Required elements
There are 5 required elements that must be included in the corporate plan of each Commonwealth entity (outlined in section 16E(2) of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule)). These are:
The corporate plan must include an introductory statement that:
- states that the plan has been prepared for paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The statement may also refer to any other legislation applicable to the preparation of the plan;
- specifies the reporting period for which the plan is prepared (this would usually be the first reporting period of the minimum 4-year period covered by the plan); and,
- specifies the reporting periods covered by the plan (this would usually be the minimum 4-year period covered by the plan; for example, 2025–26 to 2028–29).
An example introductory statement for Commonwealth entities is set out below.
Example Introduction
I/We, as the accountable authority of [entity name], present the [year for which the plan is prepared] corporate plan, which covers the periods of [minimum 4-year period], as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013 and [reference to sections of other applicable legislation].
The corporate plan must include the purposes of the entity. The purposes of an entity include the objectives, functions or role of the entity (section 8 of the PGPA Act).
It is considered better practice to outline an entity's objectives, functions or role within this section of the plan.
When developing purpose statements, entities are encouraged to consider a variety of sources, such as:
Portfolio Budget Statements (outcomes and programs)
any enabling or other relevant legislation
administrative arrangement orders
Statements of Expectation
other sources (for example, national partnership agreements)
any key government priorities and objectives (including statements made under section 34 of the PGPA Act).
Purpose statements are most informative when they are clear and succinct, clearly labelled as the entity’s purposes, and stated upfront in the corporate plan. In this way, an entity’s purposes can be used as the anchor point for the structure of the plan.
Well-expressed purpose statements make it clear why the entity exists, who benefits from an entity’s key activities and how they benefit.
As entities must report their performance in achieving their purposes in their annual performance statements, entities should ensure that their purpose statement is sufficiently specific to allow for the meaningful measurement and assessment of its performance against its purposes through appropriate performance measures.
The purpose statement should be relevant for the medium to long term rather than reflect a number of short-term goals.
A vision and/or mission statement can be included to support the purpose statement, in recognition that the corporate plan will often be a document that ‘speaks’ to both internal and external stakeholders. Vision and/or mission statements should not be included as a substitute for a clear statement of an entity’s purposes.
The corporate plan must identify the key activities that an entity will undertake during the entire period of the corporate plan in order to achieve the purposes of the entity.
A key activity is a distinct, significant program or area of work undertaken by an entity to assist in achieving the entity’s purposes.
The corporate plan does not need to describe everything an entity does to deliver its purposes. The focus of the corporate plan is on those activities that make a significant contribution to achieving the purposes of the entity.
When determining what to express as key activities in the corporate plan, consideration should be given to the requirement for entities who produce Portfolio Budget Statements to state the key activities (as expressed in the corporate plan) that programs relate to, including any of the variety of sources referred to above.
Key priorities and objectives of the Australian Government
If the Australian Government publishes a statement setting out its key priorities and objectives under section 34 of the PGPA Act, the accountable authority of the entity is required to consider if these relate to the purposes of the entity (section 35(3) of the PGPA Act). If there is a relationship, the accountable authority must set out in the corporate plan how the activities of the entity contribute to achieving the priorities and objectives.
It is noted that to date, governments have not published a statement of priorities and objectives under section 34 of the PGPA Act.
The enabling legislation of a number of Commonwealth entities have provisions which preclude the application of priorities and objectives of section 34 of the PGPA Act. These entities would not be required to comply with section 35(3) of the PGPA Act if the government publishes a statement under section 34 of the Act.
Key activities are undertaken to achieve an entity's purpose within an operating context.
There are 5 elements that must be included in the discussion of an entity’s operating context:
the environment in which the entity will operate
the capability required by the entity to undertake its key activities and to achieve its purposes
the risk oversight and management systems, and the key risks the entity will manage and how those risks will be managed
how an entity cooperates with others to achieve its purposes
how any subsidiaries will contribute to achieving the entity's purposes
Corporate plans must include a discussion of these 5 elements covering the entire period of the plan. This enables entities to recognise the potential for change in the operating context over the period of the plan, and provide a forward-looking discussion of these elements.
The 5 elements of the operating context should provide the reader with a clear understanding of how, individually and collectively, these elements contribute to an entity achieving its purposes. Plans which do so align with better practice.
Environment
The corporate plan must include a discussion of the environment in which the entity will operate over the period covered by the plan.
In addressing this requirement, entities should include a discussion of the nature and characteristics of the environment in which the entity operates that may impact on the achievement of the entity’s purposes. This could include a discussion of various factors, such as:
- macroeconomic and microeconomic factors (such as global and regional economic conditions);
- the regulatory landscape (such as legislative factors, policy factors, or changes in regulatory regimes);
- technological factors (such as technological advances and automation);
- social factors (such as changes in the expectations and demographics of the population); or
- geographical considerations including remoteness and climatic conditions.
In discussing the environmental factors impacting the achievement of an entity’s purposes, entities could outline the main factors that are both in the control and beyond the control of the entity and the way the entity proposes to respond to these factors. In this way, a reader is better informed about the environmental factors that may impact the entity’s performance.
Capability
The corporate plan must address the capability the entity requires to undertake key activities to achieve its purposes. This includes the strategies and plans the entity will implement over the period of the plan attract, maintain and grow its capability.
The discussion of capability would normally include (but is not limited to):
- workforce capability planning
- infrastructure requirements
- ICT requirements.
Workforce capability planning
A discussion of workforce capability could address issues such as:
- high-level trends and developments that are affecting or may affect an entity's workforce
- workforce capability requirements and gaps
- future workforce capability requirements,
- APS strategies, frameworks and guidance to address key workforce capability needs.
More information on workforce capability resources are available from the Australian Public Service Commission.
The APS Strategic Commissioning Framework is part of the government’s commitment to reduce inappropriate outsourcing and strengthen the capability of the Australian Public Service (APS). Under the framework:
- entities must bring core work in-house over time, by setting annual targets
- entities are asked to summarise their annual targets in their corporate plans.
Visit the Australian Public Service Commission's Targets, monitoring and accountability.
The Framework applies to entities who employ staff under the Public Service Act 1999.
Infrastructure capability
A discussion of an entity’s infrastructure capability could cover:
- significant investments that are expected to be made over the period of the plan
- how these are expected to assist the entity in achieving its purposes.
ICT capability
A discussion of an entity’s ICT capability could:
- Briefly outline the technology strategy to support future business requirements. This may include key objectives and focus areas for development in ICT capability over the short, medium and long terms and consideration of the drivers for change.
- Explain how their technology strategy aligns with broader trends in technological development (including from a whole-of-government perspective and alignment with government policy on technology use).
- Identify proposed improvements in ICT capability that are expected to be achieved through cooperation, co-investment and/or shared services between entities.
Better practice capability sections go beyond identifying these strategies and plans, and take an integrated approach to outlining how the entity will develop capability according to its purposes, key activities and evolving operating context.
Risk
Accountable authorities of all Commonwealth entities must establish and maintain appropriate systems of risk oversight, management and internal control for the entity (section 16 of the PGPA Act).
The corporate plan must include a summary of the risk oversight and management systems of the entity, and the key risks that the entity will manage and how those risks will be managed.
The Commonwealth Risk Management Policy applies to non-corporate Commonwealth entities. Corporate Commonwealth entities are not required to comply with the policy, although they may review and align their risk management frameworks and systems with the policy as a matter of good practice.
Entities should discuss their current systems of risk oversight and management and any plans the entity may have to improve these systems. Sufficient details should be provided to enable a reader to understand and be confident that an entity has established, and has arrangements for maintaining, an appropriate system of risk oversight and management that will support an entity achieving its purposes.
In addition to describing the entity’s risk oversight and management systems, entities must also identify the entity’s key risks and how those risks will be managed.
For example, key risks may include:
- loss of skills and capability required for specific key activities
- equipment failure/damage that impacts service delivery
- service delivery outages that could significantly impact customer confidence and an entity’s reputation
- damage to systems or infrastructure caused by external parties
- visibility of legislative or policy changes that may impact an entity's operating context.
Entities can meet the requirement to report how key risks are managed by outlining the general management strategies and controls they have in place, or the strategies and control in place for each of the entity’s key risks. Entities could also discuss any risks that could emerge over the period of the plan and the entity’s approach to monitoring these emerging risks.
Better practice plans include an illustration of the current systems of risk oversight and management such as a risk management framework, and details on how each key risk will be managed individually, rather than collectively.
Cooperation
Corporate plans must include a discussion of any organisations or bodies with which the entity cooperates that make a significant contribution to achieving the entity’s purposes.
This requirement aligns with section 17 of the PGPA Act which requires accountable authorities of Commonwealth entities to encourage cooperation with others to achieve common objectives, where practicable. It also aligns with the requirement for entities who produce Portfolio Budget Statements to report links to the programs of other entities which assist them achieve their Outcomes (that is, Linked programs).
Cooperation across the Commonwealth, across jurisdictions, internationally and with the non-government sector takes many forms and can be described in a number of ways, such as partnering, relationships and collaborating.
It is not necessary or intended that an entity would detail all of its cooperative relationships in the corporate plan. Entities should focus on the cooperation that makes a significant or substantial contribution to achieving the entity's purposes.
Possible indicators that a relationship with another organisation or body is significant in nature includes where:
- a cross-organisational agreement is in place (such as a Memorandum of Understanding or Service Delivery Obligations) to outline the roles, responsibilities and deliverables of each party
- international agreements or conventions are in place
- there is a high frequency of interaction
- joint governance arrangements are established to govern cooperative activities, such as steering committees or other formal governance arrangements
- the organisation or body has a significant degree of influence on the performance of the entity in achieving its purposes
- the relationship is long-standing and key deliverables are reviewed.
The discussion on cooperation is not intended to include details of commercial arrangements that entities have with service providers or other organisations to assist in the delivery of services or assist in achieving their purposes and key activities. The requirement also does not encompass arrangements that can be broadly characterised as customer or client relationships that involve the provision of services or funding to organisations or individuals.
An entity’s discussion of cooperation could also refer to the group of organisations or bodies that the entity cooperates with, where the cooperation that assists in achieving an entity’s purposes is best characterised as being collective in nature. This may be appropriate, for instance, where an entity cooperates with state and territory, and local governments, or a number of similar stakeholders within a particular industry.
A discussion of cooperation could reflect how any linked programs, as outlined in an entity's Portfolio Budget Statements, contribute to achieving the entity’s purposes. For example, an entity could expand on the information reported in its most recent Portfolio Budget Statements that identifies how the achievement of outcomes depends on contributions made by the programs delivered by other entities across the Commonwealth. For more information on reporting Linked programs in Portfolio Budget Statements, see RMG-129 Reporting performance information in Portfolio Budget Statements.
Better practice plans include an illustration of the cooperation, and the accompanying text uses examples from each type of organisation or body to explain how that cooperation helps to achieve an entity's purposes.
Subsidiaries
If an entity has subsidiaries, the entity’s corporate plan must cover both the entity and its subsidiaries.
The corporate plan should provide sufficient information to enable a reader to understand how the subsidiaries are expected to contribute to the achievement of the entity’s purposes (for example, through linking the functions of the subsidiaries to the purposes of the entity).
There are some cases where a subsidiary no longer contributes to the achievement of the entity's purposes, for example where a subsidiary is dormant. In such cases this should be explained in the corporate plan.
The PGPA Act provides a definition of subsidiary that incorporates the concepts of control outlined in AASB 10 Consolidated Financial Statements and the Corporations Act 2001. To check if an entity has subsidiaries refer to the Australian Government Organisation Register (AGOR) and reference the ‘Other boards and structures’ section for the entity.
If an entity has subsidiaries, it is considered better practice to include additional details about each subsidiary, such as a description, the activities and jurisdiction.
If any entity has no subsidiaries, it is considered better practice to clearly state this in the plan. Entities may do so in the body of the plan or indicate this in a list of requirements.
The corporate plan must set out the details of how an entity’s performance in achieving its purposes will be measured and assessed through:
performance measures which meet the requirements of section 16EA of the PGPA Rule, and
targets for each performance measure where it is reasonably practicable to set a target.
The results of the entity’s performance in achieving it purposes are reported in the annual performance statements at the end of each reporting period. This includes an analysis of the factors that may have contributed to the results.
In contrast to the discussion of an entity’s operating context for the entire period of the plan, the corporate plan must include performance measures and targets for each reporting period covered by the plan (that is, at least 4 reporting periods).
To achieve this, entities typically use a table that includes the four reporting periods to indicate which performance measures and any targets relate to each of the reporting periods covered by the plan.
It is a matter for each entity to determine how it structures and presents the planned performance information in the corporate plan.
Better practice plans include a table outlining changes to performance information, particularly where numerous changes have been made. Entities should consider outlining any related changes, including changes to key activities and performance measure targets or methodologies.
The Better practice examples illustrate various ways entities choose to present performance information.
Performance measures
Entities must develop performance measures that provide an understanding of how the achievement of their purposes will be measured and assessed. The performance measures must meet the requirements of section 16EA of the PGPA Rule.
This requires that, in the context of the entity’s purposes or key activities, the performance measures:
- relate directly to one or more of those purposes or key activities; and
- use sources of information and methodologies that are reliable and verifiable; and
- provide an unbiased basis for the measurement and assessment of the entity’s performance; and
- where reasonably practicable, comprise a mix of qualitative and quantitative measures; and
- include measures of the entity’s outputs, efficiency and effectiveness if those things are appropriate measures of the entity’s performance; and
- provide basis for an assessment of the entity’s performance over time.
These requirements are discussed further in RMG-131 Developing performance measures.
Targets
These requirements are outlined in detail on Targets where reasonably practicable in RMG-131 Developing performance measures.
Structure of corporate plans
There is no set way to lay out the required elements in the corporate plan. Corporate plan requirements are designed to allow an entity to present information in a way that best informs its audience of how it intends to achieve its purposes. Entities also have discretion to include any additional information that assists in demonstrating how the entity intends to achieve its purposes.
In doing this, a balance between conciseness and providing sufficient information needs to be struck.
Entities have the flexibility to structure their corporate plan in a way that provides the best approach to communicating the entity’s purposes and how it proposes to achieve these over the period of the plan.
The majority of entities base the structure of the corporate plan on the order of the required elements in structure of the PGPA Rule. Well-structured plans start with the purposes and key activities and then outline their operating context (environment, capabilities, risk, cooperation and subsidiaries) with the performance information at the end so it is read in context.
Other entities structure their corporate plans in a way that addresses the requirements under each of their purposes of key activities. This structure can assist a reader to understand how these elements, collectively, help in achieving the entity's purposes.
Entities are encouraged to make a clear use of headings throughout their corporate plan. The use of headings can assist a reader to navigate from one element to another, particularly when one or more elements of the plan is discussed in multiple places throughout the plan. The use of headings can also assist in demonstrating adherence with the requirements of the PGPA Rule. This practice may also assist a reader to navigate between the plans of a number of entities, assisting with comparisons between entities.
Similar to the presentation of annual reports, entities could also include a list of the PGPA Act and Rule requirements in their corporate plan.
Better practice plans include a list of requirements, and any other applicable legislative or policy requirements, to demonstrate that all corporate plan requirements have been met.
Performance measures in the corporate plan and Portfolio Budget Statements
The corporate plan is designed to be the primary planning document published by a Commonwealth entity. It provides detail of the key activities undertaken by the entity to achieve its purposes, operating context in which the key activities are undertaken and a full suite of performance measures which measure and assess progress in achieving the entities purposes. Most Commonwealth entities are required to publish a corporate plan.
Portfolio Budget Statements (PBS) are tabled in Parliament with the Appropriation Bills. The primary purpose of the PBS is to provide detail to Parliament on the proposed use of funding provided in the Budget at an Outcome and Program level and expected performance outcomes at the program level. Not all entities are required to produce a PBS, only those that receive funding through the Appropriation Acts or other appropriation sources such as Special Appropriations.
The Finance Secretary Direction on the provision of performance information in the Portfolio Budget Statements requires:
- the provision of at least one high level performance measure for each ongoing program
- the provision of the full suite of performance measures for the Program if it is a new Program or materially changed program resulting from a Budget measure.
A direct link between the corporate plan and the PBS is achieved through the Finance Secretary Direction requirement for an entity to state in the PBS which key activities as expressed in the corporate plan each program relates to.
While the Finance Secretary Direction does not set out the requirements for performance measures in the PBS, to maintain consistency with the corporate plan and ensure a clear read between documents, performance measures in the PBS should take account of the requirements of section 16EA of the PGPA Rule.
The performance measures included in the corporate plan and Portfolio Budget Statements (and any other Budget statements) are reconciled in the entity’s annual performance statements at the end of the reporting period.
Changes to performance measures since the PBS
Entities may reflect changes to their performance measures since the PBS, in their corresponding corporate plan. Changes to performance measures since the PBS typically reflect:
- changes to an entity’s operating environment since the PBS, such as machinery of government changes, with functions transferring in and/or out of their entity; or
- improvements to performance measures following a review of the appropriateness and meaningfulness of the measures since the PBS.
Any changes to performance measures since the publication of the PBS should be outlined in the corresponding corporate plan. The corporate plan should also include a statement that the performance measures in the plan will be measured and assessed in the corresponding annual performance statements.
Example text
Since our 2025–26 PBS, we have made changes to our performance measures. The details and rationale for each change are outlined [for example, below, under the relevant performance measures and/or in a table at Appendix 1]. The measurement and assessment of the performance measures outlined in our 2025–26 corporate plan will be published in our 2025–26 annual performance statements.
For more information on the PBS and developing performance measures, refer to RMG-129 Reporting performance information in Portfolio Budget Statements and RMG-131 Developing performance measures.
Record keeping
The PGPA Act requires accountable authorities of Commonwealth entities to keep records that properly record and explain the entity’s performance in achieving its purposes (section 37).
This could include:
- the rationale for the entity’s approach to the development of its suite of performance measures, including consideration given in the development of the measures to entity’s operating context, purposes or key activities. For example, it can explain:
- why certain types of performance measures are included in the entity’s performance framework and why targets have been set, may be changed or not be appropriate at a particular point in time
- the nature of an entity’s key activities, and why emphasis is given to certain types of activities.
- details of the data sources and methodologies to be used to measure the entity’s performance against each of its performance measures
- analysis of performance and targets achieved over time to adjust as needed
- the entity’s approach to reviewing performance measures over time.
The National Archives of Australia is responsible for the Information Management Standards, including the Australian Government Recordkeeping Metadata Standard.
