Appendix 2A Legislative framework of asset management in Victoria

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• Acts of Parliament;

• Regulations made under Acts of Parliament;

• Directions of Ministers authorised under Acts or Regulations; and

• Policies and guidelines issued by statutory appointees under legislative authority.

The most significant of these are discussed below.

Financial Management Act 1994
This Act is geared to:

• improving the financial administration of the public sector;

• helping to make the public sector more accountable; and

• providing for annual reporting to the Parliament by public sector bodies.

It describes the ways in which funds are allocated to departments for expenditure on goods and services. It also authorises relevant Ministers to transfer funds allocated for one item of recurrent expenditure to another for that year.

The Act established the Victorian Government Purchasing Board, which is authorised to make, amend and rescind policies, practices and guidelines for:

• the acquisition and supply of assets, inventory, works and services to departments; and

• the management and disposal of assets by departments.

The Financial Management Regulations issued under the Financial Management Act 1994 enable the Minister for Finance to issue Directions. These include those for accounting for non-current physical assets (ie assets, according to the definition used for ‘assets’ in this publication).

Land Act 1958
This Act focuses primarily on the framework for dealing with Crown land (for example, selling, leasing and use by the public and private sectors). Issues specifically addressed include:

• the conditions of use;
• the status of improvements; and
• the legal responsibilities of the Crown and lessees.

Crown Land (Reserves) Act 1978
This Act provides for the management of Crown land that has been reserved for various purposes. It sets out the ways by which powers are delegated to the committees set up to administer reserved land, and defines the extent of their day-to-day control.

Building Act 1993
This Act sets standards for the construction of new buildings and for the maintenance of existing buildings. It includes provisions to protect the safety and health of building users, and cost-effective construction is encouraged.

The public sector is exempted from some provisions relating to compliance.

Under the Act, the Minister for Finance may also issue guidelines to promote better building standards across the public sector.

Project Development and Construction Management Act 1994
This Act repeals the Public Lands and Works Act 1964. Its purpose is to facilitate the delivery of nominated major projects in which the Government is involved, and to establish new arrangements for managing public works.

The new arrangements provide for Ministers and entities to undertake and be accountable for public works in their respective portfolios.

The Act also establishes the Secretary of the Department of Planning and Development as a body corporate, which enables the Department to act as a facilitating agency under the Act’s project development provisions. It also allows for the Commercial Services Group of the Office of Building to provide construction consultancy services on a commercial basis.

The Minister responsible for building and construction has powers to set standards and issue Directions relating to public construction. The Minister has issued a Direction that affects the submission of tenders for building and construction works and for consultancy services. This Direction also specifies the use of pre-qualified (under government qualification) contractors and consultants.

The Act provides for Ministers and entities to undertake and be accountable for construction in their respective portfolio areas.

Occupational Health and Safety Act 1985
The objectives of this Act are to:

• secure the health, safety and welfare of persons at work;

• assist in securing safe and healthy work environments;

• eliminate, at the source, risks to the health, safety and welfare of persons at work; and

• provide for the involvement of employees, employers and associations representing employees and employers in formulating and implementing health and safety standards.

It sets out some of the important legal responsibilities of both the employer and the employee:

• Employers are required to provide and maintain a working environment that is safe and without risk to the health of employees, contractors and others.

• Employees are required to take care of their own health and safety and the health and safety of others.

The Act also imposes duties on managers responsible for buildings to ensure that persons are not exposed to health and safety risks while undertaking their business.

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