Annual Report 2014-15 - Department of the Prime Minister ... · About this report This is the Secretary’s report to the Prime Minister for the financial year ended 30 June 2015

Annual Report 2014-15

Annual Report 2014-15

Contact us

For all enquiries regarding this report please contact:

Assistant Secretary, Governance, Audit and

Reporting, Department of the Prime Minister and

Cabinet (ABN 18 108 001 191).

Address: Andrew Fisher Building

One National Circuit

Barton ACT 2600

Australia

Mail: PO Box 6500

Canberra ACT 2600

Australia

Internet: www.dpmc.gov.au

Email: [email protected]

Telephone: (02) 6271 5111

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Fax: (02) 6271 5414

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ISSN 0157-8340

© Commonwealth of Australia, Department of the

Prime Minister and Cabinet, 2015

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ii

iii

Letter of transmittal

The Hon Malcolm Turnbull MP Prime Minister Parliament House CANBERRA ACT 2600

I am pleased to present the Annual Report of the Department of the Prime Minister and Cabinet (the Department) for the year ended 30 June 2015.

This report has been prepared in accordance with section 63 of the Public Service Act 1999, which requires that you table the report in Parliament. It reflects the Requirements for annual reports for departments, executive agencies and other non-corporate Commonwealth entities (as approved by the Joint Committee of Public Accounts and Audit, updated 25 June 2015).

The report includes the Department’s audited financial statements prepared in accordance with the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015.

As required by the Commonwealth Fraud Control Framework 2014, I certify that I am satisfied that the Department has in place appropriate fraud control mechanisms that meet our needs and that comply with the guidelines applying in 2014-2015.

Yours sincerely

Michael Thawley 16 September 2015

cc Senator the Hon. Nigel Scullion, Minister for Indigenous Affairs

iv

About this report

This is the Secretary’s report to the Prime Minister

for the financial year ended 30 June 2015 and

a foreword from the Secretary follows on page v.

The report relates to the Department of the

Prime Minister and Cabinet’s (PM&C) performance

for 2014–15 against the measures outlined in the

Portfolio Budget Statements (PBS) and the Portfolio

Additional Estimates Statements (PAES) for the

same period. The report forms a primary mechanism

of accountability to the Parliament of Australia in

relation to services provided. It also communicates

information to the community and stakeholders.

The report has been prepared in line with the

Requirements for annual reports for departments, executive agencies and other non-corporate Commonwealth entities (the Annual Report

Requirements), as approved by the Joint Committee

of Public Accounts and Audit on 25 June 2015. The

compliance index (on page 220) will direct you to

where information required by the Annual Report

Requirements can be found in this report.

This report is available in print from 32 libraries

around Australia and the online version can be

accessed on the Department’s website. The report

comprises six parts:

• Part 1 introduces readers to the Department

with a description of the portfolio.

• Part 2 reports on how the Department performed

during the period against its outcomes and

departmental and administered programmes.

• Part 3 details management and accountability

processes, including corporate governance,

external scrutiny, management of human

resources and work health and safety, purchasing

arrangements, consultancies, advertising, grants

and ecologically sustainable development and

environmental performance processes.

• Part 4 contains the audited financial statements

for 2014–15 for the Department, the Aboriginals

Benefit Account and the Aboriginal and Torres

Strait Islander Account and explanatory

information.

• Part 5 comprises appendices including the

Annual Reports of the Aboriginals Benefit

Account, Aboriginal and Torres Strait Islander

Land Account and the Office of the Registrar of

Indigenous Corporations and information on the

National Australia Day Council.

• Part 6 comprises the glossaries and indexes that

provide useful additional information.

v

From the Secretary

On 1 December 2014, I inherited from my predecessor,

Dr Ian Watt, a department that had successfully

bedded down the incorporation of Indigenous

affairs responsibilities, thus tripling its size. The

department is well equipped to support the Prime

Minister carry out his responsibilities as head of

the government and chair of the Cabinet. I would

like to pay tribute to the enormous contribution

Dr Ian Watt has made to Australia through his

service as head of PM&C and before then as head

of the departments of Communications, Finance and

Defence. My aim has been to build the department’s

ability to generate ideas to help the government

shape and deliver its policy agenda.

In addition to the Prime Minister, we supported

the Minister for Indigenous Affairs, the Minister

Assisting the Prime Minister for the Public Service,

the Minister Assisting the Prime Minister on

Counter-Terrorism, the Minister assisting the

Prime Minister for Women, and the parliamentary

secretaries to the Prime Minister.

Our efforts to support Australia’s G20 Presidency

were successful. The summit was the most significant

gathering of world leaders Australia is likely to see

for a long time. Its major outcomes will strengthen

global growth, enhance economic resilience and

advance collaboration on trade and energy.

Other highlights include the Prime Minister

relocating the government to north-east Arnhem

Land for nearly a week, which we organised with

the very effective help of the Australian Defence

Force. The Prime Minister visited Gallipoli for the

centenary of the landings. His moving speech at the

dawn service at Anzac Cove captured the significance

of the occasion not only in Australian history, but

also for our future. Best of all was that so many

people could participate, both at services in Turkey

and at so many sites across Australia.

Throughout the year, PM&C coordinated many major

economic reform projects. Highlights include the

Industry, Innovation and Competitiveness Agenda

Photo i Mr Michael Thawley meeting with Ministerial Correspondence Unit staff on his first day.

vi

Report, which was released on 14 October 2014, the

White Paper on Developing Northern Australia,

released on 18 June 2015, and the Agricultural

Competitiveness White Paper, launched in the early

days of July 2015.

We made good progress, in conjunction with our state

counterparts, on the Reform of the Federation White

Paper. Five issues papers and a draft discussion

paper were released, and preparations begun for

what proved to be a successful leaders retreat in

late July 2015.

In early 2015, together with the New South Wales

Department of Premier and Cabinet, we jointly

reviewed the events leading up to the Martin Place

Siege, releasing the report on 22 February 2015.

Following the comprehensive Review of Australia’s

Counter Terrorism Machinery, released on

23 February 2015, the Hon Michael Keenan MP was

appointed the Minister assisting the Prime Minister

on Counter Terrorism and Mr Greg Moriarty

was appointed the Commonwealth Counter

Terrorism Coordinator.

Australia’s ties in the international community were

reinforced, with the Prime Minister undertaking

11 trips to 15 countries. We hosted five official

Guest of Government visits within one week (UK,

Germany, India, China and France). We coordinated

Australia-wide visit programs, with hospitality and

ceremonies tailored to the unique aspects of each

bilateral relationship.

We have led collaboration with other agencies

on critical issues including methamphetamines,

violence against women and children, and Ebola.

In our Indigenous affairs remit, an open grant round

was conducted under the $4.9 billion Indigenous

Advancement Strategy, resulting in 996 organisations

being recommended for funding to deliver over 1,350

projects to Indigenous people and communities at

a value of $1 billion.

The Remote School Attendance Strategy (RSAS)

is delivering potentially promising results. In the

Northern Territory and Queensland, on average

11 per cent more students attended government RSAS

schools in Term 3, 2014 compared to the same time

in 2013. We have undertaken a number of reforms

to lift Indigenous employment and participation

rates, including a substantial overhaul of remote

employment services, new investment in remote

businesses and changes to Indigenous procurement.

Our new regional network has been designed to

support these services on the ground, recognising

that each location and community has its own

history, needs and way of doing things. We employ

over 2,300 staff in more than 100 locations across

Australia. This workforce includes an urban, regional

and remote footprint and a high proportion of

Aboriginal and Torres Strait Islander employees.

Looking ahead to the next 12 months, we will

offer a two-year Graduate Programme that will

include rotations in our regional network as well as

Photo ii Mr Michael Thawley meeting with a switchboard staff member on his first day.

vii

a company or non-government entity. Our senior

executives are also encouraged to take up private-

sector secondments to improve their exposure to

different ways of doing things. I want our workforce

to be truly flexible and mobile, exercising the full

responsibility each is capable of, and not hung up

on the usual public service preoccupations of rank.

In our corporate activities, I have focused on

delegating financial and other decisions to the

most appropriate levels. I want those responsible

for outcomes to have matching authority, and for

decision-makers not to be frustrated by unnecessary

hierarchy. I especially want local decision making

in Indigenous affairs to promote the best interests

of the affected community.

Our policy priorities for the next 12 months will

undoubtedly focus on economic reform and national

security. Our engagement on national security issues

will include the defence white paper, counter-

terrorism, major capability projects and coordinating

the National Security Committee of the Cabinet and

the Secretaries’ Committee on National Security.

We will support the Prime Minister’s engagement

with international counterparts, building Australia’s

bilateral, regional and multilateral relationships to

support Australia’s security and prosperity.

On economic reform, the Federal Budget will

continue to be a key focus within the broader context

of an economic strategy that lifts innovation and

entrepreneurship, and enhances the economy’s

productive capacity. We will put proposals to the

government for longterm structural reforms.

The Community Development Programme will

see the majority of remote Aboriginal and Torres

Strait Islander job seekers being actively engaged

in meaningful work-like activities that contribute

to communities and build usable and transportable

work skills and experience. Our work will continue

with state and territory governments to improve

outcomes for Aboriginal and Torres Strait Islander

people in the priority area of early childhood.

Other initiatives include shaping the next stage of

the Government’s deregulation efforts, improving the

campaign to reduce domestic violence, supporting

counter-terrorism policies and progressing work

to achieve constitutional recognition for our First

Australians. A final report on the National Ice Action

Strategy will be completed by the end of 2015, and

the Reform of the Federation White Paper should

be released in the first half of 2016. The Review of

Cyber-Security is a priority for the Government and

the private sector.

The next year provides many opportunities for PM&C

to make a contribution to a more prosperous, fair

and successful Australia. My colleagues and I look

forward to making the most of them in conjunction

with the many others in the public service and

broader community who share this ambition with us.

Michael Thawley

Secretary

Photo iii Mr Michael Thawley meeting with security staff on his first day.

Contents

Letter of transmittal �� iii

About this report�� iv

From the Secretary �� v

Part 1: Overview for 2014–15 ��1

The Portfolio �� 1

The Department �� 2

Part 2: Performance report �� 7

Outcome 1: Prime Minister and Cabinet ��8

Outcome 2: Indigenous �� 22

Part 3: Management and accountability��39

Corporate governance ��40

Management of human resources, work health and safety ��43

Procurement and grants ��51

Ecologically sustainable development and environmental performance �� 53

viii

Part 4: Financial statements ��56

Financial performance �� 57

Department of the Prime Minister and Cabinet financial statements ��64

Aboriginals Benefit Account financial statements ��149

Aboriginal and Torres Strait Islander Land Account financial statements �� 180

Part 5: Appendices ��202

Appendix A Aboriginals Benefit Account Annual Report 2014–15 �� 203

Appendix B Aboriginal and Torres Strait Islander Land Account Annual Report 2014–15 ��215

Appendix C Office of the Registrar of Indigenous Corporations Annual Report 2014–15 �� 217

Appendix D Supporting the National Australia Day Council ��218

Part 6: Glossary and indexes �� 219

Compliance index �� 220

Index of figures �� 224

List of abbreviations �� 226

Glossary of key terms �� 228

Alphabetical index �� 230

ix

PART 1Overview for 2014–15

The Portfolio �� 1

The Department �� 2

1Part 1: Overview for 2014–15

The Portfolio

As at 30 June 2015, the portfolio comprised one

department of state, six other non-corporate

Com monwea lth ent it ies, eight cor porate

Commonwealth entities and three Commonwealth

companies under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The portfolio

also includes other statutory office holders and bodies.

Department of state

• Department of the Prime Minister and Cabinet

Other non-corporate Commonwealth entities

• Australian National Audit Office

• Australian Public Service Commission

• Office of National Assessments

• Office of the Commonwealth Ombudsman

• Office of the Inspector-General of Intelligence

and Security

• Office of the Official Secretary to the

Governor-General

Corporate Commonwealth entities

• Anindilyakwa Land Council

• Central Land Council

• Indigenous Business Australia

• Indigenous Land Corporation

• Northern Land Council

• Tiwi Land Council

• Torres Strait Regional Authority

• Wreck Bay Aboriginal Community Council

Commonwealth companies

• Aboriginal Hostels Limited

• National Australia Day Council Limited

• Outback Stores Proprietary Limited

Other statutory office holders and bodies

• Executive Director of Township Leasing

• The Aboriginal Land Commissioner

• Registrar of Indigenous Corporations

• Independent National Security

Legislation Monitor

• Remuneration Tribunal

• Defence Force Remuneration Tribunal

2 Part 1: Overview for 2014–15

Our Ministers

As at 30 June 2015, the portfolio had the following

Ministers and Parliamentary Secretaries:

• The Hon Tony Abbott MP, Prime Minister

• Senator the Hon Eric Abetz, Minister Assisting

the Prime Minister for the Public Service

• Senator the Hon Nigel Scullion, Minister for

Indigenous Affairs

• The Hon Michael Keenan MP, Minister Assisting

the Prime Minister on Counter-Terrorism

• Senator the Hon Michaelia Cash, Minister

Assisting the Prime Minister for Women

• The Hon Christian Porter MP, Parliamentary

Secretary to the Prime Minister

• The Hon Alan Tudge MP, Parliamentary

Secretary to the Prime Minister

The Department

The Department advises the Prime Minister, the

Cabinet, our Portfolio Ministers and Parliamentary

Secretaries, and the Government as a whole and

ensures government decisions are carried out. The

Department coordinates cross-portfolio efforts

to advance Australia’s interests, prosperity and

success. The Department aims to help develop

the capabilities of Aboriginal and Torres Strait

Islander people to improve their living standards and

wellbeing. The responsibilities of the Department are

set out in the Administrative Arrangements Order

of 23 December 2014.

Departmental structure

As at 30 June 2015 the Department had four

groups: Domestic Policy, National Security and

International Policy, Governance and Indigenous

Affairs. Details on each group’s role are provided

below. The Department’s structure is at Figure 1.1.

In addition to the National Office, the Indigenous

Affairs Group, through our Regional Network, has

offices across 12 regions, including a presence in

over 100 locations, with an in-community presence

in around 75 communities.

Domestic Policy Group

The Domestic Pol icy Group supported the

development of economic, environmental and

social policies. It coordinated the implementation

of a whole of government deregulation agenda, and

supported the Government’s priorities for gender

equality and the empowerment of women. The group

coordinated the Council of Australian Government’s

(COAG) arrangements and provided advice and

support for the Budget process and policy advice

for the G20.


National Security and International Policy Group

The National Security and International Policy

Group provided advice on Australia’s foreign, trade

and aid interests; the Prime Minister’s engagement

with foreign counterparts and business leaders;

international commemorative events; treaty matters;

defence; intelligence; non-proliferation; counter-

terrorism; law enforcement; information sharing;

cyber policy; border security and crisis management;

and coordinated the foreign affairs, trade and

national security aspects of the Budget.

Governance Group

The Governance Group provided advice on legal

policy; parliamentary and governance matters; and

honours and symbols policy. In addition it provided

support services to the Prime Minister, the Cabinet,

Cabinet committees and our Portfolio Ministers

and Parliamentary Secretaries. The group delivered

the Department’s enabling and support functions

and also oversaw the implementation and ongoing

delivery of key Government programmes, policies

and initiatives. During the 2014–15 reporting

period the group took responsibility for G20

operational matters.

Indigenous Affairs Group

The Indigenous Affairs Group was responsible

for most Commonwealth Indigenous-specif ic

policies and programmes. The group worked with

other Commonwealth departments, state and

territory governments, Indigenous communities

and organisations, and peak bodies to achieve the

Government’s priorities of getting adults into jobs,

children into school and making communities safer.


FIGURE 1�1 DEPARTMENTAL STRUCTURE AS AT 30 JUNE 2015 3,4

SecretaryMr Michael Thawley AO

Deputy Secretary (Economic)

Dr David Gruen

Industry, Infrastructure and Environment

DivisionFAS

Mr David Williamson

Economic DivisionFAS

Ms Nina Davidson

Interim Digital Transformation Office5

Interim CEOMr David Hazlehurst

Project OfficeAS

Ms Faye Liu2

Mr Nick Morgan

Head of Domestic PolicyMs Rebecca Cross PSM

Social Policy DivisionFAS

Mr Troy Sloan2

Office for WomenFAS

Ms Jenny Bloomfield2

Office of Best Practice Regulation

Executive DirectorMr Jason McNamara

Office of DeregulationFAS

Mr Peter Saunders

White Paper on Federation ReformFAS

Mr David de Carvalho

White Paper on Northern AustraliaFAS

Mr Jason McDonald2

White Paper on AgricultureFAS

Mr Paul Morris

National Ice Taskforce SecretariatFAS

Ms Alison Larkins

Deputy SecretaryDr Heather Smith PSM1

Deputy Secretary (Governance)

Ms Elizabeth Kelly

Cabinet DivisionFAS

Mr Jamie Fox

Corporate Services Division

FASMr Ben Neal

Financial Services Division

FASMs Amanda McIntyre

Government DivisionFAS

Ms Philippa Lynch

Ministerial Support Division

FASMs Pip Spence PSM


Associate Secretary (National Security & International Policy)Dr Margot McCarthy1

Associate Secretary (National Security and International Policy)Mr Allan McKinnon

International DivisionFAS

Ms Lynette Wood

National Security Division

FASMr Richard Sadleir

Cyber Policy and Intelligence Division

FASMs Lynwen Connick

Commonwealth Counter-Terrorism

CoordinatorMr Greg Moriarty

Office of the Counter-Terrorism

CoordinatorAS

Ms Sara Goldsworthy2

Associate Secretary (Indigenous Affairs)Ms Liza Carroll PSM

Principal Advisor – Indigenous Affairs

Ms Kerrie Tim

Programme Implementation

TaskforceFAS

Ms Susan Black

Schools, Information and Evaluation Division

FASMs Liz Hefren-Webb

Community Safety and Policy Division

FASMs Caroline Edwards

Housing, Land and Community Capability

Division FAS

Ms Marie Taylor

Deputy Secretary (Indigenous Affairs)

Mr Richard Eccles

RJCP Implementation Taskforce

FASMs Nadine Williams

Indigenous Employment and Recognition

FASMs Ngaire Hosking

Regional NetworkFAS

Mr Matt Cahill

Regional Managers6

Arnhem Land and Groote Eylandt

Mr Greg Broadfoot2

KimberleyMr Alistair Sherwin

Gulf and North Queensland

Ms Anne-Marie Roberts

Greater Western Australia

Mr Richard Aspinall

South AustraliaMs Marnie Wettenhall2

Eastern NSWMr Leon Donovan

Far North QueenslandMs Helena Wright

Top End and Tiwi IslandsMs Cate Heys

South QueenslandMr Andrew Hewitt2

Central AustraliaMr Mark Coffey

Western NSWMs Jackie Brodie2

Victoria and TasmaniaMs Rebecca Lannen

1 On leave as at 30 June 2015

2 Denotes acting arrangements

3 FAS – First Assistant Secretary

4 AS – Assistant Secretary

5 Interim office, reporting to Secretary of the

Commonwealth Department of Communications,

pending the establishment of the Digital

Transformation Office from 1 July 2015

6 Report to the Regional Network FAS


Outcome 1Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio

Ministers and Parliamentary Secretaries including through the coordination of government activities,

policy development and programme delivery.

Outcome 2Improve results for Indigenous Australians including in relation to school attendance,

employment and community safety, through delivering services and programmes, and through

measures that recognise the special place that Indigenous people hold in this nation.

Programme 1�1Prime Minister and Cabinet

Programme 2�1 Indigenous Advancement –

Jobs, Land and Economy

Programme 2�2Indigenous Advancement –

Children and Schooling


Safety and Wellbeing


Culture and Capability


Remote Australia Strategies


Programme Support

Outcome and programme structure

For 2014–15 the Department worked to achieve two

outcomes through the delivery of seven programmes

(see Figure 1.2). The outcome and programme

framework in the Portfolio Budget Statements (PBS)

and Portfolio Additional Estimates Statements

(PAES) for 2014–15 set out the performance

indicators and targets used to assess and monitor

the performance of the Department in achieving

the outcomes. The Department’s performance

report against these targets is provided at Part 2

of this report.

FIGURE 1.2 PM&C’S OUTCOME AND PROGRAMME FRAMEWORK

PART 2Performance report

Outcome 1: Prime Minister and Cabinet ��8

Outcome 2: Indigenous �� 22

8 Part 2: Performance report

In 2014–15 the Department worked to achieve

two outcomes: providing high quality advice to

government and improving outcomes for Aboriginal

and Torres Strait Islander people.

Outcome 1: Prime Minister and Cabinet

We worked to achieve this outcome through the

delivery of one programme: Prime Minister and

Cabinet. Our performance against this programme

was monitored and assessed through the programme

deliverables and KPIs published in the PBS.

For 2014–15 we met our nine deliverables and

10 KPIs. An assessment of how the Department

has performed against each deliverable and an

assessment of whether each KPI has been met is

provided below.

Programme 1�1: Prime Minister and Cabinet

The objectives of this programme were to:

• p rov i d e a d v i c e a n d s u p p o r t t o t h e

Prime Minister, the Cabinet, Portfol io

Ministers and Parliamentary Secretaries, and

coordination across Government on major

domestic, international and security policies

• provide support to the Cabinet and its

committees, the Federal Executive Council and

COAG to facilitate informed decision making

• provide support for the operations of the

Prime Minister’s official residences and to

former and designated Governors-General

official offices

• provide support for major events and meetings

and coordinate the logistical arrangements for

the Prime Minister’s overseas visits.

Highlights 2014–15

• delivery of the 2014 G20 Brisbane Leaders’

Su m m it i nvolv i ng the attendance and

participation of 34 world leaders and over

7,500 delegates, which was the most significant

meeting of world leaders ever held in Australia

• facilitating the unprecedented hosting of five

leaders (UK, Germany, India, China and France)

from the top 10 world economies within one week

around the G20 summit

• releasing the White Paper on Developing

Northern Australia by the Prime Minister and

the Deputy Prime Minister on 18 June 2015

• developing the Agricultural Competitiveness

White Paper (for release on 4 July 2015)

• supporting Australia’s contributions to addressing

global security challenges, including preparing

key foundational work on the threat posed by

foreign terrorist fighters and Daesh in Iraq

• supporting the Prime Minister’s engagement with

the Government’s international trade agenda,

including the conclusion and promotion of Free

Trade Agreements with Japan, Korea and China;

furthering negotiations on the TransPacific

Partnership and a bilateral agreement with

India; and consultations with domestic and

international business representatives

• supporting the Prime Minister’s founding of the

Commonwealth Science Council and setting of

national priorities for science and research

• supporting the Government to exceed its

$1 billion annual deregulation target.

9Part 2: Performance report

FIGURE 2�1 PROGRAMME 1�1 KPIs

Programme 1�1 Met

High quality, relevant and timely advice and support to the Prime Minister, including to

support him in his role as the Chair of the Cabinet and all committees, Portfolio Ministers and

Parliamentary Secretaries based on an objective and thorough understanding of issues and

whole of government perspective

ü

Regular, timely and collaborative communication and cooperation with other central agencies,

portfolio departments and other key stakeholders

ü

Coordination and support for COAG meetings ü

Leadership and coordination of the national security community to promote a national security

system that anticipates threats, responds effectively to crises and major security events, protects

the nation and shapes the world in Australia’s interest

ü

Advancement of the Government’s international priorities that promote Australia’s security,

prosperity, international profile and influence

ü

Advice and support for key stakeholders for state occasions, official visits, operations of the

Prime Minister’s Official Establishments and former Governors-General that is timely, relevant

and of high quality.

ü

Advance Australia’s interests through the G20 ü

Lead the implementation of government deregulation reforms including delivering on the

Government’s $1 billion net portfolio targets for reduction in the burden of regulation, repeal

days and Ministerial Advisory Bodies and a regulator performance framework

ü

High quality and timely advice to departments and agencies on best practice regulation making,

consistent with the requirements of the Australian Government Guide to Regulation and the

COAG’s Best Practice Regulation Guide

ü

Provide timely advice and funding to external stakeholders that provide programmes and support

to promote women’s economic empowerment and opportunity, reducing violence against women,

and women’s leadership and status

ü

Deliverable 1: Policy advice and support

To meet the objectives of this programme the

Department provided policy advice and support to

the Prime Minister, the Cabinet, Portfolio Ministers

and Parliamentary Secretaries across all areas of

the Department.

In relation to economic policy, amongst other things

we advised the Prime Minister on the fiscal outlook

and associated fiscal strategy, and matters being

considered through the 2014–15 Mid-Year Economic

and Fiscal Outlook and 2015–16 Budget, providing

a whole of government perspective to assist with

prioritisation of spending and revenue proposals.


We supported the Prime Minister in his role as co-

Chair of the Joint Commonwealth and Tasmanian

Economic Council in line with efforts to boost

Tasmanian economic and jobs growth and provided

support to the Prime Minister in administering his

Business Advisory Council meetings.

The Department supported the Prime Minister in

establishing the Commonwealth Science Council and

setting national priorities for science and research.

We worked with other departments on a whole of

government Digital Transformation Agenda, to

significantly improve the way citizens and businesses

interact with the Government online.

We supported the Prime Minister to deliver the first

Annual Statement to Parliament on Infrastructure

and to launch Infrastructure Australia’s f irst

National Audit. We supported the Government’s

work to protect the Great Barrier Reef, including

development of a world class blueprint for managing

and protecting the Reef over the next 35 years,

announced by the Prime Minister on 21 March 2015.

We also coordinated a whole of government approach

on setting Australia’s post-2020 emission reduction

target. Our United Nations Framework Convention

on Climate Change Taskforce undertook extensive

public consultation, including the release of an issues

paper, and is working closely with The Treasury and

the departments of Foreign Affairs and Trade, the

Environment, Industry and Science, Agriculture and

Infrastructure and Regional Development.

The Department supported Commonwealth efforts

to help communities recover after disasters including

the February 2015 Tropical Cyclone Marcia and the

April 2015 NSW east coast storms and floods. We

advised the Prime Minister on Australia’s domestic

and international response to the Ebola Virus

Disease Outbreak in West Africa and led the Ebola

Regional Contingency Planning Taskforce to prepare

a plan for responding to a possible case or outbreak

of Ebola in our region.

We also supported the Prime Minister on the Sixth

Community Pharmacy Agreement, the National

Mental Health Reform Commission’s Review of

Mental Health Programmes and Services, and

the Review of Medicines and Medical Devices

Regulation. Following the Government’s receipt of

the Productivity Commission’s reports into Childcare

and Early Childhood Learning in 2014, we worked

closely with the Department of Social Services to

analyse the findings and brief the Government. Our

analysis informed key components of the Families

Package, including substantial reform of the child

care system and introduction of a single mainstream

subsidy for child care.

The Department continued to play a major role

in strengthening Australia’s key international

relationships, supporting the Prime Minister’s

v isits to 15 di f ferent countries in 2014–15.

High-level business delegations accompanying the

Prime Minister helped take forward Australia’s

economic diplomacy objectives. We facilitated the

Prime Minister’s engagement with over 40 foreign

leaders to further Australia’s foreign, trade and

security interests during his attendance at the

East Asia Summit (EAS), APEC leaders’ meeting

and the G20.

We supported the Prime Minister’s major

international commitments to commemorate the

Centenary of the ANZAC landings in Gallipoli,

elevate Australia’s bilateral relationships with China

and with Singapore to Comprehensive Strategic

Partnerships, and conclude the Australia-India Civil

Nuclear Cooperation Agreement.

A dedicated taskforce was established in the

Department following the 17 July 2014 downing of

Malaysia Airlines Flight MH17 over Ukraine. The

taskforce coordinated Australia’s response and

advised the Prime Minister and the Cabinet on

key developments.


Completing a trifecta of north Asian free trade

agreements, in 2014–15 we supported the

Prime Minister’s role in the Japan-Australia

Economic Partnership Agreement and the China-

Australia Free Trade Agreement—landmark steps in

Australia’s economic relationships with the region.

The Department coordinated whole of government

consideration of Australia’s approach to the

Asian Infrastructure Investment Bank. Australia

announced it would become a founding member of

the Bank on 24 June 2015.

We provided policy advice and support to the

Prime Minister on a wide range of defence and

strategic issues, including: Australian Defence

Force overseas and domestic operations; the Defence

Force Structure Review; the First Principles Review,

the Defence White Paper 2015; the countering of

people smuggling; and the consolidation and reform

of Australia’s border protection agencies and services

announced in the 2014–15 Budget.

This year, we advised on cyber security incidents and

their impact on Australia, and led the Commonwealth

Government’s Cyber Security Review, including

consulting with over 180 organisations across the

public and private sector.

We supported the Prime Minister with key

ministerial changes and appointments during

2014–15 including:

• the swearing in of the Ministry on 23 December

2014 and resultant changes to the Administrative

Arrangements Order and a further swearing-in

ceremony on 28 May 2015

• the appointment of the Auditor-General. On the

Prime Minister’s advice, the Governor-General

appointed Mr Grant Hehir as Auditor-General

for the Commonwealth for 10 years, commencing

on 11 June 2015.

A continued priority during the year was assisting the

Government to manage its programme of legislation.

Photo 2�1 Dr Gao Hucheng, Minister of Commerce, People’s Republic of China; His Excellency Mr Xi Jinping, President of the People’s Republic of China; The Honourable Tony Abbott MP, Prime Minister of Australia; and The Honourable Andrew Robb AO MP, Minister for Trade and Investment; signing the Declaration of Intent on the conclusion of negotiations of the China-Australia Free Trade Agreement.


We contributed to whole of government advice to

the Prime Minister on a broad range of legal policies

and issues. We coordinated and progressed portfolio

legislation. We also assisted with the Government’s

consideration of the recommendations of the Royal

Commission into the Home Insulation Programme

and advice on Royal Commissions generally.

During the year we provided advice to Portfolio

Ministers on the operation of Australia’s honours

system and supported the representatives on the

Council for the Order of Australia, the Australian

Bravery Decorations Council and the National

Emergency Medal Committee. We also provided

secretariat services to the committees that consider

honours for public servants, such as the Public

Service Medal.

We provided information and advice about national

symbols, including the Australian National Flag and

the Australian National Anthem, including through

the website (www.itsanhonour.gov.au).

We provided advice on the appropriate use of the

Commonwealth Coat of Arms, including approval

for its use in educational material or for teams

representing Australia in international competitions.

Advice was also provided to Government agencies

regarding the Australian Government Branding

Design Guidelines.

Deliverable 2: Leadership and coordination of whole of government policy development

The Department played the coordinating role in a

number of the Government’s White Paper processes

including:

• Reform of the Federation

• Agricultural Competitiveness (for release on

4 July 2015)

• Developing Northern Australia (released on

18 June 2015)

• Coordinating the development of the Industry,

Innovation and Competitiveness Agenda released

by the Prime Minister and Minister for Industry

on 14 October 2014.

Photo 2�2 The Northern Australia Advisory Group meeting with the Prime Minister at Parliament House, 28 August 2014.


All of these processes involved extensive engagement

across the Commonwealth and wide ranging

consultation with stakeholders.

We also played a lead role in developing policies and

strategic priorities to enhance regional engagement,

national cyber security policy and strategy, national

security partnerships and major national security

related crises or emergencies.

In 2014–15, working closely with policy and national

security agencies we developed and exercised

responses in the event of cyberattack, advocated for

Australia’s interests in cyberspace in international

bilateral and multilateral dialogues, and helped shape

Australia’s operational cyber security capabilities.

As Chair of the Australian Government Crisis

Committee and the National Crisis Committee,

we ensured a coordinated Commonwealth whole

of government response to national security and

emergency events, including the Martin Place Siege,

the 2015 Melbourne terrorism arrests, bushfires in

South Australia and Western Australia, and Cyclones

Lam and Nathan.

We supported the National Security Committee

(NSC) of Cabinet in developing and coordinating

national security policy, including its response

to major crises such as the downing of Malaysia

Airlines Flight MH17, by advising the Prime Minister

and the Cabinet Secretary on the programming of

NSC business, reviewing and providing advice on

submissions, facilitating meetings, and preparation

and finalisation of minutes. We also provided support

to the Secretaries’ Committee on National Security,

which meets to discuss key strategic and defence

policy issues, including matters to be considered

by the NSC.

The Department supported the development of a

number of agreements between the Commonwealth

and state and territory governments, and advised

the Prime Minister and Commonwealth agencies on

policy issues with implications for Commonwealth–

state relations. We supported the Prime Minister at

the COAG meetings of 10 October 2014 and 17 April

2015, and supported eight Senior Officials Meetings

chaired by the Secretary of PM&C.

Photo 2�3 At its meeting on 17 April, COAG agreed to a national cooperative effort to reduce family violence, an issue of major public concern affecting communities across Australia.


The Department worked with the Department

of Social Services to lead COAG discussions and

negotiations on agreements to take the National

Disability Insurance Scheme from transition trials to

full implementation of the scheme around Australia.

As part of the Reform of the Federation White

Paper, we developed a series of five policy papers

that discussed opportunities for reform in the areas

of health, education (including preschool, schools,

vocational education and training and higher

education), housing and homelessness, COAG and

federal financial relations.

Deliverable 3: Support to Cabinet and the Federal Executive Council

The Department provides secretariat and support

services for the Cabinet, its six committees and sub-

committees and the Federal Executive Council. In

2014–15 we provided direct support to 234 Cabinet

or Committee meetings. Work involved programming

Cabinet business, reviewing and providing advice

on Cabinet submissions, including implementation

aspects across all portfolios, facilitating meetings,

preparing minutes, and coordinating the consideration

of appointments by the Cabinet. In doing this we

lodged 552 Cabinet documents and recorded 1,015

Cabinet minutes. Reports to the Prime Minister and

the Cabinet on the progress of key decisions of the

Government were also provided.

We also supported the Cabinet in streamlining

its templates and processes, as set out in the

updated Cabinet Handbook, and in introducing

a First Pass process that enables the Cabinet to

consider and discuss the direction of a proposed

major policy before committing resources to its

further development. In addition, we improved the

timeliness of the release of minutes for the Cabinet

and most of its committees, supported the delivery

of high quality and timely departmental briefs to

the Prime Minister ahead of Cabinet meetings, and

continued to explore options to improve the quality

of Cabinet submissions.

We coordinated 21 meetings of the Secretaries’

Committee on National Security. We also provided

administrative support to the Federal Executive

Council to assist the Council in advising the

Governor-General and supported the Council in

streamlining its processes, as set out in the updated

Federal Executive Council Handbook. In doing this

we supported 30 meetings of the Federal Executive

Council at which 449 papers were considered.

Further, we assisted the National Archives of

Australia in preparing the release of Cabinet

documents up to 1989, as Australia transitions from

a 30-year closed period to a 20-year closed period.

We also provided advice on applications made to

public service departments and agencies under the

Freedom of Information Act 1982 (FOI Act), which

captured Cabinet-related documentation.

Deliverable 4: Services for the Prime Minister, Portfolio Ministers and Parliamentary Secretaries

The Department continued to facilitate and

coordinate all correspondence, briefings and

parliamentary items between our Portfolio Ministers’

offices and the Department. In 2014–15 we processed

111,338 items of correspondence.

We coordinated Senate Estimates hearings and

supported all Portfolio Ministers’ Offices in relation

to parliamentary items. During 2014–15, the

Department saw a substantial increase in the number

of parliamentary Questions on Notice (QoN) received

from 239 in 2013–14 to 589 in 2014–15. We processed

564 Senate Estimates questions on notice including

170 items for Additional Estimates, 235 items for

Budget Estimates and 159 for Supplementary

Budget Estimates.


We provided advice to ministerial offices on media,

communication and community engagement to

support effective implementation of government

policies and programmes.

We draf ted 381 speeches and remarks, 661

written messages and 244 video messages for the

Prime Minister and Portfolio Ministers and provided

media support for each of the ministerial offices.

Other services provided for the Prime Minister,

Portfolio Ministers and Parliamentary Secretaries

included:

• policy and logistical support for the

Prime Minister’s Community Business

Partnership meetings

• preparation of seven reports to the Prime Minister

on the status of key government priorities and

identifying key priorities for the Government

over the next 12 months

• briefs for visits to defence establishments and to

those areas and communities affected by serious

bushfires

• briefs for the Prime Minister’s extensive

international, regional, bilateral and business

engagements, including over 40 bilateral

meetings in November 2014.

We provided ongoing support to the Prime Minister

and the Minister Assisting the Prime Minister

for Women, through the Office for Women, on

matters relating to women’s safety, economic

security and workforce participation and women’s

leadership. Further information is provided under

deliverable 8.

We also provided support to the Prime Minister

a nd the Pa rl ia menta r y Secreta r y to the

Prime Minister on whole of government measures

on deregulation. Further information is provided

under deliverable 9.

We coordinated the processing of FOI applications

to the Department and Portfolio Ministers and

provided advice to FOI decision makers for these

applications. We also coordinated FOI consultation

requests from other agencies, particularly concerning

the Cabinet document exemption.

The Department and Portfolio Ministers received

290 new FOI requests in 2014–15 and notified 208

access decisions, with 68 per cent of decisions

notified within the statutory deadlines under the

FOI Act. The percentage notified within statutory

deadlines for 2013–14 was 64 per cent. The figure was

incorrectly reported in the 2013–14 Annual Report

as 71 per cent.

Photo 2�4 The Prime Minister, The Honourable Tony Abbott, MP meeting with the Commonwealth Counter-Terrorism Coordinator, PM&C Mr Greg Moriarty, and The Minister Assisting the Prime Minister on Counter-Terrorism, The Honourable Michael Keenan M.P.


Deliverable 5: Heads of Government visits, official events and occasions

The 2014–15 year was an exceptional one for the

Department, both at home and overseas. We managed

visits by, and hospitality for, Guests of Government,

delivered support for major events, ceremonies

and state occasions and coordinated logistical

arrangements for the Prime Minister’s overseas visits.

We planned and coordinated 11 overseas visits by the

Prime Minister to 15 countries (some countries were

visited more than once). The Prime Minister was the

first Australian Prime Minister to address the United

Nations Security Council in New York and was the

first leader to visit the newly elected Prime Minister

of India. He attended the inauguration of the

Indonesian President and was at the forefront of

the ANZAC Centenary commemorations in Gallipoli

and Villiers-Bretonneux.

The Prime Minister travelled to the Netherlands

to pay his respects to the victims of the MH17

tragedy. He also travelled to Singapore to pay his

respects at the State Funeral of former Singaporean

Prime Minister Lee Kuan Yew. The Prime Minister

visited Iraq, where he met with Iraq’s Prime Minister

Abadi to discuss Australia’s contribution to coalition

efforts to assist Iraq in its fight against Daesh. The

Prime Minister led delegations to APEC (China)

and EAS (Myanmar) and visited the UK, Malaysia,

Papua New Guinea, the United Arab Emirates (UAE)

and New Zealand.

A programme of official Guest of Government (GoG)

visits in 2014–15 included the unprecedented hosting

of five leaders (UK, Germany, India, China and

France) from the top 10 world economies within

one week. We provided targeted briefing for the

Prime Minister and coordinated and supported

Australia-wide visit programmes that featured

tailored hospitality and ceremonies, each recognising

unique aspects of the specific bilateral relationship.

The delivery of further GoG visits was repeated

throughout the year for three Heads of States

(Ukraine, Norway, New Zealand), three Heads of

Government (Japan, Netherlands, Vietnam), and

14 ministerial level visitors (including World Trade

Organisation, China, Australia-United States

Ministerial Consultations, Australia-UK Ministerial

Consultations, UAE, Lithuania, Cambodia, Slovak

Republic, Latvia). Behind the scenes, we also

facilitated 177 private transit arrangements for

Heads of State/Heads of Government throughout

the year.

In addition to hospitality provided during the

GoG visits and visits of overseas delegations, we

arranged and delivered 53 events in support of

the Prime Minister. We arranged functions to

commemorate the tragic events of MH370, MH17

and the Martin Place Siege.

Four visiting leaders (from Japan, UK, China and

India) addressed the Parliament of Australia.

We continued to support the biannual COAG

meetings, the Prime Minister’s Christmas receptions,

Australia Day activities, and the Prime Minister’s

XI cricket match.

Sadly, the year saw the passing of several prominent

Australians, including former Prime Ministers

the Honourable Gough Whitlam AC QC and the

Right Honourable Malcolm Fraser AC CH, and in

consultation with the families, we arranged and

facilitated six State Funerals and Memorials.

We continued to support delegations with an interest

in the Cabinet decision-making process, policy

implementation and tracking outcomes from Cabinet

decisions. This year we hosted one delegation from

Yemen and presented to officials from the Pacific

island nations.

We also facilitated the Prime Minister’s engagement

in major and minor defence events and overseas

operational visits.


Deliverable 6: Official Establishments

We supported the operations of the Prime Minister’s

official residences: The Lodge in Canberra and

Kirribilli House in Sydney. We also provided

administrative support to former Governors-

General, including the provision of entitlements

(excluding pension entitlements).

Deliverable 7: G20

Austral ia’s G20 Presidency commenced on

1 December 2013, culminating in the 2014 G20

Leaders’ Summit in Brisbane on 15–16 November

2014. G20 Leaders agreed in Brisbane to work

in partnership to lift growth, boost economic

resilience, and strengthen global institutions.

The outcomes announced in Brisbane advanced

Australia’s interests and were welcomed by the

international community. Australia boosted our

relationships with G20 members, bilaterally and

collectively. We developed policy, and managed

the operational and security arrangements for

Australia’s role in the G20.

Photo 2�5 The Prime Minister speaking at Gallipoli.


We worked closely with the Prime Minister, his

G20 Sherpa and other Commonwealth Government

agencies to build consensus on the outcomes with

other G20 members. As part of the Brisbane Action

Plan, each G20 member committed to structural

reforms that together will add 2.1 per cent (or

more than US$2 trillion) to G20 GDP by 2018, if

implemented. Leaders agreed to continue their

work to make the international financial system

more resilient and agreed to a set of principles to

guide increased G20 collaboration on energy. Under

Australia’s G20 Presidency, significant progress was

made on the G20/OECD Base Erosion and Profit

Shifting Action Plan to modernise international

tax rules, and a new G20 Anti-Corruption Action

Plan was agreed. Leaders had a frank discussion in

Brisbane about how to strengthen the multilateral

trading system and, for the first time, had a G20

leaders-only retreat where they discussed their

domestic reform challenges.

We developed s t rong pa r t nersh ips w it h

Commonwealth, state and local governments and

agencies, as well as many non-government bodies, to

support Australia’s G20 Presidency. There were more

than 35 meetings of Ministers or officials, held across

Australia and in other countries during the year.

We worked particularly closely with The Treasury,

which organised meetings of G20 Finance Ministers

and Central Bank Governors, as well as meetings of

senior finance officials. We showcased Australia’s

major cities, our world class conference facilities,

and our ability to host major international events

safely and securely.

We coordinated G20 members’ engagement with

community stakeholders and delivered an extensive

public communications programme. We worked

closely with engagement groups in the G20 – the

Business 20, Think 20, Labour 20, Civil Society 20 and

the Youth 20 – to facilitate their participation. We

also hosted the official g20.org website and published

information in 14 languages about Australia’s

objectives. The website attracted 1.47 million visits in 2014. Community information forums were held

in Brisbane, and social media channels (Facebook

and Twitter) informed the public and the media,

particularly in the lead up to and during the summit.

The international media centre at the summit venue

catered for up to 3,000 media representatives.

Photo 2�6 The Right Honourable David Cameron MP, Prime Minister of the United Kingdom and the Honourable Tony Abbott MP, Prime Minister of Australia


To deliver a safe, secure and smooth-running

summit we established an operational presence in

Brisbane and worked directly with local authorities

including the Brisbane City Council, Queensland

Police, the Brisbane Airport Corporation, and the

local community.

We continue to lead Australia’s participation in the

G20, working closely with other agencies, as well as

with Turkey, the 2015 G20 President, and China,

the 2016 President.

Deliverable 8: Status of Women

We provided policy coordination on reducing

violence against women, as well as promoting

women’s economic empowerment and opportunity

and women’s leadership and status.

The Office for Women provided guidance to the

Prime Minister and the Minister Assisting the

Prime Minister for Women on the COAG agenda

on reducing violence against women, as well as

the implementation of the Second Action Plan

of the National Plan to Reduce Violence against Women and their Children 2010–2022. We also

supported the Australian Delegation to the United

Nations Commission on the Status for Women

and advised on the G20 Leaders’ commitment to

reduce the workforce participation gap by 25 per cent

by 2025.

We coordinated and monitored several whole of

government policies and strategic priorities, including

continued implementation and coordination of the

Australian National Action Plan on Women, Peace and Security 2012–2018, the release on 15 July 2014 of the

2014 Progress Report on actions taken to implement

that action plan and the Government’s commitment

to at least 40 per cent of Commonwealth Government

board positions filled by women.

We advised stakeholders and funded organisations

through the delivery of the Women’s Leadership

and Development Strategy. We also provided

funding to the Australian Women Against Violence

Alliance and the Australian and New Zealand Police

Commissioners’ event for White Ribbon Day to say

‘no’ to violence against women.

We worked closely with international counterparts

to ensure reducing violence against women, women’s

economic empowerment and opportunity and

women’s leadership and status featured strongly in

international meetings and agreements, including

in the United Nations, APEC forum and EAS.

Photo 2�7 Senator the Honourable Eric Abetz, Minister Assisting the Prime Minister for the Public Service, and Dr Heather Smith PSM at a function for The Queen’s Birthday 2015 Australian Public Service honours recipients.


Deliverable 9: Regulatory reform

Over the year the Office of Best Practice Regulation

put into place more efficient regulation and effective

regulatory management, by administering the

Commonwealth Government’s best practice

regulation requirements and COAG’s best practice

regulation requirements.

In 2014–15 we responded to the final assessment

request of agencies for regulation impact statements

(RISs) within the prescribed five-day limit in 38 of

39 cases. We also averaged a 4.5-day turnaround

on early assessment of RISs. In relation to COAG

proposals, our average response time was five

business days, compared to a target key performance

indicator of 10 days. We have continued to outpost

officers to assist agencies to prepare regulation

impact statements and post-implementation

reviews. There were 14 out-postings to a variety of

government agencies throughout the year.

In March 2015 we hosted the annual meeting

of regulatory reform units from all states and

territories as well as New Zealand. The meeting

provided delegates with an opportunity to review

development in regulation reform and deregulation

in their respective jurisdictions.

We worked closely with regional and international

counterparts to improve regulatory reform and

deregulation. This included hosting a successful

workshop with delegates from the Republic of Korea

in June 2015, sharing our experiences and furthering

constructive engagement with a key regional partner.

The Office of Deregulation coordinated the successful

2014 Spring and 2015 Autumn Repeal Days, as

well as the release of the Regulator Performance Framework (RPF), a key performance indicator-

based framework that supports regulators to adopt

improved, consistent, risk-based approaches when

administering regulation. We are working with

portfolios on the implementation of the RPF and

Photo 2�8 Australian and New Zealand Police Commissioners were joined by the Governor-General Sir Peter Cosgrove and Lady Cosgrove, the Prime Minister the Honourable Tony Abbott MP, the Leader of the Opposition the Honourable Bill Shorten MP, the Minister Assisting the Prime Minister for Women, Senator the Honourable Michaelia Cash, and Australia’s Ambassador for Women and Girls and Chair of OurWatch, Ms Natasha Stott Despoja, to take a united stand on violence against women and children on 24 November 2014.


to implement the Government’s decision to adopt

the principle that if a system, service or product

has been approved under a trusted international

standard or risk assessment, then our regulators

should not impose any additional requirements for

approval in Australia, unless it can be demonstrated

that there is a good reason to do so.

We continue to support portfolio deregulation units

to drive reform by developing technical guidelines;

conducting biannual community of practice events

for regulators, deregulation unit forums, and regular

head of unit meetings; as well as publishing repeal

day overviews, annual reports and guidance notes

on the Cutting Red Tape website.

We provided advice that led to each jurisdiction

in COAG in 2014 selecting specific small business

and manufacturing sectors to target in their work of

reducing regulation. The reforms focus on five themes

related to digital reforms; single service models;

mutual recognition and streamlining regulatory

requirements; reduction in processing times; and

streamlining planning approvals. Universities

will also benefit from a reduction in the burden of

reporting, as all jurisdictions agreed to consult

the cross jurisdictional Higher Education Data

Committee before requesting data that is often

already available. On 17 April 2015, COAG agreed

to improve the regulatory framework governing the

assessment and control of industrial chemicals,

and continue to reduce the regulatory burden for

small business.

Industry consultations on the red tape agenda

included a post-Repeal Day 2015 breakfast event

co-hosted with the Australian Chamber of Commerce

and Industry, and the Canberra Business Chamber.

Our work ensures that new policy proposals balance

the desired outcomes of regulation against the burden

imposed on potentially large numbers of businesses,

community organisations, families and individuals.

In conjunction with the 2015 Autumn Repeal Day,

the Government announced deregulatory savings of

$2.45 billion arising from decisions since September

2013, surpassing the Government commitment to

make red tape savings of at least $1 billion per year.

Photo 2�9 Parliamentary Secretary Assisting the Prime Minister on Deregulation, the Honourable Christian Porter MP, addressing representatives from businesses, associations and portfolio deregulation units at a post-Autumn Repeal Day breakfast co-hosted by PM&C, the Australian Chamber of Commerce and Industry and the Canberra Business Chamber on 19 March 2015.


Outcome 2: Indigenous

Indigenous affairs is a significant national priority.

The Commonwealth Government is committed to

working with Aboriginal and Torres Strait Islander

people to deliver real and positive change in their

communities. The Indigenous Affairs Group provides

advice and support to the Prime Minister, the

Minister for Indigenous Affairs, the Parliamentary

Secretaries to the Prime Minister and the Cabinet,

in order to implement the Government’s policies,

programmes and legislation. We are leading

Australia’s efforts to deliver outcomes in the key

areas of:

• getting children to school

• getting adults into jobs

• making communities safer

• recognising First Australians in our national

Constitution.

In 2014–15 this outcome was delivered through

the Indigenous Advancement Strategy (IAS) that

consolidated Indigenous policies and programmes

into five overarching streams, in order to make it

easier for organisations to deliver local services.

The five programme streams were:

• Jobs, Land and Economy

• Children and Schooling

• Safety and Wellbeing

• Culture and Capability

• Remote Australia Strategies.

A national IAS grant round in 2014–15 funded 996

organisations to deliver over 1,350 projects at a value

of $1.0 billion. In the IAS grant round, 55 per cent of

funding was allocated to Indigenous organisations

that make up 45 per cent of all organisations

receiving funding.

In keeping with our commitment to red tape

reduction, successful organisations were required

to enter into only a single funding agreement with the

Department, irrespective of the number of projects

they are supported to deliver. Each agreement

also contained simplified reporting requirements

so organisations can remain focussed on service

delivery on the ground.

The IAS represents a shift in programme focus. This

new approach seeks to ensure that investment has a

real effect by monitoring outcomes and the impact

on Indigenous people.

To improve outcomes for Aboriginal and Torres Strait

Islander people, the Government is engaging with

states and territories to focus on practical actions.

The Department supported the Prime Minister

at COAG where Indigenous affairs was a standing

agenda item, and engaged in a variety of multi and

bilateral discussions with the states and territories

to pursue better outcomes.

The substantial investment in the Northern Territory

(NT) will be refocussed on getting children to school,

adults into work, and keeping Aboriginal and Torres

Strait Islander children and communities safe

and healthy. We are negotiating a new National

Partnership Agreement with the NT Government on

Northern Territory Remote Aboriginal Investment

that will redirect funding from the National

Partnership Agreement on Stronger Futures in the

NT. We are also renegotiating the Remote Housing

National Partnership Agreement to provide greater

flexibility to respond to housing needs.

During 2014–15 we supported the Prime Minister

to lead the day-to-day running of Government from

north-east Arnhem Land, with senior Ministers and

government officials for almost a week. This provided

an opportunity for the Government to experience

first-hand the challenges facing Aboriginal and


Torres Strait Islander people living in remote

communities. This was at the invitation of highly

respected ceremonial leader of the Gumatj clan,

Mr Galarrwuy Yunipingu AM.

We continued to support the Prime Minister’s

Indigenous Advisory Council, which provides

advice to Government on practical changes to

achieve quality educational outcomes for Indigenous

children, address community safety issues and

ensure business and employment opportunities are

available to Aboriginal and Torres Strait Islander

people. Five meetings occurred in 2014–15, including

four with the Prime Minister.

We released the Closing the Gap: Prime Minister’s

Report 2015 and the statement in Parliament, both

delivered on 11 February 2015.

Our performance against the programmes that

made up this outcome were monitored and assessed

against the programme deliverables and KPIs

published in the PBS.

For 2014–15 we met all of our deliverables and the

majority of our KPIs. An assessment of how the

Department has performed against each deliverable

and an assessment of whether each KPI has been met

is provided below, structured under five programmes

that contributed to this outcome.

Programme 2�1: Indigenous Advancement: Jobs, Land and Economy

Through the Jobs, Land and Economy Programme

the Department worked to get Aboriginal and

Torres Strait Islander people into work, supported

Indigenous business, and assisted Indigenous people

to effectively manage their land.

The programme helped to connect working age

Aboriginal and Torres Strait Islander people with

real and ongoing jobs, fosters Indigenous businesses

and assists Indigenous people to generate economic

and social benefits from economic assets, including

Indigenous-owned land. This included helping

Indigenous people to leverage their land assets to

create economic and social benefits for themselves

and their communities and supported the recognition

of native title rights.

The Jobs, Land and Economy Programme

aimed to improve the vocational, workplace and

entrepreneurial skills of Aboriginal and Torres Strait

Islander people to improve employment outcomes

and support the development of Indigenous

businesses. The programme addressed gaps between

these services and targets additional investment

where it can maximise employment opportunities

for Aboriginal and Torres Strait Islander people. The

programme provided support for native title through

the funding of Native Title Representative Bodies

and Service Providers and capacity building of

Prescribed Bodies Corporate, who hold native title.

Photo 2�10 Ms Djapirri Mununggirritj, an Indigenous Engagement Officer in PM&C’s Regional Network, played a unique role when the Prime Minister led the Commonwealth Government from her traditional country of Gulkula by sharing her knowledge of the country and surrounding communities to ensure a successful visit for Government personnel. Officers like Djapirri are local role models who build relationships between their communities and the Commonwealth Government.


Programme components included demand-driven

employment funding, and the Remote Jobs and

Community Programme (RJCP).


• reforms to remote employment services that will

start to transform the economic life of remote

communities. From 1 July 2015, remote job seekers

will be active and engaged in meaningful work-

like activities that contribute to communities

and build real-life work skills and experience

• the establishment of the Employment Parity

Initiative, where the largest companies in

Australia will be supported to increase the

number of Aboriginal and Torres Strait Islander

people in their workforce to levels that reflect the

size of the Indigenous population (approximately

three per cent). The new Indigenous Procurement

Policy released on 25 May 2015 will increase the

number of contracts awarded to Indigenous

businesses, and generate more jobs for

Aboriginal and Torres Strait Islander people in

remote communities.


KPI 1 Met

Increase in the Indigenous employment and participation rates Not on track

Data to assess this KPI for 2014–15 will be available in April 2016, from the Australian Bureau of Statistics

(ABS) National Aboriginal and Torres Strait Islander Social Survey. The latest data available nationally

shows that the proportion of Aboriginal and Torres Strait Islander people aged 15–64 years who were

employed fell from 53.8 per cent in 2008 to 47.5 per cent in 2012–13. The proportion of Aboriginal and

Torres Strait Islander people aged 15–64 in the labour force was 60.1 per cent in 2012–13, down from

64.5 per cent in 2008. 1 However, over the longer term from 1994 to 2012–13, both employment and labour

force participation improved.2

The number of participants in RJCP remained steady over the year from 37,257 to 36,714 as at 30 June 2015.

60.9 per cent of these participants were engaged in RJCP activities, including 38.3 per cent in structured

participation activities, such as courses to improve employability, assisting at community events or

undertaking work experience.

KPI 2 Met

Number of employment places filled with assistance by the Indigenous Advancement –

Jobs, Land and Economy programme and proportion retained to 26 weeks

ü

In 2014–15, Jobs, Land and Economy Programme supported 19,087 employment placements. This included

307 Indigenous Cadetships. During this period, 8,439 26 week job outcomes were attained.

KPI 3 Met

Proportion of job seekers in employment, education or training three months following

participating in the Indigenous Advancement – Jobs, Land and Economy programme

ü

At 30 June 2015, the Jobs, Land and Economy Programme achieved a rate of 72.1 per cent of job seekers

still in employment/education/training three months following participation in a Jobs, Land and Economy

Programme demand-driven employment project.



KPI 4 Met

Number of Indigenous ranger jobs contracted ü

Through Working on Country we funded 759 full and part-time ranger positions and 86 full and

part-time Indigenous Protected Area positions with a further 1,367 casual Indigenous positions across

both programmes.

KPI 5 Met

Number of Native Title claims finalised ü

As of 30 June 2015, 24 determinations had been made in the 2014–15 financial year (13 determinations

where native title was found in the entire determination area, nine determinations where native title exists

in parts of the determination area, and two determinations that native title did not exist).

KPI 6 Met

Number of land claims being progressed or finalised under Commonwealth land rights

legislation and number of township leases being negotiated, agreed or in place

ü

There were 43 extant land claims being progressed towards finalisation under the Aboriginal Land Rights (Northern Territory) Act 1976. Two land claims were finalised in 2014–15. The Department is negotiating

six township leases including one lease that was agreed in principle. There were three township leases

over six communities in place. 1 Some care is required in assessing progress on employment outcomes. Participants in Community Development

Employment Projects (CDEP) have historically been classified in the ABS statistics as being employed. However policy

to gradually cease CDEP in non-remote areas between 2009 and 2013, and the subsequent introduction of the RJCP

in remote areas resulted in a large fall in the number of CDEP participants during this period. The decline in CDEP

participants from 2008 to 2012–13 accounted for 60 per cent of the decline in the Indigenous employment rate over this

period. The Indigenous employment rate in mainstream jobs (non-CDEP jobs) also fell over this period but this fall was

not statistically significant.

2 The data reported in these population level indicators was the latest data available. Note that due to the complexity

of national data collections there is a lag between the outcome being recorded (as part of a survey or administrative

collection) and publication of the data.

Deliverable 1: Increased Indigenous employment, business and economic development

The Jobs, Land and Economy programme increased

Indigenous employment, business and economic

development. Through this programme 16,484

Indigenous Australians were supported into jobs

in 2014–15.

The programme also provided support for native

title through funding of Native Title Representative

Bodies and Service Providers and capacity building

of Prescribed Bodies Corporate, who hold native

title.

Increased employment, business and economic

development were achieved through initiatives

such as:


• t he cont i nued i mplement at ion of t he

Government’s commitment to support around

5,000 Aboriginal and Torres Strait Islander people

to receive practical training for a guaranteed job

through Vocational and Employment Centres

(VTECs). This year saw eight additional VTECs

established, bringing the total to 29

• reforming the RJCP into the Community

Development Programme to deliver better

opportunities for remote job seekers and foster

stronger economic and social outcomes in remote

Australia through ensuring that:

~ job seekers were engaged in work-like

activities to learn new skills while being

active and contributing to their communities

~ job seekers were able to undertake activities

as hosted placements with local employers

to gain work experience and as a pathway to

real employment

• a commitment of $25 million per annum will

be available to help establish enterprises in

remote communities that can host work-like

activities, deliver real jobs and provide much

needed services to communities

• a new Commonwealth Indigenous Procurement

Policy, which requires at least three per cent of

all new domestic Commonwealth contracts to be

awarded to Indigenous enterprises by 2019–20.

Effective from 1 July 2015, the policy was

announced by the Minister for Indigenous Affairs

and the Minister for Finance on 17 March 2015

• the introduction of the Employment Parity

Initiative, which aims to achieve an additional

20,000 jobs for unemployed Aboriginal and

Torres Strait Islander people by 2020. Two

contracts were agreed with Accor Pacific and

Compass Group; both have a strong commitment

to employment parity and together committed

to 1,710 jobs for Aboriginal and Torres Strait

Islander people over three years

Photo 2�11 The Commonwealth hosted a booth at the Supply Nation Indigenous Business Tradeshow in Sydney on 26 May 2015. Representatives from PM&C and other participating departments met with Indigenous and non-Indigenous business owners and representatives of government entities, to talk about opportunities for increasing Indigenous supplier use and employment under the new Indigenous Procurement Policy. Officials pictured are Mr Paul Kruspe (Australian Taxation Office) and Mr Andrew Stephen (Australian Department of Human Services).


• the Indigenous Wage Subsidy (IWS) that

provided employers with a wage subsidy over

26 weeks for eligible Indigenous job seekers in

ongoing full time work or ongoing part-time work

of over 15 hours per week. Through the IWS, we

provided $8.1 million of funding to assist 1,309

employers to support their Indigenous employees

• a commitment of $82 million to 68 declared

and 21 consultation Indigenous Protected

Area projects and 104 Working on Country

ranger groups across Australia, to develop

and implement environmental management

plans. These supported Indigenous land and

sea management, Indigenous employment and

sustainable enterprise development.

Programme 2�2: Indigenous Advancement: Children and Schooling

The Department worked to get children to school,

improve education outcomes and support families

to give children a good start in life.

This programme supported activities that nurture

and educate Aboriginal and Torres Strait Islander

children, youth and adults to improve pathways to

prosperity and wellbeing. This included improving

family and parenting support; child care and early

learning; school education; youth engagement and

transition; and higher education. The programme

had a critical focus on increased school attendance

and improved educational outcomes that lead to

employment.

The Ch i ld ren and School i ng Program me

complemented a range of state, territory and

Commonwealth Government programmes, which

aim to improve the education outcomes and positive

development of Aboriginal and Torres Strait Islander

people. It provided opportunities to fill gaps between

existing services, enables innovation and leverages

further grant funding.


• work ing to l i f t school attendance and

attainment rates through revising the Schooling

Implementation Plan to the National Partnership

Agreement on Northern Territory Remote

Aboriginal Investment. This revised Plan will

complement the NT’s new 10-year Indigenous

Education Strategy, A Share in the Future

• securing agreement from COAG to work

bilaterally on the priority area of early childhood

and on the need for integration of services at the

local level, in line with Recommendation One of

the Forrest Review.


FIGURE 2�3 PROGRAMME 2�2 KPIS

KPI 1 Met

Indigenous school attendance rates in remote areas ü

The Remote School Attendance Strategy operated in 73 schools encompassing 69 communities across the

NT, NSW, Queensland, South Australia and Western Australia. Publicly available data for the NT and

Queensland Government schools participating in the strategy show there was a 13 per cent (in NT) and

8 per cent (in Queensland) rise in the number of students attending school from term 3, 2013 to term 3, 2014. 1

KPI 2 Met

Year 12 or equivalent attainment—number and proportion of Indigenous young people (aged

20–24) with year 12 or equivalent Australian Qualifications Framework Certificate II level

(or above)

On track

Data to assess this KPI for 2014–15 will be available in April 2016, from the ABS National Aboriginal and

Torres Strait Islander Social Survey. Nationally, the proportion of Aboriginal and Torres Strait Islander

people aged 20–24 who achieved Year 12 or equivalent increased from 45.4 per cent in 2008 to 58.5 per cent

(34,154 people) in 2012–13. 1

KPI 3 Met

Higher education—number and proportion of Indigenous 20–64 year olds with or working

towards post school qualification in Australian Qualifications Framework Certificate III

level or above

On track

Data to assess this KPI for 2014–15 will be available in April 2016, from the ABS National Aboriginal and

Torres Strait Islander Social Survey. In 2012–13, 133,687 or 43 per cent of Aboriginal and Torres Strait

Islander people aged 20–64 years reported they either had a non-school qualification at Certificate III

or above or were studying; a 17 percentage point increase from 2002.1

KPI 4 Met

Percentage of Indigenous students meeting National Minimum Standards in National

Assessment Programme – Literacy and Numeracy (NAPLAN)

û

Between 2008 and 2014, the proportion of Indigenous students at or above the National Minimum

Standards in reading and numeracy has shown no statistically significant improvement nationally in any

of the eight measures (Years 3, 5, 7 and 9 in reading and numeracy).1

The reasons for these results are complex, arising from a mix of historical, social and economic causes.

COAG has committed to halving the gap for Indigenous children in reading, writing and numeracy within

a decade (by 2018).

1 The data reported in these population level indicators was the latest data available as at 30 June 2015. Note that due

to the complexity of national data collections there is a lag between the outcome being recorded (as part of a survey or

administrative collection) and publication of the data.

Proportion of Indigenous students at or above National Minimum Standards, 2014 NAPLAN

Reading Numeracy

Year 3 74.7% 78.2%

Year 5 70.3% 71.1%

Year 7 77.1% 79.5%

Year 9 71.2% 76.2%


Deliverable 1: Increased Indigenous school attendance and improved educational outcomes

Analysis of My School semester 1 2013 compared

with semester 1 2014 attendance rates for Remote

School Attendance Strategy (RSAS) stage 1 schools

compared with non-RSAS schools suggests that

RSAS is having a meaningful and statistically

significant impact in the NT and Queensland. The

proportion of Indigenous adults with a post-school

qualification of Certificate III or above has increased

over the past decade. However, the proportion of

Indigenous students in Years 3, 5, 7 and 9 at or above

National Minimum Standards has not improved

between 2008 and 2014.

Action we have taken to improve our capacity to

achieve this target included:

• continuing to roll out the RSAS and supporting

over 500 local RSAS employees with accredited

training. The RSAS is operating in 73 schools

encompassing 69 communities across the NT,

NSW, Queensland, South Australia and Western

Australia

• supporting 170 Year 12 scholars in 2014 under the

Indigenous Youth Leadership Project, achieving

a completion rate of 95 per cent. Working

with states and territories on strategies for

improving educational and attendance outcomes

for Indigenous students, including improved

availability of data

• providing a range of scholarships to enable

Indigenous children to access high quality

education, including more than 1,350 secondary

students. An overal l completion rate of

96 per cent was achieved

• encouraging Indigenous students to stay engaged

with school though mentoring, providing role

models, and by using sport and recreation. For

example, there were over 80 Sporting Chance

Academies operating in schools across NT,

Western Australia, Queensland, Victoria, South

Australia and NSW. In 2014, 18,382 students

participated in Sporting Chance Academy

and education engagement activities. The

Government also supported the Australian

Indigenous Mentoring Experience to provide

mentoring to 595 secondary students on the

South Coast of NSW and the Gold Coast region

of Queensland

• increasing child and family engagement and

participation in education through the delivery

of child care and early learning programmes.

These included Indigenous playgroups, crèches

and parenting support services in the form of

early intervention and prevention programmes

as well as additional support for improving

educational outcomes for Indigenous children

attending preschool

• supporting universities to increase their

Indigenous enrolment and Indigenous completion

rates. In 2014 there were 15,043 Aboriginal and

Torres Strait Islander students enrolled at

university, which represents 1.48 per cent of

all domestic students, up from 1.41 per cent in

2013. In 2014, 2,023 Aboriginal and Torres Strait

Islander students completed university award

level courses.


Programme 2�3: Indigenous Advancement: Safety and Wellbeing

The objective of this programme was to ensure that

the ordinary law of the land applies in Indigenous

communities and ensure Indigenous people enjoy

similar levels of physical, emotional and social

wellbeing as those of other Australians.

Through this programme we supported activities

that will achieve outcomes such as, but not limited

to, the following:

• a reduction in harm from drug, alcohol and

substance misuse

• a reduction of of fending, v iolence and

victimisation in communities

• improved health, social and emotional wellbeing.

The Commonwealth Government will work together

with Aboriginal and Torres Strait Islander people

so individuals and communities can build their

future in their own way. Having a safe community

to live in is critical to closing the gap in Indigenous

disadvantage. It makes other important things

possible, like getting children to school, helping them

achieve good results, and getting adults into jobs.

Photo 2�12 The Derby Remote School Attendance Strategy team’s students participating in the 2015 Boab Festival Float parade.



• supporting remote policing with the construction

of two new police stations in the NT at the

communities of Yuendumu and Arlparra. In

addition, an agreement was reached in 2014–15

with the NT Government to build a new police

station at Wadeye

• reducing petrol sniff ing by providing low

aromatic unleaded fuel to more communities

across northern Australia. A bulk storage

facility for low aromatic unleaded fuel became

operational at Vopak Terminals in Darwin on

25 November 2014

• preparing and releasing the 2014 edition of the

Aboriginal and Torres Strait Islander Health

Performance Framework report, which included

assessment of determinants of health such as

education, employment and community safety

• providing access to healthy food, with 100 stores

licensed under the community stores licensing

regime. Licensing ensured stores maintained

standards that supported better nutrition and

health of people in remote communities in

the NT.


KPI 1 Met

Number of initiatives implemented in Indigenous communities to reduce violence. ü

At least 113 activities were delivered in 2014–15 in Indigenous communities, including victim support,

legal assistance, policing, crime prevention and rehabilitation.

KPI 2 Met

Number of organisations providing Indigenous specific alcohol and other drug treatment services

and activities

ü

In 2014–15, 92 organisations across Australia were funded to provide 98 alcohol and other drugs activities,

delivering both treatment and prevention services. The Department also collaborated with the NT

Government to support remote Aboriginal communities to implement local strategies that will make a

practical difference in tackling alcohol abuse.

KPI 3 Met

Number of sites providing low aromatic fuel ü

In 2014–15 there were 151 retail sites receiving low aromatic unleaded fuel throughout regional and remote

Australia. This represented an increase of 14 sites from the previous financial year.


Deliverable 1: Reduced levels of offending, violence and substance abuse

While we have had some good results in 2014–15,

national levels of offending, violence and substance

misuse continued to be disproportionately high

for Indigenous people. Through the Safety and

Wellbeing Programme we invested in activities that

aimed to address violence, including decreasing

reoffending, addressing alcohol and substance

misuse, supporting victims and reducing child abuse

and neglect.

This included:

• al locating a total of $68m to provide 92

Indigenous drug and alcohol treatment services

such as residential rehabilitation, counselling,

referral, transitional aftercare and sobering up

shelters across the country

• coordinating the provision of low aromatic fuel

to 151 sites across Australia

• funding 160 Social and Emotional Wellbeing

Counsellor positions primarily located in over

90 Aboriginal Community Controlled Health

Organisations and for eight Link Up services

across Australia to provide counselling, family

tracing and reunion services to members of the

Stolen Generations

• activities to address domestic violence, including

14 family violence prevention legal services and

services in 90 communities to raise awareness

and reduce acceptance of family violence

• activities designed to reduce offending and re-

offending and change violent attitudes, including

nine prisoners through care services and 18 youth

prevention and diversion activities

• community night patrols in 81 communities to

respond to violence and other community safety

concerns

• jointly funding with the NT Government

the continuation of up to eight Community

Engagement Police Off icers to help build

better relationships between police and remote

communities

• funding 149 sport and active recreation projects.

This funding included the employment of more

than 180 Aboriginal and Torres Strait Islander

people and provided access to sport and active

recreation activities to over 120,000 Aboriginal

and Torres Strait Islander people to assist in

improving health outcomes

• providing access to healthy food, with 100 stores

licensed under the community stores licensing

regime.

Total investment in Safety and Wellbeing initiatives

in 2014–15 was approximately $248 million.

Programme 2�4: Indigenous Advancement: Culture and Capability

The objective of this programme is to support

Aboriginal and Torres Strait Islander people to

maintain their culture and participate equally in

the economic and social life of the nation and to

ensure that Indigenous organisations are capable

of delivering quality services to their clients.

This programme supported acknowledgement of the

unique place Indigenous peoples have in Australian

society and gives them a strong and representative

voice. Grant funding provided for strategies known

to positively impact Indigenous participation and

acceptance, such as positive and respectful forms of

engagement, supporting Indigenous capacity at the

individual, family, community and organisational

levels, and enhancing governance and leadership

skills to maximise the chances of achieving real

and sustainable change for the better.


The Empowered Communities design process was

completed, with Indigenous leaders submitting

their report to Government in March 2015. The

Commonwealth Government is considering this

report, available on the Department’s website.

The Department also continued to support the

Cape York Welfare Reform initiative, which aims

to restore local Indigenous authority, rebuild social

norms, encourage positive behaviours and increase

economic participation.


• the delivery of the Final Report of the Aboriginal

and Torres Strait Islander Peoples Act of

Recognition Review Panel on 9 September 2014

• the enactment of an extension to the Aboriginal and Torres Strait Islander Peoples Recognition Act 2013

• the tabling of the Final Report of the Joint Select

Committee on Constitutional Recognition of

Aboriginal and Torres Strait Islander Peoples

• assisting over 570 organisations to conduct

National Abor ig inal and Islander Day

Observance Committee (NAIDOC) events to

celebrate the history, culture and achievements

of Aboriginal and Torres Strait Islander people.

The 2014 theme, Serving Country: Centenary & Beyond, recognised Aboriginal and Torres

Strait Islander men and women who served in

Australia’s military conflicts and engagements

• funding the Aboriginal and Torres Strait Islander

Healing Foundation for 60 healing projects

across Australia, supporting the participation

of 4,848 Aboriginal and Torres Strait Islander

children, women and men in healing activities.

Photo 2�13 Award winning Breakfast Show presenter Sai Matainavora on air at Doomadgee Radio, actively promoting local school attendance. The Department helped fund the operations of Doomadgee Radio, and congratulates Sai on increasing school attendance. Doomadgee Radio is part of the Black Star Radio Network operating throughout Cape York and the Gulf regions.



KPI 1 Met

Release of a draft proposal for a constitutional amendment to recognise Indigenous peoples and

completion of a review under the Aboriginal and Torres Strait Islander Peoples Recognition Act 2013ü

The Review under the Aboriginal and Torres Strait Islander Peoples Recognition Act 2013 was finalised in

2014. The Joint Select Committee on Constitutional Recognition of Aboriginal and Torres Strait Islander

Peoples built multi-party consensus on particular referendum proposals. On 25 June 2015, the Final Report

of the Joint Select Committee on Constitutional Recognition of Aboriginal and Torres Strait Islander

Peoples was tabled, providing a range of recommendations and options for recognising Aboriginal and

Torres Strait Islander people in the Constitution.

KPI 2 Met

Number of cultural projects and activities supported ü

The Department supported around 734 cultural activities comprising: 570 NAIDOC events, 58 Indigenous

community broadcasting services and 106 heritage, healing, festivals and other cultural activities.

KPI 3 Met

Increased proportion of Indigenous organisations receiving significant funding from the

Commonwealth Government under this outcome, which are registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006

ü

There were 996 organisations funded under the IAS. Of these, 214 organisations (22 per cent) were

incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006. This represented a

net increase from 174 Indigenous organisations incorporated under the legislation that received funding

prior to the IAS.

Deliverable 1: Progress towards a referendum on constitutional recognition

The Constitutional Recognition Taskforce continued

to support progress towards a referendum on

constitutional recognition.

In September 2014, a Review Panel (established

under the Aboriginal and Torres Strait Islander People Recognition Act 2013 in March 2014 to assess the

nation’s readiness) delivered its Final Report to the

Government, identifying a number of preconditions

for a successful referendum. Recognising the need

to build multi-partisan consensus, the Joint Select

Committee on Constitutional Recognition of

Aboriginal and Torres Strait Islander Peoples was

reestablished in December 2013. The Committee

inquired into steps that can be taken to progress

towards a successful referendum and undertook

public consultations. The Committee’s Final

Report, tabled on 25 June 2015, made a number of

recommendations and put forward a range of options

for constitutional change. The Commonwealth

Government will carefully consider the Final Report.

We supported the Minister for Indigenous Affairs

to introduce an amendment to the Aboriginal and Torres Strait Islander Peoples Recognition Act 2013. The amendment was overwhelmingly passed by

Parliament in March 2015, ensuring that legislative

recognition continues until a referendum can be

held, and reaffirming Parliament’s commitment to

constitutional recognition.


We continued to work closely with Reconciliation

Australia, which delivers the ‘Recognise’ campaign.

On 11 December 2014, the Prime Minister announced

an additional $5 million of funding to Recognise

to build grassroots and nationwide understanding

of why recognition is important and what it would

achieve. This included progress of the ‘Journey to

Recognition’ across Australia to build nationwide

understanding of why recognition is important and

what it will achieve.

Deliverable 2: Participation in society

The Culture and Capability Programme aims to

improve participation in society and acceptance of

Aboriginal and Torres Strait Islander people through

funding for reconciliation, leadership, interpreters,

Indigenous broadcasting services, community

events such as NAIDOC, healing, heritage and other

cultural activities. Strong culture, and activities

that promote respect for culture, help to provide

a positive future for Aboriginal and Torres Strait

Islander communities.

The Department funded the Aboriginal and Torres

Strait Islander Healing Foundation to provide grants

for 60 healing projects across Australia, which in turn

supported the participation of 4,848 Aboriginal and

Torres Strait Islander children, women and men in

294 healing activities.

We celebrated the history, culture and achievements

of Aboriginal and Torres Strait Islander men and

women by assisting over 570 organisations to conduct

NAIDOC events . The 2014 theme, Serving Country: Centenary & Beyond, recognised Aboriginal and

Torres Strait Islander men and women who served

in Australia’s military conflicts and engagements.

For example, in NSW, the Wagga Wagga City Council,

in conjunction with Mawang Gaway, Kapooka and

Royal Australian Air Force Wagga, commemorated

NAIDOC with a street march, wreath laying and flag

raising at the Victory Memorial Gardens. In the NT,

the community of Yirrkala celebrated the service

of Yolngu warriors in the Special Reconnaissance

Unit that, led by Squadron Leader Donald Thomson,

patrolled Australia’s remote northern coastline during

World War 2.

Photo 2�14 The Minister for Indigenous Affairs, Senator the Honourable Nigel Scullion recognising the success of the remote school attendance strategy at Gunbalanya School in West Arnhem Land by presenting excellence awards for attendance to their students.


We supported employment and training projects,

cultural activities and Indigenous corporations to

expand through $15.5 million in Aboriginals Benefit

Account (ABA) grants.

Deliverable 3: Organisational capability

The Department implemented the Government’s

Strengthening Organisational Governance

policy to strengthen the governance capability of

organisations. Under the policy, all organisations

receiving grants of $500,000 (GST exclusive) or more

in a single financial year from funding administered

by the Department are required to incorporate under

Commonwealth legislation.

Programme 2�5: Indigenous Advancement: Remote Australia Strategies

The objective of this programme is to make strategic

investments in local, flexible solutions based on

community and Government priorities and support

for remote housing strategies.

This programme supported the provision of

infrastructure, housing, telecommunications and

home ownership in remote Indigenous communities,

as well as the development of local and regional

place-based approaches.

This programme funded activity leading to one or

more of the following outcomes:

• increased home ownership, particularly on

Indigenous owned land

• improved Indigenous telecommunications

activities to remote areas

• discrete support for remote infrastructure,

including renewable energy systems

• flexible, place-based agreements with Indigenous

communities and regions to improve Indigenous

school attendance and attainment, employment,

community safety and other enabling services.


• the quality of housing for Indigenous people

in remote communities was improved through

providing 259 new houses, 419 refurbishments,

and 74 upgrades of houses under the National

Partnership Agreement on Remote Indigenous

Housing (NPARIH)

• the Western Austral ia, South Austral ia,

Q ue en s l a nd , Vic t or i a a nd Ta sm a n i a

Governments accepted responsibility for the

delivery of municipal and essential services in

Indigenous communities. As a result states will

be responsible for providing these services, just

as they are in any other town or city in their state.

The only exception is the Anangu Pitjantjatjara

Yankunytjatjara (APY) Lands in South Australia,

where the Commonwealth will continue to

provide this funding until agreement can be

reached with the South Australian Government

Photo 2�15 Professor Marcia Langton AM, Mr Andrew Forrest and the Honourable Alan Tudge MP, Parliamentary Secretary to the Prime Minister, supporting improvements in training and employment parity between Indigenous and non-Indigenous Australians.


• remote accessibility was improved through

completing the repairs and maintenance of 240

renewable energy systems, 546 telephones and

providing internet training and access to 102

remote Indigenous communities across Australia

• vital infrastructure was provided though working

with the community of Canteen Creek and

the Australian Army to deliver a community

centre, classroom, workshop, service provider

accommodation and road upgrade as part of

the Army Aboriginal Community Assistance

Programme (AACAP).


KPI 1 Met

Number of standardised tenancy agreements in place in relation to houses located on

Indigenous land

ü

Since NPARIH commenced, 9277 standardised tenancy agreements have been put in place in relation to

houses located on Indigenous land.

KPI 2 Met

Number of community based Indigenous Advancement Strategies developed ü

The Department continued to actively engage with communities and stakeholders to guide the practical

action taken in communities to address the Government’s priority areas of education, employment and

community safety.

KPI 3 Met

Number of new home owners on Indigenous land û

The Department’s focus was on addressing the impediments to Indigenous home ownership on Indigenous

land. The Department worked with Indigenous Business Australia and relevant jurisdictions to implement

policies to help reduce the barriers to home ownership on Indigenous land. Work aimed to reform the

delivery of Indigenous home loans in remote areas, develop and implement policies to allow the sale of

social housing policies and provide advice to potential home owners to assist individuals to make informed

decisions. Despite these efforts, there was only one additional Indigenous home ownership outcome

achieved on Indigenous land in 2014–15.

Deliverable 1: Investment in local, flexible solutions based on community priorities

Through the IAS, solutions were developed across

all programme areas, to address community needs

across Australia.

Some of the measures taken to address Indigenous

community investment priorities included the

negotiation of agreements with state governments

for the delivery of municipal and essential services,

maintenance of renewable energy systems and

phones. Through the AACAP we built a community

centre, classroom, workshop at Wutunugurra and a

road upgrade at Canteen Creek, NT.


An example was in Haasts Bluff where the only store

in the community used to operate out of an old, run

down tin shed. This created a number of food hygiene

and occupational health and safety issues. Through

funding from the ABA Stores Infrastructure Project,

the Department delivered a new purpose-built store

to improve food security and strengthen the financial

viability of the community-owned store business.

The store design improved operational efficiency and

was nominated for a Northern Territory Architecture

Award. This recognised not only the architect,

but also the consultation that occurred with the

community and traditional owners in order to ensure

the design meets the community’s needs.

The new store also created local employment. In

total, 10 local people – about 20 per cent of the

workforce – were employed through this project

(as well as another store in Papunya). The Haasts

Bluff store is one of 18 stores built or upgraded in

Indigenous communities across the NT as part of

the ABA Stores Infrastructure Project.

Deliverable 2: Investment in remote housing

To improve housing for remote Indigenous residents,

we funded the states and the NT, which delivered

259 new houses and 419 refurbishments and

rebuilds in remote Indigenous communities under

the NPARIH. The National Partnership delivered

approximately two-thirds of the 10-year target of

4,200 new houses by 30 June 2018, and has exceeded

the target of 4,876 refurbishments. The NPARIH

also delivered employment related accommodation

facilities of over 197 bedrooms in 43 houses/units and

one hostel. In addition, 74 upgrades were completed

under the National Partnership Agreement on

Stronger Futures in the Northern Territory, along

with the delivery of ongoing asbestos removal works.

Photos 2�16 A store in Haasts Bluff, a remote Indigenous community in Central Australia, built under the ABA Stores Infrastructure Project.

PART 3Management and accountability

Corporate governance ��40

Management of human resources, work health and safety ��43

Procurement and grants ��51

Ecologically sustainable development and environmental performance �� 53

40 Part 3: Management and accountability

Corporate governance

The Department promotes a culture that encourages

and supports all staff to be accountable for their

actions; to act with integrity, trust, honesty and

respect; commit to excellence; focus on performance;

and ensure the efficient and ethical management of

people and resources. Elements of our corporate

governance framework include business planning,

audit and assurance activities, risk management,

fraud prevention and control, committees,

Secretary’s Instructions, policies and guidelines

and staff performance agreements and assessments.

Committees

To support the Secretary in the achievement of our

objectives, we have a number of committees. These

are outlined in Figure 3.1.

FIGURE 3�1 DEPARTMENTAL COMMITTEES

Committee Purpose

Executive Leadership Group Considers strategic issues impacting on the Department, including

any ongoing or emerging risks, and monitors performance in

delivering outcomes.

Senior Management Group Discusses key business issues, including business priorities, key

commitments and any ongoing or emerging risks.

Audit Committee Provides independent assurance and assistance to the Secretary

on the Department’s financial and performance reporting

responsibilities, risk oversight and management, and system of

internal control.

Financial Statements

Sub-Committee

Oversees, reviews, reports and advises the Audit Committee on

the planning, management and finalisation of the Department’s

annual financial statements process and certificate of compliance

process.

Operations Committee Considers, oversees and provides advice to the Secretary and the

Executive Leadership Group on matters relating to all aspects

of the Department’s operations including, but not limited to,

Financial Management, Human Resources, Security, Corporate

Services Improvements and Programme Management.

External Budgets Sub-Committee A sub-committee of the Operations Committee that advises

the Operations Committee on the planning, management

and clearance of key PM&C Commonwealth Budget related

deliverables.

41Part 3: Management and accountability

FIGURE 3�1 DEPARTMENTAL COMMITTEES

Committee Purpose

National Health and Safety

Sub-Committee

A sub-committee of the Operations Committee that facilitates

discussion and cooperation regarding work health and safety

(WHS) issues and assists in developing Health and Safety

Management Arrangements through consultation with all staff.

Compliance Sub-Committee A sub-committee of the Operations Committee that supports the

Operations Committee in providing assurance to the Secretary

and Executive Leadership Group regarding the Department’s

performance and its compliance with internal and external

requirements.

Risk management

The Department’s risk management framework

is consistent with the international standard ISO

31000:2009, and outlines the Department’s approach

to effective risk management providing the basis for

integrating risk management into the Department’s

business activities. Risk is considered in key

decision-making activities and, in particular, when

undertaking policy development and giving policy

advice; in planning for and undertaking significant

projects and procurements such as major events and

taskforces; when outsourcing services, managing

contracts and delivering programmes; and when

providing secretariat and support services.

The Department’s risk management plan is updated

annually. The 2014–15 update was informed by

feedback from senior managers, outcomes from the

Department’s annual internal audit programme, as

well as the views of the Secretary, Audit Committee

members and the Executive Leadership Group.

The Audit Committee recommends the plan for

approval by the Executive Leadership Group and

monitors the implementation of treatment strategies

and tracks risks. The 2014–15 plan was approved on

19 September 2014.

Ethical standards

The Department is committed to promoting and

maintaining the standard of behaviour outlined in

the APS Values and APS Code of Conduct, as set

out in the Public Service Act 1999. The Department

is a member of the Ethics Contact Officer Network,

which plays a key role in supporting the ongoing

work of the Ethics Advisory Service and provides

best practice advice on ethical matters.

Complaints management

To ensure we continue to improve our services

to the Australian people, we have a complaints

and feedback system. In 2014–15 our complaints

staff recorded and processed 70 matters. Further

information is available on the Department’s website.

Fraud prevention and control

We review the Department’s fraud control plan every

two years and undertake ongoing risk assessments

to support the plan. As part of the review process,

we conduct extensive consultations with programme

risk managers and subject matter experts on a six-

monthly basis to evaluate existing risk trends and

emerging risks and to put in place appropriate

strategies to manage them.


The Department’s fraud awareness strategy provides

for training and regular fraud-related messages

to staff. The training uses delivery methods

including face-to-face, video-conferencing and

an e-Learning package to meet different staff

training needs in national offices and across the

network. We investigate allegations of fraud and

criminal behaviour involving the Department and

organisations and individuals who receive funding

and services through our programmes. Risks

identified and lessons learned through investigations

are reported to the Compliance sub-committee and

programme and network areas.

External scrutiny

External audit

During 2014–15 the Australian National Audit

Office conducted two portfolio-specific performance

audits. The first performance audit was on Food

Security in Remote Indigenous Communities. This

audit assessed the effectiveness of the Department’s

implementation of food security initiatives for

remote Indigenous communities. The final report

was tabled in Parliament in September 2014. The

second performance audit was on the Delivery of

the Petrol Sniffing Strategy in Remote Indigenous

Communities. This audit assessed the effectiveness

of the Department’s management of initiatives to

supply low aromatic fuel to Indigenous communities.

The f inal report was tabled in Parliament in

May 2015.

The Department was also involved in a multi-

portfolio performance audit on the Administration of

the Early Years Quality Fund. This audit assessed the

effectiveness of the establishment, implementation

and operation of the Early Years Quality Fund

against the requirements of the Early Years Quality Fund Special Account Act 2013 and the Commonwealth

grants administration framework. The final report

was tabled in Parliament in February 2015.

Other external scrutiny

There were no judicial or administrative decisions of courts or tribunals during the reporting period that had a significant impact on our operations.

Agencies subject to the FOI Act are required to publish information to the public as part of the Information Publication Scheme. Information for the Department is available at www.dpmc.gov.au.


Management of human resources, work health and safety

Our people

As at 30 June 2015, 2,086 employees were engaged in ongoing functions. This is a decrease from 2,141 employees as at 30 June 2014.

A further 109 staff were employed in associated functions within the Department. There were also 129 inoperative staff. These figures are based on headcount and include part-time and non-ongoing employees. Further information is provided at Figure 3.2.

We have a diverse workforce with approximately 66 per cent female representation, 59 per cent under 45 years and 15 per cent identifying as Indigenous.

We have staff working right across Australia. Approximately 70 per cent of staff are located in Canberra with the remaining staff in capital cities as well as regional and remote areas. Further information is provided in the human resources workforce profile at Figure 3.3.

FIGURE 3.2 STAFF DISTRIBUTION FIGURES (BASED ON HEADCOUNT) PM&C functions Number of staff at 30 June 2014 Number of staff at 30 June 2015

Ongoing functions 2,141 2,086

Associated functions 2391 1092

Inoperatives3 87 129

Total 2,467 2,324

Notes:

1 The figure for 2013–14 includes two employees for the White Paper on Agricultural Competitiveness, three employees for the White Paper on Developing Northern Australia, 12 employees for the White Paper on the Reform of the Federation, 14 employees for the COAG Reform Council, and 208 employees for the G20 Taskforce.

2 This figure for 2014–15 includes one employee for the White Paper on Agricultural Competitiveness, six employees for the White Paper on Developing Northern Australia, 14 employees for the White Paper on the Reform of the Federation, four employees for the COAG Reform Council, and 84 employees for the Programme Implementation Taskforce.

3 Includes staff on paid leave greater than three months (maternity leave, long service leave, annual leave) and staff on leave without pay (external temporary transfers, overseas travel or study) and other temporary employment in the interests of the APS.


FIGURE 3.3 WORKFORCE PROFILE (BASED ON HEADCOUNT) Workforce profile1 At June 2014 At June 2015

Ongoing Non-ongoing

Total Ongoing Non-ongoing

Total

Job classification

Secretary 1 0 1 1 0 1

SES Band 3 7 0 7 8 1 9

SES Band 2 24 0 24 30 0 30

SES Band 1 85 1 86 87 0 87

EL2 305 12 317 344 12 356

EL1 660 52 712 687 35 722

APS4–6 1,088 111 1,199 935 105 1,040

APS1–3 74 12 86 52 9 61

Graduate 35 0 35 18 0 18

Total 2,279 188 2,467 2,161 162 2,324

Location

ACT 1,550 47 1,597 1,522 101 1,624

NSW 112 6 118 97 5 102

QLD 147 110 257 102 11 113

VIC 28 1 29 27 0 27

Other jurisdictions 442 24 466 413 45 458

Overseas 0 0 0 0 0 0

Total 2,279 188 2,467 2,161 162 2,324

Staff age profile

Age < 25 72 7 79 44 13 57

Age 25 – 34 675 75 750 639 48 687

Age 35 – 44 629 47 676 601 36 637

Age 45 – 54 580 34 614 563 29 592

Age 55 – 64 299 23 322 290 34 334

Age 65 + 24 2 26 24 2 27

Total 2,279 188 2,467 2,161 162 2,324

Equal employment opportunity group participation and workplace arrangements

Female 1,517 106 1,623 1,429 114 1,543

Non-English speaking background 152 9 161 109 6 115

Indigenous 334 20 354 321 25 346

People with a disability 78 1 79 74 3 77

Working part-time 265 10 275 254 24 278

Employees volunteering personal

data

84% 84%

Notes:

1 Figures include staff employed in ongoing and associated functions, staff who are inoperative and the Secretary.


Developing our staff

The Department is committed to the personal and

professional development of all employees. Our

approach to building capability is underpinned by

the 70:20:10 learning framework, which indicates that

employee development is most effective when there is a

balance between the time spent in on-the-job learning

(70 per cent), mentoring, coaching and peer learning

(20 per cent) and formal classroom and online

learning (10 per cent).

In 2014–15 our employees benefited from a range of

inhouse and external development opportunities

including secondments, taskforce and cross-agency

project work, formal classroom and online training,

internal masterclasses, leadership development,

mentoring and career coaching, leave and financial

support for study, and access to professional

membership benef its. These activities were

supported by development of the People Strategy 2014–16, which provides the vision to enable and

support development of our people.

Learning and development

In 2014–15 the Department del ivered more

than 100 classroom-based training courses to

employees Australia wide, and achieved our target

of 22.5 per cent of courses being delivered to our

regional network. These courses were delivered in

response to employee demand and learning needs

across a variety of categories including:

• APS foundation and core ski l ls such as

relationship building, change management,

com mu n icat ion, decis ion-ma k i ng a nd

performance management training

• compliance training

• diversity training

• IT systems training

• specialist policy, project management and

ministerial writing skills training.

Internal subject matter experts delivered a variety

of in-house seminars and workshops through a

masterclass series. These events shared internal

expertise to enhance employee knowledge of our

key roles, responsibilities, systems and processes.

In 2014–15 the Department updated its online

learning resources to provide employees with access

to 34 interactive, accessible and self-paced online

training courses. These courses were developed

in response to the growing demand for online

training options in the regional network, and offered

employees the opportunity to complete compliance,

leadership, management, APS core skills and

Microsoft Office training online.

Leadership development

Leadership development was a strong focus in

2014–15. A number of internal and external leadership

and talent development opportunities were offered

to high performing and high potential APS 6 to

SES employees through organisations such as the:

• Australian Public Service Commission

• Australia and New Zealand School of

Government

• The Cranlana Programme

• Centre for Public Management

• Melbourne Business School (Mt Eliza

Executive Education)

• Australian Institute of Company Directors

• Australian National University (ANU)

National Security College.


Career advisory service

The Department’s career advisory service provides employees with tailored one-on-one advice and guidance on leadership, team management and career development planning. In the 2014–15 financial year, 96 employees accessed this service.

Study assistance

The Department’s study assistance scheme provides employees with access to paid study leave and financial assistance to undertake tertiary education. The scheme is designed to encourage and support employees to complete relevant study that will improve their professional skills and knowledge. In 2014–15 financial year 207 employees were approved to access the scheme.

People strategy

Development of the People Strategy 2014–16 was a key achievement in 2014–15. The strategy provides the vision to enable and support the Department and our people to deliver the Government’s agenda in the most coordinated, efficient and productive way.

Performance frameworks

The Department has a strong focus on both the work delivered and how these outcomes are achieved and administers a PM&C performance framework. As a result of the 2013 machinery of government changes, the Department continued to administer a separate performance framework for each of the ten enterprise agreements administered by the Department.

Performance bonuses

There were six performance bonuses paid to employees in 2014–15, under an Individual Flexibility Arrangement (established at the Department of Health and Ageing).

Recruitment

A number of Department-wide recruitment processes

were undertaken in the 2014–15 financial year,

allowing the Department to fill critical roles.

The Department also supported the recruitment

of a large number of non-ongoing employees and

temporary secondments for the G20 Taskforce. The

significant influx of staff (approximately 145 non-

ongoing employees and 600 secondees) required

an innovative and adaptable approach that saw us

partnering with a number of Commonwealth and

state government organisations.

Employment programmes

In 2014–15 there was an increase in entry

level opportunities offered across the APS for

Aboriginal and Torres Strait Islander people

and the Department is committed to partnering

with other APS agencies to provide placement

opportunities. We are currently participating in five

entry level programmes (consisting of three graduate

programmes, one traineeship programme and one

development programme), as outlined below.

PM&C Graduate Programme

The 2015 Graduate Programme commenced in

February 2015 with 15 participants. The Graduate

Programme allows graduates to experience two

job rotations in areas designed to enhance their

knowledge and capability as well as providing

exposure to new facets of government policy, service

delivery and programme management. Graduates

also undertook a tailored learning and development

programme that features courses specific to working

at the Department and in the wider APS.


Also participating in elements of the Graduate

Programme are two graduates recruited through

the APS Indigenous Pathways Programme and

one graduate recruited through the Australian

Government ICT Graduate Programme.

APS Indigenous Traineeship Programme

The Department currently has one trainee

placed through the APS Indigenous Traineeship

Programme. This programme prov ides an

opportunity for participants to begin a career in

the APS and complete a nationally recognised

qualification.

Indigenous Australian Government Development Programme

The Indigenous Australian Government Development

Programme is an integrated 15 month programme

that commenced in October 2014. This year the

Department welcomed 15 participants, with eight

placed in Canberra and seven based in the PM&C

Regional Network.

Participants are provided with professional and

personal development opportunities to enhance

their capability to undertake a career in the APS.

Participants complete a Diploma of Government

during the course of this programme.

Diversity

The Department’s commitment to diversity

and inclusion is demonstrated through the

commencement of a number of initiatives such as a

Aboriginal and Torres Strait Islander Employment

Strategy, a Disability Action Plan and a forthcoming

Reconciliation Action Plan.

The National Disability Strategy 2010–20 sets out

a 10-year national policy framework to improve the

lives of people with disability, promote participation

and create a more inclusive society. Agency level

information on people with a disability can be found

at www.dss.gov.au.

Work health and safety

During the year, the Department has established

partnerships with other agencies to improve safety

management and influence better practice safety

management across the APS. This included joint

arrangements for provision of work health and

safety (WHS) awareness training modules that can

be utilised by multiple agencies through shared

service arrangements. This has led to the following

initiatives:

• the introduction of real time reporting of safety

incidents with online reporting, allowing for more

timely, appropriate and responsive action

• a review of the Rehabilitation Management

System and implementation of improvements

to streamline service provision for the workforce

and line management areas

• the completion of a WHS legislative compliance

review identifying a number of activities to improve

performance of the Work Health and Safety

Management System (WHSMS). The Department

has a programme of improvement for the WHSMS

to be undertaken throughout 2015–16, which will

ensure an evidence-based, risk management

approach is applied, evaluated and reviewed to

achieve nationally consistent WHS management.

Please see Table 3.4 for information required under

the Work Health and Safety Act 2011 (WHS Act).


Investigations by the Regulator under Part 10 of the WHS Act

No investigations were undertaken under Part 10

of the WHS Act.

Notifiable incidents

Under the WHS Act, the Department is required to

provide statistics of any notifiable incidents that the

Department became aware of during the year that

arose out of the conduct of business or undertakings

by the entity, and any investigations conducted and

notices given.

The following table provides a summary of notifiable

incidents, investigations and notices in accordance

with the WHS Act.

FIGURE 3.4 SUMMARY OF NOTIFIABLE INCIDENTS, INVESTIGATIONS AND NOTICES UNDER THE WHS ACT, 1 JULY 2014 TO 30 JUNE 2015

Action Number

Death of a person that required notice to Comcare under section 35 Nil

Serious injury or illness of a person that required notice to Comcare under section 35 2

Dangerous incident that required notice to Comcare under section 35 2

Investigations conducted under Part 10 Nil

Notices given to PM&C under section 90 (provisional improvement notices) Nil

Notices given to PM&C under section 191 (improvement notices) Nil

Notices given to PM&C under section 195 (prohibition notices) Nil

Directions given to PM&C under section 198 (non-disturbance) Nil

Employment arrangements

The Department’s employee prof i le shif ted

significantly following the machinery of government

changes in late 2013. The terms and conditions of

employment, including remuneration of employees

moved to the Department as a result of these changes,

are preserved under a section 24(3) determination

made under the Public Service Act 1999. The terms

and conditions of affected employees are preserved

until such time as a new enterprise agreement is

negotiated for the Department.

Data on employment arrangements for al l

departmental staff is provided at Figure 3.5.

In addition to the current PM&C enterprise

agreement, the Department is administering

the terms and conditions of the following nine

agreements:

• Attorney-General’s Department Enterprise

Agreement 2011

• Department of Broadband, Communications

and the Digital Economy Enterprise Agreement

2011–14


• Department of Education, Employment and

Workplace Relations Enterprise Agreement

2012–14

• One Innovation Enterprise Agreement 2011

• Department of Finance and Deregulation

Enterprise Agreement 2011–14

• Department of Health and Ageing Enterprise

Agreement 2011–14

• D e p a r t m e n t o f Fa m i l i e s , Ho u s i n g ,

Community Services and Indigenous Affairs

Enterprise Agreement 2012–14

• Department of Regional Australia, Regional

Development a nd L o c a l G over n ment

Enterprise Agreement 2011

• Department of Sustainability, Environment,

Wat er, Popu l at ion a nd Com mu n it ies

Enterprise Agreement 2011–14.

FIGURE 3�5 TRENDS IN EMPLOYMENT AGREEMENTS

Agreements – at 30 June 2013 2014 2015

Section 24(1) determinations

SES 66 71 73

Non-SES1 0 1 2

Section 24(3) determinations2

SES 0 46 31

Non-SES 0 1,523 1,437

Enterprise Agreement

SES 0 0 0

Non-SES 731 825 780

Total3 797 2,466 2,323

Notes:

1 Non-SES staff subject to a determination under section 24(3) were offered a determination under section 24(1) in lieu of

an Individual Flexibility Arrangement.

2 Staff transferred to PM&C to give effect to Administrative Arrangements Orders made by the GovernorGeneral in

Council on 18 September 2013 had all terms and conditions of employment maintained by determinations under

section 24(3) of the Public Service Act 1999.

3 These figures include both ongoing and non-ongoing employees but do not include the Secretary.


FIGURE 3.6 TRENDS IN BASE SALARY

Trends at 30 June1 30 June 2013 30 June 2014 30 June 2015

Min Max Min Max Min Max

APS 1–3 42,304 58,691 41,049 62,837 41,049 62,837

APS 4–6 60,597 94,767 56,711 97,137 60,428 100,095

EL1 98,931 120,588 94,705 123,603 93,975 128,287

EL2 115,148 145,131 112,992 148,759 111,677 156,138

SES Band 1 148,227 209,566 151,933 202,385 151,933 202,385

SES Band 2 215,250 240,875 212,950 246,897 204,248 260,000

SES Band 3 250,000 348,434 276,250 367,719 300,000 367,719

Secretary The Secretary’s remuneration is determined by the Remuneration Tribunal.

Notes:

1 2014 and 2015 data sourced from Enterprise Agreements covering the Department’s workforce as a result of the

machinery of government changes.

Productivity gains

We introduced enhancements to our Human

Resource (HR) systems to streamline processes,

including:

• the implementation of automated processes to

replace paper-based HR systems

• the restructure of corporate services, including

systems and processes to del iver cl ient

services to a department with a geographically

dispersed workforce

• analysis of customer queries to refine self service

options and HR service delivery model

• making better use of existing systems to

streamline training registrations and online

learning.


Procurement and grants

Purchasing

The Department’s procurement and purchasing

in 2014–15 was undertaken in accordance with the

principles set out in the Commonwealth Procurement

Rules 2014 (CPRs).

CPRs are applied to the Department’s procurement

activities through the Secretary’s Instructions

(SIs) and Financial Rules. These ensure that

the Department undertakes competitive, non-

discriminatory procurement processes; uses

resources efficiently, effectively, economically and

ethically; and makes decisions in an accountable

and transparent manner.

The Department supports its employees in managing

procurements by providing information and training

on procurement policies and procedures, and

maintaining a central point of contact for advice

on the CPRs, SIs, and tendering processes.

As part of these arrangements, in 2014–15 the

Department published the fol lowing on the

AusTender website www.tenders.gov.au:

• deta i ls of publ icly ava i lable busi ness

opportunities with a value of $80,000 or more

• details of all contracts awarded with a value of

$10,000 or more

• a procurement plan providing details or expected

procurements for 2014–15.

This communication channel makes information

available to Small and Medium Enterprises (SMEs)

while also simplifying the way businesses interact

with the Government online.

The Department also publishes details of all

contracts with a value of $100,000 or more entered

into, or active during the previous 12 months in

accordance with the Senate Order on Departmental

and Agency Contracts. There were no contracts in

2014–15 that were exempt from being reported on

AusTender. Further, all major contracts included a

requirement for contractors to allow access to their

premises by the Australian National Audit Office.

The Department supports small business participation

in the Commonwealth Government procurement

market. SMEs and Small Enterprise participation

statistics are available on the Department of

Finance’s website: www.finance.gov.au.

The Department’s procurement practices support

SMEs by adopting whole of government solutions

to simplify interactions with SMEs. This includes

using the Commonwealth Contracting Suite for

low risk procurements valued under $200,000.

This reduces process costs for SMEs by creating

contracting consistency and simplifying liability,

insurance and indemnity requirements.

The Department recognises the importance of

paying small businesses on time. The results of the

Survey of Australian Government Payments to Small

Business are available on the Treasury’s website:

www.treasury.gov.au. The Department is committed

to improving its ability to make payments on time.


Consultants

The Department engages consultants where it lacks

specialist expertise or when independent research,

review or assessment is required. Consultants are

typically engaged to investigate or diagnose a

defined issue or problem; carry out defined reviews

or evaluations; or provide independent advice,

information or creative solutions to assist in the

Department’s decision making.

Prior to engaging consultants, the Department takes

into account the skills and resources required for

the task, the skills available internally and the cost-

effectiveness of engaging external expertise. The

decision to engage a consultant is made in accordance

with the PGPA Act and related regulations including

the CPRs and relevant internal policies.

Information on the value of contracts and

consultancies is available on the AusTender website

at www.tenders.gov.au.

During 2014–15, 33 new consultancy contracts were

entered into by the Department, involving total

actual expenditure of $1.31 million. In addition, 17

ongoing consultancy contracts were active during

the 2014–15 financial year, involving a total actual

expenditure of $1.09 million. Details of trends in

consultancies are shown in Figure 3.7.

FIGURE 3�7 TRENDS IN CONSULTANCIES

Consultancies 2012–13 2013–14 2014–15

Number of existing consultancies 7 131 17

Number of new consultancies 37 59 33

Total consultancies 44 72 50

Total expenditure $2�29m $3�83m2 $2�40m1 Figure of 15 in the 2013–14 Annual Report was reduced to 13 as two contracts were reclassified as non-consultancies.

2 Figure of $3.95m in the 2013–14 Annual Report was reduced to $3.83m as two contracts were reclassified as

non-consultancies.

Advertising and market research

In accordance with section 311A of the Commonwealth Electoral Act 1918, this section contains information

about advertising and marketing research.

Non-Corporate Commonwealth entities subject to

the Public Governance, Performance and Accountability Act 2013 (PGPA Act) are required to place their

advertising through the Central Advertising System.

During 2014–15 the Department conducted no

advertising campaigns. Further information on

advertising is available at www.dpmc.gov.au.

The following table contains information on

payments to advertising agencies, market research

organisations, polling organisations, direct mail

organisations, and media advertising organisations

in 2014–15.


FIGURE 3�8 MEDIA ADVERTISING

Provider Service provided Amount paid $ (incl GST)

Yetimo Marketing Pty Ltd Supply of promotional merchandise for the

2015 National NAIDOC activities

$76,919.70

Mitchell and Partners

Australia Pty Ltd

Advertising for MH17 National Memorial,

G20 Summit and State Funerals, Remote

Jobs and Communities Programme

$644,635.49

Australian Public Service

Commission

Advertising for recruitment services $28,804.50

Grant programmes

As part of reforms introduced to improve the

transparency and accountabi l ity of grants

administration, the Commonwealth Grants Rules

and Guidelines (CGRG) were issued in July 2014.

The CGRG apply to non-corporate Commonwealth

entities subject to the PGPA Act. The CGRG

establish the overarching Commonwealth grants

policy framework and articulate the expectations for

all non-corporate Commonwealth entities in relation

to grants administration.

The CGRG require that departments publish details

of grants on their website, no later than 14 working

days after the funding agreement for the grant takes

effect. Details must remain on the website for at

least two financial years.

Information on grants awarded by the Department

during the period 1 July 2014 to 30 June 2015 is

available at www.dpmc.gov.au.

Ecologically sustainable development and environmental performance

The fol lowing summary of the Department’s

env i ron menta l management act iv it ies and

performance is provided in accordance with section

516A of the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act), which requires

Commonwealth Government departments to report on:

• how their activities accord with, and their

outcomes contribute to, the principles of

ecologically sustainable development (subsection

(6)(a) and (b))

• the environmental impacts of their operations

during the year and measures taken to minimise

those impacts (subsection (6)(c), (d) and (e)).


Ecologically sustainable development

As outlined in our Environmental Policy Statement

we are committed to each of the five principles of

sustainable development (integration, precaution,

intergeneration, biodiversity and valuation) identified

in the EPBC Act, where they apply to our operations.

In 2014–15, we continued to mitigate the effects of

our impact on the environment by:

• conserving energy, water, paper and other natural

resources while still providing a comfortable

working environment

• minimising waste through recycling and using

recycled products and materials wherever

practical

• providing an environmentally sound workplace

and progressively implementing a range of

environmentally sound work practices

• including environmental impacts in our

purchasing policies where appropriate

• complying with all relevant Commonwealth

Government, state and territory environmental

legislation, regulations, policies and initiatives

• using technology such as Telepresence and

desktop videoconferencing to facilitate meetings

with interstate colleagues where appropriate

• encouraging the use of double-sided printing

• providing facilities to support staff to ride and

walk to work

• supporting the use of recycled paper and

recycling systems

• communicating our environmental commitments

to staff and the public.

Environmental performance

During 2014–15 we continued to demonstrate

environmental responsibility by minimising the

negative effects we have on the environment in the

areas of energy efficiency, waste and water. This

includes:

• maintaining a National Australian Built

Environment Rating System (NABERS) rating of

4.5 stars for whole building energy and achieving

a 5 star rating for base building energy and

3 stars for water at the Andrew Fisher Building

• maintaining a NABERS rating of 5.5 stars for

tenancy and 5 star base building NABERS

rating for building energy and water at the

Centraplaza Building

• holding monthly Bui ld ing Management

Committee meetings in line with our Green

Lease obligations and quarterly Environmental

Committee meetings to review energy usage and

analyse consumption

• continuing to provide staff with environmental

awareness material through the Go Green

campaign during 2014–15

• regularly monitoring levels of waste recycling

• supporting the use of electronic solutions

(i.e. iPads) to reduce paper usage

• continuing to use a 70,000 litre rainwater tank

to flush toilets and water gardens at the Andrew

Fisher Building

• continuing to encourage recycling by providing

recycling bins as well as waste bins in the

café, with suitable waste composted by a

recycling provider


• continuing to use drought tolerant plants in the

One National Circuit gardens

• continuing to participate in Earth Hour each year

• implementing our Environmental Management

System (EMS), based on the Australian Standard

AS/NZS ISO 14001, and conducting regular

reviews of the EMS

• having l ights automatical ly d immed in

workplaces following periods of inactivity

• encouraging staff to utilise black and white and

two sided printing options.

FIGURE 3�9 ENVIRONMENTAL PERFORMANCE REPORT

Theme Steps taken to reduce effect

Measures to review and improve reducing the effect

Energy efficiency LED Lighting Installed LED panel lights in basement 1 car park, which gives

a potential energy saving of 13,000 KwH per year.

Green Energy 10 per cent of the energy purchased for Tenant Light and

Power for both the Andrew Fisher Building and Centraplaza

was green power.

Energy Saver Mode Most office equipment in both the Andrew Fisher Building

and Centraplaza has an energy saver mode when not in use.

Predictive

Optimisation

Software

Predictive Optimisation software will commence being

installed at Centraplaza in June 2015, which will continuously

monitor real-time weather forecasts, energy prices, tariffs and

demand response signals, then make small automatic changes

to Air Conditioning operations to reduce energy usage.

Office Waste Recycling Rollout of desk-side paper recycling boxes at Centraplaza

during 2015.

Water Reduction of Water

Consumption

Use of drought tolerant plants and water tanks for watering

gardens and flushing toilets at Andrew Fisher Building.

PART 4Financial statements

Financial performance �� 57

Department of the Prime Minister and Cabinet financial statements ��64

Aboriginals Benefit Account financial statements ��149

Aboriginal and Torres Strait Islander Land Account financial statements �� 180

57Part 4: Financial statements

Financial performance

This section highlights the Department’s financial

performance during 2014–15 for both departmental

and administered activities.

The Department’s financial statements are presented

from page 64 of this report. The Australian

National Audit Office issued an unmodified audit

opinion of these statements on 10 September 2015.

Following the changes to the Administrative

Arrangement Order (AAO) on 18 September 2013,

3 October 2013 and 12 December 2013, the Department

assumed responsibility for most Indigenous policy

and programme functions, Deregulation and

Women’s policy. The Department also relinquished

responsibility for National Compact, Philanthropy

and Volunteering.

As a result, the comparative figures for 2013–14

presented in the financial statements do not reflect

a full year of activity. The departmental operating

result for 2013–14 includes approximately six

months of revenue and expenses for the transferred

functions and the administered operating result

includes approximately eight months of revenues

and expenses.

Financial performance of departmental activities

Operating result

The Department of the Prime Minister and Cabinet

recorded an operating surplus of $8.1 million on its

core operations. The Statement of Comprehensive

Income discloses a technical operating deficit of

$17.5 million, however this includes:

• G20 operating surplus of $5.2 million

• unfunded depreciation and amortisation expense

and asset write downs totaling $28.2 million

• a $1.8 million revaluation of employee liabilities

due to changes in the long term bond rate and

on-costs.

Statement of Financial Position

As at 30 June 2015, the Department had net equity

of $139.9 million representing $272.3 million of

assets, offset by $132.3 million of liabilities. The

financial asset balance of $135.9 million primarily

represented cash and appropriation receivable. The

non-financial asset balance of $135.9 million mainly

represents staff accommodation and offices in

remote areas. The majority of the liabilities balance

reflected $72.8 million in employee provisions and

$31.7 million payable to suppliers.

58 Part 4: Financial statements

Financial performance of administered activities

Income

Administered revenue of $106.7 million predominantly

ref lects $86.7 million of interest earned on the

investment of funds held by the Aboriginal Benefits

Account (ABA) and the Aboriginal and Torres Strait

Islander Land Account (ATSILA) and unspent grant

funding of $18.463 million that was returned to

the Government.

The revaluation of land, buildings, property, plant

and equipment owned by portfolio agencies resulted

in a $61.6 million increase in the net book value of

administered investments. These adjustments were

taken to the Asset Revaluation Reserve and reflected

in Other Comprehensive Income.

Expenses

In 2014–15 the programmes administered by the

Department on behalf of government included:

• $1,232.5 million for the Indigenous affairs

programmes

• $146.9 million for the Aboriginal Benefits

Account special account

• $50.2 million for the Aboriginal and Torres Strait

Islander Land Account special account

• $130.0 mill ion in payments to Corporate

Commonwealth Entities in the Portfolio.

• $12.9 million for other programmes including

Women’s policy and Official and Ceremonial

Support.

Assets

As at 30 June 2015 administered assets were valued

at $4,357.4 million reflecting:

• $2,480.2 million of investments, being ABA and

ATSILA funding held in term deposits

• $1,777.7 million representing the net book value

of the Portfolio’s corporate entities

• $72.6 million in trade other receivables

• $14.5 million of cash at bank.

Liabilities

As at 30 June 2015 the Department had administered

liabilities of $48.2 million, with the most significant

items being:

• End of year supplier, subsidy and grant payables

of $30 million

• A provision of $17.5 million for future non-cash

benefits to be provided to the former Governors-

General.


RESOURCING STATEMENT

Actual available appropriation

for 2014–15 $’000

Payments made

2014–15 $’000

Remaining balance 2014–15

$’000

(a) (b) (a)-(b)

Ordinary annual services1

Departmental appropriation2 650,158 558,966 91,192

Total 650,158 558,966 91,192

Administered expenses3

Outcome 1: Prime Minister and Cabinet 14,954 14,126

Outcome 2: Indigenous 1,166,608 1,164,087

Payments to corporate Commonwealth entities4 130,058 130,058

Total 1,311,620 1,308,271

Total ordinary annual services A 1,961,778 1,867,237

Other services5

Administered expenses

Specific payments to states, ACT, NT and local government

Outcome 1: Prime Minister and Cabinet - -

Outcome 2: Indigenous 8,517 8,516

Total 8,517 8,516

Departmental non-operating

Equity injections 6,205 2,631 3,574

Total 6,205 2,631 3,574

Administered non-operating

Administered assets and liabilities - -

Payments to corporate Commonwealth entities - non-operating

38,124 38,124

Total 38,124 38,124

Total other services B 52,846 49,271

Total available annual appropriations and payments

2,014,624 1,916,508


RESOURCING STATEMENT

Actual available appropriation

for 2014–15 $’000

Payments made

2014–15 $’000

Remaining balance 2014–15

$’000

(a) (b) (a)-(b)

Special appropriations

Special appropriations limited by criteria/entitlement

Aboriginal Land Rights (Northern Territory) Act 1976 165,268

Higher Education Support Act 2003 51,152

Special appropriations limited by amount

Indigenous Education (Targeted Assistance) Act 2000 -

Total special appropriations C 216,420

Special accounts6

Opening balance 30,460

Appropriation receipts 164,229

Non-appropriation receipts to Special Accounts 4,072,885

Payments made 4,243,551

Total special accounts D 4,267,574 4,243,551 24,023

Total resourcing

A+B+C+D 6,282,198 6,376,479

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or corporate Commonwealth entities through annual appropriations

(332,411) (332,411)

Total net resourcing for PM&C 5,949,787 6,044,068 1 Appropriation Act (No.1) 2014-15 and Appropriation Act (No.3) 2014-15 including prior year departmental appropriation and

section 74 Retained Revenue Receipts, less permanent quarantines of $44.262 million. For further details refer to Note

28 to the financial statements.

2 Includes an amount of $22.049 million in 2014-15 for the Departmental Capital Budget. For accounting purposes this

amount has been designated as ‘contribution by owners’.

3 Includes an amount of $0.151 million in 2014-15 for the Administered Capital Budget. For accounting purposes this

amount has been designated as ‘contribution by owners’.

4 Corporate entities’ are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act 2013.

5 Appropriation Act (No.2) 2014-15 and Appropriation Act (No.4) 2014-15.

6 Does not include ‘Special public money’ held in accounts like Services for Other entities and Trust Moneys Special accounts (SOETM).


EXPENSES BY OUTCOME

Outcome 1: Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries including through the coordination of government activities, policy development and programme delivery�

Budget*2014–15

$’000

Actual expenses

2014–15$’000

Variation2014–15

$’000

(a) (b) (a) - (b)

Program 1�1: Prime Minister and Cabinet


Ordinary Annual Services (Appropriation Act No. 1, 3 and 5) 13,671 12,989 682

Special appropriations 10 - 10

Special Accounts 5 43 -38

Departmental expenses

Departmental appropriation 1 244,499 254,650 -10,151

Expenses not requiring appropriation in the Budget year2 17,765 19,703 -1,938

Total for Program 1�1 275,950 287,385 -11,435

Outcome 1 Totals by appropriation type


Ordinary Annual Services (Appropriation Act No. 1) 13,671 12,989 682

Special appropriations 10 - 10

Special Accounts 5 43 -38


Departmental appropriation 1 244,499 254,650 -10,151


Total expenses for Outcome 1 275,950 287,385 -11,435

2014–15 Budget

2014–15 Actuals

Average staffing level (number) 669 758 -89

* Full year budget, including any subsequent adjustment made to the 2014-15 Budget at Additional Estimates.

1 Departmental Appropriation combines Ordinary annual services (Appropriation Act Nos. 1 and 3) and Retained Revenue

Receipts under section 74 of the PGPA Act 2013.

2 Expenses not requiring appropriation in the Budget year is made up of the Depreciation and Amortisation expenses,

make good expense, audit fees and other non-cash expense items.


EXPENSES BY OUTCOME

Outcome 2: Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programmes, and through measures that recognise the special place that Indigenous people hold in this Nation�

Budget*2014–15

$’000

Actual expenses

2014–15$’000

Variation2014–15

$’000

(a) (b) (a) - (b)

Program 2�1: Jobs, Land and Economy


Ordinary Annual Services (Appropriation Act No. 1) 564,704 546,839 17,865

Special appropriations 157,955 145,553 12,402

Special Accounts 191,857 195,147 -3,290

Less expenses made from appropriations credited to

special accounts

-141,450 -144,599 3,149

Expenses not requiring appropriation in the Budget year2 - 3,000 -3,000

Total for Program 2�1 773,066 745,940 27,126

Program 2�2: Children and Schooling


Ordinary Annual Services (Appropriation Act No. 1) 231,389 237,312 -5,923

Other Services (Appropriation Act No.2) 8,517 8,516 1


Special Accounts 5 - 5


special accounts

-5 - -5

Expenses not requiring appropriation in the Budget year2 - 7,846 -7,846


Program 2�3: Safety and Wellbeing



Expenses not requiring appropriation in the Budget year2 - 878 -878


Program 2�4: Culture and Capability



Expenses not requiring appropriation in the Budget year - 182 -182



EXPENSES BY OUTCOME

Outcome 2: Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programmes, and through measures that recognise the special place that Indigenous people hold in this Nation�

Budget*2014–15

$’000

Actual expenses

2014–15$’000

Variation2014–15

$’000

(a) (b) (a) - (b)

Program 2.5: Remote Australia Strategies


Ordinary Annual Services (Appropriation Act No. 1) 80,009 74,067 5,942

Special Accounts 3,201 3,481 -280

Expenses not requiring appropriation in the Budget year2 - 159 -159


Program 2�6: Programme Support


Departmental appropriation 1 292,223 275,968 16,255

Expenses not requiring appropriation in the Budget year2 18,942 19,694 -752


Outcome 2 Totals by appropriation type


Ordinary Annual Services (Appropriation Act No. 1) 1,166,608 1,163,008 3,600

Other Services (Appropriation Act No.2) 8,517 8,516 1


Special Accounts 195,063 198,628 -3,565


Departmental appropriation 1 292,223 275,968 16,255


Total expenses for Outcome 2 1,891,832 1,869,871 6,545


special accounts

-141,455 -144,599 3,144

Total net expenses for Outcome 2 1,750,377 1,725,272 9,689

2014–15 Budget

2014–15 Actuals

Average staffing level (number) 1,526 1,405 121* Full year budget, including any subsequent adjustment made to the 2014-15 Budget at Additional Estimates.

1 Departmental Appropriation combines Ordinary annual services (Appropriation Act Nos. 1 and 3) and Retained Revenue

Receipts under section 74 of the PGPA Act 2013.

2 Expenses not requiring appropriation in the Budget year is made up of the Depreciation and Amortisation expenses,

make good expense, audit fees and other non-cash expense items.


Department of the Prime Minister and Cabinet financial statements

The following pages 64 to 148 contain PDFs of the Department of the

Prime Minister and Cabinet's financial statements for the period ended

30 June 2015. If you require assistance accessing these pages, please

email [email protected]




DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2015

The above statement should be read in conjunction with the accompanying notes.

2015 2014 Notes $'000 $'000 NET COST OF SERVICES Expenses

Employee benefits 4A 272,603 222,904 Suppliers 4B 267,414 142,678 Grants 4C 1,236 729 Depreciation and amortisation 8A 28,225 19,748 Finance costs - unwinding of discount on make good 10B 52 131 Write-down and impairment of assets 8A 497 31 Losses from asset sales 4D 31 -

Total expenses 570,058 386,221 Own-source income Own-source revenue

Sale of goods and rendering of services 5A 13,285 21,466 Resources received free of charge 5B 10,623 6,903

Total own-source revenue 23,908 28,369 Gains

Sale of assets 4D - 54 Gain on reversal of make good 10B 93 -

Total gains 93 54 Total own-source income 24,001 28,423 Net cost of services 546,057 357,798 Revenue from Government - departmental appropriations 528,523 351,150 Deficit attributable to the Australian Government (17,534) (6,648) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus 3,822 - Total comprehensive loss attributable to the Australian Government

(13,712) (6,648)

Following the changes to the Administrative Arrangements Order of 18 September, 3 October and 12 December 2013, the Department assumed responsibility for the Indigenous Affairs function, Deregulation and Women’s policy, as well as relinquishing National Compact, Philanthropy and Volunteering. As a result, 2015 includes 12 months of revenue and expenses for the transferred functions while 2014 includes approximately six months.


DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF FINANCIAL POSITION as at 30 June 2015


2015 2014 Notes $'000 $'000 ASSETS Financial assets

Cash and cash equivalents 12,063 1,633 Trade and other receivables 7A 118,512 123,928 Accrued revenue - recovery of departmental costs 5,397 2,159

Total financial assets 135,972 127,720 Non-financial assets

Property, plant and equipment 8A 119,415 136,147 Intangibles 8A 13,913 9,698 Prepayments 8B 2,604 6,213

Total non-financial assets 135,932 152,058 Land and buildings held for sale 430 785 Total assets 272,334 280,563 LIABILITIES Payables

Suppliers 9A 31,714 35,549 Grants - private sector 370 - Other payables 9B 26,339 39,414

Total payables 58,423 74,963 Provisions

Employee provisions 10A 72,758 76,061 Make good provisions 10B 1,190 1,302

Total provisions 73,948 77,363 Total liabilities 132,371 152,326 Net assets 139,963 128,237 EQUITY

Contributed equity 147,056 121,618 Reserves 12,053 8,231 Accumulated deficit (19,146) (1,612)

Total equity 139,963 128,237


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DEPARTMENT OF THE PRIME MINISTER AND CABINET CASH FLOW STATEMENT for the period ended 30 June 2015


2015 2014 Notes $'000 $'000 OPERATING ACTIVITIES Cash received

Sales of goods and rendering of services 12,788 21,504 Net GST received 18,022 9,919 Appropriations 558,648 313,642

Total cash received 589,458 345,065 Cash used

Employees 280,763 196,781 Suppliers 291,477 123,694 Grants 866 1,257 Retained receipts transferred to the Official Public Account1 12,533 21,219

Total cash used 585,639 342,951 Net cash from operating activities 12 3,819 2,114 INVESTING ACTIVITIES Cash received

Proceeds from sales of property, plant and equipment 409 54 Total cash received 409 54 Cash used

Purchase of property, plant and equipment 3,193 7,351 Purchase of intangibles 4,252 4,218

Total cash used 7,445 11,569 Net cash used by investing activities (7,036) (11,515) FINANCING ACTIVITIES Cash received

Contributed equity Equity injections 2,631 3,171 Departmental capital budget 11,016 6,936

Total cash received 13,647 10,107 Net cash from financing activities 13,647 10,107 Net increase in cash held 10,430 706

Cash and cash equivalents at the beginning of the reporting period 1,633 927

Cash and cash equivalents at the end of the reporting period 12,063 1,633 1 PGPA Act s74 for 2014-15 and FMA Act s31 for 2013-14


DEPARTMENT OF THE PRIME MINISTER AND CABINET SCHEDULE OF COMMITMENTS as at 30 June 2015

The above schedule should be read in conjunction with the accompanying notes.

Within 1 year Between 1 to

5 years More than 5

years Total 2015 $'000 $'000 $'000 $'000 Commitments receivable

Other commitments (4,553) (8,094) (3,834) (16,481) Total commitments receivable (4,553) (8,094) (3,834) (16,481) Commitments payable

Operating leases 29,141 91,853 49,724 170,718 Other commitments payable 22,912 2,500 - 25,412

Total commitments payable 52,053 94,353 49,724 196,130 Net commitments 47,500 86,259 45,890 179,649


5 years More than 5


Sublease rental income (65) (3) - (68) Other commitments (6,268) (8,818) (5,532) (20,618)

Total commitments receivable (6,333) (8,821) (5,532) (20,686) Commitments payable

Operating leases 29,218 92,355 69,820 191,393 Grant commitments 45 - - 45 Other commitments payable 56,101 10,377 - 66,478

Total commitments payable 85,364 102,732 69,820 257,916 Net commitments 79,031 93,911 64,288 237,230

Note: Commitments are GST inclusive where relevant. Operating lease commitment - leases for office accommodation Office accommodation lease payments are subject to periodic increases in accordance with the rent review provisions in the lease agreements. Other commitments payable/receivable Other commitments payable includes contracts entered into for the provision of information and communication technology services for the Department and shared services for a number of agencies.


DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the period ended 30 June 2015



Employee benefits 17A 874 988 Suppliers 17B 65,403 66,149 Subsidies - Petrol Sniffing Prevention Strategy 1,601 851 Grants 17C 1,218,600 728,033 Depreciation and amortisation 21A 332 356 Finance costs 17D 547 4,096 Impairment of receivables 11,248 2,570 Losses from asset sales 21A 821 1 Payments associated with land councils 17E 88,313 45,999 Payments to corporate Commonwealth entities and companies 17F 130,058 90,076 Payments to Indigenous Land Corporation 49,865 52,463 Mining withholding tax 4,995 2,243

Total expenses 1,572,657 993,825 Income Revenue Non-taxation revenue

Interest - investments 86,688 73,793 Other 18A 20,070 29,062

Total non-taxation revenue 106,758 102,855 Total revenue 106,758 102,855 Gains

Assets received free of charge 21A 818 - Total gains 818 - Total income 107,576 102,855 Net cost of services 1,465,081 890,970

Deficit (1,465,081) (890,970) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserves 61,595 (40,373) Items subject to subsequent reclassification to net cost of services

Actuarial losses relating to former Governors-General entitlements 23B (1,903) (1,150)

Total other comprehensive income 59,692 (41,523) Total comprehensive loss (1,405,389) (932,493)

Following the changes to the Administrative Arrangements Order of 18 September, 3 October and 12 December 2013, the Department assumed administered responsibility for the Indigenous Affairs function and Women’s policy. As a result, 2015 includes 12 months of revenue and expenses for the transferred functions while 2014 includes approximately eight months.


DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES as at 30 June 2015


2015 2014 Notes $'000 $'000 ASSETS Financial assets

Cash and cash equivalents 20A 14,563 17,739 Trade and other receivables 20B 72,636 80,447 Other investments 20C 2,480,243 2,420,216 Investments in corporate Commonwealth entities 20D 1,777,729 1,678,032

Total financial assets 4,345,171 4,196,434 Non-financial assets

Property, plant and equipment 21A 1,437 1,753 Prepayments 21B 6,120 9,322

Total non-financial assets 7,557 11,075 Total assets administered on behalf of Government 4,352,728 4,207,509 LIABILITIES Payables

Suppliers 22A 11,490 9,343 Grants 22B 18,640 18,823 Other payables 22C 149 2,536


Employee provisions 23A 272 325 Non-cash benefits - former Governors-General benefits 23B 17,509 16,594 Other provisions 23C 227 324

Total provisions 18,008 17,243 Total liabilities administered on behalf of Government 48,287 47,945 Net assets 4,304,441 4,159,564


DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED RECONCILIATION SCHEDULE for the period ended 30 June 2015


2015 2014 $'000 $'000 Opening assets less liabilities as at 1 July 4,159,564 (10,902) Net cost of services Income 107,576 102,855 Expenses

Payments to entities other than corporate Commonwealth entities and companies (1,392,734) (851,286) Payments to Indigenous Land Corporation (49,865) (52,463) Payments to Corporate Commonwealth entities and companies (130,058) (90,076)

Transfers (to)/from the Australian Government

Appropriation transfers from Official Public Account Annual appropriation for administered expenses (non-corporate Commonwealth entities and companies) 1,290,468 646,540 Annual appropriation for payment to corporate Commonwealth entities and companies 130,058 90,076 Special appropriations (non-corporate Commonwealth entities and companies) 216,420 211,306 Special account 18,434 15,792

Transfers to Official Public Account (124,618) (16,881) Transfers to Official Public Account Special accounts (18,620) (15,792)

Equity injection to corporate Commonwealth entities and companies 38,124 21,065 Movement in make good asset 22 21 Restructuring (Note 11) - 4,150,832 Administered investments 61,573 (40,373) Revaluation of liabilities relating to former Governors-General entitlements (1,903) (1,150) Closing assets less liabilities as at 30 June 4,304,441 4,159,564


DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED CASH FLOW STATEMENT for the period ended 30 June 2015



Net GST received 98,080 18,635 Other 9,538 5,835


Employees 905 1,067 Suppliers 63,956 66,392 Subsidy payments 1,601 851 Grant payments 1,309,520 739,632 Payments to corporate Commonwealth entities and companies 130,058 90,076 Payments associated with land councils administration 40,803 20,598 Land councils distributions 47,510 27,644 Payments to Indigenous Land Corporation 49,865 52,463 Other 4,995 2,053

Total cash used 1,649,213 1,000,776 Net cash used by operating activities 24 (1,541,595) (976,306) INVESTING ACTIVITIES Cash received

Proceeds from realisation of investments 3,982,951 2,616,273 Interest on investments 87,710 45,193

Total cash received 4,070,661 2,661,466 Cash used

Purchase of property, plant and equipment 1 357 Payments to corporate Commonwealth entities and companies 38,124 21,065 Purchase of investments 4,044,383 2,616,740

Total cash used 4,082,508 2,638,162 Net cash used by investing activities (11,847) 23,304

Cash received - restructuring - 7,248 Net decrease in cash held (1,553,442) (945,754) Cash and cash equivalents at the beginning of the reporting period 17,739 5 Cash from Official Public Account

Appropriations 1,675,070 968,987 Special Accounts 18,434 27,174

Total cash from the Official Public Account 1,693,504 996,161 Cash to Official Public Account

Appropriations (124,618) (16,881) Special Accounts (18,620) (15,792)

Total cash to the Official Public Account (143,238) (32,673) Cash and cash equivalents at the end of the reporting period 20A 14,563 17,739


DEPARTMENT OF THE PRIME MINISTER AND CABINET SCHEDULE OF ADMINISTERED COMMITMENTS for the period ended 30 June 2015



5 years More than 5


Net GST recoverable on commitments (85,831) (134,708) (32) (220,571) Total commitments receivable (85,831) (134,708) (32) (220,571) Commitments payable

Operating leases1 746 946 1,761 3,453 Grants2 1,011,370 1,544,320 - 2,555,690 Other3 109,365 177,914 - 287,279

Total commitments payable 1,121,481 1,723,180 1,761 2,846,422 Net commitments 1,035,650 1,588,472 1,729 2,625,851


5 years More than 5


Net GST recoverable on commitments (41,817) (22,023) (197) (64,037) Total commitments receivable (41,817) (22,023) (197) (64,037) Commitments payable

Operating leases1 757 1,548 2,163 4,468 Grants2 866,464 968,561 - 1,835,025 Other3 170,514 231,017 - 401,531

Total commitments payable 1,037,735 1,201,126 2,163 2,241,024 Net commitments 995,918 1,179,103 1,966 2,176,987

Note: Commitments are GST inclusive where relevant. 1 Operating leases comprise seven leases, six for office accommodation for the former Governors-General and one relating to the Indigenous Education (Northern Territory Facilities) program. Lease payments are subject to periodic increase in accordance with the rent review provisions of the lease. 2 Grant commitments relate to amounts payable under agreements in respect of which the grantee has yet to provide the services required or legislative obligations such as the Indigenous Education (Targeted Assistance) Act 2000. Legislative obligations relate to amounts specified in legislation where funding determination has not yet been made. 3 Other commitments mainly relate to activities under the Aboriginal Benefits Account and the Aboriginal and Torres Strait Islander Land Account.


DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015

Note 1: Summary of significant accounting policies

Note 2: Events after the reporting period

Note 3: Net cash appropriation arrangements

Note 4: Expenses

Note 5: Own-source income

Note 6: Fair value measurement

Note 7: Financial assets

Note 8: Non-financial assets

Note 9: Payables

Note 10: Provisions

Note 11: Restructuring

Note 12: Cash flow reconciliation

Note 13: Impact of the G20 Taskforce on the 2014-15 Statement of Comprehensive Income

Note 14: Senior management personnel remuneration

Note 15: Financial instruments

Note 16: Financial assets reconciliation

Note 17: Administered expenses

Note 18: Administered income

Note 19: Administered fair value measurement

Note 20: Administered financial assets

Note 21: Administered non-financial assets

Note 22: Administered payables

Note 23: Administered provisions

Note 24: Administered cash flow reconciliation

Note 25: Administered investments

Note 26: Administered financial instruments

Note 27: Administered financial assets reconciliation

Note 28: Appropriations

Note 29: Special accounts

Note 30: Compliance with statutory conditions for payments from the consolidated revenue fund

Note 31: Assets held in trust

Note 32: Reporting of outcomes

Note 33: Explanations of major budget variances

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Note 1: Summary of significant accounting policies 1.1 Objectives of the Department The Department of the Prime Minister and Cabinet (the Department) is a not-for-profit Australian Government controlled Department of State. The objective of the Department is to provide policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries on matters that are on the forefront of public and government administration.

The Department is structured to meet two outcomes as outlined below:

Outcome 1: Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries including through the coordination of government activities, policy development and programme delivery. Outcome 2: Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programmes, and through measures that recognise the special place that Indigenous people hold in this Nation.

In 2014-15 the Department’s activities were identified under the following programmes: Programme 1.1: Prime Minister and Cabinet

Domestic policy National security and international policy Support services for Government operations Group of 20 summit 2014 Official and ceremonial support Women’s policy.

Programme 2.1: Indigenous

Commonwealth Aboriginal and Torres Strait Islander policy. The continued existence of the Department in its present form and with its present programmes is dependent on Government policy and on continuing funding by Parliament for the Department’s administration and programmes. The Department’s activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Department in its own right. Administered activities involve the management or oversight by the Department, on behalf of the Government, of items controlled or incurred by the Government. The Department conducts the following administered activities on behalf of the Government:

Secretariat support to the National Counter-Terrorism Committee Parliament House Briefing Room Grant payments to the National Australia Day Council Limited Compensation and legal expenses Operations support for the Prime Minister’s official residences Support to former Governors-General State occasions and official visits Commonwealth Aboriginal and Torres Strait Islander grant programmes Commonwealth Aboriginal and Torres Strait Islander service delivery Women’s grant programmes.

1.2 Basis of preparation of the financial statements The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board

(AASB) that apply for the reporting period.



The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except where certain assets and liabilities are recorded at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Due to the reclassification in the Portfolio Budget Statements 2015-16 for administered supplier, subsidies and grant expenses, the Department identified changes to be made to the comparatives. As a result, the comparatives in relation to suppliers, subsidies and grants were adjusted in the following: Administered Schedule of Comprehensive Income, Administered Schedule of Assets and Liabilities and Administered Cash Flow Statement. Due to the changes to the Administrative Arrangements Order of 18 September, 3 October and 12 December 2013, the Department assumed responsibility for the Indigenous Affairs function, Deregulation and Women’s policy, as well as relinquishing National Compact, Philanthropy and Volunteering. As a result, the 2014 Statement of Comprehensive Income includes approximately six months of the revenue and expenses for the transferred functions, and the 2014 Administered Schedule of Comprehensive Income includes approximately eight months. The 2015 Statement of Comprehensive Income and the 2015 Administered Schedule of Comprehensive Income includes 12 months of the transferred functions. 1.3 Significant accounting judgements and estimates In the process of applying the accounting policies listed in this note, the Department has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

The provision for the restoration of leased premises (make good) is based on future obligations relating to the underlying assets and is supported by external valuers’ opinions

The fair value of buildings and property, plant and equipment has been taken to be the market value of similar properties as determined by an independent valuer. Where an active market does not exist these assets are valued at their replacement cost as determined by an independent valuer

The relevant government bond rate has been used to discount non-current liabilities The liability for long service leave has been estimated using an actuarial assessment based on the FRR

requirements. This takes into account expected salary growth, attrition and future discounting using the government bond rates and is based on the actuarial assessment determined by the Australian Government Actuary.

The provision for non-cash former Governors-General entitlements relate to post-employment benefits such as office facilities, administrative support and transport. The future liability for these benefits is based on the actuarial assessment determined by the Australian Government Actuary.

The Department made no other assumptions or estimates identified as having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 1.4 New Australian accounting standards Adoption of New Australian Accounting Standard requirements No accounting standard has been adopted earlier than the application date as stated in the standard. The following new standards/revised standards/interpretations/amending standards issued prior to the sign-off date that were applicable to the current reporting period:

AASB 1055 - Budgetary Reporting - March 2013 (Principal) – Disclosure impact. Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the Department. Future Australian Accounting Standard requirements

There are no new/revised/amending standards and/or interpretations issued by the Australian Accounting Standards Board prior to the sign-off date, that are expected to have a future material impact on the Department’s financial statements which are applicable to the Department for future reporting periods.

The following new standards will have a disclosure impact only in future reporting periods:

2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative



2015-16 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities.

1.5 Revenue Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

The amount of revenue, stage of completion and transaction costs incurred can be reliably measured The probable economic benefits associated with the transaction will flow to the Department.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable. Resources received free of charge Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature. Revenue from Government Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue from Government when the Department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts. 1.6 Gains Sale of assets Gains from disposal of assets are recognised when control of the asset has passed to the buyer. 1.7 Transactions with the Australian Government as owner Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year. Restructuring of Administrative Arrangements Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity. Other Distributions to/from Owners The FRR require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. 1.8 Grants The Department applies a uniform policy for all grants. Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed; or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Department enters into an agreement to make these grants but services have not been performed or criteria satisfied. Where grant moneys are paid in advance of performance or eligibility, a prepayment is recognised. Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.



1.9 Employee benefits Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Department is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Department’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2015. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Separation and redundancy A liability is made for separation and redundancy benefit payments. The Department recognises a liability for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations. Superannuation The Department's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or another fund of their choice. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes. The Department makes employer contributions to the employees' superannuation scheme. For Commonwealth defined benefits schemes, these rates are determined by an actuary to be sufficient to meet the current cost to the Government. The Department accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year. During 2014-15, an error in the calculation of superannuation benefits to employee participating in accumulation superannuation plan was identified. Adjustments to rectify the error were posted during the 2014-15 year. No adjustment to prior years occurred. 1.10 Leases Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense. The Department currently has 24 (2014: 26) agreements for the leasing of premises which have provisions requiring the premises to be restored to their original condition at the conclusion of the lease. The Department has made a make good provision to reflect the present value of this obligation. The Department administers 5 (2014: 5) agreements for the leasing of premises which have provisions requiring the premises to be restored to their original condition at the conclusion of the lease. A make good provision has been raised to reflect the present value of this obligation.



1.11 Cash and cash equivalents Cash is recognised at its nominal amount. Cash and cash equivalents include:

Cash on hand Demand deposits in bank accounts with an original maturity of three months or less that are readily convertible

to known amounts of cash and subject to insignificant risk of changes in value Cash in special accounts.

1.12 Financial assets The Department classifies its financial assets in the following categories:

Held-to-maturity investments Available for sale financial assets Loans and receivables.

All financial assets are expected to be recovered within 12 months except where indicated. Interest is recognised by applying the effective interest rate. Impairment of financial assets Financial assets are assessed for impairment at the end of each reporting period. 1.13 Financial liabilities Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Financial liabilities are recognised and derecognised upon ‘trade date’. 1.14 Contingent liabilities and contingent assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote. The Department is not aware of any material departmental quantifiable or unquantifiable contingent assets or liabilities as at the signing date that would require disclosure in the financial statements (2014: Nil). The Department is not aware of any significant departmental remote contingencies that would require disclosure (2014: Nil). 1.15 Property, plant and equipment and intangibles Asset recognition threshold Purchases of property, plant and equipment and intangibles are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than IT assets where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the Department where there exists an obligation to restore the asset to its original condition. These costs are included in the value of the Department's property, plant and equipment with a corresponding provision for the ‘make good’ recognised.



Revaluations Fair values for each class of asset are determined as shown below:

Asset class Fair value measurement Land Market selling price

Buildings excluding leasehold improvements

Market selling price and depreciated replacement cost

Leasehold improvements

Depreciated replacement cost

Property, plant and equipment Market selling price and depreciated replacement cost

Intangibles Depreciated replacement cost

All property, plant and equipment assets were formally valued in 2015 by independent valuers. Upon revaluation, any accumulated depreciation is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Department using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2015 2014

Departmental assets

Buildings excluding leasehold improvements 2 to 50 years 2 to 50 years

Leasehold improvements Lease term Lease term

Property, plant and equipment 1 to 50 years 1 to 50 years

Intangibles 2 to 7 years 2 to 7 years

Administered assets

Buildings excluding leasehold improvements 38 to 50 years 38 to 50 years

Leasehold improvements Lease term Lease term

Property, plant and equipment 4 to 112 years 4 to 112 years Impairment All assets were assessed for impairment during 2015. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.



1.16 Taxation The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT), the Goods and Services Tax (GST) and Mining Withholding Tax (WHT). Revenues, expenses and assets are recognised net of GST except:

Where the amount of GST incurred is not recoverable from the Australian Taxation Office For receivables and payables Commitments payable and receivable.

1.17 Reporting of administered activities Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes. Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards. Administered cash transfers to and from the Official Public Account Revenue collected by the Department for use by the Government rather than the Department is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Department on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule. Revenue All administered revenues are revenues relating to ordinary activities performed by the Department on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed. Interest revenue is recognised using the effective interest method. Loans and receivables Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through the Administered Schedule of Comprehensive Income. Former Governors-General benefits The Department has responsibility for the administration of non-cash benefits provided to former Governors-General. These entitlements are regarded as post-employment benefits and represent the provision of office facilities, administrative support and transport. A future liability for these benefits is recognised in the administered accounts. Administered investments Administered investments in subsidiaries are not consolidated because their consolidation is relevant only at the whole-of-government level. Administered investments other than those held for sale are classified as available-for-sale and are measured at their fair value as at 30 June 2015. Fair value has been taken to be the Australian Government's proportional interest in the net assets as advised by the entities as at the end of reporting period. Administered contingent assets and liabilities The Department is not aware of any material administered quantifiable or unquantifiable contingent assets or liabilities as at the signing date that would require disclosure in the financial statements (2014: Nil). The Department is not aware of any significant administered remote contingencies that would require disclosure (2014: Nil). Administered employee benefits The expense and liabilities for services rendered by staff employed in the Prime Minister’s Official Establishments and in support for former Governors-General are recognised as administered items. Accounting policies are consistent with those applied to departmental items. Grants and Subsidies The Department administers a number of grants and subsidy schemes on behalf of the Government. Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.



All subsidies are in connection with external parties and are expected to be settled in no more than 12 months. The Indigenous grants and subsidies are driven by five programmes that constitute the flexible and need-focused Indigenous Advancement Strategy (IAS):

Jobs, land and economy Children and schooling Safety and wellbeing Culture and capability Remote Australia strategies.

Payments to corporate Commonwealth entities and companies Payments to corporate Commonwealth entities and companies from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the Department. The appropriation to the Department is disclosed in Table A of the Appropriations Note.

1.18 Commonwealth Expenditure The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.



Note 2: Events after the reporting period Departmental

The Digital Transformation Office was established as an executive agency under the Communications portfolio on 1 July 2015. Net liabilities estimated at $0.580 million and commitments estimated at $0.090 million will be transferred from the Department to the Digital Transformation Office during 2015-16. Administered There are no known events occurring after the reporting period that could impact on the financial statements.



Note 3: Net cash appropriation arrangements 2015 2014 $'000 $'000 Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations1 14,513 13,100 Plus: depreciation/amortisation expenses previously funded through revenue appropriation (28,225) (19,748)

Total comprehensive loss - as per the Statement of Comprehensive Income (13,712) (6,648) 1From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.



Note 4: Expenses 2015 2014 $'000 $'000 Note 4A: Employee benefits Wages and salaries 197,825 149,254 Superannuation

Defined contribution plans 17,413 12,294 Defined benefit plans 24,264 18,553

Leave and other entitlements 29,100 18,630 Separation and redundancies 103 18,988 Other 3,898 5,185 Total employee benefits 272,603 222,904

Note 4B: Suppliers Goods and services supplied or rendered

Consultants, legal, contractors and secondees 62,066 40,845 Equipment, repairs and maintenance 16,137 3,311 General expenses1 13,138 7,917 Venue hire 21,772 3,000 Office accommodation, facility management and security 13,779 4,133 Information technology and communication 93,567 48,383 Travel 12,621 8,354

Total goods and services 233,080 115,943 Goods supplied in connection with

Related parties 13,095 2,161 External parties 5,849 3,648

Total goods supplied 18,944 5,809 Services rendered in connection with


Total services rendered 214,136 110,134 Total goods and services supplied or rendered 233,080 115,943 Other supplier expenses Operating lease rentals in connection with

External parties Minimum lease payments 30,008 24,953

Workers compensation expenses 4,326 1,782 Total other supplier expenses 34,334 26,735 Total suppliers 267,414 142,678

1 Includes $0.029 million audit fees to the ANAO for the financial statement audit of the Aboriginal and Torres Strait Islander Land Account (ATSILA) (2014: $0.029 million), which was not a resource received free of charge. Note 4C: Grants Public sector

Australian Government entities (related parties) 80 - Private sector

Commercial entities 390 13 Non-profit organisations 766 716

Total grants 1,236 729



2015 2014 $'000 $'000 Note 4D: Sale of assets Property, plant and equipment

Proceeds from sale 421 985 Carrying value of asset sold (440) (908) Selling expense (12) (23)

Total losses from asset sales 31 (54)

Note 5: Own-source income Own-source revenue Note 5A: Sale of goods and rendering of services Sale of goods in connection with

Related parties - 1 External parties 1 8

Total sale of goods 1 9 Rendering of services in connection with


Total rendering of services 13,284 21,457 Total sale of goods and rendering of services 13,285 21,466

Note 5B: Resources received free of charge Seconded staff 9,633 1,756 Employee benefits received free of charge - 4,055 ANAO audit fee

PM&C - Financial Statements Audit 412 432 Aboriginal Benefits Account - Financial Statements Audit 64 62

Accommodation received free of charge 514 319 Assets received free of charge - 279 Total resources received free of charge 10,623 6,903


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28

0 48

0 2

Mar

ket A

ppro

ach

Adju

sted

mar

ket t

rans

actio

ns

n/

a To

tal a

sset

s he

ld fo

r sal

e 43

0 78

5

Tota

l fai

r val

ue m

easu

rem

ents

of

ass

ets

in th

e st

atem

ent o

f fin

anci

al p

ositi

on

133,

758

136,

932



(a) A significant increase (decrease) in the price per square metre would result in a significantly higher (lower) fair value measurement. (b) A significant increase (decrease) in the consumed economic benefit / obsolescence of asset would result in a significantly lower (higher) fair value measurement. 1Recurring and non-recurring Level 3 fair value measurements - valuation process The Department procured valuation services from valuation experts and relied on the valuations made by these experts. The experts provided written assurance that the models developed to value assets are in compliance with accounting standards. The Department tests the procedures of the valuation model as an internal management review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. There is no change in the valuation technique since the prior year. Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (Depreciated Replacement Cost or DRC) approach. Professional judgement has been applied in calculating the consumed economic benefit / asset obsolescence relevant to the asset under consideration. The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class against the total useful life of each asset. 2 PM&C is currently marketing one residential property (staff housing) that is no longer essential to operational requirements. The asset is measured at the lesser of its carrying amount and fair value less cost to sell and is valued at a non-recurring basis. All other assets are valued on a recurring basis. 3Fair value measurement - highest and best use PM&C's assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all controlled assets is considered their highest and best use.


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

e 6B

: Rec

onci

liatio

n fo

r rec

urrin

g Le

vel 3

fair

valu

e m

easu

rem

ents

Rec

urrin

g Le

vel 3

fair

valu

e m

easu

rem

ents

- re

conc

iliat

ion

for a

sset

s

Non

-fina

ncia

l ass

ets

La

nd

Bui

ldin

gs

Leas

ehol

d im

prov

emen

ts

Prop

erty

, pla

nt

and

equi

pmen

t In

tang

ible

s To

tal

20

15

2014

20

15

2014

20

15

2014

20

15

2014

20

15

2014

20

15

2014

$'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00 0

$'00

0 $'

000

As

at 1

Jul

y 4,

740

- 22

,871

-

31,8

46

15,9

26

15,3

70

13,5

66

- -

74,8

27

29,4

92

Tota

l gai

ns/(l

osse

s) re

cogn

ised

in n

et c

ost o

f se

rvic

es1

- -

(11,

478)

(2

,248

) (6

,171

) (5

,114

) (6

,721

) (4

,751

) (3

,910

) -

(28,

280)

(1

2,11

3)

Tota

l gai

ns/(l

osse

s) re

cogn

ised

in o

ther

co

mpr

ehen

sive

inco

me2

- -

3,48

9 -

3,11

2 -

1,10

4 -

1,98

3 -

9,68

8 -

Pur

chas

es

- -

353

- 63

1,

171

6,39

5 7,

368

6,14

2 -

12,9

53

8,53

9 R

ecla

ssifi

catio

ns

- -

- -

- 81

3 -

(813

) -

- -

- Tr

ansf

ers

into

leve

l 33

- -

4,70

2 -

- -

2,7

62

- 9,

698

- 17

,162

-

Tran

sfer

s ou

t of l

evel

33

(4,7

40)

- (4

,074

) -

- -

- -

- -

(8,8

14)

- A

dditi

ons

thro

ugh

rest

ruct

ure

(Not

e 11

) -

4,74

0 -

25,1

19

- 19

,050

-

- -

- -

48,9

09

Tota

l as

at 3

0 Ju

ne

- 4,

740

15,8

63

22,8

71

28,8

50

31,8

46

18,9

10

15,3

70

13,9

13

- 77

,536

74

,827

1. T

hese

gai

ns/(l

osse

s) a

re p

rese

nted

in th

e S

tate

men

t of C

ompr

ehen

sive

Inco

me

unde

r 'D

epre

ciat

ion

and

amor

tisat

ion'

, 'L

osse

s fro

m a

sset

sal

es' a

nd 'W

rite-

dow

n an

d im

pairm

ent o

f ass

ets'

2.

The

se g

ains

/(los

ses)

are

pre

sent

ed in

Oth

er C

ompr

ehen

sive

Inco

me

unde

r 'C

hang

es in

ass

et re

valu

atio

n su

rplu

s'.

3. T

he D

epar

tmen

t und

erto

ok a

n as

set v

alua

tion

proc

ess

as a

t 30

June

201

5, re

sulti

ng in

mov

emen

ts o

f a n

umbe

r of a

sset

s be

twee

n le

vel 2

and

leve

l 3.



Note 7: Financial assets 2015 2014 $'000 $'000 Note 7A: Trade and other receivables Goods and services receivables in connection with

Related parties 1,311 1,472 External parties 452 94

Total goods and services receivables 1,763 1,566 Appropriations receivable

Existing programs 113,325 86,236 Total appropriations receivable 113,325 86,236 Other receivables

Statutory receivables 3,502 3,235 Employee provision funding receivable1 - 32,891

Total other receivables 3,502 36,126 Total trade and other receivables (gross) 118,590 123,928 Less impairment allowance

Goods and services (78) - Total impairment allowance (78) - Total trade and other receivables (net) 118,512 123,928 All receivables are expected to be recovered in no more than 12 months. Trade and other receivables (gross) aged as follows

Not overdue 117,668 123,453 Overdue by

0 to 30 days 120 183 31 to 60 days 396 189 61 to 90 days 38 68 More than 90 days 368 35

Total receivables (gross) 118,590 123,928 Impairment allowance aged as follows

Not overdue - - Overdue by

0 to 30 days - - 31 to 60 days - - 61 to 90 days - - More than 90 days (78) -

Total impairment allowance (78) - 1 This relates to the appropriation funding for employee leave entitlements transferred as a result of the Administrative Arrangements Orders on 18 September and 12 December 2013. This funding has been transferred to the Department and is recognised as appropriation receivable in 2015. Refer to Note 11.



Note 8: Non-financial assets The Department is currently drafting a property portfolio divestment strategy. This strategy will result in a number of properties throughout Australia being sold within the next 12 months. Impairment of non-financial assets

A net impairment of $382,000 was recognised in 2015 (2014: $31,000) for property plant and equipment. A revaluation was conducted in 2015 by independent valuers. All revaluations were conducted in accordance with the revaluation policy stated at Note 1. A net impairment of $36,000 was recognised in 2015 (2014: Nil) for intangibles. No intangibles are expected to be sold or disposed of within the next 12 months.


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

e 8A

: Rec

onci

liatio

n of

the

open

ing

and

clos

ing

bala

nces

of p

rope

rty,

pla

nt a

nd e

quip

men

t and

inta

ngib

les

Rec

onci

liatio

n of

the

open

ing

and

clos

ing

bala

nces

of p

rope

rty,

pla

nt a

nd e

quip

men

t and

inta

ngib

les

for 2

015

La

nd

Bui

ldin

gs

Leas

ehol

d im

prov

emen

ts

Plan

t and

eq

uipm

ent

Com

pute

r so

ftwar

e in

tern

ally

de

velo

ped

Com

pute

r so

ftwar

e pu

rcha

sed

Tota

l

$’00

0 $’00

0 $’00

0 $’00

0 $’00

0 $’00

0 $’00

0 A

s at

1 J

uly

2014

Gro

ss b

ook

valu

e 23

,560

67

,876

36

,774

19

,144

12

,194

5,

256

164,

804

Wor

k in

pro

gres

s -

887

449

3,96

9 2,

886

- 8,

191

Acc

umul

ated

dep

reci

atio

n/am

ortis

atio

n an

d im

pairm

ent

- (6

,154

) (5

,377

) (4

,981

) (7

,578

) (3

,060

) (2

7,15

0)

Tota

l as

at 1

Jul

y 20

14

23,5

60

62,6

09

31,8

46

18,1

32

7,50

2 2,

196

145,

845

Add

ition

s

By

purc

hase

-

353

63

6,39

5 6,

142

- 12

,953

R

eval

uatio

ns a

nd im

pairm

ents

reco

gnis

ed in

oth

er c

ompr

ehen

sive

in

com

e (3

,925

) 1,

463

3,11

2 1,

104

818

1,16

5 3,

737

Rec

lass

ifica

tions

-

(2)

(5)

(556

) (1

) -

(564

) D

epre

ciat

ion/

amor

tisat

ion

- (1

2,40

3)

(6,0

20)

(5,9

29)

(2,9

96)

(877

) (2

8,22

5)

Writ

e-do

wn

and

impa

irmen

ts re

cogn

ised

in n

et c

ost o

f ser

vice

s -

- (1

46)

(236

) (2

8)

(8)

(418

) To

tal a

s at

30

June

201

5 19

,635

52

,020

28

,850

18

,910

11

,437

2,

476

133,

328

Tota

l as

at 3

0 Ju

ne 2

015

repr

esen

ted

by

G

ross

boo

k va

lue

Fa

ir va

lue

19,6

35

51,5

75

28,9

77

14,4

89

5,18

9 2,

476

122,

341

Wor

k in

pro

gres

s -

474

92

5,62

0 6,

536

- 12

,722

A

ccum

ulat

ed d

epre

ciat

ion/

amor

tisat

ion

and

impa

irmen

t -

(29)

(2

19)

(1,1

99)

(288

) -

(1,7

35)

Tota

l as

at 3

0 Ju

ne 2

015

19,6

35

52,0

20

28,8

50

18,9

10

11,4

37

2,47

6 13

3,32

8


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Rec

onci

liatio

n of

the

open

ing

and

clos

ing

bala

nces

of p

rope

rty, p

lant

and

equ

ipm

ent a

nd in

tang

ible

s fo

r 201

4

La

nd

Bui

ldin

gs

Leas

ehol

d im

prov

emen

ts

Pla

nt a

nd

equi

pmen

t

Com

pute

r so

ftwar

e in

tern

ally

de

velo

ped

Com

pute

r so

ftwar

e pu

rcha

sed

Tota

l

$’000

$’000

$’000

$’000

$’000

$’000

$’000

As

at 1

Jul

y 20

13

G

ross

boo

k va

lue

Fa

ir va

lue

- -

16,1

89

10,0

41

5,61

0 3,

407

35,2

47

Wor

k in

pro

gres

s -

- -

3,95

5 4,

733

- 8,

688

Acc

umul

ated

dep

reci

atio

n/am

ortis

atio

n an

d im

pairm

ent

- -

(263

) (3

03)

(4,7

75)

(2,1

03)

(7,4

44)

Tota

l as

at 1

Jul

y 20

13

- -

15,9

26

13,6

93

5,56

8 1,

304

36,4

91

Add

ition

s

By

purc

hase

-

- 1,

171

7,36

8 2,

596

1,62

1 12

,756

Fr

om a

cqui

sitio

ns o

f ent

ities

or o

pera

tions

(inc

l. re

stru

ctur

e)

23,5

60

68,7

63

19,0

50

2,63

5 2,

141

228

116,

377

Rec

lass

ifica

tions

-

- 81

3 (8

13)

- -

- D

epre

ciat

ion/

amor

tisat

ion

- (6

,154

) (5

,114

) (4

,720

) (2

,803

) (9

57)

(19,

748)

Im

pairm

ents

reco

gnis

ed in

net

cos

t of s

ervi

ces

- -

- (3

1)

- -

(31)

To

tal a

s at

30

June

201

4 23

,560

62

,609

31

,846

18

,132

7,

502

2,19

6 14

5,84

5

To

tal a

s at

30

June

201

4 re

pres

ente

d by

Gro

ss b

ook

valu

e

Fair

valu

e 23

,560

67

,876

36

,774

19

,144

12

,194

5,

256

164,

804

Wor

k in

pro

gres

s -

887

449

3,96

9 2,

886

- 8,

191

Acc

umul

ated

dep

reci

atio

n/am

ortis

atio

n an

d im

pairm

ent

- (6

,154

) (5

,377

) (4

,981

) (7

,578

) (3

,060

) (2

7,15

0)

Tota

l as

at 3

0 Ju

ne 2

014

23,5

60

62,6

09

31,8

46

18,1

32

7,50

2 2,

196

145,

845



2015 2014 $'000 $'000 Note 8B: Prepayments Prepayments expected to be recovered

No more than 12 months 2,451 6,137 More than 12 months 153 76

Total prepayments 2,604 6,213 Note 9: Payables Note 9A: Suppliers Trade creditors and accruals 31,714 35,549 Total suppliers 31,714 35,549 Suppliers expected to be settled within 12 months


Total suppliers 31,714 35,549 Settlement is usually made within 30 days. Note 9B: Other payables Salaries and wages 7,202 6,636 Separation and redundancies payable 520 15,186 Superannuation 1,451 1,352 Unearned income 81 51 Lease liability 12,478 12,310 Lease incentive 3,700 2,974 Other 907 905 Total other payables 26,339 39,414 Other payables expected to be settled

No more than 12 months 11,086 23,401 More than 12 months 15,253 16,013

Total other payables 26,339 39,414 Note 10: Provisions

Note 10A: Employee provisions Annual Leave 25,680 28,443 Long service leave 47,078 47,618 Total employee provisions 72,758 76,061 Employee provisions expected to be settled

No more than 12 months 21,926 22,393 More than 12 months 50,832 53,668

Total employee provisions 72,758 76,061



Note 10B: Make good provisions

Make good

Provision Total $’000 $’000 As at 1 July 2014 1,302 1,302 Additional provisions made 79 79 Amounts used (150) (150) Gain on reversal of provision (93) (93) Unwinding of discount or change in discount rate 52 52 Total as at 30 June 2015 1,190 1,190


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

e 11

: Res

truc

turin

g N

ote

11A

: Dep

artm

enta

l res

truc

turin

g

D

epar

tmen

tal r

estr

uctu

ring

(201

4-15

) Th

e D

epar

tmen

t did

not

ass

ume

or re

linqu

ish

any

depa

rtmen

tal f

unct

ions

as

a re

sult

of re

stru

ctur

ing

durin

g 20

15.

Dep

artm

enta

l res

truc

turin

g (2

013-

14)

D

ereg

ulat

ion

Offi

ce

for

Wom

en

IND

IGEN

OU

S A

FFA

IRS

Fi

nanc

e D

SS

AG

D

DoC

D

EEW

R

Ed

Emp

DSS

D

oE

Hea

lth

Indu

stry

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 FU

NC

TIO

N A

SSU

MED

Asse

ts re

cogn

ised

Rec

eiva

bles

1,

791

460

825

456

- -

- 28

,115

1,

265

- -

App

ropr

iatio

n re

ceiv

able

-

- -

- 3,

942

- -

- -

1,75

0 -

Land

and

bui

ldin

gs

- -

- -

- 2,

535

119

108,

719

- -

- P

rope

rty, p

lant

and

equ

ipm

ent

- -

- -

- 18

27

2,

550

- 40

-

Inta

ngib

les

93

- -

- -

197

- 2,

079

- -

- A

sset

s he

ld fo

r sal

e -

- -

- -

- -

1,69

3 -

- -

Tota

l ass

ets

reco

gnis

ed

1,88

4 46

0 82

5 45

6 3,

942

2,75

0 14

6 14

3,15

6 1,

265

1,79

0 -

Liab

ilitie

s re

cogn

ised

Leas

e pa

yabl

es

- -

- -

- -

- 8,

171

- -

- Em

ploy

ee p

rovi

sion

s 1,

969

474

970

456

- 2,

941

9,97

0 30

,656

1,

564

2,10

2 36

4 M

ake

good

pro

visi

ons

- -

- -

- -

- 75

4 -

- -

Tota

l lia

bilit

ies

reco

gnis

ed

1,96

9 47

4 97

0 45

6 -

2,94

1 9,

970

39,5

81

1,56

4 2,

102

364

Net

ass

ets/

(liab

ilitie

s) a

ssum

ed

(85)

(1

4)

(145

) -

3,94

2 (1

91)

(9,8

24)

103,

575

(299

) (3

12)

(364

) In

com

e

Rec

ogni

sed

by th

e re

ceiv

ing

entit

y 18

8 -

- -

- -

- -

- -

- R

ecog

nise

d by

the

losi

ng e

ntity

40

1

- -

- -

- 1,

785

2,47

7 -

- To

tal i

ncom

e 22

8 1

- -

- -

- 1,

785

2,47

7 -

- Ex

pens

es

R

ecog

nise

d by

the

rece

ivin

g en

tity

4,86

9 1,

811

- -

- -

- -

- -

- R

ecog

nise

d by

the

losi

ng e

ntity

3,

482

703

1,61

5 55

0 12

,814

4,

620

6,93

3 64

,880

2,

477

2,63

2 46

3 To

tal e

xpen

ses

8,35

1 2,

514

1,61

5 55

0 12

,814

4,

620

6,93

3 64

,880

2,

477

2,63

2 46

3


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

es:

1. A

s a

resu

lt of

mac

hine

ry o

f gov

ernm

ent c

hang

es th

at w

ere

refle

cted

in th

e A

dmin

istra

tive

Arra

ngem

ents

Ord

er (A

AO) o

f 18

Sep

tem

ber 2

013,

3 O

ctob

er 2

013

and

12 D

ecem

ber 2

013

(the

AAO

ch

ange

s), t

he D

epar

tmen

t ass

umed

resp

onsi

bilit

y fo

r the

follo

win

g fu

nctio

ns:

- D

ereg

ulat

ion

from

the

Dep

artm

ent o

f Fin

ance

, how

ever

no

Adm

inis

tere

d fu

ndin

g or

bal

ance

s w

ere

trans

ferre

d;

- O

ffice

for W

omen

from

the

Dep

artm

ent o

f Soc

ial S

ervi

ces

(DSS

); an

d -

Indi

geno

us A

ffairs

func

tions

from

Atto

rney

Gen

eral

's D

epar

tmen

t (A

GD

), D

epar

tmen

t of C

omm

unic

atio

ns (D

oC),

form

er D

epar

tmen

t of E

mpl

oym

ent,

Edu

catio

n an

d W

orkp

lace

Rel

atio

ns

(DE

EWR

), D

epar

tmen

t of E

duca

tion

(Ed)

, Dep

artm

ent o

f Em

ploy

men

t (Em

p), D

epar

tmen

t of E

nviro

nmen

t (D

oE),

Dep

artm

ent o

f Hea

lth (H

ealth

) and

the

Dep

artm

ent o

f Ind

ustry

(Ind

ustry

). 2.

The

net

ass

ets

assu

med

from

all

entit

ies

wer

e $9

6.28

3m.

3. T

he In

dige

nous

Affa

irs fu

nctio

n fo

r inc

ome

and

expe

nses

reco

gnis

ed b

y th

e re

ceiv

ing

entit

y ha

ve n

ot b

een

split

by

trans

ferr

ing

Dep

artm

ent f

or th

e R

estru

ctur

e N

ote.

The

tota

l for

Indi

geno

us

Affa

irs is

sho

wn

in N

ote

34B,

Out

com

e 2.

Nat

iona

l C

ompa

ct,

Phila

nthr

opy

and

Volu

ntee

ring

D

SS

$'

000

FUN

CTI

ON

REL

INQ

UIS

HED

Liab

ilitie

s re

linqu

ishe

d

Empl

oyee

pro

visi

ons

123

Tota

l lia

bilit

ies

relin

quis

hed

123

Net

liab

ilitie

s re

linqu

ishe

d 12

3

N

otes

: 1.

As

a re

sult

of m

achi

nery

of g

over

nmen

t cha

nges

that

wer

e re

flect

ed in

the

AAO

of 1

8 S

epte

mbe

r 201

3, 3

Oct

ober

201

3 an

d 12

Dec

embe

r 201

3 (th

e AA

O c

hang

es),

the

Dep

artm

ent t

rans

ferre

d re

spon

sibi

lity

for t

he N

atio

nal C

ompa

ct, P

hila

nthr

opy

and

Vol

unte

erin

g fu

nctio

n to

DS

S.

2. T

he n

et li

abilit

ies

relin

quis

hed

to a

ll en

titie

s w

as $

0.12

3m.


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

e 11

B: A

dmin

iste

red

rest

ruct

urin

g A

dmin

iste

red

rest

ruct

urin

g (2

014-

15)

N

o ad

min

iste

red

func

tions

wer

e as

sum

ed o

r rel

inqu

ishe

d as

a re

sult

of re

stru

ctur

ing

durin

g 20

15.

Adm

inis

tere

d re

stru

ctur

ing

(201

3-14

)

O

ffice

for

Wom

en

IND

IGEN

OU

S AF

FAIR

S

DSS

AG

D

DoC

D

EEW

R

Emp

Ed

DSS

D

oE

Hea

lth

Indu

stry

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

$'00

0 $'

000

FUN

CTI

ON

S A

SSU

MED

As

sets

reco

gnis

ed

Cas

h -

- -

- -

- 7,

248

- -

- Tr

ade

and

othe

r rec

eiva

bles

-

- -

946

63

1,84

7 25

,393

68

58

9 14

5 A

dmin

iste

red

inve

stm

ents

-

- -

- -

- 1,

696,

285

- -

38,4

28

Oth

er In

vest

men

ts

- -

- -

- -

2,42

1,33

0 -

- -

Oth

er n

on-fi

nanc

ial a

sset

s -

- -

- -

- 8,

859

- -

- To

tal a

sset

s re

cogn

ised

-

- -

946

63

1,84

7 4,

159,

115

68

589

38,5

73

Liab

ilitie

s re

cogn

ised

S

uppl

ier p

ayab

les

- -

- 13

8 4,

556

6 1,

716

- 19

9 31

G

rant

s pa

yabl

e -

- -

- -

- 83

0 -

- -

Oth

er p

ayab

le

- -

-

- 96

0 3,

501

- -

- To

tal l

iabi

litie

s re

cogn

ised

-

- -

138

4,55

6 96

6 6,

047

- 19

9 31

N

et a

sset

s/(li

abili

ties)

ass

umed

-

- -

808

(4,4

93)

881

4,15

3,06

8 68

39

0 38

,542

In

com

e

R

ecog

nise

d by

the

rece

ivin

g en

tity

- -

- -

- -

- -

- -

Rec

ogni

sed

by th

e lo

sing

ent

ity

- -

11

771

82

14,3

58

24,6

80

3 -

- To

tal I

ncom

e -

- 11

77

1 82

14

,358

24

,680

3

- -

Expe

nses

R

ecog

nise

d by

the

rece

ivin

g en

tity

2,55

3 -

- -

- -

- -

- -

Rec

ogni

sed

by th

e lo

sing

ent

ity

1,15

3 30

,835

8,

077

80,2

25

32,5

37

9,59

2 13

5,64

3 32

,468

71

,754

7,

894

Tota

l exp

ense

s 3,

706

30,8

35

8,07

7 80

,225

32

,537

9,

592

135,

643

32,4

68

71,7

54

7,89

4


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

es:

1. A

s a

resu

lt of

mac

hine

ry o

f gov

ernm

ent c

hang

es th

at w

ere

refle

cted

in th

e A

dmin

istra

tive

Arra

ngem

ents

Ord

er (A

AO) o

f 18

Sep

tem

ber 2

013,

and

12

Dec

embe

r 201

3 (th

e A

AO c

hang

es),

PM

&C

ass

umed

resp

onsi

bilit

y fo

r the

follo

win

g fu

nctio

ns:

- D

ereg

ulat

ion

from

the

Dep

artm

ent o

f Fin

ance

, how

ever

no

Adm

inis

tere

d fu

ndin

g or

bal

ance

s w

ere

trans

ferre

d;

- O

ffice

for W

omen

from

the

Dep

artm

ent o

f Soc

ial S

ervi

ces

(DSS

); an

d -

Indi

geno

us A

ffairs

func

tions

from

Atto

rney

Gen

eral

's D

epar

tmen

t (A

GD

), D

epar

tmen

t of C

omm

unic

atio

ns (D

oC),

form

er D

epar

tmen

t of E

mpl

oym

ent,

Edu

catio

n an

d W

orkp

lace

Rel

atio

ns

(DE

EWR

), D

epar

tmen

t of E

nviro

nmen

t (E

nviro

nmen

t), D

epar

tmen

t of H

ealth

(Hea

lth) a

nd th

e D

epar

tmen

t of I

ndus

try (I

ndus

try).

2. T

he n

et a

sset

s as

sum

ed fr

om a

ll en

titie

s w

ere

$4,1

89.2

64m

. 3.

The

Indi

geno

us A

ffairs

func

tion

for i

ncom

e an

d ex

pens

es re

cogn

ised

by

the

rece

ivin

g en

tity

have

not

bee

n sp

lit b

y tra

nsfe

rring

Dep

artm

ent f

or th

e R

estru

ctur

e N

ote.

The

tota

l for

Indi

geno

us

Affa

irs is

sho

wn

in N

ote

34C

, Out

com

e 2.

Nat

iona

l C

ompa

ct,

Phila

nthr

opy

and

Volu

ntee

ring

AIA

TSIS

DSS

Ed

$'00

0 $'

000

FUN

CTI

ON

S R

ELIN

QU

ISH

ED

Asse

ts re

linqu

ishe

d

Tr

ade

and

othe

r rec

eiva

bles

4

-

A

dmin

iste

red

inve

stm

ent

- 38

,428

To

tal a

sset

s re

linqu

ishe

d 4

38,4

28

Net

ass

ets

relin

quis

hed

(4)

(38,

428)

Not

es:

1. A

s a

resu

lt of

mac

hine

ry o

f gov

ernm

ent c

hang

es th

at w

ere

refle

cted

in th

e A

dmin

istra

tive

Arra

ngem

ents

Ord

er (A

AO) o

f 18

Sep

tem

ber 2

013,

and

12

Dec

embe

r 201

3 (th

e A

AO c

hang

es),

PM

&C

tran

sfer

red

resp

onsi

bilit

y fo

r the

Nat

iona

l Com

pact

, Phi

lant

hrop

y an

d V

olun

teer

ing

func

tion

to th

e D

epar

tmen

t of S

ocia

l Ser

vice

s an

d th

e A

ustra

lian

Inst

itute

of A

borig

inal

and

Tor

res

Stra

it Is

land

er S

tudi

es to

the

Dep

artm

ent o

f Edu

catio

n.

2. T

he n

et a

sset

s re

linqu

ishe

d fro

m a

ll en

titie

s w

as $

38.4

32m

.



Note 12: Cash flow reconciliation 2015 2014 $'000 $'000 Reconciliation of net cost of services to net cash from operating activities

Net cost of services (546,057) (357,798) Revenue from Government 528,523 351,150

Adjustments for non-cash items

Depreciation and amortisation 28,225 19,748 Sale of assets 31 (54) Net write down of non-financial assets 418 31 Assets received free of charge - (279) Reclassification of non-financial assets 565 -

Movements in assets and liabilities Assets

(Increase) / decrease in net receivables 17,206 (60,044) (Increase) / decrease in accrued revenue (3,238) (849) (Increase) / decrease in prepayments 3,609 (2,200)

Liabilities Increase / (decrease) in employee provisions (3,303) 1,056 Increase / (decrease) in supplier payables (9,343) 30,882 Increase / (decrease) in grants payable 370 (528) Increase / (decrease) in other payables (13,075) 20,676 Increase / (decrease) in other provisions (112) 323

Net cash from operating activities 3,819 2,114



Note 13: Impact of the G20 Taskforce on the 2014-15 Statement of Comprehensive Income

Departmental (excluding G20

Taskforce)

G20 Taskforce1

Total

$'000 $'000 $'000 EXPENSES Employee benefits 255,164 17,439 272,603 Supplier expenses 157,606 109,808 267,414 Grants 1,236 - 1,236 Depreciation and amortisation 28,153 72 28,225 Finance costs 52 - 52 Write-down and impairment of assets 442 55 497 Losses from asset sales 31 - 31 Total expenses 442,684 127,374 570,058 LESS: OWN-SOURCE INCOME Revenue Sale of goods and rendering of services 13,264 21 13,285 Resources received free of charge 10,623 - 10,623 Total revenue 23,887 21 23,908 Gains Unwinding of discount on make good 42 51 93 Total gains 42 51 93 Total own-source income 23,929 72 24,001 Net cost of services 418,755 127,302 546,057 Revenue from Government 396,065 132,458 528,523 Surplus (Deficit) attributable to the Australian Government (22,690) 5,156 (17,534)

1 G20 Appropriation was provided to the Department in the 2013-14 Budget process. The revenue from Government amount differs to the amount published in the 2014-15 Portfolio Budget Statements as the budget for the corporate components are included under departmental. The Department actively sought efficiencies in hosting the G20 Summit resulting in $26.600 million being returned to Budget.



Note 14: Senior management personnel remuneration 2015 2014 $ $ Short-term employee benefits

Salary 23,493,120 17,451,178 Other 4,167,228 1,967,609

Total short-term employee benefits 27,660,348 19,418,787 Post-employment benefits:

Superannuation 5,482,994 3,955,410 Total post-employment benefits 5,482,994 3,955,410 Other long-term benefits

Annual leave 1,999,197 1,447,790 Long-service leave 639,979 464,086

Total other long-term benefits 2,639,176 1,911,876 Termination and cessation payments

Termination and cessation payments 1,264,165 623,824 Total termination and cessation payments 1,264,165 623,824 Total senior executive remuneration expenses 37,046,683 25,909,897

The total number of senior management personnel that are included in the above table are 183 (2014: 133).

Senior management on acting arrangements are included where the length of the arrangement is longer than 6 months.

Following the changes to the Administrative Arrangements Order of 18 September, 3 October and 12 December 2013, the Department assumed responsibility for the Indigenous Affairs function, Deregulation and Women’s policy, as well as relinquishing National Compact, Philanthropy and Volunteering. As a result, 2015 includes 12 months of expenses for the transferred functions while 2014 includes approximately six months.



Note 15: Financial instruments 2015 2014 $'000 $'000 Note 15A: Categories of financial instruments Financial assets Loans and receivables

Cash and cash equivalents 12,063 1,633 Goods and services receivables 1,685 1,566 Accrued revenue 5,397 2,159

Carrying amount of financial assets 19,145 5,358 Financial liabilities At amortised cost

Trade creditors and accruals 31,714 35,549 Grants 370 -

Carrying amount of financial liabilities 32,084 35,549 Note 15B: Net gains or losses on financial assets Loans and receivables

Impairment 78 - Net loss on loans and receivables 78 - Net loss on financial assets 78 -

Note 15C: Fair value of financial instruments The fair value of financial instruments approximate their carrying amounts.

Note 15D: Credit risk The Department is exposed to minimal credit risk as loans and receivables are comprised of cash, goods and services receivable and accrued revenue. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of these outstanding receivables, 2015: $1.763 million (2014: $1.566 million). The Department has assessed the risk of the default on payment and has allocated $0.078 million to an impairment allowance account (2014: Nil). The Department manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. The Department holds no collateral to mitigate against credit risk. Note 7A provides aging of gross receivables past due and an analysis of impaired receivables.

Note 15E: Liquidity risk The Department’s financial liabilities are suppliers and grants payable. The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the Department (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The maturities for non-derivative financial liabilities of the Department are within one year in both the current and prior year.



Note 15F: Market risk The Department holds basic financial instruments that do not expose the Department to interest risk, currency risk or other price risk.

Note 16: Financial assets reconciliation 2015 2014 $'000 $'000 Financial assets Notes Total financial assets as per Statement of Financial Position 135,972 127,720 Less non-financial instrument components

Appropriation receivables 7A 113,325 86,236 Other receivables 7A 3,502 36,126

Total non-financial instrument components 116,827 122,362 Total financial assets as per Financial Instruments Note 15A 19,145 5,358



Note 17: Administered expenses 2015 2014 $'000 $'000 Note 17A: Employee benefits Wages and salaries 676 662 Superannuation

Defined contribution plans 89 81 Defined benefit plans 41 33

Leave and other entitlements 68 190 Separation and redundancies - 22 Total employee benefits 874 988


Outsourced providers, contractors and consultants 50,323 50,038 Equipment, repairs and maintenance 7,570 7,475 General expenses 4,699 4,761 Travel 1,952 2,439 Information technology and communications 830 1,371

Total goods and services supplied or rendered 65,374 66,084 Goods supplied in connection with

Related parties 28 50 External parties 758 620

Total goods supplied 786 670 Services rendered in connection with

Related parties 932 813 External parties 63,656 64,601

Total services rendered 64,588 65,414 Total goods and services supplied or rendered 65,374 66,084 Other supplier expenses Operating lease rentals in connection with

External parties Minimum lease payments 10 61

Workers compensation expenses 19 4 Total other supplier expenses 29 65 Total suppliers 65,403 66,149



2015 2014 $'000 $'000 Note 17C: Grants Public sector

Australian Government entities (related parties) 12,159 5,214 Local Governments 47,465 22,027 State and Territory Governments 45,052 56,045

Private sector Non-profit organisations 937,931 561,017 Commercial entities 175,993 83,730

Total grants 1,218,600 728,033 Note 17D: Finance costs Service costs - 3,686 Unwinding of discount 547 410 Total finance costs 547 4,096

Note 17E: Payments associated with land councils Payments associated with land councils administration 40,803 18,355 Land councils distributions 47,510 27,644 Total payments associated with land councils 88,313 45,999

Note 17F: Payments to corporate Commonwealth entities and companies Aboriginal Hostels Limited 38,044 25,582 Australian Institute of Aboriginal and Torres Strait Islander Studies - 2,279 Indigenous Business Australia 34,328 22,675 Indigenous Land Corporation 9,527 6,443 Torres Strait Regional Authority 48,159 33,097 Total payments to corporate Commonwealth entities and companies 130,058 90,076

Note 18: Administered income Note 18A: Other revenue Return of grant funding 18,463 25,361 Lease rental income 1,607 1,465 Other - 2,236 Total other revenue 20,070 29,062


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

e 19

: A

dmin

iste

red

fair

valu

e m

easu

rem

ent

Not

e 19

A: F

air v

alue

mea

sure

men

ts, v

alua

tion

tech

niqu

e an

d in

puts

use

d

Fa

ir va

lue

mea

sure

men

ts a

t the

en

d of

the

repo

rtin

g pe

riod

For L

evel

s 2

and

3 fa

ir va

lue

mea

sure

men

ts

20

15

2014

C

ateg

ory

(Lev

el 1

, 2

or 3

) Va

luat

ion

tech

niqu

es1

Inpu

ts u

sed

Ran

ge (w

eigh

ted

aver

age)

Sens

itivi

ty o

f the

fair

valu

e m

easu

rem

ent t

o ch

ange

s in

ob

serv

able

inpu

ts

$'

000

$'00

0 Fi

nanc

ial a

sset

s

Inve

stm

ents

in c

orpo

rate

C

omm

onw

ealth

ent

ities

and

co

mpa

nies

1,77

7,72

9 1,

678,

032

3 C

ost a

ppro

ach

Aust

ralia

n G

over

nmen

t's p

ropo

rtion

al

inte

rest

in th

e ne

t ass

ets

of th

e en

titie

s at

bal

ance

dat

e.

Net

ass

ets

n/a

Tota

l fin

anci

al a

sset

s 1,

777,

729

1,67

8,03

2

Non

-fina

ncia

l ass

ets

Pr

oper

ty, p

lant

and

equ

ipm

ent

1,43

7 1,

753

3 C

ost a

ppro

ach

Con

sum

ed e

cono

mic

be

nefit

/Obs

oles

cenc

e of

ass

et

6%-1

00%

(a

)

Tota

l non

-fina

ncia

l ass

ets

1,43

7 1,

753

To

tal f

air v

alue

mea

sure

men

ts

of a

sset

s in

the

stat

emen

t of

finan

cial

pos

ition

1,

779,

166

1,67

9,78

5

1 The

met

hods

and

val

uatio

n te

chni

ques

use

d fo

r the

pur

pose

of m

easu

ring

fair

valu

e of

ass

ets

and

liabi

litie

s in

201

5 ar

e un

chan

ged

from

the

prev

ious

repo

rting

per

iod.

R

ecur

ring

and

non-

recu

rrin

g Le

vel 3

fair

valu

e m

easu

rem

ents

- va

luat

ion

proc

ess

Inve

stm

ents

in c

orpo

rate

Com

mon

wea

lth e

ntiti

es a

nd c

ompa

nies

Fa

ir va

lue

is a

sses

sed

as th

e A

ustra

lian

Gov

ernm

ent's

pro

porti

onal

inte

rest

in th

e ne

t ass

ets

of th

e en

titie

s at

bal

ance

dat

e.

Pro

perty

, pla

nt a

nd e

quip

men

t Th

e fa

ir va

lue

of p

rope

rty, p

lant

and

equ

ipm

ent a

sset

s ha

ve b

een

take

n to

be

the

depr

ecia

ted

repl

acem

ent c

ost a

s as

sess

ed b

y an

inde

pend

ent v

alue

r. R

epla

cem

ent c

ost i

s m

easu

red

by re

fere

nce

to th

e lo

wes

t cos

t of r

epla

cing

the

asse

t or r

epai

ring

the

asse

t.

(a) R

ecur

ring

Leve

l 3 fa

ir va

lue

mea

sure

men

ts -

sens

itivi

ty o

f inp

uts

Pro

perty

, Pla

nt a

nd E

quip

men

t Th

e si

gnifi

cant

uno

bser

vabl

e in

puts

use

d in

the

fair

valu

e m

easu

rem

ent o

f the

ent

ity's

leas

ehol

d im

prov

emen

ts a

sset

cla

sses

rela

te to

the

cons

umed

eco

nom

ic b

enef

it / a

sset

ob

sole

scen

ce. A

sig

nific

ant i

ncre

ase

(dec

reas

e) in

this

inpu

t wou

ld re

sult

in a

sig

nific

antly

low

er (h

ighe

r) fa

ir va

lue

mea

sure

men

t.


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Fair

valu

e m

easu

rem

ent -

hig

hest

and

bes

t use

P

M&

C's

ass

ets

are

held

for o

pera

tiona

l pur

pose

s an

d no

t hel

d fo

r the

pur

pose

s of

der

ivin

g a

prof

it. T

he c

urre

nt u

se o

f all

cont

rolle

d as

sets

is c

onsi

dere

d th

eir h

ighe

st a

nd b

est u

se.

Not

e 19

B: R

econ

cilia

tion

for r

ecur

ring

Leve

l 3 fa

ir va

lue

mea

sure

men

ts

R

ecur

ring

Leve

l 3 fa

ir va

lue

mea

sure

men

ts -

reco

ncili

atio

n fo

r ass

ets

Fi

nanc

ial a

sset

s N

on-fi

nanc

ial a

sset

s

A

dmin

iste

red

inve

stm

ents

Pr

oper

ty, p

lant

and

equ

ipm

ent

20

15

2014

20

15

2014

$'00

0 $'

000

$'00

0 $'

000

As

at 1

Jul

y 1,

678,

032

1,05

4 1,

753

1,48

3 To

tal g

ains

/(los

ses)

reco

gnis

ed in

net

cos

t of s

ervi

ces1

- -

(1,1

57)

(357

) To

tal g

ains

/(los

ses)

reco

gnis

ed in

Adm

inis

tere

d ot

her c

ompr

ehen

sive

inco

me2

99,6

97

(19,

307)

22

-

Loss

es th

roug

h re

stru

ctur

e (r

efer

Not

e 11

)3 -

(38,

428)

-

- P

urch

ases

-

- 1

627

Ass

ets

rece

ived

free

of c

harg

e -

- 81

8 -

Add

ition

s th

roug

h re

stru

ctur

e (re

fer N

ote

11)

- 1,

734,

713

- -

Tota

l as

at 3

0 Ju

ne

1,77

7,72

9 1,

678,

032

1,

437

1,75

3

1. T

hese

gai

ns/ (

loss

es) a

re p

rese

nted

in th

e A

dmin

iste

red

Sche

dule

of C

ompr

ehen

sive

Inco

me

unde

r 'D

epre

ciat

ion'

and

'Los

ses

from

ass

et s

ales

'. 2.

The

se g

ains

/ (lo

sses

) are

pre

sent

ed in

the

Adm

inis

tere

d R

econ

cilia

tion

Sche

dule

und

er ‘A

dmin

iste

red

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stm

ents

’ and

‘Equ

ity in

ject

ion

to c

orpo

rate

Com

mon

wea

lth e

ntiti

es a

nd

com

pani

es’.

3. T

hese

gai

ns/ (

loss

es) a

re p

rese

nted

in th

e A

dmin

iste

red

Res

truct

urin

g N

ote

unde

r fun

ctio

ns re

linqu

ishe

d.



Note 20: Administered financial assets 2015 2014 $'000 $'000 Note 20A: Cash and cash equivalents

Cash on hand or on deposit 428 169 Aboriginal Benefit Account - Special Account 14,133 17,569 Aboriginal and Torres Strait Islander Land Account - Special Account 2 1 Total cash and cash equivalents 14,563 17,739

Note 20B: Trade and other receivables Goods and services receivables in connection with

Related parties 5 298 External parties 67 -

Total goods and services receivables 72 298 Other receivables

Statutory receivables 19,587 17,293 Interest receivable 30,920 30,536 Grants receivable 23,278 27,061 Special account receivable from the OPA 9,947 13,493 Other 305 376

Total other receivables 84,037 88,759 Total trade and other receivables (gross) 84,109 89,057 Less impairment allowance

Other receivables (11,473) (8,610) Total impairment allowance (11,473) (8,610) Total trade and other receivables (net) 72,636 80,447 All receivables are expected to be recovered in no more than 12 months. Trade and other receivables (gross) aged as follows

Not overdue 66,363 62,513 Overdue by:

0 to 30 days 1,127 13,095 31 to 60 days 112 613 61 to 90 days 494 955 More than 90 days 16,013 11,881

Total trade and other receivables (gross) 84,109 89,057 Impairment allowance aged as follows

Not overdue - - Overdue by:

0 to 30 days - - 31 to 60 days - - 61 to 90 days - - More than 90 days (11,473) (8,610)

Total impairment allowance (11,473) (8,610) Credit terms were within 30 days (2014: 30 days).



Reconciliation of the Impairment Allowance Movements in relation to 2015

Other

receivables Total $'000 $'000 Opening balance (8,610) (8,610)

Amounts recognised through restructure - - Amounts written off - - Amounts recovered and reversed - - Increase recognised in net surplus (2,863) (2,863)

Closing balance (11,473) (11,473)

Movements in relation to 2014

Other

receivables Total $'000 $'000 Opening balance - -

Amounts recognised through restructure (6,715) (6,715) Amounts written off - - Amounts recovered and reversed - - Increase recognised in net surplus (1,895) (1,895)

Closing balance (8,610) (8,610) 2015 2014 $'000 $'000 Note 20C: Other Investments

Bank term deposits 2,480,243 2,186,810 Nominal semi-government bonds - 233,406 Total other investments 2,480,243 2,420,216

All other investments are expected to be recovered in no more than 12 months. Note 20D: Investments in corporate Commonwealth entities and companies Equity interest in

Aboriginal Hostels Limited 146,282 149,541 Anindilyakwa Land Council 8,639 5,769 Central Land Council 35,559 36,129 Indigenous Land Corporation 217,821 193,767 Indigenous Business Australia 1,185,459 1,116,246

National Australia Day Council Limited 1,168 1,098 Northern Land Council 10,105 3,999 Outback Stores Pty Ltd 41,496 41,520 Tiwi Land Council 1,613 1,670 Torres Strait Regional Authority 73,876 72,356 Wreck Bay Aboriginal Community Council 55,711 55,937

Total investments in corporate Commonwealth entities and companies 1,777,729 1,678,032

All investments in corporate Commonwealth entities and companies are expected to be recovered in more than 12 months. Additional information relating to investments is disclosed in Note 25.

.


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

e 21

: Adm

inis

tere

d no

n-fin

anci

al a

sset

s

Not

e 21

A: R

econ

cilia

tion

of th

e op

enin

g an

d cl

osin

g ba

lanc

es o

f pro

pert

y, p

lant

and

equ

ipm

ent

R

econ

cilia

tion

of th

e op

enin

g an

d cl

osin

g ba

lanc

es o

f pro

pert

y, p

lant

and

equ

ipm

ent f

or 2

015

B

uild

ings

Pl

ant a

nd e

quip

men

t To

tal

20

15

2014

20

15

2014

20

15

2014

$’00

0 $’000

$’00

0 $’000

$’00

0 $’000

As

at 1

Jul

y 20

14

Gro

ss v

alue

-

- 2,

207

1,85

1 2,

207

1,85

1 A

ccum

ulat

ed d

epre

ciat

ion

and

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irmen

t -

- (4

54)

(98)

(4

54)

(98)

To

tal a

s at

1 J

uly

2014

-

- 1,

753

1,75

3 1,

753

1,75

3

Add

ition

s

B

y pu

rcha

se

- -

1 35

7 1

357

Ass

ets

rece

ived

free

of c

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e 81

8 -

-

818

- R

eval

uatio

ns a

nd im

pairm

ents

reco

gnis

ed in

oth

er c

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me

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- 22

-

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atio

n ex

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e -

- (3

32)

(356

) (3

32)

(356

) O

ther

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emen

ts

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ents

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) -

(4)

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(8

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- (3

) (1

) (8

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(1)

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at 3

0 Ju

ne 2

015

- -

1,43

7 1,

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1,43

7 1,

753

To

tal a

s at

30

June

201

5 re

pres

ente

d by

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ross

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ue

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e -

- 1,

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3 1,

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1,74

3 W

ork

in p

rogr

ess

- -

463

464

463

464

Acc

umul

ated

dep

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atio

n an

d im

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ent

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(728

) (4

54)

(728

) (4

54)

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l as

at 3

0 Ju

ne 2

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1,43

7 1,

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1,43

7 1,

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No

indi

cato

rs o

f im

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ent w

ere

foun

d fo

r pro

perty

, pla

nt a

nd e

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men

t. A

reva

luat

ion

was

con

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ed in

201

5 by

inde

pend

ent v

alue

rs. A

ll re

valu

atio

ns w

ere

cond

ucte

d in

ac

cord

ance

with

the

reva

luat

ion

polic

y st

ated

at N

ote

1. N

o pr

oper

ty, p

lant

or e

quip

men

t is

expe

cted

to b

e so

ld o

r dis

pose

d of

with

in th

e ne

xt 1

2 m

onth

s.



2015 2014 $'000 $'000 Note 21B: Prepayments

Prepayments 6,120 9,322 Total prepayments 6,120 9,322 Prepayments expected to be recovered

No more than 12 months 607 2,923 More than 12 months 5,513 6,399

Total prepayments 6,120 9,322 Note 22: Administered payables Note 22A: Suppliers

Trade creditors and accruals 11,490 9,343 Total suppliers 11,490 9,343 Suppliers expected to be settled within 12 months

Related parties - 37 External parties 11,490 9,306

Total suppliers 11,490 9,343 Settlement is usually made within 30 days Note 22B: Grants Public sector

Australian Government entities (related parties) 623 - Local Governments 144 - State and Territory Governments 17 3,561

Private sector Commercial entities 3,325 2,588 Non-profit organisations 14,531 12,674

Total grants 18,640 18,823 Grant payables are expected to be settled in no more than 12 months.

Note 22C: Other payables Salaries, wages and superannuation 59 37 Lease liability 46 49 Other 44 2,450 Total other payables 149 2,536 All other payables are expected to be settled in no more than 12 months.



Note 23: Administered provisions 2015 2014 $'000 $'000 Note 23A: Employee provisions

Annual leave 112 141 Long service leave 160 184 Total employee provisions 272 325 Employee provisions expected to be settled

No more than 12 months 90 107 More than 12 months 182 218

Total employee provisions 272 325 Note 23B: Non-cash benefits - former Governors-General benefits Non-cash benefits - former Governors-General 17,509 16,594 Total non-cash benefits - former Governors-General benefits 17,509 16,594 The amounts recognised in the Administered Schedule of Assets and Liabilities are as follows: Present value of unfunded obligations 17,509 16,594 Net liability in the Administered Schedule of Assets and Liabilities 17,509 16,594 Amounts in the Administered Schedule of Assets and Liabilities: Liabilities 17,509 16,594 Net liability in the Administered Schedule of Assets and Liabilities 17,509 16,594

The amounts recognised in the Administered Schedule of Comprehensive Income are as follows: Current service cost - 3,686 Finance costs 547 410 Expense 547 4,096 Net actuarial losses recognised in the Administered Reconciliation Schedule 1,903 1,150 Changes in the value of the defined benefit obligations are as follows: Net liability at 1 July 16,594 12,820 Service cost - 3,686 Finance costs 547 410 Actuarial losses 1,903 1,150 Benefits paid (1,535) (1,472) Net liability at 30 June 17,509 16,594 Principal actuarial assumptions at the reporting date (expressed as weighted averages): Discount rate at 30 June 2.60% 3.30% Future salary increases 4.00% 4.00% Inflation rate 2.50% 2.50% Rate of expenditure slow down with age 3.00% 3.00%



Note 23C: Other provisions Reconciliation of movements in other provisions

Make good

provision Other

provision Total $’000 $’000 As at 1 July 2014 129 195 324 Additional provisions made - - - Amounts used - (97) (97) Amounts reversed - - - Unwinding of discount or change in discount rate - - - Total as at 30 June 2015 129 98 227

2015 2014 $'000 $'000 Other provisions expected to be settled

No more than 12 months 86 119 More than 12 months 141 205

Total other provisions 227 324



Note 24: Administered cash flow reconciliation 2015 2014 $'000 $'000 Reconciliation of net cost of services to net cash from operating activities Net cost of services (1,465,081) (890,970) Adjustments

Depreciation / amortisation 332 356 Losses from asset sales 821 1 Assets received free of charge (818) - Interest on investments recognised in investing (86,688) (73,793)

Movements in assets and liabilities Assets

(Increase) / decrease in net receivables 8,195 (33,312) (Increase) / decrease in prepayments 3,202 (399)

Liabilities Increase / (decrease) in supplier payables 2,147 (597) Increase / (decrease) in grants payable (183) 21,674 Increase / (decrease) in other payable (2,387) (2,082) Increase / (decrease) in employee provisions (53) (40) Increase / (decrease) in former Governors-General benefits (985) 2,625 Increase / (decrease) in other provisions (97) 231

Net cash used by operating activities (1,541,595) (976,306)



Note 25: Administered investments Investment in Commonwealth Entities The Commonwealth holds a 100% equity interest in the following administered investments:

Aboriginal Hostels Limited

Provides temporary accommodation to Aboriginal and Torres Strait Islander people through a national network of hostels.

Land Councils

The Land Councils include: - Anindilyakwa Land Council - Central Land Council - Northern Land Council - Tiwi Land Council; and - Wreck Bay Aboriginal Community Council

The Land Councils represent the Aboriginal peoples living in the area of the Land Council in the management of Aboriginal land in the area, and in relation to legislation concerning that land. The Land Councils also consult and protect the interests of traditional owners and take measures to assist in the protection of sacred sites in the area of the Land Council. Wreck Bay Aboriginal Community Council holds title to land and provides services to the Aboriginal community of Jervis Bay.

Indigenous Land Corporation

The Indigenous Land Corporation provides economic, environmental, social and cultural benefits for Aboriginal persons and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous Land base.

Indigenous Business Australia

Indigenous Business Australia creates opportunities for Aboriginal and Torres Strait Islander people and communities to build assets and gain wealth.

National Australia Day Council Limited

Promotes national pride, active citizenship and the observance and celebration of Australia Day; administration of the Australian of the Year awards, which includes awards for the Young Australian of the Year, the Senior Australian of the Year and Australia’s Local Hero; distribution of grants to State and Territory Australia Day Councils and provision of recommendations and advice to the Australian Government on all matters relating to year-round national pride activities.

Torres Strait Regional Authority

The Torres Strait Regional Authority formulates, implements and monitors the effectiveness of programmes for Aboriginal and Torres Strait Islander people living in the Torres Strait and Northern Peninsula Area.

Outback Stores Pty Ltd.

Outback Stores Pty Ltd improves access to affordable, healthy food for Indigenous communities, particularly in remote areas, through providing food supply and store management and support services.



Investments in Deposits and Government Securities Investments in Deposits and Government Securities relate to the investment portfolios managed for the Aboriginal Benefit Account (ABA) and Aboriginal and Torres Strait Islander Land Account (ATSILA). The investment portfolios are managed to ensure sufficient funds are available for payments when required. Monies which are surplus to immediate requirements are invested in accordance with section 58 of the PGPA Act and the ABA’s and ATSILA’s respective legislative instruments. Under section 58 of the PGPA Act and regulation 22 of the PGPA Act, public money may only be invested in authorised investments which include:

(a) securities of the Commonwealth, a State or a Territory (b) securities guaranteed by the Commonwealth, a State or a Territory (c) a deposit with a bank, including a deposit evidenced by a certificate of deposit (d) a bill of exchange accepted or endorsed only by a bank.



Note 26: Administered financial instruments 2015 2014 $'000 $'000 Note 26A: Categories of financial instruments Financial assets Held-to-maturity Bank term deposits 2,480,243 2,186,810 Nominal semi-government bonds - 233,406 Total held-to-maturity 2,480,243 2,420,216 Loans and receivables Cash and cash equivalents 14,563 17,739 Goods and services receivable 72 298 Interest receivable 30,920 30,536 Grants receivable 11,805 18,451 Total loans and receivables 57,360 67,024 Available for sale

Aboriginal Hostels Limited 146,282 149,541 Anindilyakwa Land Council 8,639 5,769 Central Land Council 35,559 36,129 Indigenous Land Corporation 217,821 193,767 Indigenous Business Australia 1,185,459 1,116,246

National Australia Day Council Limited 1,168 1,098 Northern Land Council 10,105 3,999 Outback Stores Pty Ltd 41,496 41,520 Tiwi Land Council 1,613 1,670 Torres Strait Regional Authority 73,876 72,356 Wreck Bay Aboriginal Community Council 55,711 55,937

Total available for sale 1,777,729 1,678,032 Carrying amount of financial assets 4,315,332 4,165,272 Financial liabilities At amortised cost

Trade creditors and accruals 11,490 9,343 Grants 18,640 18,823

Total financial liabilities at amortised cost 30,130 28,166 Carrying amount of financial liabilities 30,130 28,166

Note 26B: Net gains or losses on financial assets Financial Assets Held-to-maturity Interest revenue 86,325 73,562 Net gains on held-to-maturity 86,325 73,562 Loans and receivables Interest revenue 363 231 Impairment (11,248) (2,570) Net losses on loans and receivables (10,885) (2,339) Net losses on financial assets 75,440 71,223



Note 26C: Fair value of financial instruments Carrying Fair Carrying Fair amount value amount value 2015 2015 2014 2014 $'000 $'000 $'000 $'000 Financial Assets Bank term deposits 2,480,243 2,480,243 2,186,810 2,186,810 Nominal semi-government bonds1 - - 233,406 233,533 Cash and cash equivalents 14,563 14,563 17,739 17,739 Goods and services receivable 72 72 298 298 Interest receivable 30,920 30,920 30,536 30,536 Grants receivable 11,805 11,805 18,451 18,451 Administered investments 1,777,729 1,777,729 1,678,032 1,678,032 Total 4,315,332 4,315,332 4,165,272 4,165,399 Financial Liabilities

Trade creditors and accruals 11,490 11,490 9,343 9,343 Grants 18,640 18,640 18,823 18,823

Total 30,130 30,130 28,166 28,166 1 The difference between the carrying amount and the fair value of the semi-government bonds is attributed to the amortised cost and the market value obtained from financial institutions as at reporting date. Note 26D: Credit risk The administered activities of the Department are not exposed to a high level of credit risk as the majority of financial assets are cash and cash equivalents, and trade receivables. The Department manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. The maximum amount of credit risk is the risk that arises from potential default of a debtor. This amount is equal to the amount of these outstanding trade receivables, 2015: $0.072 million (2014: $0.298 million). The Department has assessed the risk of the default on payment of receivables and has allocated amounts to an impairment allowance in relation to grant receivables, 2015: $11.473 million (2014: $8.610 million). The Department holds no collateral to mitigate against administered credit risk. The Department has no significant exposures to any concentrations of credit risk.



Credit quality of financial instruments not past due or individually determined as impaired

Not past due nor

impaired

Not past due nor

impaired

Past due or

impaired Past due

or impaired 2015 2014 2015 2014 $'000 $'000 $'000 $'000 Bank term deposits 2,480,243 2,186,810 - - Nominal semi-government bonds - 233,406 - - Cash and cash equivalents 14,563 17,739 - - Goods and services receivable 72 298 - - Interest receivable 30,920 30,536 - - Grant receivable 5,532 517 17,746 26,544 Equity interest in:

Aboriginal Hostels Limited 146,282 149,541 - - Anindilyakwa Land Council 8,639 5,769 - - Central Land Council 35,559 36,129 - - Indigenous Land Corporation 217,821 193,767 - - Indigenous Business Australia 1,185,459 1,116,246 - - National Australia Day Council Limited 1,168 1,098 - - Northern Land Council 10,105 3,999 - - Outback Stores Pty Ltd 41,496 41,520 - - Tiwi Land Council 1,613 1,670 - - Torres Strait Regional Authority 73,876 72,356 - - Wreck Bay Aboriginal Community Council 55,711 55,937 - -

Total 4,309,059 4,147,338 17,746 26,544 Note 20B provides aging of gross receivables past due and an analysis of impaired receivables. Aging of financial assets that were past due but not impaired for 2015 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Grant receivable 1,127 112 494 4,540 6,273 Total 1,127 112 494 4,540 6,273 Aging of financial assets that were past due but not impaired for 2014 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Grant receivable 13,095 613 955 3,271 17,934 Total 13,095 613 955 3,271 17,934

Note 26E: Liquidity risk The Department’s administered financial liabilities are supplier and grant payables. The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with administered financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the Department (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The ATSILA has sufficient capital base available to meet its obligations when they fall due. The ABA investment policy ensures sufficient cash is available to meet payments as they fall due. All non-derivative financial liabilities are expected to mature within one year.



Note 26F: Market risk The Department holds basic financial instruments, available for sale and held-to-maturity investments that do not expose the entity to certain market risks. The Department is not exposed to 'Currency risk', 'Other price risk' or 'Interest rate risk'.



Note 27: Administered financial assets reconciliation 2015 2014 Notes $'000 $'000 Financial assets Total financial assets per Administered Schedule of Assets and Liabilities 4,345,171 4,196,434 Less non-financial instrument components:

Statutory receivables 20B 19,587 17,293 Special account receivable from OPA 20B 9,947 13,493 Other receivables 20B 305 376

Total non-financial instrument components 29,839 31,162 Total financial assets as per Financial Instruments Note 26A 4,315,332 4,165,272


DEP

AR

TMEN

T O

F TH

E PR

IME

MIN

ISTE

R A

ND

CA

BIN

ET

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TS

for t

he p

erio

d en

ded

30 J

une

2015

Not

e 28

: App

ropr

iatio

ns

N

ote

28A

: Ann

ual a

ppro

pria

tions

('re

cove

rabl

e G

ST e

xclu

sive

') An

nual

App

ropr

iatio

ns fo

r 201

5

App

ropr

iatio

n A

ct

PGPA

Act

Tota

l ap

prop

riatio

n

Appr

opria

tion

appl

ied

in

2015

(cur

rent

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porti

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2. T

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ainl

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e to

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AR

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2014

-15.

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AR

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: Ann

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rigin

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cond

ition

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the

capi

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epay

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pone

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f fin

ance

leas

es.



Note 28C: Unspent annual appropriations ('recoverable GST exclusive')

Authority 2015 2014 $'000 $'000

Departmental1 Appropriation Act (No.1) 2013-142 5,000 36,951 Appropriation Act (No.2) 2013–14 - 1,965 Appropriation Act (No.1) 2013–14 - cash held by the department - 1,633 Appropriation Act (No.3) 2013–14 - 8,200 Appropriation Act (No.5) 2013–14 - 35,634 Appropriation Act (No.5) 2013-14 - Capital Budget (DCB) - 2,958 Appropriation Act (No.6) 2013–14 Non Operating Equity Injection 4,861 5,528 Appropriation Act (No.1) 2014-15 130,618 - Appropriation Act (No.1) 2014-15 - cash held by the department 12,063 - Appropriation Act (No.1) 2014-15 - Capital Budget (DCB) 13,991 - Appropriation Act (No 2) 2014-15 - Non Operating Equity Injection 5,887 - Appropriation Act (No.3) 2014-15 1,912 - Appropriation Act (No 4) 2014-15 - Non Operating Equity Injection 318 - Total 174,650 92,869 Administered3 Appropriation Act (No.1) Capital Budget (ACB) 2012–13 240 240 Appropriation Act (No.1) 2013–14 - cash held by the department - 17,739 Appropriation Act (No.1) 2013–14 10 26,626 Appropriation Act (No.1) Capital Budget (ACB) 2013–14 - 289 Appropriation Act (No.3) 2013–14 - 2,456 Appropriation Act (No.5) 2013–14 24,263 125,610 Appropriation Act (No.6) 2013–14 23,837 23,837 Appropriation Act (No.1) 2014-15 35,700 - Appropriation Act (No.1) Capital Budget (ACB) 2014-15 140 - Appropriation Act (No.1) 2014-15 - cash held by the department 14,563 - Appropriation Act (No.2) SPP 2014-15 1 - Total 98,754 196,797

1. The current year Departmental unspent annual appropriation is shown inclusive of Section 51 Permanent Quarantines, which will reduce Appropriation Act (No. 1) 2014-15 by $41.446m and $2.000m from prior year recognised through contributed equity and reduce Appropriation Act (No.1) 2014-15 - Capital Budget (DCB) by $0.816m. 2. The prior year Departmental unspent annual appropriation is shown inclusive of a Quarantine which reduced Appropriation Act (No.1) 2013-14 by $5.000m. 3. The current year Administered unspent annual appropriation is shown inclusive of Section 51 Permanent Quarantines which will reduce Appropriation Act (No. 1) 2014-15 by $26.497m.



Note 28D: Special appropriations ('recoverable GST exclusive')

Authority Type Purpose

Appropriation applied 2015 2014 $'000 $'000

Aboriginal Land Rights (Northern Territory) Act 1976

Unlimited amount

To enable payments to aboriginal land councils from the equivalent of mining royalties derived from mining operations on Aboriginal land in the Northern Territory

165,268 92,766

Indigenous Education (Targeted Assistance) Act 2000

Limited amount

An Act to provide targeted financial assistance to advance the education of Indigenous persons, and for other related purposes.

- 91,912

Higher Education Support Act 2003 Unlimited amount

An Act to grant financial assistance to support the higher education system for individuals and universities.

51,152 26,628

Total 216,420 211,306 As a consequence of the Administrative Arrangements Order of 18 September 2013, these special appropriations were transferred from Department of Social Services and the former Department of Education, Employment and Workplace Relations. The Indigenous Education (Targeted Assistance) Act 2000 was amended to allow non-ABSTUDY payments to be funded by annual Appropriations Acts from 1 July 2014.


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1Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2008/13 Purpose: This account was created to disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth. This account is non-interest bearing and the balance is held in the Official Public Account. 2Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Corporations (Aboriginal and Torres Strait Islander) Act 2006; section 551-20 Purpose: To administer unclaimed monies received by the Registrar of Aboriginal and Torres Strait Islander Corporations. This account is non-interest bearing and the balance is held in the Official Public Account. 3Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2003/05 Purpose: To provide a source of finance for the liability for the Superannuation Productivity Benefit entitlements owing to tutors contracted under the Aboriginal Tutorial Assistance Scheme (ATAS). This account is non-interest bearing and the balance is held in the Official Public Account. 4Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2010/06 Purpose: To support the implementation of the Remote Service Delivery National Partnership Agreement. It will provide the Australian Government with the capacity to address high priority projects in a timely way and support projects identified through the local implementation planning process. This account is non-interest bearing and the balance is held in the Official Public Account. 5Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 (repealed 1 July 2014) Establishing Instrument: Determination 2008/24 Purpose: Administering the Indigenous Communities Strategic Investment Programme. This account is non-interest bearing and the balance is held in the Official Public Account. 6Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Aboriginal Land Rights (Northern Territory) Act 1976; sections 62, 63, 64 and 65 Purpose: For the receipt and disbursement of the equivalent of mining royalty monies derived from mining operations on Aboriginal land in the Northern Territory. This account is interest bearing. 7Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Section 192W of the Aboriginal and Torres Strait Islander Act 2005 Purpose: To provide a secure stream of income to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land base. This account is interest bearing. Aboriginal Advancement Account The Aboriginal Advancement Account was established under section 80 of the PGPA Act.

The purpose of the account is for furthering the social and economic advancement of Aboriginal people living in Victoria. As a result of the Administrative Arrangement Orders, this account was transferred from DSS as part of the Indigenous Affairs function as at 18 September 2013 with a nil balance. There were no transactions credited or debited to the special account during 2014 and 2015.



Note 30: Compliance with statutory conditions for payments from the consolidated revenue fund Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. Commonwealth Agencies are required to assess the potential for breaches of section 83 to occur, recognising the increased risk of non-compliance where additional statutory requirements are attached to an appropriation.

During 2014-15 PM&C reviewed its exposure to the risk of not complying with statutory conditions on payments from appropriations. The review included:

identifying statutory conditions in any new special appropriations and special accounts identifying any changes to statutory conditions in existing special appropriations and special accounts reviewing legislation associated with annual appropriations to identify statutory conditions on payments determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions and

assessing the extent to which payment systems and processes satisfy those conditions determining procedures to confirm risk assessments in medium risk cases and to quantify the extent of non-

compliance, if any, in higher risk situations obtaining legal advice, as appropriate, to resolve questions of potential non-compliance considering legislative or procedural changes to reduce the risk of non-compliance in the future to an acceptably

low level. PM&C identified five appropriations involving statutory conditions for payment:

two special appropriations two special accounts one annual appropriation

During 2014-15 all appropriations with statutory conditions attached were reviewed. Administered payments of $501.714 million (30.4 percent of total administered payments) and departmental payments of $24.671 million (4.2 percent of total departmental payments) were subject to additional statutory conditions.

The review identified the following:

1. Special Accounts

PM&C currently has seven special accounts, of which two have payment requirements incorporated in legislation.

a. The Aboriginal and Torres Strait Islander Land Account (ATSILA) – testing of transactions revealed no issues.

b. The Aboriginals Benefit Account (ABA) – testing of transactions revealed that two payments made from the ABA under section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976 contravened section 83 of the Constitution. Payments are required to be made out of the ABA based on royalties received by the Northern Territory and Commonwealth governments. The contraventions occured when the royalties upon which the payments were based had been estimated at a greater value than required. Legislation has been prepared, and is awaiting presentation to Parliament, to reduce the risks of non-compliance associated with these payments to an acceptably low level.

The two payments made in contravention of section 83 totalled $0.314 million. Both were technical contraventions, despite the payments having been made in accordance with the requirements of section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976. Of this amount, $0.136 million has been recovered through the reduction of subsequent payments, and $0.178 million will be offset against future payments.

2. Special appropriations

Special appropriations considered were:

Aboriginal Land Rights (Northern Territory) Act 1976 Higher Education Support Act 2003.

No contraventions of section 83 of the Constitution were identified for these special appropriations.

3. Annual appropriations

Administered - Consistent with the Finance guidelines on annual Appropriation Acts, payments made in accordance with the Native title Act 2003 were considered to have medium risks of section 83 breach. PM&C’s other annual



administered appropriations have limited specificity and none have been assessed as likely to have breached section 83 in the 2014-15 financial year.

Departmental – PM&C has identified two pieces of legislation that impose payment preconditions over departmental payments. These are:

Long Service Leave (Commonwealth Employees) Act 1976 – testing of payments made under this legislation has revealed 16 breaches of section 83 of the Constitution. These relate to overpayments of Long Service Leave for a voluntary redundancy. The total value of the breaches is $0.096 million. At 30 June 2015, the appropriate mechanisms for recovery or other action in relation to this amount were being investigated.

Superannuation Act 2005 - testing of payments made under this legislation has revealed 5,895 breaches of section 83 of the Constitution. These relate to contributions to the Public Sector Superannuation Accumulation Plan (PSSAP) that were calculated using the wrong basis for superannuation salary. PM&C is investigating mechanisms to improve controls over the selection of the superannuation salary basis. The total value of the potential breaches is $0.532 million.

PM&C’s other annual departmental appropriations have limited specificity and none have been assessed as likely to have breached section 83 in the 2014-15 financial year.

PM&C will continue to monitor its level of compliance with section 83 of the Constitution across all legislation for which it is administratively responsible. Where possible, amendments to legislation will continue to be progressed.


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Note 31: Assets held in trust 2015 2014 $'000 $'000 Monetary assets - Cash at bank As at 1 July 11 1

Receipts 154 150 Payments (43) (140)

Total as at 30 June 122 11 Total monetary assets held in trust 122 11

Financial assets held in trust are disclosed in Note 29 Special accounts in the account titled Services for Other Entities and Trust Moneys Special Account.



Note 32: Reporting of outcomes The Department attributes corporate shared items based upon average staffing levels to reflect full cost of delivery. The basis of attribution in the table below is consistent with the basis used for the Budget.

Note 32A: Net cost of outcome delivery

Outcome 1 Outcome 2

Payments to corporate Commonwealth entities

and companies Total 2015 2014 2015 2014 2015 2014 2015 2014

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Departmental

Expenses (274,396) (230,653) (295,662) (155,568) (570,058) (386,221)

Own-source income 14,306 21,801 9,695 6,622 24,001 28,423

Administered Expenses (12,978) (18,274) (1,429,621) (885,475) (130,058) (90,076) (1,572,657) (993,825)

Income - 532 107,576 102,323 - - 107,576 102,855

Net cost of outcome delivery (273,068) (226,594) (1,608,012) (932,098) (130,058) (90,076) (2,011,138) (1,248,768)

Note: Further information on outcomes is detailed in Note 1.1.



Note 32B: Major classes of departmental expense income assets and liabilities by outcome Outcome 1 Outcome 2 Total 2015 2014 2015 2014 2015 2014 $'000 $'000 $'000 $'000 $'000 $'000 Departmental Expenses

Employee benefits (94,593) (111,773) (178,010) (111,131) (272,603) (222,904) Suppliers (168,775) (108,552) (98,639) (34,126) (267,414) (142,678) Grants - non-profit organisations (1,047) (557) (189) (172) (1,236) (729) Depreciation and amortisation (9,783) (9,716) (18,442) (10,032) (28,225) (19,748) Finance costs (9) (24) (43) (107) (52) (131) Write-down and Impairment of assets (189) (31) (308) - (497) (31) Losses from asset sales - - (31) - (31) -

Total (274,396) (230,653) (295,662) (155,568) (570,058) (386,221) Departmental income

Sales of goods and rendering of services 4,491 18,747 8,794 2,719 13,285 21,466 Resources received free of charge 9,722 3,054 901 3,849 10,623 6,903 Sale of assets - - - 54 - 54 Gain on reversal of make good 93 - - - 93 - Revenue from Government 239,665 184,936 288,858 166,214 528,523 351,150

Total 253,971 206,737 298,553 172,836 552,524 379,573 Departmental assets

Cash and cash equivalents 4,427 644 7,636 989 12,063 1,633 Trade and other receivables 41,398 91,031 77,114 32,897 118,512 123,928 Accrued revenue 1,959 1,775 3,438 384 5,397 2,159 Property, plant and equipment 18,263 29,313 101,152 106,834 119,415 136,147 Intangibles 5,167 8,156 8,746 1,542 13,913 9,698 Prepayments 848 2,452 1,756 3,761 2,604 6,213 Assets held for sale - - 430 785 430 785

Total 72,062 133,371 200,272 147,192 272,334 280,563 Departmental liabilities

Suppliers (14,290) (14,030) (17,424) (21,519) (31,714) (35,549) Grants - non-profit organisations (370) - - - (370) - Other payables (9,086) (23,821) (17,253) (15,593) (26,339) (39,414) Employee provisions (19,762) (30,019) (52,996) (46,042) (72,758) (76,061) Other provisions (232) (714) (958) (588) (1,190) (1,302)

Total (43,740) (68,585) (88,631) (83,741) (132,371) (152,326)



Note 32C: Major classes of administered expenses, income, assets, and liabilities by outcomes

Outcome 1 Outcome 2

Payments to corporate

Commonwealth entities and companies Total

2015 2014 2015 2014 2015 2014 2015 2014

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000


Employee benefits (850) (839) (24) (149) - - (874) (988)

Suppliers (4,589) (4,507) (60,814) (61,642) - - (65,403) (66,149)

Subsidies - - (1,601) (851) - - (1,601) (851)

Grants (6,657) (8,303) (1,211,943) (719,730) - - (1,218,600) (728,033)

Depreciation and amortisation (332) (356) - - - - (332) (356)

Finance costs (547) (4,096) - - - - (547) (4,096)

Impairment of receivables - (172) (11,248) (2,398) - - (11,248) (2,570)

Losses from asset sales (3) (1) (818) - - - (821) (1) Payments associated with land councils - - (88,313) (45,999) - - (88,313) (45,999)

Payments to corporate Commonwealth entities and companies - - - - (130,058) (90,076) (130,058) (90,076)

Payments to Indigenous Land Corporation - - (49,865) (52,463) - (49,865) (52,463)

Mining withholding tax - - (4,995) (2,243) - - (4,995) (2,243)

Total (12,978) (18,274) (1,429,621) (885,475) (130,058) (90,076) (1,572,657) (993,825)

Administered income

Interest - investments - - 86,688 73,793 - - 86,688 73,793

Other - 532 20,070 28,530 - - 20,070 29,062

Gains - - 818 - - - 818 -

Total - 532 107,576 102,323 - - 107,576 102,855

Administered assets

Cash and cash equivalents 1 169 14,562 17,570 - - 14,563 17,739

Trade and other receivables 71 71 72,565 80,376 - - 72,636 80,447

Other investments - - 2,480,243 2,420,216 - - 2,480,243 2,420,216

Investments in corporate Commonwealth entities 1,168 1,098 1,776,561 1,676,934 - - 1,777,729 1,678,032

Property, plant and equipment 1,437 1,753 - - - - 1,437 1,753

Prepayments 37 2,265 6,083 7,057 - - 6,120 9,322

Total 2,714 5,356 4,350,014 4,202,153 - - 4,352,728 4,207,509

Administered liabilities

Suppliers (239) (699) (11,251) (8,644) - - (11,490) (9,343)

Grants (276) (881) (18,364) (17,942) - - (18,640) (18,823)

Other payables (108) (765) (41) (1,771) - - (149) (2,536)

Employee provisions (270) (325) (2) - - - (272) (325)

Former Governors-General provision (17,509) (16,594) - - - - (17,509) (16,594)

Other provisions (129) (129) (98) (195) - - (227) (324)

Total (18,531) (19,393) (29,756) (28,552) - - (48,287) (47,945)



Note 33: Budgetary reports and explanations of major variances The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for the entity. The Budget is not audited. Note 33A: Departmental budgetary reports Statement of Comprehensive Income for the period ended 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 NET COST OF SERVICES Expenses

Employee benefits 272,603 297,355 (24,752) Suppliers 267,414 290,189 (22,775) Grants 1,236 45 1,191 Depreciation and amortisation 28,225 8,836 19,389 Finance costs - unwinding of discount on make good 52 24 28 Write-down and impairment of assets 497 - 497 Losses from asset sales 31 - 31

Total expenses 570,058 596,449 (26,391) Own-source income Own-source revenue

Sale of goods and rendering of services 13,285 8,613 4,672 Resources received free of charge 10,623 2,143 8,480

Total own-source revenue 23,908 10,756 13,152 Gains

Other 93 - 93 Total gains 93 - 93 Total own-source income 24,001 10,756 13,245 Net cost of services 546,057 585,693 (39,636) Revenue from Government - departmental appropriations 528,523 576,857 (48,334) Deficit attributable to the Australian Government (17,534) (8,836) (8,698) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus 3,822 - 3,822 Total comprehensive loss attributable to the Australian Government (13,712) (8,836) (4,876)

1. PM&C’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the PM&C’s 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided in Note 33B.



Statement of Financial Position as at 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 ASSETS Financial assets

Cash and cash equivalents 12,063 1,038 11,025 Trade and other receivables 123,909 23,852 100,057

Total financial assets 135,972 24,890 111,082 Non-financial assets

Property, plant and equipment 119,415 49,335 70,080 Intangibles 13,913 8,501 5,412 Prepayments 2,604 3,479 (875)

Total non-financial assets 135,932 61,315 74,617 Land and buildings held for sale 430 - 430 Total assets 272,334 86,205 186,129 LIABILITIES Payables

Suppliers 31,714 2,671 29,043 Grants - private sector 370 528 (158) Other payables 26,339 163 26,176

Total payables 58,423 3,362 55,061 Provisions

Employee provisions 72,758 61,571 11,187 Make good provisions 1,190 6,772 (5,582)

Total provisions 73,948 68,343 5,605 Total liabilities 132,371 71,705 60,666 Net assets 139,963 14,500 125,463 EQUITY

Contributed equity 147,056 43,684 103,372 Reserves 12,053 8,231 3,822 Accumulated deficit (19,146) (37,415) 18,269

Total equity 139,963 14,500 125,463 1. PM&C’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the PM&C’s 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided in Note 33B.



Note 33B: Departmental major budget variances for 2015 The purpose of this note is to outline the reasons for significant variances betweeen the Department's original budget estimates, as published in the 2014-15 Portfolio Budget Statements, and the actual expenditure and net asset position for the year. In 2014-15 the Department delivered the following key priorities:

successful delivery of the G20 Summit in Brisbane which saw governments and central bank governors from 20 major economies gather to discuss policy issues relating to international financial stability;

a restructure of the Regional Network to simplify reporting structures and enable decisions to be made closer to the people and communities impacted. This restructure is in line with the Government's commitment to achieve better outcomes for Indigenous people in the priority areas of schooling, jobs and community safety;

development and delivery of the Indigenous Advancement Strategy (IAS) which streamlined and combined approximately 150 programmes to deliver services through five broad based programmes. The IAS is designed to provide flexibility within the progamme structure to allow the Department to focus on priority areas that can make a real difference; and

finalisation of funding and asset transfers arising from the 2013 Machinery of Government changes which resulted in functions and staff transferring in from nine other Commonwealth agencies.

These activities combined with the usual business of the Department have driven the financial result for the year. Where the results have varied significantly from the original budget, explanations are provided below.

Explanation of major variances Affected line items (and statement)

Employee Benefits: staff vacancies and recruitment delays were experienced across the Department leading to lower than budgeted expenses. A key driver was establishing the structure of the Indigenous Affairs Group, including the regional network, a prerequisite to recruiting the right capabilities.

Employee benefits expense - Statement of Comprehensive Income

Supplier expense: was lower than budget due to close management of expenditure on the G20 Summit as well as a focus on establishing the IAS and restructuring the regional network. Resources and effort were diverted from other planned activities towards the G20 Summit and establishing the IAS and as a result, supplier expense in other areas was reduced.

Suppliers expense - Statement of Comprehensive Income

Grant payments: grants paid in 2014-15 were unforeseen when the original 2014-15 budget was established.

Grants expense - Statement of Comprehensive Income

Depreciation: due to the complexity associated with bringing together functions and funding from nine Commonwealth agencies, arrangements for the transfer of some assets weren't settled in the previous year. Assets valued at approximately $116 million were transferred after the budget was finalised. This resulted in higher than budgeted expense to represent the decline in value of those assets.

Depreciation - Statement of Comprehensive Income Non-financial assets - Statement of Financial Position

Own-source revenue: corporate services provided to other Commonwealth agencies continued for longer than expected and the scope of some services were finalised post budget, resulting in higher than budgeted revenue. In addition, sub-lease arrangements of office accommodation in the regional network to other Commonwealth agencies were finalised post budget, resulting in higher than budgeted revenue.

Sale of goods and rendering of services - Statement of Comprehensive Income

Resources received free of charge: represents benefits the Department derives from receiving goods or services that it is not required to pay for. At the time the budget was prepared, it was unknown that the Digital Transformation Office Taskforce would be established during the financial year. The taskforce was located in office accommodation that was provided free of charge by another agency and the staff were largely seconded from other agencies with the costs being paid by those agencies.

Resources received free of charge - Statement of Comprehensive Income



Note 33C: Administered budgetary reports Administered Schedule of Comprehensive Income for the period ended 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 NET COST OF SERVICES Expenses

Employee benefits 874 882 (8) Suppliers 65,403 299,830 (234,427) Subsidies 1,601 65,182 (63,581) Grants 1,218,600 941,669 276,931 Depreciation and amortisation 332 122 210 Finance costs 547 467 80 Payments to corporate Commonwealth entities and companies 130,058 130,367 (309) Other 155,242 117,078 38,164

Total expenses 1,572,657 1,555,597 17,060 Income Revenue Non-taxation revenue

Interest - investments 86,688 95,087 (8,399) Other 20,070 575 19,495

Total non-taxation revenue 106,758 95,662 11,096 Total revenue 106,758 95,662 11,096 Gains

Assets received free of charge 818 - 818 Total gains 818 - 818 Total income 107,576 95,662 11,914 Net cost of services 1,465,081 1,459,935 5,146 Deficit (1,465,081) (1,459,935) (5,146) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserves 61,595 - 61,595 Items subject to subsequent reclassification to net cost of services

Actuarial losses relating to former Governors-General entitlements (1,903) - (1,903)

Total other comprehensive income 59,692 - 59,692 Total comprehensive loss (1,405,389) (1,459,935) 54,546

1. PM&C’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the PM&C’s 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided in Note 33D.



Administered Schedule of Assets and Liabilities as at 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 ASSETS Financial assets

Cash and cash equivalents 14,563 22,900 (8,337) Trade and other receivables 72,636 7,894 64,742 Investments in corporate Commonwealth entities 1,777,729 1,756,528 21,201 Other investments 2,480,243 2,397,538 82,705

Total financial assets 4,345,171 4,184,860 160,311 Non-financial assets

Property, plant and equipment 1,437 1,957 (520) Prepayments 6,120 8,210 (2,090)

Total non-financial assets 7,557 10,167 (2,610) Total assets administered on behalf of Government 4,352,728 4,195,027 157,701 LIABILITIES Payables

Suppliers 11,490 39,877 (28,387) Grants 18,640 8,264 10,376 Other payables 149 109 40

Total payables 30,279 48,250 (17,971) Provisions

Employee provisions 272 380 (108) Non-cash benefits - former Governors-General benefits 17,509 14,778 2,731 Other provisions 227 114 113

Total provisions 18,008 15,272 2,736 Total liabilities administered on behalf of Government 48,287 63,522 (15,235) Net assets 4,304,441 4,131,505 172,936

1. PM&C’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the PM&C’s 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided in Note 33D.



Note 33D: Administered major budget variances for 2015

In line with the Government's commitment to achieve better outcomes for Indigenous people in the priority areas of schooling, jobs and community safety, the Department developed and delivered the Indigenous Advancement Strategy (IAS) which came into effect in 2014-15. The IAS has been designed to provide flexibility within the programme structure, which saw approximately 150 programmes being consolidated into five programmes, allowing the Department to focus on the priority areas that can make a real difference. The Department also restructured the Regional Network to simplify reporting structures and enable decisions to be made closer to the people and communities that are impacted. These key activities resulted in significant changes to the original budget through the Portfolio Additional Estimates Statements (PAES) and resulted in reclassification of budget amounts between the categories included in the Statement of Comprehensive Income. These activities combined with the usual business of the Department have driven the financial result for the year. Where the results have varied significantly from the original budget, explanations are provided below. Explanation of major variances Affected line items (and schedule) Suppliers: The implementation of the IAS included a significant reallocation from supplier expense to grants. The reallocation predominantly related to the classification of payments under the Jobs, Land and Economy Programme.

Suppliers expense - Administered Schedule of Comprehensive Income Suppliers payable - Administered Schedule of Assets and Liabilities

Subsidies: Under the IAS, wage support payments in the Jobs, Land and Economy programme that were previously reported as subsidies have been reclassified to grants.

Subsidies expense - Administered Schedule of Comprehensive Income

Grants payments: Payments under the Jobs, Land and Economy programmes have been reclassified from suppliers and subsidies to grants. The budget allocation was revised through the PAES process to reflect the reallocation and the actual expenditure for the year was in line with the revised PAES budget. The Indigenous Advancement Strategy is designed to have the flexibility within programmes to allow for the allocation of funds to assist in meeting emerging priorities. Accordingly, funding was re-allocated between sub-programmes during the year as priorities were identified. The most significant adjustment was an increase in the funding allocated to the Remote Jobs and Communities Programme (RJCP) following a commitment by Government to increase the number of structured activities available to job seekers.

Grants expense - Administered Schedule of Comprehensive Income Grants payable - Administered Schedule of Assets and Liabilities

Other expenses: Payments to the Indigenous Land Corporation and the related withholding tax payments were higher than budgeted as a flow on effect of higher than budgeted mining royalties being received.

Other expenses - Administered Schedule of Comprehensive Income Other payables - Administered Schedule of Assets and Liabilities



Interest - Investments: The Interest rates on offer in the market were lower than expected at the time the budget was prepared, in line with decreases in the official cash rate set by the Reserve Bank of Australia.

Interest - investments - Administered Schedule of Comprehensive Income

Other revenue: Returns of unused grant funding were higher than expected. Where possible, and in line with relevant approvals, the Department reallocates this funding to other providers to deliver services.

Other revenue - Administered Schedule of Comprehensive Income


Aboriginals Benefit Account financial statements

For the period ended 30 June 2015

The Aboriginals Benef it Account (ABA) was

established under Part VI of the Aboriginal Land Rights (Northern Territory) Act 1976 (the ALRA) and is

a special account for the purposes of the PGPA Act.

The ABA is established for the receipt of statutory

royalty equivalent monies generated from mining

on Aboriginal land in the Northern Territory, and

the distribution of these monies.

The ABA is administered by the Department in

accordance with the requirements of the ALRA

and the PGPA Act.

Thirty per cent of royalty equivalent receipts are

distributed to incorporated Aboriginal associations,

communities or groups in order to benefit those

Aboriginal people who are affected by mining

operations. ABA funds are also used to meet the

operational costs of the four land councils in the

Northern Territory and to make payments for the

acquisition and administration of township leases

as well as payments for the benefit of Aboriginal

people living in the Northern Territory made at the

Minister’s discretion.

The following pages 150 to 179 contain PDFs of the Aboriginals Benefit

Account financial statements for the period ended 30 June 2015. If you require

assistance accessing these pages, please email [email protected]





ABORIGINALS BENEFIT ACCOUNT STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2015


Committee members 3A 74 161 Suppliers 3B 559 925 Grants 3C 49,893 40,723 Payments for township leases 3D 2,150 1,876 Payments to land councils for administrative purposes 3E 42,435 37,443 Distribution to land councils 3F 49,489 47,470 Write-down and impairment of assets 3G - 675 Other expenses 3H 2,377 2,452

Total expenses 146,977 131,725 Own-Source Income Own-source revenue

Interest 4A 16,855 16,896 Lease rental income 4B 1,615 1,604 Resources received free of charge 4C 2,377 2,452 Other revenue 4D 66 467


Gains from sale of assets 4E - - Total gains - - Total own-source income 20,913 21,419 Net cost of services 126,064 110,306 Revenue from Government 4F 164,967 156,678 Surplus attributable to the Australian Government 38,903 46,372 Other comprehensive income - - Total comprehensive income attributable to the Australian Government 38,903 46,372



ABORIGINALS BENEFIT ACCOUNT STATEMENT OF FINANCIAL POSITION as at 30 June 2015

2015 2014 Notes $'000 $'000 ASSETS Financial Assets

Cash and cash equivalents 5A 14,133 17,569 Trade and other receivables 5B 6,457 5,143 Investments 5C 490,840 450,840

Total financial assets 511,430 473,552 Non-Financial Assets

Other non-financial assets 6A 6,083 7,057 Total non-financial assets 6,083 7,057 Total assets 517,513 480,609 LIABILITIES Payables

Suppliers 7A 670 947 Grants 7B 1,207 1,917 Other payables 7C 728 1,643


Other provisions 8A 98 195 Total provisions 98 195 Total liabilities 2,703 4,702 Net assets 514,810 475,907 EQUITY Retained surplus 514,810 475,907 Total equity 514,810 475,907



ABORIGINALS BENEFIT ACCOUNT STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2015

Retained earnings Total equity 2015 2014 2015 2014 $'000 $'000 $'000 $'000 Opening balance Balance carried forward from previous period 475,907 429,535 475,907 429,535 Adjusted opening balance 475,907 429,535 475,907 429,535 Comprehensive income Surplus for the period 38,903 46,372 38,903 46,372 Total comprehensive income 38,903 46,372 38,903 46,372 Closing balance as at 30 June 2015 514,810 475,907 514,810 475,907



ABORIGINALS BENEFIT ACCOUNT CASH FLOW STATEMENT for the period ended 30 June 2015


Appropriations 164,229 157,308 Net GST received 5,067 3,393 Lease rental receipts 1,615 1,664


Committee members 76 159 Suppliers 522 798 Grants 56,343 42,688 Payments for township leases 1,866 709 Payments to land councils for administrative purposes 42,327 39,463 Distributions to land councils 49,208 47,297

Total cash used 150,342 131,114 Net cash from / (cash used) operating activities 9 20,569 31,251 INVESTING ACTIVITIES Cash received

Proceeds from realisation of investments 743,340 756,863 Interest on investments 15,995 18,863


Investments 783,340 812,340 Total cash used 783,340 812,340 Net cash from / (cash used) by investing activities (24,005) (36,614) Net increase / (decrease) in cash held (3,436) (5,363) Cash and cash equivalents at the beginning of the reporting period 17,569 22,932 Cash and cash equivalents at the end of the reporting period 5A 14,133 17,569



ABORIGINALS BENEFIT ACCOUNT SCHEDULE OF COMMITMENTS as at 30 June 2015

2015 2014 BY TYPE $'000 $'000 Commitments receivable

Net GST recoverable on commitments 6,229 4,423 Total commitments receivable 6,229 4,423 Commitments payable

Other commitments Grant commitments (68,522) (48,650) Payments to land councils (28,685) (39,187) Office of Township Leasing (2,000) (8,500) ABA administration (1,072) (1,272)

Total other commitments (100,279) (97,609) Total commitments payable (100,279) (97,609) Net commitments by type (94,050) (93,186) BY MATURITY Commitments receivable

Within 1 year 6,229 4,329 Between 1 to 5 years - 94

Total commitments receivable 6,229 4,423 Commitments payable

Other commitments Within 1 year (100,279) (94,181) Between 1 to 5 years - (3,429)

Total other commitments (100,279) (97,610) Total commitments payable (100,279) (97,610) Net commitments by maturity (94,050) (93,187)

NB: Commitments are GST inclusive where relevant. Commitments relate to activities approved by the Minister to be distributed for the benefit of Aboriginals living in the Northern Territory, administrative expenses to be paid to land councils approved by the Minister, payments for township leases and Aboriginals Benefit Account administration. The above statement should be read in conjunction with the accompanying notes.


Table of contents - Notes

Note 1: Summary of Significant Accounting Policies

Note 2: Events After the Reporting Period

Note 3: Expenses

Note 4: Own-Source Income

Note 5: Financial Assets

Note 6: Non-Financial Assets

Note 7: Payables

Note 8: Provisions

Note 9: Cash Flow Reconciliation

Note 10: Investments

Note 11: Financial Instruments

Note 12: Financial Assets Reconciliation

Note 13: Special Accounts

Note 14: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

159

163

164

167

168

169

170

171

172

173

174

176

177

178


ABORIGINALS BENEFIT ACCOUNT Notes to and forming part of the financial statements


1.1 Objectives of the Aboriginals Benefit Account

The Aboriginals Benefit Account (ABA) is legislated under Part VI of the Aboriginal Land Rights (Northern Territory) Act 1976 (the ALRA) and is a Special Account for the purposes of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The ABA is managed by the Commonwealth Government.

The objective of the ABA is to receive and disburse statutory royalty equivalent monies derived from mining on Aboriginal land in the Northern Territory for the benefit of Aboriginal people living in the Northern Territory.

The continued existence of the ABA in its present form is dependent on continued payments from consolidated revenue of royalty equivalent receipts into the special account under the ALRA and Government policy on continuing appropriations by Parliament for the ABA’s administration.

1.2 Basis of Preparation of the Financial Statements

The ABA’s activities are classified as administered activities carried out by the Department of the Prime Minister and Cabinet (PM&C) on behalf of the Commonwealth Government and is reported in PM&C's administered financial statements for the period 1 July 2014 to 30 June 2015. In addition to being consolidated into PM&C's financial statements, the ABA prepares separate audited financial statements as required by the ALRA Act.

The Minister for Finance has granted ABA an exemption under the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR). The exemption applies to the following requirements of the FRR:

(a) Sections 9, 32 and 33 of the FRR. The ABA is required to present its administered activities in departmental format and the accounting policy note must clearly state that all activities are administered.

(b) Section 34 of the FRR to the extent that ABA does not have any defined outcomes.

Divisions 2,3,4 and 5 of Part 6 of the FRR to the extent that ABA has no appropriation transactions and balances other than through its Special Account.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Unless an alternative treatment is specifically required by an accounting standard or the FRRs, assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured.

Unless an alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgements and Estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No new accounting standard has been adopted earlier than the application date as stated in the standard.

There have been no new standards, revised standards, amended standards or interpretations that were issued by the AASB prior to the sign off date that are applicable to the current reporting period and have a material financial impact on the ABA.



Future Australian Accounting Standard Requirements

There are no new standards, revised standards, amended standards or interpretations that have been issued by the AASB prior to the sign off date that are applicable to the future reporting period and are expected to have a future material financial impact on the ABA.

1.5 Revenue

Interest Revenue

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Revenue from Government

Amounts appropriated are recognised as revenue. Revenue from Government is not typically recognised by administered entities, however, the determination provided by the Minister for Finance in relation to the ABA enables disclosure of such amounts as revenue.

Royalties in respect of uranium and non-uranium mining on Aboriginal land are paid to the Australian Government, Department of Industry & Science and the Northern Territory Treasury (Royalty Branch), respectively. Following advice from these entities, drawdowns are made from the Official Public Account (OPA) to enable royalty equivalents to be credited to the ABA, in accordance with section 63 of the ALRA.

These receipts are credited to the ABA shortly after receipt of advice from the respective entity, which usually occurs in the week following the payment of the royalties by mining companies to the entity.

Lease Rental Income

The ABA receives lease rental income for Township Head Leases in the Northern Territory. Lease rental income is recognised when received by the ABA (refer to Note 1.7 Leases).

Resources Received Free of Charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

The ABA reports a number of resources received free of charge in relation to PM&C expenses associated with the ABA secretariat. This secretariat is currently comprised of PM&C staff who are responsible for the administration of the ABA.

1.6 Gains

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Leases

The ABA has expenditure relating to incentive payments for Township Head Leases in the Northern Territory. These leases are accounted for as operating leases. In an operating lease, the lessor effectively retains substantially all risks and rewards incidental to ownership of leased non-current assets.

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

Office of Executive Director Township Leasing

The Office of Township Leasing (OTL) is headed by the Executive Director of Township Leasing, which is a statutory appointment under the ALRA. The Executive Director of Township Leasing is responsible for managing, on behalf of the Commonwealth Government, any township leases entered into with Indigenous communities in the Northern Territory as specified under Section 19A of the ALRA. The OTL manages the head lease over the specified township and negotiates any sub leasing to commercial entities, government agencies, community organisations and so forth.



Expenses related to incentive payments for township head leases in the Northern Territory are:

An amount of $5.0 million has been paid as an introductory payment for a 99 year lease for the Wurrumiyanga (formerly known as Nguiu) Head Lease on the Tiwi Islands. On 3 March 2014 the Minister approved (under Section 27(3) of the ALRA), a deed of variation to this lease; it was subsequently reduced by $0.6 million

An amount of $4.5 million has been paid as an introductory payment for a 40 plus 40 year lease for the Groote Head Lease on the Groote Eylandt

An amount of $1.8 million has been paid as an introductory payment for a 99 year lease for the Milikapiti Township under the Milikapiti & Wurankuwu Head Lease on Tiwi Islands

An amount of $0.2 million has been paid as an introductory payment for a 99 year lease for the Wurankuwu Township under the Milikapiti and Wurankuwu Head Lease on Tiwi Islands.

1.8 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

(a) cash on hand

(b) demand deposits in operating bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value

(c) cash held by outsiders.

1.9 Financial Assets

The ABA classifies its financial assets in the following categories:

(a) held-to-maturity investments

(b) loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Investments

Investment activities are conducted in accordance with the requirements of section 58 of the PGPA Act. Investments are typically low risk and take the form of term deposits.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit and loss.

Held-to-Maturity Investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the ABA has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.



Financial assets held at amortised cost - If there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

1.10 Financial Liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities (at amortised cost). Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value Through Profit and Loss

Financial liabilities at fair value through profit and loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit and loss. The net gain or loss recognised in profit and loss incorporates any interest paid on the financial liability.

Other Financial Liabilities (at amortised cost)

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent goods or services have been received (and irrespective of having been invoiced).

1.11 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

There are no contingent liabilities or assets as at 30 June 2015 (2014: nil).

1.12 Taxation

The ABA is exempt from all forms of taxation except Mining Withholding Tax (MWT), Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST except:

(a) where the amount of GST incurred is not recoverable from the Australian Taxation Office

(b) for receivables and payables.

MWT is payable in respect of payments made from royalty equivalents credited to the ABA pursuant to section 63 of the ALRA. In accordance with the Taxation Laws Amendment Act (No. 3) 1994, the rate of MWT payable in respect of the payments made from royalty equivalents credited to the ABA pursuant to section 63 of the ALRA, is 4% (2014: 4%).

GST is payable on purchases made by the ABA under subsection 64(4) and 64(6) of the ALRA. These amounts are recoverable from the ATO.

1.13 Payment to Land Councils

Land councils obtain funding on a workload basis in accordance with subsection 64(1) of the Aboriginal Land Rights (Northern Territory) Amendment Act 2006. Estimates for funding are submitted to the Minister for Indigenous Affairs for approval and are distributed to land councils on a quarterly basis during the year.



1.14 Distribution to the Land Councils

In accordance with subsection 64(3) and 35(2) of the ALRA, 30% of the royalty equivalents are paid to the land councils for distribution to Aboriginal associations, communities or groups, for the benefit of those Aboriginal people who are affected by mining operations.

1.15 Grants

The ABA makes payments to or for the benefit of Aboriginals living in the Northern Territory under subsection 64(4) of the ALRA. These payments are considered to meet the definition of grants which is defined under the FRRs as assistance by Government in the form of transfers to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. MWT is payable on grant payments made from royalty equivalents credited to the ABA pursuant to section 63 of the ALRA.

MWT is not payable on grant payments made from other income.

Note 2: Events After the Reporting Period There are no known events occurring after the reporting period that could impact on the financial statements.



Note 3: Expenses 2015 2014 $'000 $'000 Note 3A: Committee members Payments to advisory committee members1 74 161 Total committee members expenses 74 161


Consultants - 22 Travel and other administrative costs - 102 ABA Stores Infrastructure 559 801

Total goods and services supplied or rendered 559 925 Goods supplied in connection with

External parties - 6 Total goods supplied - 6 Services rendered in connection with

Related parties 559 801 External parties - 118

Total services rendered 559 919 Total goods and services supplied or rendered 559 925

Note 3C: Grants Public sector

State and Territory Governments 1,004 2,521 Private sector

Non-profit organisations 47,517 37,414 Mining Withholding Tax 1,372 788

Total grants 49,893 40,723 Note 3D: Payments for township leases Office of township leasing administrative expenses 1,445 1,134 Payments to township leases – amortisation of introductory payments 692 742 Mining Withholding Tax 13 - Total payments for township leases 2,150 1,876

1 The Advisory Committee met twice during 2014-15 for a total of four days and six times during 2013-14 for a

total of fifteen days.



Note 3: Expenses (continued) 2015 2014 $'000 $'000 Note 3E: Payments to land councils for administrative purposes Subsection 64(1) payments:

Northern Land Council 18,592 17,569 Mining Withholding Tax 744 703

Sub-total Northern Land Council 19,336 18,272

Central Land Council 16,278 15,305 Mining Withholding Tax 651 612

Sub-total Central Land Council 16,929 15,917

Tiwi Land Council 2,179 1,526 Mining Withholding Tax 87 61

Sub-total Tiwi Land Council 2,266 1,587

Anindilyakwa Land Council 3,754 1,603 Mining Withholding Tax 150 64

Sub-total Anindilyakwa Land Council 3,904 1,667 Total payments associated with land councils administration 42,435 37,443

Note 3F: Distribution to land councils Subsection 64(3) payments:

Northern Land Council 10,906 7,731 Mining Withholding Tax 454 322

Sub-total Northern Land Council 11,360 8,053

Tiwi Land Council 394 - Mining Withholding Tax 16 -

Sub-total Tiwi Land Council 410 -

Central Land Council 5,344 402 Mining Withholding Tax 223 17

Sub-total Central Land Council 5,567 419

Anindilyakwa Land Council 30,866 37,438 Mining Withholding Tax 1,286 1,560

Sub-total Anindilyakwa Land Council 32,152 38,998 Total land councils distributions 49,489 47,470



Note 3: Expenses (continued) 2015 2014 $'000 $'000 Note 3G: Write-down and impairment of assets

Other - 675 Total write-down and impairment of assets - 675

Note 3H: Other expenses Salaries and operating expenses1 2,377 2,452 Total other expenses 2,377 2,452

1 Expenses associated with the administration of the ABA were received from PM&C as resources free of charge.



Note 4: Own-Source Income OWN-SOURCE REVENUE 2015 2014 $'000 $'000 Note 4A: Interest Term deposits 16,492 16,383 Interest bearing bank account 363 513 Total interest 16,855 16,896

Note 4B: Lease rental income Revenue lease receipt – Wurrumiyanga 669 716 Revenue lease receipt – Groote 723 731 Revenue lease receipt – Milikapiti 177 150 Revenue lease receipt – Wurankuwu 5 7 Other 41 - Total lease rental income 1,615 1,604

Note 4C: Resources received free of charge Salaries 2,313 2,388 Remuneration of auditors - financial statement audit 64 64 Total resources received free of charge 2,377 2,452

Note 4D: Other revenue Return of grant funding 66 467 Total other revenue 66 467

GAINS Note 4E: Gains from sale of assets Investments

Proceeds from sale 743,340 756,863 Carrying value of assets sold (743,340) (756,863)

Total gain from sale of assets - - REVENUE FROM GOVERNMENT Note 4F: Revenue from Government Appropriations

Special appropriations 164,967 156,678 Total revenue from Government 164,967 156,678



Note 5: Financial Assets 2015 2014 $'000 $'000 Note 5A: Cash and cash equivalents Cash on hand or on deposit 14,133 17,569 Total cash and cash equivalents 14,133 17,569

Note 5B: Trade and other receivables Other receivables:

GST receivable from the ATO 466 13 Interest 5,705 4,845 Other 286 285

Total other receivables 6,457 5,143 Total trade and other receivables (net) 6,457 5,143 Trade and other receivables expected to be recovered

No more than 12 months 6,457 5,143 Total trade and other receivables (net) 6,457 5,143 Trade and other receivables aged as follows

Not overdue 6,457 5,143 Total trade and other receivables (net) 6,457 5,143

Note 5C: Investments Term deposits 490,840 450,840 Total investments 490,840 450,840 Investments expected to be recovered in

No more than 12 months 490,840 450,840 Total investments 490,840 450,840

Additional information relating to investments is disclosed in Note 10: Investments.



Note 6: Non-Financial Assets 2015 2014 $'000 $'000 Note 6A: Other non-financial assets Prepayments – subsection 64(3) 186 467 Prepayments – subsection 64(4A) 5,897 6,590 Total other non-financial assets 6,083 7,057 Other non-financial assets expected to be recovered

No more than 12 months 815 658 More than 12 months 5,268 6,399

Total other non-financial assets 6,083 7,057 No indicators of impairment were found for other non-financial assets.



Note 7: Payables 2015 2014 $'000 $'000 Note 7A: Suppliers Office of Executive Director Township Leasing administrative liabilities 161 570 Suppliers 509 377 Total suppliers payables 670 947 Suppliers in connection with

Related parties 161 947 External parties 509 -

Total suppliers 670 947 Suppliers expected to be settled

No more than 12 months 670 947 Total suppliers 670 947

Settlement is usually made within 30 days.

Note 7B: Grants Private sector

Non-profit organisations 1,207 1,917 Total grants 1,207 1,917 Grants expected to be settled

No more than 12 months 1,207 1,917 Total grants 1,207 1,917

Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of the performance or eligibility.

Note 7C: Other payables Royalty equivalent overpayment 620 1,643 Other 108 - Total other payables 728 1,643 Other payables expected to be settled

No more than 12 months 308 1,643 More than 12 months 420 -

Total other payables 728 1,643



Note 8: Provisions 2015 2014 $'000 $'000 Note 8A: Other provisions Other provision 98 195 Total other provisions 98 195 Other provisions expected to be settled

No more than 12 months - 97 More than 12 months 98 98

Total other provisions 98 195

Other

provisions Total $’000 $’000 As at 1 July 2014 195 195 Amounts used (97) (97) Closing balance 2015 98 98



Note 9: Cash Flow Reconciliation 2015 2014 $'000 $'000 Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement Cash and cash equivalents as per

Cash Flow Statement 14,133 17,569 Statement of Financial Position 14,133 17,569

Discrepancy - - Reconciliation of net cost of services to net cash from/(used by) operating activities

Net cost of services (126,064) (110,306) Revenue from Government 164,967 156,678 Interest on investments recognised in investing activities (16,855) (16,896)

Movements in assets / liabilities Assets

(Increase)/Decrease in net receivables (454) (43) (Increase)/Decrease in prepayments 974 1,087

Liabilities Increase/(Decrease) in supplier payables (277) 627 Increase/(Decrease) in payables to Land Councils - (2,020) Increase/(Decrease) in grants payables (710) 1,455 Increase/(Decrease) in other payables (915) 669 Increase/(Decrease) in provisions (97) -

Net cash from/(used by) operating activities 20,569 31,251



Note 10: Investments The investment objective of PM&C as administrators for ABA, is to ensure that ABA complies with legislative obligations under the PGPA Act and the Aboriginal Land Rights Act 1976; and that ABA maintains and preserves its capital base.

The investment portfolio and bank accounts are managed to ensure sufficient funds are available for payments as required.

Investment activities are conducted in accordance with the requirements of section 58 of the PGPA Act. Consequently, investments are typically low risk and take the form of term deposits and nominal semi-government bonds. The duration of the term deposits are usually for a term of 3 to 18 months.

Investment practices are also governed by the investment policy of PM&C which requires the management of the portfolio to respond to positive investment opportunities in the market so as to achieve the best possible returns for the account within the legislative framework.

The asset allocation of the portfolio as at 30 June 2015 is 100% (2014: 100%) with Australian banks and 0% (2014: 0%) in nominal semi-government bonds.



Note 11: Financial Instruments 2015 2014 $'000 $'000 Note 11A: Categories of financial instruments Financial assets Held-to-maturity investments:

Term deposits 490,840 450,840 Total held-to-maturity investments 490,840 450,840 Loans and receivables

Cash and cash equivalents 14,133 17,569 Interest receivable 5,705 4,845 Other receivables 286 285

Total loans and receivables 20,124 22,699 Total financial assets 510,964 473,539 Financial liabilities Financial liabilities measured at amortised cost:

Supplier payables 670 947 Grants payables – non-profit organisations 1,207 1,917

Total financial liabilities measured at amortised cost 1,877 2,864 Total financial liabilities 1,877 2,864

Note 11B: Net gains or losses on financial assets Held-to-maturity investments

Interest revenue 16,492 16,383 Net gain on held-to-maturity investments 16,492 16,383 Loans and receivables

Interest revenue 363 513 Net gain on loans and receivables 363 513 Net gain on financial assets 16,855 16,896

The above net gain is from financial assets not at fair value through profit and loss.



Note 11: Financial Instruments (continued) Note 11C: Fair value of financial instruments Carrying Fair Carrying Fair amount value amount value 2015 2015 2014 2014 $'000 $'000 $'000 $'000 Financial assets

Term deposits 490,840 490,840 450,840 450,840 Cash and cash equivalents 14,133 14,133 17,569 17,569 Interest receivable 5,705 5,705 4,845 4,845 Other receivables 286 286 285 285

Total financial assets 510,964 510,964 473,539 473,539 Financial liabilities

Suppliers payables 670 670 947 947 Grants payables – non-profit organisations 1,207 1,207 1,917 1,917

Total financial liabilities 1,877 1,877 2,864 2,864 Note 11D: Credit risk

The ABA is exposed to credit risk through cash and receivables (recognised as loans and receivables) and bank term deposits (recognised as held-to-maturity). The maximum exposure to credit risk is the risk that arises from potential default of a debtor or financial institution. This amount is equal to the total amount of cash, cash equivalents, trade receivables and investments. PM&C on behalf of the ABA has assessed the risk of potential default and has determined that no impairment allowances are required to be recognised. ABA holds no collateral to mitigate against credit risk. Maximum exposure to credit risk (excluding any collateral or credit enhancements) 2015 2014 $'000 $'000 Financial assets carried at amount not best representing maximum exposure to credit risk Term deposits 490,840 450,840 Cash and cash equivalents 14,133 17,569 Interest receivable 5,705 4,845 Other receivables 286 285 Total financial assets carried at amount not best representing maximum exposure to credit risk 510,964 473,539 No financial instruments are past due or impaired.



Note 11: Financial Instruments (continued) Note 11E: Liquidity risk The ABA's financial liabilities are supplier payables and grant payables. The exposure to liquidity risk is based on the notion that the ABA will encounter difficulty in meeting its obligations associated with financial liabilities. The ABA is appropriated funding from the Commonwealth Government. PM&C on behalf of the ABA manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, PM&C on behalf of the ABA has policies in place to ensure timely payments are made when due and has no past experience of default. The maturities for non-derivative financial liabilities for ABA are within one year in both the current and prior year. The ABA has no derivative financial liabilities in both the current and prior year.

Note 11F: Market risk The ABA holds both basic financial instruments and held-to-maturity investments that do not expose the ABA to certain market risks. The ABA is not exposed to 'Currency risk', 'Other price risk' or 'Interest rate risk'.

Note 12: Financial Assets Reconciliation 2015 2014 $'000 $'000 Financial assets Total financial assets as per Statement of Financial Position 511,430 473,552 Less: non-financial instrument components

GST receivable from the ATO 466 13 Total financial assets as per Financial Instruments Note 11A 510,964 473,539



Note 13: Special Accounts Note 13A: Special accounts ('recoverable GST exclusive')

Aboriginals Benefit

Account1

2015 2014 $'000 $'000

Balance brought forward from previous period 17,569 22,932 Increases

Appropriation credited to special account 164,229 157,308 Investments realised 743,340 756,863 Interest receipts 15,995 18,863 Lease rental receipts 1,615 1,664

Total increases 925,179 934,698 Available for payments 942,748 957,630 Decreases

Payments made – land councils (91,535) (86,760) Payments made – suppliers (522) (723) Payments made – grants (51,276) (39,370) Payments made – committee members (76) (159) Payments made – township leases (1,866) (709) PGPA Act section 58 investments (783,340) (812,340)

Total decreases (928,615) (940,061) Total balance carried to the next period 14,133 17,569

1Appropriation: Public Governance, Performance and Accountability Act 2013; section 80

Establishing instrument: Aboriginal Land Rights (Northern Territory) Act 1976; sections 62, 63, 64 and 65

Purpose: For the receipt and disbursement of the equivalent of mining royalty monies derived from mining operations on Aboriginal land in the Northern Territory.



Note 14: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. In 2011-12, the Department of Finance issued a guidance paper regarding the need for specific risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

During 2014-15, PM&C updated its annual plan for the review of ABA’s exposure to risks of not complying with statutory conditions on payments from the special account. The requirements of the updated plan included:

reviewing legislation associated with the ABA special account to identify any changes to statutory conditions on payments

determining the risk of non-compliance by assessing the difficulty of administering any changes in the statutory conditions and assessing the extent to which payment systems and processes satisfy the statutory conditions

determining procedures to confirm the risk assessment

obtaining legal advice, as appropriate, to resolve questions of potential non-compliance

progressing legislative changes to reduce the risk of non-compliance in the future to an acceptably low level.

Total ABA expenditure for 2014-15 was $145.275 million. Two payments totalling $0.314 million made in 2014-15 from the ABA under section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976 contravened section 83 of the Constitution due to erroneous reporting by the mining companies of the royalties.

Payments are required to be made out of the ABA based on royalties received by the Northern Territory or Commonwealth governments. Contraventions occur when it is subsequently found that the royalties upon which the payments were based were greater than required. Legislation has been prepared, and is awaiting presentation to Parliament, to reduce the risks of non-compliance associated with these payments to an acceptably low level.

Both payments were technical contraventions of section 83, despite the payments having been made in accordance with the requirements of section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976. Of the overpayment, $0.136 million has been recovered through reduction of subsequent payments and the remaining $0.178 million will be offset against future payments.


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Aboriginal and Torres Strait Islander Land Account financial statements

For the period ended 30 June 2015

The Aboriginal and Torres Strait Islander Land

Account (ATSILA) operates under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is

a special account for the purposes of the PGPA Act.

ATSILA is established for the purpose of making

payments to the Indigenous Land Corporation (ILC).

ATSILA is administered by the Department in

accordance with the requirements of the ATSI Act

and the PGPA Act.

ATSILA is a self-sustaining capital fund. It provides

a secure and ongoing source of funds to the ILC,

which assists Aboriginal and Torres Strait Islander

people to acquire and manage Indigenous-held land

so as to provide economic, environmental, social

and cultural benefits.

The following pages 181 to 201 contain PDFs of the Aboriginal and Torres

Strait Islander Land Account financial statements for the period ended 30

June 2015. If you require assistance accessing these pages, please email

[email protected]





ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2015


Payments to the Indigenous Land Corporation 3A 49,865 52,463 Investment costs 3B 326 156 Other expenses 3C 29 29

Total expenses 50,220 52,648 Own-source Income Own-source revenue

Interest 4A 69,834 79,382 Resources received free of charge 4B 29 29


Gain on realisation of investments 4C - - Total gains - - Total own-source income 69,863 79,411 Net contribution by services (19,643) (26,763) Surplus attributable to the Australian Government 19,643 26,763 Other comprehensive income - - Total comprehensive income attributable to the Australian Government 19,643 26,763



ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT STATEMENT OF FINANCIAL POSITION as at 30 June 2015

2015 2014 Notes $'000 $'000 ASSETS Financial Assets

Cash and cash equivalents 5A 2 1 Trade and other receivables 5B 25,216 25,690 Investments 5C 1,989,403 1,969,378

Total financial assets 2,014,621 1,995,069 Total assets 2,014,621 1,995,069 LIABILITIES Payables

Suppliers 6A - 91 Total payables - 91 Total liabilities - 91 Net assets 2,014,621 1,994,978 EQUITY

Contributed equity 433,932 433,932 Retained surplus 1,580,689 1,561,046

Total equity 2,014,621 1,994,978 The above statement should be read in conjunction with the accompanying notes.


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ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT CASH FLOW STATEMENT for the period ended 30 June 2015

2015 2014 Notes $'000 $'000 OPERATING ACTIVITIES Cash used

Payments to the Indigenous Land Corporation 49,865 52,463 Payments to consultants 169 - Payment of investment management costs 248 65

Total cash used 50,282 52,528 Net cash used by operating activities 7 (50,282) (52,528) INVESTING ACTIVITIES Cash received

Proceeds from realisation of investments 3,239,611 2,769,320 Interest on investments 71,715 83,368

Total cash received 3,311,326 2,852,688 Cash used

Investments 3,261,043 2,800,162 Total cash used 3,261,043 2,800,162 Net cash from investing activities 50,283 52,526 Net increase/(decrease) in cash held 1 (2) Cash and cash equivalents at the beginning of the reporting period 1 3 Cash and cash equivalents at the end of the reporting period 5A 2 1



ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT SCHEDULE OF COMMITMENTS as at 30 June 2015

2015 2014 BY TYPE $'000 $'000 Commitments payable

Other commitments Payments to the Indigenous Land Corporation (212,017) (207,461) Other (56) -

Total other commitments (212,073) (207,461) Total commitments payable (212,073) (207,461) Net commitments by type (212,073) (207,461) BY MATURITY Commitments payable

Other commitments Within 1 year (51,164) (50,089) Between 1 to 5 years (160,909) (157,372)

Total other commitments (212,073) (207,461) Total commitments payable (212,073) (207,461) Net commitments by maturity (212,073) (207,461)

NB: Commitments are GST inclusive where relevant.

On 29 June 2010 the Aboriginal and Torres Strait Islander Act 2005 was amended to provide a minimum guaranteed annual payment of $45 million to the Indigenous Land Corporation from 1 July 2010, payable on the first business day in October. This payment is required to be indexed for later years by the Consumer Price Index.

This payment will continue in perpetuity while the legislation is in force, however, the amounts provided in the Schedule of Commitments are limited to those estimated and published in the 2015-16 Portfolio Budget Statements. Accordingly, the commitment figures include up to, the financial year 2018-19.

There were no commitments receivable for the reporting period (2014: Nil).



ABORIGINAL AND TORRES STRAIT ISLANDER LAND ACCOUNT NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015


Note 2: Events After the Reporting Period

Note 3: Expenses

Note 4: Own-Source Income

Note 5: Financial Assets

Note 6: Payables

Note 7: Cash Flow Reconciliation

Note 8: Investments

Note 9: Financial Instruments

Note 10: Financial Assets Reconciliation

Note 11: Special Accounts

Note 12: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

190

193

194

194

195

195

196

196

197

200

200

201




1.1 Objectives of the Aboriginal and Torres Strait Islander Land Account

The Aboriginal and Torres Strait Islander Land Account (ATSILA) is an Australian Government controlled entity. ATSILA was established to recognise that most Indigenous people will not benefit from the High Court’s Mabo (No. 2) decision (Mabo and Others v Queensland (No. 2) [1992] HCA 23) and the Native Title Act 1993 because they were dispossessed of their land and therefore cannot demonstrate the continuous association necessary to prove native title.

ATSILA's purpose is to provide a secure stream of income to the Indigenous Land Corporation (ILC) in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of land.

The continued existence of ATSILA in its present form and with its present programs, is dependent on Government policy.

1.2 Basis of Preparation of the Financial Statements

ATSILA's activities are classified as administered activities carried out by the Department of the Prime Minister and Cabinet (PM&C) on behalf of the Commonwealth and is reported in PM&C's administered financial statements for the period 1 July 2014 to 30 June 2015.

In addition to being consolidated into PM&C’s financial statements, separate audited financial statements are prepared for ATSILA as required by subsection 193H of the Aboriginal and Torres Strait Islander Act 2005.

The Minister for Finance has granted ATSILA an exemption under the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR). The exemption applies to the following requirements of the FRR:

(a) Sections 9, 32 and 33 of the FRR. ATSILA is required to present its administered activities in departmental format and the accounting policy note must clearly state that all activities are administered.

(b) Section 34 of the FRR to the extent that ATSILA does not have any defined outcomes.

(c) Divisions 2,3,4 and 5 of Part 6 of the FRR to the extent that ATSILA has no appropriation transactions and balances other than through its special account.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgements and Estimates No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.



1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

There have been no new standards, revised standards, amended standards or interpretations that were issued by the AASB prior to the sign off date that are applicable to the current reporting period and have a material financial impact on ATSILA.

Future Australian Accounting Standard Requirements

There are no new standards, revised standards, amended standards or interpretations that have been issued by the AASB prior to the sign off date that are applicable to the future reporting period or are expected to have a future material financial impact on future reporting periods.

1.5 Revenue

Interest Revenue

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Resources Received Free of Charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

1.6 Gains

A gain or loss on realisation is recognised when the market value of the investment is different from that of the purchase value.

1.7 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

(a) cash on hand

(b) demand deposits in operating bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value

(c) cash held by outsiders.

1.8 Financial Assets

ATSILA classifies its financial assets in the following categories:

(a) held-to-maturity investments

(b) loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Investments

Investment activities are conducted in accordance with the requirements of section 58 of the PGPA Act. Investments are typically low risk and take the form of term deposits and nominal semi-government bonds.

The asset allocation of the portfolio as at 30 June 2015 is 100% (2014: 88%) with Australian banks and 0% (2014: 12%) in



nominal semi-government bonds.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit and loss.

Held-to-Maturity Investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that ATSILA has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost - If there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

1.9 Financial Liabilities

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.10 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

ATSILA had nil contingent liabilities or assets as at 30 June 2015 (2014: Nil).

1.11 Taxation

ATSILA is exempt from all forms of taxation except the Goods and Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST except:

(a) where the amount of GST incurred is not recoverable from the Australian Taxation Office

(b) for receivables and payables.



1.12 Payments to the ILC

On 29 June 2010 the Aboriginal and Torres Strait Islander Act 2005, was amended to provide a minimum guaranteed annual payment of $45 million to the ILC from 1 July 2010, payable on the first business day in October. This annual payment is required to be indexed each year by the Consumer Price Index. The indexation factor for the payment in 2015 was 2.7% (2014: 2.3%)

An additional payment is paid to the ILC if the actual capital value of ATSILA exceeds the indexed capital value. In 2014-15, no additional payment (2014: $3.910 million) was paid to the ILC.

1.13 Investment Costs

Expenditure directly related to the management of ATSILA’s investments can be debited from ATSILA under section 58(4) of the PGPA Act. These costs represent the services provided by the Investment Unit.

Note 2: Events After the Reporting Period There are no known events occurring after the reporting period that could impact on the financial statements.



Note 3: Expenses 2015 2014 $'000 $'000 Note 3A: Payments to the Indigenous Land Corporation Annual payment to the Indigenous Land Corporation 49,865 48,553 Additional payment to the Indigenous Land Corporation - 3,910 Total payments to the Indigenous Land Corporation 49,865 52,463

Note 3B: Investment costs Consultants 169 - Investment management expenses 157 156 Total investment costs 326 156

Note 3C: Other expenses Audit fees 29 29 Total other expenses 29 29

Note 4: Own-Source Income OWN-SOURCE REVENUE Note 4A: Interest Term deposits 66,654 66,009 Semi-government bonds 3,180 13,373 Total interest 69,834 79,382

Note 4B: Resources received free of charge Audit service fee 29 29 Total resources received free of charge 29 29

GAINS Note 4C: Gain on realisation of investments Investments:

Proceeds from realisation 3,239,611 2,769,320 Net book value of assets realised (3,239,611) (2,769,320)

Net gain from realisation of investments - -



Note 5: Financial Assets 2015 2014 $'000 $'000 Note 5A: Cash and cash equivalents Cash on hand or on deposit 2 1 Total cash and cash equivalents 2 1

Note 5B: Trade and other receivables Other receivables

Interest receivable Term deposits 25,216 24,290 Semi-government bonds - 1,400

Total trade and other receivables 25,216 25,690 No receivables are overdue or impaired.

Receivables are expected to be recovered in no more than 18 months.

Note 5C: Investments Term deposits 1,989,403 1,735,971 Nominal semi-government bonds - 233,407 Total investments 1,989,403 1,969,378 Investments expected to be recovered

No more than 12 months 1,960,036 1,969,378 More than 12 months 29,367 -

Total investments 1,989,403 1,969,378 Additional information relating to investments is disclosed in Note 8.

Note 6: Payables 2015 2014 $'000 $'000 Note 6A: Suppliers Trade creditors and accruals - 91 Total suppliers - 91

Prior year suppliers were to be settled within 12 months.



Note 7: Cash Flow Reconciliation 2015 2014 $'000 $'000 Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement Cash and cash equivalents as per

Cash flow statement 2 1 Statement of financial position 2 1

Discrepancy - - Reconciliation of net cost of services to net cash from/(used by) operating activities

Net contribution by services 19,643 26,763 Interest on investments recognised as investing (69,834) (79,382)

Movements in assets / liabilities Liabilities

Increase in supplier payables (91) 91 Net cash from/(used by) operating activities (50,282) (52,528)

Note 8: Investments The investment objective of PM&C as administrators for ATSILA, is to ensure that ATSILA complies with legislative obligations under the PGPA Act and the Aboriginal and Torres Strait Islander Act 2005; and that ATSILA maintains and preserves its capital base.

The investment portfolio and bank accounts are managed to ensure sufficient funds are available for payments to the ILC when due.

Investment activities are conducted in accordance with the requirements of section 58 of the PGPA Act. Consequently, investments are typically low risk and take the form of term deposits and nominal semi-government bonds. The duration of the term deposits are usually for a term of 3 to 18 months.

Investment practices are also governed by the investment policy of PM&C which requires the management of the portfolio to respond to positive investment opportunities in the market so as to achieve the best possible returns for the account within the legislative framework.

The asset allocation of the portfolio as at 30 June 2015 is 100% (2014: 88%) with Australian banks and 0% (2014: 12%) in nominal semi-government bonds.



Note 9: Financial Instruments 2015 2014 $'000 $'000 Note 9A: Categories of Financial Instruments Financial Assets Held-to-maturity investments

Term deposits 1,989,403 1,735,971 Nominal semi-government bonds - 233,407

Total held-to-maturity investments 1,989,403 1,969,378 Loans and receivables

Cash and cash equivalents 2 1 Interest receivable

Term deposits 25,216 24,290 Nominal semi-government bonds - 1,400

Total loans and receivables 25,218 25,691 Total financial assets 2,014,621 1,995,069 Financial Liabilities At amortised cost

Trade creditors and accruals - 91 Total financial liabilities at amortised costs - 91

Note 9B: Net Gains or Losses on Financial Assets Held-to-maturity investments

Interest revenue Term deposits 66,654 65,988 Semi-government bonds 3,180 13,373

Net gain on held-to-maturity investments 69,834 79,361 Loans and receivables

Interest revenue - 21 Net gain from loans and receivables - 21 Net gains on financial assets 69,834 79,382

The above net gain is from financial assets not at fair value from profit and loss.



Note 9: Financial Instruments (continued) Note 9C: Fair Value of Financial Instruments Carrying Fair Carrying Fair amount value amount value 2015 2015 2014 2014 $'000 $'000 $'000 $'000 Financial Assets

Term deposits 1,989,403 1,989,403 1,735,971 1,735,971 Nominal semi-government bonds1 - - 233,407 233,533 Cash and cash equivalents 2 2 1 1 Interest receivable

Term deposits 25,216 25,216 24,290 24,290 Semi-government bonds - - 1,400 1,400

Total financial assets 2,014,621 2,014,621 1,995,069 1,995,195

Financial Liabilities Trade creditors and accruals - - 91 91

Total financial liabilities - - 91 91

1 The difference between the carrying amount and the fair value of the semi-government bonds is attributed to the amortised cost and the market value obtained from financial institutions as at 30 June 2014.

Note 9D: Credit Risk ATSILA is exposed to credit risk through cash and receivables (recognised as loans and receivables) and investments (recognised as held-to-maturity). The maximum exposure to credit risk is the risk that arises from potential default of a debtor or financial institution. This amount is equal to the total amount of cash, receivables and investments. ATSILA only hold funds with Australian banks and semi-government bonds. PM&C on behalf of ATSILA has assessed the risk of potential default and has determined that no allowances or provisions are required to be recognised. ATSILA holds no collateral to mitigate against credit risk. Maximum exposure to credit risk (excluding any collateral or credit enhancements) 2015 2014 $'000 $'000 Financial assets carried at amount not best representing maximum exposure to credit risk

Term deposits 1,989,403 1,735,971 Nominal semi-government bonds - 233,407 Cash and cash equivalents 2 1 Interest receivable

Term deposits 25,216 24,290 Semi-government bonds - 1,400

Total financial assets carried at amount not best representing maximum exposure to credit risk 2,014,621 1,995,069 No financial instruments are past due or impaired.



Note 9: Financial Instruments (continued) Note 9E: Liquidity Risk The exposure to liquidity risk is based on the notion that ATSILA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to ATSILA having a significant self funding capital base available and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

PM&C on behalf of ATSILA manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, PM&C on behalf of ATSILA has policies in place to ensure timely payments are made when due and has no past experience of default. Maturities for non-derivative financial liabilities 2015 On Within 1 1 to 2 2 to 5 > 5 demand year years years years Total

$'000 $'000 $'000 $'000 $'000 $'000 Trade creditors and accruals - - - - - - Total - - - - - - Maturities for non-derivative financial liabilities 2014 On Within 1 1 to 2 2 to 5 > 5 demand year years years years Total

$'000 $'000 $'000 $'000 $'000 $'000 Trade creditors and accruals - 91 - - - 91 Total - 91 - - - 91

Note 9F: Market Risk

ATSILA holds basic financial instruments and held-to-maturity investments that are not exposed to market risks. ATSILA is not exposed to 'Currency risk', 'Other price risk' or 'Interest rate risk'.



Note 10: Financial Assets Reconciliation 2015 2014

Notes $'000 $'000 Financial assets Total financial assets as per Statement of Financial Position 2,014,621 1,995,069 Total non-financial instrument components - - Total financial assets as per Financial Instruments 9A 2,014,621 1,995,069

Note 11: Special Accounts Note 11A: Special Accounts ('Recoverable GST exclusive')

Aboriginal and Torres Strait Islander Land

Account1

2015 2014 $'000 $'000

Balance brought forward from previous period 1 3 Increases

Investments realised 3,239,611 2,769,320 Interest receipts 71,715 83,368

Total increases 3,311,326 2,852,688 Available for payments 3,311,327 2,852,691 Decreases

Payments made - Indigenous Land Corporation (49,865) (52,463) Payments made - investment management costs (248) (65) Payments made- consultants (169) - PGPA Act section 58 investments (3,261,043) (2,800,162)

Total decreases (3,311,325) (2,852,690) Total balance carried to the next period 2 1

1Appropriation: Public Governance, Performance and Accountability Act 2013; section 80.

Establishing Instrument: Aboriginal and Torres Strait Islander Act 2005; section 192W.

Purpose: to provide a secure stream of income to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of land.

This account is interest bearing.



Note 12: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Department of Finance provided information to all agencies in calendar year 2011 regarding the need for specific risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

PM&C has reviewed the processes and controls over payments for these items to minimise the possibility of future breaches.

Payments in 2014-15 subject to statutory conditions have been reviewed and there are no issues of non-compliance with section 83 have been identified.

ATSILA will continue to monitor its level of compliance with section 83 of the Constitution.

PART 5Appendices

Appendix A Aboriginals Benefit Account Annual Report 2014–15 �� 203

Appendix B Aboriginal and Torres Strait Islander Land Account Annual Report 2014–15 ��215

Appendix C Office of the Registrar of Indigenous Corporations Annual Report 2014–15�� 217

Appendix D Supporting the National Australia Day Council��218

203Part 5: Appendices

Appendix A Aboriginals Benefit Account Annual Report 2014–15

Aboriginals Benefit Account overview

Role and functions

The Aboriginals Benefit Account (ABA) is legislated

under Part VI of the Aboriginal Land Rights (Northern Territory) Act 1976 (the Land Rights Act) and is a

special account for the purposes of the PGPA Act.

The ABA receives appropriations based on royalty

equivalents, the level of which is determined by the

estimated value of the statutory royalties generated

from mining on Aboriginal land in the Northern

Territory (NT). ABA funds are public money.

The Minister for Indigenous Affairs allocates ABA

funds to the four NT land councils for operational

purposes and to the Office of Township Leasing to

cover the administration costs and upfront payments

associated with township leases. The Minister also

approves grants for the benefit of Aboriginal people

living in the NT. In this latter function, the Minister

is assisted by the ABA Advisory Committee. Funds

are also distributed to royalty associations in areas

affected by mining.

The major functions of the ABA are outlined in

Figure 5.1.

FIGURE 5.1 MAJOR FUNCTIONS OF THE ABORIGINALS BENEFIT ACCOUNT

Function according to section of the Land Rights Act

Description

Credits into the ABA,

sections 62–63

To receive the equivalent of mining royalty moneys derived from mining operations

on Aboriginal land in the NT, and such other income as outlined in section 63

of the Land Rights Act.

Payments to land

councils, subsection

64(1), in accordance

with subsection 34(1)

To make payments to the NT land councils in proportions determined by the

Minister to meet their administrative expenditure. The Land Rights Act requires

the administrative expenditure of the land councils to be in accordance with

proposed estimates of expenditure approved by the Minister.

Payments to royalty

associations,

subsection 64(3)

To make payments to the land councils for distribution to incorporated Aboriginal

associations (royalty associations) in order to benefit those Aboriginal people

who are affected by mining operations. These payments are directly linked to the

amount of royalty equivalent moneys received in respect of mining in the areas

concerned. Royalty associations receive 30 per cent of the royalty equivalents

paid into the ABA.

Beneficial payments,

subsection 64(4)

For the Minister to make payments for the benefit of Aboriginal people living

in the NT. The ABA Advisory Committee provides advice to the Minister on

these payments.

204 Part 5: Appendices

FIGURE 5.1 MAJOR FUNCTIONS OF THE ABORIGINALS BENEFIT ACCOUNT

Function according to section of the Land Rights Act

Description

Office of Township

Leasing payments,

subsection 64(4A)

To make payments for acquiring and administering township leases approved

under section 19A and leases approved under section 20CA of the Land Rights Act.

Admin payments,

subsection 64(6)

To make payments to meet expenses associated with administering the ABA.

Operating environment

The ABA is administered by the Department in

accordance with the requirements of the Land

Rights Act and the PGPA Act. The Minister for

Indigenous Affairs, Senator the Hon Nigel Scullion

is the responsible Minister.

In relation to the Department’s 2014–15 outcome

and programme reporting structure, the ABA is part

of Outcome 2: Indigenous.

The ABA Advisory Committee, established under

subsection 65(1) of the Land Rights Act, plays an

important role in advising the Minister on beneficial

payments under subsection 64(4) of the Land

Rights Act.

Following a sharp increase in 2008–09, royalty

equivalent receipts into the account have fluctuated;

falling until 2012–13 before recovering in 2013–14

and 2014–15. During this period there have been a

large number of applications for beneficial payments

from the ABA.

Offices

The ABA is administered across the Department’s

national office and the regional network. National

office is responsible for advising the Minister on

the overall policy and financial management of the

ABA, administration of the ABA subsection 64(4) grants

funding rounds and providing secretariat support to the

ABA Advisory Committee. The NT regional network

manages the ABA subsection 64(4) grants (including

the ABA Community Stores Infrastructure Project).

Strategic direction

During 2014–15, a key focus of the Department was

improving the operations and use of the ABA to ensure

funding provides greater benefits to Aboriginal people

in the NT. Strategic improvements to the processes

and guidelines surrounding the administration of

the ABA subsection 64(4) beneficial grants will assist

in managing the strong demand. Administrative

changes have been made to improve efficiency and

transparency of processes and reduce red tape.

The Department works with a number of key

stakeholders to ensure the effective administration

of the ABA and the delivery of benefits to Aboriginal

people living in the NT.

The four NT land councils (the Northern Land

Council, Central Land Council, Anindilyakwa Land

Council and the Tiwi Land Council) are important

stakeholders.


Aboriginals Benefit Account performance 2014–15

Year in review

Figures 5.2 and 5.3 summarise ABA income and

expenditure, respectively.

Mining royalty equivalent receipts of $164.967

million were credited to the Account in 2014–15.

This represents a 5.3 per cent increase on the level

of 2013–14 receipts.

FIGURE 5.2 SUMMARY OF ABORIGINALS BENEFIT ACCOUNT INCOME, 2013–14 AND 2014–15

2013–14$’000

2014–15$’000

Royalty equivalents 156,678 164,967

Interest 16,896 16,855

Resources received free of charge 2,450 2,377

Lease rental income 1,604 1,615

Other income 467 66

Total ABA income 178,095 185,880

FIGURE 5.3 SUMMARY OF ABORIGINALS BENEFIT ACCOUNT EXPENDITURE (INCLUSIVE OF MINING WITHHOLDING TAX), 2013–14 AND 2014–15

2013–14$’000

2014–15$’000

Payments to land councils for administrative purposes –

Land Rights Act, subsection 64(1)

37,443 42,435

Payments to land councils for distribution to royalty associations –


47,470 49,489

Payments for the benefit of Aboriginal people in the NT –


40,723 49,893

Payments in relation to township leases and sub-leases –

Land Rights Act, subsection 64(4A)

1,876 2,150

Administration (suppliers and employees including resources

received free of charge) – Land Rights Act, subsection 64(6)

3,5381 3,010

Write-down and impairment of assets 675 0

Total expenditure 131,725 146,9771 Administration figure reported in 2013–14 has been adjusted.


Funding highlights

Support for employment and training projects,

cultural activities, and help for Indigenous

corporations to expand were some of the projects

to receive funding from the ABA under subsection

64(4) of the Land Rights Act in 2014–15.

$15.5 million in subsection 64(4) funding for new

projects approved in May 2015 included:

• $3,138,366 for the Papulu Apparr-Kari Aboriginal

Corporation to construct a multi-purpose office

complex; creating employment and training

opportunities for 100 Indigenous people and

providing a viable business premise for Papulu

Apparr-Kari Aboriginal Corporation staff

employed in the region

• $2,073,334 for Bradshaw and Timber Creek

Resource Company to establish a village to

accommodate workers, enabling the community

to sustain a wholly Aboriginal owned and

operated business

• $1,170,403 for Akeyulerre to purchase and

upgrade two Alice Springs properties for cultural

and healing activities

• $577,875 for Warlukurlangu Artists Aboriginal

Corporation to refurbish and extend the art

centre, improving economic, cultural and social

returns to the local community

• $459,090 for Lirrwi Yolngu Tourism Aboriginal

Corporation to purchase a bus and upgrade

infrastructure to meet the increasing demand for

tourism experiences on homelands and provide

a transport link between East Arnhem Land and

Katherine/Darwin

• $220,000 for the Institute for Aboriginal

Development Aboriginal Corporation to update

and reprint dictionaries and resources on 15

Aboriginal languages of Central Australia.

Community Stores Infrastructure Project

ABA funding for new and upgraded stores and

store manager housing in remote NT Indigenous

communities will improve food security and provide

community members with employment and training

opportunities in the construction industry.

The project has seen upgrades completed on

community stores in Areyonga, Milikapiti, Willowra,

Haasts Bluff and Papunya. Construction works

are well progressed in Peppimenarti, Bulman,

Engawala, Beswick, Pirlangimpi and Jilkminggan.

It is anticipated that works in seven communities

will commence in 2015–16.

Fund Management and reporting framework

The Department is responsible for ensuring that

the ABA complies with the Land Rights Act and

relevant financial legislation and that it meets its

financial accountability responsibilities to the

Government and Parliament. Section 64B of the

Land Rights Act requires PM&C to keep accounts

and prepare financial statements in respect of the

ABA, as determined by the Minister for Finance.

Section 64B also requires the Auditor-General to

report on the financial statements to the Minister

for Indigenous Affairs.

The reporting framework for 2014–15 (Figure 5.4)

is aligned with the major functions of the ABA, as

described in Figure 5.1.


FIGURE 5.4 ABORIGINALS BENEFIT ACCOUNT ACTIVITY REPORTING FRAMEWORK

Administration of the ABA

1: Credits into the ABA

2: Debits out of the ABA

2.1: Payments to land councils

2.2: Payments to royalty associations

2.3: Beneficial payments

2.4: Office of Township Leasing payments

2.5: Administration payments

3: ABA secretariat

4: Management of the ABA and its investment portfolio

Aboriginals Benefit Account activities 2014–15

Credits into the Aboriginals Benefit Account

Section 63 of the Land Rights Act requires the Commonwealth to credit to the ABA royalty equivalent moneys, equivalent to the royalties received by the Commonwealth or the NT for mining on Aboriginal land in the NT.

Subsection 62(3) of the Land Rights Act requires interest received from the investment of ABA funds to be credited to the ABA. The interest earned from investments is receipted directly into the ABA’s bank account. Figure 5.2 details interest earned for the year, as well as royalty equivalent income, resources received free of charge and lease rental income.

The majority of resources required for the administration of the ABA were provided free of charge by the Department. Resources provided free of charge represent staffing costs associated with the management of the ABA not reimbursed to the Department by the ABA. Resources provided free of charge are included as revenue in Figure 5.2 and expenses in Figure 5.10.

Financial statement audit services are provided

free of charge to the Department by the Australian

National Audit Office.

Royalty equivalent receipts

Under the Northern Territory (Self-Government) Act 1978, all Commonwealth interests in minerals in the

NT (other than a prescribed substance within the

meaning of the Atomic Energy Act 1953) are vested

in the NT. Title to those substances to which the

Atomic Energy Act refers, principally uranium,

remains vested in the Commonwealth.

Royalties from uranium mining on Aboriginal

land are paid to the Commonwealth Government

Department of Industry and Science, and royalties

from non-uranium mining on Aboriginal land are

paid to the Northern Territory Treasury.


Following advice from these bodies and any necessary

determinations made by the Minister, special

appropriations are made from the Consolidated

Revenue Fund to enable funds equivalent to

the amount of royalties received from mining on

Aboriginal land to be credited to the ABA. Advice

is provided regularly by the Northern Territory

Treasury and twice yearly by the Department of

Industry and Science.

Figure 5.5 details uranium and non-uranium royalty

equivalents credited to the ABA for 2013–14 and

2014–15.

FIGURE 5�5 ROYALTY EQUIVALENT RECEIPTS, 2013–14 AND 2014–15

2013–14$’000

2014–15$’000

Uranium royalties 9,378 5,980

Non-uranium royalties 147,300 158,987

Total royalty equivalents 156,678 164,967

ABA royalty equivalent income is volatile because

it is subject to profits recorded by individual mines,

which are subject to the world resources market.

Figure 5.5 shows section 63 receipts from royalty

equivalents transferred into the ABA in the past

eight years.

FIGURE 5�6 SECTION 63 ROYALTY EQUIVALENT RECEIPTS TRANSFERRED TO THE ABORIGINALS BENEFIT ACCOUNT, 2007–08 TO 2014–15

2007–08 2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15

$250

$200

$150

$100

$50

$-

Mil

lion

s


Debits out of the Aboriginals Benefit Account

Aboriginals Benefit Account expenditure in 2014–15

Figure 5.3 provides a summary of total ABA

expenditure in 2013–14 and 2014–15.

Payments to land councils for administrative expenses

Figure 5.7 lists ABA moneys paid in 2013–14 and

2014–15 to the four NT land councils to meet their

administrative costs.

FIGURE 5.7 SUBSECTION 64(1) PAYMENTS (NET OF MINING WITHHOLDING TAX) TO LAND COUNCILS FOR ADMINISTRATIVE COSTS, 2013–14 AND 2014–15

Land council 2013–14$’000

2014–15$’000

Northern Land Council 17,569 18,592

Central Land Council 15,305 16,278

Tiwi Land Council 1,526 2,179

Anindilyakwa Land Council 1,603 3,754

Total 36,003 40,803

Note:

Further details can be found in Part 4, financial statements.

Payments to royalty associations

Under subsection 64(3) of the Land Rights Act,

30 per cent of the royalty equivalent funds must

be paid to each land council in the area in which

a mining operation is situated. These moneys

are distributed to Aboriginal organisations

(royalty associations) in those areas affected by

mining operations.

Figure 5.8 lists payments made in 2013–14 and

2014–15 to land councils for distribution to royalty

associations.


FIGURE 5.8 SUBSECTION 64(3) PAYMENTS (NET OF MINING WITHHOLDING TAX) TO LAND COUNCILS FOR DISTRIBUTION TO ROYALTY ASSOCIATIONS, 2013–14 AND 2014–15

Land council 2013–14$’000

2014–15$’000

Northern Land Council 7,731 10,906

Central Land Council 402 5,344

Anindilyakwa Land Council 37,438 30,866

Tiwi Land Council 0 394

Total 45,571 47,510

Note:


Beneficial payments

Under subsection 64(4) of the Land Rights Act,

the Minister can make payments for the benefit of

Aboriginal people living in the NT. The ABA Advisory

Committee advises the Minister on these payments.

Figure 5.9 lists expenditure under subsection 64(4)

for 2013–14 and 2014–15.

FIGURE 5.9 SUBSECTION 64(4) EXPENDITURE – BENEFICIAL PAYMENTS (NET OF MINING WITHHOLDING TAX), 2013–14 AND 2014–15

Subsection 64(4) beneficial payments 2013–14$’000

2014–15$’000

Total beneficial payments 39,935 48,521

Costs associated with the administration of the ABA

and the Office of Township Leasing are captured

respectively under subsections 64(6) and 64(4A)

of the Land Rights Act. Figure 5.11 provides a

breakdown of administration and Office of Township

Leasing expenses for the ABA for 2013–14 and

2014–15, including consultancy services and services

provided free of charge to the ABA.


Subsections 64(6) and 64(4A) administrative payments

FIGURE 5.10 DEPARTMENTAL ADMINISTRATION, SUBSECTIONS 64(6) AND 64(4A) EXPENDITURE (EXCLUSIVE OF GST), 2013–14 AND 2014–15

Departmental administration expenditure and expenditure under subsections 64(6) and 64(4A)

2013–14$’000

2014–15$’000

Departmental administration expenditure

Resources provided free of charge 2,4521 2,377

Subsection 64(6) payments

Committee members sitting fees/superannuation 161 74

Consultancy services 22 0

Committee meeting expenses 1022 0

ABA Stores Infrastructure Project 801 559

Subsection 64(4A) payments

Office of Township Leasing administrative expenses 1,134 1,445

Payments for township leases 742 692

Total administrative costs of the ABA 5,414 5,147

Notes: 1 Resources provided free of charge reported in 2013–14 has been adjusted.2 Committee meeting expenses reported in 2013–14 has been adjusted.

Office of Township Leasing

Under the Land Rights Act, administration costs and

upfront payments associated with township leases

and other leases administered by the Executive

Director Township Leasing are drawn from the ABA.

This legislative arrangement reflects that reformed

land arrangements in townships on Aboriginal land

can assist with better service delivery and improved

housing management, and both facilitate home

ownership and increase economic development for

landowners and other residents.

Expenditure for this purpose represents 1.5 per cent

of the total ABA drawdown for 2014–15.

Consultancy services

Figure 5.11 lists consultancy services used by the

ABA in 2013–14 and 2014–15.

FIGURE 5�11 CONSULTANCY SERVICES (GST INCLUSIVE), 2013–14 AND 2014–15

Consultancy 2013–14$’000

2014–15$’000

KPMG Darwin 24 0

Total consultancy services 24 0


Mining withholding tax

Under the Income Tax Assessment Act 1936, payments

made from royalty equivalents credited to the ABA

are subject to mining withholding tax (MWT) at a

rate specified in the Income Tax (Mining Withholding Tax) Act 1979. In accordance with the Taxation Laws Amendment Act (No. 3) 1994, the current rate of tax

applied to payments of MWT is 4 per cent.

From 1 July 2003, the Australian Taxation Office

determined the ABA to be a large pay-as-you-go

(PAYG) withholder. MWT liabilities on payments

made are paid on or before due dates in accordance

with the PAYG withholding for large withholders

guide issued by the Taxation Office.

Figure 5.12 shows the total MWT for 2013–14 and

2014–15.

FIGURE 5.12 MINING WITHHOLDING TAX, 2013–14 AND 2014–15

Mining withholding tax 2013–14$’000

2014–15$’000

MWT expenditure for the year 4,127 4,996

Note:


Total equity

Figure 5.13 lists the ABA’s closing balances on

30 June in 2014 and 2015 as disclosed in the financial

statements on an accrual basis, excluding future

commitments.

FIGURE 5�13 TOTAL EQUITY AT 30 JUNE 2015

Total equity 2013–14$’000

2014–15$’000

Balance carried forward from previous year 429,535 475,907

Income minus expenses (surplus) 46,372 38,903

Closing balance as at 30 June 475,907 514,810

Note:

Further details can be found in Part 4, financial statements. Total equity excludes future commitments.


Advisory Committee

The ABA Advisory Committee is established under

subsection 65(1) of the Land Rights Act to advise the

Minister on beneficial payments under subsection

64(4) of the Land Rights Act (see Figure 5.15).

As part of its administrative responsibilities, the

Department provides secretariat support to the

ABA Advisory Committee.

In 2014–15 the Committee met in Darwin twice – in

March and April – to consider a large number of

applications, provide input to policy and programme

development and formulate advice to the Minister

in relation to beneficial payments.

During these meetings the committee considered 188

applications for funding worth $170 million.

Management of the Aboriginals Benefit Account and its investment portfolio

The ABA investment strategy is focussed on cash-

flow requirements, preservation of the fund and

management of risk. Funds that are surplus to

immediate requirements are invested under section

58 of the PGPA Act.

To minimise the risk of any loss, section 58 of the

PGPA Act restricts the investment of public money

to a limited number of specific low-risk investments

such as government bonds, state and territory bonds,

term deposits and negotiable cash deposits with a

bank.

Figure 5.14 shows the term deposits that the ABA had

with Australian banks on 30 June in 2014 and 2015.

Further details can be found in Part 4, financial

statements.

FIGURE 5.14 ABORIGINALS BENEFIT ACCOUNT INVESTMENT PORTFOLIO AT 30 JUNE 2015

2014$’000

2015$’000

Interest bearing deposits 450,8401 490,840

Total ABA investment portfolio 455,685 490,840

Notes:

1 Interest bearing deposits reported in 2013–14 has been adjusted.


FIGURE 5.15 ABORIGINALS BENEFIT ACCOUNT ADVISORY COMMITTEE MEMBERS, 2014–15

Mrs Patricia Brahim Chairperson

Northern Land Council

Ms Lisa Mumbin Katherine/Beswick

Mr Wayne Wauchope West Arnhem

Mr Djawa Yunupingu East Arnhem

Mr James Sing Darwin/Daly/Wagait

Mr Keith Rory Borroloola/Barkly

Ms Grace Daniels Ngukurr/Numbulwar

Ms Elaine Watts Victoria River District

Central Land Council

Ms Veronica Lynch Alice Springs Region

Mr Conrad Ratarra Tjuwanpa

Mr Harry Nelson Tanami Region

Mr Maurie Ryan North West Region

until September 2014Mr Francis Kelly

Tanami Region from September 2014

Ms Sandra Morrison Tennant Creek Region

Anindilyakwa Land Council

Mr Tony Wurramarrba AO Groote Eylandt

Tiwi Land Council

Mr Andrew Tipungwuti Milikapiti


Appendix B Aboriginal and Torres Strait Islander Land Account Annual Report 2014–15

Aboriginal and Torres Strait Islander Land Account

Role and functions

The Aboriginal and Torres Strait Islander Land

Account (ATSILA) was established by subsection 5(3)

of the Financial Management Legislation Amendment Act 1999, and is continued in existence by s 192W(1)

of the Aboriginal and Torres Strait Islander Act 2005

(ATSI Act). The ATSILA is a Special Account for

the PGPA Act.

ATSILA was established to recognise that many

Indigenous people will be unable to assert native title

rights because they were dispossessed of their lands

and therefore cannot demonstrate the continuous

connection with land necessary to prove native title.

The ATSILA was credited over a 10-year period from

1994 with direct appropriations and became a self-

sustaining capital fund from 30 June 2004. ATSILA

had a balance of $2 billion as at 30 June 2015, full

details of the ATSILA 2014–15 financial statements

is included in Part 4.

The purpose of ATSILA is to make payments to the

Indigenous Land Corporation (ILC), an independent

statutory authority established under the ATSI Act

to assist Aboriginal and Torres Strait Islander people

to acquire and manage land.

Operating environment

Since 2010, the ATSI Act requires that a minimum

annual payment of $45 million be made to the ILC,

indexed in each subsequent year according to the

Consumer Price Index. The minimum payment will

be made in all years, even if the amount paid would

reduce the real capital value of ATSILA. This is to

ensure a certain and regular funding stream for the

ILC to allow it to carry out its legislated functions.

In addition to the minimum amount, the ATSI Act

allows for the payment of additional amounts to the

ILC from ATSILA in years where the actual balance

of ATSILA is greater than that required to maintain

its real capital value.

Figure 5.16 details the payments made to the ILC

since the amendments were made to the ATSI Act

in 2010.


FIGURE 5�16 SUMMARY OF PAYMENTS TO ILC, 2010–11 TO 2014–15

Year Annual payment$’000

Additional payment$’000

Total payment$’000

2010–11 45,000 45,000

2011–12 46,395 4,939 51,334

2012–13 47,462 18,440 65,902

2013–14 48,553 3,910 52,463

2014–15 49,865 - 49,865

Investments of the Land Account

For the financial year 2014–15, investment activities

were undertaken by departmental off icials in

accordance with section 58 of the PGPA Act as

required by s 192W(3) of the ATSI Act and in

compliance with an Investment Policy agreed between

ATSILA’s Consultative Forum and the Department’s

Chief Financial Officer, who is the Finance Minister’s

Delegate for the purposes of the PGPA Act.

The investment objectives are to achieve a return on

the investments, which will preserve the capital value

of the fund in real terms and cover the annual payment

to the ILC. This equates to a return of at least the

CPI +2.6 per cent per annum.

Allowable investments under section 58 of the

PGPA Act include conservative low-risk investments

such as government bonds, semi government bonds

(state or territory) and term deposits with a bank.

The ATSILA’s investments are comprised of term

deposits with Australian banks as at 30 June 2015.

Figure 5.17 provides the return on investments for

the 2012–13 year onwards.

FIGURE 5�17 RETURN ON INVESTMENTS

Year Revenue$’000

Return on investments per cent

2012–13 95,685 5.05

2013–14 79,382 4.11

2014–15 69,834 3.57

Consultative Forum

The ATSI Act requires the establishment of a

consultative forum on investment policy of the

ATSILA to meet at least twice each financial year

(section 193G). The ATSILA’s Consultative Forum

comprises the Department’s Chief Financial Officer

and two ILC Directors elected by the ILC Board.

The purpose of the Consultative Forum is to discuss

the investment policy of the Land Account. Four

meetings of the Consultative Forum were held in

2014–15, the first on 8 August 2014, the second on

24 October 2014, the third on 16 December 2014 and

the fourth on 11 June 2015.


Appendix C Office of the Registrar of Indigenous Corporations Annual Report 2014–15

Registrar of Indigenous Corporations

The Registrar of Indigenous Corporations is an

independent statutory office holder who administers

the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). The Registrar’s role is to

register and regulate Aboriginal and Torres Strait

Islander corporations registered under the CATSI

Act and provide services that address the specific

needs of corporations.

Reporting compliance for Aboriginal and Torres

Strait Islander corporations has increased from

24 per cent in 2001–02 to 97 per cent in 2014–15,

including 100 per cent of registered native title

bodies corporate (native title bodies). This financial

year has seen the highest number of corporations

ever lodging their reports—2,335 corporations

of the 2,400 registered corporations that were

required to report to the Registrar. The high level of

reporting compliance ensures accurate and reliable

information is available in the public Register of

Aboriginal and Torres Strait Islander Corporations

maintained by the Registrar and available at

www.oric.gov.au.

In the 2014–15 financial year the Registrar undertook

formal examinations of the governance standards

and finances of 59 corporations. Examinations

help to identify issues at an early stage before they

have serious consequences for a corporation. The

Registrar appointed special administrators to seven

corporations during the year.

Corporate governance training was provided to 886

people from 169 Aboriginal and Torres Strait Islander

corporations. In recent years there has been strong

growth in the number of native title bodies registered

under the CATSI Act and in 2014–15 the Registrar

developed and trialled a new corporate governance

training workshop designed specifically for native

title corporations. There were 79 people from native

title bodies who participated in various training

courses and workshops.

The Registrar provided a range of products to support

good governance within Aboriginal and Torres Strait

Islander corporations. These included fact sheets,

information guides, policy statements and other

resources that present plain English information on

the CATSI Act and how to run corporations.

The work and activities of the Registrar are supported

by a network of senior officers located in key regions

with large concentrations of Aboriginal and Torres

Strait Islander corporations—Darwin, Alice Springs,

Coffs Harbour, Broome, Perth and Cairns.

The Registrar’s pro bono legal service, LawHelp, saw

a 116 per cent increase in the number of Aboriginal

and Torres Strait Islander corporations seeking

assistance. LawHelp is a service started in 2010 by

the Registrar and some of Australia’s leading law

firms to provide free legal assistance to corporations

needing high quality legal advice in a range of areas.

Enforcing the CATSI Act and taking action to

address wrongdoing remained a priority for the

Registrar in 2014–15. In the period the Registrar

concluded 16 minor regulatory prosecutions against

corporations that failed to meet their reporting

obligations, two major civil actions, one minor civil

action and one major criminal prosecution.


Appendix D Supporting the National Australia Day Council

The National Australia Day Council (NADC) is

a Commonwealth owned, not-for-profit company

within the Prime Minister’s portfolio, subject to

the reporting and accountability requirements in

Chapter 3 of the PGPA Act that commenced on

1 July 2014 and a company limited by guarantee

under the Corporations Act 2001. NADC promotes the

meaning of, and participation in, Australia Day and

the Australian of the Year Awards. More information

about NADC can be found on the National Australia

Day Council website (www.australiaday.org.au).

In 2014–15 the Government provided $3.4 million

to NADC, administered through the Department.

NADC performed effectively during the year and

provided acceptable financial, audit and progress

reports on its funded activities within the timeframes

stipulated in the grant funding provisions.

PART 6Glossary and indexes

Compliance index �� 220

Index of figures �� 224

List of abbreviations �� 226

Glossary of key terms �� 228

Alphabetical index �� 230

220 Part 6: Glossaries and indexes

Compliance index

As per the Requirements for departmental annual reports, below is the compliance index providing a response

and page reference for the location of each item.

FIGURE 6�1 COMPLIANCE INDEX

Description Requirement Location page no�

Letter of transmittal Mandatory iii

Table of contents Mandatory viii–ix

Index Mandatory 230

Glossary Mandatory 228–229

Contact officer(s) Mandatory ii

Internet home page address and Internet address for report Mandatory ii

Review by departmental secretary Mandatory v–vii

Summary of significant issues and developments Suggested v–vii

Overview of department’s performance and financial results Suggested v–vii,

7–38,

57–63

Outlook for following year Suggested vii

Significant issues and developments – portfolio Portfolio

departments –

suggested

v–vii

Role and functions Mandatory 1–3

Organisational structure Mandatory 4–5

Outcome and programme structure Mandatory 6

Where outcome and programme structures differ from PBS/PAES

or other portfolio statements accompanying any other additional

appropriation bills (other portfolio statements), details of variation

and reasons for change

Mandatory Not

Applicable

Portfolio structure Portfolio

departments -

mandatory

1–2

Review of performance during the year in relation to programmes

and contribution to outcomes

Mandatory 8–38

Actual performance in relation to deliverables and KPIs set out in

PBS/PAES or other portfolio statements

Mandatory 8–38

221Part 6: Glossaries and indexes



Where performance targets differ from the PBS/PAES, details of both

former and new targets, and reasons for the change

Mandatory 8–38

Narrative discussion and analysis of performance Mandatory 8–38

Trend information Mandatory 8–38

Significant changes in nature of principal functions/services Suggested 1–3

Performance of purchaser/provider arrangements If applicable,

suggested

Not

Applicable

Factors, events or trends influencing departmental performance Suggested v–38

Contribution of risk management in achieving objectives Suggested 41

Performance against service charter customer service standards,

complaints data, and the department’s response to complaints

If applicable,

mandatory

41

Discussion and analysis of the department’s financial performance Mandatory 57–63

Discussion of any significant changes in financial results from the

prior year, from budget or anticipated to have a significant impact on

future operations.

Mandatory 57–63

Agency resource statement and summary resource tables by outcomes Mandatory 59–63

Agency heads are required to certify their agency’s actions in dealing

with fraud

Mandatory iii

Statement of the main corporate governance practices in place Mandatory 40–42

Names of the senior executive and their responsibilities Suggested 4–5

Senior management committees and their roles Suggested 40–41

Corporate and operational plans and associated performance reporting

and review

Suggested 40

Internal audit arrangements, including approach adopted to identifying

areas of significant financial or operational risk and arrangements to

manage those risks

Suggested 41–42

Policy and practices on the establishment and maintenance of

appropriate ethical standards

Suggested 41

How nature and amount of remuneration for SES officers is determined Suggested 48–50




Significant developments in external scrutiny Mandatory 42

Judicial decisions and decisions of administrative tribunals and by

the Australian Information Commissioner

Mandatory 42

Reports by the Auditor-General, a Parliamentary Committee, the

Commonwealth Ombudsman or an agency capability review

Mandatory 42

Assessment of effectiveness in managing and developing human

resources to achieve departmental objectives

Mandatory 43–50

Workforce planning, staff retention and turnover Suggested 43–50

Impact and features of enterprise or collective agreements, individual

flexibility arrangements (IFAs), determinations, common law contracts

and Australian Workplace Agreements (AWAs)

Suggested 48–50

Training and development undertaken and its impact Suggested 45–47

WHS performance Suggested 47–48

Productivity gains Suggested 50

Statistics on staffing Mandatory 43–50

Statistics on employees who identify as Indigenous Mandatory 44

Enterprise or collective agreements, IFAs, determinations, common

law contracts and AWAs

Mandatory 48–49

Performance pay Mandatory 46

Assessment of effectiveness of assets management If applicable,

mandatory

203–216

Assessment of purchasing against core policies and principles Mandatory 51

A summary statement detailing the number of new consultancy services

contracts let during the year; the total actual expenditure on all new

consultancy contracts let during the year (inclusive of GST); the number

of ongoing consultancy contracts that were active in the reporting

year; and the total actual expenditure in the reporting year on the

ongoing consultancy contracts (inclusive of GST). The annual report

must include a statement noting that information on contracts and

consultancies is available through the AusTender website.

Mandatory 52

Absence of provisions in contracts allowing access by the Auditor-

General

Mandatory 51

Contracts exempted from publication in AusTender Mandatory 51

Procurement initiatives to support small business. Mandatory 51

Financial statements Mandatory 64–201




WHS (Schedule 2, Part 4 of the WHS Act) Mandatory 47–48

Advertising and Market Research (Section 311A of the Commonwealth

Electoral Act 1918) and statement on advertising campaigns

Mandatory 52

Ecologically sustainable development and environmental performance

(Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)

Mandatory 53–55

Compliance with the agency’s obligations under the Carer Recognition Act 2010

If applicable,

mandatory

Not

Applicable

Grant programmes Mandatory 53

Disability reporting – explicit and transparent reference to agency level

information available through other reporting mechanisms

Mandatory 47

Information Publication Scheme statement Mandatory 42

Correction of material errors in previous annual report If applicable,

mandatory

Not

Applicable

Agency Resource Statements and Resources for Outcomes Mandatory 59–63

List of Requirements Mandatory 220


Index of figures

FIGURE 6�2 LIST OF FIGURES

Figures Description Page

Figure 1.1 Departmental structure as at 30 June 2015 4

Figure 1.2 PM&C’s outcome and programme framework 6

Figure 2.1 Programme 1.1 KPIs 9






Figure 3.1 Departmental committees 40

Figure 3.2 Staff distribution figures (based on head count) 43

Figure 3.3 Workforce profile (based on headcount) 44

Figure 3.4 Summary of notifiable incidents, investigations and notices under the

WHS Act, 1 July 2014 to 30 June 2015

48

Figure 3.5 Trends in employment agreements 49

Figure 3.6 Trends in base salary 50

Figure 3.7 Trends in consultancies 52

Figure 3.8 Media advertising 53

Figure 3.9 Environmental performance report 55

Figure 5.1 Major functions of the Aboriginals Benefit Account 203

Figure 5.2 Summary of Aboriginals Benefit Account income, 2013–14 and 2014–15 205

Figure 5.3 Summary of Aboriginals Benefit Account expenditure (inclusive of mining

withholding tax), 2013–14 and 2014–15

205

Figure 5.4 Aboriginals Benefit Account activity reporting framework 207

Figure 5.5 Royalty equivalent receipts, 2013–14 and 2014–15 208

Figure 5.6 Section 63 royalty equivalent receipts transferred to the Aboriginals

Benefit Account, 2007–08 to 2014–15

208

Figure 5.7 Subsection 64(1) payments (net of mining withholding tax) to land councils

for administrative costs 2013–14 and 2014–15

209

Figure 5.8 Subsection 64(3) payments (net of mining withholding tax) to land councils

for distribution to royalty associations, 2013–14 and 2014–15

210

Figure 5.9 Subsection 64(4) expenditure – beneficial payments (net of mining

withholding tax), 2013–14 and 2014–15

210


FIGURE 6�2 LIST OF FIGURES

Figures Description Page

Figure 5.10 Departmental administration, subsections 64(6) and 64(4A) expenditure

(exclusive of GST), 2013–14 and 2014–15

211

Figure 5.11 Consultancy services (GST inclusive), 2013–14 and 2014–15 211

Figure 5.12 Mining withholding tax, 2013–14 and 2014–15 212

Figure 5.13 Total equity at 30 June 2015 212

Figure 5.14 Aboriginals Benefit Account investment portfolio at 30 June 2015 213

Figure 5.15 Aboriginals Benefit Account Advisory Committee members, 2014–15 214

Figure 5.16 Summary of payments to ILC, 2010–11 to 2014–15 216

Figure 5.17 Return on investments 216


List of abbreviations

FIGURE 6.3 ABBREVIATIONS

Abbrev Full title

AACAP Army Aboriginal Community Assistance Programme

ABA Aboriginal Benefit Account

ABS Australian Bureau of Statistics

AE Additional Estimates

ANZAC Australia and New Zealand Army Corps

APEC Asia–Pacific Economic Cooperation forum

APS Australian Public Service

ATSI Act Aboriginal and Torres Strait Islander Act 2005

ATSILA Aboriginal and Torres Strait Islander Land Account

BE Budget Estimates

CATSI Act Corporations (Aboriginal and Torres Strait Islander) Act 2006

CDEP Commonwealth Development and Employment Programme

CGRG Commonwealth Grant Rules and Guidelines

COAG Council of Australian Governments

CPRs Commonwealth Procurement Rules

EAS East Asia Summit

EMS Environmental Management System

EPBC Act Environmental Protection and Biodiversity Conservation Act 1999

EPI Employment Parity Initiative

FOI Freedom of information

G20 Group of Twenty

GDP Gross Domestic Product

GoG Guest of Government

HR Human Resources

IAS Indigenous Advancement Strategy

ILC Indigenous Land Council

ISO International standard

KPI Key performance Indicator

MP Member of Parliament

MWT Mining Witholding Tax

NADC National Australia Day Council


FIGURE 6.3 ABBREVIATIONS

Abbrev Full title

NAIDOC National Aboriginal and Islander Day Observance Committee

NAPLAN National Assessment Program – Literacy and Numeracy

NPARIH National Partnership Agreement on Remote Indigenous Housing

NSC National Security Committee

OECD Organisation for Economic Co-operation and Development

PAES Portfolio Additional Estimates Statements

PAYG Pay-as-you-go

PBS Portfolio Budget Statement

PGPA Act Public Governance, Performance and Accountability Act 2013

PM&C Department of Prime Minister and Cabinet

QoN Question on Notice

RIS Regulation Impact Statements

RJCP Remote Jobs and Communities Programme

RPF Regulator Performance Framework

RSAS Remote School Attendance Strategy

SBE Supplementary Budget Estimates

TIS Translating and Interpreting Service

UAE United Arab Emirates

UK United Kingdom

VTEC Vocational Training and Employment Centres

WHSMS Work Health and Safety Management System

WHS Act Work Health and Safety Act 2011

WHS Work Health and Safety


Glossary of key terms

Administrative Arrangements Order: an order,

issued from time to time by the Governor-General

on advice from the Prime Minister, which establishes

the matters or outcomes to be dealt with by each

Department of State and the Acts to be administered

by each Minister.

Agency: a Department of State, Department of

Parliament and prescribed agency under Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Budget: the Australian Government Budget sets out

the fiscal and economic outlook for Australia, and

includes expenditure and revenue estimates for the

current financial year, the Budget year and the three

forward financial years.

Closing the Gap: a commitment by all Australian

governments to improve the lives of Aboriginal and

Torres Strait Islander people, and in particular

provide a better future for Indigenous children. A

national integrated Closing the Gap strategy has

been agreed through COAG.

Commonwealth Procurement Rules (CPRs):

establish the core procurement policy framework

and articulate the Government’s expectations for

all agencies subject to the Financial Management and Accountability Act 1997 and their officials, when

performing duties in relation to procurement.

Council of Australian Governments (COAG): the peak

intergovernmental forum in Australia, comprising

the Prime Minister, state premiers, territory chief

ministers and the President of the Australian Local

Government Association.

Enterprise agreement (EA): an agreement about the

terms and conditions of employment, made under the

Fair Work Act 2009, pertaining to the relationship

between the employee and employer.

G20: the Group of Twenty (G20) is the premier forum

for international economic cooperation. The G20 is a

group of 19 countries and the European Union. G20

Leaders meet annually and Finance Ministers and

Central Bank Governors meet regularly to address

global economic and financial challenges.

Key performance indicators (KPIs): used to assess

and monitor the Department’s performance and to

provide a record of our progress towards supporting

the Government to meet its policy objectives, how

public money was spent and whether planned

achievements were on track.

Machinery of government (MOG) changes:

organisational or functional changes affecting

the Commonwealth. Common examples of MOG

changes include changes to the Administrative

Arrangements Order following a Prime Ministerial

decision to abolish or create a department or to move

functions/responsibilities between departments or

agencies and the creation of new statutory agencies

or executive agencies, or abolition of such agencies.

NAIDOC Week: celebrations held across Australia

each July to celebrate the history, culture and

achievements of Aboriginal and Torres Strait

Islander peoples.

NAPLAN: the National Assessment Program –

Literacy and Numeracy is an annual assessment

for students in Years 3, 5, 7 and 9.


Non-ongoing employee: an Australian Public Service

employee who is employed for a specific term or task,

or for duties that are irregular or intermittent as

per paragraph 22(2)(a) of the Public Service Act 1999.

Organisation for Economic Cooperation and

Development (OECD): A forum of 34 member

countries who work with each other to promote

economic growth, prosperity, and sustainable

development.

Portfolio Additional Estimates Statement (PAES):

the statement that informs senators, members

and the public of changes since the Budget to the

proposed allocation of resources to government

outcomes.

Portfolio Budget Statement (PBS): explain the

provisions of the Appropriation Bills (Budget Bills)

– that is, where appropriated funds are to be spent

for the portfolio.

Secretary’s Instructions: instructions and guidance

provided for accountability requirements under the

PGPA Act.

Vocational Training and Employment Centres

(VTECs): Centres that connect Indigenous job

seekers to guaranteed jobs after delivery of

vocational training.


Alphabetical index

AABA Stores Infrastructure Project, 38

abbreviations, 226–227

Aboriginal and Torres Strait Islander employees,

vi, 43, 44

Aboriginal and Torres Strait Islander

Employment Strategy, departmental, 47; see also employment policy, Indigenous

Aboriginal and Torres Strait Islander Healing

Foundation, 33, 35

Aboriginal and Torres Strait Islander Health

Performance Framework report, 32

Aboriginal and Torres Strait Islander Land

Account, 58

Annual Report 2014–15, 215–216

financial statements, 180–201

Aboriginal and Torres Strait Islander Peoples

Act of Recognition Review Panel Final

Report, 33; see also constitutional recognition

of Indigenous Australians

Aboriginal and Torres Strait Islander Recognition Act 2013, 33, 34

Aboriginal Controlled Health Organisations, 32

Aboriginal Hostels Limited, 1

Aboriginal Land Commissioner, 1

Aboriginals Benefit Account, 36, 38, 58

Annual Report 2014–15, 203–214

financial statements, 149–179

accidents and incidents, 48

accountability and management, 40–55

administered activities, financial

performance, 58; see also financial statements;

resourcing statement

Administration of the Early Years Quality Fund,

ANAO performance audit, 42

Administrative Arrangements Order, 11, 57;

see also machinery of government changes

advertising and market research, 52–53

age of staff, 44; see also staff statistics

Agricultural Competitiveness White Paper, vi, 8, 12

agriculture policy; see Agricultural

Competitiveness White Paper

alcohol and drug abuse, reduction efforts, 32

Anangu Pitjantjatjara Yankunytjatjara Lands,

service provision, 36

Anindilyakwa Land Council, 1

annual report requirements, iv

Annual Report 2013–14, corrections to, 15

Annual Statement to Parliament on

Infrastructure, 10

anthem, national, 12

Anti-Corruption Action Plan, 18

ANZAC centenary commemorations, v, 10, 16

APEC leaders’ meeting, 10

Army Aboriginal Community Assistance

Programme, 37

Arnhem Land, relocation of government to, v, 22–23

Asian Infrastructure Investment Bank, 11

Asia–Pacific Economic Cooperation (APEC)

leaders’ meeting, 10

assets, administered, 58; see also financial

statements; resourcing statement

asylum seeker policy; see border security

matters

attendance rates, school, iv, 27, 29

Attorney-General’s Department Enterprise

Agreement 2011, 48

audit

external, 42; see also Australian National

Audit Office (ANAO)

internal, 40; see also risk management

Audit Committee, 41

Auditor-General, 11; see also Australian National

Audit Office (ANAO)

AusTender, 51

Australia–India Civil Nuclear Cooperation

Agreement, 10

Australia and New Zealand School of Government, 45

Australia Day Awards, 16


Australian Bravery Decorations Council, 12

Australian Defence Force, v, 11

Australian Government Branding Design

Guidelines, 12

Australian Government Crisis Committee, 13

Australian honours and symbols, 3, 12

Australian Institute of Company Directors, 45

Australian National Action Plan on Women, Peace and Security 2012–18, 19

Australian National Anthem, 12

Australian National Audit Office (ANAO), 1, 42

access clause, 51

independent auditor’s report

Aboriginal and Torres Strait Islander

Land Account, 181–182

Aboriginals Benefit Account, 150–151

Department of Prime Minister and

Cabinet, 57, 64–65

Australian National Flag, 12

Australian National University National

Security College, 45

Australian Public Service Code of Conduct, 41

Australian Public Service Commission, 1, 45

Australian Public Service Indigenous Pathways

Graduate Programme, 47

Australian Public Service Indigenous

Traineeship Programme, 47

Australian Public Service Values, 41

Australian Women Against Violence Alliance,

funding for, 19

BBase Erosion and Profit Shifting Action Plan, 18

bilateral relationships, vii, 8, 10, 15, 16; see also

Free Trade Agreements

border security matters, 3, 11

branding design guidelines, 12

briefs, ministerial, 14

Budget processes, support for, vii, 2, 9, 14

Building Management Committee, 54

bushfire assistance, 13; see also disaster recovery,

community

Business 20, 18

Business Advisory Council, 10

CCabinet, support services to, 3, 8, 9, 14

Cabinet Handbook, 14

capability development, staff; see staff

development and training

Cape York Welfare Reform initiative, 33

Career Advisory Service, 46

centenary of ANZAC, commemorations, v, 10, 16

Central Advertising System, 52

Central Land Council, 1

Centre for Public Management, 45

ceremonial and hospitality support, vi, 16

Chief Financial Officer’s financial statements,

66, 152, 183

child care and early learning programmes, 10, 27, 29

Childcare and Early Childhood Learning,

Productivity Commission reports, 10

Children and Schooling Programme, 22, 27–29

China

bilateral relationship, 10

Free Trade Agreement with, 8, 11

Guest of Government visit, vi, 8, 16

Prime Ministerial visit to, 16

China–Australia Free Trade Agreement, 11

Civil Society 20, 18

classifications, staff, 44

Climate Change Taskforce, 10

Closing the Gap: Prime Minister’s Report 2015, 23

COAG; see Council of Australian Governments

(COAG)

Coat of Arms, Commonwealth, 12

Code of Conduct (APS), 41

commemorative events, 16

committees, departmental, 40–41

Commonwealth Coat of Arms, 12

Commonwealth companies and authorities, 1

Commonwealth Counter Terrorism Coordinator, vi

Commonwealth Electoral Act 1918, 52

Commonwealth Grants Rules and Guidelines, 53


Commonwealth Ombudsman, 1Commonwealth Procurement Rules 2014, 51Commonwealth Science Council, 8, 10Community Business Partnerships, 15Community Development Programme, vii, 26Community Engagement Police Officers, 32Community Pharmacy Agreement, 10complaints management, 41compliance index, 220–223Comprehensive Strategic Partnerships, 10conservation measures, departmental, 53–55constitutional recognition of Indigenous

Australians, vii, 22, 33, 34, 35Constitutional Recognition Taskforce, 34;

see also constitutional recognition of Indigenous Australians

consultants, 52contacts, departmental, iicontracts, 52corporate Commonwealth entities, 1corporate governance, 40–42corrections to 2013–14 Annual Report, 15correspondence, ministerial, 14Council for the Order of Australia, 12Council of Australian Governments (COAG), 2, 8,

13, 14, 16, 21, 27counselling services, provision of, 32counsellor positions, funding for, 32counter-terrorism matters, vi, vii, 3, 13Cranlana Programme, 45culturally and linguistically diverse staff, 44Culture and Capability Programme, 22, 32–36Cutting Red Tape website, 21; see also red tape

reduction measurescyber security, vii, 11, 13Cyber Security Review, vii, 11Cyclone Lam, 13Cyclone Nathan, 13

DDefence Force Remuneration Tribunal, 1

Defence Force Structure Review, 11

defence policy, vii, 11

Defence White Paper, vii, 11

delegations, visiting, 16

deliverables

Outcome 1: Prime Minister and Cabinet, 8, 9,

12, 14, 16, 17, 19, 20

Outcome 2: Indigenous, 25, 29, 32, 34, 35, 36,

37, 38

see also key performance indicators

Department of Agriculture, 10

Department of Broadband, Communications and

the Digital Economy Enterprise Agreement

2011–14, 48

Department of Education, Employment and

Workplace Relations Enterprise Agreement

2012–14, 49

Department of Families, Housing, Community

Services and Indigenous Affairs Enterprise

Agreement 2012–14, 49

Department of Finance and Deregulation

Enterprise Agreement 2011–14, 49

Department of Foreign Affairs and Trade, 10

Department of Health and Ageing Enterprise


Department of Industry and Science, 10

Department of Regional Australia, Regional

Development and Local Government Enterprise

Agreement 2011, 49

Department of Social Services, 10, 14

Department of Sustainability, Environment,

Water, Population and Communities Enterprise


Department of the Environment, 10

departmental activities, financial performance,

57; see also financial statements; resourcing

statement

departmental structure, 2–5

deregulation policy, vii, 8, 15, 20–21, 57; see also red tape reduction measures; regulatory

reforms, business

Developing Northern Australia White Paper,

vi, 8, 12

development and training, staff, 42, 45–46

Digital Transformation Agenda, 10


Disability Action Plan, departmental, 47

disability insurance; see National Disability

Insurance Scheme (NDIS)

disaster recovery, community, 10, 13

diversity, workplace, vi, vii, 47

Domestic Policy Group, 2

domestic violence prevention initiatives, vi, 19, 32

drug and alcohol abuse, reduction efforts, 32

Ee-Learning package, 42Early Years Quality Fund, ANAO performance

audit, 42Early Years Quality Fund Special Account Act 2013, 42East Asia Summit, 10Ebola Regional Contingency Planning Taskforce, 10Ebola Virus, interagency collaboration on, vi, 10ecologically sustainable development and

environmental performance report, 53–55economic diplomacy, 10; see also Free Trade

Agreementseducation programmes, Indigenous, 22, 27–29Education Strategy, Indigenous, 27emission reduction target, 10employee statistics, 44–45Employment Parity Initiative, 24, 26employment policy, Indigenous, vi, 22, 23–27employment services arrangements, new, vii, 24Empowered Communities design process, 33energy conservation measures, 54, 55enterprise agreements, 46, 48–49entry level employment programmes, 46Environment Protection and Biodiversity

Conservation Act 1999, 53Environmental Management System, 55environmental performance, departmental, 53–55environmental policy, vi, viiEnvironmental Policy Statement, departmental, 54ethical standards, 41Ethics Advisory Service, 41Ethics Contact Officer Network, 41events coordination; see ceremonial and

hospitality support

Executive Director Township Leasing, 1Executive Leadership Group, 41exempt contracts, 51expenses, 58, 61–63; see also financial statements;

resourcing statementexternal scrutiny, 42; see also Australian National

Audit Office (ANAO)

FFamilies Package reforms, 10Federal Executive Council, 14female staff, 43, 44figures, list of, 224–225financial performance summary, 57–63; see also

financial statements; resourcing statementfinancial statements

Aboriginal and Torres Strait Islander Land Account, 180–201

Aboriginals Benefit Account, 149–179Department of the Prime Minister and

Cabinet, 64–148First Pass process, policy considerations, 14First Principles Review, 11fiscal policy, 9–10flag, national, 12Food Security in Remote Indigenous

Communities, ANAO performance audit, 42foreign aid, 3foreign policy, 3, 10; see also international policyForrest Review, 27France, Guest of Government visit, vi, 8, 16fraud control, 41–42Free Trade Agreements, 8, 11Freedom of Information Act 1982, 14, 42Freedom of Information requests, 15full time staff, 43; see also staff statisticsFunerals, State, 16

GG20 Leaders’ Summit, v, 2, 3, 8, 10, 17–19G20 Presidency, v, 17, 18Gallipoli, 10

Prime Ministerial visit to, v, 16


gender equality priorities; see women’s policy and programmes

Germany, Guest of Government visit, vi, 8, 16glossary of key terms, 228–229Go Green campaign, 54governance arrangements, internal, 40–42government regulations, reducing burden of;

see deregulation policy; red tape reduction measures; regulatory reforms, business

Governor-General, 8Governors-General, former, 17Graduate Programme, vi, 46–47grant programmes, 22, 32, 36, 53Group of Twenty (G20); see G20 Leaders’ Summit;

G20 PresidencyGuest of Government visits, vi, 8, 16

HHeads of Government visits, 16; see also Guest of

Government visits

Heads of State visits, 16; see also Guest of

Government visits

health and safety, staff, 47–48

Health Performance Framework report,

Aboriginal and Torres Strait Islander, 32

Higher Education Data Committee, 22

highlights of 2014–15, v–vii

Programme 1.1: Prime Minister and

Cabinet, 8

Programme 2.1: Indigenous Advancement:

Jobs, Land and Economy, 24


Children and Schooling, 27


Safety and Wellbeing, 31


Culture and Capability, 33


Remote Australia Strategies, 36–37

home insulation program, Royal Commission

into, 12

honours and symbols policy, 3, 12

hospitality services, vi, 16

housing issues, remote areas, 22, 36, 38

human resource management, 43–50

IICT Graduate Programme, 47

income, 58; see also financial statements;


independent auditor’s report; see Australian

National Audit Office (ANAO)

Independent National Security Legislation

Monitor, 1

India, 10

bilateral agreement with, 8



Indigenous Advancement Strategy, vi, 22

Indigenous Advisory Council, 23

Indigenous Affairs Group, 2, 3

performance report, 22–38

Indigenous Australian Government Development

Programme, 47

Indigenous Australians, constitutional

recognition of, 22, 32, 33, 34, 35

Indigenous Business Australia, 1

Indigenous Education Strategy, 27

Indigenous employees, departmental,

vi, 43, 44

Indigenous Land Corporation, 1

Indigenous Mentoring Experience, 29

Indigenous Pathways Graduate Programme, 47

Indigenous policy and programmes, 23–38

transfer of functions, 57

Indigenous Procurement Policy, vi, 24, 26

Indigenous Protected Areas, investment in, 27

Indigenous Traineeship Programme, 47

Indigenous Wage Subsidy, 27

Indigenous Youth Leadership Project, 29

Individual Flexibility Arrangements, 46

Indonesia, Prime Ministerial visit to, 16

Industry, Innovation and Competitiveness

Agenda Report, v–vi, 12

Information Publication Scheme, 42


Infrastructure Australia, 10

infrastructure policy, 10; see also infrastructure

services, remote regions

infrastructure services, remote regions,

36, 37, 38

inhouse training, 45; see also staff development

and training

inoperative staff, 43

interagency collaboration, vi, 3, 10, 47

internal audit, 40; see also risk management

internal governance, 40–42

international policy, vii, 3, 10; see also foreign

policy

international security issues, 8, 10

international tax rules, 18

Iraq, Prime Ministerial visit to, 16

JJapan

Free Trade Agreement with, 8, 11

Head of Government visit, 16

Japan–Australia Economic Partnership

Agreement, 11

job seekers, Indigenous, services for, vii, 22, 23–27

Jobs, Land and Economy Programme, 22, 23–27

Joint Committee of Public Accounts and Audit, iv

Joint Commonwealth and Tasmanian Economic

Council, 10

Joint Select Committee on Constitutional

Recognition of Aboriginal and Torres Strait

Islander Peoples, Final Report, 33, 34

‘Journey to Recognition’ campaign, 35; see also

constitutional recognition of Indigenous

Australians

judicial decisions, 42

Kkey performance indicators

Outcome 1: Prime Minister and Cabinet, 9

Outcome 2: Indigenous, 24–25, 28, 31, 34, 37

Kirribilli House, 17

Korea, Free Trade Agreement with, 8

LLabour 20, 18

land rights, Indigenous; see native title

law enforcement matters, 3

Leaders Summit (G20), v, 2, 3, 8, 10, 17–19

leadership capabilities, staff, 45

learning and development, staff, 42, 45–46

legal policy matters, 3, 12

legislation programme, 11–12

letter of transmittal, iii

liabilities, 58; see also financial statements;


Link Up services, 32

list of figures, 224–225

locations, staff, vi, 44

The Lodge, 17

low aromatic fuel, introduction of, 31, 32

Mmachinery of government changes, 46, 48;

see also Administrative Arrangements Order

Malaysia, Prime Minister’s visit, 16

Malaysia Airlines Flight MH370, 16

Malaysia Airlines Flight MH17 response, 10, 13, 16

male staff; see staff statistics

management and accountability, 40–55

market research and advertising, 52–53

Martin Place Siege, vi, 13, 16

Melbourne Business School, 45

Memorial Services, State, 16

mental health services review, 10

mentoring, staff, 45

mentoring programmes, 29

methamphetamines, interagency collaboration

on, vi

Mid Year Economic and Fiscal Outlook, 9

Minister Assisting the Prime Minister for the

Public Service, v, 2

Minister Assisting the Prime Minister for

Women, v, 2, 15, 19

Minister Assisting the Prime Minister on

Counter-Terrorism, v, vi, 2


Minister for Indigenous Affairs, v, 2

ministerial briefs, 14

ministerial correspondence, 14

ministerial level visits, 16

Ministry, swearing in, 11

Mt Eliza Executive Education, 45

municipal service provision, Indigenous

communities, 36

Myanmar, Prime Ministerial visit to, 16

NNAIDOC activities, 33, 35

National Aboriginal and Islander Observance

Committee (NAIDOC) activities, 33, 35

national anthem, 12

National Australia Day Council, 1, 218

National Australian Built Environment Rating

System, 54

National Compact, transfer of functions, 57

National Crisis Committee, 13

National Disability Insurance Scheme (NDIS), 14

National Disability Strategy 2010–20, 47

National Emergency Medal Committee, 12

national flag, 12

National Ice Action Strategy, vii

National Mental Health Reform Commission, 10

National Partnership Agreement on Northern

Territory Remote Aboriginal Investment, 22, 27

National Partnership Agreement on Stronger

Futures in the Northern Territory, 22, 38

National Partnership Agreements, 22, 27, 36, 38

National Plan to Reduce Violence against Women and their Children 2010–2022, 19

National Security and International Policy

Group, 2, 3

National Security College (ANU), 45

National Security Committee of the Cabinet,

vii, 13

national security considerations, vii, 8, 10, 13, 14;

see also counter-terrorism matters; cyber security

national symbols policy, 12

native title, 23, 25

Native Title Representative Bodies and Service

Providers, funding for, 23, 25

natural disaster recovery assistance, 10, 13

NDIS; see National Disability Insurance Scheme

(NDIS)

Netherlands

Head of Government visit, 16


New South Wales Department of Premier and

Cabinet, vi

New Zealand

Head of State visit, 16


non-corporate Commonwealth entities, 1

non-ongoing staff, 43, 44

non-proliferation issues, 3

north-east Arnhem Land, relocation of

government to, v, 22–23

Northern Australia, development; see White Paper

on Developing Northern Australia

Northern Land Council, 2

Northern Territory, partnership agreements with,

22, 27, 36, 38

Norway, Head of State visit, 16

notifiable incidents, 48

Ooccupational health and safety; see work health

and safety

Office for Women, 15, 19

Office of Best Practice Regulation, 20

Office of Deregulation, 20–21

Office of National Assessments, 1

Office of the Commonwealth Ombudsman, 1

Office of the Inspector-General of Intelligence

and Security, 1

Office of the Official Secretary to the

Governor-General, 1

Office of the Registrar of Indigenous

Corporations Annual Report 2014–15, 217

official hospitality and ceremonial support, iv, 16


official residences, Prime Minister’s, 8, 17

Ombudsman, Commonwealth, 1

on-the-job learning, 45; see also staff development

and training

One Innovation Enterprise Agreement 2011, 49

ongoing staff, 43, 44

online learning resources, organisational, 45

operating result, 57; see also financial statements;


organisational structure, 2–5

out-posted staff, 20

Outcome 1: Prime Minister and Cabinet, 8–21

Outcome 2: Indigenous, 22–38

outcome and programme structure, 6

overseas visits, Prime Ministerial, 8, 10, 16

PPapua New Guinea, Prime Ministerial visit to, 16

parliamentary questions on notice, 14

Parliamentary Secretaries, Portfolio, v, 2

support services for, v, 3, 8, 9, 14–15

part-time staff, 44; see also staff statistics

people management, 43–50

people smuggling, 11; see also border security

matters

People Strategy 2014–16, 45, 46

people with disability

insurance for; see National Disability

Insurance Scheme (NDIS)

staff, 47

performance bonuses, 46

performance frameworks, 46

performance indicators; see key performance

indicators

performance reports

Outcome 1: Prime Minister and Cabinet, 8–21

Outcome 2: Indigenous, 22–38

see also financial statements

petrol sniffing reduction initiatives, 31, 32

Petrol Sniffing Strategy in Remote Indigenous

Communities, ANAO performance audit, 42

philanthropy, relinquishing of responsibility for, 57

police stations, construction of, 31

Portfolio Additional Estimates Statements, iv, 6

Portfolio Budget Statements, iv, 6

Portfolio Ministers, v, 2

support services for, v, 3, 8, 9, 12, 14–15

portfolio structure, 1

Prescribed Bodies Corporate, capacity building,

23, 25

Prime Minister

overseas visits, 8, 10, 16

support for, v, 3, 8, 9–12, 14–15

Prime Minister’s XI cricket match, 16

procurement policy and practices, vi, 51–53; see also Indigenous Procurement Policy

Productivity Commission, 10

productivity gains, 50

Programme 1.1: Prime Minister and Cabinet, 8–21

Programme 2.1: Indigenous Advancement: Jobs,

Land and Economy, 23–27


Children and Schooling, 27–29

Programme 2.3: Indigenous Advancement: Safety

and Wellbeing, 30–32


Culture and Capability, 32–36


Remote Australia Strategies, 36–38

programme and outcome structure, 6

Protected Areas, investment in, 27

Public Governance, Performance and Accountability Act 2013, 52

Public Service Act 1999, 41, 48

Public Service Medal, 12

purchasing policy and practices, 51–53

Qquestions on notice, 14

RRecognise campaign, 35; see also constitutional

recognition of Indigenous Australians

Reconciliation Action Plan, departmental, 47


Reconciliation Australia, 34

recreation centres, Indigenous communities, 32

recruitment, staff, 46–47

recycling measures, 54

red tape reduction measures, 20–21; see also

deregulation policy; regulatory reforms, business

Reform of the Federation White Paper, vi, vii,

12, 14

regional engagement, 13, 20; see also overseas

visits, Prime Ministerial

Registrar of Indigenous Corporations, 1

Annual Report 2014–15, 215

regulation impact statement requirement, 20

Regulator Performance Framework, 20–21

regulatory reforms, business, 20–21; see also

deregulation policy; red tape reduction measures

Rehabilitation Management System, 47

Remote Aboriginal Investment, National

Partnership Agreement on, 22, 27

Remote Australia Strategies Programme, 22, 36–38

Remote Indigenous Housing National

Partnership Agreement, 22, 36, 38

Remote Jobs and Communities Programme,

24, 26

Remote School Attendance Strategy, vi, 29

Repeal Days, 20, 21; see also red tape reduction

measures

Requirements for annual reports for departments, executive agencies and other non-corporate Commonwealth agencies, iv

research and science policy, 8, 10

residences, Prime Minister’s official, 8, 17

resourcing statement, 59–60

revenue; see financial statements; resourcing

statement

Review of Australia’s Counter Terrorism

Machinery, vi

Review of Cyber-Security, vii, 11

Review of Medicines and Medical Devices

Regulation, 10

Review of Mental Health Programmes and

Services, 10

risk management, 41

role, departmental, 2

Royal Commission into the Home Insulation

Program, 12

Ssafety, employee, 47–48Safety and Wellbeing Programme, 22, 30–32salaries, staff, 49–50scholarships, Indigenous students, 29school attendance rates, iv, 27, 29Schooling Implementation Plan revision, 27science and research policy, 8, 10secondments, vii, 45, 46; see also staff

development and trainingsecretariat services, 12, 14, 41Secretaries’ Committee on National Security,

vii, 14Secretary’s financial statements, 66, 152, 183Secretary’s Instructions, 40, 51Secretary’s review of the year, v–viisecurity, national, vii, 8, 10, 13, 14; see also

counter-terrorism matters; cyber securitySenate Estimate questions on notice, 14Senate Order on Departmental and Agency

Contracts, 51senior executive service officer salaries, 50Senior Officials Meetings, 13Serving Country: Centenary & Beyond

(NAIDOC theme), 33, 3570:20:10 learning strategy, 45A Share in the Future (Indigenous Education

Strategy), 27shared services arrangement, 47Singapore

bilateral agreement with, 10Prime Ministerial visit to, 16

small and medium enterprises, procurement from, 51

Social and Wellbeing Counsellor positions, funding for, 32

South Australia, agreement on services to Indigenous communities, 36


speeches, drafting of, 15

Sporting Chance Academies, 29

staff development and training, 42, 45–46

staff statistics, 43–44

state and territory governments, collaboration

with, vii, 3, 13, 22, 36, 37–38; see also Council

of Australian Governments (COAG); National

Partnership Agreements

State Funerals, 16

State Memorial Services, 16

Statement of Financial Position, 57; see also

financial statements; resourcing statement

statutory bodies, 1

Stolen Generations, services for, 32

Strengthening Organisational Governance

policy, 26

Stronger Futures in the Northern Territory

National Partnership Agreement, 22, 38

structure

departmental, 2–5

outcome and programme, 6

study assistance scheme, 46

substance abuse, reduction efforts, 32

Survey of Australian Government Payments to

Small Business, 51

TTasmania, agreement on services to Indigenous

communities, 36

Tasmania, economic development initiatives, 10

territory and state governments, collaboration

with, vii, 3, 13, 22, 36, 37–38; see also Council

of Australian Governments (COAG); National

Partnership Agreements

terrorism; see counter-terrorism matters

Think 20, 18

Tiwi Land Council, 2

Torres Strait Regional Authority, 1

trade policy, 3, 8, 10; see also bilateral

relationships; Free Trade Agreements

Trainees Programme (Indigenous), 47

training, staff; see staff development and training

Trans-Pacific Partnership Agreement, 8

transmittal letter, iii

Treasury, 10

Tropical Cyclone Marcia, disaster recovery, 10

2013–14 Annual Report, corrections to, 15

2014–15 Mid-Year Economic and Fiscal Outlook, 9

2015 Autumn Repeal Day, 21

2015 Closing the Gap Prime Minister’s Report, 23

2015–16 Budget, 9

UUkraine, Head of State visit, 16

United Arab Emirates, Prime Ministerial visit to, 16

United Kingdom



United Nations Commission on the Status of

Women, 19

United Nations Framework Convention on

Climate Change, 10

United States, Prime Ministerial visit to, 16

VValues (APS), 41

Victoria, agreement on services to Indigenous

communities, 36

Vietnam, Head of Government visit, 16

violence against women and children, interagency

collaboration on, vi, 19

visiting dignitaries, 16; see also Guest of

Government visits

Vocational Training and Employment Centres, 26

volunteering sector, relinquishing of

responsibility for, 57

Wwage subsidy, Indigenous, 27

waste management, departmental, 54, 55

water conservation measures, departmental, 54, 55

wellbeing and safety, Indigenous communities,

30–32


Western Australia, agreement on services to

Indigenous communities, 36

White Paper on Agricultural Competitiveness,

vi, 8, 12

White Paper on Defence, vii, 11

White Paper on Developing Northern Australia,

vi, 8, 12

White Paper on Reform of the Federation, vi, vii,

12, 14

white papers, vi, vii, 8, 11, 12, 14

White Ribbon Day, funding for, 19

women staff, 43, 44

Women’s Leadership and Development Strategy, 19

women’s policy and programmes, 15, 19, 57; see also

Office for Women

work health and safety, 47–48

statistics, 48

Work Health and Safety Act 2011, 47

Work Health and Safety Management System, 47

workforce diversity, vi, vii, 43, 47

workforce profile, 43–45

World War I centenary, v, 10, 16

Wreck Bay Aboriginal Community Council, 1

Yyear ahead, vi–vii

Youth 20, 18


242242

Annual Report Team

This report was prepared by the annual report team

with help from staff throughout the Department. The

team for 2014–15 comprised: Sam Skelton, Assistant

Secretary, Governance, Audit and Reporting;

Chris Atkinson, Senior Adviser, Governance, Risk

Management and Assurance; Sue Lewis, Adviser;

Patricia Lee, Adviser.

Concept, design and typesetting

Stripe Design

Photographs

The 2014–15 annual report makes use of a range of

images, including photographs provided for use in

the report by other government agencies. Photo 2.15

was provided by the Central Australian Aboriginal

Media Association.

Part 6: Glossaries and indexes

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Annual Report 2014-15 - Department of the Prime Minister ... · About this report This is the Secretary’s report to the Prime Minister for the financial year ended 30 June 2015