What are delivery vehicles?
Delivery vehicles refer to management and governance structures the Government establishes to deliver investments. Delivery vehicles complement investment instruments, which determine the Government’s financing approach of investments. Different combinations of delivery vehicles and investment instruments offer varying degrees of Government control and exposure to both project and financial risks.
The appropriate delivery vehicle will be informed by the objective of the investment proposal and resultant asset. Exhibit 1 below provides a table of the most common delivery vehicles to achieve particular objectives, and provides a link to detailed resources on each option.
Exhibit 1: Detailed information available to inform selection of Delivery Vehicles
Commonwealth Legal and Governance Structures
Different types of legal and governance structures are utilised to implement Government policies, deliver services and achieve policy objectives. The Commonwealth Governance Structures Policy (Governance Policy) supports determining the fit-for-purpose governance structure for new government activities. Further information on the mandatory requirements of the Governance Policy can be found on the Finance website. The government uses a range of governance structures to deliver government activities.
For example, the following 3 types of governance structures are subject to the PGPA Act and are categorised as primary bodies when applying the Governance Policy.
The Flipchart of PGPA Act Commonwealth entities and companies (PGPA Flipchart) lists each Commonwealth entity and company by portfolio. Further guidance on Commonwealth bodies is available in the Commonwealth Governance Structures Policy and Types of Australian Government Bodies.
All proposals to create a primary or secondary statutory body must be assessed against the mandatory requirements of the Governance Policy. Exhibit 2 below summarises some of the key aspects of each of these bodies.
Exhibit 2: Characteristics of delivery vehicles
Selection of a delivery vehicle should be determined by the nature, operations and the proposed level of Government involvement and must be assessed against the mandatory requirements of the Commonwealth Governance Structures Policy. The characteristics of a delivery vehicle should be considered when determining the appropriate vehicle.
