Conflict of Interest policy and process

Contents

A conflict of interest policy sets out an agency’s declaration and management processes and education requirements in the context of its responsibilities, risk profile, and size. Employees should be able to read their agency’s policy and understand what a conflict of interest is, how to make a declaration, and how to put in place effective management strategies.

Agency policies should explain employees’ obligations under the APS Code of Conduct in the Public Service Act 1999 and their duties as officials under the Public Governance, Performance and Accountability Act 2013 in relation to conflict of interest. They should also explain that effective conflict of interest management can prevent corrupt conduct as defined in the National Anti-Corruption Commission Act 2023 . Policies should set out potential consequences for failing to meet these obligations. Policies must also include guidance about high-conflict risk areas of the APS employment ‘lifecycle’, such as previous employment, secondary (outside) employment and post-separation employment. They must also outline how employees with management responsibilities should assess risk and determine appropriate mitigation strategies with staff.

Minimum requirements

Declarations – All conflict of interest declarations must detail the type and extent of the interest being declared. The nature of the conflict must be evident from the detail provided. Declarations are centrally recorded in official agency recordkeeping systems.

  • APS and EL – Declarations are made at onboarding, and where there is a change in circumstances or a new conflict arises. New conflict of interest declarations are also required for all high-conflict risk activities. Consideration should be given to any agency conflicts identified in activity-based declarations (for example, an employee’s ordinary duties with respect to an existing supplier may give rise to an agency conflict during a procurement activity if the supplier is expected to participate). If the employee works in a high-conflict risk area on a day-to-day basis, such as a procurement team, a grants hub, or integrity team; or in an agency with a higher risk profile, such as a regulatory or an integrity agency, they may be required to complete annual declarations.
     
  • SES (and acting SES longer than 3 months) – Declarations are made at onboarding for substantive SES and when a period of acting in an SES role will exceed three months (including extensions). Substantive SES employees must complete annual conflict of interest declarations, and must complete additional declarations where there is a change in circumstance or a new conflict arises. New conflict of interest declarations are also required for all high-conflict risk activities (for example, when participating on a recruitment or procurement selection panel). Annual declarations can be confirmed and rolled over from year to year, if there has been no change in circumstances or interests. Consideration should be given to any agency conflicts identified in activity-based declarations.
     
  • All employees (SES and non-SES) with statutory or professional obligations – Declarations are made at onboarding and either annually or as required in accordance with relevant legislation or the rules which apply to those professions.

Management Plans – An employee’s direct manager or appropriate activity personnel (e.g. a selection panel chair) must be informed of any conflict of interest declaration and is responsible for deciding the appropriate management plan for the interest declared, in line with agency policies.

Decisions regarding management plans must be documented and explained, including when it is determined that no further action is needed. The direct manager, or appropriate activity personnel, must acknowledge that they have read and understood the declaration, and that they are satisfied with the management plan or the decision not to implement a management plan. Management plans should clearly outline the obligations and expectations of the employee making the declaration, and outline what they are required to do to avoid or mitigate the conflict.

When an employee moves between teams in the same agency, the employee should inform their new direct manager of any existing conflict of interest declarations and management plans.

All declarations and management plans for SES and staff with statutory/professional responsibilities must be reviewed annually. All reviews should assess the ongoing suitability of the management plan; and must be documented. The review must be stored in agency record keeping systems and linked to the original declaration.

Note – Where a conflict cannot be appropriately mitigated, reasonable steps must be taken to completely avoid the conflict of interest.

Previous employment (includes volunteer work, business ownership and contract work prior to APS employment) – Employees must identify any real or apparent conflicts of interest related to their previous employment (at least in the past 2 years) and complete a declaration and management plan as part of or in addition to onboarding processes. Direct managers must be aware of any conflicts of interest related to previous employment, and new managers must be informed when the employee changes roles. Staff should be prompted to consider renewing conflict of interest declarations when moving to new roles or duties within an agency.

Secondary (outside) employment (includes volunteer work, business ownership and contract work outside of the agency) – Employees must notify their supervisor of any secondary or outside employment. Where a conflict exists, or where an employee’s duties involve confidential, sensitive or classified information, a declaration and management plan must be submitted for supervisor approval. Consideration should be given to whether there are any conflicts of interest between the organisation of outside employment and the agency. Employees are responsible for advising their supervisor if their secondary employment ceases. Managers are responsible for working with employees to establish management plans as needed, and ensuring approved management plans are properly recorded in centralised agency recordkeeping systems.

Post-separation – All staff exit forms must include confidentiality and conflict of interest declaration templates. Employees must provide a written confidentiality declaration and a conflict of interest declaration prior to separation from the APS where a potential post-separation conflict exists. Agency policies should include information on all legislative obligations of confidentiality, secrecy or the avoidance of conflict of interest that may apply post-separation (noting that non-SES and SES employees, agency heads and statutory office holders may have different obligations), including under the Criminal Code Act 1995, Foreign Influence Transparency Scheme Act 2018, Lobbying Code of Conduct or other portfolio legislation, where relevant. SES are sent internal correspondence explaining their specific post-separation integrity obligations before their separation from the APS.

Good practice

Declarations – As per minimum requirements, plus all conflict of interest declarations must also detail how the declared personal interest relates to the functions of the agency, and demonstrate that consideration has been given to potential impacts on the agency.

  • APS and EL – After initial declaration for all staff upon commencement, a documented risk management approach is taken to inform ongoing requirements to declare conflicts of interest. If the employee belongs to a high-conflict risk area or holds a high-conflict risk position, they must complete annual declarations. Employees must also complete activity-based declarations as needed.
  • SES (and acting SES longer than 3 months) – In addition to minimum requirements, an annual declaration can only be rolled over on two occasions (a new declaration is required to be completed and signed after two roll-overs).
  • All employees (SES and non SES) with statutory/professional obligations – As per minimum requirements.

Management Plans – As per minimum requirements, plus manager above supervisor must review all declarations and management plans in place for their team annually. When an employee moves between teams within the same agency, the previous supervisor and the employee are to inform the new supervisor of any existing conflict of interest declarations and management plans.

Secondary (outside) employment – As per minimum requirements, plus manager above supervisor approval is required prior to engaging in outside employment. A conflict of interest declaration and management plan must be submitted with the request for manager approval, regardless of whether a conflict exists, and recorded, with the manager’s decision, in centralised agency recordkeeping systems. No ongoing review requirement unless there is a future change in circumstance. Consideration must be given to whether there are any agency conflicts of interest with the outside employing organisation.

Previous employment – As per minimum requirements, plus a requirement to document whether or not a conflict linked to previous employment (past 2 years) exists as part of onboarding declaration requirements (the minimum requirement only requires documentation where a real or apparent conflict does exist).

Post separation – As per minimum requirements, plus an exit letter is provided to SES employees prior to separation and copies sent to their new employer (if known) where a potential conflict is declared that needs appropriate consideration. The letter must include information about legislative obligations under the Criminal Code Act, Lobbying Code of Conduct, FITS Act and any other confidentiality and secrecy obligations that apply to the employee post-separation. SES are to acknowledge receipt of this information in writing before separation, and records must be kept in centralised agency recordkeeping systems. Where a conflict of interest risk with the employee’s new employer is identified, supervisors are to consider reasonable mitigation or management steps during the period prior to final separation (such as altering duties, granting leave or removing access to sensitive information/systems).

Excellent practice

Declarations – As per good practice.

  • APS and EL – As per good practice, plus mandatory annual conflict of interest declarations for all staff are expressly linked to the performance management framework for employees.
  • SES – As per good practice, plus when SES change roles, conflict of interest declarations are updated. Mandatory annual declarations are expressly linked to the performance management framework. Annual declaration roll-overs must not occur, and a new declaration must be completed every year.

Note – Agencies should consider whether their conflict of interest policy should be tailored to address conflicts that can arise in specific risk areas.

Management Plans – As per good practice plus periodic recorded touchpoints between the employee and their supervisor, to ensure management plans continue to effectively mitigate the declared interest and are updated as needed.

Secondary (outside) employment – As per good practice plus a separate agency policy for outside employment (paid and unpaid) is in place to outline employee obligations. Mandatory annual outside employment approval reviews and conflict of interest declarations occur regardless of whether a conflict exists. Declarations should be updated in the instance of a change of circumstances. A letter may be provided to the outside employer specifying the employee’s conflict of interest obligations in the APS.

Previous employment – As per good practice plus supervisors are also responsible for reviewing conflict of interest declaration and management plans periodically as part of the employee's performance management cycle.

Post separation – As per good practice plus an exit letter as described for SES is provided to all employees (non-SES and SES) prior to separation. All employees are to acknowledge receipt of this information in writing before separation, and records must be kept in centralised agency recordkeeping systems. A copy of this letter may also be provided to the individual’s new employer (if known), where a conflict risk is identified so that they are also aware of the ongoing obligations. Supervisors are to consider reasonable mitigation or management steps during the notice period prior to final departure (such as altering duties, granting leave or removing access to sensitive information/systems). 

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Acknowledgement of Country

The APSC acknowledges the Traditional Custodians of Country throughout Australia and recognises the continuing connection to lands, waters and communities. We pay our respect to Aboriginal and Torres Strait Islander cultures and to Elders both past and present.