How to ask the Finance Minister to approve an indemnity?
If an indemnity falls beyond the scope of the Finance Minister's Delegation, then the non-corporate Commonwealth entity’s (NCE) responsible Minister can write to the Finance Minister to seek approval.
Before writing to the Finance Minister, entities should contact their Budget Agency Advice Unit (AAU) in Finance in the first instance.
The letter should:
- identify why the accountable authority of the entity cannot grant the indemnity (for example, the granting of the indemnity involving a contingent liability falls outside the scope of the directions of the Finance Minister’s delegation to accountable authorities)
- contain the Indemnity grant request form (available in the right-hand menu under Tools and templates), and
- provide reasons why the indemnity is needed.
Where the proposed arrangement will constitute a new policy it must be considered in accordance with the Budget process. To assist the Finance Minister’s decision, officials can provide copies of any:
legal advice it has received on the matter
risk assessments
draft agreements, contracts or other relevant documents
What happens if the Finance Minister agrees to grant the indemnity?
The Finance Minister will reply, by letter, to the NCE’s responsible Minister. If the Finance Minister agrees to grant the indemnity, the letter will provide a delegation that enables the accountable authority of the relevant entity, or the accountable authority’s delegate, to enter the arrangement with the specific indemnity.
