Lexi Webster
As of March 2021, the Australian government owns nine government business enterprises (GBEs), comprising two corporate Commonwealth entities and seven Commonwealth companies. The government also has other public non-financial corporations (PFNCs) that are not prescribed as GBEs, such as Special Broadcasting Service and Airservices Australia. The Australian government's relationship to its GBEs is similar to the relationship between a holding company and its subsidiaries. The government established these businesses as they provide services critical to the economy and infrastructure to the state.
| Characteristics | Values |
|---|---|
| Number of Government Business Enterprises (GBEs) | 9 |
| Number of corporate Commonwealth entities | 2 |
| Number of Commonwealth companies | 7 |
| Number of public non-financial corporations (PFNCs) that are not prescribed as GBEs | 2+ |
| Fully owned public non-financial corporations | Special Broadcasting Service |
| Number of Government-owned companies of Australian states and territories | 8 |
| Number of bodies reported on the Register as of 31 December 2024 | 1,322 |
| Number of bodies removed from the Register since the last update as of 30 September 2024 | 10 |
| Number of bodies added to the Register since the last update as of 30 September 2024 | 17 |
| Number of State-owned corporations in NSW | 8 |
| Number of Queensland Government-owned corporations (GOCs) | 2+ |
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What You'll Learn
- The Australian government owns public non-financial corporations (PNFCs) like the Special Broadcasting Service
- The Queensland government owns businesses critical to the economy and infrastructure, like water and energy providers
- The NSW government owns State-Owned Corporations (SOCs) in energy, water, ports, and forestry
- The Australian government has a similar relationship with its GBEs as a holding company to its subsidiaries
- Telstra, Australia's largest telecommunications company, was privatized in 1997
The Australian government owns public non-financial corporations (PNFCs) like the Special Broadcasting Service
The Australian government owns and operates a number of businesses and enterprises across the country. These are often referred to as Government Business Enterprises (GBEs) and are set up when the marketplace does not support private enterprise, or when the business provides critical infrastructure to the state.
As of March 2021, there were nine GBEs of the Government of Australia, comprising two corporate Commonwealth entities and seven Commonwealth companies. The Australian government also has other public non-financial corporations (PNFCs) that are not prescribed as GBEs. These include the Special Broadcasting Service, which is fully owned and funded by the government, and Airservices Australia.
The Commonwealth Bank was also founded as a public company before being privatized, as was Telstra, which was established in the 1970s as Telecom Australia. Telstra was privatized in 1997 and is now Australia's largest telecommunications company.
At the state level, the Queensland Government has established Government-Owned Corporations (GOCs) that are monitored by the Queensland Treasury. The NSW Government also owns a number of commercial businesses in energy, water, ports, and forestry, known as State-Owned Corporations (SOCs). These SOCs are monitored by the NSW Treasury, which advises on critical issues that may impact the businesses.
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The Queensland government owns businesses critical to the economy and infrastructure, like water and energy providers
The Queensland government owns businesses critical to the economy and infrastructure, including water and energy providers. In South East Queensland (SEQ), water and sewerage services are provided by local councils and companies such as Urban Utilities, Riemore Water 1 Pty Ltd, and Unitywater. These organisations, except Riemore Water 1 Pty Ltd, purchase their treated bulk water from Seqwater, the Queensland Government's bulk water authority. Seqwater owns and operates the SEQ Water Grid, supplying drinking water to water service providers in the region.
The Queensland Government also has a significant presence in the energy sector, owning over $35 billion worth of generator, network, and distribution electricity assets. Energy Queensland, a key government-owned entity, services customers through its distribution businesses, Energex and Ergon Energy Network, and its regional retailer, Ergon Energy Retail. With a workforce of more than 9,300 employees, Energy Queensland provides energy solutions across Queensland and is committed to supporting the transition to renewable energy.
In addition to water and energy providers, the Queensland Government also has interests in other critical sectors. For example, the government plays a role in ensuring reliable and efficient transport systems, including through its ownership of Queensland Rail, which operates passenger and freight rail services. Moreover, the government has a stake in the state's airports, such as the Brisbane West Wellcamp Airport, which is jointly owned by the Queensland Government and the Wellcamp Airport Pty Ltd consortium.
The Queensland Government's ownership of these businesses demonstrates its commitment to providing essential services and maintaining critical infrastructure for the state's economy and the well-being of its residents. Through these endeavours, the government aims to foster economic growth, ensure stable and reliable access to vital resources, and enhance the overall quality of life for Queenslanders.
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The NSW government owns State-Owned Corporations (SOCs) in energy, water, ports, and forestry
The NSW government owns and operates a number of businesses in the energy, water, ports, and forestry sectors. These businesses are known as State-Owned Corporations (SOCs) and are established under the State-Owned Corporations Act 1989. There are currently eight SOCs in NSW, each providing critical services to the economy and infrastructure of the state.
The energy sector is one of the key areas where the NSW government has a presence through its SOCs. These energy providers play a crucial role in ensuring a stable and reliable supply of electricity to the people of NSW. The government's involvement in this sector is aimed at maintaining affordable energy prices and promoting sustainable energy solutions for the state.
In the water sector, the NSW government-owned SOCs are responsible for the provision of clean water and sewerage services. This includes the management of water infrastructure, such as dams, treatment plants, and distribution networks. By owning and operating these assets, the government ensures that residents have access to safe and reliable water supplies.
The NSW government also owns and operates ports through its SOCs. These ports facilitate trade and commerce, connecting NSW to global markets. The efficient management of these ports is vital for the state's economy, ensuring the smooth flow of goods and resources.
Additionally, the NSW government has a presence in the forestry sector through its SOCs. Sustainable management and conservation of forest resources are key focuses of these corporations. They play a vital role in balancing the state's economic, social, and environmental needs by providing timber and wood products while also preserving the biodiversity and ecological integrity of NSW's forests.
The NSW government's SOCs are subject to oversight by the Treasurer and the Minister for Finance, who are the designated Shareholding Ministers. These ministers are responsible for monitoring the performance of the SOCs and ensuring compliance with the State-Owned Corporations Act 1989 and other relevant legislation. Annual reports and statements of corporate intent are tabled in the NSW Parliament, providing transparency and accountability for these government-owned entities.
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The Australian government has a similar relationship with its GBEs as a holding company to its subsidiaries
In Australia, the predominant term used for SOEs (state-owned enterprises) is government business enterprise (GBE). The Australian government's relationship with its GBEs is similar to the relationship between a holding company and its subsidiaries. As of March 2021, there are nine GBEs of the Government of Australia, comprising two corporate Commonwealth entities and seven Commonwealth companies. The two corporate Commonwealth entities include Australia Post, while the seven Commonwealth companies include NBN Co and Snowy Hydro.
The Commonwealth Department of Finance provides guidance for directors of GBEs, stating that "shareholder ministers have an oversight role that extends beyond that of a private sector company shareholder". The enabling legislation often gives the relevant minister the power to direct the board, a power that shareholders in commercial companies do not possess. For example, Section 49 of the Australia Post legislation allows the communications minister to "give to the board such written directions [...] as appear to the minister to be necessary in the public interest".
The government's relationship with its GBEs is similar to that of a holding company because it has a degree of control over their operations and can provide strategic direction. However, it's important to note that the government's role also includes monitoring performance and ensuring a robust governance framework, which may include initiating changes and contributing to policy development. This is similar to how a holding company might set overall strategic direction for its subsidiaries while allowing them to operate independently within their respective markets.
In addition to the nine GBEs, the Australian government also has other public non-financial corporations (PFNCs) that are not classified as GBEs. These include Airservices Australia and the Special Broadcasting Service, which is fully owned and funded through a combination of government and commercial sources.
At the state level, various Australian states also have GBEs, particularly in the provision of water and sewerage services. For example, the NSW Government owns eight state-owned corporations (SOCs) in energy, water, ports, and forestry. Queensland owns 11, and Western Australia has 27 government trading entities (GTEs) in similar sectors.
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Telstra, Australia's largest telecommunications company, was privatized in 1997
Telstra, Australia's largest telecommunications company, was privatised in 1997. The company has a long history in Australia, dating back to 1901 when it was established as the Postmaster-General's Department upon federation. In 1970, the Postmaster-General's Department (PMG) spun off the Australian Telecommunications Commission, which became a separate entity known as Telecom. Telecom merged with the Overseas Telecommunications Commission (OTC) in 1992 to form the Australian and Overseas Telecommunications Corporation. The new organisation was renamed Telstra for international business in 1993 and domestic business in 1995.
The privatisation of Telstra began in 1997 with the sale of one-third of the government's shares on the stock exchange to investors for $14 billion. This first stage of privatisation, known as "T1", saw the company listed on the Australian Securities Exchange for the first time. In 1999, under the "T2" program, the government sold another tranche of shares for $7.40 per share to institutional investors and $7.80 to retail investors.
Telstra's privatisation was completed in 2006, when the government sold a third tranche of shares, known as "T3", reducing its ownership to 17%. Telstra is now a fully independent company and is the most widely held ASX-listed company, with over one million shareholders. The company has come a long way since its early days, and today it is not just Australia's largest telecommunications company but also one of the top telecommunications providers in the world.
Telstra has a wide range of products and services, including fixed-line and mobile telephony, internet services, subscription television, and more. It also owns and maintains the majority of Australia's public telephones, though it has removed many of them due to vandalism and the increasing use of mobile phones. Telstra has continuously innovated and adapted to changing circumstances, such as the deregulation of the telecommunications industry and increasing competition from rivals like Optus.
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Frequently asked questions
As of March 2021, the Australian government owns nine Government Business Enterprises (GBEs), comprising two corporate Commonwealth entities and seven Commonwealth companies. The Special Broadcasting Service is one of the fully-owned companies, while Telstra, Australia's largest telecommunications company, was privatized in 1997.
A Government Business Enterprise (GBE) is a Commonwealth entity or Commonwealth company that is prescribed by the rules (s8 of the PGPA Act). The Australian government's relationship to its GBEs is similar to the relationship between a holding company and its subsidiaries.
The Queensland Treasury monitors the performance of all Queensland Government-Owned Corporations (GOCs). It also monitors the performance of two statutory bodies with commercial operations. The Queensland Treasury is committed to increasing the number of women on boards and addressing any complaints of corrupt conduct involving GOCs.
