Conflict of interest management for new APS employees
A 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.
All APS employees and agency heads have an obligation under the APS Code of Conduct to:
- take reasonable steps to avoid any real or apparent conflict of interest in connection with their APS employment; and
- disclose details of any material personal interest they may have in connection with their APS employment.
APS employees and agency heads also have similar disclosure obligations—as public officials—under the Public Governance, Performance and Accountability Act 2013.
They must also avoid corrupt conduct as defined in the National Anti-Corruption Commission Act 2023, which can be achieved through effective avoidance, disclosure and management of conflicts of interest.
Failure to effectively manage conflicts of interest may have personal consequences for individuals, including sanctions for breach of the Code of Conduct or prosecution under relevant criminal offence provisions for corrupt conduct.
The obligation to avoid conflicts of interest, and to disclose and manage them when they are unavoidable, is vital to maintaining confidence and trust in the integrity of the APS. The Australian community, the Government, and the Parliament need to have confidence that APS employees—who provide advice to the Government, administer policies and programs, deliver services to the Australian people, and are accountable for public money—will not prioritise their personal interests over their public and official obligations.
When commencing employment in the APS, all employees must consider whether their personal interests may give rise to a real or apparent conflict with their new public or official duties.
- 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.
When starting a new role, it is important to identify and disclose any material personal interests that could conflict, or could reasonably be perceived to conflict, with your new duties, and put in place a management plan if potential conflicts are identified.
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. If no reasonable person could draw a connection between your personal interest and your duties, then the personal interest is not ‘material’.
- While there is no standard list of items that must be disclosed, the types of interests and relationships that you may need to disclose include real estate investments, shareholdings, trusts or nominee companies, company directorships or partnerships, involvement in self-managed superannuation funds, other significant sources of income, significant liabilities, gifts or bequests, private legal proceedings, secondary (outside) employment, voluntary activities, or social or personal relationships that could affect (or could reasonably be perceived to affect) the performance of your duties.
- You should also declare your immediate family’s material personal interests where these could affect (or could reasonably be perceived to affect) the performance of your duties. This requires the consent of the family member to the collection by your agency of personal information, and a declaration that the family member is aware of the purpose for which the personal information has been collected and the third parties to whom the personal information may be disclosed.
- A potential conflict of interest is where there is a real possibility that you will have a material personal interest, relationship, or competing duty that could affect the way you exercise your public powers, perform your public functions or discharge your public or official duties. The possibility may arise because you may in the future have to make decisions of a particular type that could affect or be affected by an interest or competing duty that you already have; or because you may in the future acquire interests or duties that could be impacted by the types of decision that you are required to make.
It is standard practice for APS agencies to request all new employees to complete a conflict of interest declaration as part of their on-boarding procedures. For new starters, previous employment may be considered a material personal interest for this purpose. An individual’s work for a previous employer, whether APS or non-APS, or a previous voluntary role or business ownership, may have the potential to conflict with their current duties, and all new employees need to consider whether their work history could give rise to a real or apparent conflict with their new role.
Where you are not sure whether a personal interest could conflict with your duties, it is good practice to declare the interest and seek advice on how to assess and manage any potential conflict.
In the first instance you should seek advice from your supervisor or next level manager, or the corporate team responsible for managing your agency’s conflict of interest policy. Other sources of advice include agency Integrity Champions, Ethics Contact Officers, and the Ethics Advisory Service.
Even where there are no potential conflicts, it is important that you complete a declaration confirming that is the case, to provide assurance that your work history or other personal interests have been considered and no potential conflicts have been identified.
Declarations of interests and approved conflict management plans should be made in writing and stored appropriately in centralised agency record keeping systems.
Completing a declaration of interest and conflict management plan when you start a new APS job is the first step in ensuring you meet your integrity and ethical obligations.
For further information about conflict of interest declaration processes and definitions, please refer to:
Section 5: Conflict of Interest | Australian Public Service Commission
Template Declaration of Interests Form for APS Employees
Template Declaration of Interests Form for Agency Heads and Statutory Office Holders
APS Conflict of Interest Management Framework - Better Practice Model
NACC’s Corrupt conduct and conflicts of interest – A guide for public officials
Department of Finance RMG 208 – Managing conflicts of interest and confidentiality