Frequently asked questions

For PSP service providers who are contracted under the executed October 2022 Funding Deed (they did not execute the August 2025 variation), your requirements are found in the Funding Deed. Application for approval/consent to purchase assets is not required. However, many of the guidelines found in the policy are relevant, including what can be purchased and who from, how to record purchases and governance of assets management.

In this policy, asset lifecycle management (ALM) refers to the end-to-end process by which an asset is purchased, leased, stored, used and maintained over the period of the Term remaining within the contract lifecycle.  Simply, the ALM includes:

• Planning and procurement
• Receiving
• Deployment
• Realisation
• Disposal and or replacement.

Related party transactions are common and are not necessarily a problem in and of themselves.  However, related party transactions can also bring about issues with potentially damaging conflicts of Interest, meaning there is a risk that a related party transaction may not be in the best interests of DCJ or the delivery of the Services. 

A related party transaction can include:

• acquisitions, sales or donations
• receiving goods, services or property
• leases
• transferring property.

For more information read our Conflicts of interest policy for contracted providers of human services.

DCJ encourages early asset planning to avoid delays and has put mechanisms in place to enable providers to secure suitable ITC property in a timely manner. DCJ recommends the use of pre-approvals, to cover the maximum number of properties you will require. 

While pre-approvals are preferred, you can also utilise the urgent approval process.

While urgent applications may be utilised, they are not the preferred approach.

Urgent applications will not be considered where a Related Party is involved.

Complete the asset approval to acquire or dispose form. Submission details will be advised closer to go live.

DCJ will advise you of its decision, in writing, within ten (10) working days.

Yes. The asset register must be provided to DCJ within four months of the end of each Financial Year in accordance with annual accountability; or at any other time at DCJ’s request.

Assets purchased or leased under any previous PSP funding arrangement must be treated as an asset for the purposes of the PSP Funding Deed. Approval is not required for previously purchased assets.

Approval to purchase requirements will apply from 1 September 2025.

An outcome can be disputed as per the current dispute resolution clauses in the PSP Funding Deed.

You can email the reason for your dispute to the Director Commissioning and Planning, who will progress the matter to the Executive Director Commissioning and Planning for review. The Executive Director Partnerships or Executive Director, Child and Family.

Yes. If the lease for an ITC property will cost $10,000 or more (exclusive of GST) over the term of the lease, then it is regarded as a high-cost asset and DCJ approval is required.

No, an ITC property fit out is likely to include separate individual items such as fridge, lounge, beds and is not considered a bulk asset. If, however, the provider made a bulk purchase of the same item (for example, beds) to fit out several ITC properties, with an individual value of less than $2,000 but a total/combined value above $10,000, this would be considered a bulk asset.

Individual items above $2,000 must be added to the asset register. 

You may get pre-approval to purchase a range of assets that you are likely to purchase or lease during a financial year, utilising one or several application forms depending on the type of assets and the format you decide to present the information.

Once the asset is purchased you must add it to your asset register and include in your financial reporting.

Refer to the policy for more information.

We will let you know (in writing) of our decision within 10 working days or will notify you of delays within that period. Purchasing or leasing from a related party will typically take longer, as may purchasing vehicle or properties.

You may depreciate assets in your organisation's accounts, as required by the accounting standards.

However, don’t report asset depreciation in either the income and expenditure statements for DCJ contract reporting purposes or in the form on the PACS Portal.

This is because:

• Any asset purchased with DCJ funds has already been claimed outright as an expense against the contract funding in the financial year of purchase.
• To claim depreciation on the same asset in subsequent years is to claim an additional deduction for an expense already claimed.

For more information, please refer to annual accountability Frequently asked questions.

Subject to the funding source used to purchase the assets, the following applies:

1.    If your organisation is purchasing the asset with your funds outright (not leased), and then you charge the PSP contract a usage fee, then no you do not need DCJ approval.

Scenario: You (same entity) purchase a $40,000 car using funds from a non-DCJ funding source. You do not require approval to purchase. The car is used to deliver PSP services under the contract. You charge the PSP contract a usage fee for the use of the car. You do not require approval to apply a usage fee as this is not considered a lease under these policies. However, the usage charge should be proportionate to the use and cost. You should discuss your approach to usage charges with your contract manager.

or alternatively

2.    If you are purchasing the asset with DCJ funds, then yes approval is required, but in this option, you cannot charge a usage fee to the PSP contract, as the asset belongs to DCJ and DCJ has already paid for it.

Scenario: You (same entity) purchase a $40,000 car to deliver PSP Services under the contract, using DCJ PSP funding, or administration fees or corporate costs collected from your DCJ funding. You require approval to purchase. A usage charge cannot be charged to DCJ.

or alternatively

3.    if you are purchasing the asset with a combination or your funds and DCJ funds, then yes approval is required, but in this option, approval is provided for the proportion of DCJ funds. You can only charge a proportional usage fee to the PSP contract for your contribution, as a percentage of the asset belongs to DCJ and DCJ has contributed to the cost.

Scenario: You (same entity) purchase a $40,000 car using $32,000 (80%) funds from a non-DCJ source and $8,000 (20%) DCJ Funds from your PSP Contract. You require approval to purchase the car. You cannot charge a usage fee if it is used 20% or less of its time to deliver PSP services. If the car is used for 50% of its time to deliver PSP, you can charge a usage fee for 30% of its usage (50% - 20%).

Note: DCJ Funds includes administrative or corporate that have contributed to your available funds or cash reserves, in the same year or accumulated over time.

The charging of usage fees and other costs is considered by DCJ during annual accountability when reviewing your financial reports or as appropriate.

For more information, please refer to the annual accountability Frequently asked questions.