Standing Directions 2018

Summary

The Standing Directions 2018 are the primary instrument through which the Minister for Finance specifies how departments and public bodies must manage their finances, assets, risks, and procurement. They are issued under section 8 of the Financial Management Act 1994.

Current version: Incorporating revisions to 17 September 2025. Originally commenced 1 July 2016, current edition issued 11 October 2018. CC BY 4.0 licensed.

Three-Tier Instrument Structure

Order of Precedence (Direction 1.7)

1. Financial Management Act 1994
2. Financial Management Regulations 2014
3. These Standing Directions
4. Financial Reporting Directions
5. Instructions

Where conflict exists, the higher instrument prevails. Where conflict exists with specific legislation affecting an Agency, the specific legislation prevails.

Application (Direction 1.2)

Applies to: All Agencies (Public Bodies and Departments as defined in FMA s3).

Completely exempt (SD 1.2.1): - School councils (Education and Training Reform Act 2006) - Incorporated committees of management (unless listed in Instruction 1.2(b)) - Class B cemetery trusts (Cemeteries and Crematoria Act 2003) - VicSES registered units - CFA volunteer brigades

Partially exempt (SD 1.2.2): - Universities — exempt from Directions 3.7.2.1 and 3.7.2.2 (banking SPC arrangements)

Independent Offices, CSV, JCV, Judicial Commission: - Subject to SDs but with differential application via Direction 1.6 definitions - Responsible Minister, Responsible Body, and Accountable Officer are the same person - Not "Portfolio Agencies"

Exemption mechanism (SD 1.5): Minister for Finance may exempt in writing. Must apply through CFO and DTF Financial Assets and Liabilities Group. DTF Deputy Secretary can also exempt from Instructions.

Full Structure

Chapter 1: Purpose and Application

Chapter 2: Roles and Responsibilities

Chapter 3: Governance

Chapter 4: Delivering Services

Chapter 5: Compliance and Reporting

Key Relationships Diagram

FMA s8
  └── Standing Directions 2018 (Minister for Finance)
        │
        ├── Ch 1: Purpose & Application (scope, exemptions, definitions)
        ├── Ch 2: Roles & Responsibilities (Resp Body, AO, CFO, delegations)
        │
        ├── Ch 3: Governance
        │     ├── 3.1 Effective financial governance
        │     ├── 3.2 Oversight (Audit Committee + Internal Audit)
        │     ├── 3.3 Financial authorisations ─── procurement delegation limits
        │     ├── 3.4 Internal control system
        │     ├── 3.5 Fraud, Corruption & Other Losses ─── IBAC Act
        │     ├── 3.6 Purchasing cards
        │     ├── 3.7 Managing risk ─── VGRMF + Central Banking System
        │     ├── 3.8 Pricing ─── Pricing for Value Guide
        │     └── 3.9 Managing financial information
        │
        ├── Ch 4: Delivering Services
        │     ├── 4.1 Planning and managing performance
        │     ├── 4.2.1 PROCUREMENT ─── VGPB supply policies (s54L)
        │     │         ├── 5 supply policies (>$1M)
        │     │         ├── 21 overlay policies
        │     │         ├── Local Jobs First Act
        │     │         └── Social Procurement Framework
        │     ├── 4.2.2 GRANTS ─── Investment Principles + Sponsorship Policy
        │     ├── 4.2.3 ASSETS ─── AMAF (41 mandatory requirements)
        │     ├── 4.2.4 CONSTRUCTION ─── PDCMA Ministerial Directions
        │     └── 4.2.5 LANDHOLDING ─── Landholding Policy (new Oct 2025)
        │
        └── Ch 5: Compliance & Reporting
              ├── 5.1 Compliance framework + annual attestation
              ├── 5.2 Annual reporting (financial statements + report of operations)
              └── 5.3 External reporting to DTF

Key Definitions (Direction 1.6)

Revision History

Supporting Documents