Professional Update January - March 2025
2025
Contents

Hot Topics

Note:

To open hyperlinks in new tab, right click on link and select 'Open link in a new tab' or 'Open link in new window'. For best user experience, please use Google Chrome to view.

NSW Treasury pronouncements

Financial Reporting Code and Mandates Policy and Guidelines for FY 2024-25

NSW Treasury has released TPG 25-02 ‘Mandates of options and major policy decisions under Australian Accounting Standards’ (Mandates TPG) and TPG 25-03 ‘Financial reporting code for NSW General Government Sector Agencies’ (the Code).

The Mandates TPG is issued as a mandatory policy and applies to GSF agencies required to prepare general purpose financial statements under section 7.6 of the Government Sector Finance Act 2018 (GSF Act). The Mandates TPG does not apply to universities and their controlled entities. It supersedes and withdraws the previous version TPG 24-06.

The Mandates TPG updates the mandates of accounting policy options and major policy decisions under Australian Accounting Standards to be applied in entity financial statements for financial years ending on or after 30 June 2025.

The key changes to the Mandates TPG are to update the list of Standards issued but not yet effective and confirm that Accounting Standards generally cannot be early adopted.

The Code sets out the financial reporting framework for NSW GGS entities with illustrative guidance on the form and content of the financial statements, including the note disclosures for financial years ending on or after 30 June 2025. Special purpose staff agencies should refer to Treasury Circular TC15-07. The Code supersedes the previous version TPG 24-05.

The Code It is not mandatory in its entirety and NSW GGS entities can tailor the model to their individual circumstances. However, financial reports must be prepared in accordance with Australian Accounting Standards and other Treasury requirements, including the Mandates TPG.

The Code outlines that agencies should consider emerging financial reporting issues when preparing financial reports including the impact of climate risks. In preparing financial statements, agencies should consider climate related matters, if the effect of climate risk is material. This includes disclosures on key assumptions and judgements in preparing the financial statements. This requirement is separate to disclosures that are required by TPG 24-33 ‘Reporting framework for first year climate-related financial disclosures’. Under TPG24-33, entities in Phase 1 are required to prepare a separate report on climate-related financial disclosures, commencing in 2024-25.

Mandatory Early Close guidance for FY 2024-25

NSW Treasury issued TPG25-01: Agency Direction for 2024-25 Mandatory Early Close, which outlines the objectives and procedures that agencies need to carry out for the 2024-25 financial year. This TPG supersedes the previous TPG24-03: Agency Direction for the 2023-24 Mandatory Early Close. Key changes include:

  • introduction of a Hard Close pilot for participating agencies
  • refinement of mandatory early close procedures reflecting feedback from the sector last year
  • incorporating the requirements from TD19-02: Mandatory Early Close as at 31 March each year into this TPG as the TD will be revoked shortly.

The table below outlines the returns the agencies are required to submit to the Treasury:

 

Early Close returnDate
Confirmation of Commonwealth Funding Agreement – Revenue Assessment Submissions (Appendix F)Monday, 28 April 2025
Pro Forma Financial Statements as at 31 March 2025 and accompanying notesMonday, 28 April 2025
Early Close Procedure Checklist (Appendix B)Monday, 28 April 2025
Reconciliation between Period 9 Prime Data Submission and Agency Financial Statements (Form 05a of the Prime Supplementary Return)Monday, 28 April 2025
Information on Emerging Issues (Preliminary Submission) (Appendix C)Monday, 28 April 2025
Comprehensive Valuation Reports and Fair Value AssessmentsMonday, 28 April 2025
Audit Office feedback on Early Close audit via submission of Audit Office Observations of Early Close ProceduresWednesday, 4 June 2025
Information on Emerging Issues (Final Submission) (Appendix C)Wednesday, 18 June 2025

Agencies participating in the Hard Close pilot will perform the majority of the early close procedures as mandated by this TPG in line with the agreed hard close balance date. Although these agencies will perform early close procedures as at the hard close balance date, some early close procedures have been mandated to be prepared as at 31 March to facilitate the preparation of the State’s Consolidated Financial Statements. The table below outlines the returns required to submit to the Treasury:

 

Early Close / Hard Close returnDate
Period end Prime return – General Government Entities (being the Hard Close month as agreed with the Audit Office)Working day 8
Period end Prime return – Public Non-Financial Corporations and Public Financial Corporations including State Owned Corporations (being the Hard Close month as agreed with the Audit Office)Working day 10
Confirmation of Commonwealth Funding Return and Revenue Assessment Submissions (Appendix F)Monday, 28 April 2025
Information on Emerging Issues (Preliminary Submission) (Appendix C)Monday, 28 April 2025
Pro Forma Financial Statements as at Hard Close balance date and accompanying notesWithin one day of the Agency providing the Proforma Financial Statements to the Audit Office
Early Close Procedure Checklist (Appendix B)Within one day of the Agency providing the Proforma Financial Statements to the Audit Office
Reconciliation between Period end Prime Data Submission and Agency Financial Statements (Form 05a of the Prime Supplementary Return)Within one day of the Agency providing the Proforma Financial Statements to the Audit Office
Comprehensive Valuation Reports and Fair Value AssessmentsAs agreed with the Audit Office
Audit Office feedback on Hard Close audit (if provided to agency by the Audit Office)Within one day of receipt of letter/report from the Audit Office
Information on Emerging Issues (Final Submission) (Appendix C)Wednesday, 18 June 2025

 

Office of Local Government pronouncements

Council Circular 25-01 ‘Cybersecurity guidelines for Councils’

The Office of Local Government issued Circular 25-01 ‘Cyber Security Guidelines for Councils’, a set of updated guidelines that outlines cyber security standards and controls recommended by Cyber Security NSW for NSW local government. The circular replaces Circular 22-39 ‘Release of Cyber Security Guidelines for NSW Local Government’

The updated guidelines:

  • will help councils assess their cyber security maturity
  • outline cyber security standards and controls recommended by Cyber Security NSW for local government, and
  • should form the basis of their cybersecurity policy.

Compliance with the guidelines is not mandatory however, it is strongly recommended.

Council Circular 25-04 ‘Draft Quarterly Budget Review Statement Guidelines

The Office of Local Government (OLG) released Circular 25-04 ‘Draft Quarterly Budget Review Statement Guidelines’. The draft guidelines outline the purpose and value of effective financial reporting and aims to ensure clear, relevant and consistent financial information is provided to their governing body and communities.

OLG plans to finalise and release the guidelines by mid-2025 and requests feedback by 18 April 2025. The proposed framework is mandatory for all NSW councils and expects councils to report their 1st quarter quarterly budget review statement under the new guidelines by no later than 30 November 2025.

 

Audit Office of New South Wales

Bola Oyetunji, Auditor-General for New South Wales – presentations, attendances and interviews

OrganisationEventInvolvementDate
Legislative AssemblyPublic Accounts Committee Deliberative meetingAttendance

24 March 2025

NSW Audit OfficeAudit Service Provider / Audit Office forumAttendance

20 March 2025

Transport for NSWGroup Finance Financial Accounting & Control Branch meetingSpeech

19 March 2025

Hunter WaterAudit and Risk Committee (ARC) meetingDiscussion

18 March 2025

Australian Council of Auditors GeneralAudit analytics committee meetingAttendance

13 March 2025

Penrith City CouncilAudit, Risk and Improvement Committee (ARIC) meetingDiscussion

12 March 2025

Riverina Eastern Regional Organisation of Councils BoardBoard meetingSpeech

6 March 2025

Portfolio Committee 1Budget estimatesWitness

26 February 2025

NSW TreasurySector ARC Leadership forumSpeech

21 February 2025

Sydney WaterARC meetingDiscussion

18 February 2025

Public Accountability and Works CommitteeInquiryWitness

14 February 2025

Clarence Valley CouncilARIC meetingDiscussion

13 February 2025

NSW Legislative CouncilParliamentary Democracy at Work – Book launchAttendance

12 February 2025


 

Auditor-General’s reports to Parliament

ReportType of reportReport Date
Local government 2024Financial audit

31 March 2025

Regulation of the land titles registryPerformance audit 

12 February 2025

Bus contracts in metropolitan SydneyPerformance audit

29 January 2025


 

Accounting Update

Australian update – Australian Accounting Standards Board (AASB)

Topics discussed included:  

AASB Meeting Highlights – 6-7 March 2025

  • IASB ED Provisions – targeted improvements
  • contracts referencing nature-dependent electricity – potential Tier 2 amendments
  • classification and measurement of financial instruments – Tier 2 amendments
  • not-for-profit private sector financial reporting framework (Tier 3) and conceptual framework: NFP
    amendments
  • ITC 51 post-implementation review for not-for-profit topics: Related party disclosures and basis of
    preparation of special purpose financial statements
  • climate-related financial disclosure
  • other business – financial reporting.

Latest news, accounting standards and work-in-progress documents from the AASB included:

NameType of documentPublication date
AASB Dialogue Series: Cash Flow Statements – Is Cash still king?Discussion

26 March 2025

Proposed Tier 2 disclosures for nature-dependent electricity
contracts
Exposure Draft

20 March 2025

AASB 2025-2 ‘Amendments to Australian Accounting Standards –
Classification and Measurement of Financial Instruments: Tier 2
Disclosures
Standard

14 March 2025

Research Proposal Request – Scope broadened to include audit
and assurance
Research

18 February 2025

Reporting roundupNewsletter

17 February 2025

AASB 2025-1 ‘Amendments to Australian Accounting Standards –
Contracts Referencing Nature-dependent Electricity’
Standard

12 February 2025

Understanding the impact of accounting standards on the Cost of
Capital
Research report

7 February 2025

Simplifying Australia’s Not-For-Profit Financial Reporting FrameworkConsultation

10 January 2025


 

International Update – International Accounting Standards Board (IASB)

Topics discussed included: 

IASB Meeting Highlights – 18-20 March 2025

  • post-implementation review of IFRS 16
  • cash flows and related matters
  • subsidiaries without public accountability: disclosures – catch-up
  • business combinations – disclosures, goodwill and impairment
  • rate-regulated activities
  • intangible assets

IASB Meeting Highlights – 18-19 February 2025

  • financial instruments with characteristics of equity
  • intangible assets
  • subsidiaries without public accountability: disclosures – catch-up
  • amortised cost measurement
  • business combinations – disclosures, goodwill and impairment

IASB Meeting Highlights – 28-29 January 2025

  • provisions – target improvements
  • maintenance and consistent application – IFRIC update
  • business combinations – disclosures, goodwill and impairment
  • subsidiaries without public accountability: disclosures – catch-up
  • board work plan update – prioritisation framework
  • pollutant pricing mechanisms
  • board work plan update – hyperinflation

 

International Update – International Financial Reporting Standards (IFRS) Foundation

Latest news from the IFRS Foundation included:

NamePublication date
Roadmap Development Tool launched to support jurisdictions plan and design adoption
roadmaps for ISSB Standards

26 March 2025

Join us for a webinar on how companies are integrating IFRS Sustainability Disclosure
Standards into products and services

26 March 2025

New resources available on the third edition of the IFRS for SMEs Accounting Standard

26 March 2025

Join us for the eighth episode of the ‘Perspectives on sustainability disclosure’ webinar
series

6 March 2025

IASB issues major update to the IFRS for SMEs Accounting Standards

27 February 2025

December 2024 Sustainability consultative committee meeting summary now available

20 February 2025

Q1 2025 ISSB Implementation Insights Podcast now available

11 February 2025

Join us for the seventh episode of the ‘Perspectives on sustainability disclosure’ webinar
series

5 February 2025

New guide to help companies using the climate-first transition relief in ISSB Standard

30 January 2025

Webcast: Understand and apply the new amendments for nature-dependent electricity
contracts
28 January 2025
New webcast: Proportionality mechanisms in IFRS sustainability disclosure standards23 January 2025
Webcast: Exposure draft provisions – target improvements22 January 2025
Listen to our new podcast on the IFRS for SMEs Accounting Standard9 January 2025
January 2025 IFRS for SMEs Accounting Standard Update now available9 January 2025

 

International Update – International Public Sector Accounting Standards Board (IPSASB)

Topics discussed included: 

IPSASB Meeting Highlights – 18-21 March 2025

  • Public interest committee governance update
  • strengthening linkages between IPSAS and Government Finance Statistics Manual
  • making materiality judgements – limited scope
  • IPSAS 33 – limited scope update
  • post-implementation reviews
  • overview of IASB’s provisions – targeted improvements projects
  • measurement – application phase
  • presentation of financial statements
  • task force meetings
  • sustainability: climate-related disclosures

Recent news from the IPSASB included:

NamePublication date
IPSASB issues amendments related to specific IFRIC interpretations

28 January 2025


IPSASB has recently issued:

NamePublication date
Amendments to IPSAS Standards: specific IFRIC Interpretations

28 January 2025


 

Auditing Update

Australian Update – Auditing and Assurance Standards Board (AUASB)

Topics discussed included: 

AUASB Meeting Highlights – 11 March 2025

  • narrow scope amendments on experts
  • audit evidence and risk response project
  • revised ISA 240 Fraud
  • update on ISRE 2410 and ISAE 3410
  • update on adoption of part 5 of IESBA Code

AUASB Meeting Highlights – 19 February 2025

  • ASIC presentation
  • ASA 570 going concern
  • IAASB invitation to comment on PIE track 2

AUASB Meeting Highlights – 28 January 2025

  • direct assistance by internal audit in sustainability assurance engagements
  • ASSA 5000 ‘General Requirements for Sustainability Assurance Engagements’ approval
  • ASSA 5010 ‘Timeline for Audits and Reviews of Information in Sustainability Reports under the
    Corporations Act 2001’ approval
  • approval of PIE track 1

Latest news from the AUASB included:

NamePublication date
ISSA 5000 Implementation Guide

13 March 2025

Research proposal request – scope broadened to include audit and assurance

18 February 2025

Climate and sustainability assurance requirements approved

29 January 2025

Updates to Auditor’s Responsibilities Statements*

20 January 2025


*Excluded in the October – December 2024 updates due to cut-off date.

 

International Update – International Auditing and Assurance Standards Board (IAASB)

Topics discussed included: 

IAASB Meeting Highlights – 18-21 March 2025

  • fraud (approval of ISA 240 Revised)
  • ISSA 5000 implementation
  • experts narrow scope amendments
  • technology position
  • ISRE 2410
  • targeted issues – fraud
  • targeted issues related to topics for approval or clearance
  • audit evidence and risk response (issues)
  • ISAE 3410
  • technology gap analysis

Latest publications from the IAASB included:

NamePublication date
IAASB contributes to new book ‘For the World’s Profit: How Business Can Support
Sustainable Development’

5 February 2025


 

Ethics Update

Australian Update – Accounting Professional and Ethical Standards Board (APESB)

Topics discussed included: 

APESB Meeting Highlights – 6 March 2025

  • update on IESBA firm culture and governance project
  • sustainability update
  • update from the AUASB on sustainability assurance
  • proposed revision to APES 110 for sustainability assurance and reporting
  • proposed revision to APES 110 for use of external experts

Latest news and media releases from the APESB included:

NamePublication date
New ethics and independence standards for sustainability reporting and assurance

25 March 2025

APESB issues new ethical standards for tax practitioners

31 January 2025

APESB issues revised corporate finance pronouncements22 January 2025
APESB issues revised APES GN 20 Scope and Extent of Work for Valuation Services

16 January 2025

APESB issues a new revised compiled Code and prohibitions guidance*

20 December 2024


*Excluded in the October – December 2024 updates due to cut-off date.

 

International Update – International Ethics Standards Board for Accountants (IESBA)

Topics discussed included: 

IESBA Meeting Highlights – 10-12 March 2025

  • collective investment vehicles pension funds and investment company complexes
  • adoption and implementation working group
  • firm culture and governance
  • Emerging Issues and Outreach Committee – private equity investments in firms
  • technology
  • IESBA communications

Latest news and publications from the IESBA included:

NamePublication date
IAASB and IESBA unveil new standards and guidance to strengthen sustainability
reporting and assurance

27 January 2025

Final pronouncement: International ethics standards for sustainability assurance (including
international independence standards) and other revision to the code relating to
sustainability assurance and reporting

17 January 2025

Final pronouncement: Using the work of an external expert

17 January 2025

IESBA launches standard-setting project on accounting firm culture and governance

14 January 2025


 

NSW Treasury

NSW Treasury documents and resources

Treasury’s recent releases and other guidance included:

NamePublication date
TPG 25-03 ‘Financial reporting code for NSW General Government Sector agencies#

20 March 2025

TPG 25-02 ‘Mandates of options and major policy decisions under Australian Accounting Standards’#

20 March 2025

TPG 25-01 ‘Agency Direction for the 2024-25 Mandatory Early Close’#

26 February 2025

TPG 24-31 ‘Benefits Management Gude’

19 February 2025

TPG 24-01 ‘Management of NSW Government payments’

14 February 2025

TPG 24-34 ‘Carbon emissions in the Investment Framework’*

20 December 2024


*Excluded in the October – December 2024 updates due to cut-off date.
#For more information refer to Hot Topics section.

 

Premier’s Department

Circulars and Memoranda

The Premier released the following memos and circulars:

NameType of documentPublication date
M2025-04 ‘NSW Government Fair Pay and Bargaining Policy 2024-
25’
Memorandum

12 March 2025

M2025-01 ‘Government Property and Workplace Operating
Principles’
Memorandum

8 January 2025


 

The Cabinet Office (TCO)

Circulars and Memoranda

TCO released the following memos and circulars:

NameType of documentPublication date
M2025-03 ‘NSW Government response to inquiries’Memorandum

7 February 2025

M2025-02 ‘NSW Government submissions to inquiries’Memorandum

7 February 2025


 

Department of Customer service (DCS)

Whole of Government Circulars

DCS released the following circulars:

NameType of documentPublication date
DCS-2025-01 ‘Cyber Security NSW Directive – Restricted
Applications List’
Circular

14 February 2025


 

Public Accounts Committee (PAC)

Inquiries and Reports

Inquiries and Reports tabled in NSW Parliament included:

NameType of documentPublication date
Examination of the Auditor-General’s performance audit reports
December 2020 - December 2023
Inquiry

24 March 2025

The safety and quality of health services provided by Northern
Beaches Hospital
Inquiry

12 March 2025

Accountability measures for decision-making: Critical
Communications Enhancement Program
Report

13 February 2025


 

Office of Local Government (OLG)

Recent publications released included:

NamePublication date
Council Circular 25-04 ‘Draft Quarterly Budget Review Statement Guidelines’#

6 March 2025

Council Circular 25-03 ‘Review of the NSW Companion Animal Laws – Discussion Paper’

26 February 2025

Council Circular 25-01 ‘Cyber Security Guidelines for Councils’#

24 January 2025


#For more information refer to Hot Topics section.

 

Australian Charities and Not-for-profits Commission (ACNC)

Recent news and media included:

NamePublication date
Public consultation on template constitutions for charitable companies limited by guarantee

26 March 2025

Charities and the federal election: update guidance on advocacy

21 February 2025

Strengthening public trust and confidence in the sector

13 February 2025


 

Australasian Council of Auditors-General (ACAG) Submissions to AUASB or AASB

ACAG recently made submissions on:

NameDue date
ACAG response to Exposure Draft 334 ‘Limiting the Ability of Not-for-Profit Entities to
prepare Special Purpose Financial Statements’

27 February 2025

Request for comment: Exposure Draft 1, Proposed International Public Sector Accounting
Standards Board Sustainability Reporting Standards – Climate-related Disclosures

27 February 2025


 

Publications by Australian and New Zealand Audit Offices

Australian National Audit Office

Australian National Audit Office (ANAO)Type of reportPublication date
Management of Corporate Credit CardsInsights: Audit
Lessons

20 March 2025

Draft 2025-26 Annual Work ProgramCorporate

17 March 2025

Risk Management Framework 2025-27Corporate

11 March 2025

Management of Complaints by the Australian Taxation OfficePerformance audit

5 March 2025

Sport Integrity Australia’s Management of the National Anti-Doping
Scheme
Performance audit

3 March 2025

ANAO’s artificial intelligence transparency statementCorporate

28 February 2025

Governance of Artificial Intelligence at the Australian Taxation
Office
Performance audit

24 February 2025

Performance Statements Auditing in the Commonwealth –
Outcomes from the 2023-24 Audit Program
Performance
Statements audit

19 February 2025

Management of Complaints by the Australian Human Rights
Commission
Performance Audit

17 February 2025

Strategic Water Purchasing – Bridging the Gap 2023Performance Audit

12 February 2025

Audits of the Financial Statements of Australian Government
Entities for the period ended 30 June 2024
Financial statement
audit

6 February 2025

Bureau of Meteorology’s Management of Assets in its Observing
Network
Performance audit

23 January 2025

2023-24 Major Projects Report*Major projects report

18 December 2024


*Excluded in the October – December 2024 updates due to cut-off date.

 

Northern Territory Auditor-General's Office

Northern Territory Auditor-General's Office (NT AGO)Type of reportPublication date
Public Information ReferralsReview

17 March 2025

Territory Coordinator Radio Advertisement Review – Public
Information Act 2010
Review

10 February 2025


 

Queensland Audit Office

Queensland Audit Office (QAO)Type of reportPublication date
Major Projects 2024Insights report

20 January 2025

Health 2024Financial audit

15 January 2025

Managing Queensland’s regional water quality*Performance audit

18 December 2024


*Excluded in the October – December 2024 updates due to cut-off date.

 

 

South Australian Auditor-General’s Department

South Australian Auditor-General’s Department (SA AGD)Type of reportPublication date
Regional bus service contracts – Phase 2Other report

18 March 2025

Update to the annual report for the year ended 30 June 2024Annual report

4 March 2025


 

Tasmanian Audit Office

Tasmanian Audit Office (TAS AO)Type of reportPublication date
Auditor-General’s Report on the Financial Statements of State Entities, Volume 3 – Local Government, Audit of State entities and audited subsidiaries of State entities 30 June 2024Financial audit

12 March 2025

Auditor-General’s Report on the Financial Statements of State Entities, Volume 2 – General Government Sector, including Treasurer’s Annual Financial Report, Audit of State entities and audited subsidiaries of State entities 31 December 2023 and 30 June 2024Financial audit

12 March 2025


 

Victorian Auditor-General’s Office

Victorian Auditor-General’s Office (VAGO)Type of reportPublication date
Managing Disruptions Affecting Victoria’s Public Transport NetworkPerformance audit

5 March 2025

Major Projects Performance ReportingPerformance review

19 February 2025

Reporting on Local Government Performance: Follow-upPerformance review

5 February 2025


 

Western Australia Office of the Auditor-General

Western Australia Office of the Auditor-General (WA OAG)Type of reportPublication date
Child Protection Case Management System – AssistInformation systems

21 March 2025


 

New Zealand Office of the Auditor-General

New Zealand Office of the Auditor-General (NZ OAG)Publication date
Submission on the Local Government (Water Services) Bill

13 March 2025

Regulating vehicle safety inspections

4 March 2025

Observation from our audits of councils’ 2024-34 long-term plans

20 February 2025

Our insights into five health regulatory authorities

19 February 2025

Results of the 2023 school audits

14 February 2025

Monitoring integrity in public organisations

21 January 2025

Responses to our recommendations about Whanau Ora and whanau-centred
approaches*

19 December 2024


*Excluded in the October – December 2024 updates due to cut-off date.

 

Other useful resources

Independent Commission Against Corruption (ICAC)

Recent media releases included:

NamePublication date
Statement regarding investigation into Greyhound Racing NSW Board

14 February 2025

Decision on referral of the NSW Legislation Council Select Committee on the proposal to
develop Rosehill Racecourse “Proposal to develop Rosehill Racecourse Report 2”*

19 December 2024


*Excluded in the October – December 2024 updates due to cut-off date.

 

Independent Pricing & Regulatory Tribunal (IPART)

Recent IPART news and media releases included:

NameIndustryType of DocumentPublication date
Six NSW councils apply for rate increasesLocal governmentMedia release

25 February 2025


 

NSW Ombudsman

Recent news and reports included:

NamePublication date
Casebook January 2025: Investigations and complaint-handling case studies

30 January 2025

Ombudsman’s report calls on NSW Government to renew commitment to OCHRE
(Opportunity, Healing, Responsibility, Empowerment)

28 January 2025