Cabinet has agreed to new performance reporting requirements for funds administered by public service departments and other Executive branch entities. The rules aim to lift the quality of information on how public money delivers results.
The Treasury published the guidance on 5 June 2026. It follows a Cabinet decision to standardise reporting on funds run by departments.
Departments must now provide clearer details on fund objectives, performance measures, and outcomes achieved. The change responds to longstanding gaps identified by the Auditor-General.
New Zealand's public sector reporting has moved from output measures alone toward outcome-focused information. PBE FRS 48, effective since 2022, requires entities to explain purpose, intended results, and actual performance.
Legislative and Guidance Framework
Treasury Circular 2023/09 and updated guidance support this shift. The new fund-specific rules build on the Public Finance Act 1989 and Crown Entities Act 2004.
The 2025 Treasury report T2024/2301 on grants and funds highlighted the need for stricter monitoring. It noted the Government forecasts about $21 billion in operating and capital spending on grants and funds over the forecast period.
Better reporting will help identify underperforming funds. This supports efforts to manage the operating balance before gains and losses and keep debt-to-GDP sustainable.
The Auditor-General has stressed that strong performance data lets Parliament and the public judge whether spending achieves intended results. Inconsistent reporting has limited that scrutiny in the past.
Implementation and Scope
Departments administering Votes in health, education, and social development will apply the requirements first. Annual reports and end-of-year performance information must reflect the new standards.
Implementation will integrate into existing cycles. Departments will use intervention logic to link activities to outcomes.
Over time the rules should improve accountability. They form part of the Fiscal Sustainability Programme and align with wellbeing expectations in agency planning.
Fiscal Discipline and Resource Allocation
Ministers and officials can use the enhanced data to reallocate resources from low-performing areas. This strengthens fiscal discipline without new spending.
The guidance includes a requirements document and supporting materials. Departments should review the materials ahead of the next reporting round.
