Review of Commonwealth Government Business Enterprises ...

GBE Borrowings
4.21 Ongoing oversight of GBE borrowings is an integral part of the corporate plan and
progress report processes outlined in paragraphs 2.1 to 2.10 above.
4.22 The Government will consider supporting borrowing proposals beyond the first
forward year for GBEs that have a proven track record of good performance and
accountability, and which provide appropriate justification (including expected rates
of return) in corporate plans to support proposed capital expenditure programs.
4.23 GBEs will usually borrow from financial markets. Borrowing from the
Commonwealth Budget requires the specific approval of the Finance Minister.
4.24 Wholly owned GBEs should generally avoid issuing debt securities that would bring
them within the definition of "disclosing entity" under the Corporations Law.
(a) This will minimise the potential for conflict between the proposed CAC Act
and section 1001A(1) of the Corporations Law.
Part 5 – Other Governance Matters
Workplace Relations
5.1 Subject to these governance arrangements, GBEs are free to manage relations with
their employees consistent with the Workplace Relations Act 1996 and in
accordance with the following:
(a) the Board of each GBE is required to consult with the Remuneration Tribunal
in determining remuneration packages for Chief Executive Officers;
(b) the Remuneration Tribunal determines the remuneration for the directors that
is compatible with their responsibilities, and having regard to, amongst other
things, rates paid by the private sector; and
(c) any matters specified from time-to-time by the Minister for Industrial
Relations, after consultation with the Prime Minister and the Finance Minister.
Superannuation
5.2 Superannuation arrangements for GBEs are covered by the Prescribed Requirements
regime determined under the Superannuation Benefits (Supervisory Mechanisms)
Act 1990. Under the Prescribed Requirements regime GBEs (except for those
employing staff under the Public Service Act 1922) are able to establish and operate
superannuation arrangements of their choice. Accountability to the Government is
satisfied by GBEs submitting detailed annual reports to the Government on their
superannuation arrangements.