Conflicts of interest
Direction and guidance on the department’s expectations and obligations related to conflicts of interest.
Audience
All department employees and those engaged to provide services to the department, including:
- ongoing, temporary and casual employees
- employees on secondment to the department
- public service senior executive (PSSE) employees
- contractors and agency employees engaged to perform work for, or on behalf of, the department
- volunteers
- special religious educators
- graduate program participants
- pre-service teachers
- consultants where their engagement requires adherence to the Code of ethics and conduct
- members of boards and committees established by the department.
| Version | Date | Description of changes | Approved by |
|---|---|---|---|
| V01.0.0 |
15/01/2026 | Establishment of a new procedure. Content drawn from:
Added a new obligation for principals to declare private interests. |
Deputy Secretary, Chief Operating Officer |
About the policy
The department is committed to preventing adverse consequences that can arise from conflicts of interest, as well as the appearance of favouritism, undue influence or impropriety.
This procedure sets standards and provides guidance on how to ethically manage actual and perceived conflicts of interest.
These procedures should be read in conjunction with the department’s Code of ethics and conduct procedure.
| Term | Definition |
|---|---|
Action management plan |
A formal binding plan, co-developed by the declarant and their workplace manager that aims to remove or mitigate the conflict of interest risk. |
Additional endorser |
In the context of the department’s integrity declaration system, it is the person to whom the declarant provides a copy of their declaration for endorsement (but not approval). |
Approver |
The employee who gives final management approval to a declaration – acceptance decisions for gifts, benefits and hospitality; approval decisions for applications of private and secondary employment; and action management plans for conflicts of interest. |
Conflict of interest |
A conflict of interest exists when a reasonable person might perceive that personal interest/s could be favoured over public duties. |
Conflict of interest attestation |
A statement by an employee stating whether they have a conflict of interest. |
Conflict of interest declaration (online) |
A declaration that employees must submit where an actual or perceived conflict of interest exists. This is submitted via the department’s integrity declaration system (staff only) (for those with access to the system) or the PDF conflict of interest declaration form. |
Corrupt conduct |
Deliberate or intentional wrongdoing by any individual, whether a public official or not, that adversely affects, or could adversely affect, either directly or indirectly, the honest or impartial exercise of official functions by any public official, any group or body of public officials or any public authority. Refer to sections 8 to 9 Independent Commission Against Corruption Act 1988 (NSW). |
Declarant |
The employee who has made a declaration. |
Fraud and corruption risk assessment |
A formal process used to identify, evaluate and mitigate risks associated with fraudulent activities and corruption. |
ICAC |
The NSW Independent Commission Against Corruption, an independent state government integrity agency. |
Nil return |
A declaration that no conflict or prescribed interests exist. |
Nominated employee |
An employee (usually in a high-risk function) designated by a public service senior executive (PSSE) workplace manager as required to make declarations of private interests (like PSSEs). |
On behalf of function |
A function of the integrity declaration system (staff only) that allows a user to submit another person’s declaration. |
Prescribed private interests |
A list of private interests that have been prescribed by a public service senior executive and which, if held by an employee, must be the subject of a formal declaration. This includes a nil return. |
Private interests |
The interests that arise from an employee’s private or non-work life that can bring any material benefits (including financial and non-financial) to any entity or disadvantages to any entity or the public interest. Private interests can be categorised broadly into associates, assets and circumstances. They can include the employee’s personal interests, such as close connections, or the interests of their associates. The term is sometimes used interchangeably with the term ‘personal interests’. |
Private interest declaration |
The obligation on public service senior executives, principals and nominated employees to periodically declare private interests that have the potential to influence their official duties. |
Process manager |
A senior officer assigned the role of managing a procurement process whose role includes the end-to-end administration and management aspects of the tender. |
Public duty |
A power, authority, duty or function conferred on the holder of a public office. The duty includes serving the public interest and acting consistently with the department’s values of excellence, trust, equity, integrity, accountability and service. |
Public interest |
A term broadly describing a conclusion or determination that best serves the advancement of the interests or welfare of the public, society or the nation and is usually dependent on each set of circumstances. Department policies require the public interest be placed above the private interests of employees. |
Public official |
An individual having functions or acting in a public official capacity (as defined in the ICAC Act). This includes all department employees. |
Reasonable person |
A commonly used standard often applied by courts to consider what a person of average caution, care and consideration would have done in a particular circumstance. |
Serious offence |
An offence that carries a sentence of 5 years or more imprisonment. |
Employees (and those identified in the Audience section above) must:
- take all steps to avoid actual or perceived conflicts of interest. A conflict of interest is not avoided by an employee delegating their official decision to a subordinate employee
- disclose promptly any actual or perceived conflict of interest, as soon as they become aware of it, to their workplace manager (or the manager of the workplace manager where appropriate)
- co-develop an action management plan (staff only) with their workplace manager to resolve any conflict in the public interest (rather than in their own or another person’s interest)
- cooperate and comply fully with any action management plan implemented to deal with an actual or perceived conflicts of interest
- report to Professional and Ethical Standards (PES) situations where a colleague or workplace manager fails to declare or manage a conflict of interest, or attempts to improperly influence a decision where there is an actual or perceived conflict of interest (refer to Contact PES).
Workplace managers (who receive a conflict of interest declaration) must:
- assess corruption risks related to the conflict of interest
- determine the best management options that uphold the integrity of the department and public trust, prevent improper influence and are in the public interest
- co-develop an action management plan with the declarant to manage the conflict
- implement and monitor compliance and the effectiveness of the action management plan.
Public service senior executives and school principals (including acting) and nominated employees must:
- submit a declaration of their financial, business and personal private interests, including other interests or relationships that have the potential to influence, or could reasonably be perceived to influence, their official duties. This includes decisions made or advice given by the senior executive. Refer to section 2. Private interests declaration (below).
Public service senior executives, and managers must:
- identify functions and roles with inherently high conflicts of interest risks
- implement appropriate processes to manage the conflicts, which might include specific declaration obligations set out in section 4. Declaration obligations for high-risk functions (below)
- be alert to and proactively monitor for concealed conflicts of interests, misleading integrity declarations and the failure to make a declaration.
Manager, Integrity:
- coordinates, monitors and reports compliance with these procedures to give assurance to the Secretary that the department properly manages private interest declarations and conflicts of interests
- develops and implements initiatives to raise awareness of conflicts of interest risks
- provides a specialist advisory service to employees
- manages declarations, in compliance with the requirements of the Privacy and Personal Information Protection Act 1998 (NSW).
What needs to be done
These procedures help employees manage actual and perceived conflicts of interest and outline the process to follow when an employee has a declaration obligation.
All department employees (and those identified in the Audience section above) must:
- promptly and proactively disclose any actual or perceived conflict of interest
- report situations in which colleagues or workplace managers attempt to influence a decision where there is an actual or perceived conflict of interest.
The department employs various mechanisms and/or internal controls to identify concealed and/or misleading conflict of interest declarations. Breaches of these procedures may result in disciplinary proceedings and result in outcomes such as warnings or employment termination.
A conflict of interest exists when a reasonable person might perceive that personal interests could be favoured over public duties. This requires a connection or overlap between those interests and duties.
An employee who has a direct or indirect commercial relationship with the department has a perceived conflict of interest.
Corrupt conduct can arise when a conflict of interest is concealed, understated, mismanaged or abused. Many forms of corrupt conduct involve a conflict of interest.
Roles with higher levels of financial delegations, autonomy, sensitivity, public pressures, external scrutiny and discretionary decision-making are particularly prone to conflict of interest risk.
The department is required to report all matters in which a reasonable suspicion of corrupt conduct is formed to the Independent Commission Against Corruption (ICAC) in accordance with section 11 Independent Commission Against Corruption Act 1988 (NSW).
Examples include:
- concealing or failing to disclose an actual or perceived conflict of interest
- making false or understated declarations about a conflict of interest
- favouring a personal interest over public duty, or creating a perception of such
- improperly influencing others to favour a private interest
- misusing resources to favour a private interest
- improperly accessing, using or disclosing information in connection with a conflict of interest
- acting improperly to favour another person’s private interests
- improperly allowing others to conceal a conflict of interest
- improperly failing to manage a conflict of interest.
Examples include:
- recruiting – including the role design, candidate selection and approval to hire phase; in relation to contingent workers and the pre-identified candidate scheme
- regulating individual or business activities – including inspecting, regulating or monitoring standards, businesses, equipment or premises; issuing qualifications or licences, issuing or reviewing fines, penalties or other sanctions
- distributing goods, services or funds – including providing a service; allocating grants or public funds; allocating subsidies, financial assistance, concessions or other relief
- making binding decisions – including issuing determinations on matters, passing binding judgements, exercising statutory powers, voting as a member of a board or committee.
1. Conflict of interest
1.1. Assess whether a conflict of interest exists
Employees should be aware of possible conflicts of interest risks between their private interest and their public duties and proactively consider:
- the type and nature of their private interests
- the responsibilities, tasks and accountabilities of their official public duties
- the nature and connection between their private interests and public duties
- the perception that a reasonable person might have that a private interest might be favoured.
1.2. Complete and submit a conflict of interest declaration
Where an actual or perceived conflict of interest exists, employees must:
- promptly submit an accurate and detailed online conflict of interest declaration in the integrity declaration system (staff only)
- co-develop an action management plan (staff only) with their workplace manager to mitigate the conflict of interest
- comply with the terms of the approved action management plan.
For further guidance about making a conflict of interest declaration, refer to the Employee checklist (staff only).
1.3. Review a conflict of interest declaration
Workplace managers who receive a conflict of interest declaration must:
- promptly and critically review the declaration
- determine the best management options that uphold the integrity of the department and public trust, prevent improper influence and are in the public interest
- co-develop an action management plan (staff only) with the declarant to ensure the conflict of interest is mitigated
- set the review frequency and approve the plan
- monitor compliance and the effectiveness of the action management plan.
For further guidance on reviewing a declaration, refer to the Manager checklist (staff only).
A workplace manager must not make an approval decision on a conflict of interest declaration in the following circumstances:
- where they are similarly conflicted
- where making an approval decision would create a conflict of interest
- where a specific department policy requires a different approval process.
A workplace manager who cannot make an approval decision because of any of the above reasons should refer the declaration using the ‘Send to next level’ function in the SAP integrity declaration system.
A workplace manager cannot avoid managing a conflict of interest by deferring the decision to their direct report. The management of a conflict of interest can only be deferred upwards or at-level.
2. Private interests declaration
The employees listed below, including those acting, must make a declaration of their private interests in the integrity declaration system (staff only):
- the Secretary
- a public service senior executive
- a principal.
Nominated employees must also make a declaration of private interests.
2.1 Assess whether a private interest exists
Employees listed above must declare any private interests including financial, business, personal and other interests or relationships that have the potential to influence, or could reasonably be perceived to influence, their official duties, including decisions made or advice given by the employee.
Where the employee has no such private interests to declare, they must declare a ‘nil return’.
2.2 Complete and submit a private interest declaration
Employees who have a declaration obligation must promptly submit an accurate and detailed online private interest declaration in the integrity declaration system (staff only).
The Secretary must provide their declaration to the Secretary of the Premier's Department.
Employees must make a fresh declaration either:
- as soon as practicable following any relevant change in the employee’s private interests
- as soon as practicable following the employee’s assignment to a new role, school or responsibility, including instances where a staff member is acting in a role that requires the submission of a private interest declaration for any length of time
- at least annually (if neither a change to private interests or assignment to a new role has occurred).
An employee acting in a role where it is mandatory to declare private interests, does not need to make a fresh declaration each time they are ‘acting’ in the role, provided:
- the role has not changed
- their private interests have not changed
- it is not more than 12 months since their last declaration.
3. Bankruptcy, criminal charges and professional proceedings
To avoid and/or manage conflicts of interests arising from bankruptcy, criminal charges or professional proceedings, the department requires proactive advice from employees. Table 1 outlines when a declaration is needed.
| Conflict of interest type | Declaration required |
|---|---|
Bankruptcy |
A declaration is required when a person:
|
Criminal charge |
A declaration is required when a person:
|
If a declaration is required, the employee must provide this in writing to their workplace manager. If the report relates to a charge or conviction for an indictable criminal offence, the workplace manager must report the declaration to Professional and Ethical Standards.
4. Declaration obligations for high-risk functions
Employees in high-risk functions must make additional declarations, as outlined below. These obligations can only be removed or cancelled by a deputy secretary.
Prescribed private interests
Employees within the Professional and Ethical Standards directorate must annually declare if they have a family member or close associate:
- employed by the department
- attending a learning institution the department operates.
Procurement employees, as designated Nominated Employees, must make the following declarations, as outlined below (including a nil return).
Code of Conduct and Declaration of Interest for Procurement Staff
This is a multi-purpose document that employees must complete and submit to procurementgovernance@det.nsw.edu.au. Employees must declare:
- they have read and understood the department’s Code of ethics and conduct
- if they have any direct or indirect involvement with any organisation that may participate in a procurement process, that the declarant may potentially be invited to support or participate (involvement includes an interest in a personal enterprise or in a company or partnership of which the declarant, their family, or close friends are directors, shareholders or members).
Conflict of interest and statement of association
Employees involved in a particular procurement process must provide a conflict of interest and statement of associations declaration (refer to Procurement templates (staff only) > Conflict of Interest and Statement of Associations form). Declarations are forwarded to the Process Manager.
Employees involved in a recruitment process, including engaging contingent workers, must comply with the declaration obligations established under the department’s recruitment policies and related recruitment forms.
Permanent employees undertaking private employment are required by the Private and secondary employment procedures to declare if they have a conflict of interest.
Employees must:
- promptly submit an accurate and detailed online private and secondary employment declaration in the department’s integrity declaration system (staff only)
- select the 'Private and Secondary Employment’ option in the ‘Reason for Declaration’ field, which will prompt them to submit a conflict of interest declaration.
The committees set out below are operated by the department and their respective charters mandate declaration obligations.
- Audit and Risk Committee
- NSW Childcare and Economic Opportunity Fund Board
- NSW Skills Board
- Out of area school enrolment board.
The secretariat of each committee must submit online conflict of interest declarations in the department’s integrity declaration system (staff only) on behalf of the committee members. The secretariat must use the ‘On Behalf Of’ function and either:
- upload and attach a single declaration for an actual or perceived conflict of interest
- upload and attach multiple declarations where there is no perceived or actual conflict of interest.
Contingent workers, contractors, consultants and volunteers do not have access to the SAP integrity declaration system but are still bound by declaration obligations. These persons must:
- comply with specifically relevant terms of a contract, work agreement or engagement provisions
- submit a PDF conflict of interest declaration form to a workplace manager with access to the integrity declaration system (staff only).
The workplace manager must use the ‘On Behalf Of’ function and upload and attach the PDF declaration.
Internal audit employees must make an annual retrospective declaration to the Chief Audit Executive attesting to compliance with the department’s:
- core values
- Code of ethics and conduct
- professional standards of internal auditors
- Internal Audit manual.
Additionally, for each engagement, the audit officers participating in that engagement must make a declaration to the Audit Project Manager before the engagement that includes a Statement of Associations, and an attestation about whether they have a conflict of interest.
The executive, as key management personnel (KMP) are required by TPG23-16 Related Party Disclosure to make a disclosure in the form of a certificate that sets out the details of close family members, entities controlled by the KMP or close family members, and transactions between the department and those entities.
Arts, Sport and Initiatives, Student Support and Specialist Programs employees must make an annual declaration (including a nil return) of the following prescribed private interests:
- associates, friends, and members of their immediate family who are currently employed by or volunteers of the funded entity
- members of their immediate family who may be engaged or entitled to the services provided by the funded entity
- any other private interest that has the potential to influence any official decision that affects the funded entity.
5. Optional additional obligations
5.1 Assess risk and need for additional declaration obligations
Managers must:
- undertake a fraud and corruption risk assessment focusing on conflicts of interest risks
- consider whether requiring employees make the additional declarations as set out below would mitigate the identified risk.
5.2 Types of additional declaration obligations
Additional declarations obligations include requiring employees to:
- attest whether they have an actual or perceived conflict of interest, or provide a nil return where none exists – Conflict of interest attestations (staff only)
- declare a private interest that might be perceived as influencing their official duty, or provide a nil return where none exists – Declarations of private interests (staff only)
- declare a private interest that has been specifically prescribed by senior managers. A nil return is required. Managers can proactively assign work that avoids conflicts of interest – Declarations of prescribed private interests (staff only)
- disclose whether they hold a prescribed disqualifying interest. A nil return is required. Employees who hold a disqualifying interest would either have to dispose of their interest or be disqualified from undertaking the official duty – Declarations of disqualifying private interests (staff only)
- declare their associates, their own interests and the interests of their associates, and whether they or their associates have a commercial relationship with the department – Related party disclosures (staff only).
5.3 Implementing additional declaration obligations
Where additional declaration obligations are determined to be appropriate, the relevant public service senior executive must:
- issue a formal directive to affected employees setting out the reasons and specific details of the additional declaration imposed on them
- advise the Manager Integrity.
Record-keeping requirements
Keep records on department and local policies at individual schools. Disposal action: Retain for a minimum of 5 years after superseded, then destroy (Primary and secondary education FA387, 2.0.6).
Mandatory tools and templates
- Online declaration portal for employees to make a declaration – Integrity declaration system (staff only)
Supporting tools, resources and related information
- Integrity declarations (staff only)
- all staff are required to maintain privacy in compliance with the department’s Privacy standards.
- Code of ethics and conduct procedure
- Community complaint procedures
- Commercial arrangements, sponsorship and donations procedures
- Independent Commission Against Corruption – Conflicts of interest
- Fraud and corruption control procedures (staff only)
- Gifts, benefits and hospitality procedures
- Government Information (Public Access) Act 2009 (NSW)
- Privacy and Personal Information Protection Act 1998 (NSW)
- Private and secondary employment procedures
- Professional and ethical standards policy
- Public interest disclosures procedures
- Sharing of school facilities procedures
- Staff complaint procedures (staff only)
Policy contact
The Executive Director, Chief Risk Office Transition Support and Chief Audit Executive monitors the implementation of this procedure, regularly reviews its contents to ensure relevance and accuracy, and updates it as needed.