This page is about borrowing by Commonwealth entities. It is relevant to officials of non-corporate and corporate Commonwealth entities.
Borrowing, including credit cards or credit vouchers, must be expressly authorised by legislation.
RMG-417 Supplier Pay On-Time or Pay Interest Policy provides additional guidance and is available under Tools and templates.
Non-corporate Commonwealth entities
- The Finance Minister can enter into borrowing agreements on behalf of the Commonwealth.
- Agreements must require the repayment of amounts within 90 days.
- The Finance Minister has delegated this power to accountable authorities in relation to agreements for the issue and use of credit cards or credit vouchers.
Corporate Commonwealth entities
- Corporate Commonwealth entities can only enter into borrowing agreements (including obtaining credit cards or credit vouchers) if:
- an Act expressly authorises it, such as their enabling legislation
- the Finance Minister authorises the borrowing in writing, or
- the PGPA Rule authorises the borrowing.
- The PGPA Rule authorises borrowing for credit cards or credit vouchers, provided the agreement require repayment within 90 days.
- Each credit card and credit voucher is not a separate borrowing agreement. An accountable authority, delegate/or authorised official will enter into a single overarching borrowing agreement for each form of credit card or credit voucher.