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20/03/2026

8. Appropriations

This section of the guide provides appropriation related guidance for corporate Commonwealth entities (CCEs). For guidance on the:

  • accounting recognition, treatment and disclosure requirements for annual appropriations, special appropriations and special accounts for non-corporate Commonwealth entities (NCEs), see RMG-116 Accounting for annual appropriations
  • constitutional basis and parliamentary accountability, legislative framework and administrative processes for annual appropriations, special appropriations and special accounts (including information related to establishing and amending appropriations), see RMG-100 Guide to appropriations.

Appropriation - disclosure

Commencing for the 2025–26 reporting period onwards, disclosure related to breaches of section 83 of the Constitution will be reported (including in the annual report) in line with the requirements of section 19 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) instead of within the financial statements. Disclosures will remain subject to review by the Australian National Audit Office including as related to entity financial statements.

Payments to corporate Commonwealth entities 

Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) section 42 – Payments to corporate Commonwealth entities

This section of the FRR sets out reporting and disclosure requirements for appropriations where they are received by NCEs on behalf of, and to be paid to, CCEs.

NCEs (typically portfolio departments) may receive appropriations for payment to CCEs in annual Appropriation Acts or other Acts as special appropriations (not including amounts paid to CCEs under other arrangements, such as contractual arrangements).

Upon receipt of a payment from an NCE, a CCE is to recognise the amount as ‘revenue from government’, unless the funding is in the nature of an equity injection based on the appropriation purpose.
A CCE should not recognise a receivable unless that entity has a statutory right to receive the full amount of the appropriation. This statutory right is usually set out in the CCE’s enabling legislation and states that the CCE is to be paid amounts appropriated by the Parliament, or in relation to certain activities administered by the CCE on behalf of the Commonwealth, for example, amounts relating to levies or fees collected on behalf of the Commonwealth.
Where a CCE has a statutory right to receive an appropriation payment from an NCE, before that payment is received, the CCE is to recognise the amount as ‘receivable from government’ at the time it becomes legally entitled to that amount.

Equity injections paid to a CCE are recognised as ‘contributions by owners’, in accordance Australian Accounting Standards Board (AASB) 1004 Contributions and AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities. For more information, see RMG-123 Designating transfers of assets and liabilities as 'contributions by owners' (equity).

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