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TPG26-12 Capitalisation and Depreciation of Property, Plant and Equipment

This policy provides practical guidance to help entities distinguish between capital expenditure that forms part of the cost of property, plant and equipment and operating expenditure recognised as an expense, when applying AASB 116 Property, Plant and Equipment.

This policy replaces TPP 06-6 Guidelines for Capitalisation of Expenditure and expands on the previous guidance by introducing several new areas of focus, including:

• asset control guidance including indicators of control, control of assets under construction and timing of transfers between NSW Government entities
• a revised recommended capitalisation threshold of $10,000 for individual assets and asset networks, subject to agency materiality assessments
• expanded guidance on replacement of asset components, derecognition of replaced components and componentisation requirements
• additional guidance on directly attributable costs, including treatment of employee costs, assets under construction, construction interruptions, borrowing costs and abnormal construction costs
• new guidance on third-party asset costs, including circumstances where costs associated with assets ultimately transferred to third parties may be capitalised
• ehanced guidance on depreciation, including useful life assessments, component depreciation, leasehold improvements, spare parts and reassessment of useful lives and residual values.

The policy applies to reporting GSF agencies under section 7.6 of the Government Sector Finance Act 2018 and their accountable authorities. It does not apply to NSW universities and their controlled entities.

2026–27 NSW Intergenerational Report

NSW Treasury has released the 2026–27 NSW Intergenerational Report, which examines New South Wales' long-term economic, demographic and fiscal outlook and identifies emerging challenges and opportunities that may affect future prosperity and public service delivery in the next 40 years.

The report provides insight into long-term trends relating to population growth, workforce participation, housing, productivity and fiscal sustainability, and may assist agencies in strategic planning and policy development.

26-17 Local Government Performance Ratios Discussion Paper

OLG is consulting on proposed changes to NSW councils’ financial performance ratio framework, including revised benchmarks, council classifications and selected new or amended ratios that may affect future council performance reporting. Submissions close on 7 October 2026.

The paper seeks sector feedback on the proposed Performance Ratio Framework before it is finalised. The appendices to the discussion paper provides additional context and supporting information to inform feedback.

Circular 26-11 Procurement Guidance for Local Government

OLG has released the new Procurement Guidelines for NSW Local Government. The guidelines are issued under section 23A of the Local Government Act 1993 and councils, or entities acting on behalf of councils, are required to consider the guidelines when undertaking procurement and procurement-related activities.

The guidelines provide clarification on the interpretation and application of legislative procurement requirements and outline procurement principles and processes that represent best practice. The guidance is intended to support councils in achieving value for money, effectively managing procurement risks and delivering quality outcomes for their communities.

OLG has also established a Procurement Working Group to assist with the development of supplementary guidance materials and other procurement resources for the local government sector.

26-18 Consultation on Model Code of Conduct for Council Staff, Delegates and Committee Members

OLG is seeking feedback from the local government sector on the new Model Code of Conduct for Council Staff, Delegates and Committee Members. Submission are due by 12 October 2026.

The new Model Code of Conduct introduces new provisions governing the making and publication of returns of interest by designated persons. These are modelled on the requirements that apply to members of the NSW Parliament under the Constitution (Disclosures by Members) Regulation 2026.

Key changes include:

• designated persons only need to submit a full return once, within one month of appointment. Any later updates only need to cover the new interest being disclosed
• general managers must maintain an electronic register of disclosures in two parts:
  • a public register, published on the council's website in a searchable format
  • a confidential register containing residential property addresses
• designated persons must submit an annual declaration confirming that the information recorded in the register is accurate and up to date.

26-15 Elections for mayors and elections for chairpersons of joint organisations and county councils

Under the Local Government Act 1993 (LG Act), mayors elected by councillors and chairpersons of joint organisations and county councils hold office for 2 years.

The circular advises that:

• under section 290(1)(b) of the LG Act, councils that elect their mayors must hold a mid-term mayoral election in September 2026
• the deputy mayor holds their office for the mayoral term or a shorter term specified by resolution. An election for deputy mayor must be held after the deputy mayor's term expires (usually at the same meeting as the mayoral election)
• joint organisations and county councils must hold an election for the chairperson at the first meeting after the chairperson’s term has ended (clause 1 of Schedule 7A and clause 1 of Schedule 8 of the Local Government (General) Regulation 2021).

Further guidance is available in a fact sheet on conducting mayoral elections, issued by the OLG.

The NSW Ombudsman has released Casebook July 2026: Investigations and complaint-handling case studies, which highlights lessons from 8,913 actionable complaints and six investigations finalised between 1 January and 30 June 2026.

The report includes case studies involving NSW government agencies, councils and service providers, covering issues such as complaint handling, communication, procedural fairness and administrative decision-making.

Across the 6 investigations, the Ombudsman made 42 recommendations aimed at improving administrative practices.

The Department of Customer Service issued the following Circulars:

DCS-2026-02 Use of Artificial Intelligence by NSW Government Agencies

This circular:

• replaces DCS-2024-04 Use of Artificial Intelligence by NSW Government Agencies
• updates the NSW Government's approach to the safe, lawful and ethical use of AI across the public sector
• outlines the NSW framework for the responsible use of AI, comprising the AI Strategy, NSW AI Operational Policy, NSW AI Assessment Framework and AI Review Committee
• introduces mandatory requirements for agencies using AI, including registration of AI use cases, risk assessments and annual attestations of compliance.

DCS-2026-03 Cyber Security NSW directive – Targeted Initiatives for NSW Government

This circular replaces DCS-2025-04 Cyber Security NSW directive – Targeted Initiatives for NSW Government. It does not introduce new requirements but provides implementation guidance to help agencies comply with the updated NSW Cyber Security Policy and NSW Government Cyber Security Strategy.

The Australian Securities and Investments Commission (ASIC) has released Report 839 ASIC’s review of sustainability reports lodged for 31 December 2025, which sets out observations from its review of sustainability reports prepared under Australia’s mandatory climate-related disclosure requirements. ASIC noted improvements in the quality, consistency and transparency of clime-related financial disclosures compared with previous voluntary reporting.

ASIC outlined 8 key action items to assist entities in preparing future sustainability reports, including:

• explaining how information in the sustainability report connects with relevant disclosures in the financial report
• considering including quantitative information (rather than only qualitative information) about the current and anticipated financial effects of climate-related risks and opportunities
• considering past events, current conditions, forecast future conditions and value chain impacts when identifying climate-related risks and opportunities
• providing clear disclosures of relevant judgements, assumptions and areas of measurement uncertainty
• ensuring that climate-related targets include targets required by law or regulation, such as greenhouse gas emissions targets under the Safeguard Mechanism
• ensuring material climate-related financial information is not obscured by additional climate-related disclosures
• ensuring cross-referenced information is available on the same terms and at the same time as the sustainability report
• avoiding disclaimers that conflict with the statutory sustainability reporting framework or may confuse or mislead users.

For 2026-27, ASIC will review a sample of Group 1 sustainability reports as well as continue supporting implementation through guidance, education and regulatory relief as appropriate. Additional information can be found on the sustainability reporting page.

Topics discussed included:

AASB Meeting Highlights – 27 August 2026

• Presentation and disclosure in financial statements by superannuation and not-for-profit entities
• Not-for-profit guidance on income and expense categorisation
• Post-implementation review of leases
• Disclosure of sustainability-related assurance fees

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

Topics discussed included:

IASB Meeting Highlights – 22-24 September 2026

• Financial instruments with characteristics of equity
• Post-implementation review of IFRS 9 Hedge Accounting
• Amortised cost measurement
• Intangible assets
• Business combinations – disclosures, goodwill and impairment
• Equity method
• Provisions – targeted improvements
• Statement of Cash Flows and related matters
• Maintenance and consistent application
  • Presentation of taxes or other charges that are not tax expense or tax income applying IAS 12 Income Taxes (IFRS 18)

IASB Meeting Highlights – 21-22 July 2026

• Post-implementation review of IFRS 16 Leases
• Post-implementation review of IFRS 9 Hedge Accounting
• Business combinations – disclosures, goodwill and impairment
• Maintenance and consistent application
  • Presentation of taxes or other charges that are not tax expense or tax income applying IAS 12 Income Taxes (IFRS 18)
  • Updates to agenda decisions for IFRS 18 – Reverse Factoring Agenda Decision
  • IFRIC update
• Equity method
• Intangible assets
• Statement of Cash Flows and related matters

Latest news from the IFRS Foundation included:

Topics discussed included:

IPSASB Meeting Highlights – 15-17 September 2026

• Measurement – application phase: Current Operational Value (COV) in IPSAS 31
• Improvements to IPSAS standards
• Climate-related disclosures – public policy outcomes
• Emerging issues – digital assets in the public sector
• Initiatives supporting implementation
• Strengthening linkages between IPSAS standards and Government Finance Statistics Manual (GSFM)
  • Review of responses to Exposure Draft 94
• Making materiality judgments - Review of responses to Exposure Draft 97

IPSASB has recently issued:

Topics discussed included:

AUASB Meeting Highlights – 12 August 2026

• Revised GS 007 Audit Implications of the Use of Service Organisations for Investment Management Services
• Project plan – assurance work on valuation of investments in unlisted externally-managed Managed Investment Schemes
• Draft information sheet – Financed emissions and data sourced from an external data provider
• ISRE 2410 Interim Financial Information exposure draft submission
• Audit evidence and risk response exposure draft (Revised ISAs 500, 330 and 520)
• Revised GS 023 Special Considerations – Public Sector Engagements – update for revised ASA 570
• Update on revising ASRE 2405 & ASRE 2415

Latest news from the AUASB included:

Topics discussed included:

IAASB Meeting Highlights – 14-17 September 2026

• Technology quality management guides
• Strategy and Work Plan 2028-2031
• IESBA – Firm culture and governance
• Other assurance engagements
• Private equity and other external investments
• ISA 500 Series
• Post-implementation review of ISA 540 Auditing Accounting Estimates and Related Disclosures
• Sustainability assurance
• Sustainability reporting

Latest news from the IAASB included:

Topics discussed included:

APESB Meeting Highlights – 4 September 2026

• Sustainability reporting, assurance and ethics developments
• Proposed APES 206 Conformity with Sustainability Reporting Standards
• Post implementation review of APES 320 Quality Management for Firms that provide NAS and APES 325 Risk Management for Firms
• Update on IESBA’s Firm culture and governance project
• Update on IESBA’s project on Independence Standards for SAEs outside the scope of the IESSA
• Project update on the impact of AI on Forensic Accounting and Valuation Services
• Review of APESB Due process and working procedures document
• Update on the auditor independence guide project
• Update on parliamentary inquiries

Latest news and media releases from the APESB included:

Topics discussed included:

IESBA Meeting Highlights – 14-18 September 2026

• Firm culture and governance
• Role of CFOs
• Strategy and Work Plan 2028-2031
• Technology
• Restructured Code post-implementation review
• Private equity and other external investments in accounting firms
• Adoption and implementation
• Strategic priorities

Latest news from the IESBA included:

Treasury’s recent releases and other guidance included:

^#For more information refer to Hot Topics section.

The Premier released the following memos and circulars:

TCO released the following memos and circulars:

OPSC released the following memos and circulars:

DCS released the following circulars:

^#For more information refer to Hot Topics section.

NSW Procurement Board’s recent Directions included:

Inquiries and Reports tabled in NSW Parliament included:

Recent publications included:

Recent media releases included:

Recent IPART papers and reports included:

Recent news and media releases included:

^#For more information refer to Hot Topics section.