Australia PGPA Finance Minister Delegations to Accountable Authorities and the Finance Secretary NCE-S1-P6-scope: Indemnity, guarantee and warranty limits and principles: never guarantee loan principal or interest, never indemnify expressly for civil or criminal penalties, and weigh whether risk sits with the party best placed to manage it and whether benefits outweigh risks

What does NCE-S1-P6-scope require?

Under the section 60 delegation, a delegate may grant indemnities, guarantees or warranties for the Commonwealth only within the categories the directions set out. A guarantee of repayment of loan principal or interest is never allowed, nor is an indemnity that expressly covers another party's civil or criminal penalties. Before using the power the delegate must weigh two policy principles: risk should rest with whichever party can best manage it, and the benefit to the Commonwealth must exceed the risk taken on. The delegate may subdelegate the power. The Finance Secretary delegation contains the same directions (3.1 and 3.2).