Note 34: Related Parties
Related party relationships are a normal feature of commerce. Therefore, the Government will transact with related parties as a matter of course.
Related parties of the Government include:
- Ministers of the Crown, who are key management personnel because they have authority and responsibility for planning, directing and controlling the activities of the Government, directly or indirectly
- Ministers' spouses, children and dependants who are close family members of key management personnel, and
- Private-sector entities owned or jointly controlled by Ministers, their spouses, children and dependants.
Given the breadth of Government activities these related parties transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment of taxes and user charges (such as purchase of electricity), and the receipt of entitlements and services (such as access to education). These transactions have not been separately disclosed in this note.
Other transactions with these related parties can include the employment of Ministers' spouses, children and dependants by a Government entity, including ministerial offices, departments, Crown entities and State-owned enterprises, receipt of grants by these family members from a Government entity, or the purchase or sale of goods and services between Ministers, their spouses, children and dependants, or private-sector entities they own or jointly control, and a Government entity. These transactions have not been separately disclosed in this note, unless they have taken place within a Minister’s portfolio.
Taking the above paragraphs into account, no related party transactions took place during the year within a Minister's portfolio.
