve Bank of New Zealand; or
c:
4: The Secretary's power to delegate under this section is in addition to the Secretary's powers under clause 2(1)
5: Clauses 2(3) to (15) 3 clause 2(1) of Schedule 6 Section 71AA inserted 25 January 2005 section 20 Public Finance Amendment Act 2004 Section 71AA(1) amended 7 August 2020 section 135 Public Service Act 2020 Section 71AA(1)﻿(b) replaced 18 July 2013 section 41 Public Finance Amendment Act 2013 Section 71AA(3)﻿(c) repealed 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Section 71AA(4) amended 7 August 2020 section 135 Public Service Act 2020 Section 71AA(5) replaced 7 August 2020 section 135 Public Service Act 2020
71: Payments on behalf of governments and international organisations
1: The Minister may from time to time, without further appropriation than this section, pay out of the Crown Bank Account any money required for the purpose of making payments on behalf of the government of any other country, the United Nations, or any other international organisation.
2: Payments shall not be made under this section unless the Minister is satisfied that arrangements have been made for the government or other organisation concerned to repay any payments made on its behalf. 1977 No 65 s 101
72: Payments on behalf of local authorities
1: The Minister may from time to time, out of money appropriated by Parliament for the purpose, pay out of the Crown Bank Account any money required for the purpose of defraying any charges or expenditure incurred by or on behalf of any local authority.
2: All payments made under this section shall be repayable on such terms and conditions as the Minister thinks fit.
3: Notwithstanding subsection (2), any expense incurred or sum of money paid by the Crown on behalf of, or at the request of, a local authority, and any money owing to the Crown by a local authority, may be deducted by the Crown from any subsidies or other money accruing or payable by the Crown to the local authority. 1977 No 65 s 102
73: Payment of fines to local authorities and other organisations that conduct prosecutions
1: Subject to subsection (2) and any other provision of any Act, where a local authority, or other organisation (other than a department, an Office of Parliament, a Crown entity, a Schedule 4 organisation, or a Schedule 4A company
2: There shall be deducted from every amount payable to a local authority or other organisation under subsection (1) a sum equal to 10% thereof, and this sum shall be credited to the Crown Bank Account or a Departmental Bank Account provided that, where any money awarded by a court in respect of any loss or damage is recovered as a fine, no deduction under this subsection shall be made in respect of that money. 1977 No 65 s 103 Section 73(1) amended 18 July 2013 section 42 Public Finance Amendment Act 2013 Section 73(1) amended 25 January 2005 section 21 Public Finance Amendment Act 2004 Section 73(2) amended 21 December 1992 section 37(2) Public Finance Amendment Act 1992
74: Unclaimed money
1: Unless otherwise provided in any Act, at the end of each financial year any money in any bank account of a department, Office of Parliament, Crown entity, Schedule 4 organisation, or Schedule 4A company
2: Notwithstanding section 66
3: When money is deposited with the Treasury under subsection (1), the department, Office of Parliament, Crown entity, organisation, or company
4: No person shall have any right of action against the Treasury or the Crown in respect of any investment or non-investment of any money to which this section relates.
5: If any person claims any money deposited with the Treasury under subsection (1) and establishes a claim to the satisfaction of the Treasury, the money shall be paid to the person out of the Crown Bank Account without further appropriation than this section.
6: Where any money paid to any claimant under this section, is afterwards claimed by any other person, neither the Treasury nor the Crown shall be under any liability to such other person by reason of having paid money to the first claimant. 1977 No 65 s 108 Section 74(1) amended 18 July 2013 section 43(1) Public Finance Amendment Act 2013 Section 74(1) amended 25 January 2005 section 22 Public Finance Amendment Act 2004 Section 74(3) amended 18 July 2013 section 43(2) Public Finance Amendment Act 2013
75: Minister may exercise powers relating to
bona vacantia
1: Where any property or right belongs to the Sovereign bona vacantia the Sovereign the Sovereign
2: If the Minister or any department , on or department
3: Nothing in subsection (1) or (2) limits
4: If the Minister or department
5: If the Minister or department
6: Subsections (4) and (5) do not affect the validity of anything done before those subsections come into force. 1977 No 65 s 108 1980 No 7 s 7 Section 75(1) amended 25 January 2005 section 23 Public Finance Amendment Act 2004 Section 75(2) replaced 18 July 2013 section 44(1) Public Finance Amendment Act 2013 Section 75(2) amended 7 August 2020 section 34(1) Public Finance Amendment Act 2020 Section 75(2) amended 7 August 2020 section 34(2) Public Finance Amendment Act 2020 Section 75(3) amended 18 July 2013 section 44(2) Public Finance Amendment Act 2013 Section 75(4) inserted 18 July 2013 section 44(3) Public Finance Amendment Act 2013 Section 75(4) amended 7 August 2020 section 34(3) Public Finance Amendment Act 2020 Section 75(5) inserted 18 July 2013 section 44(3) Public Finance Amendment Act 2013 Section 75(5) amended 7 August 2020 section 34(3) Public Finance Amendment Act 2020 Section 75(6) inserted 18 July 2013 section 44(3) Public Finance Amendment Act 2013
76: Offences
1: Every person commits an offence against this Act who, without reasonable excuse,—
a: refuses or fails to produce any information that is in that person's possession or under that person's control in relation to the financial management, financial performance, or banking activities of a department or in relation to the management or control of any Crown asset or liability when required to do so pursuant to this Act; or
b: resists or obstructs any person acting in the discharge of that person's functions or duties or in the exercise of that person's powers under this Act.
2: Every person commits an offence against this Act who,
a: without reasonable excuse, refuses or neglects to pay any public money into a Crown Bank Account or a Departmental Bank Account; or
b: without reasonable excuse, refuses or neglects to pay any trust money into a Trust Bank Account; or
c: makes any statement or declaration, or gives any information or certificate, required by or pursuant to this Act, knowing it to be false or misleading; or
d: does any act for the purpose of procuring for that person or for any other person or organisation—
i: the improper payment of any public money or trust money; or
ii: the improper use of any public financial resource. 1977 No 65 s 109 Section 76(2) amended 18 July 2013 section 45 Public Finance Amendment Act 2013
77: Penalties for offences
1: Every person who commits an offence against subsection (1) of section 76
a: in the case of an individual, to a fine not exceeding $2,000:
b: in the case of a person or organisation other than an individual, to a fine not exceeding $5,000.
2: Every person who commits an offence against subsection (2) of section 76
a: in the case of an individual, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding $5,000:
b: in the case of a person or organisation other than an individual, to a fine not exceeding $15,000. 1977 No 65 s 110 Section 77(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 77(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
78: Time for commencing proceedings
Despite anything to the contrary in section 25 Section 78 replaced 1 July 2013 section 413 Criminal Procedure Act 2011
79: Information to be provided to Treasury
1: The Treasury may from time to time request information from a department in relation to the financial management, financial performance, or banking activities of the department or in relation to the management or control of any Crown asset or liability.
2: Any request for information made in accordance with subsection (1) shall be complied with by the department.
3: Despite subsections (1) and (2), the Treasury may request information under this section about an intelligence and security department—
a: only if the Secretary and the chief executive of that department agree and only to the extent of that agreement; or
b: if there is no agreement under paragraph (a), only if the Minister and the responsible Minister jointly decide that the Treasury may make the request. 1977 No 65 s 111 Section 79(3) added 25 January 2005 section 24 Public Finance Amendment Act 2004
80: Treasury instructions
1: The Treasury may issue instructions to departments for all or any of the purposes specified in section 81(1)﻿(a), (ab), (b), (bc), (bd), and (c) to (e)
1A: Subsection (1) is subject to the provisions of this Act and of any regulations made under this Act.
2: A chief executive of a department
3: Despite subsections (1) and (2), the Treasury may issue instructions under this section to an intelligence and security department—
a: only if the Secretary and the chief executive of that department agree and only to the extent of that agreement; or
b: if there is no agreement under paragraph (a), only if the Minister and the responsible Minister jointly decide that the Treasury may issue the instructions.
4: The Treasury must publish the instructions on the Internet as soon as practicable after issuing them. Section 80 substituted 25 January 2005 section 25 Public Finance Amendment Act 2004 Section 80(1) replaced 7 August 2020 section 35(1) Public Finance Amendment Act 2020 Section 80(1A) inserted 7 August 2020 section 35(1) Public Finance Amendment Act 2020 Section 80(2) amended 7 August 2020 section 35(2) Public Finance Amendment Act 2020
80A: Minister of Finance instructions
1: Subject to the provisions of this Act and of any regulations made under this Act, the Minister may issue instructions under subsection (3) for all or any of the purposes referred to in that subsection, rather than recommend the making of regulations under section 81
2: In deciding whether to issue instructions under subsection (3) rather than recommend the making of regulations under section 81
a: the importance of the instructions, including whether the instructions have a material effect on the rights and interests of individuals:
b: the subject matter of the instructions, including whether the instructions contain detailed or technical matters rather than matters of general principle:
c: the application of the instructions, including whether the instructions apply principally to a particular group rather than to the general public.
3: The Minister may issue instructions,—
a: for all or any of the purposes specified in section 81(1)﻿(ac) or (ba)
i: a department; or
ia:
ii: an Office of Parliament; or
iii: a Schedule 4 organisation; or
iv: a Schedule 4A company; and
b: for all or any of the purposes specified in section 81(1)﻿(a), (b), or (c) section 27(3)﻿(a) to (f)
4: A chief executive of a department, section 27(3)
5: Any instructions issued under this section for the purposes of section 81(1)﻿(ba)
6: Instructions under this section are secondary legislation ( see Part 3
7: The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must: LA19 ss 73 74(1)﻿(a) cl 14 •	notify it in the Gazette •	publish it on the Internet Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 80A inserted 25 January 2005 section 25 Public Finance Amendment Act 2004 Section 80A(3)﻿(a)﻿(ia) repealed 7 August 2020 section 36(1) Public Finance Amendment Act 2020 Section 80A(3)﻿(a)﻿(iii) replaced 18 July 2013 section 47(2) Public Finance Amendment Act 2013 Section 80A(3)﻿(a)﻿(iv) inserted 18 July 2013 section 47(2) Public Finance Amendment Act 2013 Section 80A(4) replaced 18 July 2013 section 47(3) Public Finance Amendment Act 2013 Section 80A(4) amended 7 August 2020 section 36(2) Public Finance Amendment Act 2020 Section 80A(4) amended 7 August 2020 section 36(3) Public Finance Amendment Act 2020 Section 80A(6) replaced 28 October 2021 section 3 Secondary Legislation Act 2021 Section 80A(7) repealed 28 October 2021 section 3 Secondary Legislation Act 2021
81: Regulations, Orders in Council, and notices
1: The Governor-General may from time to time, by Order in Council made on the recommendation of the Minister
a: requiring information to be supplied to the Treasury by departments section 27(3)﻿(a) to (f)
ab: prescribing the processes and data standards to be used when supplying the information required under paragraph (a):
ac: prescribing minimum requirements concerning the publication of information that departments,
b: prescribing particular accounting policies and financial statement representations that Ministers, departments, Offices of Parliament, Crown entities, Schedule 4 organisations, or Schedule 4A companies
ba: prescribing the non-financial reporting standards that Ministers, departments,
bb: specifying the types of guarantees or indemnities that may be given by departments on behalf of or in the name of the Crown under section 65ZE
bc: prescribing the terms and conditions that must apply to those guarantees or indemnities referred to in paragraph (bb):
bd: prescribing any other matters relating to those guarantees or indemnities referred to in paragraph (bb):
c: regulating the collection, receipt, custody, issue, expenditure, control, and management of public money or trust money:
d: regulating the accounting and financial management and control procedures relating to contracts of the Crown:
e: regulating the custody and control by the Crown of public securities and securities representing the investment of public money; and providing for the appointment of custodians of such securities and prescribing their functions, duties, and powers:
f: regulating the issue, registration, transfer, control, and redemption of Government stock or any other public securities issued within New Zealand:
g: regulating the employment of Crown Solicitors (not being members of the public service
h: prescribing the fees, allowances, and expenses payable by the Crown to witnesses and interpreters in judicial proceedings; and empowering any specified person or persons to increase the fees in special cases:
i: prescribing offences in respect of the contravention of, or non-compliance with, any regulations made under this Act or any requirement or direction made or given pursuant to any such regulations; and prescribing penalties not exceeding $2,000 in respect of any offences prescribed under this paragraph:
j: providing for such other matters as are contemplated by or necessary for giving full effect to this Act and for the due administration thereof.
2: Any Order in Council made under paragraph (g) of subsection (1), and any provision of any such order, may, to the extent that that order or that provision prescribes the fees, allowances, and expenses payable to Crown Solicitors, be expressed to apply in respect of work done by Crown Solicitors on and after any date, whether before or after the date of the making of the order or the date of the commencement of this Act.
3: Without limiting any other provision of this Act, the Minister may give notice in the Gazette
4: Any regulations made under this section must be consistent, in the opinion of the Minister, with generally accepted accounting practice, and any reporting standard imposed by or under any other Act, to the extent that those matters are relevant to those regulations.
5: Regulations under this section are secondary legislation ( see Part 3 1977 No 65 s 113(1), (1A), (3) 1986 No 67 s 9 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 81(1) amended 25 January 2005 section 26(1) Public Finance Amendment Act 2004 Section 81(1)﻿(a) amended 7 August 2020 section 37(1) Public Finance Amendment Act 2020 Section 81(1)﻿(a) amended 25 January 2005 section 26(2) Public Finance Amendment Act 2004 Section 81(1)﻿(ab) inserted 25 January 2005 section 26(3) Public Finance Amendment Act 2004 Section 81(1)﻿(ac) replaced 18 July 2013 section 48(2) Public Finance Amendment Act 2013 Section 81(1)﻿(ac) amended 7 August 2020 section 37(2) Public Finance Amendment Act 2020 Section 81(1)﻿(b) substituted 25 January 2005 section 26(4) Public Finance Amendment Act 2004 Section 81(1)﻿(b) amended 18 July 2013 section 48(3) Public Finance Amendment Act 2013 Section 81(1)﻿(ba) replaced 18 July 2013 section 48(4) Public Finance Amendment Act 2013 Section 81(1)﻿(ba) amended 7 August 2020 section 37(2) Public Finance Amendment Act 2020 Section 81(1)﻿(bb) inserted 25 January 2005 section 26(4) Public Finance Amendment Act 2004 Section 81(1)﻿(bc) inserted 25 January 2005 section 26(4) Public Finance Amendment Act 2004 Section 81(1)﻿(bd) inserted 25 January 2005 section 26(4) Public Finance Amendment Act 2004 Section 81(1)﻿(g) amended 7 August 2020 section 135 Public Service Act 2020 Section 81(4) added 25 January 2005 section 26(5) Public Finance Amendment Act 2004 Section 81(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
82: Consultation and approval requirements for regulations or instructions relating to reporting standards
1: This section applies to—
a: any regulations that are proposed to be made under section 81(1)﻿(ba) departments, section 80A
b: any regulations that are proposed to be made under section 81(1)﻿(ac) or (ba) section 80A
2: The Minister must prepare and submit to the Speaker a draft of any regulations or instructions to which this section applies.
3: The Speaker must present the draft regulations or instructions to the House of Representatives as soon as is reasonably practicable.
4: In the case of regulations or instructions to which subsection (1)﻿(a) applies, the Minister, after considering any comments of the Speaker or any committee of the House of Representatives that considered the draft regulations or instructions, may amend them as the Minister thinks fit.
5: In the case of regulations or instructions to which subsection (1)﻿(b) applies, the Minister may recommend that the regulations be made or may issue the instructions only after they have been approved by resolution of the House of Representatives.
6: 2001 No 10 s 36 Section 82 substituted 25 January 2005 section 27 Public Finance Amendment Act 2004 Section 82(1)﻿(a) amended 7 August 2020 section 38 Public Finance Amendment Act 2020 Section 82(1)﻿(a) amended 18 July 2013 section 49 Public Finance Amendment Act 2013 Section 82(6) repealed 28 October 2021 section 3 Secondary Legislation Act 2021
82A: Certain specified agencies with intelligence and security aspect treated as intelligence and security departments
1: This section applies to a specified agency if,—
a: in the case of a departmental agency, the specified agency’s host department is an intelligence and security department:
b: in the case of an interdepartmental executive board or an interdepartmental venture,—
i: all of the specified agency’s relevant departments are intelligence and security departments; or
ii: 1 or more, but not all, of the specified agency’s relevant departments are intelligence and security departments and the Minister has granted the specified agency a waiver under subsection (4).
2: Part 4
a: as if the specified agency were an intelligence and security department; and
b: as modified by section 45E(1)﻿(a) and (2) to (4)
c: as if section 221(1), (2)﻿(i), and (4) to (7) sections 43 44
3: The rest of this Act applies, with any necessary modifications, in relation to the specified agency as if the specified agency were an intelligence and security department.
4: The Minister may grant a waiver from the requirements that would otherwise apply under this Act to a specified agency described in subsection (1)﻿(b)﻿(ii) if the Minister considers that, having regard to the functions and operations of the specified agency, the waiver is necessary to protect New Zealand’s national security.
5: As soon as practicable after granting a waiver under this section, the Minister must present to the House of Representatives notice of the waiver and the Minister’s reasons for granting it. Section 82A inserted 7 August 2020 section 39 Public Finance Amendment Act 2020
83: Abolition of certain accounts
Section 83 repealed 18 July 2013 section 50 Public Finance Amendment Act 2013
84: Registration of public securities, local authority stock, and other stock
Notwithstanding the repeal by section 87
a:
b: Part 6A of the Reserve Bank of New Zealand Act 1964:
c: section 4 of the Reserve Bank of New Zealand Amendment Act 1977 and so much of Schedule 3 as relates to section 109(2A) of the Local Authorities Loans Act 1951:
d: section 4(5) of the Public Finance Amendment Act 1980,— those provisions shall continue to apply to—
e: all public securities registered before the date on which regulations made under section 81(1)﻿(f)
f:
g: all other stock. Section 84(a) repealed 27 July 1996 section 15(1) Local Government Amendment Act (No 3) 1996 Section 84(f) repealed 27 July 1996 section 15(1) Local Government Amendment Act (No 3) 1996
85: Government stock in United Kingdom
Section 85 repealed 18 July 2013 section 51 Public Finance Amendment Act 2013
86: Consequential amendments
Section 86 repealed 18 July 2013 section 51 Public Finance Amendment Act 2013
87: Repeals
Section 87 repealed 18 July 2013 section 51 Public Finance Amendment Act 2013
88: Application, savings, and transitional provisions relating to amendments to Act
1: The application, savings, and transitional provisions set out in Schedule 1
2: The application, savings, and transitional provisions relating to the amendment Acts specified in the first column of the following table are set out in the Parts of Schedule 1 The following table is small in size and has 2 columns. Column 1 is headed Amendment Act. Column 2 is headed Schedule 1 Part. Amendment Act Schedule 1 Part Public Finance Amendment Act 2013 Part 1 Public Finance (Fiscal Responsibility) Amendment Act 2013 Part 2 Section 88 replaced 18 July 2013 section 52 Public Finance Amendment Act 2013 Section 88(2) inserted 4 September 2013 section 12 Public Finance (Fiscal Responsibility) Amendment Act 2013