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Strategic

framework The Treasury people assess new and existing public policy issues against

Wellbeing Framework
2010-11 the Treasury’s broad wellbeing framework, drawing from widely recognised
economic principles.
We bring a whole-of-economy approach to our analysis and advice; we
recognise that the wellbeing of Australians encompasses much more than is
Secretary’s Foreword captured by traditional quantitative measures of economic activity; and we
complement and challenge the advice of other agencies on the effects of
The Treasury’s Strategic Framework sets out our mission, role and policy proposals.
responsibilities, as well as the values and capabilities that we bring to While the wellbeing framework is not a checklist to be applied in every
our work. It highlights the Treasury’s important role as a central policy circumstance, it reinforces our conviction that trade-offs matter deeply. There are
agency within the Australian Public Service. We apply a broad wellbeing five dimensions to the wellbeing framework:
framework in developing policy advice. The Treasury’s work is also
underpinned by our ability to anticipate and analyse economic issues, • The opportunity and freedom that allows individuals to lead lives of real
consult widely, manage risk and allocate our resources efficiently. value to them. We have drawn heavily here on the thesis of economist,
Accordingly, areas of policy priority, key high level risks and governance philosopher and Nobel laureate Amartya Sen, that human development is
arrangements are defined, as well as the Treasury’s budget for 2010-11. measured by the extent to which individuals have the capabilities necessary to
choose to lead a life they have reason to value.
I commend this Strategic Framework to both Treasury staff and the
community. • The level of consumption possibilities available to the community over time.
This includes both market and non-market goods and services, such as the
character and quality of people’s engagement in the community, the physical
The Treasury’s The Treasury’s mission is to improve the
wellbeing of the Australian people by
environment, health and leisure.

Mission providing sound and timely advice to the


• D
istribution looks at the spread of all other aspects of wellbeing across the
Australian population. Distributional outcomes across different social groups,
government, based on objective and thorough analysis of options, and by geographic regions and generations are also considered.
assisting the Treasury ministers in the administration of their responsibilities • The overall level and allocation of risk borne by individuals and, in aggregate,
and the implementation of government decisions. by the community. Risk can be particularly harmful to wellbeing when people
who are clearly unable to manage risk are nevertheless required to bear it, or
are exposed to it unknowingly.
• The level of complexity confronting Australians in making decisions about
The Treasury’s Role as a Central their lives.

Policy Agency
As a central policy agency, the Treasury is expected to anticipate and analyse policy
issues with a whole-of-government perspective, understand government and stakeholder Consumption
Distribution
circumstances, and respond rapidly to changing events and directions. As such, the possibilities
Treasury’s interests are broad and diverse.
Opportunity
We are engaged in a vast range of issues that affect the lives of Australians, from and freedom
macroeconomic policy settings to microeconomic reform, climate change to social
policy, as well as tax policy and international agreements and forums.
Risk Complexity
The Treasury has a program delivery role in supporting markets and business, and
providing Commonwealth payments to the State and Territory governments.
What We Do
Outcome The Treasury makes informed decisions on the development and There are four policy groups that contribute to this outcome: Macroeconomic; Fiscal;
implementation of policies to improve the wellbeing of the Australian Revenue; and Markets Group. Their work covers the following areas:
people, including by achieving strong, sustainable economic growth, through
the provision of advice to government and the efficient administration of federal
financial relations.

Sound Macroeconomic Environment Effective Taxation And Retirement Income Arrangements


To promote a sound macroeconomic environment, the Treasury: To contribute to effective taxation and retirement income arrangements,
• monitors and assesses economic conditions and prospects, both in Australia the Treasury:
and overseas; • analyses the economic and social effects of policy proposals and develops
• provides advice on macroeconomic policy, including fiscal and policy options;
monetary policy; • provides advice to portfolio ministers to assist in formulating, implementing
• uses global and regional forums and bilateral relationships to advance and explaining government decisions on taxation and retirement income
Australia’s interests and improve the international economic environment; and arrangements;

• assists other governments in Asia and the south-west Pacific to improve • contributes to the development of laws that effectively implement government
economic governance. decisions; and
• provides information on revenue forecasts and projections.
Effective Government Spending Arrangements
To assist in formulating, implementing and explaining government spending Well-Functioning Markets
decisions, the Treasury: To contribute to well-functioning markets, the Treasury:
• provides advice on fiscal strategy that aims to ensure fiscal sustainability over • fosters competitive, efficient, well-informed and safe markets;
the economic cycle; • pursues efficient development and implementation of foreign investment and
• provides advice on effective government spending arrangements that trade policy to support Australia’s national interest;
contributes to improving the wellbeing of Australians, including on industry, • promotes a well-functioning and competitive financial system;
environment, defence and social policy;
• promotes sound corporate practices and financial reporting;
• provides advice on Commonwealth-State financial policy, and supports
Commonwealth-State relationships, including through the coordination and • provides advice on regulation of corporations and financial services;
delivery of various Commonwealth-State forums, the progress of COAG reform • reduces the regulatory burden on business; and
agendas and implementation of the Intergovernmental Agreement on Federal
• provides advice on improving housing supply and affordability.
Financial Relations; and
• advises on budget policies and prepares the Commonwealth Budget and other
financial-related papers required under the Charter of Budget Honesty Act 1998.
ThE The Treasury remains focused on The Treasury people are skilled professionals, committed to providing quality

The Treasury Values


advice, thinking analytically and strategically, and striving to achieve long-term
achieving strong and sustainable
Treasury’s economic growth and the improved
benefits for all Australians. We uphold the important values and behaviours
that shape the Treasury culture. These values influence all aspects of the way
wellbeing of  the Australian people.
Priorities The areas of policy focus reflect
we work.

The Treasury people


the Treasury’s priority to manage economic recovery and meet • strive for excellence;
long‑term challenges through pursuing sound regulatory and • value teamwork, consultation and sharing of ideas;
structural reforms.
• value diversity among our people;
• Support implementation of the Government’s fiscal strategy through providing • treat everyone with respect;
advice on effective government spending and effective taxation and
retirement income arrangements, as well as debt management policy. • exhibit honesty in all our dealings; and
• treat colleagues with fairness.
• Prepare timely and high quality assessments of domestic and international
economic conditions. The Treasury people management principles
• stipulate open, two-way communication at all levels;
• Improve the productive capacity of the economy, particularly through
investment in infrastructure and skills development. • clearly define accountabilities;
• use work performance as the basis for remuneration that is determined by fair
• Provide policy advice on intergenerational issues, including infrastructure and
sustainable population, and environmental and social sustainability, including and transparent processes; and
climate change. • facilitate staff in achieving an appropriate work and private life balance.

• Assist the Government to implement its taxation, retirement income and


health reform agendas.

• Lead ongoing design and extension of Standard Business Reporting role of the executive board
capabilities to reduce the compliance burden experienced by businesses in The Secretary, Executive Directors and General Manager, Corporate Services Group,
reporting to government. make up the Executive Board. The role of the Executive Board is to provide support to
the Secretary, set strategic direction for the Treasury and to ensure robust and effective
• Develop a better understanding of the process and common policy
governance. The main roles and responsibilities of the Board within Treasury are shown in
challenges facing G20 countries and evaluate whether the policy responses
the diagram below.
are collectively consistent with more sustainable and balanced growth.

• Participate in, and ensure the ongoing strength of, regional forums.

• Further develop relationships with China and India. Operational Policy


Strategy Formulation
Making
• Work with the Foreign Investment Review Board to ensure foreign investment
is consistent with Australia’s national interest. Work with and through
the Secretary

Providing Monitoring and


Accountability Supervising
Risk Management Framework The Treasury’s capabilities comprise its people, technical expertise, knowledge

The Treasury’s
Organisational Capabilities
base, internal structures, ways of operating and support systems. How these
capabilities are used and further developed determines our performance.
Risk management is integral to the Treasury’s planning and To maximise our potential, we nurture and strengthen our core organisational
governance framework. The Executive Board has responsibility for capabilities and consistently seek better ways to do business.
the oversight of risk management in the department. The Treasury Organisational Capabilities
Audit Committee assists the Executive Board by ensuring that the
risk management strategy remains current and focused on areas Deep Understanding
Understanding our mission, the economic and policy environment, and the views
of greatest risk. A revised framework for managing risks will be
of our stakeholders.
implemented in 2010-11.
Collaboration
The Executive Board has identified six key risks which the Treasury needs
Collaborating with internal and external stakeholders to develop effective policy.
to manage in 2010-11. The responsibility for mitigating these risks is shared
collectively by the areas facing them. Specific risks and mitigation strategies Proactivity and Vision
are identified in group and divisional operational plans.
Anticipating policy, implementation and organisational issues.
Key Departmental Risks
Influence and Reputation
• Policy advice and implementation lacks quality, practicality, consistency Building trust with the Government and other stakeholders, and influencing the
and timeliness. policy agenda.
• Inability to sustain outputs and capabilities in the short, medium or longer
term. Improvement and Adaptability
Being flexible, adaptable and innovative.
• Inability to influence and sustain constructive relationships with
government, external contacts, stakeholders and other agencies. Efficiency and Productivity
• Inability to identify emerging issues and optimise potential gains Managing costs, allocating resources and enabling efficiencies.
and opportunities.
• Inability to deliver key services and products efficiently.
• Inability to attract, develop and retain staff possessing the required skills
and attributes.

The Treasury Budget for 2010-2011


The Treasury has been appropriated around $160 million for 2010‑11 to fund its
operations. The department has approximately 1000 staff, with the majority located
in Canberra. The Treasury also has officers located in Beijing, Jakarta, London,
Contact Details New Delhi, Paris (OECD), Tokyo, and Washington, with officers also posted to Nauru,
Langton Crescent, PARKES ACT 2600, Australia Papua New Guinea and Solomon Islands.
T  02 6263 2111 | F  02 6263 2614
www.treasury.gov.au

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