RMG-124 has been refreshed to align the guide with the current Budget Process Operational Rules, RMG‑500 Commonwealth Property Management Framework and other guidance. The update also includes enhanced illustrative journals for all types of capital expenditure, aiming to better educate entities on the necessity of completing Capital Management Plans (CMP template), and improve the readability of the guide. For any queries relating to these updates, please contact Budget Framework.
RMGs are guidance documents. The purpose of an RMG is to support PGPA Act entities and companies in meeting the requirements of the PGPA framework. As guides, RMGs explain the legislation and policy requirements in plain English. RMGs support accountable authorities and officials to apply the intent of the framework. It is an official’s responsibility to ensure that Finance guidance is monitored regularly for updates, including changes in policy/requirements.
Audience
This guide will assist those officials in Commonwealth entities (excluding Government Business Enterprises (GBEs)) with responsibility for the planning, management and reporting of capital or non-current asset funding.
Key points
Capital expenditure is the purchase of non-current assets necessary for Commonwealth entities to achieve their objectives and for their operations. Capital funding is used to meet the costs associated with the replacement of assets, capitalised maintenance (to continue using the asset), make-good costs and other asset costs that can be capitalised.
All General Government Sector (GGS) entities, except GBEs, which have separate reporting requirements, are required to prepare a capital management plan (CMP) and are encouraged to prepare and maintain a property capital expenditure forecast (PCEF).
This guide:
- outlines the rules and requirements for the management and reporting of capital or non-current asset funding, and
- provides information on how to prepare a CMP and a PCEF.
Resources
Related resources including the following tools, links to legislation, glossary terms, publications, and relevant sections of the PGPA Act and Rule are located in the right-hand menu.
- Step-by-step guide for creating Forward Estimate Year 3 DCB, ACB and/or CDAB in CBMS
- Capital Management Plan Checklist
- Examples of Journals used for updating capital expenditure estimates in CBMS
Various How to guides are available from the Central Budget Management System (CBMS) Guidance and Resources:
- Reclassification of departmental operating and departmental capital budget appropriations
- Movement of funds
- Capital budget statements adjustments.
