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The Commonwealth Governance Structures Policy (Governance Policy) helps decision-makers determine the most fit-for-purpose governance structure to undertake a new government activity.

The Department of Finance assists entities by advising on the Governance Policy and providing sign-off on governance assessments.

The Governance Policy covers the guiding principles, as well as governance assessments which includes the preliminary three-stage test, governance factors and options analysis.

The Governance Policy requires a completed governance assessment to provide decision-makers with consistent information on governance structures.

Policy authority is agreement from Government to implement a policy, such as creating a new Commonwealth entity.

A completed governance assessment must be included with the proposal when seeking agreement to create a new Commonwealth entity.

Cabinet Submissions are proposals that seek agreement from the Cabinet to take a particular course of action. Submissions must be sponsored by the Cabinet minister with portfolio responsibility.

A proposal to create a new Commonwealth entity must be approved by either the Cabinet or the Prime Minister.

Legislation is required to establish a new Commonwealth entity. Legislation can be an Act, Rule or Regulation. Different Parliamentary processes apply for different types of legislation.

Policy authority (government approval) is required before legislation establishing a new Commonwealth entity can be introduced or tabled in Parliament.

A new Commonwealth entity will either be introduced for Parliamentary consideration to become an Act or tabled as a new listing in the PGPA Rule.

The new Commonwealth entity will be legally established on the date specified in the Act or Rule. This happens after the Act passes Parliament and receives Royal Assent or registration by the Office of Parliamentary Counsel.