Fiscal Responsibility Act 2012 (NSW)

Fiscal Responsibility Act 2012 No 58

An Act relating to fiscal responsibility in the management of government finances; to repeal the Fiscal Responsibility Act 2005; and to make consequential amendments to the Public Finance and Audit Act 1983.

Part 1 Preliminary

1 Name of Act This Act is the Fiscal Responsibility Act 2012.

2 Commencement This Act commences on the date of assent to this Act.

3 Object of Act (1) The object of this Act is to maintain the AAA credit rating of the State of New South Wales. (2) The purpose of that object is— (a) to limit the cost of government borrowing, and (b) to enable access to the broadest possible investor base for government borrowing, and (c) to maintain business and consumer confidence, thereby sustaining economic activity and employment in the State.

4 Application of Act This Act applies to and in respect of the State budget.

5 Definitions (1) In this Act— budget papers means the budget papers of the Government tabled in Parliament in connection with the annual Appropriation Bills. long-term average general government revenue growth of the State means the average annual growth rate of general government revenue over a sufficiently long previous period to smooth out the influence of transient factors. The regulations may prescribe the relevant rate. long-term fiscal gap means the change in the primary balance of the general government sector as a share of gross state product, calculated on the basis of no policy changes— (a) from 2009–10 to 2050–51, or (b) after a re-assessment under section 8—over a similar sufficiently long period to assess fiscal pressures associated with the ageing population and other long-term trends. The regulations may prescribe the relevant period. For the purpose of this definition, the primary balance is revenue less expenditure, including net capital expenditure but not including interest transactions. the State's unfunded superannuation liability means the total net employer liabilities of the State under defined benefit superannuation schemes for the total state sector. (2) Expressions used in this Act (to the extent they are not otherwise defined in this Act) have the same meaning as similar expressions used by the Australian Bureau of Statistics in the preparation of government finance statistics. (3) Notes included in this Act do not form part of this Act.