The Strategic Asset Management Framework (SAMF) provides policies and guidelines to improve asset investment planning and management across the State public sector. SAMF facilitates quality advice and decision-making within agencies, including the development and review of investment proposals to the Government.
In 2005, a previous version of the SAMF guidance received Cabinet endorsement and was reinforced by a Circular from the Public Sector Commissioner. At that time, the SAMF mandate largely applied to general government agencies.
In 2014, Cabinet approved a revised SAMF version, including new policies for improved land acquisition planning and the successful delivery of fast-tracked asset investment proposals. Cabinet also required that all State Government agencies apply the SAMF guidance, including Government Trading Enterprises (GTEs).
Treasury is the custodian of the SAMF policies on behalf of the State Government. Treasury ensures that the guidance is updated to reflect the latest Cabinet decisions and best practice by lead agencies in Western Australia and other jurisdictions. Treasury also applies the SAMF policies and standards when reviewing an agency’s strategic asset plan and business cases each year in preparation for Budget discussions.
The importance of the SAMF policies is reflected in the Western Australian Cabinet Handbook which indicates that the financial implications of Cabinet submissions must be evaluated by Treasury before being lodged for Cabinet consideration. If the submission involves asset investment, Treasury must be consulted on whether the proposal complies with the SAMF. The Handbook also indicates that the Cabinet Secretariat may not accept a submission without this verification.
In addition, as agreed by Cabinet, Treasury provides an annual progress report to the Expenditure Review Committee on SAMF implementation by agencies. As part of its Annual Report, Treasury also reviews the extent of SAMF compliance achieved by the agencies that together account for 90 per cent of the State’s Asset Investment Program.
Successful agencies recognise that SAMF application enables strong benefits for the Western Australian community and for the agency as a business, including:
To support Cabinet consideration of the revised SAMF guidance, Treasury reviewed the 2005 policies and developed new exposure drafts in consultation with general government agencies and GTEs. Agencies provided feedback on the drafts while developing their strategic asset plans and business cases in preparation for Budget.
Based on the consultation with agencies, the following changes were made to the SAMF guidance:
Given the changes to the SAMF guidance, the hard copy manual entitled ‘Strategic Asset Management Framework for Western Australian Public Sector Agencies’ (August 2005) should no longer be used. Instead, future policy updates and improvements will be reflected in revisions to the guidance contained on this site.
In August 2016, Cabinet approved a new SAMF policy on the Government’s Land Asset Sales Program (LASP). The policy explains the LASP principles, objectives and governance arrangements for the sale of surplus and under-utilised State-owned land. Inclusion of the LASP guidance in the SAMF reflects the importance of the LASP program as a key element of the Government’s fiscal management strategy.
In August 2016, Treasury and the Department of Lands released new financial guidelines to assist agencies with LASP-related budgeting and accounting issues. The guidelines also outline how Treasury, the Department of Lands and agencies track the reduction of State debt through the receipt of net sale proceeds from land sales.
Treasury strongly encourages suggestions, questions, ideas or requests for discussions from agencies on the SAMF policies and their application.
In the first instance, agencies should contact the relevant Director, manager or analyst in Treasury on the specifics of SAMF application in their context.
For advice on the SAMF policy content and intent, please contact:
Manager SAMF ImplementationInfrastructure and Finance DivisionDepartment of TreasuryEmail: [email protected]