Types of Government Money
Government agencies receive money from various sources, each with specific rules on how it can be used and authorised. The Government Sector Finance Act 2018 (GSF Act) outlines these requirements to ensure proper financial management.
The Consolidated Fund and Special Deposits Account
The Government Sector Finance Act 2018 (GSF Act) requires that all expenditure is properly authorised under section 5.5.
GSF agencies receive money from multiple sources, and the source of the money can affect:
- how the agency can use the money
- how the agency authorises its use.
Agencies and staff need to understand the different types of government money and the key requirements for managing them.
We have developed resources to help:
If your agency needs a working account in the Special Deposits Account, email legislation@treasury.nsw.gov.au for more information.
Working accounts
A working account is a specific type of account within the Special Deposits Account (SDA). It must be approved in writing by the Treasurer under section 4.7 of the GSF Act. The sources and uses of money in a working account are limited to those listed in the Treasurer’s written authorisation.
The GSF Act and its Regulations set high-level requirements for working accounts in the SDA. TPG24-20 (PDF 192.59KB) explains how agencies can open, maintain, and close a working account.
Agencies should seek legal advice to determine if a working account is needed and to understand the permitted sources and uses of money.
If your agency requires a working account, contact your Treasury relationship lead.
Types of Government Money frequently asked questions
Under the NSW Constitution, all public money belongs to the Consolidated Fund unless another Act states otherwise. The SDA holds money outside the Consolidated Fund under specific conditions set by the Government Sector Finance Act 2018 (GSF Act).
The SDA includes:
- statutory SDA accounts – money directed by specific legislation
- working accounts – money approved by the Treasurer.
A working account holds money that the Treasurer has authorised to be kept outside the Consolidated Fund. This approval is given through a signed authorising instrument.
Money cannot be in both the Consolidated Fund and the SDA at the same time. Where it is recorded affects:
- how it can be used
- who can approve its use
- what delegation is required.
Money in the Consolidated Fund can only be spent under an Act. Money in an SDA account can only be spent for its intended purpose and under the authority set when the account was created.
Deemed appropriations apply to certain funds, often referred to as ‘own-source’ receipts. Money should be recorded as a deemed appropriation unless there is a clear reason to keep it outside the Consolidated Fund.
For more details, read the Different Types of Government Money Fact Sheet (PDF 151.2KB).
A working account should only be established if the money cannot or should not be recorded in the Consolidated Fund. Common reasons include:
- Bequests or donations to a specific agency.
- Funds raised for a particular purpose.
- Levies collected for a designated use.
Not all money can go into a working account. The GSF Regulations specify what funds qualify.
The Accountable Authority must apply to the Treasurer using an approved form (DOCX 42.79KB).
The application must specify:
- the type of money to be recorded
- the purpose the money will be used for.
The responsible manager must meet financial reporting requirements under the GSF Act (Sections 4.16 and 7.8). Agencies must review the need for a working account every 5 years. Treasury maintains records and ensures accounts are still necessary.
The Treasurer must formally close the account through a written order. The process for closing an account is outlined in Treasury policy (PDF 192.59KB).
Most SDA accounts are statutory SDAs, not working accounts. As of 30 June 2024, fewer than 10 working accounts existed.
If your agency has a working account, your legal or finance team should have a copy of the authorising instrument. You can also check with Treasury’s Policy and Budget analyst for your agency.
Examples of when a working account may be needed:
- Fundraising and donations – An agency receives donations or bequests for specific activities.
- Market operations – A government initiative acts as a central counterparty to improve market liquidity.
- Regulatory fees – An agency charges fees to regulate an industry but has no statutory SDA.
- Inter-agency services – A GSF agency provides services to other agencies and recovers costs.
The suitability of a working account depends on the agency’s circumstances. Legal advice should be sought where necessary.