GTE governance

GTE Reform aims to standardise governance and accountability and strengthen oversight of GTEs.

GTE Reform addresses recommendations made by the Special Inquiry into Government Projects and Programs and the Service Priority Review that highlighted the importance of a clear relationship between GTEs and Government to ensure well-informed decision-making and cohesive long-term planning across Government.

Treasury’s Governance and Enterprise Resourcing Directorate, through stakeholder consultation, has developed and implemented the GTE Act to strengthen GTEs’ connection with the Western Australian Government.

The GTE Act has been introduced to consolidate the governance requirements of GTEs which are presently contained in multiple instruments, while maintaining appropriate flexibility for practices to adapt to industry, market and Government policy changes over time.

The GTE Act provides GTEs with greater clarity on their relationship with Government, and consolidates and updates the governance, strategic planning, and financial management provisions in the Establishing Acts of the in-scope GTEs. 

The GTE Act reflects the principles of the corporatised model established for GTEs more than two decades ago and acknowledges the skills and expertise that GTE Board Directors bring in managing the strategic direction of GTEs. As such, it does not follow a prescriptive approach to governance and does not mandate how GTEs undertake their day-to-day business activities.

In Western Australia there are 27 entities that might be considered possible GTEs, of which 12 are included as in-scope GTEs under the GTE Act. The following GTEs were selected because of their strong commercial focus, consistent legislation and their significant impact on State finances.

Energy corporations

• Horizon Power
• Synergy
• Western Power

Water corporations

• Aqwest
• Busselton Water
• Water Corporation

Port authorities

• Fremantle Port Authority
• Kimberley Ports Authority
• Mid West Ports Authority
• Pilbara Ports Authority
• Southern Ports Authority

Other

• DevelopmentWA

The second tranche of GTEs intended to be transitioned into the GTE framework are:

• Forest Products Commission
• Gold Corporation
• Insurance Commission of Western Australia
• Western Australian Treasury Corporation

The Government Trading Enterprises Bill 2022 (GTE Bill) passed in the Legislative Assembly (lower house) and the Legislative Council (upper house) in March-June 2023.

The GTE Bill received Royal Assent on 22 June 2023 and is now called the Government Trading Enterprises Act 2023 (GTE Act).

Part 1 of the GTE Act commences on Royal Assent, while the remaining Parts in the GTE Act commence on proclamation by the Governor, which is 1 July 2023.

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