A key component of the efficient and effective management of records by an organisation is to know how long the records they generate should be retained and when they should be disposed of.

Disposal is the process by which records of NSW public sector organisations are either destroyed, retained as State archives or transferred to private ownership.

Part 3 of the State Records Act 1998 prohibits the disposal of records created and maintained by NSW public sector organisations except where it is authorised. Under the Act, State Records can give permission for the disposal of records.

The usual means by which permission is given by State Records is through the approval and issue of retention and disposal authorities. These may be issued to particular organisations for use (functional retention and disposal authorities) or issued for use by all public sector organisations or organisations within a particular sector eg local councils, public health services or universities (general retention and disposal authorities)

All retention and disposal authorities must be approved by State Records' Board before they can be approved for use by State Records.

The importance of NSW government agencies having in place comprehensive functional retention and disposal authorities and regularly implementing them is highlighted in the recent Premier's Memorandum M2007-08 Efficient and Cost Effective Management of Records.