The focus of Australian assistance to Nauru’s public sector is to support key government reforms to better manage national budgets and development planning, strengthen public financial management, manage fiscal risk as well as improve revenue generation and collection. To achieve this, Australia is funding the placement costs of four deputy secretaries within the Departments of Finance and Sustainable Development. In addition, Australia is also supporting the Government of Nauru to implement tax reforms through the placement of a specialist technical advisor and strengthened financial reporting and audit functions through the placement of a corporate services manager.
Nauru Public Sector Reform
Up to $2 million, 2018-2019
The Nauru Public Sector Reform Initiative supports the Government of Nauru’s strategies for public sector reform, improved economic governance and financial management through the placement of capacity-building advisors in key public service positions. The priorities are: strengthening the capacity of central agencies to deliver and manage national budgets aligned with national development policies and plans; developing and implementing policies to manage fiscal risks and improve revenue generation and collection, including from state-owned enterprises (SOEs); and strengthening development coordination, planning and reporting.
The Intergenerational Trust Fund for the People of Nauru
Up to $2.5 million, annually
The Intergenerational Trust Fund for the People of Nauru was formally established in November 2015 under memoranda of understanding between the Government of Nauru and contributing parties, Australia and Taiwan. The Asian Development Bank (ADB) was instrumental in the design of the fund and also provided an initial contribution. In 2018 New Zealand also made a contribution to the fund.
The fund became fully operational in April 2016. It aims to provide a future revenue stream to supplement domestic revenue in anticipation of current resources (phosphate and fisheries) declining over the next 20 years.
The governance committee for the fund consists of representatives from contributing parties. The Committee is responsible for the operation, supervision and management of the fund, the investment and distribution of resources, and the conclusion of arrangements with additional contributing parties.