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The NSW Procurement Board issued the following Directions:

PBD-2025-04 Mandate for the publication of NSW Government open tender opportunities on buy NSW

Effective from 1 January 2026, this Direction:

• replaced PBD-2024-01 and mandates the publication of all NSW Government open tender (as defined according to the NSW Procurement Policy Framework) opportunities on buy NSW, irrespective of the value
• applies to all government agencies within the meaning of the Public Works and Procurement Act 1912
• aims to improve procurement outcomes, increase transparency and visibility of procurement activity and help to ensure that government is spending public money fairly, efficiently and for the long term benefit of the people of New South Wales.

The Direction is required for open tenders, but agencies may determine to also publish the following optional categories of procurement:

• opportunities through established agency specific panels
• direct negotiation
• market sounding or requests for information
• selective tenders.

PBD-2025-02 Engagement of professional services suppliers

This Direction replaces PBD-2023-05 and:

• introduces key updates to strengthen buyer behavioural requirements and extending these obligations beyond consultants to encompass all professional services when engaging suppliers
• includes enhanced guidance on the behaviours when engaging consultants and professional services firm to ensure the objectives of value for money, probity and transparency are met for government procurement decisions, such as ensuring:
  • the need to use a consultant, rather than other resource types is defined
  • the duration of the consultancy is as short as possible to undertake the required work
  • any variations to the engagement contract have a clear and specific justification
  • the engagement is subject to appropriate confidentiality provisions
  • conflicts of interest (potential, perceived or actual) are declared and managed prior to and throughout the engagement
  • an assessment of the consultant’s work is performed
  • appropriate documentation and record keeping practices
  • clear identification of the consultant when working within government agencies, for example in e-mail systems, security passes, and staff directories
  • the consultant does not have decision-making authority in recruitment or selection processes for other consultants and contractors.

Additionally, the Direction requires entities to first consider the Core NSW Public Service Work Policy to ensure the services engaged do not contravene the types of work that must be performed by government sector employees.

PBD-2025-03 Mandated use of the ICT Purchasing Framework

This Direction replaces PBD-2021-02 and requires an agency to use the relevant ICT Purchasing Framework documents for the procurement of ICT goods and services, which comprises:

• Core& Contracting Framework for procurement of low-risk goods/services with a contract value of up to $1 million (ex GST).
• The MICTA/ICTA Contracting Framework (in replacement of Procure IT 3.2) for procurement of high-risk goods/services or contract value of $1 million or more (ex GST).

The only exemption allowed under the Direction is where:

• there is a current mandated whole of government contract for the relevant ICT goods or services procured is in place or
• an exemption has been provided by the Procurement Board (or authorised delegate).

PBD-2025-05 Modern slavery tender clauses for high modern slavery risk procurements

This Direction commences on 1 January 2026, however compliance is optional until 1 July 2026, after which government agencies must comply for procurements that commence on or after that date. Although not mandated, agencies are encouraged to apply the Direction from 1 January 2026 where feasible.

This Direction requires that agencies use heightened due diligence tender clauses in relation to tender processes for high modern slavery risk procurements. This means that the tender clauses on modern slavery must substantially reflect those prepared by the Office of the NSW Anti-slavery Commissioner (OASC), or that otherwise align with the principles for heightened due diligence in the Guidance on Reasonable Steps issued by the OASC.

‘High risk’ means procurement categories assigned an inherent modern slavery risk level of ‘High’ by the OASC’s Inherent Risk Identification Tool (IRIT).

The NSW Ombudsman has released an In Focus paper, Managing backlogs, examining a common and persistent challenge across public sector administration, where the ever-increasing demands for public services are rarely matched by an equivalent availability of time and resources.

This paper explores why backlogs occur, the impacts of delay, and the risks that arise when backlogs are poorly managed. The paper draws on recent investigations and case studies and outlines practical approaches for preventing and managing backlogs, including early identification, effective monitoring, and transparent communication.

TPG 26-05 2025-26 Interim Financial Reporting and Audit Readiness Procedures

TPG 26-05 2025-26 Interim Financial Reporting and Audit Readiness Procedures defines the minimum requirements agencies are required to complete for the 2025-26 Interim Financial Reporting and Audit Readiness (IFRAR) procedures. Agencies may wish to perform additional procedures as part of a strategy to improve the quality and timeliness of financial reporting.

IFRAR is mandatory for all GSF agencies that are currently reporting financial information in Treasury’s Prime system, except for agencies that meet the group 3 requirements as per TPG25-10 Framework for Financial and Annual Reporting.

IFRAR procedures reflect a new, risk-based approach being trialled for 2025-26 that replaces the previous ‘Early Close’ procedures for NSW GSF agencies. IFRAR is designed to streamline interim reporting, promote audit readiness, and ensure high-quality, timely financial reporting across the sector.

The key changes for agencies include:

• Tailored and flexible procedures – IFRAR allows agencies to focus on key audit matters identified in the Annual Engagement Plan issued by the Audit Office or in response to other emerging issues.
• Timing flexibility – agencies can complete IFRAR procedures at any time during the year, provided they are finished by the end of May (except for comprehensive asset valuations and fair value assessments, which are due by the end of April).
• Proforma financial statements – these now only need to include comparatives and not 9 months year-to-date actuals. Proforma financial statements must be prepared and shared with the Audit Office at an agreed time during 2025-26, unless both parties agree they are not required. Additionally, Public Non-financial Corporations and Public Financial Corporations receive relief from preparing P9 actuals in Prime.

The TPG recommends agencies engage with the Audit Office during the 2025–26 planning phase if they want to explore hard close audit procedures. Agencies are still required to comply with the IFRAR procedures mandated under this TPG if hard close procedures are performed.

Agencies may seek an exemption from one or more requirements of the TPG by writing to the Executive Director, Financial Stewardship and Public Reporting of Treasury. Requests must be made no later than the relevant submission for the requirements outlined in section 2.1 of the TPG. Agencies must consult with the Audit Office before making a request.

TPG 26-04 Mandates of options and major policy decisions under Australian Accounting Standards

TPG 26-04 Mandates of options and major policy decisions under Australian Accounting Standards, which superseded and withdraws the previous version TPG 25-02, updates the mandates of accounting policy options and major policy decisions under Australian Accounting Standards (AAS) to be applied in entity financial statements for financial years ending on or after 30 June 2026.

This mandatory TPG:

• applies to GSF agencies required to prepare general purpose financial statements under section 7.6 of the Government Sector Finance Act 2018 (GSF Act)
• does not apply to universities and their controlled entities.

The key changes to this TPG is to update the:

• list of standards issued but not yet effective and confirm that Accounting Standards generally cannot be early adopted
• mandates for AASB 10 Consolidated Financial Statements to provide an option for parent entities not to include a separate column for parent entity financial statements if:
  • all its controlled entities are small controlled agencies, as defined by the clause 15A of the Government Sector Finance Regulation 2024, and
  • parent entity financial statements are not materially different from the consolidated financial statements.

TPG 26-03 Financial Reporting Code for NSW General Government Sector Agencies

The Financial Reporting Code (FRC), which superseded the previous version TPG 25-03, sets out the financial reporting framework for NSW General Government Sector (GGS) entities and provides illustrative guidance on the form and content of the financial statements, including the note disclosures for financial years ending on or after 30 June 2026. Special purpose staff agencies should refer to Treasury Circular TC15-07.

The FRC has been updated for changes in Australian Accounting Standards (AAS) and Treasury policy requirements. Changes from the previous version include:

• updates in the relevant note disclosures and commentary for minor changes to AAS (for example, AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability and AASB 2026-1 Amendments to Australian Accounting Standards – Disclosures about Uncertainties in the Financial Statements). These are not considered material
• addition of recommended disclosures in the note disclosure on the impact of climate-related matters on financial statements in addition to the relevant guidance
• updates to property, plant and equipment note to reflect the changes in TPG 25-11 Valuation of Physical Non-Current Assets at Fair Value
• minor changes to strengthen the prompts added in the previous version to remove accounting policy information that is not material, in accordance with amendments to AASB 101 Presentation of Financial Statements.

The disaggregated disclosures requirements for 2025-26 remain unchanged to the approach adopted for 2024-25.

TPG 26-02 NSW Performance and Wellbeing Framework

TPG 26-02 NSW Performance and Wellbeing Framework supersedes TPP 18-09 Outcome Budgeting. The NSW Performance and Wellbeing Framework was introduced by the NSW Government in the 2025-26 NSW Budget, with the aim of helping agencies understand and report on the outcome of performance indicators and wellbeing metrics across 8 wellbeing themes and 28 NSW Outcomes.

GSF agencies within the GGS are required to:

• meet the mandatory reporting requirements under the framework
• submit an updated data development plan to NSW Treasury in November each year outlining new or in development indicators proposed to be included in the framework and a high-level overview of how the agency’s activities and services link to NSW Outcomes and their performance indicators
• map their Prime programs to relevant NSW Outcomes, including a primary NSW Outcome and, where relevant, secondary NSW Outcomes
• map new policy proposals put forward through the budget process to NSW Outcomes.

TPG 26-01 Budget Disaggregation by Programs

TPG 26-01 Budget Disaggregation by Programs replaces the previous guidance as part of TPP 18-09 Outcome Budgeting and should be read in conjunction with TPG 26-02 NSW Performance and Wellbeing Framework.

This TPG provides guidance to agencies on program structures following the transition to the Performance and Wellbeing Framework from Outcome Budgeting.

To support the objective of greater transparency of budget and performance information, GSF agencies within the GGS are required to:

• consider program design guidance when establishing and amending program structures in Prime
• ensure amendments or changes to programs are approved by the chief financial officer
• engage with NSW Treasury before submitting program change requests
• include financial information in Prime for the current, budget, forward estimates and planning years
• make updates to program data in Prime through reporting processes and periods communicated by NSW Treasury
• ensure activities within a program include quantitative and qualitative measures that demonstrate what has been achieved over time using public resources.

TPG 25-16 Guidance for AASSB 1058 Income for not-for-profit entities and TPG 25-15 Guidance for AASB 15 Revenue from contracts with customers

Both TPGs provide guidance on the application of the relevant accounting standards to revenue recognition in the public sector.

Although the TPGs provide useful guidance, it is important for entities to:

• determine whether a transaction falls within one or both standards (AASB 1058 or AASB 15) – entities should refer to either the application guidance in AASB 1058 or Appendix F of AASB 15
• read both standards in their entirety to understand the full requirements.

*Delegated to Claudia Migotto – Deputy Auditor-General

Topics discussed included:

AASB Meeting Highlights – 19 March 2026

• Not-for-profit private sector reporting framework
• Conceptual framework – not-for-profit amendments
• Post-implementation Review of AASB 1060 and AASB 2020-2
• Tier 2 – Translation to a hyperinflationary presentation currency
• Review of AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities

AASB Meeting Highlights – 5 February 2026

• AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities
• Not-for-profit private sector reporting framework (Tier 3)
• Conceptual Framework – not-for-profit amendments
• Climate-related financial disclosures

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

Topics discussed included:

IASB Meeting Highlights – 23 - 27 March 2026

• Post-implementation review of IFRS 16 Leases
• Work plan
• Equity method
• IFRS for SMEs accounting standard

IASB Meeting Highlights – 24 - 25 February 2026

• Financial Instruments with characteristics of equity
• Post-implementation review of IFRS 16 Leases
• Amortised cost measurement
• Equity method
• Provisions – targeted improvements
• Post-implementation Review of IFRS 9 Financial Instruments – hedge accounting

IASB Meeting Highlights – 27 - 28 January 2026

• Post-implementation review of IFRS 16 Leases
• Consistent application activities
• Intangible assets
• Statement of Cash Flows and related matters

Latest news from the IFRS Foundation included:

Topics discussed included:

IPSASB Meeting Highlights – 10-13 March 2026

• Public interest committee governance update
• Presentation of financial statements
• Improvements to IPSAS accounting standards
• Making materiality judgments
• Climate-related disclosures – Phase 2: Public policy programs
• Measurement – Application Phase: COV in IPSAS 31
• SASB Research forum
• Emerging issues
• Post-implementation reviews
• Climate-related disclosures: Implementation phase

Recent news from the IPSASB included:

IPSASB has recently issued:

Topics discussed included:

AUASB Meeting Highlights – 13 March 2026

• ISRE 2410
• Audit Evidence and Risk Response
• Targeted other standards in ISA 500 series
• Sustainability and other assurance
• Technology

AUASB Meeting Highlights – 25 February 2026

• Environmental scan and observations on December 2025 reporting season
• IAASB surveys: IAASB/IESBA strategy and workplan and ISA 540 post implementation review
• GS 018 Franchising Code of Conduct – Auditor’s Reports
• GS 010 Responding to Questions at an Annual General Meeting
• Narrow scope amendments to AUASB Standards arising from APESB’s Use of Experts Project
• Illustrative Corporations Act Sustainability Assurance reports – next steps

ASB Meeting Highlights – 6 January 2026

• Illustrative Corporations Act Sustainability Assurance reports

Latest news from the AUASB included:

Topics discussed included:

IAASB Meeting Highlights – 16-19 March 2026

• ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity
• Technology guidance (overarching approach & quality management action plan)
• Targeted Standards in ISA 500 series
• Sustainability and other assurance
• The ISA for less complex entities
• Audit evidence and risk response

Latest publications from the IAASB included:

Topics discussed included:

APESB Meeting Highlights – 26 March 2026

• Update on IESBA firm culture and governance project
• Update on parliamentary inquiries
• Project update on conformity with sustainability reporting standards
• Proposed revised APESB Guidance on Audit Partner Rotation
• Project update on the review of APES GN 40 Ethical Conflicts in the Workplace – Considerations for Members in Business

Topics discussed included:

IESBA Meeting Highlights – 9-12 March 2026

• Post-Implementation Reviews of Responding to Non-Compliance with Laws and Regulations Provisions and the Restructured Code
• Firm culture and governance
• Role of CFOs
• IAASB-IESBA coordination
• Adoption and implementation
• Part 4B sustainability
• Emerging issues and outreach committee – update
• Technology
• Private equity investments in accounting firms
• IESBA risks and opportunities

Latest news and publications from the IESBA included:

Treasury’s recent releases and other guidance included:

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The Premier released the following memos and circulars:

OPSC released the following circulars and memos:

DCS released the following circulars:

NSW Procurement Board’s recent Directions included:

^#For more information refer to Hot Topics section.

Inquiries and Reports tabled in NSW Parliament included:

Recent publications included:

Recent IPART papers and reports included:

Recent news and media releases included:

#For more information refer to Hot Topics section.