APS Conflict of Interest Management Framework: Better Practice Model

The Better Practice Model establishes tangible and practical requirements for managing conflict of interest across the APS.

The Model was developed in response to recommendation 14 of the APS Integrity Taskforce’s report Louder than Words: An integrity action plan and has been endorsed by the Secretaries Board and Chief Operating Officers’ Committee.

The Model recognises that the effective management of conflict of interest is fundamental to maintaining trust in the integrity of the APS. Taking steps to avoid, declare, and manage conflicts of interest provides assurance to the Australian community, the Government, and the Parliament that public servants will not prioritise their personal interests over their public and official obligations.

The Model supports the effective management of conflict of interest across the APS by providing operational guidance and practical information to enable agencies to implement conflict of interest processes and policy arrangements that are tailored to their needs, responsibilities, and risk profile.

All APS agencies are expected to adopt the Model as a core element of their efforts to strengthen their integrity framework. The Australian Public Service Commission does not require agencies to report on their compliance with the Model, but may consider an agency's maturity and capability against the framework as part of its evaluation or review functions.

The Better Practice Model sets out expected practice across three maturity tiers, and outlines policy settings for each:

Application

This Better Practice Model applies to all APS agencies in managing conflicts of interest relating to their employees (and contractors employed as staff). In implementing the Model to uphold integrity, agencies should meet minimum requirements or higher expectations, in the context of agency risk appetite and portfolio responsibilities, by establishing the following:

• Clear policy and process guidance that applies internally, including management of conflicts of interest arising in the context of previous employment, secondary (outside) employment and post-separation employment.
• Regular, scenario-based training and guidance for staff at all levels on how to identify, declare and, most importantly, manage and monitor conflicts of interest.
• Central recording of conflict declarations and management plans by agency employees, with monitoring and assurance processes in place.

Other Guidance

The Model is complemented by and integrates with other conflict of interest guidance:

• Managing Conflict of Interest and Confidentiality: Resource Management Guide 208 (Department of Finance) to support agencies and officials to manage conflicts of interest and confidentiality arrangements when engaging with the non-government sector, in accordance with their obligations under the Public Governance, Performance and Accountability Act 2013 framework
• Conflicts of Interest and Corrupt Conduct: A Guide for Public Officials 
  (National Anti-Corruption Commission) which offers practical advice to Commonwealth public officials on managing conflicts of interest to reduce the risk of corrupt conduct, as defined in the National Anti-Corruption Commission Act 2023.

Together, these three resources promote a unified, principles-based risk-assessment approach to conflict of interest management in the Commonwealth public sector, offering:

• consistent definitions and language
• a standard methodology for identifying and managing conflicts of interest.
• a framework for navigating complex or discretionary situations
• a structured basis for decision-making.

Key focus areas

In implementing the Model, agency policies, systems and processes should focus on:

• Consideration of conflicts of interest arising from:
  • Previous employment
  • Secondary (Outside) employment
  • Post-separation employment
  • High-conflict risk activities
  • Competing official duties
  • Other agency operations
• Declaration and management plan requirements for employees
  • identification of material personal interests
  • assessing risk of real or apparent conflicts between personal interests and public or official duties
  • conflict mitigation or management strategies
• Scenario-based training for employees
• Centralised recordkeeping
• Monitoring, reporting and other assurance activities
• Oversight responsibilities.

The APSC has developed a dedicated suite of guidance materials, templates and other resources to support the Model and enable its implementation. These supplementary resources are designed to minimise barriers to adoption of the Model and reduce duplication of effort across the APS, thereby maximising efficiencies and productivity.

Terminology

‘Activity-based conflict of interest’

Conflicts of interest relating to specific high-conflict risk activities undertaken by APS employees within an agency. Activity-based conflicts may arise from personal interests that have already been identified and declared by APS employees on a general or routine basis, or may arise in the specific context of the activity. Activity-based conflicts are specific to that activity and may not be related to an employee’s general duties.

Note – The Better Practice Model relates to general conflict of interest declarations and does not detail expectations for the management of activity-based conflicts. However, the principles outlined in this model are applicable across all activity-based conflict of interest considerations and processes.

Further information on specific activities, and relevant conflict of interest management and other integrity requirements which may apply, can be found in the following resources:

Procurement – Department of Finance Ethics and Probity in Procurement

Grants – Department of Finance guidance on Commonwealth grants including the Commonwealth Grant Rules and Principles

Contract management – Department of Finance guidance on Contract Management and the Ethical Conduct of Suppliers

Policy consultation with external entities – Department of Finance guidance on the Management Advisory Services Panel

Regulatory activity – Department of Finance guidance on Regulator Performance

Recruitment – Australian Public Service Commission’s Recruitment Guidelines and Factsheet: Managing conflict of interest in recruitment

Investigations – Australian Federal Police guidance on the Australian Government Investigations Standard and the Australian Public Service Commission’s Handling Misconduct - A human resource manager’s guide

‘Central recording’

Agencies are to keep centralised records of conflict of interest declarations and management plans in reliable ICT recordkeeping systems, either in dedicated applications or in manual formats (e.g. spreadsheets), that include:

• General and annual conflict of interest declarations for individual APS employees (including SES)
• Activity-based conflict declarations for individuals
• Agency conflicts with external entities, and
• Approved management plans.

The functionality available for centrally recorded conflicts of interest arrangements will differ across agencies—including what data can be captured, access levels, and monitoring and assurance or reporting capability—and will be dependent on the features and capability of the recording method (for example, the capability of existing or future IT solutions).

‘Personal conflict of interest’

A personal conflict of interest exists when a public official or other person has a personal interest, or another duty, that could affect or be affected by how the public official or person performs their public or official functions or duties.

A material personal interest can be financial or non-financial, and can include competing duties. To be ‘material’, a personal interest needs to be of a type that can sensibly give rise to a real or apparent conflict of interest. Examples may include family, friendship, financial interests, volunteer work, political affiliations/associations, previous employment or social relationships.

• A real conflict of interest exists where you have a personal interest or competing duty that could affect or be affected by the way you perform your public or official functions or duties.
• An apparent conflict of interest exists where a reasonable person might think that you have a personal interest, relationship or competing duty that could affect, or be affected by, the way you perform your public or official functions or duties, even though there is no real conflict of interest.

The appearance of a conflict can be just as damaging to public confidence in the integrity of the APS as an actual conflict.

‘Agency conflict of interest’

A conflict of interest that could call into question the independent decision-making of an agency (rather than an individual employee) due to a relationship with an external organisation or individual.

When determining whether an agency conflict of interest exists, agencies should consider whether:

• the agency is in a contractual relationship with the organisation
• the organisation has received or is likely to receive financial assistance from the Commonwealth
• the organisation's primary role is to lobby ministers or Government
• the organisation is regulated by the agency, or by another government agency
• engagement with the organisation would otherwise present a real or apparent conflict of interest
• the agency’s independent decision-making may be—or may reasonably be perceived to be—affected by the conflict of interest.

Agency conflicts of interest should be declared and mitigated as part of a general or activity-based conflict of interest declaration and management process. Where employees consider that there may be an agency conflict of interest, this should be discussed with the appropriate management.