Review of Commonwealth Government Business Enterprises ...

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Corporate Plans
3.3 Corporate plans are to be prepared in accordance with the appropriate section of the CAC
Act and Corporations Act (refer summary at paragraph 3.1).
a. To supplement the information required to be provided in GBE corporate plans under
the CAC Act and the Corporations Act, the plans should include details of the following
matters (so far as they are applicable):
i. details of the broad mandate of the GBE, (including a summary of core activities
that are in line with existing core competencies, and proposed non-core activities
that require new competencies to be developed), together with a summary of
those functions that may require its retention as a government owned GBE;
ii. an estimate of the current commercial value of the Commonwealth’s investment in
the GBE and how that value was assessed, with the expectation that a discounted
cash fow methodology would be used as the valuation basis, unless otherwise
agreed by the Finance Minister;
iii. fnancial projections, to be prepared in the same format as the progress and
fnal report and consisting of proft and loss statement, balance sheet and cash
fow statement;
iv. capital expenditure projections linked to the physical assets of the GBE (where
material), its business objectives and acquisition, maintenance and disposal plans;
v. cash fow (liquidity) projections;
vi. a summary of the GBE’s risk management policies, material risks and strategies for
managing these risks. This is in addition to the requirements set out in paragraph
4.15 (refer guidance in Part 4 Financial Governance); and
vii. proposed borrowing(s) (refer guidance in Part 4 Financial Governance).
b. If the GBE has a subsidiary (or subsidiaries), the reporting is to cover both the GBE and
its subsidiaries.
c. GBEs are to incorporate targets for the following minimum key performance indicators
(KPIs) across a fve-year period (two prior and three forward years) in corporate plans,
and if appropriate results are to be reported against in progress reports as outlined in
the following table:
Exposure Draft